Mike Killeen, Sr. VP of Technology & Strategy
Oracle Open World 2015UGF9979
A Deep Dive into HPCM for Planning and Essbase Professionals
Oracle Platinum Consulting Partner - 100% Focus on Oracle Hyperion EPM, BI, & Big Data solutions195+ Full time EPM/BI Billable Consultants throughout the US, Canada and the United Kingdom
EPM, BI, & Big Data Experience & Success1,800+ Oracle EPM, BI, & Big Data projects for 850 clients successfully delivered since our founding in 1996
Depth & Breadth of EPM, BI, & Big Data Service OfferingsProduct Experts across the full EPM, BI, & Big Data Suite - Planning, HFM, HTP, FCM (ARM), HSF, HPCM, Essbase, BI/Endeca, DRM, FDMEEVisioning & Roadmaps, Full Life Cycle Implementations, Technical Review & Assessments, Staff Augmentation
Ranzal Oracle ACEs Across Business Analytics Platform
Direct line to Oracle Development, Customer Advisory Boards, Beta Testing, Author Certification Exams
Introduction to Ranzal
2
Service OfferingsCustomized & Core Product Training Delivery
HPCM Model Types: Standard Model, Detailed Model, Management Ledger
Profitability Project Initiation & Analysis Services
Multi-Phase, Multi-Product Strategic Roadmaps & Visioning
Future State Process Definition
Costing Requirements Analysis & Proof of Concept Development
Full Life Cycle Application Delivery By Type:
Shared Service Costing & Charge Backs
Operational Transfer Pricing & Inter-Unit Charges
Global Expense Allocations - Dept & Project
Management Profitability – Segment, Region & LOB
Operational Profitability – Client, Product & Service
Project Experience & Resource Capability18 Experienced Full Time Consultants in the U.S. and EMEA
Over 20 HPCM projects delivered (100 Total Globally)
Comprehensive approach incorporates other tools such as DRM, FDMEE & OBIEE
Close Relationships with Oracle Development – involved in initial Product Architecture
Profitability & Cost Management Offerings
Financial Close Suite
BusinessIntelligence
EnterprisePlanning & Analytics
Data IntegrationServices
Training &Support Services
Advisory ServicesInfrastructure
Costing &Profitability
Mgmt
3
What is HPCM and what does it do?
Common points between HPCM and Planning & Essbase
HPCM Modules Standard ProfitabilityManagement LedgerDetailed Profitability
HPCM vs Planning/Essbase
Q&A
Agenda
4
Packaged Profitability functionality • Computes Profitability for Units, Segments and Services• Pre-Built Framework for profitability modeling:
Pre-built Measures dimension Support for Multiple Cost Allocation methodologies Pre-Built Validation reporting
• Graphical Interactive Traceability Maps• Genealogy Reporting shows flow from any stage to any
stage
A User-Driven application• Measures, Allocates and Assigns Cost and Revenues via User
Defined Rules• Finance User-facing Administration• Provides Scenario Modeling for Decision Making
Tightly integrated with the full Hyperion EPM Suite• Shared Data and Master Data via EPMA• Shared Reporting Tools like Financial Reports & Smart View
for Office• Proven Technology Stack
Hyperion Profitability & Cost Management
Common Points with Planning and Essbase
BSO ASO
&
HPCM shares the following concepts with Essbase and Planning
Calculation scriptsDimension Build RulesData Load RulesLev0 ExportsSmart ViewEPMA or non-EPMA
Product RepositoryWeb interfaceConcept of POV in the web interfaceClosed/Open POVsRules
Essbase Planning
6
Audit and Accuracy Shared Methodology Transparency
7
Flexibility
Why HPCM? For These Key Requirements…
Analyze different chargeback approaches to yield optimal mix of services versus costs incurred by the entity.
Rapidly evolve methodologies as the business changes.
Provide What-If capabilities to assess impact of key business decisions on bottom line
Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance.
Achieve this through meaningful allocations, automation, and system controls.
Define consistent allocation and charge back methodology across all management cycles.
