50 118-898

<Insert Picture Here>
EPM Roadmap Update

Albert Kim
EPM Sales Representative
Enterprise Performance
Management is a Discipline
that Enables Management to:
Link strategies to plans and execution,

Monitor financial and operational results
against goals, and applying analytics to
Drive enterprise-wide performance

improvement.
Copyright 2010, Oracle and/or its affiliates. All rights reserved.
Market Pressures Demand Effective

Performance Management
ECONOMIC
VALUE ADDED
(EVA)
OPERATIONAL
PLANNING
Todays Reality: Management

Processes Are Fragmented
VARIANCE
ANALYSIS
Lack of business alignment

ANALYZE
GOAL
PERFORMANCE
SETTING
Low predictability in performance

FINANCIAL
MODELING
SCORECARDS
Inconsistency in business
decisions
FINANCIAL
REPORTING
MONITOR
ROLLING
RESULTS
FORECAST
Management Excellence:
The Next Competitive Edge
Competitive
Advantage
Smart Deep Insight

Agile
Decisive Action
Aligned Across the Enterprise
MANAGEMENT EXCELLENCE
Cost Lean and Mean

Quality Six Sigma, TQM
Speed Real-time, JIT
OPERATIONAL EXCELLENCE
Time
Oracles Process Framework for Achieving

Management Excellence
Rationalize your management systems

Integrate with operational systems
Share insight across the enterprise
Stakeholder Environment
Gain to Sustain ensures that the business gains all

the necessary contributions from its stakeholders to
drive business performance, while meeting the
required stakeholder expectations.
Mitigate Risk: Increased pressure on regulatory reporting

Cost Control: Tighten grip on outsourced activities, share cost
pressure with partners and suppliers
Build Trust: Be transparent to regain access to capital, and
improve customer loyalty
Copyright 2008, Oracle and / or its affiliates. All rights reserved. - Internal Use Only
Customer Successes
Made population, economy, and environment data
available for online users
Minimized the need for support from the IT team

Ensured data quality
Deliver BI to 1M merchants about marketing performance
Ability to understand what ads are successful, and where
to
run them
Ensure customer satisfaction via reporting

Supported reporting solution with fewer than 10 IT staff
Received high customer service ratings in 14 categories
Unified system for financial and sustainability reports
Automated calculation of emissions
Critical data disclosed at the same time schedule
Market Model
Investigate to Invest is the management process
for identifying, evaluating and creating the most
attractive market opportunities that generate the
highest returns.
Mitigate Risk: Focus on most profitable products, customers

and markets
Cost Control: Benchmark performance against competitors
Build Trust: Provide guidance with confidence
Customer Successes
Accelerate assessment and integration of acquisitions

Test scenarios for their impact on performance
Set earnings guidance for Wall Street
3-month strategic planning cycle

5-year plan for earnings and share price
Simulations on store openings and closures
Increase the probability of project success

Advanced financial modeling of strategic projects
Model technical risk and cost uncertainty
Business Model
Design to Decide is the strategy formulation
management process for designing the business
infrastructure and partner network to deliver value to
customers in the most profitable way.
Mitigate Risk: Use scenario analysis to prepare for different

future realities
Cost Control: Use financial modeling to find cost saving
opportunities
Build Trust: Communicate your strategy clearly to all involved
Industry Specific Solution : Corporate Credit Management
Solution
Customer Successes
Survive a Financial Crisis

Lost investment-grade credit rating,
credit rating back to investment

grade
$4 Billion debt restructuring
Simulate capital structure and cash
flow
3% accuracy in net income
projection
Corporate Credit Solution
Value: Efficiency decreased

Underwriting time by roughly 6 hours
per deal (from 8 to 2) Standardized
analysis all Credit Reports for Credit
Committee are locked down reports in
application
Functional Use: Underwriting, account

management / credit analysis
Business Planning
Plan to Act optimizes capital and resource
allocations across the organization in order to
effectively execute its strategy. This process involves
budgeting, planning and forecasting.
Mitigate Risk: Align all activities and resources with the shortterm crisis strategy
Cost Control: Use integrated planning principles to increase
operational grip
Build Trust: Use rolling forecasts to stick to reality (instead of
sticking to a static budget from before the crisis)
Industry Specific Planning : Financial Services Balance Sheet
Planning, Position Based Planning for PS, Project Planning
Customer Successes
6mo rolling forecast by retailer per item

Match purchasing with forecast
Top ratings from retailers
Close partnership with BestBuy
Centralized rolling forecast

2 days P&L reporting
Instant online access
Aligned with corporate goals
4.5 weeks for first budget

Reorg down to 24 hours
Detailed budget 700 accounts
Phase 2 budget to 60,000 people
Multidimensional analysis
Detailed competitive benchmark for 32 countries

Sales analysis down not only by model but by sales
channel,
fuel type, chassis type, etc.
Business Operations
Analyze to Adjust is the management process for
analyzing trends and deviations -- and their root
cause -- from an organizations goals in order to take
corrective actions.
Mitigate Risk: Monitor operations closely to immediately spot

deviations
Cost Control: Use leading metrics to predict cost
consequences of operational decisions
Build Trust: Turn analysis into immediate action to make
necessary changes
Profitability Management : Multistage & Microcosting, ABC ,
ABM
Customer Successes
Controlling Cost in Period of Rapid Growth
Detail level profitability planning & budgeting
Allocating % 0,1 margin to product, customer/contract
type better
Improved and faster analyses for strategic

and operational decisionsdays to minutes
Improved vehicle delivery efficiencies on higher volume

with small growth in staff
$1 million in savings thru automatic reporting
and reconciliation of payments to carriers
Cadbury France Improves Profitability Analysis for its

