executive briefing on oracle’s epm strategy and roadmap

Enterprise Performance Management Executive Briefing

Matt Bradley SVP, Product Development, Oracle

October 26, 2015

Presented with

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

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.

3


EPM Today Reasonable adoption within Finance at larger organizations

Spreadsheets still dominate outside Finance

Low EPM adoption by mid-size divisions & organizations

Cloud is a key enabler of broader EPM adoption

Hybrid on-premise & cloud deployments pose new challenges

Alignment across LOB, divisional and corporate EPM efforts is a priority

4


EPM for every function, not just Finance

Easy adoption and Rapid value

Flexibility across On-premise & Cloud

What Organizations Need….

5


Oracle’s Vision EPM for Every Need

6

EXECUTIVE BRIEFING

Oracle’s EPM Strategy and Roadmap EPM Perspectives and Trends

October 26, 2015

8 © 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 380984

WITH YOU TODAY

Morris Treadway Global FM and EPM Lead

KPMG Management Consulting

[email protected]

Sanjay Sehgal Principal, EPM

KPMG Management Consulting

[email protected]



AGENDA

Not permissible for KPMG audit clients and their affiliates

1 EPM Strategic Perspectives and Transformation

2 EPM Emerging Trends and Themes

3 Value of EPM enabled by Oracle



KPMG’s global Oracle capabilities span Tax, Audit, and Advisory

2,000+

Oracle

Professionals

KPMG global Oracle network by the numbers

Oracle

Enabled

We deliver EPM focused on

people, process and

technology:

■ Strategy driven

■ Industry focused

■ Technology enabled

■ Deep financial acumen

including Risk and Tax

■ People & Change

■ Strategy & Operations

■ Data & Analytics

■ Strategic Alliances

KPMG International*

$23B

In Revenue

155 Countries

162,000

Professionals

8,600 Partners

700+ Offices

1,000+

EPM

Professionals

300+

Oracle EPM/BI

Professionals

We serve clients across

the following areas:

■ Audit

■ Tax

■ Advisory

* KPMG International (KPMG) is a global network of professional firms

providing audit, tax, and advisory services.



EPM underpins today’s business strategic priorities

ENHANCE CUSTOMER

EXPERIENCE

OPTIMIZE EARNINGS AND CASH

MANAGE RISK

GROW THE BUSINESS

ACHIEVE OPERATIONAL EXCELLENCE

MANAGE REGULATORY COMPLEXITY

In a fast-moving business and regulatory

environment, a holistic EPM solution enables

you to dynamically manage execution of

the business strategy and performance—

empowering you to act decisively on what

matters most to your organization anytime,

anywhere.

Business-led,

Technology enabled



Rethinking the concept and scope of EPM is critical

In today’s competitive environment, EPM must be business-led and results-oriented to help ensure the

value of EPM is sustained across the organization.

EPM is an

organizational

discipline and capability

to dynamically drive

performance

improvement of a

business and the

delivery of its strategy

Dynamic measurement and management

of goals and performance

Aligned behaviors and actions with

strategic objectives

Improved business insight and

decision making

Integrated business and financial planning

across all functions and domains

Business-led,

Technology enabled



When done right, EPM delivers…

FORWARD-LOOKING MINDSET

► Provides capability to anticipate and

predict impact to business outcomes

► Helps enable scenario (what if) analysis

based on key drivers, events, and

relationships

► Integrates with Sales and Operational

Planning including demand forecasting

FINANCE OPTIMIZATION

► Helps enable Finance to become a more

dynamic business partner across the

enterprise

► Improves speed, relevance, and access of

performance reporting and analysis

(insight)

► Improves Integrated Business and

Financial Planning alignment and value

with common KPIs, metrics, driver-based

analysis, and predictive capabilities

MANAGEMENT ENABLEMENT

► Addresses Management’s questions that

cannot be answered today

► Integrates data and information to

address key questions

► Improves speed and access (mobility) to

information

► Provides improved visualization,

exception analysis, and analytic

capabilities

Value is realized through the execution of plans, and decisions, or actions that impact enterprise performance

(e.g., pricing, product and customer strategies, channel optimization, cost reduction, production and inventory planning, etc.)

A strategic mindset focused on the user experience and cultural aspects is needed to truly realize sustainable value



The CFO’s greatest opportunity is performance/growth

KPMG and Forbes Insights:

The View from the Top: CEOs see a powerful future for the CFO.

Are CFOs ready for the challenge?

Where do you see the CFO’s greatest opportunity to contribute to or

impact the value of the organization?

