Business Analytics Solutions Provider Using Oracle EPM and BI Technologies

Opus Group – An Oracle PBCS Success Story

Charlie Luke – Sr. Director, FP&A, Opus Group

Vatsal Gaonkar – Project Lead, Edgewater Ranzal

2

Edgewater Ranzal is a full-service Oracle Platinum

Consulting Partner with premier services

in North America and regional offices in the United

Kingdom

We deliver Business Analytics solutions that

include Oracle Hyperion Enterprise Performance

Management (EPM), Business Intelligence (BI) and Big Data technology

Our multiproduct focus offers domain expertise and technical leadership using the Oracle

Business Analytics Product Suite

We have industry expertise and specializations to help us deliver end-to-end solutions for

each client’s business needs

Who We Are

3

Our Services

Financial Close &

Consolidations

Business

Intelligence/Big Data

Enterprise

Planning &

Analytics

Data Integration

Services

Training &

Support Services

Advisory ServicesInfrastructure

Costing &

Profitability

Mgmt

Business Intelligence/Big Data

• Scorecards & Dashboards; Mobile Delivery

• Prepackaged Analytic Applications (OBIA)

• BI Foundation (OBIEE / Essbase)

• Financial & Operational Analytics

• Reporting & Publishing

• Big Data

• Information Discovery (Endeca)

• Business Intelligence Cloud Service (BICS)

Financial Close & Consolidations

• Legal, Segment, & Mgmt Reporting

• Financial Performance & Close

• Optimization & Performance Lab

• Tax Provisioning

• Regulatory Requirements

Data Integration Services

• ERP Integration

• Financial Data Management

• Data Warehousing

• MDM & DRM

• ETL Services and Automation

Infrastructure

• Hardware Sizing, Installation, & Configuration

• Exalytics Benchmarking

• System Monitoring, Backup, & Disaster Recovery

• Upgrade & Migrations

Advisory Services

• Project/Program Management &

Process Change

• EPM & BI Road Maps

Training & Support Services

• Standard & Custom Training

• Virtual Classroom

• Multimedia and UPK

• Service Level Agreements

• Managed Services & Hosting

• Performance Engineering

Enterprise Planning & Analytics

• Strategic Planning (HSF) &

Modeling

• Planning, Budgeting & Forecasting

• Workforce, Capital, & Project

Financial Planning

• Public Sector Planning

• Cloud Services

Costing & Profitability Management

• HPCM Standard & Detail Models

• Waterfall Allocations

• Shared Service Charges

• Activity Based Costing

• Customer, Product, Segment &

LOB Profitability

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Who is The Opus Group

Planning Cycle: Process and Pain Points

Opus Implementation Approach

Edgewater Ranzal Proposal Approach

Demonstration of Design Components

Benefits realized thus far

Agenda

5

Integrated Real Estate Development and Design-Build Construction

Founded in 1953 as Rauenhorst Construction Company

Offices in Minneapolis (HQ), Chicago, Denver, Des Moines, Kansas City, Indianapolis, Phoenix and St. Louis

Merchant builder – build to sell, don’t build to own

Two legal entities for Capital Planning and Revenue & Margin Modeling

Capital Structures: On Book (all Opus equity); JV (some Opus equity); Fee Development (their equity); Client Direct Services (third party)

Who is The Opus Group

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Capital Planning and Revenue Modeling processes evolved over time as a series of separate, and not linked, quarterly spreadsheets for ODC & ODB

Opus Short Term Capital Planning is a 13 month rolling-forecast model

Manual process to update multiple spreadsheets with similar or the same project-level data; significant effort at quarter end to “roll-forward” the file

Time consuming to change a project driver(s): capital structure and dates

Difficult to extend short-term plan (monthly) into a long-term plan (quarterly) – different planning units used in separate files

Scenario analysis = “File Save As”; adding to file proliferation

No historical database; data in three month segments in quarterly files

Created multiple opportunities for data-entry errors – “linkronization”

