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Oracle HPCM Customer Story Fully Allocated P&Ls at MasterCard Worldwide Jonah Rufus William Business Leader –
Oracle HPCM Customer Story Fully Allocated P&Ls at MasterCard Worldwide
Oracle HPCM Customer Story
Fully Allocated P&Ls at MasterCard Worldwide

Jonah Rufus William Business Leader GBSC Systems

September, 2016

Oracle HPCM Customer Story Fully Allocated P&Ls at MasterCard Worldwide Jonah Rufus William Business Leader –

Presenter Bio

Business Leader | GBSC Systems Strategize, Implement and Sustain Hyperion and BI Platforms
Business Leader | GBSC Systems
Strategize, Implement and Sustain
Hyperion and BI Platforms

Education

Engineer Electrical & Electronics

MBA Systems and Marketing

17 Years in EPM & BI Space Consulting

Managing Financials Systems

Industry Experience

Technology

Retail

Finance

Education

Govt.

Implemented EPM/BI at

Mastercard

DoE Mass

SGI

Staples

AAFES

Activision

Hindustan Lever etc.

Worked at:

IBM Cognos as EPM Architect

Oracle Partner as Sr. Principal Consultant

Mastercard since 2006

Mastercard Customer Story Agenda

  • 1. Hyperion @ Mastercard

  • 2. Business Background & Challenges

  • 3. Solution Overview

  • 4. Business Benefits & Lessons Learned

  • 5. Future Plans

Hyperion @ Mastercard

Keep things simple and stretch the boundaries, go beyond the general use of Hyperion / BI.

Implementation Stabilization Expansion Renovation Stabilization | Expansion 2010 2015 2013 2016 2011 2014 2012 Allocated P&L
Implementation
Stabilization
Expansion
Renovation
Stabilization | Expansion
2010
2015
2013
2016
2011
2014
2012
Allocated P&L
Local
Hyperion
Revenue
StratPlan
Entity
D&A
Performance
Currency
Payroll
Upgrade
Mapping
Product
Tuning
Exposure
A&M Op
Plan - BI
P&L
Expense
FX
FTE
SPA - II
Fin - BI
Local
Expense
M&A
Currency
Mgmt. BI
Work Force
Commitment
Local Actual
Driver
Cur.
Budget
Neutral
Cash
Mgmt. Reporting
Lights Out
Customer
Revenue
Breakout
Flow
Attribute
Rev. Rec.
Automation
P&L
Application
Automation / Enhancement / Project
BI

Hyperion Stats

20

Hyperion Applications

  • 30

%

 

2015 Growth In Foot Print

  • 40

%

2014 Growth in Foot Print

14

Process Supported Globally across 12 business units

600

World Wide Users

1
1

Monthly Close

8
8

Workforce Planning

2
2

Strategic Planning

9
9

Monthly Customer P&L (COS)

3
3

Annual Budget

10
10

Quarterly Product P&L (PPL)

4
4

Quarterly Forecast

11
11

Local Currency Exposure

5
5

Monthly Payroll Process

12
12

Commitment Collection Process

6
6

M&A Reporting

13
13

Managerial P & L

7
7

Cash Flow

14
14

BI Updates

MasterCard Challenge

  • 1. Fully Loaded Country P&L

  • 2. Transparent Rules

  • 3. Sound and Simple Methodology

  • 4. Faster System

  • 5. Fit within Hyperion Framework

MasterCard Strategy

  • 1. Prototype in MS Access & Excel

  • 2. Obtain buy in from impacted business owners

  • 3. Assess solution fit with in Oracle Platform

  • 4. Develop Functional Pilot in Requirements & Design

  • 5. Implement & Rollout

  • 6. Build Future Roadmap

MasterCard Solution Overview

Guiding Principle: Tiered approach to attribute Revenue & Margin between Direct/Dedicated and Indirect/Overhead.

  • 1. Drivers Revenue Based or Metrics Based

  • 2. Actual from Oracle General Ledger

  • 3. M1: Revenues & Directly associated expenses no allocation

  • 4. M2: Dedicated expense mapped to country

  • 5. M3: Support expense allocated to country

  • 6. M4: Overhead expenses allocated to country

  • 7. Actual from Oracle GL gets allocated using the guiding principle

  • 8. Simple rule to produce Tiered P&Ls applied after allocation

  • 9. Validation reports are run to ensure data accuracy

10.Results published via Prebuilt FR or SmartView

Fully Allocated P&L

Variance Explanation Margin 1 Margin 2 Margin 3 Margin 4 8 © 2016 Mastercard. Proprietary and
Variance
Explanation
Margin 1
Margin 2
Margin 3
Margin 4
8
© 2016 Mastercard. Proprietary and Confidential

HPCM Model Architecture Stage Design

Stage 1 Financial Detail

Account* Cost Ctr Data Type Stage 2 – Fin. Pool Division* Geo Cost Pool Stage 3
Account*
Cost Ctr
Data Type
Stage 2 – Fin. Pool
Division*
Geo
Cost Pool
Stage 3 – Tier 1
Division*
Geo
Stage 4 – Tier 2
Division
Geo*
  • 1. HPCM allocates Costs & Revenue Pools through one or more stages in a top down capacity

  • 2. Stage Step in the allocation process that has similar pool characteristics

  • 3. Separate stages enable traceability.

Sum Account/CC to Cost Pool (Direct)

Tier 1 (Div) Allocs or Pass Thru (Direct)

Tier 2 (Geo) Allocs or Pass Thru (Direct)

1-3-4 Genealogy

1-3-4 Genealogy Allocation Results

Cost Ctr Account Data Type Division Geo Cost Pool Division Geo
Cost Ctr
Account
Data Type
Division
Geo
Cost Pool
Division
Geo

MasterCard Solution Highlights

  • 1. Planning App to stage, validate inputs and consume

  • 2. Relational model to contract and expand

data grain

  • 3. Front end to assign rules

  • 4. Prebuilt Tiered report

  • 5. Trace Screens

MasterCard Lessons Learned

  • 1. Trace Screens work at allocation grain

  • 2. Need a reporting solution to make end user

consumption easy

  • 3. HPCM is a maturing product

  • 4. Success or Failure depends on the partner’s experience – project completed on time and on budget

MasterCard HPCM Future Plans

  • 1. Explore use of Management Ledger

Movement of historical management restatements from the general ledger

Would require upgrade to 11.1.2.4

  • 2. Product & Customer Profitability migration

to HPCM

  • 3. Delivery of Dashboards to Business Users using OBIEE