58% Performance/Growth

12% Governance

10% Control

11% Efficiency/Value

9% Innovation

12%

10%

11%

9%

58%

Data and analytics will

increasingly drive strategy

and profits Applying financial data to achieve

profitable growth is the greatest

strategic value a CFO can bring

to an organization, say 85% of

the CEOs of top-performing

organizations.

“CFOs need to be

more well-rounded,

multidiscipline leaders

with a strong line of

thinking around

business growth and

shareholder returns.”

—Tiak Koon Loh

CEO of Pactera

Source: 2015 KPMG Global CEO Survey, “The View from the Top”



If CFOs want to become CEOs, they will have to strengthen their leadership

skills, broaden their focus—most importantly– overcome their lack of

experience outside of finance

Sample of Key Findings

CEOs have set a high bar for CFOs Sixty percent of the surveyed CEOs from high-performing

organizations believe that the CFO's role will increase in

significance over the next three years.

60%

IMPORTANCE

OF CFO ROLE

Technology will be a make-or-

break for CFOs Sixty-three percent of CEOs from high-performing

organizations believe that technology will have the greatest

effect on the future role of the CFO.

63%

EFFECT OF

TECHNOLOGY

CEOs value growth-oriented

initiatives Big-picture thinking and a strategic approach are the most

important attributes for a CFO, say 49 percent.

49%

FOCUS ON

GROWTH

CFOs need to approach the

regulatory burden as an opportunity CEOs named the regulatory environment as the external factor

that will most influence the future role of the CFO; 61% see

regulation as an opportunity to derive competitive advantage.

61%

REGULATION AS

OPPORTUNITY




Key EPM Trends

1

4

2

5

3

EPM is a CEO-level issue

that impacts the entire

organization and can help

propel a company to a new

level, resulting in a

competitive advantage.

EPM is not simply a Finance

activity nor just a technology

initiative.

Clouds in the Forecast

serious for SaaS

Data & Analytics

get predictive

User Experience

age of the consumer

Changing Workforce

targeting talent/millennial impact

Collaboration

integrate and improve



Cloud-enabled Finance Transformation

ALIGNS BUSINESS

FUNCTIONS

HIGHER

CERTAINTY OF

OUTCOME

LOWER

RISK ACCELERATED

IMPLEMENTATION

SERVICE

DELIVERY OPTIONS

GOVERNANCE

MODEL

DATA AND

REPORTING

MODEL

PRE-CONFIGURED

APPLICATION

ACCELERATED

DELIVERY MODEL

FOCUS ON

BUSINESS

VALUE

INTEGRATED

SERVICES

FULLY

INTEGRATED ON

THE CLOUD

INDUSTRY

INSIGHT

WHAT ARE THE

BENEFITS?

HOW IS IT DIFFERENT?

WHAT IS IT? OPTIMIZED

PROCESS

ROLE

DEFINITIONS

LOWER

COST

KPMG Powered Enterprise



Making Data Tangible – Energizing the user to take action

KPMG MOBILE PERFORMANCE TRACKING

IMPROVED VISUALIZATION WITH THE RIGHT

ACCESS…

Web and mobile

solutions for

customers and

internal employees

Understanding the

problem/opportunity

and translating it into

pixels on glass

Agile, yet disciplined,

methodology for

design, development,

and deployment

Supporting business

outcomes by driving

new behaviors via

digital systems



Realized through an IBP Center of Excellence (COE)

Collaboration is Critical

Integrated Business Planning (IBP) aligns strategic planning, finance, supply chain, sales,

marketing and product development into a unified planning operating model to make proactive

business tradeoff and improvement decisions.

By achieving three primary objectives:

Integrate strategic, finance, sales,

product and operations planning

activities.

INTEGRATE

PLANNING

ACTIVITIES

Increase shared understanding of

key business drivers.

Optimize business decisions for

improved financial and operational

performance.

UNDERSTAND

KEY BUSINESS

DRIVERS

IMPROVE

BUSINESS

DECISIONS

Strategy Finance Marketing Product Dev Sales Supply Chain



Millennials have a greater impact

$$$

25% of the buying

group population and

over 19% consumption

$1.1

Trillion

Student Loan Debt

78%

prefer to spend

on experiences over things

Delaying

household

formation

2 Million

more are living with their

parents (2007 versus 2013)

25% of the population

American

millennials >80M

percent of

workforce 2014

50%

36%

2020

By 2025, millennials will

account for 46% of the

buying group population and

over 41% consumption

(~$2.9 Trillion)



Sustainable EPM: Managing Talent in this “New” World

Nearly all CEOs say that nothing is more important than attracting and retaining top-notch

finance talent, but many also believe their CFOs lack effective people skills. Clearly, most CEOs

believe their CFOs can and should do a better job of managing talent.