Planning Cycle Pain Points

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Planning Process

ProjectProforma

CRM

ProformaModel

Summary

Real Estate Revenue &

Margin

Revenue & Margins

Construction Revenue &

Margin

Short Term Capital Planning Long Term Capital Planning

Construction Short TermCapital Plan

Real Estate Short TermCapital Plan

ProjectEquity

Analysis

Cash BooksWEBI & E1

Reports

Long TermCapital Modeling

Opus GroupFive Year

P&L

Opus GroupFive Year

Capital PlanConst Margin

RE Revenue &Margin

Real Estate Project Equity; RE & Construction Revenue & Margin

ODB Available Capital not incorporated into LTCP; only via Distributions to ODC

TableGraphs

L

L

L

L

L

L

L

L

L L

LL

CRMPipeline

1

3

2

4

5

6

7

8

12

11

10

L

L Data transfer - manual

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Three phases: Crawl – Walk – Run

Crawl phase (July – November 2015): Short and Long Term Capital Planning

Goal: Use PBCS to prepare Short and Long Term Capital Plans starting Fall 2015

Build out the basics – Dimensions; Business Rules; Task Lists; Calculations; Forms

Load monthly historical data; starting point November 2014

Use SmartView to push monthly actual cash flow data into PBCS; establish process

Eliminate the line between short-term and long-term Capital Planning

Eliminate the three most complex spreadsheets used in Capital Planning

Use SmartView for quarterly management and board reporting

Implementation Approach

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Crawl Phase

CRAWL

PHASE

SCOPE

ProjectProforma

CRM

ProformaModel

Summary

Real Estate Revenue &

Margin

Revenue & Margins

Construction Revenue &

Margin

Short Term Capital Planning Long Term Capital Planning

Construction Short TermCapital Plan

Real Estate Short TermCapital Plan

ProjectEquity

Analysis

Cash BooksWEBI & E1

Reports

Long TermCapital Modeling

Opus GroupFive Year

P&L

Opus GroupFive Year

Capital PlanConst Margin

RE Revenue &Margin

Real Estate Project Equity; RE & Construction Revenue & Margin

ODB Available Capital not incorporated into LTCP; only via Distributions to ODC

TableGraphs

L

L

L

L

L

L

L

L

L L

L

L

CRMPipeline

1

3

2

4

5

6

7

8

12

11

10

L

L Data transfer - manual

10

Walk phase (January – May 2016): Revenue and Margin modelling

Develop inbound interfaces from E1 via Business Objects / WEBI

Upload of ODC and ODB monthly actual cash flow activity

Upload of ODC and ODB quarterly actual revenue and margin

Add timing lag – revenue and margin different than cash

Management Adjustment – exclude specific projects from modelling

Other enhancements from Crawl Phase

Run phase ( ~ Q1 2017): Automate data feeds; P&L data

Pull data from source systems directly into PBCS

Develop inbound interfaces from CRM to populate pro forma

Additional financial data from E1: full P&L data; detailed expenses

Five year Capital Plan and P&L from PBCS

Convert from SmartView extracts to PBCS Financial Reports

Implementation Approach

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Walk – Run Phase

WALK-RUN

PHASE

SCOPE

ProjectProforma

CRM

ProformaModel

Summary

Real Estate Revenue &

Margin

Revenue & Margins

Construction Revenue &

Margin

Short Term Capital Planning Long Term Capital Planning

Construction Short TermCapital Plan

Real Estate Short TermCapital Plan

ProjectEquity

Analysis

Cash BooksWEBI & E1

Reports

Long TermCapital Modeling

Opus GroupFive Year

P&L

Opus GroupFive Year

Capital PlanConst Margin

RE Revenue &Margin

Real Estate Project Equity; RE & Construction Revenue & Margin

ODB Available Capital not incorporated into LTCP; only via Distributions to ODC

TableGraphs

L

L

L

L

L

L

L

L

L L

L

L

CRMPipeline

1

3

2

4

5

6

7

8

12

11

10

L

L Data transfer - manual

Ranzal Proposal Approach

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Solve “Linkronization”

Driver based Hyperion Planning solution!

