Wednesday Aug 28, 2013

What’s Happening in Business Analytics at Oracle OpenWorld 2013

Oracle OpenWorld 2013 is rapidly approaching on September 22nd when we take over the city of San Francisco for five days.  The Business Analytics program this year is our strongest ever, with over 200 EPM, BI, Analytics, Big Data and Exalytics sessions delivered by Oracle, our customers and partners.  We'll also have Hands-on Labs, Theater sessions, 23 demo pods dedicated to Business Analytics products, and more than 30 partners exhibiting their solutions.

So what's hot in Business Analytics at OpenWorld 2013?  Here are some of the "can't miss" sessions at this year's conference:

+ Monday Keynote:  Transforming Business with Big Data and Analytics,
led by Oracle President Mark Hurd, will discuss how to harness the value of big data.  You will hear about crafting an IT strategy and leveraging big data to make decisions about business operations and products and services for transforming your business.


+ The EPM and BI General Sessions
, led by SVP of Product Development, Balaji Yelamanchili, will highlight the latest innovations and product directions for Oracle EPM, BI and Analytics.  Both sessions are scheduled on Monday, September 23.

+ Customer Success:  EPM on Oracle Exalytics.  In this session, customers present case studies of how they have deployed Oracle Hyperion EPM applications on Oracle Exalytics and the benefits they have achieved, including extreme performance and scalability, all at a lower total cost of ownership than traditional systems.

+ New:  Oracle Planning and Budgeting Cloud Service.  Oracle Planning and Budgeting Cloud Service is the first of Oracle's EPM applications to be offered as a public cloud service and makes it much easier for businesses of any size to deploy a world-class planning and budgeting solution in a matter of weeks.  Learn about this new offering and hear about early customer experiences.

+ What's New with Oracle Exalytics In-Memory Machine?  Attend this session to learn about the latest and greatest in the hardware and software evolution of Oracle Exalytics In-Memory Machine.  Also learn how customers have obtained value from Oracle Exalytics and listen to a customer case study.

+ Oracle Endeca Information Discovery:  Customer Panel.  This session features a panel of customers that have adopted Oracle Endeca Information Discovery and achieved exciting results.  The customers' stories span various industries and demonstrate the broad applicability of data discovery tools and the competitive advantages customers can realize with Oracle Endeca Information Discovery.

Customer Panel:  Real-World Value with Oracle Business Intelligence Applications.  This session features a panel discussion that presents customer perspectives and best practices for implementing Oracle Business Intelligence Applications with Oracle E-Business Suite; Oracle Fusion; Oracle's PeopleSoft, Siebel and JD Edwards EnterpriseOne product families; SAP; and other application environments.

+ Oracle Fusion Middleware:  Meet This Year's Most Impressive Innovators.  In its seventh year, the Oracle Excellence Awards for Oracle Fusion Middleware Innovation honors organizations from around the globe that are using Oracle Fusion Middleware to achieve significant business value.  Attend this session to learn how leading-edge Oracle customers are successfully transforming their organizations with Oracle Fusion Middleware technology, including Business Analytics.


For more details on these and other Business Analytics sessions at OpenWorld, download the Focus On Business Analytics program guide at: 
https://oracleus.activeevents.com/2013/connect/focusOnDoc.do?focusID=22725

We look forward to seeing you in San Francisco!




Wednesday Aug 07, 2013

Forward Looking DC Courts Improves Processes and Sets the Bar in Managing Strategy and KPIs

Recently, I had the pleasure of interviewing Peter Smolianski, Chief Technology Officer for the District of Columbia Courts (DC Courts) about their five year strategic plan that they are successfully communicating and monitoring through the use of scorecards and dashboards. They are making fantastic progress in supporting their constituents and openly reporting progress on their plan. Following are some of the interesting points covered in our interview about DC Courts’ vision and how they are using Oracle Scorecard and Strategy Management to attain that vision.

Peter began by giving our listeners a brief overview of DC Courts and why they are so unique. In summary, they are a federally funded organization whose judicial officers are confirmed by the President of the United States. They are a fully unified judiciary, which means that they have municipal, county, and state level courts all managed together. They handle probation, mediation, and marriage services within the courts - unlike many other U.S. court systems where such services are all completely separate. DC Courts has 1,500 employees, 150 judges, and processes about 150,000 new filings each year comprised of civil litigations, landlord and tenant cases, small claims, criminal, family, probate, tax cases, domestic violence, and more.