Create consistent comparisons when reviewing and updating methodology result and planning for future management cycles.
Give units the detail costs they incur for the service consumed.
Compare effectiveness of internal unit services with those of external providers to ensure efficiency.
Allow LOB managers to understand cost to serve and profitability results.
Group HQ
Group Overhead (e.g. CEO)
Group Services (e.g. Property, Controllership, IT)
Inter Unit Charges ( e.g. Transfer Pricing, Contractual Charges)Inter Unit “Regulatory”
Division 1
Shared Services
Overhead
Services
Fully Allocated P&L (e.g. Channel,
Fund, Region)
Expense Allocations
Fully Allocated
“Thin Ledger”
Product Profitability
Customer Profitability
Operational Profitability
“BI”
Division 2
Overhead
Services
Fully Allocated P&L (e.g. Channel,
Fund, Region)
Division 3
Overhead
Services
Fully Allocated P&L (e.g.
Channel, Fund, Region)
HPCM Application Types
8
9
HPCM Has Multiple Model Types toSolve Different Allocation Problems
Version 11.1.1.1 Version 11.1.2.0 Version 11.1.2.4
Management LedgerFully Allocated P&LClient Profitability
via ABC
Fund Profitability HFM/GLActuals
PlanningBgt/Fcst
BIReporting Tool
HPCM Modules Comparison
Standard Profitability stands out as the module that caters for highly complex allocations models and offers the widest range of reporting capabilities.
Detailed Profitability stands out as the “heavy-lifter” of the 3 modules, enabling users to define simple allocation models with a wide range of dimensions and metadata granularity.
Management Ledger combines both the metadata granularity as well as the logics complexity enabling users to define custom models without restricting or limiting the level of detail required for reporting.
10
Solution Architecture with HPCM
Ad Hoc Published Reports
HPCM Data Mart
Metadata Management
Web
Office
Manual Data Input
Pre & Post-Allocations Data Processing
Attributions & Adj
ETL/FDMEE
GL or HFM
OperationalSystem
.txt file
.csv file
Allocations
Validations
Centralized Reporting
Supply Plan
DemandPlan
OBIEE Reports
DRM
11
What is HPCM and what does it do?
Common points between HPCM and Planning & Essbase
HPCM Modules Standard ProfitabilityManagement LedgerDetailed Profitability
HPCM vs Planning/Essbase
Q&A
Agenda
Find more details in the Appendix section
12
Standard Profitability – Under the Hood
BSO ASO
EPMA HPCMHPCM repository
OR
HPCM Staging Area
Calculation Cube Reporting Cube
ASOMetadata Cube
13
Standard Profitability - Metadata
POV DimensionsSystem Dimensions
Measures
AllocationType
Business Dimensions
14
Standard Profitability - Stages
1 23 .
45
A dimension is created in the
Essbase outline for each stage where it is
used
Repeat dimensions
between stages as
many times as needed
You can have
max 9 stages
Only 3 dim/stage Intra
Stage
Changes in stage definition require full deployment
Reporting requirements are crucial when defining stages
Driver dimensions must be defined based on model logics, driver data granularity and driver exceptions
15
Standard Profitability – Driver Definition
IF (“S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount] <> #MISSING)
CalculatedDriverValue = “S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount];
ELSE …..
Set of predefined driversSelect to apply drivers to either Cost or Revenue layer or bothDefine the sequence priorityEnable to allow idle or use default option to redistribute driver values as a 100% base
EvenSimplePercentageSimple WeightedVariableVariable WeightedFixed and VariableCustom
16
Standard Profitability – Driver Definition
IF (“S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount] <> #MISSING)
CalculatedDriverValue = “S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount];
ELSE …..
Set of predefined driversSelect to apply drivers to either Cost or Revenue layer or bothDefine the sequence priorityEnable to allow idle or use default option to redistribute driver values as a 100% base
EvenSimplePercentageSimple WeightedVariableVariable WeightedFixed and VariableCustom
17
Standard Profitability – Assignments & Rules
Rules can be defined as combinations of Level 0 and Upper level members.
