Il Performance Management in Cloud - ABIC Oracle-ABIC... · Il Performance Management in Cloud...

Il Performance Management in Cloud Edilio E. Rossi EPM Sales Development Director, Italy & Iberia “Planning & Reporting (R)evolution” Bologna - March 16th, 2016

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Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Modern Finance is evolving from governance to guidance

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Enterprises who have embraced digitization across the enterprise have revenues, profit margins and stock prices 20-30% higher than laggards. - McKinsey

Digital Technologies Drive Tremendous Value

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Four key processes

1 2 3 4


From Governance to Guidance Enterprise Performance Management Journey Forecasting &

Monitoring

Closing & Reporting

Management Review

Planning & Budgeting

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2

3

4




Monitoring

Closing & Reporting

Management Review


1

2

3

4



• Alignment between strategy & execution, financials & operations, planning & control/feedback • Emergence of new planning models: forward-looking, zero-based, risk-weighted predictability

• Addressing profitability and liquidity issues & business / market dynamics and uncertainity. • Managing a collaborative, iterative, X-functional, timely, multidimensional, simulative bi-directional process

• Seamless integration of data sources & target systems

Planning & Budgeting Challenges



Planning and Budgeting Cloud Service

Planning & Budgeting process flow

• Input from 3Y/5Y Plan •Corporate / Business

/Industrial Plan (balances & KPIs) – strategy alignment

• Input from GL closing (actuals)

• Input form other sources

Plans & Actuals

•Modeling, dimensions,... •Drivers, business rules • Scenarios & versions • Submission & approval

cycles •Cost & profitability •X-functional planning

Budgeting •Objectives & target

setting • Input to Financial Mgt.

Systems (ERP’s GL) • Input to operations’

systems (Supply Chain Management)

• Input to CRM/CX systems (S&M)

Fin. Mgt. & Operations

ERP Cloud, SCM Cloud,...



The “Planning Beyond Finance” Challenge INTEGRATE Financial Planning

with... • HR Planning • Sales Planning • Production Planning • Procurement Planning • ............................

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HR Planning • Workforce is the 1st or 2nd largest cost “item”

in (almost) every organization

• Difficult and time consuming process due to multiple variables to be considered

• In growing enterprises recruiting cycles are faster that budget cycles

• In shrinking organizations, lay-offs and transfers are a challenge

• Consider both domestic and international Regulatory requirements and collective / individual labour agreements

• Simulate headcount and cost of labour impact in different scenarios (M&A, re-orgs,...)

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HR Planning VIDEO

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• Status & Transfers • Variations, cost centers Headcount

• Hiring & lay-offs • M&A / Re-orgs scenarios To-Be-Hired

• Wages, labour agreements • Social Security costs

Fixed Compensation

• Bonuses • Performance drivers

Variable Compensation

• Corporate assets assignment • T&L allocation

Workforce expenses

https://vimeo.com/114863743 Password: oracle

https://vimeo.com/114863743

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It’s a complex, iterative and collaborative process across the organization Sales Budget Workflow

CEO set corporate targets and CFO

define P&L budget accordingly,

including top level Revenue and Margin

objectives

Sales develop budget scenarios

Finance evaluates the

proposal

Sales refine, adjust, improve budget scenarios


revised proposal

Sales rework on scenarios / versions

Contribution Margin consistency evaluated

against target

CON

SENSU

S

Cycle continues until consensus between Sales and Finance is reached (months)

Scenarios Worst/Avg/Best Version 1

Scenarios Worst/Avg/Best Version 2

Scenarios W/A/B Version n

Revenue & COGS

Revenue (Price*Volume)


Process Pains: Sales Budget Process

Time Constraints Organizational Complexity Business Rules

Version approval & submission cycle

What-if scenarios & hypothesis

Cycle iterations (workflow)

# of People and Hierarchies

Changing Roles & Profiles

Collaboration, Mobility

Allocation Drivers & Parameters

Algorythms / Predictability

Granularity levels / Hierarchies


Oracle EPM Cloud

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Planning & Budgeting Cloud Service (PBCS)