CFOs are lacking on people skills

The survey revealed that 97% of CEOs say that talent management is the

most or equally important factor in improving the finance function, yet only

33% give their CFOs a passing grade in talent management.

97%

IMPORTANCE OF

TALENT MANAGEMENT

33%

GOOD JOB AT

TALENT

“The traditional career

path of starting in a

transactional role and

progressing through the

ranks no longer works.”

—Mark Spears Global Head of People & Change

and Global HR COE Leader

CHALLENGES:

• Attracting and developing talent in the new

millennial world

• Cultivating and retaining talent with the right

analytic and digital skills

• Improving business knowledge of the staff to

partner with operations




Triggers: Why companies buy EPM solutions

Agility

Continuous disruption

requires dynamic

business strategies

and operating models

that drive profitability

4 3

5

1

2 Insight

Critical to have the

data, intelligence,

skills and

empowerment to act on information

Outdated and inflexible.

76% of CFOs surveyed

view the migration of

Finance systems to the

Cloud as a near-term

objective (within the

next 18 months)1

Efficiency

Manual / spreadsheet

based processes that lack

‘one version of the truth’

and collaboration across functional areas

Regulation

Increasing County and

Industry regulatory

complexity, including new

data privacy and security regulations

Legacy

Systems

1 Source: KPMG International’s Global Cloud survey: the implementation challenge



ASSESS THE RESULTS

Analytics (descriptive and predictive) and root

cause analysis beyond standard financial

data, including marketing, sales, procurement,

and other functional areas

Use of data scientists to identify new

analysis techniques, mine data, and report

insights

REPORT THE BUSINESS

Dynamic cross-functional reporting

connecting financial results to operational

drivers

Delivered via smart and mobile devices

Graphical and interactive with self-service

capability

PLAN THE BUSINESS

Integrated business planning linking overall

business strategy, sales, operations, finance,

and resource allocation

Forward-looking forecasts beyond the

current fiscal year

Driver-based planning with correlation and

cause-effect analysis

Moving beyond Finance with integrated leading practices and

technologies addresses these needs

KPMG’s EPM FRAMEWORK

4

ARTICULATE THE STRATEGY

Analysis and insights as inputs into business

strategy development

A global set of connected, common and

cascading performance measures

Clearly defined linkage among strategy,

plan, forecast, and actuals across functions

ADDRESS THE GAPS

Sophisticated scenario analysis utilized to identify actions and plans to address gaps between the

plan versus actual that optimize enterprise performance

Corrective action modelling and adjusting strategies, plans, forecasts, and actions

3

2

5

1



Technology is rapidly changing the EPM landscape

New entrants/changes in technology platforms are rapidly lowering the total cost

of ownership.

Disruptive technologies are forcing a change in the philosophy around how EPM can

be enabled.

Technology capability (e.g. in-memory processing) is providing analytical capability not

seen before.

Companies are increasingly investing in technology as infrastructure becomes more robust and

cheaper.

Big data is providing organizations with the opportunity to understand its customers/ competitors

more rapidly and thus seek out competitive advantage or respond to the market rapidly.

Applications are becoming easier to configure/manage.

Cloud-enabled EPM services are providing structured upgrade paths around the

applications, which is helping to avoid costly point-in-time major upgrades. Oracle BI Foundation

Common Administration Services

Strategy

Management

Financial

Close and

Reporting

Planning

and

Forecasting

Profitability

Management

Oracle’s EPM Cloud with

proven Hyperion EPM

applications helps to enable

these needs


Oracle’s Vision EPM for Every Need

25


How Do We Get There?

EMPOWER EVERY FUNCTION WITH EPM

ENABLE ADOPTION AND VALUE WITH CLOUD

PROVIDE FLEXIBLE CHOICES: ON-PREMISES & CLOUD

26

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

Empower Every Function with EPM

27


Fact-Based Planning and Informed Decision Making

Every Function Needs EPM

SALES MARKETING HUMAN RESOURCES

OPERATIONS SERVICE

Revenue Planning Territory Planning Compensation Planning Sales Performance Reports

Promotions Planning Media Mix Planning Product Lifecycle Planning Marketing Briefs

Workforce Planning Payroll Planning Position-based Budgeting HR Briefing Books

Demand Planning Sales & Operations Planning Product Profitability Analysis Operations Review Reports

Call Center Planning Resource Planning Service Revenue Planning Service Performance Reports

28


Develop agile planning processes in every function and respond effectively to business change