Product and Promotions
Analyze more accurately promotion profitability, which is

a key element in Sales strategy
Better understand seasonality in demand for products
Consolidate product monitoring, post merger
Business Results
Record to Report is the management process for
providing strategic, financial and operational
feedback to all stakeholders inside and outside the
organization, to understand how a business is
performing.
Mitigate Risk: Do not allow spreadsheets, multiple tools and
many versions of the truth
Cost Control: Introduce Flash Reporting for immediate
operational feedback, minimize cost of management processes
Build Trust: Introduce a Fast Close
Regulatory Compliance : XBRL Reporting, SII QMR reporting

Customer Successes
Worlds leading aluminum producer

Global consolidation across 58 LOB, 5 days
Global forecasting, reporting for 1,000+ users
World-class fast close
Allowed users to match up results with plans, budgets, and

forecasts for swift responses to market
Reduced monthly report time from one week to 30 minutes

Enabled automatic transfers from back-office accounting to
analytic applications
Manages multiple acquisitions per year

Financial consolidations on top of SAP
Monthly consolidation process down from 5 days to 2 or 3
days
Oracle Provides Key Capabilities

Complete, Open & Integrated
EXTERNAL REPORTING
STRATEGIC & PREDICTIVE MODELING
INTEGRATED BUSINESS PLANNING
PROFITABILITY & COST MANAGEMENT
SCORECARDING, MONITORING & ANALYSIS
FINANCIAL & MGMT REPORTING
BI TOOLS & BI APPLICATIONS, REAL-TIME MONITORING
OLAP, DATA WAREHOUSE, DATA MINING
DATA INTEGRATION, APPLICATION MANAGEMENT & MASTER DATA MANAGEMENT
Market-leading Performance Management

Applications Suite
Planning and Budgeting
Strategic Planning
Cascade
Targets
Set Strategic
Objectives
Treasury
Strategies
Long-Term
Planning
Corporate
Development
Financial Close Process
Detailed
Budgeting
Forecasting
EPM Governance
Shared Master Data
Lifecycle Manager
Data synchronisation
Allocate
Resources
Cost & Profitability Management

Define Costing
Methods
Data
Cleansing
Consolidate
Audit & Certify Financial results
Internal
Reporting &
Analysis
External
Reporting &
Analysis
Report &
Analyze
Define Cost
Drivers
Perform
Allocations
Governance, Risk & Compliance
Oracle EPM Connects Management

Processes
Common Reporting & Interaction
Strategy Management
Planning & Forecasting
Financial Close
Profitability Management
Common Integration & Analysis

Data Quality and Consistent Dimensions
21
Oracle Hyperion EPM Applications Roadmap Some planned content highlights
Hyperion EPM 11.1.2.2

Hyperion Strategic Finance
Smart View Integration
Hyperion Planning 11.1.2
Available
New Public Sector Budgeting module
Hyperion Planning
Hyperion Planning
Project Planning module
Core Planning Features
Configurable & data driven

workflows
Conditional formatting
Predictive Planning
Hyperion Financial Management
Configurable Dimensionality
Smart View extensions
Financial Close Analytics Dashboards
Oracle tech stack optimization
Financial Close
Account Reconciliations
EBS/Fusion Integration
Hyperion EPM 11.1.2.1
Disclosure Management
Upgrade from prior releases

iXBRL HMRC Income Tax Returns
PSFT & Financial Close Mgt. integration
Collaborative document authoring

Smart Rounding & Footing
Micro-costing in Profitability & Cost Mgmt.
March 2012
Oracle Fusion 1.0
Whats New ? Whats Coming ?
Strategy Management
Financial Close

23
Key Capabilities
Accelerate Reporting and Reduce Cost of Compliance
Manage Financial Close
from Subledgers to Filings
Consolidate and Report Financial

Results
Copyright 2010, Oracle and / or its affiliates. All rights reserved.
Integrate with ERP Sources and

Ensure Financial Data Quality
Ensure High Quality Report Submissions
24
Critical Components to Implement

Financial Close Best Practices
Dashboard
Oracle FinancialCFO
Management
Analytics (OFMA) *
Governance, Risk & Compliance
Financial
CloseClose
Workflow
Hyperion
Financial
Manager
ERP:
Oracle, SAP,
Legacy, Other
Hyperion
Financial
Data Data
Quality
Assurance
Management
Tax
Calculations
Hyperion
Financial
Financial
Consolidation
Management Financial
Financial
and
Reporting,
Essbase
Mgmt.
Reporting
Transactions
Tax
Filing
Hyperion
Document
Disclosure
Management
& Filing
Management
Reporting
New products
Sustainability Starter Kit
Reporting Solution for meeting Solvency II
requirements
25
Oracle Financial Management Analytics Features

Prebuilt Dashboard for Finance Execs
Single Source of Truth for CFO
Hierarchy Drills
Enables
drilling
into details
OBIEE
HFM\FCM
Data Security
Visibility based on
security access
rights in hfm.
Seamless Integration
Single Sign on
and workspace
integration *
Company Confidential Version for Internal Use Only
26
Financial Management Analytics Contents

Executive
Gross profit by Region, Income by Region, Net Cash Flow, P & L by products
Process Management
PM Metrics, PM Trend Analysis, PM Overall\Entity Status
Performance Indicators
BS Ratios YoY comparison table, BS Ratios components, BS Ratios Trend
Analysis
Profit and Loss