DC Courts is one of the very few courts that has implemented scorecards and has a publicly published 5 year strategic plan. Why is this so unique? “There is no legal requirement to publish a strategic plan,” said Peter. He then told us about the National Center for State Courts (NCSC), an organization that helps to define standards and measures for Trial Court and Appellate courts, including recommended performance management standards, best practices, and Key Performance Indicators. “Courts are not mandated or required to institute these standards,” he said. 




So why are they doing it? DC Courts Executive Office established the Office of Strategic Management to help them set, administer and monitor their strategic plan and related activities. The purpose of each 5 year plan is to improve court proceedings and processes. By reporting this to their constituents, they are demonstrating responsibility to constituents and also providing themselves with a structured way to improve, complete with accountability built in.
As publishing a five year plan and scorecard is unique in this field, I asked Peter to describe what parties were involved from DC Courts and where the data comes from?

Peter told us the following. “Research and Development is the group responsible for developing the measures and for conducting surveys [to get data]. The office of Strategic Management develops the strategic plan. It is responsible to provide the data and deliver reporting – in this case personalized dashboards with scorecard results included. And recipients of the results are responsible to enter data that is not available through other court or IT systems.” Peter also told us that an unexpected benefit was the ability to show scorecard performance on personalized dashboards for each of the executives. “This is a really welcome benefit to help each of the executives analyze and monitor performance of interest to them,” said Peter.

There is so much more to the interview, but my final question to Peter was about what he felt the #1 lesson learned was by DC Courts when they implemented Oracle Scorecard and Strategy Management. His reply was very insightful. “Scorecards are a tool to implement what you have already built with respect to strategy and KPIs. You need to know what you have now and what you want to do in the future. The tool does not help you if you don’t have a strategy. Oracle Scorecard and Strategy Management enables you to automate your approach. Either select the Norton and Kaplan Balanced scorecard framework or another approach, but you need to follow an approach to effectively execute your strategy.”

Great advice! DC Courts are making some great strides in setting strategy and executing on it, and are really setting the bar for other US Courts.

To listen to the entire podcast, click here.

To learn more about Oracle Scorecard and Strategy Management (OSSM), click here.

Friday Aug 02, 2013

Report from OpenWorld Shanghai

Oracle OpenWorld Shanghai 2013 was held July 22nd – 25th at the International Expo Center in Shanghai, China. The conference drew over 19,000 attendees from 44 countries. In addition, 580 CxOs attended the Executive Edge program, and 430+ partners attended the Oracle Partner Network Exchange. The conference included a number of sessions on Big Data, Business Analytics, Business Intelligence and Enterprise Performance Management delivered by Oracle, our partners and customers. 


Shanghai Skyline
I had the pleasure to attend the conference and delivered three sessions focused on Oracle’s Hyperion Enterprise Performance Management (EPM) applications. Each of my sessions was well-attended, and in a few cases was standing room only, so there is clearly a lot of interest in the China market in EPM. The EPM and BI demo pods in the DemoGrounds at the conference also received a lot of traffic. In addition to the conference sessions I delivered, I had several meetings with customers and partners in Shanghai.

These sessions and meetings I attended made clear the interest that customers in China have in improving their planning, management reporting, financial reporting, and profitability management processes. In fact, with the China Ministry of Finance now standardizing on XBRL for annual reporting across multiple agencies in China, there is a great opportunity here for our disclosure management application. One interesting finding is that the China market may not be ready for cloud-based applications as many companies are state-owned and have security concerns, so on-premise applications are likely to see continued demand.  

For more information about the Oracle OpenWorld China 2013 conference, please check the web  site: 

http://www.oracle.com/events/apac/cn/en/openworld/index.html

And don’t forget, Oracle OpenWorld San Francisco 2013 is just around the corner in September of 2013. Please check the web site for registration and content information: 

http://www.oracle.com/openworld/index.html


Shanghai Demo Grounds

Thursday Jul 11, 2013

The CFO as Catalyst for Change - Part 3

Over the past few months, we’ve taken a microscope to the role of the CFO. The changing economic environment is creating new demands and opportunities for CFOs around the world. At Oracle, we are committed to helping CFOs navigate and succeed, and recently partnered with Accenture on a global research study, “The CFO as Catalyst for Change.”