Connect and align operational planning processes with financial planning

Create a culture of fact-based planning across the entire organization

New Planning Imperative Fact-based Planning, Aligned Across the Enterprise

29


Combine System-of-record Data with Rich Narrative Text to capture the full story

Tap into the wisdom across the entire organization through secure collaboration

Address the needs of Management Reporting and External Disclosures

New Reporting Imperative Narrative Reporting for Informed Decisions in Every Function

30


Targeted Innovations to Address Every Need

Enabling EPM for Every Function

Pervasive Access • Simple, Intuitive,

Interactive

• EPM on every device

Cross-functional Alignment • Agile, Configurable,

Extensible • Collaboration

Interactive Response • Instant calculations and

aggregation

• Speed-of-thought scenarios

Proven Scalability • Granular data and models

• 1000’s of users

31


Sales Planning Demonstration

32


Enable Adoption and Value with Cloud

33


Customers See the Benefits of Cloud

Source: Oracle 2015 Top Trends Research

34


Oracle Planning and Budgeting Cloud Service

Planning in the Cloud. Simple. Fast. Proven.

First-in-Class Functionality

Flexible Deployment

Fast Adoption

35


Easy Adoption. Rapid Value.

Best-in-class Planning: Any Industry. Any Size.

Built on over 15 years of Product Innovation

Launched: February 14, 2014

Clients across industries

Financial Services, Higher Ed, Consumer Goods, Retail, Services, High Tech, Public Sector

700+ Customers to date

50000+ End Users and growing!

Available and Supported Globally 24 X 7 X 365

36

Oracle Applications: Current Release and Roadmap Oracle EPM Cloud

Planning and Budgeting • Enhanced user experience: Enhanced

interactivity, Excel type grid capabilities, Built-in reports

• Operational planning related enhancements: Instant calculations & aggregations, Enhanced sandboxing, Excel like formulas, Valid combinations etc.

• REST web service for external integration • IP white/black listing

Enterprise Performance Reporting • PowerPoint Report Packages • Web Viewer enhancements and publishing

formats • Smart View Home Panel

Planning and Budgeting • Customizable navigation by roles, Write-back

enabled dashboards, Attributes as a separate dimension, Advanced member function support

• Web based FR Studio & new charting engine • Action framework using Groovy scripting

• New Cloud Service: Enterprise Planning and Budgeting Includes pre-built planning modules:

• Workforce Planning, Capital Asset Planning, Project Financial Planning, Financial Statement Planning: Revenue, Expense, Balance Sheet, Cash Flow

Enterprise Performance Reporting • Supplemental Doclets, Embedded Excel

support, Version Compare, Variables

New Cloud Service: Account Reconciliation

• Address the global reconciliation process with complete lifecycle support including:

• Verifications, tracking of assignments, managing preparation and review, minimizing risk and optimizing the process

New Cloud Service: Essbase • Essbase platform for custom analytic

applications

Planning and Budgeting • Driver based predictive planning, Long range

planning models & goal seek, Forecast simulation & optimization

Enterprise Performance Reporting • Enhanced collaboration & workflow, New

tools for management reporting

Account Reconciliation • Enhanced filtering, Saved views,

Conversations

New Cloud Service: Financial Consolidation and Close

• Core Management and Legal Entity consolidation functionality

• Standard intercompany eliminations, currency translations and FX adjustment calculations

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

• Built-in task orchestration for close process management

• Flexible, robust user owned reporting

Essbase Cloud Service • Scenario Management and Sandboxing • Data source integration with DBaaS, Query

access from BICS and DVCS, API access for external applications

• Database design templates

Current Release October 2015

Current Release +1

Current Release +2

Planning and Budgeting • Certified REST integration for external

adapters • Enhanced integration with Oracle cloud

services: OSN, Documents, Big Data

Enterprise Performance Reporting • Regulatory Reporting framework: taxonomy

mgmt., tagging, validation, and filing • Enhanced dimensional analysis

Account Reconciliation • Transaction Matching

Financial Consolidation and Close • Statutory Reporting with complex

intercompany eliminations and ownership • Flexible user-defined calculations & currency • Custom intercompany matching report with

automatic journal adjustment

Essbase Cloud Service • Support for remote partitions

New Cloud Services • Profitability and Cost Management

Cloud Service • Tax Provision and Reporting Cloud

Service • Dimension Management Cloud

Service

Future Directions Post 12 month planning cycle

The above 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 Corporation.