Summary Income Statement, Variance Analysis, Trend Profit and Loss
Gross Profit
Variance Analysis, Gross Profit by Product, Trend Gross Profit
Balance Sheet
Consolidating BS, BS metrics, Variance Analysis, Trend BS
Cash Flow
Cash Flow Summary, Consolidating Cash Flow, Variance Analysis
Currency Analysis
Variance Analysis using constant rate.
Financial Close Schedule Summary
Schedule Summary, Schedule Graph, Schedule Milestones\Roadblocks
27
30
FCM - Account Reconciliation Manager
Reconciliations are a major

bottleneck in the close
process
Ensuring completion and enabling
audits are key requirements
New in 11.1.2.2: Account

Reconciliation Manager
Designed to manage global
reconciliation processes: Balance
Sheet, Consolidation, Local GAAP
Streamlined, workflow-driven and
auditable processes
Delivered as part of Oracle
Hyperion Financial Close
Management
March 2012
Account Reconciliation Manager Overview

Typical workflow
Load Balances
Auto Reconciliation
Email Notifications
Preparation
Review
Late Notices
Monitoring
ARM will be the killer app for

FCM
Functionality in V1 will be
competitive in the market vis-vis specialist vendors
Working through validation
sessions with field and
customers
Future Direction Integrated Reporting
Integrated Financial/Sustainability Reporting

Reporting & Analysis Tools
Report/Model/ Analyze/Benchmark
FINANCIAL
P&L
Cash
Flow
NON-FINANCIAL
Balance
sheet
Environment
Economic
ROCE
EBITA
P/E
etc.
Oracle Hyperion
Financial Management
+
Social
Capture
Report
Store
Sustainability Reporting
Application
Oracle Hyperion Financial Management

Sustainability Reporting Starter Kit
Capabilities
Collects and Consolidates Data from Multiple
Systems and Units
Ensures the Accuracy and Auditability of
Sustainability Reports
Aligns Sustainability Reporting with Financial
Reporting
Key Features
GRI-based Chart of Accounts and Task Lists
Pre-Built Web Data Entry Forms, Direct Data
Integration
Pre-Built Conversion Calculation Rules
Full audit trail, process management and security
Advantages
Single system for financial and non-financial reporting
Leverage existing investments in Hyperion Financial Management
Deploy quickly with pre-built application
Sustainability Reporting Task List
Tasklist displays different GRI Performance

Indicators
GRI Performance Indicators are divided
into separate folders with subfolders
Web Data Entry Forms
Conversions
Dashboard (OBIEE) Environmental

Information
Sustainability Reporting Successes with

Hyperion Financial Management
Telenor Norway
Stora Enso - Finland

Corporate Express - Netherlands
Dong Energy Denmark
Intesa SanPaolo Italy
Others
Three Pillar Requirements

Three Pillars of Solvency II
Requirements
Minimum Capital Requirement (MCR)

Solvency Capital Requirement (SCR)
Technical provisions
Internal model or standard formula
Regulatory approval
Key Issues
Understanding Risk dependencies

Capital aggregation & allocation
Control & repeatability
Quality of risk data
Actuarial/Risk Calculation Engines

Solution
Market
Credit
Risk Engines
Compute Grid
Insurance
Pillar 3
Transparency
Pillar 2
Risk Management
Pillar 1 Capital
Adequacy
Operational
Risk management processes

Own Risk & Solvency Assessment
(ORSA)
Use Test Implementation
Model and Risk Management
documentation
Consistent risk management

Security, audit, control processes
Embedding risk culture in business
Information readily available to
business e.g. solvency monitoring,
capital allocation
Market Disclosure - SCFR

Transparency
QRT/SCFR/RSR
QMR
Robust mechanisms and

processes for external reporting
Providing consistent information

on a timely basis
SII Technology Platform

Enterprise deployment
Audit, security & control technology
Computing power
Data Management
Collaboration/integration
Real-time Reporting
Analytics
Dashboards
Proposed Technology Infrastructure for Solvency II

Reporting/Analytics Engine
Product
Development
Source Data
Financial
Systems
Policy
Systems
Claims
Data Warehouse
ETL & Common Staging Area
General
Ledger
Management
Reporting
SII
Reports/Analytics
Actuarial/Financial
Data
Operational Data
IFRS
Continuous Solvency Monitoring

Dashboards
What-If & sensitivity analysis
Performance Management
Actuarial & Risk Engines
Operational
Risk
Economic
Capital
Aggregation
Insurance
Risk
ALM
Cash Flows &
Valuation
Credit
Policy
Risk
Data
Market
Risk
Stand
ard
Source: IDC Financial Insights
Strategic
Pricing
Budgeting
Meta Data Management, Reconsolidation Framework & Process Flow Automation
Compute Grid
Product
Profitability
Financial
Planning
Model
Audit, Security & Control
Financial
Consolidatio
n
Replicating
Portfolios
ESG
Investment
Systems
Financial
Consolidation
Reporting Process Flow

SII Data
Warehouse
Source Data
Projection Engine
General
Ledger
Operational
Risk
Financial
Systems
Data ETL
Policy
Systems
Risk
Aggregator
Projection
Data
Insurance
Risk
Credit
Polic
Risk
y
Reports
inancial
Consolida
Economic
Asset Liability
tion
Modelling Capital
Aggregation
Results
Data
MCR
Results
Data
Replicating
Portfolios
SCR
MCEV
Data
Claims
Market
Risk
Investmen
t Systems
Stand
ard
Model
IFRS
ESG
Step 3
Assumption Data
ESG (1000)
Step 1
Mortality Tables
Step 4
Economic Capital
Un-weighted Cash Flows
Yield Tables
Diversification Matrices
Step 6
Analysis
Reports
Technical Provisions
Policy Data
Step 2
Step 5
Analysis
SCR/MCEV/MCR/QIS5
Analysis
Asset Data
Analysis
Analysis
Expected Solution Roadmap