• Enterprise Planning with the Simplicity of the Cloud • Full power of Hyperion Planning, Available in the Cloud • Rapid implementation: Application creation wizards, Starter

kits and templates for implementation in weeks • Flexible deployment choices: Cloud and on-premise models,

Tools for application migration • Enterprise Grade: Security, Scalability, Performance • Fully Managed: Patched, Backed Up, Upgraded by Oracle


Oracle EPM Cloud

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Enterprise Planning & Budgeting Cloud Service (EPBCS)

• Access to core planning and pre-built integrated modules all for a single per user per monthly fee

• Not a simple porting but a Cloud re-design of Vertical Modules with Built-In Best Practices

• Configurable framework for Customers & Partners Enrichments

• Automatically Upgraded by Oracle


Integrated Driver-based Planning for the Revenue, Costs, Balance Sheet & Cash Flow

Bridging the Gap Between Project Planning Systems and the Financial Planning Process

Headcount & Compensation Planning to link Financial Plans with the Workforce

Planning for the Long-term impact of Capital Assets on Financial Plans

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Financials Projects

Capital Workforce

Oracle EPM Cloud Enterprise Planning & Budgeting Cloud Service (EPBCS)



Monitoring

Closing & Reporting

Management Review


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2

3

4



• Which data sources & what data analysis are relevant / available • Seamless integration with demand planning, CRM/CX, financial mgt. systems • Predictive models & tools. Risk-adjusted assumptions. Timely “Consensus” process • Simulation & what-if analysis to address real-time business challenges / dynamics

Forecasting & Monitoring Challenges



Planning and Budgeting Cloud Service

Forecasting & Monitoring process flow

•Demand Planning (volume)

•Actuals from GL

Demand & Actuals

•Projections from actuals •Trends & Patterns •Predictive algorithms • Simulations, what-if

analysis •Consensus process

Forecasting •Update transactional

systems •Reschedule operations •Reallocate resources • Supply chain operations

review • Sales targets review

Fin. Mgt. & Operations

ERP Cloud, SCM Cloud,... ERP Cloud, SCM Cloud,...



It’s a very fast, highly predictive and negotiated process across the organization Sales Forecast Workflow

CFO provides Sales with actuals and asks for Revenue Forecast

Sales collect and consolidate forecasts


proposal

Sales develop new forecast based on Finance

feedback

Finance evaluates & approve the

proposal

Sales consolidate forecasts

Contribution margin consistency evaluated

against target

CON

SENSU

S

Cycle closes when consensus between Sales and Finance is

reached (days)

Revenue Budget vs. Forecast & COGS variations

Revenue Forecast vs. Budget (Price*Volume)

Baseline + Uplift, Promotions, new products... Version 1

Baseline + Uplift, COGS variations,... Version 2

Baseline + Uplift, New events,... FINAL version


Process Pains: Sales Forecast Process

Time Constraints Organizational Complexity Business Rules

Time-to-market challenges

(Near)-Real Time (weekly/monthly)

Impact on value chain (operations)

Predictive modeling

Demand patterns (external)

Sales & Mktg. actions (internal)

# of People and Hierarchies

Changing Roles & Profiles

Collaboration, Mobility


Additional Issues affecting the Sales Forecast Process

Revenue Gap Management COGS Gap Management

Adjustments (Forecast vs. Budget)

Promotions / S&M campaigns

Demand Planning, Volume/Price

Direct Costs: Actuals vs. Standard

Promotions / S&M campaigns

Contribution margin convergence


Manhattan Beachwear VIDEO Interview

http://www.youtube.com/watch?v=LScQasFr1KU&feature=youtu.be

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http://www.youtube.com/watch?v=LScQasFr1KU&feature=youtu.be



Monitoring

Closing & Reporting

Management Review


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Growing Regulatory & Compliance pressures (“X”-GAAPs, IAS/IFRS, Industry, Stock markets / IPOs, Environmental / CSR, GRI,....)

