Leading practices in Project Planning

June 10th, 2013

New England OAUG:

Leading Practices in Project Planning

Tom Gargas, Edgewater Ranzal

Agenda

4

• Introductions • Project Financial Planning Overview • Product Demonstration • Leading Practices • Q&A

Focus

Services

People

Methodology

Customers

Partnership

About Edgewater Ranzal

15+ Years

700+ clients

1000+ projects

2

About Edgewater-Ranzal

► One of the largest Full-Service Oracle/Hyperion EPM and BI practices.

► Oracle Platinum Partner presented with numerous awards and recognitions by Oracle including multiple Partner of the Year awards.

► Premier Consulting Services in North America, and a regional European office located in the United Kingdom.

Edgewater

Founded in 1996

Essbase Acquired by Edgewater

2004 Data

Integration & Warehousing/

CRM/ Web 2.0

Development

Acquired Vertical Pitch

2007 HFM/ FDM

► Publicly Traded as: EDGW

► One of The Boston Globe’s Top 100 businesses

► Ranked as one of the 500 fastest-growing stocks on Wall Street

Acquired Meridian

2010 HSF

Planning 2001

Planning

Build OBI Team

2011 OBIEE

Ranzal

Build DRM & HPCM Teams

2009 DRM & HPCM

Dashboards & Scorecards, Profitability &

Cost Mgmt, Financial Analytics & Reporting,

Operational Analytics, What-if Analysis,

Query & Reporting, Visual Exploration

Financial performance, Legal,

Segment & Mgmt Reporting, Financial Close

HFM Optimization, Performance Lab

SOX Compliance Support

Planning, Budgeting, Forecasting,

Workforce Planning, Capital Planning,

Project Planning, Campaign Planning,

Strategic Finance

Data Integration, Financial Data

Management, Data Warehousing, Master

Data Management, ETL Services,

Performance Tuning, Automation

Project/Program Mgmt, EPM

Road Maps, Application

Reviews, Business

Requirements, Process

Change, Documentation

Installation, Upgrades,

Migration, System

Monitoring, Backup and

Recovery, Disaster

Recovery, Load Testing,

Hardware Sizing

Consolidation

Business

Intelligence

Planning

Infrastructure

Training

Support

Services

Data

Services

Project

Management

Support Services - Project/Program

Mgmt, EPM Road Maps, Application

Reviews, Business Requirements,

Process Change, Documentation

Dashboards/Scorecards, Profitability Cost

Mgmt, Financial Analytics & Reporting,

Operational Analytics, What-if Analysis,

Query & Reporting, Visual Exploration

Our Services

3

I could try to execute on all submitted Business Initiatives

I should ensure I have the budget needed to fund the projects

I would want to ensure alignment with Strategic Objectives

Why financial planning for projects?

Planning for my Hyperion Project…

Internal Labor & Rates

External Labor, HW, Other

Steering Committee

Approved CR’s

How can organizations define the optimal mix of strategic initiatives with limited time, funding and resources given the constraints in the process?

I clearly needed Hyperion Planning/PFP!!!

• Multiple sources of information • Numerous tools to utilize • Many manual touch-points • No tracking or versioning • No financial intelligence • Limited reporting

My “Ahaaaa” Moment

Where is the money

going?

Is this the optimal

mix of

investments?

Would we do anything

different with more or

less budget?

Should we pull or alter

any initiatives?

Are we choosing the

right initiatives?

What does Hyperion provide?

Oracle's

Project Financial Planning

Solution

Oracle EPM Connects Management

Common Integration & Analysis Data Quality and Consistent Dimensions

Common Reporting & Interaction

Strategy Management

Financial Close

Planning & Forecasting

Profitability Management

Oracle Connects Planning Processes

Capital Assets Planning

Workforce Planning

Strategic Planning

Financial Detail

Operational Detail

Predictive Modeling & Simulation

Cost

Analysis

Planning, Budgeting & Forecasting


Project Planning

• Custom

Workforce Planning

• Custom

• Pre-Packaged Module

Capital Planning

• Custom

• Pre-Packaged Module


• The Benefits to Implementing Project Financial Planning:

Pre-configured with detailed capabilities and process flow to support a rapid deployment.

Customizable framework for configuring around a client’s unique needs.

Proven Hyperion Planning platform

Oracle-supported application.

Maximize Value

Minimize Risk

13

Forged from Leading Practices!!!

• 11 Task lists (including Tasks) • 220 Data forms • 76 Menus • 216 Business rules • 111 Smart Lists • 11 Financial Reports • Prebuilt & Configurable Dimensionality • Validation rules • Essbase substitution variables • User variables

Pre-Built PFP Application Artifacts

Maximize Value

Minimize Risk

Model Strategic Initiatives

Propose & Plan Projects

Rank & Fund

Approve

Monitor and Report

Update & Forecast

Financial Planning for Projects

Assess and Manage Risk

Steps to managing the full financial performance


Propose & Plan

• Propose new projects – Contract: Plan Revenue/Billing

– Capital: only BS & P&L Impact

– Indirect: only P&L impact

• Plan Expenses – Labor

– Equipment

– Materials

– Other Expenses



Rank & Fund

Approve

Monitor and Report

Update & Forecast


Rank & Fund

• Review project proposals

• Rank and prioritize projects

• Request funding





Rank & Fund

Approve

Monitor and Report

Update & Forecast



Rank & Fund

Approve

Monitor and Report

Update & Forecast



Approve Projects

• Review approval status for projects

• Submit project(s) for approval





Rank & Fund

Approve

Monitor and Report

Update & Forecast

Monitor & Report

• Monitor & report on financial performance of projects

Compare actual vs. plan

Compare forecast vs. plan

• Monitor & report on approved financial plans





Rank & Fund

Approve

Monitor and Report

Update & Forecast

Update & Forecast

• Update project plans with actual and forecast out remaining months

• Compare original plan to forecast





Rank & Fund

Approve

Monitor and Report

Update & Forecast


• Evaluate financial return on potential key initiatives

• Assess and manage risk

• Select initiatives with best return

Rank & Fund

• Evaluate funding alternatives based on forecasted project cash flows

Short Product Demonstration


Copyright © 2012, Oracle and/or its affiliates. All rights reserved.

