How to Save 30% on Your General Ledger Redesign/Upgrade
- 1. Greg Briscoe Director, Governance and MDM Delivery, US-Analytics How to Save 30% on Your General Ledger Redesign/Upgrade with DRM Oracle Data Relationship Management & Governance 4.26.16
- 2. 2 AGENDA Introductions1 What Drives Finance Transformations?2 Understanding DRM and a Better Way to Manage Transformation 3 Key Takeaways and Next Steps4
- 3. 3 Director of Governance & Master Data Management Sales & Services Meet Greg Has been working with Oracle products since 1990 — the past 13 years have been focused on Oracle Data Relationship Management (previously with Razza Solutions, and Hyperion) More than 30 years experience in finance and developing business technologies Experienced in project, program, and quality management for implementation delivery and software development Successfully managed multiple projects with budgets in excess of $70 million Has been involved in all aspects of consulting — as a Director of Oracle Consulting’s Hyperion and BI data integration team for over 5 years, Greg provided support for Engagement Management, Solution Design, Project Management, and Services Sales
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- 5. ABOUTUS-ANALYTICS Managed Services Upgrades & Migrations Implementations Infrastructure Process & Advisory Services Big Data Data Governance Business Intelligence Financial Close & Consolidation Planning & Forecasting Solutions Data IntegrationTraining Accolades – Original Oracle Hyperion and Pillar Partner – Oracle Hyperion Financial Management 11 – Oracle Hyperion Planning 11 – Oracle Essbase 11 – Oracle Data Relationship Management 112013, 2014, 2015 2015 Oracle TOLA EPM Partner of the Year
- 6. 6 US-Analytics helps hundreds of the nation’s largest and brightest companies bridge the gap between business goals and IT deliverables.
- 7. 7 AGENDA 1 What Drives Finance Transformations?2 Understanding DRM and a Better Way to Manage Transformation 3 Key Takeaways and Next Steps4 Introductions
- 8. 8 ERP Upgrades, Redesigns, M&A, Consolidations, Divestitures, Restructures… Financial Transformation & ERP Support Business Transformation & Alignment Enterprise Performance Management • Chart of accounts mgmt • GL consolidation / reduction • GL migration / upgrades • EBS / PSFT / Fusion co- existence • Consolidation hierarchies • Account mappings • Corporate (B2B customer) hierarchies • Salesperson / territory hierarchies • Employee / role hierarchies • Supplier hierarchies • Business taxonomies • Planning hierarchies • Consolidation hierarchies • Management & financial reporting hierarchies • Profitability structures
- 9. 9 Benefits of Using DRM for Finance Transformations • 20-45% lower IT costs synchronizing changes • 25-55% lower costs for business owners maintaining manual spreadsheets Cost Savings • Eliminate duplication of effort • Provide common interface to global customers • Enable global sourcing relationships • Build foundation for shared services Common Processes • Eliminate duplicate controls • Minimize manual effort • Run what-if scenarios to negotiate changes • Reduce controls testing and audit costs Better Governance, Risk & Compliance 9
- 10. 10 We Can Save With DRM Achieve quicker time to value if you upgrade with chart of account migration utility Significantly reduce implementation costs with functionality to validate new structures before applying Save on travel and setup for training costs with packaged and personalized training tool Drastically lower the time and cost to document all upgrade changes with a self- documenting utility
- 11. 11 10Q/K Filings XBRL Filings Product Analytics Financial Management Reporting GM Plan/Forecast Revenue Plan/Forecast Strategic Planning Treasury Management Sarbanes-Oxley ERP upgrades, redesigns, M&A, consolidation, and divestitures have a HUGE impact on the enterprise. Not a relative thing! General Accounting IFRS Reporting GAPP/Local Statutory Tax Reporting Intercompany Financial KPIs Financial Analysis Capital Planning Workforce Planning Financial Change Management
- 12. 12 It pays to be world-class: significantly lower total cost of finance as a % of revenue Enterprise Data Quality
- 13. 13 Impact of Data Quality on Reporting “Only 30% of BI/DW implementations fully succeed. The top two reasons for failure? Budget constraints and data quality.” - Gartner “More than 50 percent of data warehouse projects will have limited acceptance, or will be outright failures, as a result of a lack of attention to data quality issues.” - Gartner “It does not really matter how good your management sponsorship or your business-driven motivation is. If you do not have the data, or the data does not have sufficient quality, any EPM/BI implementation will fail.” - Kimball
- 14. 14 AGENDA 1 What Drives Finance Transformations?2 Understanding DRM and a Better Way to Manage Transformation 3 Key Takeaways and Next Steps4 Introductions
- 15. 15 Most Typical Uses DRM: Enterprise Transformation Enabler DRM for Enterprise Performance Management BI/Management & financial reporting hierarchies, profitability structures DRM for Financial Transformation & Alignment Chart of accounts mgmt., GL consolidation / reduction GL migration / upgrades EBS / PSFT / multiple-Ledger/ERP co-existence, consolidation hierarchies, account mappings DRM for Business Transformation & Organization Alignment Corporate (B2B Customer) hierarchies, salesperson / territory hierarchies, employee / role hierarchies, supplier hierarchies, product/brand hierarchies DRM for Reference Data Management Business taxonomies, value sets, types & codes, standards, mappings, etc.