1.
Compliance Phase
A. Quantitative Management Reporting (QMR) 1.0.1
B.
C.
2.
November 2011
HFM application
QIS5 reporting requirements
Precursor for QRT
QMR 2.0
Early 2012 *(expected date but no commitment)
HFM Application
Full support for QRT reporting requirements
Includes XBRL, Process best practices, etc

QMR 2.1
2012
HFM Application
Full Support for SFCR and RSR reporting
Consolidation Phase
A. QMR + OFSAA
QRT Reporting +
Data Warehouse supporting actuarial, risk and financial data
What is QMR for SII? (Quantitative Management Reporting)

Out of the Box solution for SII reporting QRTs, SFCR, RSR
Based on the existing Oracle financial consolidation engine

Hyperion Financial Management (HFM)
HFM comprises:
Powerful Financial Consolidation Engine with process flow controls
(HFM)
Data Quality and Integration Tool (FDQM)
Reporting (Disclosure Management)
QMR is a dedicated application that operates with the HFM
environment to specifically provide for QRT, SFCR,RSR functionality.
The QMR application will be maintained and developed by Oracle to
keep pace with EIOPA regulations
45
Process Flow of Oracle QMR Solution

Processing
QRT Report structures

Actuarial
QMR
Dimensionality to support QRTS

SFCR/RSR Templates
Asset
Process Management
Rules Engine
Validations
other
HFM
Journals
Audit Tracking
Inter-company Processing
ETL
Report Generation
(pdf/html/MS Office)
User Driven ETL
Adjustments
Data Load Repository

Manual Entry
Audit, Security & Control
FDQM
Explanations
XBRL Tagging
Drill-through
Source
SFCR
QRT Data forms
RSR
QRT specific calculations

Financial
QRT
Reporting
Disclosure Management & FCM
Data
Sources
OBIEE, Smart View & Financial Reports
SII
Cycles
Mappings
Target
Qualitative Text
Dashboards
46
Oracle EPM Connects Management Processes
Strategic Planning
Financial Close

47
Enterprise Planning
Products
Predictive
& Simulation
Crystal
Ball Modeling
/ Predictive
Planning*
Functional Plans
Strategic
Long-Term
Finance
Financial
Planning
OSSM
Workforce
Workforce
Planning
Planning
Capital
Capital Assets
Expense
Planning
Planning
Project
Project
Financial
Planning*
Planning
Marketing
Planning
Operational
Revenue & Cost
Modeling
Planning,
Budgeting
& Forecasting
Hyperion
Planning
Financial
Detail
Operational
Detail
Verticalized Planning Apps

Balance Sheet Planning
Public Sector Planning & Budgeting
48
Strategy Management
Financial Close

49
Future Release
11.1.2.2
Strategy Management
Financial Close

51
Hyperion Project Planning Application

Project Planning Lifecycle - EPM Vision
1
Plan &
Propose
Rank &
Fund
Assign
Budgets
Schedule &
Assign
BI Apps
2011 Oracle Corporation Proprietary and Confidential
13
Monitor &
Report
Forecast &
Simulate
Establish
Projects
WBS &
Resource
Hyperion Suite
12
Approve &
Budget
11
Revise &
Approve
10
Procure &
Bill
Accounting
& Commits
14
Execute &
Measure
ERP Projects
Update &
Revise
ERP GL
Project Tools
Future Release
11.1.2.2
Hyperion Enterprise Planning Suite R11.1.2.2

Project Planning - Key Cross-Functional Capabilities
Hyperion Projects Planning
Contract, Capital & Indirect Projects
Resource Level Expense And Revenue
Overheads/Burden Cost Forecasts
Driver Based Revenue And Expense
Intercompany Projects and
Reconciliation
Impact Analysis
Funding Requests & Project Approval
Flow
ERP Projects / GL
Project Initialization
Financial Work Structure (FWS) for
Budgets / Actual
Project level Budgeting for FWS
Cost management, procurement, billing,
accounting
Earned Value calculations at various
FWS levels
Control of Service Spends/Payment
Verification
2011 Oracle Corporation Proprietary and Confidential
Project Analytics
Project Funding and Budget Analytics

Product Cost Analytics
Project Revenue Analytics
Project Billing Analytics
Project Profitability Analytics
...
Project Portfolio Management

Create execution Work Breakdown
Structure (WBS)
Assign / schedule resources
Track progress of project tasks within
each WBS
Optimize Scheduling and Capacity
Planning
Predictive Planning
Functional details
Statistical prediction scenarios can
be built into Planning
Enables sanity check during forecast
cycles
Ability to compare accuracy of
forecasts vs. statistical predictions
Uses Crystal Balls Predictor to
analyze historical data and projects
trends and patterns into the future
Users review forecasted values,
override if needed, then submit back to
Planning
Automatically forecast best and worst
case scenarios in addition to base
case
Future Release
11.1.2.2
Strategy Management
Financial Close

55
HPCM The Opportunities
Strategic
Value
Industry
Value
HPCM
Opportunity
Feature
Value
Strategic
Value
HPCM
Opportunity
Industry
Value
Industry
Top of Mind Business Drivers
Every industry
Shared Services
IT/HR/Finance/Marketing/Faciliti
es
Driver-Based Planning
Operational Efficiency
Process Change/Re-engineering
Benchmarking
Capacity Utilization
Product Profitability
Customer/Customer Segment
Profitability
- Cost only, or
Cost & Revenue
- For Profit or Not
for Profit
- Large or SME
HPCM
Opportunity
Industry
Value
HPCM
Opportunity
Industry
Top of Mind Business Drivers
Financial Services
Financial Svcs
Insurance
Financial Svcs Invest.
Mgmt
Sales Channel Costing, Service Channel Costing, Transaction-Type