As the Wall Street Journal’s CFO Journal summarized, the study highlights the evolution of the CFO’s role from financial overseer to corporate strategist and change agent. I discussed the main findings in a previous blog post, but wanted to share some great insights on the study from industry influencers.

InformationWeek’s Doug Henschen discussed the increasing role CFOs are playing in the technology department, highlighting the similarity between what has also been happening with CMOs. I think the CFO’s role in technology decisions can have a bigger impact and is worth noting.

Without a doubt, CFOs are taking technology seriously! CFO Magazine highlighted the skills perspective in their article on the study, pointing out that when asked about where CFOs could improve their skills and capabilities, technology knowledge was ranked second only to industry knowledge. Now, that’s saying something!

But they are not just focusing on ways to enhance their knowledge base -- CFOs also understand the importance of new technology. A Wall Street & Technology article on the study stressed how CFOs are increasingly citing disruptive technology as critical for success. In fact, 79 percent of respondents viewed access to information as a key driver of organizational agility, while 57 percent viewed investments in big data and analytics as a key source of competitive advantage.

The study shows that the role of the CFO has dramatically changed and it continues to evolve at a rapid pace. Now, CFOs must be catalysts for change and help their organizations transform and thrive in today’s global economy. 



Oracle’s Business Analytics Customer Value Index Program – Part 1

To learn more about how Oracle customers perform Business Analytics processes (which includes Enterprise Performance Management, Business Intelligence and more), we launched the Oracle Business Analytics Customer Value Index (CVI) program in 2011, through which we collect valuable business process information from our customers, and share the results with them. This article will be the first in a series to share with you some of the results from each subject area.


Enterprise Planning, Budgeting and Forecasting


The first subject area being studied is Enterprise Planning, Budgeting and Forecasting. Our interim results, presented here, reflect the first 130 completed surveys of which approximately half use Oracle Hyperion Planning. Here is what we found out. Of the total population of members (those with and without Oracle Enterprise Planning solutions):

+
63% perform monthly forecasting
+
40% perform rolling forecasts
+
63% perform quarterly forecasts
+
33% perform event-based forecasting (or re-forecasting)
+
59% perform driver-based planning and/or forecasting

The use of rolling forecasts has been steadily increasing each year and driver-based planning is also up significantly from previous years. Both of these processes have been shown to improve accuracy in forecasting and planning. One reason for the increase in organizations using rolling forecasts might be attributable to having efficient software to enable the process. For example, of the companies that now use Oracle Hyperion Planning, 79% of them did NOT perform rolling forecasts prior to implementing Oracle Hyperion Planning. It is a complex process made easier by capable software.

There was also a notable drop (31% fewer FTEs)  in the amount of administrative time needed for the budgeting and planning process for those members that adopted Oracle Hyperion Planning.  In addition, organizations with Oracle Hyperion Planning spent 38% less time per month in manual processes supporting monthly forecasts than they did prior to adopting the solution. Again, having capable software helped create a more efficient process.

In our survey, although Oracle Hyperion Planning is the solution of choice for budgeting (59%), forecasting (50%) and rolling forecasts (46%), spreadsheets still play a part for some companies for forecasting (18%) and rolling forecasts (25%). While the choice of using spreadsheets for these important processes may be acceptable for small companies, it can prove troublesome or even detrimental for medium, large and very large companies. Large and complex spreadsheets, broken links, dependency on the creator of the spreadsheet, and errors due to manual data entry and formula changes all contribute to the potential challenges faced from using them for these purposes. These results are not shocking as spreadsheets have been around for a long time, but they do confirm that organizations are slow to move away from spreadsheet technology for these important processes.

According to our survey, spreadsheets are also being used often for workforce planning (38%) labor costing (43%) and operational planning (39%). Although these numbers are reasonably low, they show that there are still a significant number of companies using them for very important processes that contribute significantly to accuracy in planning, budgeting and forecasting. This is troubling as disconnected spreadsheets can lead to more fragmentation in the planning process. Another significant change our customers experienced after implementing Oracle Hyperion Planning was that of the percent of time they spent in gathering data to analyze versus time spent actually analyzing the data.



