Profitability and Cost Management at Mastercard Worldwide

Oracle HPCM Customer StoryFully Allocated P&Ls at MasterCard Worldwide

September, 2016

Jonah Rufus WilliamBusiness Leader – GBSC Systems

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• 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

Education

Engineer – Electrical & Electronics

MBA – Systems and Marketing

Strategize, Implement and Sustain Hyperion and BI Platforms

Business Leader | GBSC Systems

Presenter Bio

© 2016 Mastercard. Proprietary and Confidential

1. Hyperion @ Mastercard

2. Business Background & Challenges

3. Solution Overview

4. Business Benefits & Lessons Learned

5. Future Plans

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Mastercard Customer Story Agenda


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

Mgmt. Reporting

Entity Mapping

Work Force

Product P&L

2011 2012 2013 2014

Local Currency

Driver

Local Currency Exposure

FXFTE

SPA - II

Implementation Stabilization Expansion

Budget Breakout

PerformanceTuning

2015

Commitment

Lights Out Automation

StratPlan

Customer P&L

2010

Payroll

Renovation

2016

D&A

Revenue Attribute

Local Actual

M&A

Cash Flow

Hyperion Upgrade

Allocated P&L

Expense Mgmt. BI

Rev. Rec.

Application Automation / Enhancement / ProjectBI

Stabilization | Expansion

Fin - BI

Revenue

Expense

A&M Op Plan - BI

Cur. Neutral

Hyperion @ Mastercard


Hyperio

n Stat

s

20 • Hyperion Applications

30 %40 %

• 2015 Growth In Foot Print• 2014 Growth in Foot Print

14 • Process Supported Globally across 12 business units

600 • World Wide Users

1 Monthly Close

2 Strategic Planning

Annual Budget3

Quarterly Forecast4

8 Workforce Planning

9 Monthly Customer P&L (COS)

Quarterly Product P&L (PPL)10

Local Currency Exposure11

Monthly Payroll Process5 Commitment Collection Process12

M&A Reporting6 Managerial P & L13

Cash Flow7 BI Updates14

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1. Fully Loaded Country P&L

2. Transparent Rules

3. Sound and Simple Methodology

4. Faster System

5. Fit within Hyperion Framework

MasterCard Challenge


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1. Prototype in MS Access & Excel2. Obtain buy in from impacted business

owners3. Assess solution fit with in Oracle Platform4. Develop Functional Pilot in Requirements &

Design5. Implement & Rollout6. Build Future Roadmap

MasterCard Strategy


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

1. Drivers – Revenue Based or Metrics Based2. Actual from Oracle General Ledger3. M1: Revenues & Directly associated expenses no allocation4. M2: Dedicated expense mapped to country5. M3: Support expense allocated to country6. M4: Overhead expenses allocated to country7. Actual from Oracle GL gets allocated using the guiding principle8. Simple rule to produce Tiered P&Ls applied after allocation9. Validation reports are run to ensure data accuracy10.Results published via Prebuilt FR or SmartView

MasterCard Solution Overview


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Margin 1

Margin 2

Margin 3

Margin 4

VarianceExplanation

Fully Allocated P&L


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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.

Cost CtrAccount* Data Type

GeoDivision*

GeoDivision*

Geo*Division

Stage 1 – Financial Detail

Stage 2 – Fin. Pool

Stage 4 – Tier 2

Stage 3 – Tier 1

Cost Pool

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

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

Sum Account/CC to Cost Pool (Direct)

AccountCost Ctr Data Type GeoDivision GeoDivisionCost Pool

1-3-4 Genealogy Allocation Results

1-3-4 Genealogy

HPCM Model Architecture – Stage Design


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1. Planning App to stage, validate inputs and consume

2. Relational model to contract and expand data grain

3. Front end to assign rules4. Prebuilt Tiered report5. Trace Screens

MasterCard Solution Highlights


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1. Trace Screens work at allocation grain2. Need a reporting solution to make end user

consumption easy3. HPCM is a maturing product4. Success or Failure depends on the

partner’s experience – project completed on time and on budget

MasterCard Lessons Learned


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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

MasterCard HPCM Future Plans


Profitability and Cost Management at Mastercard Worldwide

Data & Analytics