Costing
Policy/Plan Profitability, Claims Efficiency
Fund Profitability, Investment Desk Costing
CPG
Strategic Sourcing Decisions, SKU Decisions, Supply Chain Costing
Distribution and Logistics

Transportation
Cost-to-Serve
Cost-to-Deliver (Pay Load), Route Profitability
Utilities
Regulatory Compliance
Price Rationalization
Communications
Network Costing, Customer Profitability, Subscription services cost

to serve
Healthcare Provider
Healthcare Payer
Treatment Services Costing, Medical Specialty Costing

Medical Loss Ratio, Medical Plan Profitability, Actuarial Pricing
Rationalization
Retail
Pricing Justification, SKU Rationalization, Margin Optimization
Manufacturing
Supplier Profitability, Supply Chain Costing, Contract Negotiations,

Job costing
Public Sector Government
Supplier Costing, Cost Recovery, Statutory and Regulatory Mgmt

Accounting
Future Funding Justification, Job costing, Project Costing
Feature
Value
The Challenges Your Customers Face

Almost every customer will have some sort of
costing/profitability solution in place now
Most of these solutions are homegrown
Common feature level challenges:
Accuracy & Effort
Visibility & Credibility
Control and Ownership of older Black Box solutions
Examination of these strategic, industry and

feature challenges leads to opportunities for
Hyperion Profitability & Cost Management
HPCM
Opportunity
Hyperion Profitability and Cost Management

Packaged Cost and Profitability functionality
Computes Cost/Profitability for Business Segments,
and Products
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 Metadata via EPMA
Shared Reporting Tools like Financial Reports & Web
Analysis
Proven Technology Stack
Supports all Levels of Costing and

Profitability Objectives
Who are the most and least profitable
customers?
Cost and
Revenue Allocation
Calculations
Cost and Profitability

Reporting
What is a customers
profitability?
Allocate
Why are customers

profitable or
unprofitable?
Cost, Revenue and

Profitability
Analytics
Cost and Profitability

Simulation
What can we do to
improve the situation?
Analyze
Performance
Improvement
HPCM current modeling style

Current Modeling Method and Model Type
Traditional profitability models manipulate ledger data
Cascade costs from back office to front office functions
Extends ledger data with additional business dimensions
Back Office
Mid Office
Front Office
Cost to Serve
Products
Business Intersection
Product / Region / Channel /
Customer Segment
Dimension Intersections
Gaps in Traditional Methods

Dimension groupings mask unique cost behaviors
Location or item specific costs
Order handling
Customer specific behavior
Analysis options are pre-limited by summarizing data

Analysis dimensions are chosen once never change
Dimensionality of product or customer is sacrificed
New Detailed Profitability

New Modeling Method and Model Type
Detailed Profitability focuses on business interactions
Takes ledger developed pools and rates current HPCM
Applies them to atomic level transactions/business interactions
Back Office
Mid Office
Cost to Serve
Front Office
Products
Business Interactions /
Transactions
Potentially millions of unique
items
20+ Dimensions
Rows of Data
Future Release
11.1.2.2
Model Type Comparison
Multi-Stage Models
New Detailed Models
Primary Use: Cost

Development
Primary Use: Apply Cost and

Revenue to details
Multi-Step allocations of dept

to dept, dept to activity,
product etc.
Single step allocation of

pools or rates to cost & profit
objects
May develop data to feed

Detailed Profitability models
May use data from Multi-Step

model or external data
Contribution analysis focused
Focused on detailed analysis
Driving profit is not just game theory

Activision Publishing develops, markets, sells and distributes interactive
software entertainment products. Understanding the business by region,
game title and down to retail/distribution customer is key to maximizing
margin and enabling the management to improve performance.
Before
Rapidly expanded performance
management, from 20 management

units and 500 products to over 150
management units and 1,500 products
Incentive plan goals were not were not
able to be aligned to profitability but
only focused on revenue
Increasing reporting and analysis
demands with exploded data volumes
overwhelmed the multiple
spreadsheets
Needed to model annual plan and
forecast scenarios as well as actuals
After
HPCM is the strategic solution to
focus the Field Sales organizations

on driving profit not just revenue,
its about changing the behavior
of Sales
Enabled profitability analysis across
all regions, countries and products,
with detailed analysis and reporting
down to customer
Extends existing Oracle ERP, EPM
and BI investments; integrated with
Planning and provides actual
allocations for G/L
Evaluate Product Mix to Maximize

Profitability
Regional bank serving 19 Western and Midwestern
states and 4 million households. Over $60B in assets
with more than 10,000 employees.
Before
IT resources demand exceeded
capacity for profitability reporting
Needed business users to drive
profitability modeling
Lack of insight how shared costs
impacted economics of the business
Challenge to optimize product mix that
maximizes bank profitability
After
Minimal IT involvement
Easy integration into EPM system
infrastructure
Ability to offer a basket of products by
mixing and matching products
according to customer demographics
Benchmarking costs for developing
and marketing new products
M&G Investments
Select Oracle EPM over Clarity Systems
COMPANY OVERVIEW
M&G are an investment-led business which is driven by

performance.
They look after investments for nearly 334,000 investors,
with over 178 billion under management invested in equities,
fixed income and property. Assets are managed on behalf of a
wide variety of investors across UK, Europe, Asia, the
Americas and South Africa.
Industry: Financial Services