Figure 1: Time to Gather and Analyze Data


From the graph it is apparent that, on average, our customers experienced a 23% decrease in the time it took to gather data and a 35% increase in time now available and used to analyze data, after implementing Oracle Hyperion Planning.

Although the average change for some of these processes may not seem overwhelmingly significant, average numbers tend to understate some of the dramatic changes individual organizations experience. For example one Oil and Gas company told us that they had experienced an increase in their forecast accuracy from 50% to 90% after adopting Oracle Hyperion Planning. A wholesale distribution company experienced a positive change in data gathering from 90% of their time to only 50% of their time leaving them with more time for valuable analysis. A Financial Services company experienced a 75% reduction in the time needed for administering their budgeting and planning process after adopting Oracle Hyperion Planning.

Stay tuned for more results in Part 2.

If you would like to become a member of the Oracle Business Analytics Customer Value Index Program (a free program), please contact me at toby.hatch@oracle.com. Please keep in mind that you must be an Oracle customer to become a member, however you do not have to be using any specific Oracle software to become a member.

To learn more about Oracle Business Analytics including EPM and BI, click here.

Tuesday Jul 09, 2013

Beware of Competitive EPM Migration Offers

Recently, one of the upstart, cloud-based EPM vendors announced a migration program for Hyperion EPM Application customers.  This was surprising to see since a number of EPM vendors have tried these programs in the past and they are rarely successful. The reason is that while on the surface software license fees, maintenance or subscription services seem like the largest cost components, much of a customer's investment in EPM applications is actually represented by implementation of the software and training of the users and administrators. 



At Hyperion and Oracle, through more than 30 years of working with Finance applications, we have found that when finance users have deployed a solution that works and addresses their needs, they will stick with the tried and true and are resistant to switching applications and, in many cases, even upgrading to new releases of the same application. In addition, EPM applications used for the financial close and reporting process, or ongoing forecasting and planning, have become mission critical so upgrades need to be carefully planned to avoid disruption.



From my perspective, Hyperion EPM application customers who are satisfied with their solutions (and most are) will be unlikely to switch to another vendor’s cloud-based solution. In fact, such a move could represent a step backwards in functionality. And, if a Hyperion EPM customer wants to move from an on-premise deployment to a cloud-based solution, Oracle provides options here. This includes Oracle Managed Cloud Services where the customer retains their software license, but Oracle hosts the EPM applications (and others) in our data center. Hundreds of Oracle customers are already using this service. In addition, Oracle recently launched a Planning and Budgeting Cloud Service which makes Oracle Hyperion Planning available as a Cloud-based Software as a Service (SaaS) offering.



The Oracle Planning and Budgeting Cloud Service speeds implementations and reduces the barriers to adoption for new customers. It also provides existing customers the option of moving their existing Hyperion Planning applications to the Oracle Cloud. If a cloud-based approach is of interest, moving Hyperion Planning from on-premise to the Oracle cloud will be a lot easier than moving to a competitor's offering – which requires a re-implementation and re-training of users and higher costs. But more importantly, the Oracle Planning and Budgeting Cloud Service will be most attractive to new customers who have outgrown spreadsheets and low-end planning applications and are ready for a world-class solution that’s part of a broader set of cloud-based applications.



Oracle is the market leader in EPM and is committed to meeting the current and future needs of our customers - with world class applications that can be deployed on premise, in the cloud, or via a hybrid approach.  
For more information about the Oracle Planning and Budgeting Cloud Service, and other Oracle Cloud solutions, click here.



Thursday Jun 13, 2013

Three Technologies CFOs Need to Know About

Big Data, the cloud and mobile computing are reshaping the office of the CFO. 

Today’s fiercely competitive global economy demands more from finance organizations than ever before. In addition to fast and accurate planning and forecasting, finance is being challenged with managing growing data volumes, evolving regulations and compliance requirements, and the need to deliver real-time insights to senior staff. Progressive CFOs and finance executives are increasingly leveraging transformative technologies to enhance the effectiveness of their organizations—driving new efficiencies, innovation and a competitive advantage in the business.

