Overview Enterprise Planning - Oracle

Future of Financial Management:Strategic Planning and compliance/Oracle Financial Management Solutions

Agenda

• Overview Enterprise Planning • Solution Overview • Delivering World Class Enterprise Planning

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Overview Enterprise Planning


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Achieve a World Class Enterprise Planning Process Forecast/model strategic possibilities Select strategies

Include operational detail and model variability of financial plan

Update forecast with latest budget and actuals

Set targets

Strategic plan

Annual budget / plan

Seed targets to annual operating plan Start annual process

Include operational details

Evaluate workforce and capital

Monthly / rolling forecast

Evaluate ‘true’ profitability

Evaluate Financial Performance Evaluate resource and capital requirements

Update strategic plan with latest forecast

Assess and Manage Risk


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Disconnected Processes Lead to Inefficiency and Missed Targets • Time – cycles take too long, missed opportunities and obsolete plans

Long-Term Planning

Treasury Plans

• Quality – data integrity, lack of standardization and communication

M&A

Senior Management

• Flexibility – lack of responsiveness to changes • Cost – many wasted resources, questionable benefits

Annual Plan & Forecast Headcount Plans

FP&A

Departmental Plans


Revenue & Cost Models

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Solution Overview


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Oracle EPM Connects Management Processes

Common Reporting & Interaction

Strategic Planning

Planning & Forecasting

Financial Close

Profitability Management

Common Integration & Analysis Data Quality and Consistent Dimensions


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Critical Components to Implement Planning Best Practices

Predictive Modeling & Simulation Functional Plans

Long-Term Financial Planning

Workforce Planning

Capital Assets Planning

Project Planning Marketing Planning

Operational Revenue & Cost Modeling

Planning, Budgeting & Forecasting

Financial Detail


Operational Detail

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Key Capabilities Accelerate the Enterprise Planning Process • • • • •

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Centralized system Align top-down and bottom-up Consistent assumptions Common allocations & calculations Integrated Operational Planning to address in-depth revenue and margin planning Purpose-built Capital Assets and Workforce planning modules for fast deployment Powerful workflow and process management for budgeting and forecasting Leverages Essbase – powerful reporting and analysis


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Forward-looking Analytic Engine Fast and Simple with Essbase Powerful Calculator • • • •

Hundreds of built in functions and algorithms Trending Goal seeking Procedural calculations

Financial Intelligence • Critical for Variance Analysis, understands better / (worse) • Essbase understands Financial Data and Calculations • Time Balances

Time Intelligence • Time Series calculations are hard to do • Yet, an extremely common BI requirement • Essbase makes it very easy at any level, any dimension, for any type of calendar


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Delivering a World Class Enterprise Planning Process


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Best Practices For a World Class Enterprise Planning Process

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Measure financial impact of business strategies

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Evaluate impact on workforce and capital assets

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Adjust the forecast continuously

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Manage risk and uncertainty


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Measure the financial impact of key business strategies

Evaluate strategic projects and initiatives Simulate effects of M&A Optimize capital structure Review impact on financing strategies Set annual targets


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Long-term Planning, Corporate Development and Treasury in a Single Model • Integrated financial statements • Project shareholder value • Run unlimited scenarios • Consolidate multiple business combinations • Evaluate strategic projects • Simulate effects of M&A • Debt Scheduling • Optimize capital structure


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Investment Analysis Tools • Pre-built valuation logic (NPV, IRR, etc.) • Purchase accounting for acquisitions • Goal-Seek • Movable Deal Period • Include/Exclude option • Fiscal year-end conversion • Divestiture logic


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Treasury Toolkit • Calculates net cash surplus or deficit from multiple models and scenarios • Funding Options tool to re-allocate surpluses and fund deficits • Debt scheduler • User-defined reports to monitor covenants, credit ratings, and earnings per share


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• Validate key financial drivers based on operational details • Accountability from operations and finance • Continuous validation throughout the planning and forecasting cycles


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Evaluate the resource impact on workforce and capital assets

• Incorporate the appropriate level of detail in the enterprise planning process • Ensure you have the right amount of workforce staffed • Ensure you allocate the right amount of capital required