Funds Managed: 178B
CHALLENGES
M&G needed to replace a disconnected process and the
many spreadsheets which had built up over the years with a
centralised planning system
M&G were using ALG Metify (now SAP) but this was proving
too rigid for future requirements with only three possible
levels of allocation
SOLUTION Hyperion Planning, Hyperion Financial Data
Quality Management, Hyperion Profitability & Cost
Management
Internal Use Only
Why Oracle?
M&G were impressed with the
Oracle team and how fast they were
able to develop a working
application to cover their complex
income modelling requirements in
less than 1 week.
Superior functionality of Oracle
Hyperion Planning
Advanced capability and great
usability of HPCM which Clarity
would have tried to build in
Essbase
Oracles integrated EPM portfolio
(Planning, HPCM & Essbase with
same reporting, consistent data
integration)
Controlling Cost in Period of Rapid Growth

As the 4th largest Water Utility in UK, Scottish is a Regulated
Utility Serving 2.4 M households. It has annual revenue in
excess of $1.5B.
Before
Proposed Solution
Need to understand Cost Drivers:
Convince customer that Oracles Hyperion

EPM System can meet their Costing,
Management and Reporting requirements:
Cost transparency for regulatory

reporting to support price
negotiations
Understand and manage costs within
its business to increase profitability
Customers Existing Environment:

SAP BO Profitability, BOBJ BI
Hyperion Pillar, PSFT Financials
Sales Challenges:
Failed attempt to sell Hyperion
Planning 18 months earlier
Customers predisposition to SAP
HPCM is a new product with few
references
Position HPCM and Planning as two modules

of an integrated EPM system vs. SAPs two
product approach
Show how HPCM and Planning together can
deliver cost analysis and build new scenarios
to support their planning and forecasting
process
Products sold:
HPCM, Planning, Workforce Planning, FDM
TSTT phones in to HPCM

COMPANY OVERVIEW
Telecommunications Services of Trinidad and Tobago (TSTT) offers
a complete range of telecommunications services to the people of
Trinidad and Tobago. Specifically these consist of landline, mobile,
data and broadband services.
In 2005 wireless licenses were granted to two new wireless
carriers, introducing deregulation and competition. Since these
competitors must lease core landline from TSTT, regulators need to
be able to verify that the prices TSTT charges their competitors is
fair based on their cost.
Why HPCM?
Ease of maintenance
Built-in traceability
Simplified regulatory compliance
CHALLENGES
Provide a mechanism to accurately allocate revenue, operating
expenses and cost of capital to TSTTs service offerings
Provide traceability of these allocations back to the audited
financials
Provide a simple method to communicate the allocation
methodology to regulators.
CUSTOMER PERSPECTIVE
Significant reduction in the amount of
maintenance for allocation data that was
currently being done in Essbase
SOLUTION HPCM and Essbase
Internal Use Only
BlueCross of MA chooses HPCM

COMPANY OVERVIEW
Blue Cross Blue Shield of Massachusetts headquartered in Boston,
provides coverage to nearly 3 million members BCBSMA believes in
rewarding doctors and hospitals for delivering safe and effective care,
and in empowering patients to take more responsibility, become
educated health care consumers and become stronger partners with their
doctors. Blue Cross Blue Shield of Massachusetts is an independent
licensee of the Blue Cross Blue Shield Association.
CHALLENGES
Keeping pace with the changing Medicare reimbursement regulations
Inability to quickly respond to specific reimbursement requests with
additional supporting documentation
OFA (Oracle Financial Analyzer) sunset
Heavy dependence on IT for Reporting and Analysis
Why HPCM?
Allocation Transparency ability to
document reimbursement requests as a

by-product of the allocation process
Model validation - Confidence in the
numbers generated by the model
Integration with Hyperion Planning and
PSFT GL
Gain ability to predict profitability for their
LOBs
One Solution, One vendor
SOLUTION HPCM, Planning, FDM
Internal Use Only
Medicare reimbursements are the

lifeblood of our organization. Being
able to accurately document the
reimbursement requests means that
we getting paid quickly and completely
for the claims we process - Kevin
Lyter, Director, Medicare
Reimbursements
Correlating Administrative Cost to Pricing

Blue Cross Blue Shield refines their Forward Rate Pricing
2.8 Million Insured Medical Members
$13 Billion in premiums, 4000 employees
Before
New healthcare reform
legislation requires healthcare

Insurers to provide detailed
reporting on Medical Loss
Ratio.
Need to accommodate the
regulatory introduction of
Regional healthcare
exchanges and expansion of
Medicare and Medicaid
Cost of shared operational
centers (Claims Processing,
Utilization Review) not
mapped to pricing
After
Quantified medical loss ratios to
meet federal requirements using

traceability maps, significantly
reducing audit costs and time
Revised Medicare reimbursement
billing to recoup claims processing
cost which were previously
swallowed
Improved actuarial costs to refine
bids on future business
Decision making, benchmarking
vs. competition driven by
profitability analysis
EmblemHealth insures with HPCM

COMPANY OVERVIEW
EmblemHealth was formed as a result of the merger between HIP
HealthPlan of New York, and GHI Group Health Inc. It is now the
largest health insurer based in New York, serving more than 3.4 million
geographically and culturally diverse members, with more than 92,000
participating providers in 150,000 locations throughout the tristate region.
Groups and individuals can choose from a variety of PPO, EPO and HMO
programs as well as prescription drug, dental and vision plans. Plans
offer a choice of networks, including access to over 106,000 quality
doctors and other health care professionals and most of the leading
hospitals across the tristate region.
CHALLENGES
Existing Excel-based allocation system was too rigid to meet their
post-merger market expansion needs. It was also getting too
expensive to maintain.
IT was not responsive enough to create extracts from their G/L system
for data feeds.
Inability to easily link actuarial information with internal budgets to drive
pricing programs.
Existing PSFT Budgeting and Planning solution wasnt meeting their
needs, post-merger.
SOLUTION HPCM, Planning, FDM
Internal Use Only
Why HPCM?
No coding for defining and maintaining
allocations
Users could develop and maintain the actuarial
allocation system, without having to depend
upon IT.
Integration with Hyperion Planning and PSFT
G/L
One integrated solution from one vendor
The finance team can now set up their

