Wednesday Jan 08, 2014

Why Are My Numbers Different From Yours?

Happy New Year!

Organizations spend way too much time arguing about whose numbers are right, where they came from, and what they mean, rather than spending time discussing what to do about them.  I had the pleasure of interviewing book author and consultant Ron Dimon, Enterprise Performance Management Advisory Services Partner at CheckPoint Consulting – an Oracle Platinum Partner – during a Podcast, and he provided some interesting insights into this topic.




Ron and I have been involved in Performance Management in one way or another since about 1999 and it amazes me that organizations today still rely so much on spreadsheets to do their planning and forecasting, profitability analysis, and even to record and report their financial and operational results.  But, I am hopeful, as many companies and institutions now embrace the tools and processes of Enterprise Performance Management (EPM), that this will change, turning performance management into a discipline and a competitive advantage.To listen to the entire Podcast, click here.

I asked Ron to give his point of view on why people are still uttering “Why are my numbers different from yours?” With all the technology and systems we have now, why is this still an issue for many organizations?  He told our audience that he believes much of the issue can be attributed to spreadsheets. “While great for some things, they were never meant to be collaborative, controlled, enterprise-wide consolidation and reporting engines or reporting systems.  We have grown to rely on them, because they are pervasive and so easy to set up.”  Ron explained that it is relatively easy to whip up a customer profitability spreadsheet, for example, in less than an hour. You just need to collect the sales and expense numbers, take a stab at indirect costs and voila!  The problem, he suggested, starts after the report is set up and we need to share it, compare actuals to forecast, or include some historical trend data.  Ron explained that, “When Finance gets a look at the spreadsheet, they have to reverse engineer it and will probably quickly find that my basis for allocating expenses is wrong, or I haven’t taken into account commission splits, or I’m not including a foreign subsidiary of the customer in the sales results…the list goes on and on.”

So how can this be corrected? Ron talked about a way of still using Excel to create easy, on-the-fly reports – but rather, using Excel directly connected to the central repository of data to ensure that everyone creating reports is starting from the same set of data. The Oracle solution he has used for this is called Oracle Hyperion SmartView for Office and is part of the Oracle EPM System.  Because the spreadsheet is essentially connected to the underlying central repository of the EPM system, there is less time spent arguing about why numbers are different.

So is Oracle Hyperion SmartView for Office the answer? Does it solve the data problem all by itself? Ron explained to our audience that SmartView is the window to all that data; it’s one way to access it. But how and when the data gets into the central repository, and how it’s organized and transformed once it gets there requires an Enterprise Performance Management System (EPM). Oracle’s EPM system is both a collection of tools and a group of processes that govern how your data, especially financial data, is recorded, reported and used. 

Ron explained that an EPM profitability application, like Oracle Hyperion Profitability and Cost Management (HPCM), is a much more disciplined way to truly determine customer profitability – unlike the spreadsheet example mentioned previously. Instead of the finance person making up formulas, allocations, and deciding what is included in that customer number or not, HPCM does it for you.  So now you CAN spend more time on what do to with that customer: pay more attention, adjust prices, offer new services (or even fire them!) – and much less time arguing about why my numbers are different than yours.

To listen to the entire Podcast, click here.
To learn more about Oracle’s Enterprise Performance Management solution click here, and to learn more about HPCM, click here.

Friday Dec 20, 2013

Déjà Vu? Oracle EPM in 2013


As the year winds down, I wanted to share some of the highlights from EPM in 2013 and give a sneak peak about where we’re going next year. 2013 was a busy year with new product developments, new research studies, as well as customer events like Oracle OpenWorld. Let’s look back at some of these happenings and their associated blog posts.


New Product Developments 

Early in 2013, we announced a new release of Oracle Enterprise Performance Management with new integrations and product capabilities and updates to user experience that help companies to Unlock Business Potential – by unlocking business potential, companies are able to drive to the desired business outcomes of Aligned Objectives, Accurate Forecasts, Confident Close and a more Accountable Enterprise.

