A Deep Dive into HPCM for Planning and Essbase Professionals

Mike Killeen, Sr. VP of Technology & Strategy

Oracle Open World 2015UGF9979

A Deep Dive into HPCM for Planning and Essbase Professionals

Oracle Platinum Consulting Partner - 100% Focus on Oracle Hyperion EPM, BI, & Big Data solutions195+ Full time EPM/BI Billable Consultants throughout the US, Canada and the United Kingdom

EPM, BI, & Big Data Experience & Success1,800+ Oracle EPM, BI, & Big Data projects for 850 clients successfully delivered since our founding in 1996

Depth & Breadth of EPM, BI, & Big Data Service OfferingsProduct Experts across the full EPM, BI, & Big Data Suite - Planning, HFM, HTP, FCM (ARM), HSF, HPCM, Essbase, BI/Endeca, DRM, FDMEEVisioning & Roadmaps, Full Life Cycle Implementations, Technical Review & Assessments, Staff Augmentation

Ranzal Oracle ACEs Across Business Analytics Platform

Direct line to Oracle Development, Customer Advisory Boards, Beta Testing, Author Certification Exams

Introduction to Ranzal

2

Service OfferingsCustomized & Core Product Training Delivery

HPCM Model Types: Standard Model, Detailed Model, Management Ledger

Profitability Project Initiation & Analysis Services

Multi-Phase, Multi-Product Strategic Roadmaps & Visioning

Future State Process Definition

Costing Requirements Analysis & Proof of Concept Development

Full Life Cycle Application Delivery By Type:

Shared Service Costing & Charge Backs

Operational Transfer Pricing & Inter-Unit Charges

Global Expense Allocations - Dept & Project

Management Profitability – Segment, Region & LOB

Operational Profitability – Client, Product & Service

Project Experience & Resource Capability18 Experienced Full Time Consultants in the U.S. and EMEA

Over 20 HPCM projects delivered (100 Total Globally)

Comprehensive approach incorporates other tools such as DRM, FDMEE & OBIEE

Close Relationships with Oracle Development – involved in initial Product Architecture

Profitability & Cost Management Offerings

Financial Close Suite

BusinessIntelligence

EnterprisePlanning & Analytics

Data IntegrationServices

Training &Support Services

Advisory ServicesInfrastructure

Costing &Profitability

Mgmt

3

What is HPCM and what does it do?

Common points between HPCM and Planning & Essbase

HPCM Modules Standard ProfitabilityManagement LedgerDetailed Profitability

HPCM vs Planning/Essbase

Q&A

Agenda

4

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

Hyperion Profitability & Cost Management

Common Points with Planning and Essbase

BSO ASO

&

HPCM shares the following concepts with Essbase and Planning

Calculation scriptsDimension Build RulesData Load RulesLev0 ExportsSmart ViewEPMA or non-EPMA

Product RepositoryWeb interfaceConcept of POV in the web interfaceClosed/Open POVsRules

Essbase Planning

6

Audit and Accuracy Shared Methodology Transparency

7

Flexibility

Why HPCM? For These Key Requirements…

Analyze different chargeback approaches to yield optimal mix of services versus costs incurred by the entity.

Rapidly evolve methodologies as the business changes.

Provide What-If capabilities to assess impact of key business decisions on bottom line

Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance.

Achieve this through meaningful allocations, automation, and system controls.

Define consistent allocation and charge back methodology across all management cycles.

Create consistent comparisons when reviewing and updating methodology result and planning for future management cycles.

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.

Allow LOB managers to understand cost to serve and profitability results.

Group HQ

Group Overhead (e.g. CEO)

Group Services (e.g. Property, Controllership, IT)

Inter Unit Charges ( e.g. Transfer Pricing, Contractual Charges)Inter Unit “Regulatory”

Division 1

Shared Services

Overhead

Services

Fully Allocated P&L (e.g. Channel,

Fund, Region)

Expense Allocations

Fully Allocated

“Thin Ledger”

Product Profitability

Customer Profitability

Operational Profitability

“BI”

Division 2

Overhead

Services

Fully Allocated P&L (e.g. Channel,

Fund, Region)

Division 3

Overhead

Services

Fully Allocated P&L (e.g.

Channel, Fund, Region)

HPCM Application Types

8

9

HPCM Has Multiple Model Types toSolve Different Allocation Problems

Version 11.1.1.1 Version 11.1.2.0 Version 11.1.2.4

Management LedgerFully Allocated P&LClient Profitability

via ABC

Fund Profitability HFM/GLActuals

PlanningBgt/Fcst

BIReporting Tool

HPCM Modules Comparison

Standard Profitability stands out as the module that caters for highly complex allocations models and offers the widest range of reporting capabilities.

