In Q&A on Management Excellence and Oracle EPM, Part 1 I have answered a number of questions coming from the press briefing I recently did across 16 cities in Asia. Here are some answers to the remaining questions.
"What are the relationships between Oracle EPM and Oracle BIEE or BI modules from EBS? How do these functionalities complement one another?" [Shirley Tsai, DigiTimes, Taiwan]
We have not been sitting still. In a long long list of things we have done in the newest release, integration has been an important theme. Oracle BIEE and Essbase is tightly integrated. Also, you can drill back to operational details (like in the general ledger) from HFM, Essbase and planning, and there are many more examples. But it needs to be said that Oraclea??s strategy is to be open. We are equally open to sit on top of other systems such as SAP, or any other business application or source/target of data.
"Four to five years ago, the discussion focus on EPM/BI was on forecasting and data integration. Today, can you explain/elaborate how Oracle EPM/BI solution can address advancements in forecasting and data integration?" [Mandy Chung, CNET, Taiwan]
Interestingly enough, the forecasting discussion has been relevant in EPM and BI (and predecessor terms) for the last 20 years. OLAP tools used to be called DSS (decision support systems), and they would do all kinds of forecasting already. What is new that the range of forecasting techniques supported has grown, reflecting new business insights. For instance, who heard of real options 10 years ago, in relation to forecasting. Or from the wisdom of crowds? I see this as a constant evolution. One EPM application to check out is Crystal Ball, one of the most popular predictive analytics packages in the world.There has been a major course shift in data integration though. This used to be a set of disparate technologies coming from specialty vendors, and is now basically part of middleware. Enterprises have multiple data sources from multiple vendors and are looking to their middleware to provide better data integration. Oracle EPM can leverage Oracle Fusion Middleware as well as work with 3rd party data integration options, as it has always done so in the past. Ia??d also like to highlight the pre-packaged ETL with the BI Applications as this is a huge competitive differentiator.
a??Oracle, IBM and SAP accquired several BI companies recently. This has made their business models kind of similar. How does Oracle differentiate itself from IBM and SAP in the BI area? How does Oracle integrate BI into its existing business portforlio?a?? [Wu Xiao Bing, China Electronics News]
I dona??t see it as my task to educate the competition with a strategic competitive analysis, so let me concentrate on Oraclea??s strategy ;-). Oracle distinguishes itself from the competition by being the one stop shop for best of breed. Some vendors are one stop shops, but dona??t deliver a variety of business applications. Many vendors offer a piece of the puzzle, but not the whole thing. Through Oraclea??s middleware, you create a single ecosystem, to connect all best of breed applications, whether they are Oraclea??s or not. There is no vendor who does that with the breadth and depth Oracle has.
a??Is Oracle's next generation EPM just another product or a brand new concept? How is it different from its previous EPM systems?a?? [Zhang Zhen, Computer Partner World, China]
Oraclea??s new release is a big release, not simply an update. But it does not represent a major course change. Why would it? EPM applications and technologies need to be open to all kinds of sources and targets, and it needs to encompass strategic, financial and operational management processes. This course was plotted even before Oracle acquired Hyperion, and Oracle is delivering on this course.The key to Oracle EPM is that it is complete, open and integrated, three huge competitive differentiators.
What advantages does Oracle's EPM have over e-HR companies which also have performance management in their products?a?? [Zhang Zhen, Computer Partner World, China]
There are many factors that influence organizational performance. A certain market position and brand value does, leadership does, luck does. HR also has an impact on organizational performance, that is why Oracle has an HCM (Human Capital Management) offering. And management processes do too. This is what Oraclea??s EPM focuses on. I dona??t compare the different styles or definitions of performance management conflict or compete. They are complementary.
a??How can Oracle help its clients in fleshing out their key performance indicators? Is Oracle EPM part of PLM strategy? What's the relationship between the EPM strategy and PLM strategy? What are the requirements on users' side when using Oracle EPM? What kind of skills, especially management skills must the users obtain?a?? [Hao Jinyu from IT 168 in China]
Oracle offers thousands of standard reports, performance indicators, dashboards, etc. already through its business intelligence applications. This is a good place to start from. Many will be usable out of the box. Also, Hyperion Performance Scorecard helps by structuring the key performance indicator creation and management process. Techniques such as strategy maps or value maps help connecting performance indicators to judge their relevance. Hyperion Profitability and Cost Management helps identify value drivers, it makes sense to center performance indicators around these value drivers. But it is not all about software and technology. One of the thought leadership projects we have going on is to identify some key metrics for the distinct management processes we have found. Once the work is done, I will report on it in my blog!
Is EPM only good for large organizations?a?? [China]
EPM is not only for large organizations. In fact, on average organizations are only getting smaller world-wide. This is because of outsourcing and partnering. EPM is very relevant for small companies for a number of reasons: (1) they are part of a larger value chain, (2) regulations mostly do not distinguish between large and small organizations, (3) globalization makes that also small organizations have to deal with complex surroundings. I think it is a mistake to a??water downa?? EPM for small organizations, they deal with the same issues as larger organizations.