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Assess Resource and Capital Assets Requirements

Financial Plan

Workforce Plan

Capital Plan

Detailed Headcount, Staff Expenses, Salary & Compensation

Detailed Depreciation, Asset Purchase/Sell, Asset Expenses


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Hyperion Capital Expense Planning Improve Planning the Acquisition, Lifecycle Management, and Retirement of Capital Assets

• Packaged solution • Customizable • Plan for asset purchases and asset related expenses • Transfer, retire, and improve assets • Directly linked to main plan • Interfaces with external systems


Hyperion Workforce Planning Improve Headcount, Salary and Compensation Planning • Packaged solution for quick implementations • Plan salary and other compensation at any level • Add, edit and delete employees and new hires • Pre-defined or custom calculations for taxes, etc. • Integrates actuals from HR systems • Test scenarios in real-time for impact analysis


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• Adjust the forecast continuously by incorporating a monthly or rolling forecasting process • Incorporate ‘event based’ planning in order to react to change in economic and environmental changes • Apply best practices and a world class process in order to respond timely


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Updated Forecasts Based on Current Conditions • Continuous forecasts (rolling, event based) • Manage budget process and workflow with validations • Top-down and bottom-up • P&L, B/S and C/F • Business Unit, Department and Cost Center level • Revenue and cost allocations • Driver-based planning • Workforce planning • Capital asset planning


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Manage risk and uncertainty in your plans

• Move from ‘conventional’ to ‘advanced’ scenario modeling • Review full range of outcomes • Quantify the risk of not achieving your goals • Know the probability of outcomes • Understand key factors impacting your business


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Quantify Risk and Uncertainty

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Conventional

Advanced

Single Point Scenarios

Thinking in Ranges

Only 3 possible outcomes Limited view of risk What are most important risk factors? What are the odds I’ll miss the target? Which outcome is most likely?


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Full range of outcomes Illustrate probability of outcomes Immediate visibility into inherent risk True risk analysis for financial models

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Best Practices For a World Class Enterprise Planning Process

1

Measure financial impact of business strategies

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3

Evaluate impact on workforce and capital assets

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5

Manage risk and uncertainty


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Critical Components to Implement Planning Best Practices

Predictive Modeling & Simulation Functional Plans

Long-Term Financial Planning

Workforce Planning

Capital Assets Planning

Project Planning Marketing Planning

Operational Revenue & Cost Modeling

Planning, Budgeting & Forecasting

Financial Detail


Operational Detail

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Improved Accuracy, Flexibility and Costs

• Increase planning and forecasting accuracy

Senior Management

• Flexibility to respond to market changes timely FP&A

• Reduce costs by allocating resources to the most important opportunities Long-Term Planning


Annual Plan Revenue & & Forecast Cost Models

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Most Complete Suite of Operational BI Applications Auto

Comms & Media

Complex Consumer Sector Mfg

Sales

Service & Contact Center

Pipeline Analysis

Energy

Financial Services

High Tech

Insurance Life & Health Sciences

Public Sector

Travel & Trans

Marketing

Order Management & Fulfillment

Supply Chain

Financials

Human Resources

Churn Propensity

Campaign Scorecard

Order Linearity

Supplier Performance

A/R & A/P Analysis

Employee Productivity

Triangulated Forecasting

Customer Satisfaction

Response Rates

Orders vs. Available Inventory

Spend Analysis

Sales Team Effectiveness

Resolution Rates

Product Propensity

Cycle Time Analysis

Procurement Cycle Times

Customer & Product Profitability

HR Compliance Reporting

Up-sell / Cross-sell

Service Rep Effectiveness

Loyalty and Attrition

Backlog Analysis

Inventory Availability

P&L Analysis

Workforce Profile

Cycle Time Analysis

Service Cost Analysis

Market Basket Analysis

Fulfillment Status

Employee Expenses

Expense Management

Turnover Trends

Lead Conversion

Service Trends

Campaign ROI

Customer Receivables

BOM Analysis

Cash Flow Analysis

Return on Human Capital

GL / Balance Compensation Sheet Analysis Analysis

Other Operational & Analytic Sources

Prebuilt adapters:

Oracle BI Suite Enterprise


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