This exclusive Oracle EPM Conference provided tips on how to get the most out of your Hyperion investment and take your business to the next level of profitability through proven techniques and strategies. Edgewater Ranzal hosted a presentation entitled: ​Peak Profitability Across the Business: Understanding the Past and Planning for the Future.​

1. Business Analytics Solutions Provider Using Oracle EPM and BI Technologies
Better Profitability Analysis & Understanding with
Hyperion Profitability & Cost Management (HPCM)
Tom N. Gargas
Principal Solutions Architect

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Edgewater Ranzal is a full-service Oracle
Platinum Consulting Partner with premier services
in North America and regional offices in the
United Kingdom
We deliver Business Analytics solutions that
include Oracle Hyperion Enterprise Performance
Management (EPM) and Business Intelligence (BI)
Our multiproduct focus offers domain expertise and technical leadership using the
Oracle Hyperion Product Suite
We have industry expertise and specializations to help us deliver end-to-end solutions
for each client’s business needs
Who We Are

3. Our Services
Business Intelligence
• Scorecards & Dashboards; Mobile Delivery
• Prepackaged Analytic Applications (OBIA)
• BI Foundation (OBIEE / Essbase)
• Financial & Operational Analytics
• Reporting & Publishing
• Visual Exploration
• Information Discovery (Endeca)
Financial Close & Consolidations
• Legal, Segment, & Mgmt Reporting
• Financial Performance & Close
• Optimization & Performance Lab
• Tax Provisioning
• Regulatory Requirements
Data Integration Services
• ERP Integration
• Financial Data Management
• Data Warehousing
• MDM & DRM
• ETL Services and Automation
Infrastructure
• Hardware Sizing, Installation, & Configuration
• Exalytics Benchmarking
• System Monitoring, Backup, & Disaster Recovery
• Upgrade & Migrations
Advisory Services
• Project/Program Management &
Process Change
• EPM & BI Road Maps
Training & Support Services
• Standard & Custom Training
• Virtual Classroom
• Multimedia and UPK
• Service Level Agreements
• Managed Services & Hosting
• Performance Engineering
Enterprise Planning & Reporting
• Strategic Planning (HSF) & Modeling
• Planning, Budgeting & Forecasting
• Workforce, Capital, & Project
Financial Planning
• Public Sector Planning
• Cloud Services
Costing & Profitability Management
• HPCM Standard & Detail Models
• Waterfall Allocations
• Shared Service Charges
• Activity Based Costing
• Customer, Product, Segment & LOB
Profitability
3
Consolidation
& Reporting
Business
Intelligence
Enterprise
Planning &
Analytics
Infrastructure
Training &
Support Services
Advisory
Data
Services
Costing &
Profitability
Mgmt

4. Profitability Mgmt. Goal… Delivery of
Strategic P&Ls
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5. Profitability Challenge #1 -
Statutory Reports are not Timely or Detailed
Enough
Financial
transactions
Financial
Data
Consolidation
(GL or HFM)
Accumulator
Bottom-line
Results
Organizational P&L
5
What defines a profitable
customer?
What is the profit
contribution of a product
or a service?
What does it cost to sell
to or to service
customers?
What proportion of
resources does a specific
customer consume?
Why hasn’t increased
revenue resulted in
increased profitability?

6. Profitability Challenge #2 -
Indirect Cost Aren’t Assigned to Products,
Services & Customers
No Standard Process
Standard,
accepted
process
 Indirect Costs are tracked
against supply side
structures, not demand
side needs. This makes
measurement difficult
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7. Profitability Challenge #3 - Ensuring Consistent
Performance as Users, Data Volumes, & Frequency of
Use Increases
Sales/Product
Managers
Cost Center
Managers
LOB Execs.
Finance10’s
100’s
1000’s
1000’s
LOB/Functions
Segments/Entities
Departments
Products & Customers
User Counts Data
Volumes
Frequency
Of Use
100’s
1000’s
10K’s
1 MM’s
Qtrs
Monthly
Weekly
Daily
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8. Reporting & Analysis
Product P&L by Activity
Financial P&L
Operational
Data
Source
Data
Meaningful
Attributions &
Allocations
8
Profitability Management Solution Elements

