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AUSOUG I Am Paying for my Cloud License. What's Next?

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Alithya
Alithya

The document provides an overview of a presentation on profitability and cost management using Oracle EPM Cloud. It discusses key capabilities like flexibility, accuracy, shared methodology, and transparency. It also highlights use cases and demonstrates features through a live demo. The presentation encourages organizations to evaluate where they are versus competitors and determine how to advance their profitability analysis and planning.

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11th November 2020 10.00 AM AEDT I am paying for my Cloud License. What's next? Alecsandra Mlynarzek EPM & Analytics Summit Virtual Connect 2020 Beyond Boundaries Event Partners
› Alithya Product Manager – Profitability and Cost Management › 13 years of Enterprise Performance Management (EPM) implementations › Architecture, Design, Integration, Optimization › Profitability & Cost Management, Planning, Essbase, and SQL Scripting Certified › Oracle ACE Associate since June 2019 › Hobbies: learning foreign languages, winter sports, climbing @AlecsEPM Alecs Mlynarzek AUSOUG Virtual Connect 2020
HOW MANY SUBSCRIPTIONS ARE YOU PAYING FOR? ..and are you making the most of them? AUSOUG Virtual Connect 2020
ORACLE EPM CLOUD LANDSCAPE › Enterprise Data (EDM) › Planning and Budgeting (EPBCS, PBCS) › Profitability and Cost Management (PCM) › Financial Consolidation and Close (FCCS) › Account Reconciliation (ARCS) › Narrative Reporting › Tax Reporting (TR) AUSOUG Virtual Connect 2020
AUSOUG Virtual Connect 2020
PROFIT AND COST MANAGEMENT Alignment with existing processes AUSOUG Virtual Connect 2020
ARE YOU DOING JUST FINE WITHOUT A SOPHISTICATED PROFITABILITY SOFTWARE? Focus on Profit Winners Reevaluate Pricing Smart Cost Cutting Retain or grow the most profitable segments Retire or scale down profit losers Evaluate whether a new initiative is worthwhile Renegotiate break even point contracts Make decisions based on data: is it worth keeping this contract? How does a cost cutting strategy impact all business segments Follow the indirect cost impact when you retire an unprofitable service or product AUSOUG Virtual Connect 2020
PROFITABILITY AND COST MANAGEMENT USE CASES Where should you be investing your sales, marketing and production resources? Do you know when it is the right time to retire a product, service or a channel? Are you confident your pricing is accurate? Are you sure you are getting the best value for money from your suppliers? Do you have the numbers required to drive accountability to thinking long term and aligning with company’s goals and vision? Multi-step allocations What If scenarios Full Transparency STRATEGIC PROFITABILITY Multi dimensional P&L Reporting Strategic P&L Cost Contribution detail SHARED SERVICES RECHARGES Why are you being charged this much for IT/Facilities/HR? Are your shared services provided at an optimal cost compared to a market standard? Your GL processes are already “heavy”. Would you like to move some of the processing outside of the GL? Can you defend the overall cost of your department or is it always difficult to explain the volume of spending?Thin Ledger REGULATORY COST REPORTING TAX TRANSFER PRICING Legal Entity P&L Recharges across LE Mark-up Price/Rate Negotiations Traceability of cost Auditable cost methodology Was your overhead rate estimate correct? Can you support it with real data/ real results? Do you need to adjust your prices /rates? Is proving your costing methodology an effort that takes multiple days and several people? Can you trace a cost end-to-end and prove its impact on the final rates? Are you confident you understand all elements of cost (Direct and Indirect)? Are you confident in how your base charge is calculated? Can you prove that Arms’ Length methodologies are being applied correctly? Are our charges difficult to explain? AUSOUG Virtual Connect 2020
GET RELIABLE RESULTS – FAST! #Goals for Profitability and Cost Management Insight ▪ Rapidly evolve methodologies as the business changes. ▪ Analyze different approaches to yield optimal mix of services versus costs incurred by the entity. ▪ Provide What-If capabilities to assess impact of key business decisions on bottom line. ▪ Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance. ▪ Achieve accuracy through meaningful data distribution, automation, and system controls. ▪ Define consistent methodology across all management cycles. ▪ Create consistent comparisons when reviewing and updating methodology result and planning for future management cycles. ▪ Give units the detail costs they incur for the service consumed. ▪ Compare effectiveness of internal unit services with those of external providers to ensure efficiency. ▪ Allow LOB managers to understand cost to serve and profitability results. Flexibility Accuracy Shared Methodology Transparency AUSOUG Virtual Connect 2020
