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Oracle Financial Analytics with Oracle Essbase:

Complete Financial Reporting, Analysis and Modeling

Emir Musabašić Senior Sales Consultant

Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 4

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.

Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 5 Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 5

Enterprise Performance Management Requires Both

Categories of Financial Reporting

What is our performance?

• What are the top 10 markets? • What is the gap to forecast? • What customers are most

profitable? • What are revenues by product

compared to last year? • What are sales by product,

store and quarter? • What is the trend for

employee-related costs? • What is our open headcount?

How can we improve performance?

• How can we increase promotional lift by 10% in our major markets?

• What happens to our forecast if the dollar declines by 5% to the Euro?

• What happens to gross margin if our materials costs increase by 20%?

• Which customers drive 80% of our overall profitability?

• What happens to same store sales if inventory turns increase by 5%?

Historical & Situational Forward-looking


Organizations Use Different Questions for

Measuring Performance

Future Past

Forward-looking

Questions

Historical

Questions

Situational

Questions

Present


Legacy BI Technology Forces Organizations

to Multiple Disconnected Products

Ad-Hoc Query & Analysis

Standardized Reporting

Forward-looking

Questions

Historical

Questions

Situational

Questions

Modeling and Forecasting

•Expensive to Build and Maintain, Difficult to Respond to Change

•Spreadsheets Fill the Gaps


Hundreds of Spreadsheets Exist to Deliver

Forecasts and Models In The Organization

Executive Management

Finance HR Operations / Manufacturing

Sales & Marketing

• Workforce planning

• Impact analysis • Benefits models

• Customer & Store Profitability

• Demand Planning • Merchandise

Planning • Customer Sat

• Parts Management • Supply chain cost

optimization • Resource

Management • Warehouse

profitability

• Variance analysis • Project / initiative

funding models • Valuation • Risk Management

• Performance Reporting

• Forecasting


Spreadsheets Are A Poor Way to Do

Forecasting and Modeling

• Slow – takes too long, results obsolete

• Poor Quality – data reflects political bias or negotiations, not reflective of business

• Inconsistent – no centralized definition of formulae or reporting structure

• Expensive – many wasted resources, dubious benefits

• Inflexible – lack of responsiveness to changes

• Not Scalable – cannot support enough data or users

Analysts

Dept A Dept B Dept C

Senior Management



Oracle Business Intelligence

and Performance Management


Oracle Essbase

Oracle Financial Analytics

Organizations Need Solution To Link the Past,

Present and Future In An Integrated System

Ad-Hoc Query & Analysis

Standardized Reporting

Forward-looking Questions

Historical Questions

Situational Questions

Future Oriented Past Oriented

Modeling and Forecasting


A Common Analytic Foundation Delivers Historical, Situational, and Forward-looking Analysis

COMMON ANALYTIC FOUNDATION

OLTP & ODS Systems

Data Warehouse Data Mart

Oracle, Siebel, PeopleSoft JD Edwards, SAP, Custom

Excel XML

Business Process

OLAP

Financial Analytics

PERVASIVE INFORMATION ACCESS

Essbase


Oracle Financial Analytics and Oracle

Essbase Deliver the Best Financial Insight

• Single Enterprise Information Model

– Lowers cost by modeling once, minimizing data movement, and requiring less hardware

• Complete, Pre-built Analytic Application

– Improves performance by providing relevant & timely insights, aligning decision making, and reducing deployment time

• Forward-looking Analytics

– Lowers risk by enabling modeling of alternative scenarios and simplifying the forecasting and variance analysis process