own models , change the drivers, and
maintain the pricing models with IT
providing operational support. The
Finance and Actuarial organizations are
now in a position to manage and drive
their business - Chuck Lomicki
Director, IT
Solvency II
Solvency II was initiated by the European Commission to fundamentally change
the European insurance solvency framework when it is implemented in January
2013.
Solvency 2 will apply to all insurance and reinsurance firms with gross premium
income exceeding EUR 5M or gross technical provisions in excess of EUR 25M
Solvency II evolved from the Basel II three pillar approach to Banking regulation. It
is designed to produce a more consistent solvency standard by ensuring that
capital requirements are more aligned to the risks being accepted.
The new regulatory regime is designed to provide a principles-based supervisory
framework for European insurers and reinsurers
Replaces 14 existing insurance directives
The risk-based system will put an understanding of risk and capital at the heart of
insurers business decisions, basing the amount of capital an insurer is required to
hold directly on the risks it is exposed to.
The intention is to ensure that insurance companies hold sufficient capital to
withstand a loss so severe it would happen only once every 200 years. For
organisations to effectively quantify this level of capital, many will have to develop a
more accurate view of what their risks are, and how much capital should be held
against each of them.
Solution Architecture
Data Sources
Policies
+
Claims
+
Market Data
+
Asset Data
HR
+
ERP
+
CRM
OFSAA
Common
Staging
Area
Customer
+
Policy
+
Assets
+
Financial
+
Actuarial
Financial
Data Quality
Management
MS Office EPM SmartView
Hyperion
Financial
Management
+
QMR Application
OFSAA
Common
Results
Area
Financial
Store
+
Risk Store
+
Actuarial
Store
Actuarial
Financial Close Management Solvency II process mgmt / best practices
Assumption
Sets
Web Interface EPM

Workspace
Financial
Reporting
Financial Reporting
(QRT, SFCR,
RSR)
+
(IFRS,
Management
Reporting)
Disclosure
Mgmt
XBRL
OBIEE
Alerts
+
KPIs
+
Dashboards
QMR Application within HFM

Pre-Built application that supports (both independently and in conjunction with
Oracle S-II Repository) the generation of the QRT reporting requirements as
prescribed by the European Insurance regulators (EIOPA) for both for solo
and group reporting
Incorporates calculations for SCR/MCR and Diversification calculations
Our approach and release management will support future upgrades in the
underlying platform (HFM) and future regulations e.g. QRTs/
SFCRs/RSRs.
QMR supports both Life, Non-life business and composite Insurers
Capability for the customisation of QRT templates (for local regulator
requirements) and generation of user specific templates
QRT specific calculations

QRT Data forms
QRT Reports
Dimensionality to support
QRTS
SFCR/RSR Templates
QMR
HFM (Hyperion Financial Management)

Hyperion Financial Management Powerful Financial Consolidation Engine
designed specifically for the Annual Reporting process
Calculation capabilities to support SCR, MCR and Diversification calculations
Inbuilt process flow to support the QRT process

Sophisticated Rules Engine to provide controls and validations (cross checks
and validations on input data) both built-in and user defined
Consolidation support (currency translation, IC elimination and possibly equity
elimination) for entity structures/product structures
Full Audit, Security and approval and sign off procedures from local sets to
Corporate (divisions)
Embedded best practices to support multiuser multi-data source collaboration
around a set of regulatory reports).
Process Management
Rules Engine
Validations
Journals
Audit Tracking
Inter-Company Processing
HFM
FDQM (Financial Data Quality Management)

Financial Data Quality Management - Integrated tool to enable data
loading into the HFM/QMR environment
Automated ETL routines direct from source systems:
GLs/Financial Systems
Actuarial engines MoSes, Prophet, Igloo, ReMetrica etc
Asset Systems
User Driven ETL
Data Load
Excel Spreadsheets
Repository
Flat files
Audit, Security &
Control
RBDMS
Drill-throughMappings
Source
SAP, PeopleSoft and EBS direct connectivity
Manual, Batch and scripted/scheduling options
Data loading procedures from HFM IFRS consolidation engine (to load
Balance Sheet and Profit Loss information). IFRS information easily
loaded from non-HFM statutory consolidation engines as well
Full audit and control capabilities to ensure data integrity
Drill through back to source details
FDQM
Target
Embedded XBRL tagging support, taxonomy management and instance

document creation and validation
Financial Close Management

Facilitate collaborative working on the Solvency II Calendar between risk and
finance teams via a unified task list with critical path visibility
Workflow Management & Monitoring

Dashboards for process trending analysis and process improvement
Oversight & Sign off
OBIEE*
Dashboards and highly graphical analysis providing the ability to combine
Pillar III data with other sources (optional module)
QRT
SFCR
RSR
run on demand
MS Office integration for query via Excel and with Word and PowerPoint
Disclosure Management
Provides extensive capabilities based on Word for the addition of the
qualitative requirements of the QRT, SFCR and RSR reports
Disclosure Management & FCM
Financial Reports & Smart ViewTM