Detailed Profitability stands out as the “heavy-lifter” of the 3 modules, enabling users to define simple allocation models with a wide range of dimensions and metadata granularity.

Management Ledger combines both the metadata granularity as well as the logics complexity enabling users to define custom models without restricting or limiting the level of detail required for reporting.

10

Solution Architecture with HPCM

Ad Hoc Published Reports

HPCM Data Mart

Metadata Management

Web

Office

Manual Data Input

Pre & Post-Allocations Data Processing

Attributions & Adj

ETL/FDMEE

GL or HFM

OperationalSystem

.txt file

.csv file

Allocations

Validations

Centralized Reporting

Supply Plan

DemandPlan

OBIEE Reports

DRM

11





Q&A

Agenda

Find more details in the Appendix section

12

Standard Profitability – Under the Hood

BSO ASO

EPMA HPCMHPCM repository

OR

HPCM Staging Area

Calculation Cube Reporting Cube

ASOMetadata Cube

13

Standard Profitability - Metadata

POV DimensionsSystem Dimensions

Measures

AllocationType

Business Dimensions

14

Standard Profitability - Stages

1 23 .

45

A dimension is created in the

Essbase outline for each stage where it is

used

Repeat dimensions

between stages as

many times as needed

You can have

max 9 stages

Only 3 dim/stage Intra

Stage

Changes in stage definition require full deployment

Reporting requirements are crucial when defining stages

Driver dimensions must be defined based on model logics, driver data granularity and driver exceptions

15

Standard Profitability – Driver Definition

IF (“S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount] <> #MISSING)

CalculatedDriverValue = “S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount];

ELSE …..

Set of predefined driversSelect to apply drivers to either Cost or Revenue layer or bothDefine the sequence priorityEnable to allow idle or use default option to redistribute driver values as a 100% base

EvenSimplePercentageSimple WeightedVariableVariable WeightedFixed and VariableCustom

16

Standard Profitability – Driver Definition

IF (“S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount] <> #MISSING)

CalculatedDriverValue = “S3_Driver”->“[S3_S_Department]@[NoDepartment]”-> “[S3_Account]@[NoAccount];

ELSE …..

Set of predefined driversSelect to apply drivers to either Cost or Revenue layer or bothDefine the sequence priorityEnable to allow idle or use default option to redistribute driver values as a 100% base

EvenSimplePercentageSimple WeightedVariableVariable WeightedFixed and VariableCustom

17

Standard Profitability – Assignments & Rules

Rules can be defined as combinations of Level 0 and Upper level members.

Direct assignments can be created only between Level0 Members on both Source and Target stages.

You can have unlimited number of rules/assignments.

Direct assignments and Assignment rules are defined per stage using only Dimensions within that Stage

Rules be applied selectively based on Business requirements.

Assignments and rules selections can differ by POV.Users can define or modify rules and assignments in HPCM web. Artifacts can be loaded in bulk through Import Profiles from the Staging Area and can be fully automated through HPCM batch client.

18

Views in Product RepositoryTables in Staging Area Tables in Product Repository

Use the repository objects in order to find out available POVs per application, applications in the system and their type, determine POV ids, application preferences, driver defined in each model, etc.

Standard Profitability – Stage and Product Repository

19

List of drivers defined in the model that have not been selected in any of the allocation stages.

List of members that received a cost or revenue and that did not allocatethe value to further stages.

Standard Profitability – Inbuilt Validations

20

Stage Name

Pre-Allocation data loaded

Data allocated from previous Stages

Total data in Stage before allocation

Data allocated to Activity Stage

Data Allocated to Unit Cost Stage

Data allocated to Branch Stage

Data Allocated to Product Stage

Data remaining Unassigned at the end of each Stage

In-built report, easy to follow, containing the data distribution detail between each stage, and most importantly showing the Unassigned values. Any item on this report appearing as a hyperlink will open an ad-hoc Smart View report with the relevant member combinations.