- 16. 16 Save Time, Avoid Excel (!), and Improve Quality & Governance Projects & Transformation Major projects & transformations Chart of account consolidation / restructuring Planning, budgeting, and other “what if” scenarios Finance transformation initiatives Systems upgrades and platform migrations / roll-out Product rationalization Organizational restructuring Mergers & acquisitions & divestitures Staffing efficiencies Simplify hierarchy change process in a multi-user environment Eliminate use of multiple spreadsheets Spreadsheets are inefficient: Single-user with limited security Hold only a static snapshot of the original data By contrast, DRM provides: Multi-user environment with complete audit trails Query, compare and blend functionality to identify similarities, differences, homonyms, etc. Inter- and intra-hierarchy mappings Validations for complex code blocks Merger activity can be some stormy weather
- 17. 17 Legacy ERP EBS r11 Example: ERP Upgrade Accelerate Transformation EBS r12 Oracle DRM • Load • Compare • Blend • Validate • Delegate • Remediate
- 18. 18 DRM Unique Features • Load and analyze multiple versions of source hierarchies • Compare hierarchies side-by-side • Multi-user, secure environment, with complete audit trails DRM Benefits • “Future state” hierarchies can always be compared against earlier “current states” to identify evolving changes • Collaborative environment to support re-orgs, finance transformations, M&A activity… Analyze & Align Multiple Versions of Dimensions Accelerate Transformation with DRM
- 19. Managing Routine Change “Single version of the truth” with DRM • Change hierarchies once, in one location • Eliminate parallel maintenance processes • Reduce risk of keyboard errors & misinterpretations • Increase consistency through the use of automation • Align enterprise dimensions across systems/platforms • Enforce business rules with consistency • Maintain mappings with referential integrity • Complete change tracking & roll-back • Generate different subsets, levels and attribution for each target systems whilst retaining alignment • Simplify maintenance of alternate roll-up structures (eg. ‘Legal’ vs. ‘Functional’ reporting) Leveraging a “Single Version of the Truth” for dimensions Staffing efficiencies Reduced headcount for routine maintenance Efficiencies increase as ‘Center of Excellence’ for enterprise dimension management matures Simplified audit of critical hierarchy changes Simplify financial close cycles Remove hierarchy maintenance from critical path Reduce risk of delays to close cycle Reduce risk of reconciliation errors Managing change with spreadsheets? ….a hopeless search
- 20. 20 Typical Change Management Process YTD Revenue $13,169,129 YTD Revenue $13,160,016 YTD Revenue $12,120,023 Consolidation (HFM) PeopleSoft EUPeopleSoft US EBS R12 SAP OBIEEPlanning IT Admin Offshore SAP Team OBIEE DBA EPM Admin “Err - what happened?” “I want to change an account … how do I do that?” YTD Revenue $13,986,256 YTD Revenue $11,998,587 YTD Revenue $12,876,248 YTD Revenue $13,169,889
- 21. 21 Stimulus for Change May Come from Anywhere
- 23. 23 Consolidation (HFM) JD Edwards With Oracle Data Relationship Management PeopleSoft US EBS r12 SAP OBIEEPlanning Oracle DRM Immediate feedback from governance process “I want to change an account … I’ll submit a change request via DRM” Change request validated
- 24. 24 Most Common Needs for Enterprise Data Governance 1 - Manage Routine Change Eliminate parallel maintenance Align dimensions across all domains Enforce business rules Maintain complex mappings Simplify close cycles Reduce reconciliation risk Create, manage & align alternate reporting hierarchies 2 - Accelerate Transformation Accelerate mergers & acquisitions Simplify & reduce risk for system upgrades & deployment Catalyst for organization & finance transformation initiatives Simplify chart of accounts transformation/redesign Align “what if” planning & budget models 3 - Reduce Risk Enforce consistent governance processes & workflows (DRG) Assure compliance with business rules Simplify regulatory compliance (e.g. Sarbanes-Oxley) Enhance cross-domain dimension management maturity
