Oracle’s Hyperion EPM Strategy - doag.org

1 1 Copyright 2012, oracle and/or its affiliates. All rights reserved. oracle s Hyperion EPM Strategy Andreea Vasiliu, PhD Director, Product Strategy , EMEA DOAG, May 9th, 11:15-12:00 2 Copyright 2012, oracle and/or its affiliates. All rights reserved. EPM INNOVATION 1981 First DOS-based financial consolidation & reporting 1980s 1990s 2000s 2010s 1989-90 Philip Morris bought the equivalent of Planning and are still a client today 2005 First Integrated EPM SYSTEM with common interface, common install, common components and shared services 2010 Integrated financial Close management and Disclosure management 1986 financial consolidation & reporting patented methodology (TOP) 1998 Started EPM market leadership trend (IDC) 2005 Information Age named Essbase one of the top 10 innovations of the decade next to Google and Blackberry 2012 Continuous innovation across the portfolio, expansion into industry solutions, mobile Unprecedented Business Analytics with Exalytics oracle : Leader in Enterprise Performance management In Gartner s Magic Quadrant as Leader since 2005, Leader in IDC s analysis since 1997 3 Copyright 2012, oracle and/or its affiliates.

2 All rights reserved. oracle Is #1 in Corporate Performance management Suites (CPM) Revenue Share for 2011 oracle is #1 in the worldwide CPM (Corporate Performance management ) Suites market segment with a percent share based on total software revenue, according to Gartner's recent "Market Share: All Software Markets, Worldwide 2011" report (*). oracle continued its leadership position in the CPM market category with a growth rate of percent in 2011, well above the industry average of percent. oracle Hyperion Performance management Applications are a modular suite of integrated applications that span planning, budgeting and forecasting, Strategy management , financial close and reporting, and profitability management . oracle Hyperion applications are part of oracle Business Analytics, the industry's most complete, integrated family of business analytics solutions, including more than 80 business intelligence and performance management applications, business intelligence foundational technology, advanced analytics and oracle Engineered Systems.

3 4 Copyright 2012, oracle and/or its affiliates. All rights reserved. Performance management , BI and Analytics #1 Business Priority Source: Gartner, Inc. CFOs Cite BI and CPM as Top Priorities: 2011 Gartner FEI Technology Study by John E. Van Decker, 20 May 2011. 5 Copyright 2012, oracle and/or its affiliates. All rights reserved. EPM is a Top Priority for Finance Executives 2011 Top Finance Initiatives 6 Copyright 2012, oracle and/or its affiliates. All rights reserved. oracle s Enterprise Performance management System Complete. Open. Integrated. OLTP & ODS Systems Data Warehouses Data Marts Packaged Applications ( oracle , SAP, Others) Excel XML/Office Business Processes OLAP Sources Exadata Unstructured & Semi-Structured ERP Analytics Planning & Forecasting financial Close & Reporting Strategy management Profitability management CRM Analytics Industry Analytics Data management Common Enterprise Information Model Advanced Analytics Dimension management Predictive Analytics Reports & Publishing Query & Analysis Detect & Alert Office Search Embedded Mobile Scorecards Interactive Dashboards Data Sources Business Analytics Platform Business Analytics Apps GRC / Risk Analytics 7 Copyright 2012, oracle and/or its affiliates.

4 All rights reserved. oracle Hyperion EPM Release Strategy : Extend oracle s Market Leadership Deliver EPM Value Faster, Reduce Cost of Ownership Report Faster with Improved Visibility, Reduced Risk Plan at the speed of business with Exalytics In-Memory Machine Drive best practices and improve planning accuracy with built-in predictive analytics Manage the financial performance of key projects with Project financial Planning Leverage fine-grained cost and profitability analytics for improved performance insights Plan at the Speed of Business, Improve Analytic Insights Streamline the close and reduce reporting risk with Account Reconciliation Manager Ensure compliance with regulatory requirements with pre-built starter kits Leverage unlimited dimensionality in financial consolidation to drive new internal and external reporting initiatives Deliver enterprise-wide visibility into performance with mobile delivery Accelerate EPM deployments with packaged modules and support for best practices Improve user productivity and collaboration with revamped Web user interfaces Leverage pre-built ERP integrations for faster time to value Accelerate finance transformation initiatives with integrated enterprise dimension management 8 Copyright 2012, oracle and/or its affiliates.

5 All rights reserved. oracle Hyperion EPM Release History Release Summary Hyperion EPM (2007) Hyperion EPM (July 2008 Aug 2009) Hyperion EPM (April 2010 April 2011) Hyperion EPM (Aug 2011) Hyperion EPM (April 2012) Extend Planning Across the Enterprise New Project financial Planning module Major Release of Hyperion Planning Compatible with Exalytics Extended predictive planning capabilities Hyperion Profitability and Cost management application micro-costing Streamline financial Close and Reporting New Account Reconciliation Application New financial management Analytics Configurable dimensionality HFM starter kits to address statutory compliance needs Deliver EPM Value Faster, Reduce TCO Enhanced User Experience (Web ) Enhanced Hyperion Data Relationship management module chart of accounts management Enhanced oracle Hyperion EPM integration with oracle Fusion Middleware Enhanced Integration with oracle E-Business Suite and PeopleSoft Financials and HCM 4th major release since acquisition 3 New Products 1200+ New Features and Customer-Driven Enhancements 9 Copyright 2012, oracle and/or its affiliates.