Standard Profitability – Stage Balancing

21

Standard Profitability - Traceability

For drilling forward:% = ASSG CostReceivedPrior(orIntra)Stage / SRC NetCostForAssignment

For drilling backwards:% = ASSG CostReceivedPrior(orIntra)Stage / DEST NetCostForAssignment

22





Q&A

Agenda

23

Management Ledger

ASO

EPMA HPCMHPCM repository

OR

ASOMetadata Cube

Calculation and Reporting

24

Management Ledger- Metadata

System Dimensions POV Dimensions Business Dimensions

25

Management Ledger- Manage Rules

26


Setting a global context enables you to define default definitions for dimensions that will be usedin all rule definitions for the selected POV.

You should define a global context before defining rule sets for the selected POV.

27


- Set-up sequence of rule within a rule set

- Select the option of executing :

- Serial - Parallel- Iterative with

number of required iterations

28

1 23 .

4 5User Interface and rule driven – no black box implementation with staging areas

Validationperformed at rule level Custom

MDX scripts

Traceability available in

various formats

Iterative rules for reciprocal allocations

Management Ledger- Features

Unlimited Dimensions : Stage-less design allows 4 POV dimensions and unlimited business and attribute dimensions Source side rules, iterative rule support for reciprocal allocations, flexible driver references, custom calculations, and easy clear / recalculation Rule execution in parallel, serial, or iterations as needed, set by userBalancing by rule with allocations sent and received as well as adjustment values detailed by ruleUser defined slices through model views for enhanced rule balancing and trace analysisVisual allocation trace from aggregate or granular level, detailed by rule

29

Management Ledger- Traceability

30





Q&A

Agenda

31

Detailed Profitability – Under the Hood

EPMA HPCM

HPCM Product repository

HPCM Model data Stage

ASO DDestination CubeASO C

ASO S

Contribution Cube

Source Cube

- Dimension tables- Model data tables- Views

OR

ASOMetadata Cube

HPCMStandard OR Management Ledger Profitability

32

Detailed Profitability - Metadata

System Dimension POV Dimensions Business Dimensions

33

Detailed Profitability – Model Data Registration

You must setup a Source and Destination table in order to be able to proceed with the application build. If your selection of Column Type is incorrect, the EPMA dimensions will not appear in the drop down list and you will have to go back and reselect the appropriate type.

34

1 23 .

45

Not intended to replace Standard Profitability, but to complement it

2-5 source stage dimensions Up to 25

target stage dimensions

Only 2 stages Alloc.

Flow only

Detailed Profitability - Stages

Stage definition depends entirely on your source and destination tables and the selections of column types.

Reporting requirements should define the Model data tables. If these should change, a completely new setup is necessary.

Driver dimensions must be defined based on model logics, driver data granularity and driver exceptions

35

Detailed Profitability – Driver Definition

Rate-based driver Calculated Measure Ratio Based Allocation

36

Detailed Profitability – Assignment Rule Definitions

Source dimension assignment rule

Destination dimension assignment rule

37

Detailed Profitability – Manage Database

Source Cube Contribution Cube Destination Cube

Deploying the Source, Contribution and Destination Essbase databases is required only for reporting purposes. All calculations for the Detailed profitability model will reside in the repository.

In order to enable the data transfer between the Detailed Profitability HPCM application and the Essbase applications, an ODBC must be created on the application server and the DSN must be called PROFITABILITY_DS. After creating the ODBC it is advised to perform a Profitability service restart.

38

Views in Product RepositoryTables in Model data schema

Use the repository objects in order to find out available POVs per application, applications in the system and their type, determine POV ids, application preferences, driver defined in each model, stage balancing report data, hierarchies used etc.

Detailed Profitability – Stage and Product Repository

39

Total Input – Total Output– Idle + OverDriven = Unassigned ValuesSum of all monetary or balance data loaded to the source stage = InputSum of unassigned values + Idle - OverDriven = Input

Detailed Profitability – Stage Balancing

40



HPCM Modules Standard ProfitabilityDetailed ProfitabilityManagement Ledger


Q&A

Agenda

41


HPCM Planning/Essbase

Designed specifically for cost allocations and scenario modelling.

Designed for use in the Budgeting and Forecasting processes.

Allocations are designed in a modelling environment; and Calc Scripts/Allocation SQL scripts/MDX scripts are generated automatically based on Stages/Maps/Rules defined.

Allocations can be done through the use of Calc Scripts/Business Rules which must be developed and maintained manually, or via Calc Manager (Designer).

No Essbase/SQL/MDX knowledge required to maintain/ redesign allocations as these are built automatically by the system.

Essbase knowledge required to maintain allocations(manually changing the scripts or building them).

