Oow2013 Venkat Hpcm

T : +44 (0) 8446 697 995 or (888) 631 1410 (USA) E : [email protected] W: www.rittmanmead.com

Integration of Standard & Detailed Profitability

Hyperion Profitability & Cost Management

Sunday, 22 September 13

T : +44 (0) 8446 697 995 E : [email protected] W: www.rittmanmead.com

Who Am I?

Venkatakrishnan Janakiraman Over 10+ Years of Oracle BI & EPM experience India Managing Director, Rittman Mead Consulting Blog at http://www.rittmanmead.com/blog

- Old & defunct blog http://oraclebizint.wordpress.com Oracle ACE EPM/BI Specialization Twitter

- @krisvenkat



About Rittman Mead

Oracle BI, EPM and DW Gold partner World leading specialist partner for technical excellence, solutions delivery and innovation in Oracle BI Approximately 100 consultants worldwide All expert in Oracle BI and DW UK based Offices in US, Europe (Belgium), India & Australia Skills in broad range of supporting Oracle tools:

OBIEE OBIA ODIEE Essbase, Oracle OLAP GoldenGate Exadata EPM

- HFM - Planning - Essbase- HPCM



Agenda

Hyperion Profitability & Cost Management (HPCM) Overview Types of HPCM

- Standard- Detailed

How HPCM works - Example Model Dimensions Drivers Rules Allocations

Standard & Detailed Profitability Differences Performance Usability

Integration between Standard & Detailed Profitability Sample Customer Example Integration with ODI & BI EE



EPM Applications - HPCM



HPCM - Overview



HPCM Overview

Packaged Application that is fundamental part of Oracle-EPM stack Primarily an Allocation Engine

End User Driven Has 2 types of applications

- Standard Profitability- Detailed Profitability

Requires additional tools to prepare data for allocation Though Business User driven

- Requires training- Requires an understanding of HPCM terminology



HPCM Overview

Very different from Excel Excel Allocations

Generally done at a total level HPCM Allocations

Done at the most granular cell level Provides control Provides ability to change allocations at a cell level Flexible



HPCM Overview - Standard Profitability

HPCM Works on Multi-Dimensional Stages Allocation happens at each stage Upto 9 stages supported

Each stage is like a mini cube Very important to understand how allocation

happens & how drivers drive allocation Metadata Lineage Available within HPCM to provide

breakup of Costs Tracing Allocations through the stages Key Feature

Allocating Overhead costs



HPCM Allocation Example

Classic Chart of Accounts of a Consulting/Services Company Chart of Accounts

Lacks grain at Project/Client Level Allocation of Costs back to project & Client

- For calculating Project & Client Profitability



Allocation Example - SP - Input Data

Input data at Account Level Input data at Year, Period Level All Allocations based on 2 drivers

Head Count Billable Days



Allocation Example - SP - Allocation by Client

Allocation at a Client level Client Expenses

Allocated based on Head Count to specific clients Entertainment & Rent

Allocated based on Billable Days to all clientsHead Count Billable Days



Allocation Example - SP - Allocation by Project

Allocation at a Project level after Client Allocation Client Expenses

Allocated based on Head Count to all Projects rolling to that client Entertainment & Rent

Allocated based on Billable Days to all projects rolling to that client



Allocation Example - SP - Allocation by Project





HPCM - Allocation Example - Standard Profitability



Allocation Example

Stage 1 Get Input data at Account level

Stage 2 Allocate Account level data at Client level Drivers: Head Count & Billable Days Rules/Destination: Accounts & Client

Stage 3 Allocate Client level data to Projects Drivers: Head Count & Billable Days Rules/Destination: Accounts & Projects



Define Allocation Matrix

Allocation Matrix Defines how the costs get allocated line by line Defines how the costs get allocated stage by stage

Basically has 2 parameters Driver Name Rule Name



Allocation Matrix in our Example

Allocation Matrix Defines how the costs get allocated line by line Defines how the costs get allocated stage by stage

Basically has 2 parameters Driver Name Rule Name

Define for all possible combinations



Allocation Matrix in our Example



Standard Profitability - EPMA Dimensions



Standard Profitability - Application Model Stages



Standard Profitability - Stage 1



Standard Profitability - Drivers



Standard Profitability - Driver Assignment by Stage



Standard Profitability - Rules



Standard Profitability - Stage 1-2 Rules



Standard Profitability - Stage 2-3 Rules



Standard Profitability - Stage 1 - Rule Assignment



Standard Profitability - Stage 2 - Rule Assignment



Standard Profitability - Rule Assignment & Driver Assignment

Manual Assignments Gives control to the business users But can be painstaking in a big model

Automated Assignments Loaded through the HPCM Model API Load Allocation Matrix into Staging Tables and import into HPCM Staging Tables can be loaded through ODI Import into HPCM can be automated through Web Service Calls



Standard Profitability - Staging Tables

7 Staging Tables HPM_STG_ASGN_RULE_SEL

- Assigns existing assignment rules into specific intersections HPM_STG_ASSIGNMENT

- Loads/Creates assignment rules HPM_STG_DRIVER

- Loads/Creates drivers HPM_STG_DRIVER_EXCEP

- By default, HPCM SP assigns drivers to measures - Exceptions can be assigned to every stage source intersection

