2. 2Copyright Š 2008, Oracle and / or its affiliates. All rights reserved. - Internal Use Only
Management Excellence: The Next Competitive Edge
Time
Competitive
Advantage
OPERATIONAL EXCELLENCE
MANAGEMENT EXCELLENCE
Cost â Lean and Mean
Quality â Six Sigma, TQM
Speed â Real-time, JIT
Cost â Lean and Mean
Quality â Six Sigma, TQM
Speed â Real-time, JIT
Smart â Deep Insight
Agile â Decisive Action
Aligned â Across the Enterprise
Smart â Deep Insight
Agile â Decisive Action
Aligned â Across the Enterprise
3. 3
Why Strive for Management Excellence?
Enterprise Performance
Management (EPM)
World-class EPM organizations
deliver 2.4 times the equity
market returns of industry-peer
companies1.0
2.40
Peer Group World-Class
Source: CFO Challenges and Opportunities in the Flat world, Hackett Group
4. 4
Few Management Systems are âExceptionalâ
How would you grade the relative maturity of your management
information environment in terms of its ability to readily provide relevant
analyses, decision making and management reporting information?
5. 5
Key EPM Capabilities
EXTERNAL REPORTING
INTEGRATED BUSINESS PLANNING
PROFITABILITY & COST MANAGEMENT
SCORECARDING, MONITORING & ANALYSIS
FINANCIAL & MGMT REPORTING
OLAP, DATA WAREHOUSE, DATA MINING
DATA INTEGRATION, APPLICATION MANAGEMENT & MASTER DATA MANAGEMENT
STRATEGIC & PREDICTIVE MODELING
BI TOOLS & BI APPLICATIONS, REAL-TIME MONITORING
World Class Close / Flex Reporting
World Class Forecast
6. 6
Performance Management Topology
Planning/Forecasting
⢠Business Unit Planning
⢠Actual, Plan, Forecast
⢠Gross Marging Planning
Oracle D/W
OBIEE Apps
Enterprise Data
Warehouse
Transaction
Systems
Oracle EBS, Siebel
Non- EBS
Transaction Systems
LR Planning & Modeling
⢠Strategic Planning
⢠Acquisition/Divestiture
Modeling
⢠Treasury Planning
Analytical Reporting
⢠Analytical Detail/Analysis
⢠OBI Pre-built Content
⢠Ad-hoc queries and
analysis
Profitability Analysis
⢠Customer Profitability
⢠Product Profitability
⢠Channel Profitability
⢠Segment Profitability
Workspace
MS Office
Integration
Search
Alerts
Mobile
Interactive
Dashboards
Desktop
Gadgets
Reporting and
Ad-hoc Analysis
Hyperion Planning
Integrated Oper Planning
Hyperion Planning
Integrated Oper Planning
Hyperion Strategic
Finance
Crystal Ball
Hyperion Strategic
Finance
Crystal Ball
Hyperion Profitability and
Cost Management
Hyperion Profitability and
Cost Management
Hyperion EssbaseHyperion Essbase
OBI ServerOBI Server
Master Data Management
⢠Maintain conforming
dimensions across all
information systems
⢠Alternate Hierarchies
⢠Customer Data Management
Master Data
Management Tools
Master Data
Management Tools
Financial Close Process
⢠Supports complex reporting
requirements -- GAAP, IFRS,
SEC, local statutory,
Sustainability Reporting (GRI).
⢠Automated controls with
complete audit trail
Hyperion Financial
Management
Hyperion Financial
Management
7. 7
Excellence in Industrial Mfg
Before
⢠12+ days to close
⢠Many analytical technologies
⢠Complex reporting and forecasting
processes
⢠Hours to create reports
After
⢠8 hours
⢠Global consolidation across 58
lines of business
⢠Global forecasting and reporting
solution for 1,000+ users
⢠Minutes to access information
The worldâs leading producer of primary aluminum with $31
billion in revenues with operations in 34 countries and 350
locations. Alcoa has over 97,000 employees.
Hinweis der Redaktion
To start, letâs provide you with an overview of Oracleâs EPM System.
For many years companies have been able to create competitive advantage from ERP standardization. Its purpose was to create excellent operational processes by focusing on:
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reducing cost inefficiencies
improving product and service quality
and increasing the speed of production and delivery.
Although efficiencies can still be gained, due to the widespread adoption of ERP the competitive advantage of operational excellence is beginning to decline.
Oracleâs vision is to build on this operational excellence and create the next wave of competitive differentiation â what we call âManagement Excellenceâ. This will allow you to create an organization that is:
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Smart â gain better insight than your competitors
Agile â adapt faster than competitors to market changes
Aligned â more effectively allocate your resources across the organization
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Last but least, according to Hackett, there is a strong financial business case for EPM to make. According to Hackett, world-class EPM organizations have a higher market returns than organizations that donât do EPM!
(although this is a powerful statement, if you think about it, it is hard to back up this claim, it suffers from what is called the Halo Effect. You go into a number of successful organizations and see if they have a few things that otherâs donât, to try and explain the success. Things are different are then seen as causes of success. Perhaps they are correlations, perhaps there are 3rd variable explaining both, you really donât know. So starting with EPM doesnât make you more successful in reality. The chance this is brought forward is relatively small, and the Hackett quote is rather valuable, so at least be prepared for the question).
Most organizations given enough time and heroics can provide âone-timeâ answersâŚVery few, less than 1% have ready on-going access to relevant information to improve performance
Only Oracle provides a complete set of solutions that covers all management processes, that is integrated on a common platform and is open to non-Oracle solutions.
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Complete means that you can use our solutions from the board room to the front-line. Solutions that support your strategic, operational and financial decisions. Solutions that provide you built-in best practices for every line of business and for your industry.
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Integrated means you will have solutions that share common installation, common calculations and reporting tools. Solutions that share data and metadata that make them easier to deploy and maintain. Solutions that are integrated with your operational ERP system so you can drill-down to transactional data.
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Open means your solution can access any data source from Oracle and non-Oracle systems. Open to many business applications including Oracle applications like EBS, JDE, PSFT and non-Oracle applications like SAP. Open on the infrastructure front including application servers, directory services, SOA suites etc. And open to different styles of analysis from pure relational to ROLAP to OLAP.
Oracle has bundled these capabilities into a single Enterprise Performance Management System or EPM System.
Letâs take a look at the key components of this system.
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Alcoaâs CFO sleeps at night as he has strong confidence in the numbers. Not only are they the first to report of the Dow Jones Industrial Average but they publish their earnings calendar 2 years in advance of their report.
Alcoa has reduced their close from 12-5 days. They have consolidated results across 58 lines of business. They utilize Essbase, our OLAP technology for a number of analytic applications including credit and collections analysis.
Alcoa standardized their forecasting process across all lines of business on Oracleâs Hyperion Planning.
