Extending Financial Reporting out of Oracle Financials Using Hyperion Essbase George Cooper Hackett Technology Solutions Hackett Technology Solutions • Founded in April 1997 – Traded on NASDAQ as ANSR • World’s leading repository of enterprise best practices strategies and metrics – Benchmarking and Advisory Services – Business Transformation (HR, IT, Planning and Performance Measurement, Finance, Supply Chain ) • Over 700 professionals with 12+ years experience across more than 25 competencies • Consulting and system integration expertise with comprehensive skills in: – Oracle, SAP – Hyperion Hackett’s Oracle Practice – Certified Oracle Implementation Partner since 1995 – Completed over 350 Oracle and PeopleSoft implementations, upgrades and optimization projects – Implementing Oracle Solutions based — Highly skilled consultants on Hackett-Certified™ Practices — Large-scale Oracle 15 implementation experience 35% + — Average 7 years Oracle 10 35% 15 experience, 12 years business 5experience 25% 10 Average 12 years — 78% are Hackett-Certified 5% experience Advisors — Many of Oracle’s Leading Accounts Have Already Discovered the Benefits of the Answerthink / Hackett Group Approach YEARS OF EXPERIEN CE Hackett’s Hyperion Analytics Practice • Strategic and technical implementation consulting • #1 Hyperion Americas Reseller Award at Solutions 2006 and 2007 • Member of Hyperion Partner Advisory Council; Customer Advisory Boards and participant in the Partner Development Exchange • 400+ successful Hyperion projects, with well over 100 in 2006 and 50+ of those System 9 • 100+ resources dedicated exclusively to Hyperion • Scores of Hyperion-certified consultants, plus Preferred Partner Certification Hyperion Clients Agenda • • • • Hyperion Essbase Overview Essbase Technical Overview Typical Implementation Case Studies Hyperion Essbase Overview What is Essbase? • The leading enterprise multi-dimensional database engine • Provides real-time analytic infrastructure for business intelligence and enterprise performance management (EPM) applications. • Engineered for scalability, security, and rapid-response. • Through an intuitive interface, business users can manipulate large data sets to model complex scenarios, forecast outcomes, and perform “what-if” analyses to identify trends and optimize business results. Oracle Hyperion Essbase Datasheet What is Multi-Dimensional? • Uses a cube metaphor to describe data storage. • An Essbase database is considered a “cube”, with each cube axis representing a different dimension, or slice of the data (accounts, time, products, etc.) • All possible data intersections are available to the user at a click of the mouse. Multi-Dimensional vs. Relational • Multi-dimensional database are usually queried top-down – the user starts at the top and drills into dimensions of interest. – Can perform poorly for transactional queries Total Products P01 P02 P03 • Relational databases are usually queried bottom-up – the user selects the desired low level data and aggregates. – Harder to visualize data; can perform poorly for high-level queries P01 P02 P03 Total Products Why Use Essbase? • Rich User Experience – users “converse” with the data • Business and Finance can manage their own metadata and reports • Highly advanced calculation engine • Easy integration of data sources, including manual input • Large scalability • Robust, cell-level security • Many sophisticated reporting tools Rich User Experience • Sub-second response • Intuitive interface, especially with Microsoft Excel • Powerful adhoc analysis that allows users to query virtually any database intersection in seconds • Visually understand the relationships in the data • Easily built reports without IT involvement. Rich User Experience Excel Essbase Demo Business Metadata Management • Graphical administration console allows authorized administrators to “see” their data structures • Simple specification of alternate rollups for specialized reporting • Allows the application to evolve as quickly as the business Business Metadata Management Essbase Administrative Services (EAS) Demo Powerful Calculation Engine • Over 350 built-in functions, including: – Financial functions, such as net present value, rate of return, and compound growth – Custom multi-dimensional functions such as @ALLOCATE to drive data to multiple business intersections – Complete time-series support – Support for summary-level input • Both run-time and batch calculations • MDX support Integration of Data Sources • Unique multi-user read/write technology • Information from many data sources can be easily integrated into one database, and thus one set of user queries • In particular, allows budgets and