LIVE DEMO
FLEXIBILITY Live demo > Adding nodes in hierarchies does not impact existing higher-level allocation/ attribution rules > Explicit allocations can be added at any point > Logic changes can be done quickly and can be marked as updates within the rule description > Easy spin of What If scenarios, moving/ seeding business logic in minutes ▪ Rapidly evolve methodologies as the business changes. ▪ Analyze different approaches to yield optimal mix of services versus costs incurred by the entity. ▪ Provide What-If capabilities to assess impact of key business decisions on bottom line. Flexibility
ACCURACY Live demo > Each allocation rule is uniquely identified > The balance dimension will track allocation in, allocation out, any adjustments as well as remaining cost to be allocated > Quick high-level validation through Rule Balancing reports > Easy drill down reporting via Smart View > Any data “hiccup” is accounted for ▪ Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance. ▪ Achieve accuracy through meaningful data distribution, automation, and system controls. Accuracy
SHARED METHODOLOGY Live demo > Standardize your allocation methods across your entire organization > Use one tool for profitability analysis and cost allocation across multiple business segments > Apply the same logic to multiple scenarios: Actual, Forecast, Plan > Report results across all scenarios with a like for like comparison ▪ Define consistent methodology across all management cycles. ▪ Create consistent comparisons when reviewing and updating methodology result and planning for future management cycles. Shared Methodology
TRANSPARENCY Live demo > Follow the “bouncing ball” within each allocation step > Ability to report on each level of your allocation process > By knowing and proving your data, you can assign accountability > Transparency of data = clarity of thought = targeted action ▪ Give units the detail costs they incur for the service consumed. ▪ Compare effectiveness of internal unit services with those of external providers to ensure efficiency. ▪ Allow LOB managers to understand cost to serve and profitability results. Transparency
Status Quo Reactive Focused - Point Solutions Visionary - Transformation Market Disruption FOOD FOR THOUGHT > Where are you today? > Where are your competitors? > What is the cost of inaction? > What is the cost of not using the right software? > Where do you want to be? > How are you going to get there? > How important is domain expertise? > Who can help you get there? AUSOUG Virtual Connect 2020
> Webinar: Drive Profitable Planning Decisions with EPM Cloud Profitability and Cost Management > Blogs: > OUT-OF-THE-BOX FEATURES: PROFITABILITY AND COST MANAGEMENT CLOUD SERVICES (PCMCS) - MODEL VALIDATION > OUT-OF-THE-BOX FEATURES: PROFITABILITY AND COST MANAGEMENT CLOUD SERVICES (PCMCS) - RULE DATA VALIDATION REPORT > OUT-OF-THE-BOX FEATURES: PROFITABILITY AND COST MANAGEMENT CLOUD SERVICES (PCMCS) - SYSTEM REPORTS: STATISTICS > And the list goes on... OTHER RESOURCES AUSOUG Virtual Connect 2020
ALITHYA IS YOUR TRUSTED ADVISOR 2400 employees 3000+ projects 375+ ERP/EPM Cloud projects 23+ years NASDAQ ALYA 220+ Oracle consultants 7 Oracle ACEs 1000+ clients Enterprise Applications Application Services Business Strategy Data & Analytics Enterprise Resource Planning (ERP/SCM) Human Capital Management (HCM) Enterprise Performance Management (EPM) Customer Relationship Management (CRM/CXM) Cloud Infrastructure Migration Cloud Enterprise Services Digital Applications Development Legacy Systems Modernization Quality Assurance Strategic Consulting Digital Transformation Enterprise Architecture Organizational Performance Business Intelligence Data Governance Modern Data Architecture Artificial Intelligence Machine Learning AUSOUG Virtual Connect 2020
infosolutions@alithya.com https://www.facebook.com/Alithya/ https://www.linkedin.com/company/alithyaoraclepractice/ @Alithya_inc Subscribe to our YouTube channel! Keep up with our blogs and thought leadership! Alecs Mlynarzek AUSOUG Virtual Connect 2020
AUSOUG Virtual Connect 2020

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AUSOUG I Am Paying for my Cloud License. What's Next?