All allocation logic, intermediate steps and results are visible through the web interface. (allocations, driver definition, driver intersection, rules, rule sets and traceability)

Only the results of allocations are visible through the web interface. (there is no out of the box traceability option available in Planning or Essbase).

Allocation validation immediately available (balancing reports, traceability)

Allocation validation must be manually written. Audit must be custom.

Optimized for multi-step, multi-stage, highly granular, reciprocal, simple and complex allocations.

Optimized for simpler, single or reduced step allocations & calculations.

42

Modules Summary…Plus

43

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Profitability and Cost Management Cloud ServiceDirection

Bart StoehrDon BeanEPM Product Management

October, 2015

Oracle Confidential – Internal/Restricted/Highly Restricted


Safe Harbor StatementThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor StatementThe following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Oracle Confidential – Internal/Restricted/Highly Restricted 45

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |*** Relevant in All Industries

Operational Transfer Pricing ***

Healthcare Payers & Providers

HigherEducation

Manufacturing Product Intensive

Financial Services

Transportation& Logistics

Telecommunications

$

Utilities

PublicAgencies

Shared Services Costing ***

High Quality Care Best Outcome Lowest Cost

Cost of Degrees Affordability Performance Funding

Align ALL Costs to Revenues “Winners”/ “Losers” Landscape Driver-Based Planning

“Accountable Care”“Mastering Cost of Education”

Highest Integrity Processes Auditable via Transparency Optimize Tax Impacts

“Intercompany Profitability”

Price Justification Resource Capacity Strategic Partners w/LOBs

“Optimized Cost to Serve”

“Managing Profitable Growth”

Working Capital Funds Reimbursement Agreements Performance Based Budgets

“Cost Management”

N-Dimensional Strategic P&Ls Outsourcing / Benchmarking Nimble Product w/Service Packaging

“Hyper Competition” Rate Setting Justification Auditable via Transparency Process Efficiency

“Regulated/Semi-Regulated” Route Profitability Capacity Planning Cargo Optimization

“Maximizing The Value Chain”

N-Dimensional Strategic P&Ls“Winners”/ “Losers” Landscape Nimble Product Pricing

“Hyper Competition”

Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis

No Hardware No Shelfware Fortress Security Latest Versions Simple to Use Sophisticated Analytical Power Rapid ROI – Use Case Driven


Profitability and Cost Management Cloud ServicePervasive and Focused Financial Analysis

Application Management Vertical Application Templates Dimension Upload / Update User Provisioning Data Security

Oracle Confidential – Internal/Restricted/Highly Restricted 47

Multiple Dashboards Charts & Data Grids Key Performance Indicators

Custom Time Aggregations Rank and Scoring

Population Performance Analysis Multi Dimensional Profit Rank and Order Allocation Trace Custom Queries w/Drill to Smart View

Custom Report Creation Strategic P & L Reports Cost Contribution Detail

Management Ledger Applications Complex Multi Step Computations Flexible Allocation & Custom Calcs Business User Managed Rules Comprehensive Audit Trail

Application Accelerators Prebuilt Solutions Kits by Industry Purpose Built Dashboards, Intelligence

Views and Allocation Framework

• Ranzal Booth, Moscone West 3353• Open World Conference Sessions

– West Rock: Oracle Data Relationship Management—Enabling Data GovernanceOctober 26, 12:15 pm - 1:00 pm | Moscone West—3020

– Tips and Tricks: Oracle Hyperion Financial Close SuiteOctober 29, 9:30 - 10:15am, Moscone West - 3020

– Met Life, PGS & Tele2: Cost and Profitability Management October 29, 12:00 pm - 12:45 pm | Moscone West—3009

– Tele2: Empower Finance with Full Control of Oracle Hyperion FDM Integration Process

October 29, 2:30 pm - 3:15 pm | Moscone West—3020

• LUNCH N LEARNS @ the Thirsty Bear, 12-1:00 pm– Mon:

Land O' Lakes Gains Insight with Information Discovery & Big Data

– Tues: Product Profitability with HPCM at Tele2– Wed:

Rapid M&A Integration with DRM & FDMEE at WestRock

Edgewater Ranzal108 Corporate Park Drive, Suite 105

White Plains, NY 10604Tel (914) 253-6600

Email: [email protected]

PresenterMike Killeen, Sr. VP Technology & Strategy

Closing and Q&A

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mailto:[email protected]

HPCM Workflow

Module Comparisons

Appendix – General

49

50

HPCM WorkflowPublished Reports & Interactive AnalyticsModel DevelopmentMaster Data & Data