Click here to read an article I recently wrote for Business Finance on this topic.   

The article examines three technologies transforming finance—Big Data, the cloud and mobile computing—and how the office of the CFO can incorporate these technologies to better forecast and plan for profitable growth, report with confidence and accelerate business value for the organization.

Let me know what you think!  Thanks. 

Tuesday Jun 11, 2013

Actions Speak Louder in Scorecards

I had the pleasure of interviewing Jacques Vigeant, Product Strategy Director for Oracle Scorecard and Strategy Management for Oracle Corporation, about the use of embedded actions in scorecards and their effect on organizations. Most discussions about scorecards typically focus on traffic lights or maps, grids of numbers or objective definitions, but this discussion had an interesting twist. Jacques told our audience how actions, defined and embedded into scorecards, can improve individual performance and improve the ability to execute strategy.

We started the discussion with Jacques’ definition of a scorecard. Jacques told us that scorecards are a set of tools and techniques that extend the Business Intelligence (BI) system to provide a language that can be used to define a corporate strategy and to define the goals and objectives that support achieving that strategy. Scorecards also provide a set of tools to enable businesses to define key business metrics or key performance indicators (KPIs) that are in support of the strategy. All of this is to effect change – if you cannot effect change, then you are wasting your time.

So how do actions fit into this definition? Jacques told us that actions are a complementary technique to effect change – you define actions with objectives, goals and KPIs, enabling the user of the scorecard to perform the action complementary to the status of the object based on who they are. What kind of actions are we talking about? According to Jacques, there are three basic types of actions:

     + Navigation to another system or website
     + Trigger scripts or Java methods to invoke sophisticated tasks
     + Trigger any Oracle Fusion Application workflow

“Actions are a real strong suit for Oracle,” said Jacques. They are also a differentiator. All key business workflows from Oracle Fusion Applications are available as web services and because of this, Oracle Scorecard and Strategy Management can surf through and use a repository of thousands of Fusion Application business processes and workflows. With this in mind, business users can choose to associate workflows with objectives, KPIs and initiatives, and trigger them based on who is viewing the scorecard object and the status the object is currently in.

Actions in Oracle Scorecard and Strategy Management

Some actions are as simple as linking to another system to dig deeper into a KPI to understand the roots of the data, or launching into the HR system to look at an HR record for an employee whose scorecard you are currently viewing (with permission, of course). But you can also do much more sophisticated things like trigger a true workflow. Jacques gave the following HR example. Let’s say your competitors have been pillaging your staff and hiring them so your headcount KPI is in steady decline. Based on the status of the KPI and the fact that you are logged into the system, from your dashboard or scorecard you can trigger a workflow action to open a job requisition in another system. And because this business workflow is available as a web service with Single Sign-On to OSSM, you do not need to leave the OSSM environment. 

Jacques also gave other examples of workflow actions that can be triggered such as presenting forms to fill out to adjust a forecast or some kind of data capture that makes sense. Actions can be reactive or proactive in nature and you can choose to do different things based on the data. Actions can support individual jobs, departmental functions and/or corporate strategy.

In short, actions do speak louder in scorecards.

To listen to the entire podcast, click here.

To learn more about Oracle Scorecard and Strategy management, click here.

Tuesday May 28, 2013

Unlocking Business Potential with Enterprise Performance Management

As we look at the enterprise performance management (EPM) market, it’s clear that the fundamentals of EPM haven’t changed in the last 5 – 10 years.  EPM is still about linking strategies to plans and execution, monitoring financial and operational results against goals, and applying analytics to understand key trends, make better decisions and drive enterprise-wide performance.

What has changed is the world that we operate in. Although economic growth is slow, business cycles are faster so planning and forecasting needs to be more frequent.  There’s more data available to analyze and leverage for planning and reporting – both internally and externally generated.  Stakeholders have higher expectations.  That includes external stakeholders who want more quantitative and qualitative disclosures about the organizations they are investing in, as well as internal management stakeholders who are demanding more frequent insights into financial and operating results.  Even the workforce has changed, for instance Millennials (those born between 1980 and 2000) were raised on technology and have less patience for systems that are outdated or don’t respond quickly.  In addition, technology is changing with the shift to Cloud, Mobile and Social computing.  These new technology enablers that are available today create many opportunities to drive innovation and improve efficiency if leveraged correctly.  