Embedded self service reporting for standard QRTs and ad-hoc analysis
Highly formatted reports available in pdf/html, can be scheduled, burst, or
OBIEE*, Smart View & Financial Reports
Reporting
Report Generation
(pdf/html/MS Office)
Adjustments
Explanations
XBRL Tagging
Qualitative Text
Dashboards
81
Benefits of QMR
HFM/QMR
5. More than just a reporting solution it provides essential capabilities for Pillar
2/3 SII controls:
Data Quality, Auditabilty, ETL
Validations and Calculation capabilities
Embedded process flows with inbuilt approvals and signs-off procedures
Support for Internal and Standard Models
4. Relatively quick implementation process estimated 3-4 months to support SII

reporting - can be quicker in a existing HFM client
3. Fully customisable to an insurers specific legal structures, regulatory environment
and internal requirements
2. Fully supported and maintained by Oracle with a discounted bundled price for
SII reporting
1. Out of the Box solution for QRT- Specially bundled package of HFM/QMR for SII
reporting
QIS5 Financial Reporting & Consolidation Application
Oracle Exalytics- In Summary

Fastest R-OLAP, M-OLAP Business
Intelligence
Fastest Financial and Operational
Planning
Best Cost/Performance BI & EPM
What-if Analysis and Forecasting

16x better response times
More accurate use more detail, include more scope, evaluate wider operations
More scale more users and higher volumes at busy periods
Greater agility do daily instead of monthly
Enterprise Planning
Reduce planning cycle times with 5x better response time and 6x better throughput
Run more planning models with finer grained operational detail to improve accuracy
Extend beyond Finance to every LOB, with 10,000 Planning users on one appliance
Oracle Exalytics Business Intelligence Machine
TimesTen for Exalytics
Memory Optimized
Essbase
1 TB RAM
40 Processing Cores
High Speed Networking
Adaptive In-Memory Tools
Optimized Oracle Business Intelligence Foundation

Suite
In-Memory Analytics
Software
In-Memory Analytics
Hardware
End-user Experience with Exalytics

Speed of Thought Interactive Analysis
Highly Interactive Analysis
View Auto Suggestions
Free Form Data Exploration
Contextual Actions
High Density Visualizations
All on Mobile
How Fast?
Early Customers
With Exalytics running in-memory, we are seeing an
overall improvement of 38x to 70x responsiveness
compared to where are today!
Exalytics produced an average of 18x better
dashboard responsiveness and in cases exceeded
100x in responsiveness compared with our production
system.
Exalytics demonstrated speed-of-thought interactivity
that was so far only possible in desktop solutions we
are ready to move from desktop BI to Exalytics as
soon as the product is out.
Immersive Mobile Experience

Fastest Time to Mobile Value. No Additional Development
Optimized Oracle BI
Foundation Suite
In-Memory
Analytics
Software
In-Memory
Analytics
Hardware
Exalytics user experience extended to iPad

All BI content instantly available to mobile users with zero
extra development
Speed-of-thought analysis available anywhere
Current and Next Generation Analytic Applications

Certified and Optimized for Exalytics
Financials
Sales
HR
Marketing
Procure & Spend
Service
Projects
Contact Center
Supply Chain
Price
Order Management
Loyalty
Logistics
Financial Services
Communications
Strategic Planning
Healthcare
Retail
Oracle Exalytics
Extreme Analytics
Software
Hardware
Solutions
Services
First Engineered System for Analytics

Hardware and software engineered to work
together to provide lowest TCO and risk
Visual Analysis with No Limits

Sense, analyze, plan and respond in real-time
for increased business agility
Smarter Analytic Applications

Large portfolio of existing BI and EPM apps
improve business performance and decision
making
The Exa* Story Evolves

Engineered Systems for Increased Business Value
Oracle Exadata best machine for:
Data warehousing
Database consolidation
Oracle Exalogic best machine for:

Cloud computing
Application consolidation
Oracle Exalytics best machine for:

Business intelligence
Speed-of-thought analysis
Financial and operational planning

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EPM Roadmap Update

Link strategies to plans and execution,

Drive enterprise-wide performance

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Market Pressures Demand Effective

Todays Reality: Management

Lack of business alignment

Low predictability in performance

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Smart Deep Insight

Cost Lean and Mean

Oracles Process Framework for Achieving

Rationalize your management systems

Gain to Sustain ensures that the business gains all

Mitigate Risk: Increased pressure on regulatory reporting

Minimized the need for support from the IT team

Ensure customer satisfaction via reporting

Mitigate Risk: Focus on most profitable products, customers

Accelerate assessment and integration of acquisitions

3-month strategic planning cycle

Increase the probability of project success

Mitigate Risk: Use scenario analysis to prepare for different

Survive a Financial Crisis

credit rating back to investment

Corporate Credit Solution

Value: Efficiency decreased

Functional Use: Underwriting, account

6mo rolling forecast by retailer per item

Centralized rolling forecast

4.5 weeks for first budget

Detailed competitive benchmark for 32 countries

Mitigate Risk: Monitor operations closely to immediately spot

Improved and faster analyses for strategic

Improved vehicle delivery efficiencies on higher volume

Cadbury France Improves Profitability Analysis for its

Analyze more accurately promotion profitability, which is

Better understand seasonality in demand for products

Consolidate product monitoring, post merger

Regulatory Compliance : XBRL Reporting, SII QMR reporting

Worlds leading aluminum producer

Allowed users to match up results with plans, budgets, and

Reduced monthly report time from one week to 30 minutes

Manages multiple acquisitions per year

Oracle Provides Key Capabilities

Market-leading Performance Management

Financial Close Process

Cost & Profitability Management

Audit & Certify Financial results

Governance, Risk & Compliance

Oracle EPM Connects Management

Common Reporting & Interaction

Planning & Forecasting

Common Integration & Analysis

Copyright 2010, Oracle and/or its affiliates. All rights reserved.

Oracle Hyperion EPM Applications Roadmap Some planned content highlights

Hyperion EPM 11.1.2.2

Hyperion Planning 11.1.2

Configurable & data driven

Smart View extensions

Financial Close Analytics Dashboards

Oracle tech stack optimization

Hyperion EPM 11.1.2.1