10/20/2015 Restricted to event use only. Copyright © 2015 Oracle and/or its affiliates. All rights reserved


Enterprise Planning and Budgeting Best-in-class Functionality, Rapid Deployment Demonstration

38


On-Premises & Cloud: Your Choice


On-premises or Cloud: One Size Does Not Fit All

Business Unit 2 Detailed Planning

EPM On-Premise Applications

Corporate Forecasting

Corporate Expense Planning

Financial Consolidation

Business Unit 1 Financial Planning

Narrative Reporting Performance Briefs

Corporate FP&A Planning App

Divisional Planning app #1


Corporate FP&A Planning App



40

Oracle Applications: Current Release and Roadmap EPM Applications: On-premise

Hyperion Planning • Spreadsheet like Interactivity with larger data sets • Member on the fly • Predictive planning enhancements

Hyperion Financial Management • HFM on Exalytics (Solaris and Linux) • Significant performance improvements • Simplified Deployment architecture • Optimized user interface

FDMEE • Data sync between EPM apps, Migration utility from FDM

FCM • Prebuilt reports for ARM and CM, Custom Report writer,

Supplemental data collection

Hyperion Tax Provision • Smart View-based Maintenance Wizard, Statutory Balance Sheet

Approach (IFRS), Current tax Payable Analysis, Country-by-Country template, Loss/Credit Automation

Data Relationship Management • PBCS integration, DRG enhancements, DRG mobile approvals

Profitability & Cost Management • New Ledger model type for expanded coverage of management

reporting, Parallel calculation improvements for performance • Operational Transfer Pricing solution

Release 11.1.2.4

Hyperion Planning • Enhanced user experience: User Interface enhancements, Valid

Combinations, Excel Type Grid capabilities • Sandboxing, Excel based grids with formula and formats, Write

back enabled dashboards, Integrated Real Time Reporting, Advanced member function support

Hyperion Financial Management • Insights and Rules Profiling, Web based metadata editor, Copy

Application Utility • Enhanced visualizations: Forms /Grids as charts • Smart View based Journal module

FDMEE • Hybrid deployments, Universal data adapter, DRM integration

FCM • Archiving , Updated rules configuration, Cloud migrations utility

Hyperion Tax Provision • Mergers & Acquisitions, Valuation Allowance Automation, FIN48

Set of Books, additional reports

Data Relationship Management • DRM Analytics: pre-built dashboards and reports • Integrations: Financials Cloud, EPBCS, FDMEE

Profitability & Cost Management • Built-in analytics, FCM integration, Performance enhancements

Financial Reporting • Web based FR Studio & new charting engine

What’s Next 0-12 month planning cycle

Hyperion Planning • Enhanced User Experience: Build from scratch dashboards,

Charts and conditional formats from Excel • Predict model drivers, Web based predictive planning, Forecast

Simulation and Optimization, Models built from user’s Excel templates

Hyperion Financial Management • Real time consolidations • Expanded impact analysis for Journals • Archiving of audit tables • Updated intercompany and journal reporting

FDMEE • Cloud to cloud integrations, Support for all new EPM cloud apps,

Loading text & security for cloud apps

FCM • Transaction matching

Hyperion Tax Provision • Upgrade automation enhancements, Apportionment calculation

Data Relationship Management • Integrations: FCCS, BICS • DRM Analytics: additional reports & dashboards

EPM Common Infrastructure • Adoption of FMW 12c, including platform certifications • EPM common repository simplification

Future Directions Post 12 month planning cycle

The above 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 Corporation.

10/20/2015 Restricted to event use only. Copyright © 2015 Oracle and/or its affiliates. All rights reserved


Hyperion Financial Management: Innovation Continues Demonstration

42


Cloud & On-premise: Provide Flexible Choices

Innovation and Investments across Cloud and On-premise

Allow customers to adopt EPM Cloud at their own pace

Provide consistency and portability to enable flexible deployment choices

43


Key EPM Sessions

Session ID Title When Location

CON9530 Oracle EPM in the Cloud: Strategy and Roadmap

Tues, 10/27 @ 5:15pm Moscone West -3018

CON9531 Oracle EPM On Premises and Cloud: Taking a Hybrid Approach

Wed, 10/28 @ 4:15pm Moscone West -3018

CON9529 New: Oracle Planning and Budgeting Cloud Service Enterprise Edition

Wed, 10/28 @ 11am Moscone West - 3018

CON7031 What’s New and What’s Coming: Financial Close in the Cloud

Wed, 10/28 @ 11am Moscone West - 3020

CON9513 What’s New & What’s Coming: Oracle Hyperion Financial Close Suite

Wed, 10/28 @ 12:15pm Moscone West - 3020

CON9525 Upgrading to Oracle Hyperion Enterprise Performance Management 11.1.2.4

Thurs, 10/29 @ 12:00pm Moscone West - 3018