Direct assignments can be created only between Level0 Members on both Source and Target stages.
You can have unlimited number of rules/assignments.
Direct assignments and Assignment rules are defined per stage using only Dimensions within that Stage
Rules be applied selectively based on Business requirements.
Assignments and rules selections can differ by POV.Users can define or modify rules and assignments in HPCM web. Artifacts can be loaded in bulk through Import Profiles from the Staging Area and can be fully automated through HPCM batch client.
18
Views in Product RepositoryTables in Staging Area Tables in Product Repository
Use the repository objects in order to find out available POVs per application, applications in the system and their type, determine POV ids, application preferences, driver defined in each model, etc.
Standard Profitability – Stage and Product Repository
19
List of drivers defined in the model that have not been selected in any of the allocation stages.
List of members that received a cost or revenue and that did not allocatethe value to further stages.
Standard Profitability – Inbuilt Validations
20
Stage Name
Pre-Allocation data loaded
Data allocated from previous Stages
Total data in Stage before allocation
Data allocated to Activity Stage
Data Allocated to Unit Cost Stage
Data allocated to Branch Stage
Data Allocated to Product Stage
Data remaining Unassigned at the end of each Stage
In-built report, easy to follow, containing the data distribution detail between each stage, and most importantly showing the Unassigned values. Any item on this report appearing as a hyperlink will open an ad-hoc Smart View report with the relevant member combinations.
Standard Profitability – Stage Balancing
21
Standard Profitability - Traceability
For drilling forward:% = ASSG CostReceivedPrior(orIntra)Stage / SRC NetCostForAssignment
For drilling backwards:% = ASSG CostReceivedPrior(orIntra)Stage / DEST NetCostForAssignment
22
What is HPCM and what does it do?
Common points between HPCM and Planning & Essbase
HPCM Modules Standard ProfitabilityManagement LedgerDetailed Profitability
HPCM vs Planning/Essbase
Q&A
Agenda
23
Management Ledger
ASO
EPMA HPCMHPCM repository
OR
ASOMetadata Cube
Calculation and Reporting
24
Management Ledger- Metadata
System Dimensions POV Dimensions Business Dimensions
25
Management Ledger- Manage Rules
26
Management Ledger- Manage Rules
Setting a global context enables you to define default definitions for dimensions that will be usedin all rule definitions for the selected POV.
You should define a global context before defining rule sets for the selected POV.
27
Management Ledger- Manage Rules
- Set-up sequence of rule within a rule set
- Select the option of executing :
- Serial - Parallel- Iterative with
number of required iterations
28
1 23 .
4 5User Interface and rule driven – no black box implementation with staging areas
Validationperformed at rule level Custom
MDX scripts
Traceability available in
various formats
Iterative rules for reciprocal allocations
Management Ledger- Features
Unlimited Dimensions : Stage-less design allows 4 POV dimensions and unlimited business and attribute dimensions Source side rules, iterative rule support for reciprocal allocations, flexible driver references, custom calculations, and easy clear / recalculation Rule execution in parallel, serial, or iterations as needed, set by userBalancing by rule with allocations sent and received as well as adjustment values detailed by ruleUser defined slices through model views for enhanced rule balancing and trace analysisVisual allocation trace from aggregate or granular level, detailed by rule
29
Management Ledger- Traceability
30
What is HPCM and what does it do?
Common points between HPCM and Planning & Essbase
HPCM Modules Standard ProfitabilityManagement LedgerDetailed Profitability
HPCM vs Planning/Essbase
Q&A
Agenda
31
Detailed Profitability – Under the Hood
EPMA HPCM
HPCM Product repository
HPCM Model data Stage
ASO DDestination CubeASO C
ASO S
Contribution Cube
Source Cube
- Dimension tables- Model data tables- Views
OR
ASOMetadata Cube
HPCMStandard OR Management Ledger Profitability
32
Detailed Profitability - Metadata
System Dimension POV Dimensions Business Dimensions
33
Detailed Profitability – Model Data Registration
You must setup a Source and Destination table in order to be able to proceed with the application build. If your selection of Column Type is incorrect, the EPMA dimensions will not appear in the drop down list and you will have to go back and reselect the appropriate type.