Single Enterprise Information Model Integrates Relational and OLAP Technologies

• User Roles, Preferences

• Simplified View

• Logical SQL Interface

PRESENTATION LAYER

• Dimensions

• Hierarchies

• Measures

• Calculations

• Aggregation Rules

• Time Series

SEMANTIC OBJECT LAYER

PHYSICAL LAYER

• Map Physical Data

• Connections

• Schema

Role-Based Views of the Information Relevant to the User

Consistent Definition of Business Measures, Metrics, Calculations

Model Once, Deploy Everywhere

Across Any Data Sources


Pervasive Information Access One Platform, One Model, Multiple Delivery Channels

COMMON ANALYTIC FOUNDATION

OLTP & ODS Systems


Oracle, Siebel, PeopleSoft JD Edwards, SAP, Custom

Excel XML

Business Process

OLAP

• Forward-Looking Analytic Engine • Multi-user Write-back • Financial Intelligence • Enterprise Dimension Management

ERP ANALYTICS

CRM ANALYTICS

INDUSTRY ANALYTICS

Ad-hoc Analysis

Interactive Dashboards

Reporting & Publishing

Detect & Alert

Disconnected Analytics

Office Integration

PERVASIVE INFORMATION ACCESS

• Single Enterprise Information Model • Conformed Dimensions

• Federated Query • Intelligent Caching

STRATEGIC PLANNING

PLANNING & BUDGETING

FINANCIAL CLOSE

PROFITABILITY MANAGEMENT


Improve Performance with BI Applications Timely and Relevant Insights Across the Enterprise

Other Data Sources IVR, ACD, CTI

Hyperion MS Excel

Syndicated

Oracle BI Server

Common Enterprise Information Model

• Integrated, Pre-built Analytic

Applications Improve

Enterprise Performance:

• Provides relevant & timely

insights,

• Aligns decision-making

across all employees

• Reduces deployment time

• Powerful Integration with

ERP and CRM Enterprise

Applications

ERP Analytics Financials

Human Resources

Procurement & Spend

Supply Chain & Order Mgmt

Projects

CRM Analytics Sales

Service & Contact Center

Marketing

Loyalty

Price

Business Applications Warehouse

http://www.siebel.com/

http://www.peoplesoft.com/corp/en/public_index.jsp


Oracle Financial Analytics Powerful, Pre-built Analytic Application

Pre-mapped metadata, including embedded best practice calculations and metrics for financial, executives and other business users

A “best practice” library of over 410 pre-built metrics, 36 intelligent dashboards, 250+ reports and several alerts for CFO, Finance Controller, Financial Analyst, AR/AP Managers and Executives

Pre-built ETL to extract data from over 3,000 operational tables and load it into the DW, sourced from PeopleSoft, Oracle EBS, JD Edwards, and other sources

Pre-built warehouse with 16 star-schemas designed for analysis and reporting on financial analytics

• Presentation layer • Logical business

model • Physical sources

1 3

2 4

PeopleSoft

Oracle

EBS

JDE

Universal

Syndicated Oracle BI

Applications

Warehouse


Oracle Financial Analytics Comprehensive View of Financial Performance

General Ledger, Profitability & Budget Analytics

• Incorporates detail-level general ledger transactions and cash flow analysis across locations, customers, products, sales territories, distribution channels, and business units

• Identifies the customers and transactions that are providing maximum profits by product, location, department, and geographic detail.

• Single Budget Data Model to support: Oracle E-Business Suite, PeopleSoft Enterprise, JD Edwards EnterpriseOne.

Payables Analytics

• Provides visibility into payments due to suppliers and expense line detail so managers can manage cash outflows and control expenses. When combined with Procurement & Spend Analytics, it allows full procurement analysis from Requisition to Check

Receivables Analytics

• Monitors collections processes to show what customers buy and how they pay, enabling managers to identify overdue balances and other receivables bottlenecks. When combined with Sales Analytics and Supply Chain & Order Management Analytics, it enables more efficient management of the entire Lead to Cash process.


Manage Risk With Oracle Essbase Powerful, Forward-looking Analytic Engine

• Enables modeling of alternative scenarios to Forecast the Future

• Simplifies the Management Reporting with Powerful Variance Analysis

• How are we performing within the Context of the Plan?

