Leverage project financial planning to maximize ROI

November 10, 2021 | 4 minute read
Wayne Heather
EPM Product Marketing Director, Oracle
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For nearly every company, investing in new projects is often a precursor to future success. Successful projects accelerate growth, increase revenue, and foster innovation—but projects can also fail, resulting in revenue losses, increased costs, and missed opportunities. One contributing factor to failure is a lack of project financial planning.

Many companies still use spreadsheets for project financial planning, creating disconnect data siloes and heavily manual processes laden with risk. That’s why we recently launched the demo series Move Finance Forward. In our latest demo, Nate Keller and I demonstrated three ways that Oracle Fusion Cloud Enterprise Performance Management (EPM) helps you maximize project ROI and position your business for growth.

Built-in best practices

Oracle Cloud EPM simplifies the process of planning for and keeping track of all capital project costs and returns with built-in best practices for project financial planning. To model a new project, simply input a project name, short description, completion status, priority level, and risk level.

You can assign all project-related expense drivers and assumptions based on personnel, materials, equipment, and more. Once you enter the personnel assumptions, the built-in integration between project financial planning and workforce planning lets Cloud EPM display a list of relevant employees from which to choose, based on your skills requirements for that project.

After you’ve entered the necessary information about personnel, materials, and equipment, Oracle Cloud EPM generates a detailed project cost breakdown. On the right side of the screen, you can allocate those expenses to the assets involved, ensuring that the proper amount is capitalized.

Once all the information has been included, the system generates a detailed project costing forecast, providing great insight into all project costs, broken down by fiscal year. You can also customize the project costing report by changing the drivers and assumptions you want to focus on.

Rich Analytics

Flexibility and easy access to data are vital when doing any kind of financial planning and analysis. Without rich analytics and data visualization, keeping track of key project costing metrics becomes more difficult.

Our system provides customizable dashboards with real-time insights into the complete project financial planning process. In this example the right side of the dashboard keeps track of key metrics, like total investment, ROI, net present value (NPV), and project cash flow. The left side of the dashboard separates all planned project expenses into several categories: labor, material, overhead, equipment, and more.

The interactive dashboard lets you drill down further into the specifics of any one of those categories, for deep data analysis.

Plan with confidence

Once the project is approved, Oracle Cloud EPM can publish the details to the project module in Oracle Cloud ERP. During the life of the project, Cloud EPM can pull the actual spend from Cloud ERP and adjust the plan if needed. The project becomes part of your overall financial plan, updating your pro-forma financial statements along the way.

Whether you’re planning for an IT project, a R&D project, a contract project, or a construction and engineering project, you can be confident that Oracle Cloud EPM will maximize ROI and position your business for growth.

Stay tuned for the rest of the Move Finance Forward demo series:

November 17, 2021, 1-1:30 PM CT—Plan for the Right Talent at the Right Cost

December 8, 2021, 1-1:30 PM CT—Overcome Disruption with Integrated Planning

Wayne Heather

EPM Product Marketing Director, Oracle

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