We also released new product modules, including Oracle Hyperion Tax Provision to help with aligning tax information and financial reporting, and Oracle Data Relationship Governance for improving financial master data governance and managing change.  In addition, we certified Oracle Hyperion Planning and Oracle Hyperion Profitability and Cost Management on Oracle Exalytics In-Memory Machine to help organizations Plan at the Speed of Business.  

For the sixth consecutive year, Gartner recognized Oracle as a Market Leader in its 2013 Magic Quadrant for Corporate Performance Management Suites report.  In this year’s report, among the market leaders, Oracle is positioned with the highest ability to execute and the strongest in completeness of vision.

New  Research

We conducted several interesting research studies in 2013.  Over the past several years, as we have gone through and emerged from the Great Recession, the role of the CFO has transitioned to one of catalyst for change.  New technologies and shifts in skill sets are also contributing to this changing role.  To understand these issues more deeply, we partnered with Accenture and released new research about the CFO’s changing role from financial overseer to corporate strategist and change agent.

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.  The EPM Blog featured some compelling results from the CVI around Enterprise Planning, Budgeting and Forecasting Processes.

Customer Events and Videos 

One of the highlights of the year was Oracle OpenWorld, and winning the America’s Cup during that week certainly added to the excitement!  The Business Analytics program this year was our strongest ever, with over 200 EPM, BI, Analytics, Big Data and Exalytics sessions delivered by Oracle, our customers and partners.   We had the opportunity to catch up with a number of these customers and partners after their sessions, and you can view the interviews here

In one of our blogs about Scorecards, we featured forward-looking DC Courts and their process for managing strategy and KPIs.  DC Courts are making some great strides in setting strategy and executing on it, and are really setting the bar for other US Courts. 
On the topic of Profitability and Cost Management, we interviewed Ida Quamina of Oracle about the great strides being made in mastering the cost of Higher Education, and how these institutions can now address the issues of low or no visibility into individual programs, degrees and course costs, or the cost per student.
Next up – Cloud and Mobile!

As we head into 2014, there are many exciting developments in store, and you can expect to see us talk a lot about Cloud and Mobile technologies next year. Our blog called, “Taking your Business Scorecard Golfing” is just a preview.  

Wishing you a very Happy Holiday and New Year!




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!




Friday Oct 19, 2012

Why CFOs Should Care About Big Data

The topic of “big data” clearly has reached a tipping point in 2012.  With plenty of coverage over the past few years in the IT press, we are now starting to see the topic of “big data” covered in mainstream business press, including a cover story in the October 2012 issue of the Harvard Business Review. 


To help customers understand the challenges of managing “big data” as well as the opportunities that can be created by leveraging “big data”, Oracle has recently run and published the results of a customer survey, as well as white papers and articles on this topic.  Most recently, we commissioned a white paper titled “Mastering Big Data: CFO Strategies to Transform Insight into Opportunity”.


The premise here is that “big data” is not just a topic that CIOs should pay attention to, but one that CFOs should understand and take advantage of as well.  Clearly, whoever masters the art and science of big data will be positioned for competitive advantage in their industries or markets.  That’s why smart CFOs are taking control of big data and business analytics projects, not just to uncover new ways to drive growth in a slowing global economy, but also to be a catalyst for change in the enterprise.  With an increasing number of CFOs now responsible for overseeing IT investments and providing strategic insight to the board, CFOs will be increasingly called upon to take a leadership role in assessing the value of “big data” initiatives, building on their traditional skills in reporting and helping managers analyze data to support decision making.


Here’s a link to the white paper referenced above, which is posted on the Oracle C-Central/CFO web site, as well as some other resources that can help CFOs master the topic of “big data”:


White Paper “Mastering Big Data:  CFO Strategies to Transform Insight into Opportunity


CFO Market Watch article:  “Does Big Data Affect the CFO?”


Oracle Survey Report:  “From Overload to Impact – An Industry Scorecard on Big Data Industry Challenges”


Upcoming Big Data Webcast with Andrew McAfee


Here’s a general link to Oracle C-Central/CFO in case you want to start there:


www.oracle.com/c-central/cfo


Feel free to contact me if you have any questions or need additional information:  john.orourke@oracle.com


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This blog will highlight key EPM market trends, recent events and other news of interest to our field, customers and partners.

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