the journey to world-classxa.yimg.com/kq/groups/19842802/1142812416/name/... · oracle hyperion...
TRANSCRIPT
The Journey to World-Class
Oracle Hyperion Consolidation and Reporting including
Drill back from HFM to EBS (ERPi) ERP Integrator (ERPi)
Mark Nichols – Director, EPM Solutions – Southwest Region and Hi-Tech
Ken Dowd – Director, EPM Strategy
Doug Hansen – VP, Sales
Page 2
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Introductions
What is ERPi?
Demonstration of ERPi
ERPi Implementation Approach
The Hackett Group
Questions
Agenda
Page 3
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
What is ERPi?Basics of ERPi….
ERP Integrator (ERPi) is a new component of FDM allowing users to…..
– streamline the integration of metadata and data from select ERP systems (PeopleSoft, Oracle
E-Business Suite (EBS)) into target Oracle EPM systems (such as HFM and Planning.)
– drill-through from HFM, Planning, Essbase, and Enterprise (6.5.1 or later) into select ERP
systems (PeopleSoft, Oracle EBS.)
– write-back data from target application to ERP system
ERPi available with FDM version 11.1.1.3 onward
ERPi works with the following source systems:
– PeopleSoft Enterprise Financial Management 9.0, 9.1
– Oracle eBusiness Suite 11.5.10CU2, 12.0.6, and 12.1.1
– PeopleSoft Human Capital Management 9.0, 9.1
– Future releases are expected to include integration functionality for additional ERP systems,
including JD Edwards and SAP
Page 4
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
What is ERPi?Process and Technology Benefits….
ERPi adapter is a ready built adapter removing the need for a
complicated ETL process
Ability to select specific ledger and organize pulls by business
units. For example, a French business segment could initiate their
own ERPi pull using FDM.
Governance benefit in that there are no text files being transferred
and no end-user interaction with source files (although audit files
can be generated if needed)
Leveraging Oracle’s world class FDM/ERPi technology the
Hackett Group is able to deploy ERPi data feeds to HFM,
Planning, Essbase (BSO), EPMA and CORPTAX
ERPi will also load metadata into EPMA
Additional integration points (SAP, JD Edwards, etc) are on the
product roadmap
Page 5
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
What is ERPi?High level process flows….
Page 6
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
ERPi
Drill Back
Hackett Integration Framework
Write-Back
Data /
Metadata
Page 7
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Demonstration of ERPiDrill back from HFM to Oracle EBS….
Page 8
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
ERPi Implementation Approach
Pre-Design
Design
Build
Test /Train
Deploy
• Identify number of ledgers
• Where is the customer sourcing information?
• Custom tables or direct source to EBS/SAP. Examples.
• Teams: customer EBS and Hackett Infrastructure
• Identify version compatibility
• Validate data integration strategy.
• Gather requirements
• Design logical data extract groupings
• Design frequency of extracts
• Design data mappings
• Design ERPi configuration settings.
• Create test, training and rollout strategy
• Build Proof of Concept
• Develop cut-over strategy
• Update and deliver design documentation
• Build Integrations
• EBS connections and ID’s from EBS,
• ERPi Metadata and Data Mapping Rules
• FDM import format
• FDM Mapping and Scripting (Must use formulas and concatenation of code)
• Scope well documented by application team and customer
• Initialize ERPi Source system to setup the Drill-back hooks. Source initialized once.
• Create 1 metadata rule per ledger and 1 data rule per metadata rule. Avoid too much
metadata management
• Unit test build components
• Migrate to test
• Build test scripts
• Conduct system Integration test
• Conduct user acceptance test
• Conduct performance test (determine during design phase if necessary)
• Train system administrator
• Train functional users
• Conduct formal knowledge transfer
• Migrate to production
• Roll out ERPi solution
• Production Support)
Page 9
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
What do I look like compared to
World Class Organizations and
peers?
What are the trends and best
practices to consider in the
marketplace?
What best practices should
I consider to be more
efficient and effective?
How can I continue to
measure efficiency and
effectiveness ongoing?
How do I utilize best practices
within my technology
implementation?
How do I successfully
implement and phase EPM
technology for the broadest
success?