34
1 23 .
45
Not intended to replace Standard Profitability, but to complement it
2-5 source stage dimensions Up to 25
target stage dimensions
Only 2 stages Alloc.
Flow only
Detailed Profitability - Stages
Stage definition depends entirely on your source and destination tables and the selections of column types.
Reporting requirements should define the Model data tables. If these should change, a completely new setup is necessary.
Driver dimensions must be defined based on model logics, driver data granularity and driver exceptions
35
Detailed Profitability – Driver Definition
Rate-based driver Calculated Measure Ratio Based Allocation
36
Detailed Profitability – Assignment Rule Definitions
Source dimension assignment rule
Destination dimension assignment rule
37
Detailed Profitability – Manage Database
Source Cube Contribution Cube Destination Cube
Deploying the Source, Contribution and Destination Essbase databases is required only for reporting purposes. All calculations for the Detailed profitability model will reside in the repository.
In order to enable the data transfer between the Detailed Profitability HPCM application and the Essbase applications, an ODBC must be created on the application server and the DSN must be called PROFITABILITY_DS. After creating the ODBC it is advised to perform a Profitability service restart.
38
Views in Product RepositoryTables in Model data schema
Use the repository objects in order to find out available POVs per application, applications in the system and their type, determine POV ids, application preferences, driver defined in each model, stage balancing report data, hierarchies used etc.
Detailed Profitability – Stage and Product Repository
39
Total Input – Total Output– Idle + OverDriven = Unassigned ValuesSum of all monetary or balance data loaded to the source stage = InputSum of unassigned values + Idle - OverDriven = Input
Detailed Profitability – Stage Balancing
40
What is HPCM and what does it do?
Common points between HPCM and Planning & Essbase
HPCM Modules Standard ProfitabilityDetailed ProfitabilityManagement Ledger
HPCM vs Planning/Essbase
Q&A
Agenda
41
HPCM vs Planning/Essbase
HPCM Planning/Essbase
Designed specifically for cost allocations and scenario modelling.
Designed for use in the Budgeting and Forecasting processes.
Allocations are designed in a modelling environment; and Calc Scripts/Allocation SQL scripts/MDX scripts are generated automatically based on Stages/Maps/Rules defined.
Allocations can be done through the use of Calc Scripts/Business Rules which must be developed and maintained manually, or via Calc Manager (Designer).
No Essbase/SQL/MDX knowledge required to maintain/ redesign allocations as these are built automatically by the system.
Essbase knowledge required to maintain allocations(manually changing the scripts or building them).
All allocation logic, intermediate steps and results are visible through the web interface. (allocations, driver definition, driver intersection, rules, rule sets and traceability)
Only the results of allocations are visible through the web interface. (there is no out of the box traceability option available in Planning or Essbase).
Allocation validation immediately available (balancing reports, traceability)
Allocation validation must be manually written. Audit must be custom.
Optimized for multi-step, multi-stage, highly granular, reciprocal, simple and complex allocations.
Optimized for simpler, single or reduced step allocations & calculations.
42
Modules Summary…Plus
43
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Profitability and Cost Management Cloud ServiceDirection
Bart StoehrDon BeanEPM Product Management
October, 2015
Oracle Confidential – Internal/Restricted/Highly Restricted
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Safe Harbor StatementThe 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 StatementThe 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.
