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th May 8 Hyperion Profitability & Cost Management Overview
Transcript of th May 8 Hyperion Profitability & Cost Management Overview
<In
sert
Pic
ture
Here
>
Hyp
eri
on P
rofita
bili
ty &
Cost
Manag
em
ent
Overv
iew M
ay 8
th,
2013
Dan C
arlson
Ora
cle
EP
M S
olu
tion C
onsultant
P: 312.6
51.8
220
E: dan.c
arlson@
ora
cle
.com
2
Today’s
Agenda
�Hyperion Profitability & Cost Management
(HPCM) Overview
�HPCM Demonstration
The Problem
Profitability M
anagement Lifecycle
Cost
Allocations
Profitab
ility
Analy
tics
Profitability
Management
Who a
re the m
ost and least pro
fita
ble
custo
mers
?W
hat pro
ducts
contr
ibute
the m
ost to
the
bottom
lin
e?
Does c
usto
mer
or
pro
duct pro
fit vary
by
regio
n?
What is
the p
rofit contr
ibution m
arg
in o
f a
pro
duct or
a s
erv
ice?
Why a
re c
usto
mers
pro
fita
ble
or
unpro
fita
ble
?W
hy is the c
ost to
sell
or
serv
ice
diffe
rent acro
ss the c
usto
mer
base?
How
do b
usin
ess p
rocesses im
pact
custo
mer
pro
fita
bili
ty?
How
is r
esourc
e c
onsum
ption
affecte
d b
y p
roduct m
atu
rity
?
What is
the im
pact on P
rofita
bili
ty w
hen:
-change in p
rice
-re
assig
nm
ent of re
sourc
es
-in
troducin
g a
new
pro
duct
-change in p
roduct m
ix
4
One System for Profitability Reporting, Profitability
Analytics, and Profitability M
anagement
What?
Why?
Drive Profitable Growth
–M
easure
the
valu
e a
dded b
y a
pro
duct, c
usto
mer,
or
a
segm
ent, to y
our
busin
ess p
rofita
bili
ty
Use Insight to Guide Actions
–Lead p
eople
to take
action b
ased o
n v
erifiable
facts
for
effective d
ecis
ions
Now W
hat?
Discover drivers of Cost and
Profitability
–D
iscover
how
much e
ach a
ctivity c
osts
to s
ell
or
serv
ice a
pro
duct
An integrated system for Profitability Reporting, Profitability Analysis
and Profitability Management will drive the next level of value
creation and competitive advantage for organizations
5
Ora
cle
–E
nte
rpri
se
Pe
rfo
rma
nce
Ma
na
ge
me
nt
Hyperion Connects Management Processes
Com
mon I
nte
gra
tion &
Analy
sis
La
yer
Data
Qualit
y &
Consis
tent
Dim
ensio
ns
Hyperion E
ssbase
Com
mon R
epo
rtin
g &
Inte
raction
Str
ate
gic
Pla
nnin
g
Fin
ancia
l C
lose
Pla
nn
ing &
Fo
reca
stin
g
Pro
fita
bili
ty M
an
ag
em
ent
Exce
l
XM
L
Oth
er
Syste
ms
People
Soft, O
racle
, S
AP
, C
usto
mD
ata
Ware
house
Data
Mart
•Create & Manage
Dim
ensions&
Hierarchies
•Add any custom
Measures
•Deploy the
Application
Create & Manage the
Business Model:
•Define the Stages
•Define the Drivers
•Define the Allocation
AssignmentPaths
•Automatically generate
the CalcScripts
•Load Cost, Revenue
& DriverData
•Calculate Model &
Store Results
•Validate the Model
•Generate the
Reporting Cube
Reporting Cube with
Allocation Genealogy:
•Profitability
Analysis
•Cost & Revenue
Contribution
Analysis
The Profitability Analysis Process with HPCM
Metadata
Management
Allocation
Model
Definition
Cost & Revenue
Allocation
Calculations
Profitability & Cost Analysis
Enterprise
Perform
ance
Management
Architect
Hyperion
Profitability &
Cost
Management
Essbase
Calculation
Cube
(BSO)
Essbase
Reporting
Cube
(ASO)
Dashboards,
Financial Reports,
Excel,
Smartview
Dim
ensions
Hierarchies
Attributes
Stages
Drivers
Assignments
8
Today’s Agenda
�Hyperion Profitability & Cost Management
(HPCM) Overview
�HPCM Demonstration
�S
etu
p the M
odel / D
efine the A
llocation S
tages
(Dim
ensio
ns)
�D
efine the D
rivers
�D
efine the A
llocation A
ssig
nm
entpath
s
�Load D
ata
and C
alc
the M
odel
�V
alid
ate
the R
esults
�A
naly
ze R
esults u
sin
g:
–T
raceabili
ty M
aps
and G
enealo
gy R
eport
s
–Levera
ge C
om
mon E
PM
Report
ing &
Analy
sis
Tools
IT
Sa
larie
s
Fa
cili
tie
s
Re
nt
Au
dit
Sa
larie
s
IT
De
skto
p S
up
po
rt
Ch
eckin
g A
ccts
East 5
7th
St
Ch
eckin
g A
cct
Ea
st 5
7th
St
AT
M
Sta
ges:
Dimensions:
1:
Ge
ne
ral
Led
ge
r
=Dept
+Account
2:
Activity
=Dept
+Activity
3:
Pro
du
ct
=Product
4:
Bra
nch
=Branch
5:
Co
st
Ob
ject
=Product
+Branch
+Channel
An Example: Using HPCM to Assign Costs
to Products, Activities, and Channels
Sta
ges
(Dim
en
sio
ns)
Dri
vers
& A
ss
ign
men
t P
ath
s
GL
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% o
f T
ime
Sp
en
t
# P
Cs
in U
se
# o
f T
ran
s
# o
f T
ran
s
Even
S
plit
Sq
uare
F
eet
$$$$ $
$$$ $$$$
$$$
$$$
$$$
$$$
(pro
duct
dem
onstr
ation)
11
•Packaged Profitability functionality
•C
om
pute
s P
rofita
bili
ty f
or
Segm
ents
, P
roducts
,
Custo
mers
, C
hannels
•Pre-Built Framework for
pro
fita
bili
ty m
odelin
g:
•P
re-b
uilt
Measures
dim
ensio
n
•S
upport
for
Multip
le C
ost A
llocation m
ethodologies
•P
re-B
uilt
Validation
report
ing
•G
raphic
al In
tera
ctive Traceability M
aps
•Genealogy Reporting s
how
s flo
w fro
m a
ny s
tage to a
ny
sta
ge
•A User-Driven application
•M
easure
s, A
llocate
s a
nd A
ssig
ns C
ost and R
evenues v
ia
User Defined Rules
•F
inance User-facing Administration
•P
rovid
es Scenario Modeling for
Decis
ion M
akin
g
•Tightly integrated with the full Hyperion EPM Suite
•Shared Data and Metadata v
ia E
PM
A
•S
hare
d R
eport
ing T
ools
like Financial Reports, Web
Analysis & MicroSoftOffice
•P
roven T
echnolo
gy S
tack –
Built
on E
ssbase
Hyperion Profitability and Cost Management