So while today’s market presents a number of challenges to achieving the goals of CEOs and CFOs, there are also opportunities to unlock the potential of their organizations to drive profitable growth. These include:

-
Eliminating or investing more in under-performing products
- Putting more focus on under-served customer segments
- Better utilizing existing staff and capacity
- Putting the excess cash on the balance sheet to work – investing in new markets, products, and services
- Creating more efficient business processes and reducing IT complexity to reduce costs

Many organizations are finding that an integrated EPM platform can help them break down the barriers to success, linking business goals to results and unlocking business potential.  With a world class EPM platform organizations can deliver the desired outcomes needed to succeed in today’s market; Aligned Objectives, Accurate Forecasts, Confident Close and a more Accountable Enterprise.  Plus they can address the needs of Finance, IT, as well as line of business managers to ensure more consistent decision-making.

To learn more about how an integrated EPM platform can help your organization unlock its business potential,
download our new white paper:  Enterprise Performance Management – Unlocking Business Potential. 

Also, learn how the latest release of Oracle Hyperion EPM helps organizations unlock their business potential, here’s a link to the
press release.

And for more general information about Oracle Hyperion EPM please go to www.oracle.com/epm.



Thursday May 23, 2013

The CFO as Catalyst for Change - Part 2


In Part 1 of this series, I talked about some of the factors that are changing the role of the CFO.  But exactly how much has the CFO role changed and what’s in store for the future? To shed more light on the subject, Oracle partnered with Accenture to conduct a global research study. The study "The CFO as Catalyst for Change", includes insights from 930 CFOs from organizations of varying sizes and from different continents. In other words, it's quite comprehensive.

The study highlights the evolution of the CFO’s role from financial overseer to corporate strategist and change agent. Specifically, there are a few key takeaways I wanted to highlight:

The CFO role is becoming more strategic and influential:

- More than 70% of respondents said their overall level of strategic influence has increased over the past three years
- Respondents said their role is increasing in setting and determining strategy (65%) and business transformation (47%).

Internal and external challenges are hindering CFOs from reaching their full strategic potential:

- Only 33% of CFOs surveyed play a leading role in strategy formulation; an even smaller proportion (24%) play a leading role in strategy execution
- The challenging economic environment was identified as the largest barrier (37%), followed by a shortage of time (35%) and lack of integration between the finance function and other parts of the business (31%).

CFOs recognize technology is critical to helping:

- 84% of respondents said co-operation between the finance leader and CIO has increased during the past three years.
- 79% listed access to information as a key factor to making their organization more agile
- 57% of respondents viewed investments in disruptive technology, such as big data and analytics, as key source of competitive advantage.

Maintenance and integration issues are still the biggest technology concerns for CFOs:

- Cost of maintenance, cost of integration and lack of integration between systems were listed as the top three concerns of CFO respondents.

For more information, you can find the press release and links to the full report here.  If you’d like to hear the findings discussed in more detail make sure to tune into the CFO.com webcast on May 30th at 12PM EDT.  More information on the webcast and registration is available here.








Wednesday May 08, 2013

The CFO as Catalyst for Change - Part 1

In today’s hyper-competitive global economy, senior executives often have to wear more than one hat to help their organizations reach their full potential.   A good example is the CFO. With the constant need to drive innovation and growth, coupled with their more traditional financial responsibilities like managing costs, CFOs are under increasing pressure to take on an even broader role within their organizations. This evolving role has seen CFOs become more valued strategic and commercial partners, but has not reduced the challenges they face. From working with customers in nearly every industry and geography, a few of the challenges CFOs currently face have become clear, including:


  • The operating environment – While the economy is recovering, CFOs are still facing a low-growth external environment. The need to focus on cost management and efficiency has, in many cases, meant the difference between survival and extinction. Yet, the CFO’s role has broadened to include playing a greater role in technology and operations. Therefore, lack of time and role overstretch are key problems.