forecasts to be fully integrated with actuals Technical Overview Data Storage • Multi-dimensional, with own proprietary storage • Two primary data storages: – Block Storage Option (BSO) – Record-based storage; supports write-back and features the batch calculation engine. – Aggregate Storage Option (ASO) – Cellbased storage; supports fast aggregation with a large number of dimensions. Block Storage Aggregations In general, all members combinations are calculated during an aggregation – Can be optimized for faster performance – Allows complete control of calculations ASO Storage Aggregations Engine decides which level intersections should be calculated to minimized retrieval time – Specific aggregations can be specified to optimize particular queries Smaller Agg. Size Larger Agg. Size Scalability • BSO databases generally are impractical with more than five or six hierarchical dimensions, depending on the number of members, depth of hierarchies and structure of the data • ASO databases have no set limit on number of dimensions – 20+ dimensions are possible • Both storage types support: – Hundreds of thousands of outline members – Attribute dimensions, which are based on a one-to-many relationship with the base members of another dimension • No additional storage or calculation time is needed for Attribute dimensions in BSO – Drill-through to relational detail Partitions • Partitions are dimension slices that are shared between Essbase database – Replicated – The data is physically transferred between the source and target cubes – Transparent – The data in the source cube is queried at retrieval time • Process is seamless to the user – all data appears to be in the target cube • ASO and BSO databases can be linked together with a transparent partitions Typical Implementation Partnership with Oracle GL • Users typically use Essbase for: – – – – – – – – – – Historical and forecasted performance Budget variances Variance and profitability analysis Performance trends Profitability metrics and Foreign Exchange impact Generally any query using non-transactional data Viewing individual transactions Auditing GL entries External reporting Generally any query that needs transaction data • Users typically use Oracle Reports for: Typical Support Model • IT supports core functionality: – – – – Servers and software installation Daily extracts and loads from Oracle Financials and other data sources Core calculation scripts and database dimensionality Essbase automation • Central Administration supports: – Security – Primary hierarchies and metrics • Line Finance or Business supports: – Most report development – Alternate hierarchies for specialized reports – Budget and forecast input and review Basic Implementation Hyp Planning Forms Excel Templates Manual Forecast & Budget Input Oracle Financials Hierarchy Metadata Other Data Sources Actual Balances by Month / GL Segment Text Files Essbase Essbas e Admin Service s Finalized Budgets Adhoc Excel Queries Excel Reports Dashboards & Production Reports Oracle Upload Implementation with Master Data Mgmt Hyp Planning Forms Excel Templates Manual Forecast & Budget Input Oracle Financials Other Data Sources Actual Balances by Month / GL Segment Text Files Master Data Mgmt (MDM) Essbase Essbas e Admin Service s Finalized Budgets Adhoc Excel Queries Excel Reports Dashboards & Production Reports Oracle Upload Case Study #1 Budgeting and Forecasting for a Large Retail Company Problem Build a budgeting and forecasting model that can support the needs of the individual brands while minimizing both IT support and the technical expertise required by the Finance administrators Challenges • Separate applications could provide the flexibility required by the individual brands but would increase development time and ongoing technical support • Reporting requirements are significantly different in each brand • A single application would reduce technical support but negatively impact planning flexibility and possibly reduce performance and reliability • The primary business hierarchies must stay in sync with all brands • Planning administration in each brand must require a minimum of training since turn-over is relatively high in the finance groups • A combined corporate view of actuals, budgets and forecasts must be supported Solution • Have separate physical Essbase databases for each brand while having a commonly maintained outline, calculation scripts, automation procedures and Excel utilities – Keeps each brand’s data physically separate to reduce performance risk while increasing security – Central outline and core functionality reduces maintenance, increases reliability and minimizes training for each brand administrator – Central maintenance of core hierarchies and metrics keeps one version of the truth • Include functionality in the database to allow any account to either have direct input or be calculated as a percentage of a selected driver (revenue, headcount, etc.) – Allows the brands to decide how each account is calculated Solution (cont) • Task each brand administrator with building their own reports, input templates and alternate hierarchies – Gives each brand the flexibility to internally report their business in the manner their management desires to see it – Brands can share reports and templates where appropriate • Build a central administration console to automate common administrative functions – Calculating input data, maintaining scenarios and controlling the budget process in a single, easy to use interface • Build a separate corporate database with a replicated partition to the individual brand databases – Supports a combined view of the corporation Architecture Oracle Financials Hierarchy Metadata Actual Balances by Month / GL Segment Central Essbas e Outline Essbas e Admin Service s Common Automation Outline and Data Updates Replicated Partition Brand A Essbas e Excel Templates Brand B Essbas e Brand C Essbas e Corp Essbas e Manual Forecast & Budget Input Case Study #2 Budgeting and Forecasting for a Large Trade Show Management Company Problem Build a budgeting and forecasting model that can support very detailed forecasts and budgets while providing quick and transparent access to all data Challenges – Large number of business dimensions potentially increase database size and calculation time – Planners are spread over a wide geographic area with little technical expertise – A very large number of individual projects need to be forecasted Solution – Use Hyperion Planning as the overall planning engine • Web-based planning input • Finance administrator can easily define forms • Little training needed for budget / forecast input – Keep current data in the Planning BSO database but move actuals and historical plans into a separate ASO database • BSO database allows write-back for maintaining the current information • ASO database allows fast loading and aggregation times for the much larger volume of historical and actual data – Optional: Link the two database via a transparent partition to give the users one view of the data Architecture Oracle Financials Hierarchy Metadata Actual Balances by Month / GL Segment Hyperion Planning Hyperion Planning Admin Console Current Essbas e Level0 Export Hyperion Planning Web Forms ASO History Essbas e Excel Reports Architecture (Alternative #1) Oracle Financials Hierarchy Metadata Actual Balances by Month / GL Segment Hyperion Planning Hyperion Planning Admin Console Level0 Export BSO Input Essbas e Hyperion Planning Web Forms ASO Report Essbas e Excel Reports Architecture (Alternative #2) Oracle Financials Hierarchy Metadata Actual Balances by Month / GL Segment Hyperion Planning Hyperion Planning Admin Console ASO Actual / History Essbase Transparent Partition Planning Essbase Hyperion Planning Web Forms Excel Reports Case Study #3 ERP Reporting at a Large Semiconductor Company Problem Build a suite of reports from various ERP modules during a new Oracle implementation under a very aggressive time frame Challenges – Development time frame was short and business involvement constrained during the ERP implementation – Users required the flexibility to design and build reports and dashboards over time but see the data immediately at go-live – Some modules (such as quality assurance) had a large volume of data and a large number of dimensions – Data had to be refreshed nightly Solution – Build separate Essbase databases for each ERP module with the dimensionality and level of detail necessary to manage the business – Task the business and finance staff to develop their reporting through Excel SmartView – For each application combine a BSO Essbase database for core calculations and an ASO Essbase database for user reporting • Supports a large number of dimensions and extremely large data volumes – Develop formatted reports in Hyperion Financial Reports and Hyperion Web Analysis where appropriate – Use Hyperion System9 Interactive Reporting for transaction-level reports Architecture Oracle ERP Hierarchy Metadata Text Extracts Excel Reports BSO Level 0 Essbas e Calculations Level0 Export ASO Report Essbas e Dashboards & Production Reports Contact Information Michael Cook Director of Business Development Phone – 415.435.0344 Mcook@thehackettgroup.com George Cooper Manager, BI Northern California Practice Phone – 510.290.9538 gcooper@thehackettgroup.com
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