Integration Management

EnterprisePerformance Management

Architect

DimensionsHierarchiesAttributes

Hyperion Profitability & Cost Management (HPCM)

Financial Reports, Smart View,Business Intelligence

Foundation

Model Execution

StagesDrivers

Driver SelsRules

Assignments

Standard Model

Detailed Model

Management Ledger Model

Calc CubeBSO

Rept CubeASO

CalcsRDBMS

Contr.ASO

DestinationASO

Calc/ReptASO

SourceASO

System Administration:

Create & Manage Dimensions & Hierarchies

Deploy the Application

Define Data Integrations from Source Systems

Manage User Security

Create & Manage the Business Model:

1. Define the Stages (Std Only)

2. Create a Model Point-Of-View (POV)

3. Create Rules (Std & Detailed)

1. Define the Drivers

2. Define Assignment Rules

3. Assign Drivers

4. Create Assignments

4. Create Management Ledger Rules

Execute a Model POV:

1. Load Cost/Revenue Data

2. Load Driver Metric Data

3. Validate Model Inputs

4. Execute Calculations

5. Trace Allocations & Validate Model Results

6. Publish the Model POV

Produce Management and Performance Reports:

Financial Results Books

Margin Analysis

Cost & Revenue Contribution Analysis

What-If Scenario Comparisons

Genealogy Reports

HPCM Module Comparison

Standard Profitability

Detailed Profitability

Management Ledger

BSO Application

ASO Application

Number of Stages 9 2Number of Dim Per Stage 3 2/25Driver Selection/Exception

Intrastage Allocations

Traceability Maps

Genealogy

Not available/ Not used

Available

Not relevant

51

Standard Profitability Workflow

Use cases

Driver Load

Calculation Scripts naming convention

System Reports

Appendix – Standard Model Details

52

Create and Manage Dimensions

Add custom Measures

Deploy the Application

Standard Profitability

Metadata Management

Allocation ModelDefinition

Cost & RevenueAllocation Calculations

Profitability & Cost Analysis

Create and Manage Business Models

1. Define the Stages


3. Assign Drivers

4. Define Assignment Rules

Load Cost, Revenue and Driver Data

Calculate Model & Store Results

5. Validate the Model

Transfer Calculation results to Reporting Cube

Analyze Genealogy and Traceability in Reporting Cube

Profitability Analysis

Stage Balancing report

Cost and Revenue Contribution Analysis

53

Costing for analytical purposes

Highly regulated costing scenarios

Used where detailed traceability and genealogy is required.

Advanced costing methodologies

Activity Based Costing

Aggregate level Profitability

Rare or simple Dimensional Change.

New models can easily be created based on existing models, if required.

Structured flow of data

Standard Profitability Use Cases

HPCM

Retail Banking• Indirect cost allocations• Shared services allocations• IT costs allocations

Insurance• Product cost allocation• Product Profitability• Legal Entity allocation• Shared services allocations

Investments

• Channels and Funds allocations

• Project allocations• Intercompany profitability

Telecommunications

• Products and services allocations• Segment profitability• IT costs allocations• Infrastructure and maintenance cost

allocation• Shared Service costing

Healthcare• Services Profitability• Overhead cost allocations• Transfer pricing

Higher Education• Indirect cost allocations• Performance funding• Cost of Degrees

54

Standard Profitability – Driver Load

Interface to upload drivers at required intersections.

Possibility to verify total driver data loaded for the source intersections vs target without any further effort.

55

Standard Profitability – Calculate the Model

String scriptName = scriptSuffix + POV ID+ Stage Order Nb + “_” + index;

No Concurrent Calculations: Concurrent Calculations:

Use Essbase logs in order to find out which point in the calculation process has been reached. Use the HPCM web logs in order to have a high view of where the process is.

Cache settings

Buffer settings

56

Standard Profitability – System Reports

System Reports can be launched by process in order to gather statistics or verify run times for a specific execution.

Covers run times per stage, number of assignments and assignment rules, start time and end time Dimension details and Genealogy paths list and run times for each path.