Important requirements

Planning Horizons

Complexity

Cost

Limited IT involvement

Proof of Concept

Ranzal Proposal Approach

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Scope

Complexity

Time

Technology

Project Portfolio

Planning

Quick

Turnaround

Low IT

Involvement

Rolling forecast

Proposal Approach

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Functionality

Capex Yes No

Workforce Yes No

Plan Type Yes Yes

Data Yes Yes

Essbase Yes No

Cost / Time

Footprint High N / A

Maintenance High Low

Software High N / A

Licensing High Low

On Premise

OraclePBCS

Requirements

On Premise Deployment

Requirements

Cloud Deployment

Cross Tab Reporting

Oral Presentation Results

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Proof of Concept SAAS

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Design Components

Demo

Design Components

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Project Administration

Project properties

Project End Month = Project Start

Month + Construction Duration

Project Exit Month = Project End Month +

Stabilization Duration

Design Components

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Joint Ventures (JV) Administration

Joint Venture % and Promote %

JV Payout – Project Start, Construction Duration, and Project Exit payouts

Design Components

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Fee Development Administration

Development Fee Margin

Dev Fee Payout – Project Start, Construction Duration, and Project Exit payouts

Design Components

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Pro Forma Projection

Project Costs = Land + Development + Building + Miscellaneous

Project Equity, Cash Equity, and Opus Cash Equity

Loan to Cost Ratio, Project Equity, Joint Venture, and Promote

Understanding Maximum Debt, and Opus Share Margin

Design Components

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Pro Forma Projection (continued)

Capital Structures and Pro Forma Projections

‘On Book’ projects

- All Cash Equity is Opus Cash Equity

as Opus is incurring all the costs

Design Components

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Pro Forma Projection (continued)

Capital Structures and Pro Forma Projections

‘Joint Venture’ projects

- Joint venture portion of the equity

is Opus Cash Equity

Design Components

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Contracts

Project Contracts

Drives Construction Capital Plans

Drives Revenue and Margin Plans

Design Components

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Capital Plans

Changes on Projects

Capital Structure changes

Potential changes in dates

Application of modelling to one or both of ODC and ODB

Linkronization

PTD and PVAR

Actuals Overlay

Design Components

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Project Equity

Spanning multiple years

By Capital Structure

By Product Type

By Project Status

Graphical Forms

Design Components

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Version Based Analysis

What-if Analysis

Copy Version

Change user preference

Make changes to the new version project drivers

Reproduce results

Crawl Phase – Realized Benefits

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Centralized source of driver based project data for planning and analysis

Eliminated the three complex spreadsheets used for Capital Planning

Linkronization substantially reduced – eliminate 9 of the 13

Substantial efficiency gains preparing Short Term Capital Plans75% reduction in time; from typically four full days of work down to one

Fully integrated to Opus Long Term Capital Plan

Reallocated time to analysis of the overall portfolio of projects – prepare, compare and contrast multiple “What-if” Scenarios

L

Efficiently model deployment of capital amongst a portfolio of projects in order to maximize long-term returns to stakeholders

Q&A

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Charlie Luke

charlie.luke@opus-group.com

Vatsal Gaonkar

vgaonkar@ranzal.com

For further questions

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Our Sessions Today

8:30am – Infrastructure

Best Practices in Preparing for and Managing your Hyperion EPM Infrastructure Version 11.1.2.4

Scott Pold, Practice Director – Infrastructure and Support Services

1:00pm – BI and Reporting

Modernize the Oracle EBS Experience with Endeca Financial Extensions

Dan Brock, Practice Director – Big Data Analytics

2:10pm – Enterprise Planning

Opus Group, an Oracle Planning and Budgeting Cloud Service (PBCS) Success StoryVatsal Gaonkar, Project Lead

Charlie Luke, Sr. Director Financial Planning & Analysis

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Stop By Our Table and Say Hello!

Meet the Team and Register to Win Prizes

Grand Prize Drawing

$100 Gift Card and Gift Bag

Table Prize Drawing

The Definitive Guide to Oracle FDMEE

Authored by Tony Scalese, Edgewater Ranzal

Integration Practice Director and Oracle ACE

Hot off the press!

Blog: www.fdmeeguru.com

Contact

Nate Gruys, Business Development Manager

Email: ngruys@ranzal.com