HPM_STG_DRIVER_SEL- Assigns drivers to existing measures

HPM_STG_POV & HPM_STG_STAGE- Creates POV & Stages respectively



Standard Profitability - Example Model Load

HSP_STG_DRIVER_SEL



Standard Profitability - Example Model Load

HPM_STG_ASGN_RULE_SEL



Standard Profitability - Create Calculation & Reporting Database

Calculation Database - BSO Reporting Database - ASO Each Stage Dimension

Stored in Essbase with the Prefix



Standard Profitability - Enter/Load Data

Manual Data Entry or Load through ODI ODI - Data Entry to specific cell intersections



Standard Profitability - Enter Driver Data



Standard Profitability - Run Calculations

Allocations are run through Manage Calculations Screen Genealogy allocations to be enabled for drill through reporting

Allocation Genealogy to be exposed



Validate Allocation Run

Stage Balancing Very good tool to validate whether all data has been allocated Provides Stage wise breakup of allocation numbers



Reporting Queries

New Feature Links to Smartview and provides easy access to multi-stage data Different Types of Reports

Driver Reports Contribution Reports

- Provides both Direct Allocation- Genealogy Allocation provided path is given



Reporting Queries



Reporting Queries - Direct Allocation



Standard Profitability - Key Points

Supports upto 8 stages of allocation Supports Contribution lineage upto 8 stages

More the lineage, slower the allocation Supports upto 3 dimensions per allocation (in addition to the 4 POV dimensions) Uses

Essbase BSO for calculation Essbase ASO for Reporting

Break down allocations into multiple stages for better performance



Detailed Profitability - Overview

Was introduced in 11.1.2.2 Very powerful for large allocations Very different from Standard Profitability Can inter-operate with Standard Profitability (integration from 11.1.2.3)

Standard Profitability Detailed Profitability

Uses Essbase BSO & ASO as the Allocation Engine Uses relational database as Allocation Engine

Supports only upto 3 business dimensions per allocation Supports upto 5 dimensions per allocation

Supports upto 8 stages of allocation Supports only 1 stage of allocation

Typically used for Financial allocation (smaller models but with varied allocation logics)

Typically used along with Standard Profitability where more than 3 dimensions per allocation is required

Drivers are assigned to Measure dimension - Individual cell level driver assignments (exceptions) not recommended

Cell level drivers are recommended and possible

Cell level target assignments without Assignment rules possible

Only targets with Assignment rules possible

Trace Allocation possible within HPCM No Trace Allocation possible - but can be enabled from BI EE



Detailed Profitability - Example Model

Database Schema Essbase Connection for SP integration



Detailed Profitability - Stages & Dimensions

Total of 2 stages Source Stage Destination Stage

Both Stages point to Database tables Dimension Structure - Still maintained in EPMA

Can be shared with both Standard & Detailed Profitability



Detailed Profitability - EPMA Dimensions



Detailed Profitability - Drivers

Similar to Standard Profitability In SP - Actual & Standard Drivers In Detailed - Ratio & Rate-Based Drivers



Detailed Profitability - Assignment Rules

Targets defined only through Assignment Rules Direct Target cell assignments not possible like Standard Profitability



Detailed Profitability - Staging Tables

7 Staging Tables HPM_STGD_ASGN_RULE_SEL

- Assigns existing assignment rules into specific intersections HPM_STGD_DRIVER

- Loads/Creates drivers HPM_STGD_DRIVER_EXCEP

- By default, HPCM SP assigns drivers to measures - Exceptions can be assigned to every stage source intersection

HPM_STGD_DRIVER_SEL- Assigns drivers to existing measures

HPM_STG_POV- Creates POV respectively



Detailed Profitability - Integration with Standard Profitability



Standard & Detailed Profitability - Integration

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

BSO ASO

Standard Profitability

Source Stage

Destination Stage

Detailed Profitability



Detailed Profitability - Sample Customer Performance

Recent rollout at one of our Customers One of the largest BPO operating in 15 countries

Detailed Profitability used for end to end Profitability Reporting 25 different Allocation Drivers 80 different Assignment drivers Model alone consisted for 1000000 transaction lines (unique combination of 5

dimensions that require allocation) 20000 transaction lines allocated monthly

- Each transaction line allocated to 1000 lines based on various drivers- 3.5 hours for overall allocation- End to End BI EE reporting available within 4 hour window- Entire Allocation process driven through ODI

Was done previously using Excel- 3 days to prepare everything end to end that too with no Contribution visibility



Detailed Profitability - Sample Customer Allocation Matrix

Sample Allocation Matrix Every line could have a different rule & driver month over month Complete visibility to contribution data

Source of Costs - From where the costs came in Visibility into Allocation - What is the rule & the driver for every line Driver Values Drill through the Source from post allocated data through BI EE



Detailed Profitability - ODI Integration

All data loads/preparation done by ODI All loads to API tables for importing Model/Drivers

Done through ODI Web Service Calls

To trigger calculations Conditional checks to make sure no errors

Other Option Call ODI Scripts before & after HPCM calculation



Detailed Profitability - BI EE Reporting



Integration of Standard & Detailed ProfitabilityQ & A

Hyperion Profitability & Cost Management


Oow2013 Venkat Hpcm

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