57

Standard Profitability – System Reports

58

Management Ledger Workflow

Use cases

Driver Data Entry

Model Validation

System Reports

Appendix – Management Ledger Details

59

Create and Manage Dimensions (EPMA or non-EPMA through Profitability application manager)

Deploy HPCM Essbase ASO database

Create POV member combinations

Management Ledger

Metadata Management

Allocation ModelDefinition Allocation Calculations


1. Create and manage Rules

Define global context

Create Rule sets and set sequence of calculation

Define rule-based context where required

2. Define Model Views

Create Trace model views for traceability

3. Validate the model

4. Calculate the model

Specify to calculate all Rules, a rule set range or a single rule

5. Run rule balancing report

Run traceability reports

Create and manage queries for profitability and cost analysis

60

Management Ledger Use Cases

HPCM

Retail Banking• Indirect cost allocations• Operational Transfer pricing• IT costs allocations

Insurance• Product cost allocation• Product Profitability• Shared Service

chargebacks

Investments

• Channels and Funds allocations

• Project allocations• Intercompany profitability

Telecommunications

• Products and services allocations• Segment profitability• Infrastructure and maintenance cost

allocation

Healthcare• Services Profitability• Overhead cost allocations

Higher Education• Indirect cost allocations• Cost allocation at

student-level

Moderate/High Complexity

High Rate of Business Flexibility.

Management reporting.

Augment thin ledger efforts

Planning and HFM allocation support

Advanced costing methodologies

Can handle involved dimensional changes.

Aggregate level profitability

Dimensionality supports common management reporting uses and closely match HFM or General Ledger structure

Free form data flow

61

Management Ledger - Setup

62

Queries can be used for:

management reporting

segmented profitability analysis

rule analysisinput data verification

creating journals

Management Ledger- Driver Data Entry

63

Management Ledger- Model Validation

64

Management Ledger- System Reports

65

Detailed Profitability Workflow

Use cases

Detailed Profitability Application Setup

Driver Selection

Assignment Rules selection

Calculation Rules

Manage Calculation

Appendix – Detailed Model Details

66

Create and Manage Dimensions (EPMA or non-EPMA)

Register model data schema

Add custom Measures

Deploy Source, Contribution and Destination Essbase database for reporting purposes

Detailed Profitability

Metadata Management

Allocation ModelDefinition Allocation Calculations


Create and Manage Business Models

1. Define the 2 Stages and select their corresponding tables


3. Assign Drivers to the Driver dimension for the Stage

4. Define calculation rules

Calculate Model

5. Validate the Model

6. Calculate model with contribution analysis

Profitability Analysis

Measure balancing report

Run pre-built reports

Design reports and save for future use within HPCM interface

67

Detailed Profitability Use Cases

HPCM

Broker Institutions• Cost allocations and profitability calculation at desk level/ Employee level

Insurance• Product cost allocation

where more than 3 dimensions /stage are required

Investments• Portfolio/ Account /

Client level profitability

Healthcare• Patient-level cost allocations

Retail• Customer and / or segment

profitability• Overhead cost allocation• Profitability by

location/store

Manufacturing, Distribution

• Product line profitability• Customer category\class\

tariff group cost allocations

Low Complexity

High Rate of Business Flexibility.

Bottom-up profitability computation

Highly detailed, granular dimensional cost and profit objects

Flexible regarding dimensional changes

First setup is time consuming hence not as quick to spin-off new model from an existing one

B2C customer, customer event, order , or transaction costing and profitability

68

Detailed Profitability - Setup

Model data schema is mandatory for Detailed Profitability applicationsThe product schema requires permissions on the Model data schema in order for the model to run. If permissions have not been set or they are not appropriate, you will not be able to select the Model data schema in the Preference tab.

Permissions for Product schema: CREATE TABLECREATE VIEWCREATE ANY SYNONYM DROP ANY SYNONYM.

69

Detailed Profitability – Driver Selection

The driver selection can be made only on the Source Stage

Default driver selection can be made at the top node and will be populated on all members that do not have a specific driver selected

70

Detailed Profitability – Assignment Rule Selection

71

Detailed Profitability – Calculation Rules

Pre and post custom calculation scripts can be set-up but. These must be written directly to the HPM_SQL_SCRIPT table by a user with DBA rights on the Product schema in the SCRIPT column.

Setting up custom scripts requires knowledge of SQL syntax as well as familiarity with the Detailed profitability business model.

update my_table set my_column =5/update your_table set your_column =6/begin execute my_proc end/

72

Detailed Profitability – Manage Calculation

Running the Model Calculation creates two views for use within Reports, which you can use tocreate custom reports:

HPMD_DEMO_STAGE_BALANCE_V—Contains the stage balance information viewed within the Stage Balance Report.

HPMD_DEMO_LEVEL_0_CONTRIB_V—Contains the contribution information for each source and destination combination at Level0.

73