Increasing Stakeholder’s requirements (lenders, investors, shareholders, management, community...) Request for timely, accurate and reliable end-to-end closing process (from GL to disclosure)

Need for narrative, collaborative and integrated Reporting process

Closing & Reporting Challenges



Enterprise Performance Reporting Cloud Service

Financial Close Cloud Service

Closing & Reporting process flow

• Sub-ledger close • GL close • Account reconciliation • Accruals &

adjustments

GL Closing

• Data assurance • Multi-GAAP • Management &

Statutory

Consolidation • Combine data with

narrative • Collaborate securely • Confident publishing • Disclosure & filing

Reporting

ERP Cloud


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Multiple Reports, Multiple Stakeholders The average worker collaborates with 10 or more people to accomplish daily tasks

AUTHOR

AUTHOR AUTHOR REVIEWER

REVIEWER

REVIEWER

AUTHOR

SIGNER

SIGNER

Operations Reviews Board Packages Audit Reports Public Disclosures Regulatory Reporting Group Budget Review

OWNER

Copyright © 2015 Oracle and/or its affiliates. All rights reserved.


Oracle Enterprise Performance Reporting Cloud Service Reinvent Your Narrative Reporting Process

Collaborate Securely

Confidently Report

Combine Data and Narrative

30 Copyright © 2015 Oracle and/or its affiliates. All rights reserved.


Oracle EPM Cloud

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Enterprise Performance Reporting Cloud Service

• Collaborative: Narrative-based management reporting and statutory disclosures in one service

• Complete: Authoring, collaboration, commentary and delivery needs via a single Reporting Package

• Secure: Role-based, auditable access on desktop and mobile devices

• Enterprise Grade: Security, Scalability, Performances • Fully Managed: Patched, Backed Up, Upgraded by Oracle • Innovating: enhancements released on a monthly base within

a clear and well defined roadmap strategy


Oracle EPM Cloud

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Financial Consolidation & Close Cloud Service (FCCS)

• Address Management and Legal Entity consolidation needs for a broad spectrum of customers

• Significant out of the box functionality with limited need for customization (no scripting)

• Out of the box calculations, hierarchies and reports for quick deployments

• Built in task orchestration for management of overall process • Built in supplemental Data Management • Fully integrated with the EPM Cloud



Monitoring

Closing & Reporting

Management Review


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2

3

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Align strategy to execution (Scorecarding) Effective, timely decision making (Dashboarding) Multidimensional, predictive, real-time analytics Big Data analytics for Finance Ensuring implementation across enterprise value chain

Management Review Challenges



Business Intelligence Cloud Service

Management Review process flow

•Budget balances / granularity levels

• Forecast data (rolling 12+) • GL balances (ACT, YTD) • Reporting packages •Other relevant data sources

Budget, Forecast, Actuals, Reporting

•Dashboarding • Scorecarding •Multidimensional analytics •Predictive analytics • Simulation, what-if,... • New business modeling

Business Intelligence •KPIs update & monitoring

•Adjust strategy-to-execution flow & metrics

•Provide closed loop feed-back to Plan

• Resource re-allocation

Decision making

ERP Cloud, SCM Cloud,...

EPM Cloud suite



Business Intelligence Cloud Service VIDEO


https://cloud.oracle.com/en_US/business_intelligence




• Mobile Access Anywhere

• Cloud, On-Premises, Hybrid • Built-in Social Collaboration

How You Can Work



Data as of March 2016 Oracle Planning & Budgeting Cloud Service Momentum

150+ Customers with > 100 seats

60 seats per customer on average

Launched: February 14, 2014

Clients across industry

Financial Services, Higher Ed, Consumer Goods, Retail, Professional Services, High Tech

1000+ Customers to date

62,000+ End Users and growing!

Available and Supported Globally 24 X 7 X 365

Oracle Confidential –Restricted


Oracle EPM Cloud Value for Customers

39

Oracle EPM Cloud is Proven, based on Hyperion technology deployed at thousands of customers

Oracle EPM Cloud is Flexible, allows customers to adopt EPM Cloud at their own pace with Hybrid approach

Oracle EPM Cloud is Comprehensive, with a clear strategy to provide full value on Cloud

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