  • Skills and capabilities – As the role of the CFO expands, so must the CFO skill set. This has presented a problem for organizations with finding the right talent and capabilities that move beyond the traditional finance skills. Current CFOs also need to expand their own capabilities – particularly with technology. 

  • Technology – The CFO's role in IT investment is more apparent than ever. According to Gartner, 45 percent of IT leaders report to the CFO…that’s more than report to any other executive. While technological innovation such as big data, business analytics, cloud, mobile and social are a priority for the majority of organizations, most financial executives are unable to evaluate IT investments, making it harder for them to show the fruits of their labors. 

Despite these challenges, I know many CFOs that are taking a more strategic role, but they are also the first to admit that there is more work to be done. Over the next few months we will explore this topic in more depth and discuss how technology and other factors can help CFOs become catalysts for change and unlock the true potential within organizations around the world.

For more information about the role of the CFO and best practices in dealing with today's Finance challenges, check out Oracle CFO Central at www.oracle.com/cfo.







Gaining Strategic Alignment with Business Scorecards

Recently, I had the pleasure of interviewing Mr. Trey Robbins, Managing Director for Technolab, a Platinum Oracle Partner, for a Podcast. Trey and I discussed the implementation of Oracle Scorecard and Strategy Management (OSSM) at Technolab, and the important results they have achieved.

Trey told our listeners that Techolab wanted to translate their Balanced Scorecard framework into an online tool so that they could align their corporation in all the countries and hold people more accountable for achieving goals and corporate strategy. Managers update their measures and part of the corporate strategy manually, and then meet on a quarterly basis virtually (via phone and webcast) and in person on an annual basis. They walk through the overall corporate objectives and how they are tracking including the budgets and targets they have set.

In addition to strategic alignment, Technolab is also experiencing operational and financial benefits from OSSM. Trey told us that when he was first hired at Technolab, he saw lots of good ideas from the company brought forward in meetings and brainstorming sessions, but after the meetings were over and everyone went back to their day to day activities, the great ideas were lost. By using the scorecard tool, they document the good ideas, assign responsibility and track their progress.

An example of an operational improvement that Trey described was tracking the compliance of the entire organization around certifications that their consultants need to have for implementing software for their customers. Certification and re-certification for each region of Technolab is extremely important to the company, but difficult to monitor. Technolab now has software certification as an objective for each region and country and the company expects to see green lights on this objective at each meeting, or have a really good explanation of why they don’t. “When you go in front of your peers and management and you have certain things that you are responsible for, you are going to make sure you are executing on those. You don’t want to go into your meeting unprepared, and you definitely don’t want to go into your meeting with a bunch of red traffic lights,”said Trey.

When asked about some of the lessons learned from the initial implementation, Trey had some good advice. 

    
 1. Understand all the components needed to track strategy, measures and activities before using a tool. If you jump straight into the software, you will be missing components and that will slow you down. Understanding everything your organization wants to track and everything that your scorecard tool needs will enable you to speed through implementation.

     2. At the beginning of implementation, hold executive status meetings on a monthly basis rather than quarterly. The more visibility you have, the more consistent the message you articulate, the easier it is to execute.

    
3. Leverage the use of mobile capabilities more. Enable the executives to review the status of objectives and activities frequently and ‘on-the-go’.

Implementing Oracle Scorecard and Strategy Management (OSSM) gave Technolab a better way to manage their international business activities, align everyone around the corporate strategy and move the entire company towards achieving that strategy.

To hear the entire Podcast click here.

For more information about Oracle Scorecard and Strategy Management (OSSM) click here.


Friday Apr 26, 2013

EPM and ERP - Better Together

I recently had the pleasure to attend and present at the Collaborate 2013 user conference in Denver, Colorado.  This event is run by three of the Oracle user groups – OAUG, IOUG and Quest and attracted over 5000 attendees this year.  The conference included hundreds of sessions covering Oracle Applications, Database, and Middleware which were delivered by Oracle customers, partners and staff members.  The EPM/BI/Data Warehousing track itself had over 130 sessions, most of which were delivered by customers and partners, and which were very-well attended.  Conference attendees and members of the Oracle user groups can see the session list and gain access to the presentation content at this link:  http://collaborate.oaug.org/education/search.