Oracle Confidential – Internal/Restricted/Highly Restricted 45
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |*** Relevant in All Industries
Operational Transfer Pricing ***
Healthcare Payers & Providers
HigherEducation
Manufacturing Product Intensive
Financial Services
Transportation& Logistics
Telecommunications
$
Utilities
PublicAgencies
Shared Services Costing ***
High Quality Care Best Outcome Lowest Cost
Cost of Degrees Affordability Performance Funding
Align ALL Costs to Revenues “Winners”/ “Losers” Landscape Driver-Based Planning
“Accountable Care”“Mastering Cost of Education”
Highest Integrity Processes Auditable via Transparency Optimize Tax Impacts
“Intercompany Profitability”
Price Justification Resource Capacity Strategic Partners w/LOBs
“Optimized Cost to Serve”
“Managing Profitable Growth”
Working Capital Funds Reimbursement Agreements Performance Based Budgets
“Cost Management”
N-Dimensional Strategic P&Ls Outsourcing / Benchmarking Nimble Product w/Service Packaging
“Hyper Competition” Rate Setting Justification Auditable via Transparency Process Efficiency
“Regulated/Semi-Regulated” Route Profitability Capacity Planning Cargo Optimization
“Maximizing The Value Chain”
N-Dimensional Strategic P&Ls“Winners”/ “Losers” Landscape Nimble Product Pricing
“Hyper Competition”
Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis
No Hardware No Shelfware Fortress Security Latest Versions Simple to Use Sophisticated Analytical Power Rapid ROI – Use Case Driven
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis
Application Management Vertical Application Templates Dimension Upload / Update User Provisioning Data Security
Oracle Confidential – Internal/Restricted/Highly Restricted 47
Multiple Dashboards Charts & Data Grids Key Performance Indicators
Custom Time Aggregations Rank and Scoring
Population Performance Analysis Multi Dimensional Profit Rank and Order Allocation Trace Custom Queries w/Drill to Smart View
Custom Report Creation Strategic P & L Reports Cost Contribution Detail
Management Ledger Applications Complex Multi Step Computations Flexible Allocation & Custom Calcs Business User Managed Rules Comprehensive Audit Trail
Application Accelerators Prebuilt Solutions Kits by Industry Purpose Built Dashboards, Intelligence
Views and Allocation Framework
• Ranzal Booth, Moscone West 3353• Open World Conference Sessions
– West Rock: Oracle Data Relationship Management—Enabling Data GovernanceOctober 26, 12:15 pm - 1:00 pm | Moscone West—3020
– Tips and Tricks: Oracle Hyperion Financial Close SuiteOctober 29, 9:30 - 10:15am, Moscone West - 3020
– Met Life, PGS & Tele2: Cost and Profitability Management October 29, 12:00 pm - 12:45 pm | Moscone West—3009
– Tele2: Empower Finance with Full Control of Oracle Hyperion FDM Integration Process
October 29, 2:30 pm - 3:15 pm | Moscone West—3020
• LUNCH N LEARNS @ the Thirsty Bear, 12-1:00 pm– Mon:
Land O' Lakes Gains Insight with Information Discovery & Big Data
– Tues: Product Profitability with HPCM at Tele2– Wed:
Rapid M&A Integration with DRM & FDMEE at WestRock
Edgewater Ranzal108 Corporate Park Drive, Suite 105
White Plains, NY 10604Tel (914) 253-6600
Email: [email protected]
PresenterMike Killeen, Sr. VP Technology & Strategy
Closing and Q&A
HPCM Workflow
Module Comparisons
Appendix – General
49
50
HPCM WorkflowPublished Reports & Interactive AnalyticsModel DevelopmentMaster Data & Data
Integration Management
EnterprisePerformance Management
Architect
DimensionsHierarchiesAttributes
Hyperion Profitability & Cost Management (HPCM)
Financial Reports, Smart View,Business Intelligence
Foundation
Model Execution
StagesDrivers
Driver SelsRules
Assignments
Standard Model
Detailed Model
Management Ledger Model
Calc CubeBSO
Rept CubeASO
CalcsRDBMS
Contr.ASO
DestinationASO
Calc/ReptASO
SourceASO
System Administration:
Create & Manage Dimensions & Hierarchies
Deploy the Application
Define Data Integrations from Source Systems
Manage User Security
Create & Manage the Business Model:
1. Define the Stages (Std Only)
2. Create a Model Point-Of-View (POV)
3. Create Rules (Std & Detailed)
1. Define the Drivers
2. Define Assignment Rules
3. Assign Drivers
4. Create Assignments
4. Create Management Ledger Rules
Execute a Model POV:
1. Load Cost/Revenue Data
2. Load Driver Metric Data
3. Validate Model Inputs
4. Execute Calculations
5. Trace Allocations & Validate Model Results
6. Publish the Model POV
Produce Management and Performance Reports:
Financial Results Books
Margin Analysis
Cost & Revenue Contribution Analysis