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Profitability Management Solution Elements
Traditional Activity-Based
• Pro-Rata %, Even, etc.
• Simple, Fast, Inexpensive to operate
• Commonly used
• Does not accurately show cost causes
• Cost pools, organized by activity
• Comprehensive & Accurate
• Valuable Insight into Operation
• Costly to Implement & Operate
Actual Budget Forecast
Process
Cost
Allocation
Profit
Analysis

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Requirements for Costing & Profitability
Solutions
Flexibility
• Analyze different
chargeback approaches
to yield optimal mix of
services versus costs
incurred by the shared
service center.
• Rapidly evolve
methodologies as the
maturity model of the
shared service center
evolves.
Audit & Control
• Provide key stakeholders
confidence in the
numbers produced and
methodologies
employed to ensure
compliance.
Shared Methodology
• Define consistent
allocation and charge
back methodology across
all management cycles.
• Ensures consistent
comparisons when
reviewing and updating
methodology result and
planning for future
management cycles.
Transparency
• 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.
Organizations need information management solutions to address their challenges.
These challenges are driven by F-A-S-T!

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“A Day in the Life” using HPCM
Hi Jane. I’ve been analyzing my financial reports and have
some questions and ideas about the allocations to my lines
of business
• Process Review
• Traceability Map
• What-if Modelling
• Reporting
MEETING AGENDA
Corporate FP&A Allocations Specialist Business Unit Finance Manager
It would be my pleasure to explain the process to you John.
How about you we have a meeting to go over the details?

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Demonstration
Hyperion Profitability & Cost Management

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Shared Methodology, Audit & Control
Total
Department
Expenses
Activities
Products
Customers
MANUAL INPUT
OPERATIONAL SYSTEMS
GENERAL LEDGER
Drivers
Drivers
Financials
Structured & Repeatable Process

14. Transparency: Pre-Built Validation, Traceability
Stage Balancing
Trace Allocations
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15. Flexibility & Adaptability
Total Dept.
Expenses
Activities
Products
Customers
Total Dept.
Expenses
Activities
Products
Customers
Actual Model What-If Model
Version Comparison & Analysis
Copy Model
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16. Hyperion Profitability & Cost Management
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
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17. Client #1: Attributions & Allocations
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18. Client #1: Solution Architecture
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Attribution
Planning
HPCM
Cost Allocations
Budget Planning
Application
Driver Data
Hyperion Planning
Hyperion Profitability & Cost Management
Microsoft Excel
HPCM Stage
Management
Utility
Set POV Variables
Load
Costs
Load Driver
Metrics
Attribute
Data
Load
Pools
Update
Alloc
Rules
Run
AllocsValidatePublish

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Oracle Platinum Consulting Partner - 100% Focus on Oracle/Hyperion EPM & BI
• 175+ Full time EPM/BI Billable Consultants throughout the US, Canada and UK
EPM & BI Experience & Success
• 1,700+ Oracle EPM & BI projects successfully delivered across 850+ clients since 1996
Depth & Breadth of EPM & BI Service Offerings
• Product Experts across full EPM/BI Suite - Planning, HPCM, HFM, HSF, HPCM, Essbase, OBIEE, DRM, FDMEE
• Advisory Division for Visioning & Roadmaps, Full Life Cycle Implementations, Technical Assessments
Additional Value Added Service Offerings
• Exalytics – Installation, Configuration & Benchmarking Services
• Infrastructure Services – Design, Configuration, Performance Tuning & Upgrades
• Support Services – Remote Help Desk, Lev 1 Support, Patch release Support
• Training Services - Customized and Pre-Packaged EPM/BI Training Delivery
• Ranzal Oracle ACEs Across EPM/BI Platform (Planning/BI, HFM & FDMEE)
• Co-Development Efforts with Oracle Product Management
Customer Advisory Boards, Beta Testing, Certification Exam Development
Oracle has 100 live HPCM Customers, Ranzal implemented at 20 of the 100!
Ranzal Differentiators

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Any Questions?
Website: www.ranzal.com
Email: info@ranzal.com
Office: (914) 253-6600