• What’s Next? • Support for Long-term and

Strategic Decisions

• Leverages Oracle Financial Analytics Pre-built Business Applications Warehouse Files

Excel XML

OLTP & ODS Systems Data Warehouse

Data Mart

Business Applications Warehouse

Oracle Essbase


Essbase with Oracle Financial Analytics Creates New Information Without Spreadsheets

General Ledger,

Profitability & Budget

Analytics

Payables

Analytics

Receivables

Analytics

Essbase Can Add:

• Financial Models to measure cash flow implications or profitability as the business assumptions change.

• Cost and revenue allocation

calculations across multiple Dimensions, including Organizations, Customers, Products, Geography, Sales Channel, etc.

• Time-series intelligence to metrics: for example: 6-month moving average for DSO or Time-based changes in DSO by changing customer organizations.

• What-if scenario modeling, for example, if change payment terms, what will be impacts on DSO and how will that impact cash flow or implications on Billings, Booking & Backlog processes.



Oracle Essbase and Oracle BI

Suite Enterprise Edition

Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 22 Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 22

Files Excel XML

OLTP & ODS Systems Data Warehouse

Data Mart

+ Essbase

Ad hoc Analysis



Proactive Detection and Alerts

MS Office & Outlook


BI Server

Unified BI Foundation Bi-Directional Integration

Essbase as a Source


BI Server

Files Excel XML

OLTP & ODS Systems


Essbase

Essbase Studio

Essbase as a Target

Copyright © 2009, Oracle and/or its affiliates. All rights reserved. 23 23

• Unifies modeling of many sources – Structured relational – Unstructured relational – Flat files, XML files – EPM Architect Dimensions – OBIEE – OBI Applications

• Enables reuse at a granular level – Reuse of hierarchies, metrics, cube schemas

• Lineage tracking • Drill anywhere

– Relational – OBIEE, BI+ repository – URL, FDM – Essbase, Java method

Oracle Essbase Studio Single Design Environment


Extend Financial Analytics with Essbase Leverage Pre-built Metrics, Business Model and ETL


BI Server

OLTP & ODS

Systems


SAP, Oracle PeopleSoft, Siebel,

Custom Apps

Files Excel XML

Business Process

Ad hoc Analysis



Proactive Detection and Alerts

SmartView Office

Integration

BI Apps Data Warehouse

(BAW)

1. Utilizes pre-built Analytic BI Applications

2. Generates New Forward-looking Information in Essbase

3. Benefit from combined Essbase and BI Apps


Essbase

Essbase

Oracle BI Foundation


Pervasive Information Delivery

• Live, intuitive, personalized dashboards

• Immersive experience with limitless dashboard to

dashboard navigation

• Dynamic, event-driven guided analytics lead users

from insight to action


Ad Hoc Query

• Powerful ad-hoc analysis via 100% Web UI

• Create & modify charts, pivots and dashboards

• True business user self sufficiency via intuitive,

simplified business model

Financial Reporting

• Formatted financial statements

• Built-in financial intelligence

• XBRL support

MS Office Integration

• Excel, PowerPoint, Word, & Outlook

• Dynamic updates across applications

• Authoring and consumption


Microsoft Office Integration Secure, Single Version of Truth for Analysts

Works with Excel, Word, & PowerPoint


The Right Interface For All Consumers of

Financial Data Across the Organization

Line of Business (HR, Sales, Operations, etc.)

Finance: Transaction Processing Manager A/R, Manager A/P,

Accounting Manager

SmartView Office

Integration

Hyperion Financial Reporting

Finance: Accounting, Financial Analysis

Operational Reporting

Management Reporting


Ad Hoc Query

Ad Hoc Query



Demonstration



Conclusion


Oracle Financial Analytics and Oracle

Essbase Deliver the Best Financial Insight

• Single Enterprise Information Model

– Lowers cost by modeling once, minimizing data movement, and requiring less hardware

• Complete, Pre-built Analytic Application

– Improves performance by providing relevant & timely insights, aligning decision making, and reducing deployment time

• Forward-looking Analytics

– Lowers risk by enabling modeling of alternative scenarios and simplifying the forecasting and variance analysis process

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