  • 1. 11th November 2020 10.00 AM AEDT I am paying for my Cloud License. What's next? Alecsandra Mlynarzek EPM & Analytics Summit Virtual Connect 2020 Beyond Boundaries Event Partners
  • 2. › Alithya Product Manager – Profitability and Cost Management › 13 years of Enterprise Performance Management (EPM) implementations › Architecture, Design, Integration, Optimization › Profitability & Cost Management, Planning, Essbase, and SQL Scripting Certified › Oracle ACE Associate since June 2019 › Hobbies: learning foreign languages, winter sports, climbing @AlecsEPM Alecs Mlynarzek AUSOUG Virtual Connect 2020
  • 3. HOW MANY SUBSCRIPTIONS ARE YOU PAYING FOR? ..and are you making the most of them? AUSOUG Virtual Connect 2020
  • 4. ORACLE EPM CLOUD LANDSCAPE › Enterprise Data (EDM) › Planning and Budgeting (EPBCS, PBCS) › Profitability and Cost Management (PCM) › Financial Consolidation and Close (FCCS) › Account Reconciliation (ARCS) › Narrative Reporting › Tax Reporting (TR) AUSOUG Virtual Connect 2020
  • 6. PROFIT AND COST MANAGEMENT Alignment with existing processes AUSOUG Virtual Connect 2020
  • 7. ARE YOU DOING JUST FINE WITHOUT A SOPHISTICATED PROFITABILITY SOFTWARE? Focus on Profit Winners Reevaluate Pricing Smart Cost Cutting Retain or grow the most profitable segments Retire or scale down profit losers Evaluate whether a new initiative is worthwhile Renegotiate break even point contracts Make decisions based on data: is it worth keeping this contract? How does a cost cutting strategy impact all business segments Follow the indirect cost impact when you retire an unprofitable service or product AUSOUG Virtual Connect 2020
  • 8. PROFITABILITY AND COST MANAGEMENT USE CASES Where should you be investing your sales, marketing and production resources? Do you know when it is the right time to retire a product, service or a channel? Are you confident your pricing is accurate? Are you sure you are getting the best value for money from your suppliers? Do you have the numbers required to drive accountability to thinking long term and aligning with company’s goals and vision? Multi-step allocations What If scenarios Full Transparency STRATEGIC PROFITABILITY Multi dimensional P&L Reporting Strategic P&L Cost Contribution detail SHARED SERVICES RECHARGES Why are you being charged this much for IT/Facilities/HR? Are your shared services provided at an optimal cost compared to a market standard? Your GL processes are already “heavy”. Would you like to move some of the processing outside of the GL? Can you defend the overall cost of your department or is it always difficult to explain the volume of spending?Thin Ledger REGULATORY COST REPORTING TAX TRANSFER PRICING Legal Entity P&L Recharges across LE Mark-up Price/Rate Negotiations Traceability of cost Auditable cost methodology Was your overhead rate estimate correct? Can you support it with real data/ real results? Do you need to adjust your prices /rates? Is proving your costing methodology an effort that takes multiple days and several people? Can you trace a cost end-to-end and prove its impact on the final rates? Are you confident you understand all elements of cost (Direct and Indirect)? Are you confident in how your base charge is calculated? Can you prove that Arms’ Length methodologies are being applied correctly? Are our charges difficult to explain? AUSOUG Virtual Connect 2020
  • 9. GET RELIABLE RESULTS – FAST! #Goals for Profitability and Cost Management Insight ▪ Rapidly evolve methodologies as the business changes. ▪ Analyze different approaches to yield optimal mix of services versus costs incurred by the entity. ▪ Provide What-If capabilities to assess impact of key business decisions on bottom line. ▪ Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance. ▪ Achieve accuracy through meaningful data distribution, automation, and system controls. ▪ Define consistent methodology across all management cycles. ▪ Create consistent comparisons when reviewing and updating methodology result and planning for future management cycles. ▪ Give units the detail costs they incur for the service consumed. ▪ Compare effectiveness of internal unit services with those of external providers to ensure efficiency. ▪ Allow LOB managers to understand cost to serve and profitability results. Flexibility Accuracy Shared Methodology Transparency AUSOUG Virtual Connect 2020