What-If Scenario Comparisons
Genealogy Reports
HPCM Module Comparison
Standard Profitability
Detailed Profitability
Management Ledger
BSO Application
ASO Application
Number of Stages 9 2Number of Dim Per Stage 3 2/25Driver Selection/Exception
Intrastage Allocations
Traceability Maps
Genealogy
Not available/ Not used
Available
Not relevant
51
Standard Profitability Workflow
Use cases
Driver Load
Calculation Scripts naming convention
System Reports
Appendix – Standard Model Details
52
Create and Manage Dimensions
Add custom Measures
Deploy the Application
Standard Profitability
Metadata Management
Allocation ModelDefinition
Cost & RevenueAllocation Calculations
Profitability & Cost Analysis
Create and Manage Business Models
1. Define the Stages
2. Define the Drivers
3. Assign Drivers
4. Define Assignment Rules
Load Cost, Revenue and Driver Data
Calculate Model & Store Results
5. Validate the Model
Transfer Calculation results to Reporting Cube
Analyze Genealogy and Traceability in Reporting Cube
Profitability Analysis
Stage Balancing report
Cost and Revenue Contribution Analysis
53
Costing for analytical purposes
Highly regulated costing scenarios
Used where detailed traceability and genealogy is required.
Advanced costing methodologies
Activity Based Costing
Aggregate level Profitability
Rare or simple Dimensional Change.
New models can easily be created based on existing models, if required.
Structured flow of data
Standard Profitability Use Cases
HPCM
Retail Banking• Indirect cost allocations• Shared services allocations• IT costs allocations
Insurance• Product cost allocation• Product Profitability• Legal Entity allocation• Shared services allocations
Investments
• Channels and Funds allocations
• Project allocations• Intercompany profitability
Telecommunications
• Products and services allocations• Segment profitability• IT costs allocations• Infrastructure and maintenance cost
allocation• Shared Service costing
Healthcare• Services Profitability• Overhead cost allocations• Transfer pricing
Higher Education• Indirect cost allocations• Performance funding• Cost of Degrees
54
Standard Profitability – Driver Load
Interface to upload drivers at required intersections.
Possibility to verify total driver data loaded for the source intersections vs target without any further effort.
55
Standard Profitability – Calculate the Model
String scriptName = scriptSuffix + POV ID+ Stage Order Nb + “_” + index;
No Concurrent Calculations: Concurrent Calculations:
Use Essbase logs in order to find out which point in the calculation process has been reached. Use the HPCM web logs in order to have a high view of where the process is.
Cache settings
Buffer settings
56
Standard Profitability – System Reports
System Reports can be launched by process in order to gather statistics or verify run times for a specific execution.
Covers run times per stage, number of assignments and assignment rules, start time and end time Dimension details and Genealogy paths list and run times for each path.
57
Standard Profitability – System Reports
58
Management Ledger Workflow
Use cases
Driver Data Entry
Model Validation
System Reports
Appendix – Management Ledger Details
59
Create and Manage Dimensions (EPMA or non-EPMA through Profitability application manager)
Deploy HPCM Essbase ASO database
Create POV member combinations
Management Ledger
Metadata Management
Allocation ModelDefinition Allocation Calculations
Profitability & Cost Analysis
1. Create and manage Rules
Define global context
Create Rule sets and set sequence of calculation
Define rule-based context where required
2. Define Model Views
Create Trace model views for traceability
3. Validate the model
4. Calculate the model
Specify to calculate all Rules, a rule set range or a single rule
5. Run rule balancing report
Run traceability reports
Create and manage queries for profitability and cost analysis
60
Management Ledger Use Cases
HPCM
Retail Banking• Indirect cost allocations• Operational Transfer pricing• IT costs allocations
Insurance• Product cost allocation• Product Profitability• Shared Service
chargebacks
Investments
• Channels and Funds allocations
• Project allocations• Intercompany profitability
Telecommunications
• Products and services allocations• Segment profitability• Infrastructure and maintenance cost
allocation
Healthcare• Services Profitability• Overhead cost allocations
Higher Education• Indirect cost allocations• Cost allocation at
student-level
Moderate/High Complexity
High Rate of Business Flexibility.