24

Copyright © 2012, Oracle and/or its affiliates. All rights reserved.1

Project Financial Planning (PFP)20+ Customers

– Background:

• Leading high-tech company headquartered in Silicon Valley, CA.

• Offers customers products and services involving networking, infrastructure, and system optimization.

– Pain Points:

• Engineering and FP&A departments planned on legacy application:

– Internally developed solution was reaching end-of-life; costly and risky to maintain

• Existing process and tools were cumbersome and tasks were not efficiently executed

• No web-based interface.

• Lack of automated interfaces to Oracle Projects and iProcurement

– Ranzal’s Solution:

• Built a labor & non-labor project planning application for 150 users:

– Plan Capex and Opex for all projects

– Forecast Labor plans by Department and Project or Initiative.

– Allocate plan H/C and labor expenses by dept. and project based on allocation matrix.

• Integrated with Oracle Projects, iProcurement and HR modules

– Benefits:

• Ability to track project spending by project, by multple dimensions & attributes (account, by segment, etc)

• Ability to report against that data

• Relative ease of input for the engineering team

• Ability to forecast spend by project- a HUGE milestone for LCM and product portfolio decisions

Client Example 1

Oracle Projects

Oracle iProcurement

Project Planning

Oracle HR

• Build non-labor expenses by Dept. • HC & Avg. Labor Rate by Dept by month • Input factors for Driver based calculations for TBH • (Actual & Forecast)

• Opex & Capex Actuals • In-service Depreciation • (Actual & Forecast)

1x load of historical Forecast & Plan

• HC% Manual Input by users • Forecast of Capex, HC & Labor Costs to Projects

Legacy Planning

Oracle GL

Corporate Planning

Dimensions & Labor Data

Opex & Capex Data

Dimension metadata & properties

• Opex Commitments • Capex Commitments

Client Example 1

– Background: • Leading investment management and services company operated by nearly 50,000 employees in 36

countries worldwide and serving more than 100 global markets. • Provides services to institutions and corporations, private clients, and consultants and advisors. • Headquarters in New York, NY

– Pain Points:

• Major Expenditures division had difficulty with the process of creating proposed capital projects for review and approval.

• Difficulty tracking the approved budget compared to the actual costs of the project. • Systems did not interact or integrate effectively. • Great deal of manual effort was required to manage the overall process.

– Ranzal’s All-In-One, Closed-Loop Solution: • Built a capital expenditures planning application to create a financial plan • Integrated Planning with external workflow to review and approve projects • Integrated systems for data flow and for comparative reporting of actuals.

– Benefits:

• Tighter controls of project planning and analysis • Improved productivity toward value-added activities by automating manual efforts. • Active project track built up user and executive confidence of the entire process. • Subsequent application enhancements led to improvements in ERP and Master Data Management systems.

Client Example 2

PC

Proj. Workflow

Project Planning

• Project plans are created and data is entered via webforms. • Planned projects are aggregated • Planned project reports are generated

PPM

T&E

AP

GL

Plan project activities, attributes & plan dollar amount

Approved project activities, attributes & budget dollar amount

Approved project information

HR

AM

• Labor & Capital Asset related dimensions, properties and data. •Actual spend dollar amount.

Client Example 2

Pre-Built in PFP Configurable in PFP

Establish a closed loop feedback to address the process disconnect between project management decisions and financial decisions

Establish Project Hierarchies and attributes to support workflow, security, reporting, and key business logic. Key examples include Project Owning Organization, Project Type, and Program.

Link demand based project plans with supply side workforce and capital plans to ensure resourcing is level based

For global implementations, recognize impact of transaction currencies. Not just the typical functional and reporting currencies typically associated with Hyperion implementations.

Since project planning is tightly integrated with capital and labor processes, leverage multiple plan types in 1 application to improve integration between them.

If project planning is at the activity level, standardize on common activities and keep them as a separate dimension.

Try to incorporate ranking and priority into your application to give management visibility into critical and non-critical projects.

Minimize alerting capabilities and track the status within the application. This will significantly lessen the number of emails being burst out.

Don't forget about "unplanned" or "emergency" projects. These are projects that surface after "planned projects" were approved.

Consider a tailored currency conversion methodology to offer greater flexibility and time to delivery.


– Be cognizant of internal IT and EPM Strategies: • How does PFP fit into current EPM (planning and reporting) processes for users and

support staff?

• How is PFP impacted by other strategic initiatives?

– Compile and Secure Your Requirements

– Develop Your Future State Processes

– Map Requirements & Process to PFP

• Determine Alignments

• Identify Gaps

• Mitigation: Do Nothing, Customization, Work-Arounds, Training

– Data Integration – Full inventory of data sources and any deficiencies

– Big Bang Doesn’t Always Work – seriously consider a phased approach given your understanding of future state requirements and process

Leading Practices in EPM Projects

Leading practices in Project Planning

Business

fund approve monitor

epm road maps

report update

financial analytics

forecast financial planning

business requirements

leading practices

operational analytics