6 All rights reserved. 10 Copyright 2012, oracle and/or its affiliates. All rights reserved. PS2 Sales Enablement Project financial Planning Process Model strategic initiatives Propose & Plan Projects Rank & Fund Approve Monitor and Report Update & Forecast Forecast initiatives based on long-term financial models Set and approve Initiatives Quantify risk and uncertainty Propose and Plan projects Forecast future results Approve plans for selected projects Assess and Manage Risk Rank and decide funding on selected initiatives financial & subjective measures for scoring projects Monitor and report results against approved financial plans View the impact on financial statements from a Project or Entity Level 11 Copyright 2012, oracle and/or its affiliates. All rights reserved. oracle Hyperion Project financial Planning New Planning Module for Project financial management Functional Summary Pre-defined dimension members, forms, business rules, menus, task lists, smart lists, validation rules & project planning plan types Integrated Human & Capital Resource management Covers Contract, Capital, Indirect projects Applicable Across Industries Aerospace & Defense, Utilities, Oil & Gas, Construction, Natural Resources, Manufacturing, Retail IT/HR projects in any industry 12 Copyright 2012, oracle and/or its affiliates.

7 All rights reserved. Hyperion Project financial Planning Address the process disconnect between project management decisions and financial decisions Ensures that the what-if impact analysis and feedback loop from financial considerations for projects is instantaneous Calculate Project financial Impacts Capital, Contract and Indirect Projects Risk and Governance management for Projects 13 Copyright 2012, oracle and/or its affiliates. All rights reserved. Project financial Planning Seeded Components Copyright 2012, oracle and/or its affiliates. All rights reserved. 13 Task lists and tasks Dimension members Data forms Menus Business rules Smart lists Validation rules Essbase substitution variables User variables Predefined reports Out of box financial Reports Out of Box Template files to import/export data Note: Out of Box integration to oracle ERP Project systems is high priority in v2 Roadmap Sample Projects for IT 14 Copyright 2012, oracle and/or its affiliates.

8 All rights reserved. Plan at the Speed of Business, Improve Analytic Insights 15 Copyright 2012, oracle and/or its affiliates. All rights reserved. oracle Exalytics In-Memory Machine Key Enabling Technology for EPM Innovation Planning @Speed of Business Reduce planning cycle times with huge gains in response time Run more complex planning models with finer grained detail Bring more users into the planning process and improve accuracy LOB Planning with Essbase Extend beyond Finance into every LOB Scale to more users and run more complex planning models Improve agility move from monthly to intra-day analysis 16 Copyright 2012, oracle and/or its affiliates. All rights reserved. Planning with Exalytics Planning process maturity Move beyond Annual Budgeting Adoption of rolling forecasts and driver based planning for improved agility and forecast accuracy Planning maturity drives More users participating in planning process More complex calculations More interactive scenarios Need for significantly higher throughput Sweet spot for Exalytics No of users Model Complexity 17 Copyright 2012, oracle and/or its affiliates.

9 All rights reserved. Essbase Use Cases for LOB Planning Retail: Store Level Forecasting Telco: Churn & Product Affinity Utilities: Smart Meter Manufacturing Material Cost Modeling CPG: Economic Value Analysis Pharmaceutical: Clinical Trials financial Forecasting Sales Customer Analysis Supply Chain Inventory Optimization Finance Receivables Trending financial Services: Instrument Level Planning Human Capital Employee Productivity Marketing Loyalty Analysis Public Sector: Concurrency Internal Testing: Analysis on ASO Cubes 18 Copyright 2012, oracle and/or its affiliates. All rights reserved. Functional Summary Statistical prediction scenarios built into Hyperion Planning Uses oracle Crystal Ball Predictor to analyze historical data and project trends and patterns into the future Benefits Enable business users to leverage statistical forecasting techniques Improve accuracy of forecasts and plans Automatically forecast best and worst case scenarios in addition to base case Integrated Predictive Planning Capabilities Leverage Statistical Forecasting for Improved Accuracy 19 Copyright 2012, oracle and/or its affiliates.

10 All rights reserved. oracle Hyperion Project financial Planning Quantify Risk and Uncertainty Only 3 possible outcomes Limited view of risk What are most important risk factors? What are the odds I ll miss the target? Which outcome is most likely? Full range of outcomes Illustrate probability of outcomes Immediate visibility into inherent risk True risk analysis for financial models Conventional Single Point Scenarios Advanced Thinking in Ranges 20 Copyright 2012, oracle and/or its affiliates. All rights reserved. oracle Hyperion Strategic Finance and Smart View Align Strategic and financial Planning Functional Summary Hyperion Smart View for Office user interface for Hyperion Strategic Finance (HSF) Fully integrated, with all HSF features and standard reports available from Smart View Smart View functions & tool kits for custom reports Benefits Integrate and align strategic and financial planning Consistent user experience across entire planning process 21 Copyright 2012, oracle and/or its affiliates.