One of the highlights of the conference was the RadiOAUG live radio show that was broadcast from the exhibit hall during the conference.  This was pretty interesting – as two professional radio broadcasters interviewed Oracle executives, customers and partners on a variety of topics that were in focus for the conference.    I was interviewed on the topic of “ERP and EPM – Better Together”. 




During this short interview I talked about the progress Oracle has made in integrating the Hyperion EPM Applications with Oracle E-Business Suite, PeopleSoft, JD Edwards, Fusion and SAP Financials.  I highlighted 3 specific areas of integration that Oracle has built out -- data, metadata, and process integration.  We also discussed how EPM can help with ERP upgrades, through managing metadata like the Chart of Accounts, and providing a consistent planning and reporting environment while the systems are being upgraded on the back end.  I finished by talking about the role our EPM applications can play in helping ERP customers extend their investments and improve their management processes such as Strategy Management, Planning and Forecasting, Financial Close and Reporting as well as Profitability and Cost Management.  Here’s a link to a replay of my RadiOAUG interview:  JohnO'Rourke.mp3.

Here’s a link to all of the RadiOAUG programs that were recorded at Collaborate 2013: http://remote1.businessradiox.com/

For more information about Oracle’s Hyperion EPM Applications please go to www.oracle.com/epm


 

Tuesday Apr 16, 2013

Enrich Your Scorecard with Metadata That Actually Matters

Oracle has released another interesting Podcast – this one is about how Oracle Scorecard and Strategy Management can help you drive behavioural change and improvement at the same time by using metadata that actually matters.

I had the pleasure of interviewing Jacques Vigeant, Product Strategy Director for Oracle Business Intelligence and Enterprise Performance Management and Oracle Scorecard and Strategy Management (or OSSM) about this subject.

After covering the basics about what a scorecard is and how it differs from a BI system or dashboards, we went on to discuss how scorecards should traverse dimensional structures, not just go up and down the hierarchies (like a typical BI system does) but also jump from one hierarchy to another to tie important data together.

Then we got to the heart of the Podcast – metadata that really matters. Jacques told us why accountability is so important – understanding WHO is under or over performing and HOW that performance relates back to the organizational strategy is key to pushing strategy forward. It is difficult to modify behavior if accountability is not included.

Jacques further explained that traditional BI metrics are typically focused around aggregating metadata along a single hierarchy. For example, we all know intuitively that a very high attrition rate in a company can impact the profitability of the company.  Traditional BI metadata focuses on aggregating metadata for HR attrition rates by HR dimensions, like attrition by department or region, but in this example, there is still a chasm between the HR data and financial data. Oracle Scorecard and Strategy Management (OSSM) enables you to draw relationships between your measures that are not necessarily based on aggregate tables or dimensional hierarchies – rather by business insight. You can literally drag and drop scorecard metrics on top of each other to get a better snapshot of what is going on. Jacques provided the following example, “Let’s say my attrition metric has an impact on my employee effectiveness metric, which has an impact on employee productivity, productivity has an impact on cost, and cost has an impact on profitability. You can drag all of these metrics on top of each other to get a whole company understanding of the impact of attrition rate on profitability”. This is new insight about the relationship. Once we understand this relationship, there is now a financial basis for management to ensure that the attrition rate stays within acceptable parameters – which can lead to a change in management behavior.

How does this type of insight help? Jacques explained that OSSM provides a set of metadata that is actually captured by the user using the system, providing new business insight. As more users use the system you are gaining more and more business insight. You get a network effect of new and better business insight as more people use the scorecard tool. This is not the same kind of metadata as traditional metadata that simply describes the existing dimensions.

Near the end of the Podcast Jacques also told us more about how the use of metadata that matters (including accountability) with financial objectives and data and operational metrics and data, can all roll up into the strategy tying everything together. The ability to keep the data current enables users to get a really good picture of the state of the strategy at any time, and which elements are most important to monitor to move the strategy forward. There are really great visual diagrams within OSSM that help you to literally see what is happening.

Jacques provided other interesting examples and useful information about metadata that actually matters in scorecards and how it can help encourage organizational change during the Podcast. I encourage you to listen to the entire interview.

To hear the entire Podcast click here.

For more information about Oracle Scorecard and Strategy Management (OSSM) click here.

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