- 25. 25 Reporting Attributes Come From Many Sources and in Many Flavors Hierarchies Reference DataGolden Record • Geographies, Currencies • Categories, Codes • Types, Lookups • Standards, Nomenclatures • Business Taxonomies • Corporate/Org Hierarchies • Product/Brand Hierarchies • Chart of Accounts • Rollup Reporting Structures • Approval Hierarchies • Multi-dimensional Structures • Customer, Contact • Product, Item • Vendor, Vendor Contact • Asset: Land, Equipment • Financial Account, Legal Entity
- 26. 26 What Everyone Wants Improved business process efficiency Increased business user productivity Improved confidence in reports and analytics Reduced cost of compliance with clear traceability Better risk management, transparency and control Support for growth, and enterprise transformation
- 27. 27 People and Processes First What is Data Governance? Govern Collaborate, Commit, and Comply Master Analyze Model, Master, and Manage Measure, Monitor, and Mitigate “Data governance encompasses the people, processes, and information technology required to create a consistent and proper handling of an organization's data across the business enterprise.” Wikipedia
- 28. 28 How You Can Apply Data Governance Across the Enterprise with Oracle DRM Dimension Management for Trustworthy Business Analytics Enterprise Hierarchy Management for Operational Effectiveness & Change Control Reference Data Management for Application Alignment Chart of Accounts Mastering for Speedy Consolidation, Close & Reporting Data Governance for Policy Enforcement & Compliance
- 29. 29 AGENDA 1 What Drives Finance Transformations?2 Understanding DRM and a Better Way to Manage Transformation 3 Key Takeaways and Next Steps4 Introductions
- 30. 30 DRM from the Top
- 31. 31 Office of Finance • Alignment across multiple GLs / reporting • Finance transformation or CoA redesign • Mergers, acquisitions, divestitures • G/L migration • Shorter close cycles 31 Analytics • Aligning disparate source hierarchies • Accelerate deployment of new dimensions • Define consistent profitability models • DRM adds value for non-Oracle platforms Non-Financial Reference Data • Complex product hierarchy management • Geo, sales territories, retail locations… • Codes sets & mappings (e.g. Healthcare IC9/10…) • May have overlap with other MDM products Governance • Governance is the new “hot topic” • Careful: no good definition of ‘data governance’ • DRM (with DRG) is foundational for enterprise data governance • Add-on opportunity for existing customers Typical Value for DRM Customers
- 32. 32 Transparency, Visibility, and Collaborative Co-creation DRM Value Drivers Collaborative Prototyping Iterative Deployment On-going Governance • Provide CoA design teams a collaborative, rapid prototyping environment that eliminates spreadsheet silos and sequential processing • Simplify CoA redesign through side-by-side comparison and analysis of current and future states • Lower cost of synthesis and integration through increased productivity of highly-paid team resources • Promote reuse of account segments to eliminate redundancy • Detect changes in source systems to automate periodic comparison and analysis • Easy process to collect, combine and deploy a new chart of accounts in a test environment • Capture and manage completeness of mappings can be managed and automated • Proactively manage against data decay with a streamlined comparison, analysis and change process • Support a rapid ‘what-if’ prototyping methodology with change control • Protect CoA design investment from proliferation of unnecessary or redundant account segments • Protect the integrity of financial coding rules • Ensure that your ledger aligns with consolidation and planning objectives • Support multiple perspectives (e.g. IFRS, Japan GAAP, alternate forecasts) • Govern changes via change request approval workflows, granular security and role-based access control
- 33. 33 DRM Integration with the Cloud Public or Private Cloud On-Premises (Or, Managed Cloud) Oracle Data Relationship Management Integrated to Support Hybrid Deployments: Manage hierarchies and attributes across both on-premises & cloud applications Features: Manage ChartFields, and People Trees, hierarchy relationships & attributes; export to PeopleSoft on-premises or cloud Planning & Budgeting Cloud Service Multiple Planning Applications SalesForce.com EPRCS DRM enables hybrid cloud coexistence to align dimensions between on- premises & cloud- based solutions DRM Managed Cloud is available today. 14+ live customers.