Benchmarking
& Research
Technology
Implementation
Advisory & Transformation
Services
The Hackett Group”I want my Organization to be World Class in 24 months” – “I want proven Best Practices woven into this project”
Page 10
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
World-Class is defined as top quartile performance in both efficiency and effectiveness
EFFECTIVENESS
Operating profit volatility
Cost of capital
Days sales outstanding
Days payables outstanding
Days Inventory on-hand
Quality metrics
Accuracy of forecasts and
analysis
Functional role in strategic
decision making
Industry relative total excess
return
Percent of time analytic focus is
on proactive decision making
EFFICIENCY
Overall function cost as a %
of revenue
Process cost as a % of revenue
Technology cost per function FTE
Staffing levels by process
Cycle times and iterations
Unit cost of transactions
Utilization of self-service for
inquiry
Application complexity
Automation of transactions
Reliance on spreadsheets
Percent of business reports
distributed electronically
Hackett Value Grid™ (Finance Example)
Page 11
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
• While many organizations tout “best practices,” they are
typically founded on opinion of individual consultants and at
best standardized across an organization.
• Hackett Certified Best Practices are based on the empirical
data from over 3,500 Hackett benchmark studies and are
proven to correlate to higher levels of performance.
• By understanding how the world-class companies perform and
the common characteristics they share, Hackett develops
solutions that rest on a foundation of fact.
Hackett Certified Best Practices Have a Proven Correlation to Better Performance
Hackett’s Best Practice Intelligence CenterBased on empirical data from benchmarking studies
Page 12
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Forecasting
Cycle time Quick 5 days, tied to close and analysis
Time Horizon Rolling forecast – 6 quarters, or driven by business cycle
Frequency Quarterly and by material event
Forecast Info Over 20% operational info linked to operating plans
Outlook Forecast drives guidance
Forecasting Cost1st Quartile - 0.007 % of Revenue
Median - 0.040 % of Revenue
Reporting and Analysis
Architecture • 2 or less systems accessed
• Automated production data store
Delivery • Exception based reporting
• Standard reports are automatically generated & distributed
• Supported by a standard tool set
Information
Management
• Information consistently defined across the enterprise to
ensure comparability
Analysis Cost 1st Quartile - 0.009 % of Revenue, Median - 0.039 % of Revenue
Reporting 1st Quartile – 0.020% of Revenue, Median – 0.055% of Revenue
Planning & Budgeting
Cycle Time (annual
plan)
No more than 2 months
Process Iterations No more than 2-3 iterations
Standards Standard, streamlined process;
Standard definitions and rules
Process Linkage Strategic Plan drives economic
forecast and top-down targets
Line Items Less than 80 line items
Scenario Planning,
etc.
Significant use of scenario
planning
Integration Highly integrated systems
Planning Cost1st Quartile - 0.025% of Rev
Median - 0.051% of Revenue
What Characteristics do World-class EPM Companies exhibit?
Page 13
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Normally 20% to 50% improvement opportunity
HIGH
HIGHLOW 1Q 1D
World Class
EFFICIENCY
World Class
EFFECTIVENESS
1D
1Q
WORLD CLASS Business Function% Savings Between: Peer & World-
Class Efficiency
Finance 48% - 59%
HR 32% - 51%
IT 13% - 33%
Procurement 21% - 29%
Total Opportunity 25% - 42%
Balance Sheet Cash Opportunity
Receivables (DSO) 35% - 37%
Inventory (DIO) 46% - 51%
Payables (DPO) 13% - 19%
Total Working Capital (DWC) 31% - 57%
Why does World Class performance matter?
Page 14
© 2008 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Market Leading Technology Practice
Business Intelligence
Budgeting and Planning EPM Architects Consolidations Technology
Justin Gillespie Kathy Horton Jason Fitzgerald Kris Murphy Mark Wirth
Data Warehouse
Dashboarding /
ScorecardPlanning & Essbase
Strategic
Finance
Orchestrated Design Financial Management
Data Quality
Management
Balance Sheet -HPCM Multi Product
Expertise
Strategic Road
Mapping
EPM Environment
Design
Hardware
Sizing
Technical
Support
Sales & Marketing
Doug Hansen
Demand Generation
Sales Support /
Inside Sales
Account Management
Number of Oracle EPM Technology Consultants
25 40 5 45 13 8
Number of Oracle EPM Transformation Consultants
14 30 8 26 N/A 11
Number of Implementations
150 200 40 200 400 600
Scott McHale – Principal EPM Technology Practice