Management reporting.
Augment thin ledger efforts
Planning and HFM allocation support
Advanced costing methodologies
Can handle involved dimensional changes.
Aggregate level profitability
Dimensionality supports common management reporting uses and closely match HFM or General Ledger structure
Free form data flow
61
Management Ledger - Setup
62
Queries can be used for:
management reporting
segmented profitability analysis
rule analysisinput data verification
creating journals
Management Ledger- Driver Data Entry
63
Management Ledger- Model Validation
64
Management Ledger- System Reports
65
Detailed Profitability Workflow
Use cases
Detailed Profitability Application Setup
Driver Selection
Assignment Rules selection
Calculation Rules
Manage Calculation
Appendix – Detailed Model Details
66
Create and Manage Dimensions (EPMA or non-EPMA)
Register model data schema
Add custom Measures
Deploy Source, Contribution and Destination Essbase database for reporting purposes
Detailed Profitability
Metadata Management
Allocation ModelDefinition Allocation Calculations
Profitability & Cost Analysis
Create and Manage Business Models
1. Define the 2 Stages and select their corresponding tables
2. Define the Drivers
3. Assign Drivers to the Driver dimension for the Stage
4. Define calculation rules
Calculate Model
5. Validate the Model
6. Calculate model with contribution analysis
Profitability Analysis
Measure balancing report
Run pre-built reports
Design reports and save for future use within HPCM interface
67
Detailed Profitability Use Cases
HPCM
Broker Institutions• Cost allocations and profitability calculation at desk level/ Employee level
Insurance• Product cost allocation
where more than 3 dimensions /stage are required
Investments• Portfolio/ Account /
Client level profitability
Healthcare• Patient-level cost allocations
Retail• Customer and / or segment
profitability• Overhead cost allocation• Profitability by
location/store
Manufacturing, Distribution
• Product line profitability• Customer category\class\
tariff group cost allocations
Low Complexity
High Rate of Business Flexibility.
Bottom-up profitability computation
Highly detailed, granular dimensional cost and profit objects
Flexible regarding dimensional changes
First setup is time consuming hence not as quick to spin-off new model from an existing one
B2C customer, customer event, order , or transaction costing and profitability
68
Detailed Profitability - Setup
Model data schema is mandatory for Detailed Profitability applicationsThe product schema requires permissions on the Model data schema in order for the model to run. If permissions have not been set or they are not appropriate, you will not be able to select the Model data schema in the Preference tab.
Permissions for Product schema: CREATE TABLECREATE VIEWCREATE ANY SYNONYM DROP ANY SYNONYM.
69
Detailed Profitability – Driver Selection
The driver selection can be made only on the Source Stage
Default driver selection can be made at the top node and will be populated on all members that do not have a specific driver selected
70
Detailed Profitability – Assignment Rule Selection
71
Detailed Profitability – Calculation Rules
Pre and post custom calculation scripts can be set-up but. These must be written directly to the HPM_SQL_SCRIPT table by a user with DBA rights on the Product schema in the SCRIPT column.
Setting up custom scripts requires knowledge of SQL syntax as well as familiarity with the Detailed profitability business model.
update my_table set my_column =5/update your_table set your_column =6/begin execute my_proc end/
72
Detailed Profitability – Manage Calculation
Running the Model Calculation creates two views for use within Reports, which you can use tocreate custom reports:
HPMD_DEMO_STAGE_BALANCE_V—Contains the stage balance information viewed within the Stage Balance Report.
HPMD_DEMO_LEVEL_0_CONTRIB_V—Contains the contribution information for each source and destination combination at Level0.
73