- 34. 34 DRM Supports Oracle PBCS Packaged Integration with PBCS/Planning Classic • Fully governed dimensions across Planning applications across on-premises and cloud deployments • Metadata consistency and secure access to dimensions, hierarchies, & planning metadata • Accelerate Planning application migration to or coexistence with the Oracle Public Cloud Import/Export Enhancements • Directly import/export dimension files from and to PBCS and Hyperion Planning Classic into DRM • Simplify incremental updates from source systems by creating hierarchies from orphan member lists during import CLOUD STRATEGY
- 35. 35 All your information — available when you need it, where you need it. DRM Supports a Flexible Integration Framework • Governance Services • Governance and human workflow • Complete end-to-end auditability • Point to Point Integrations • Flat-files, Database Tables, XML • Java / SOAP / C++ / BPEL / BPM • ELT/ETL Tools • Real Time Events • Configure business process monitoring, data quality checks across applications • Cloud Support • Adaptable and flexible to simplify the complex problem of business integration; public APIs for standards based integration with third-party apps • Internet Browser Support • Bulk change support via spreadsheet Governance Services Public APIs Direct Integrations Maximizing Inter-operability With DRM Real Time EventsCloud Applications
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- 37. 37 Oracle DRM – Key Takeaways One Location for Data Governance ▶ Single source of truth for hierarchies, relationships, maps, attributes, reference data management ▶ Built for business users & technologists ▶ Governance enforced via easy-to-configure workflows Foundational and Flexible ▶ Synchronize change across the entire enterprise ▶ Reduce manual reconciliation & "rogue" hierarchy management ▶ Manage alternate hierarchies, what-if scenarios ▶ Easily update configuration as business needs change Rapid Deployment and Accelerator ▶ Configuration based – not coded solution ▶ Rollout hierarchies, re-orgs, etc., much quicker DRM on Oracle.com DRG on Oracle.com DRM Blog Flash Demo Gartner: DRM Customer Experiences Podcast, featuring Doug Cosby Customer Story: National Australia Bank DRM Flash Demo DRM datasheet DRG datasheet Customer Story: Stora Enso Customer Story: Anglo American Copper Video: Netapp To learn more, go to…
- 38. 38 COMPANY OVERVIEW • Major oil field services company focused on enabling oil & gas drilling, formation evaluation, completion and production. • With 8 divisions worldwide, Baker Hughes operates in over 90 countries CHALLENGES/OPPORTUNITIES • Lack of transparency between ERP, consolidation and analytic solutions • Each division managed their solution autonomously which created a number of control issues for Baker Hughes corporate RESULTS • EPM solution implemented across 8 world wide divisions for more than 1,400 users • DRM used as a management tool to drive consistency and accuracy of 200,000+ members & related hierarchies (e.g., Top customers & product lines) • Distributed control over alternate aggregation structures at regional & global levels drives divisional & corporate financial consolidation and reporting • Simplifies SOX compliance to ensure transparency in change management tasks SOLUTION • Hyperion Data Relationship Management • Hyperion Financial Management • Hyperion Essbase SYSTEMS LANDSCAPE • SAP contributes cost centers, accounts, products, customers, entities/organizations • Reporting & planning members created in DRM Management & Financial Reporting Managing hierarchies to create regional, divisional & consolidated reports
- 39. 39 Case Study: MetLife Client Organization MetLife Global Footprint MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe, the Middle East and Africa. Results MetLife utilized Oracle’s Data Relationship Management Tool (DRM) to help facilitate the effort. The Finance team used DRM to develop the mappings used to merge the Alico Chart of Accounts, Product, and Organizational Hierarchies to their MetLife equivalents. This effort was done to create the finance team a way to orchestrate and manage the mapping work and alleviate the need for massive Excel spreadsheets. Compliance and Control: Audit tracking of all structure and reporting attribute changes to track who changed what-when. Version control and version rollback to any point in time. Customizable business rules to enforce validations, corporate policy and constraints of their Hyperion systems. Business Challenge The Management and Accounting teams needed to quickly merge the acquired American Life Insurance “Alico” financial data into MetLife’s Hyperion Financial Reporting Systems. Project Details Cleansed and loaded CoA’s, Product, and Organization Hierarchies from MetLife and Alico into the DRM application Developed the best mapping approach to help the acquisition team Documented the mapping strategy and capture the process (UPK) for user training. Provided DRM end-user training related to the functions necessary to maintain and develop the mapping effort.
- 40. 40 Industry Standard and Widely Deployed Over 1,500 Customers Globally! PUBLIC SECTOR LIFE SCIENCES AND HEALTHCARE RETAIL HIGH TECHNOLOGYMANUFACTURING & DISTRIBUTION COMMUNICATIONS MEDIA & UTILITIES FINANCIAL SERVICES
- 41. 41 Q&A
- 42. 42 Schedule a custom demo for your organization Review cost proposals, a high-level implementation timeline, and how to make DRM work in your organization What’s Next? Greg Briscoe Vice President DRM/MDM Service Delivery Mobile: 512-771-2370 gbriscoe@us-analytics.com www.us-analytics.com Contact
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