  • 11. FLEXIBILITY Live demo > Adding nodes in hierarchies does not impact existing higher-level allocation/ attribution rules > Explicit allocations can be added at any point > Logic changes can be done quickly and can be marked as updates within the rule description > Easy spin of What If scenarios, moving/ seeding business logic in minutes ▪ Rapidly evolve methodologies as the business changes. ▪ Analyze different approaches to yield optimal mix of services versus costs incurred by the entity. ▪ Provide What-If capabilities to assess impact of key business decisions on bottom line. Flexibility
  • 12. ACCURACY Live demo > Each allocation rule is uniquely identified > The balance dimension will track allocation in, allocation out, any adjustments as well as remaining cost to be allocated > Quick high-level validation through Rule Balancing reports > Easy drill down reporting via Smart View > Any data “hiccup” is accounted for ▪ Provide key stakeholders confidence in the numbers produced and methodologies employed to ensure compliance. ▪ Achieve accuracy through meaningful data distribution, automation, and system controls. Accuracy
  • 13. SHARED METHODOLOGY Live demo > Standardize your allocation methods across your entire organization > Use one tool for profitability analysis and cost allocation across multiple business segments > Apply the same logic to multiple scenarios: Actual, Forecast, Plan > Report results across all scenarios with a like for like comparison ▪ Define consistent methodology across all management cycles. ▪ Create consistent comparisons when reviewing and updating methodology result and planning for future management cycles. Shared Methodology
  • 14. TRANSPARENCY Live demo > Follow the “bouncing ball” within each allocation step > Ability to report on each level of your allocation process > By knowing and proving your data, you can assign accountability > Transparency of data = clarity of thought = targeted action ▪ Give units the detail costs they incur for the service consumed. ▪ Compare effectiveness of internal unit services with those of external providers to ensure efficiency. ▪ Allow LOB managers to understand cost to serve and profitability results. Transparency
  • 15. Status Quo Reactive Focused - Point Solutions Visionary - Transformation Market Disruption FOOD FOR THOUGHT > Where are you today? > Where are your competitors? > What is the cost of inaction? > What is the cost of not using the right software? > Where do you want to be? > How are you going to get there? > How important is domain expertise? > Who can help you get there? AUSOUG Virtual Connect 2020
  • 16. > Webinar: Drive Profitable Planning Decisions with EPM Cloud Profitability and Cost Management > Blogs: > OUT-OF-THE-BOX FEATURES: PROFITABILITY AND COST MANAGEMENT CLOUD SERVICES (PCMCS) - MODEL VALIDATION > OUT-OF-THE-BOX FEATURES: PROFITABILITY AND COST MANAGEMENT CLOUD SERVICES (PCMCS) - RULE DATA VALIDATION REPORT > OUT-OF-THE-BOX FEATURES: PROFITABILITY AND COST MANAGEMENT CLOUD SERVICES (PCMCS) - SYSTEM REPORTS: STATISTICS > And the list goes on... OTHER RESOURCES AUSOUG Virtual Connect 2020
  • 17. ALITHYA IS YOUR TRUSTED ADVISOR 2400 employees 3000+ projects 375+ ERP/EPM Cloud projects 23+ years NASDAQ ALYA 220+ Oracle consultants 7 Oracle ACEs 1000+ clients Enterprise Applications Application Services Business Strategy Data & Analytics Enterprise Resource Planning (ERP/SCM) Human Capital Management (HCM) Enterprise Performance Management (EPM) Customer Relationship Management (CRM/CXM) Cloud Infrastructure Migration Cloud Enterprise Services Digital Applications Development Legacy Systems Modernization Quality Assurance Strategic Consulting Digital Transformation Enterprise Architecture Organizational Performance Business Intelligence Data Governance Modern Data Architecture Artificial Intelligence Machine Learning AUSOUG Virtual Connect 2020
  • 18. infosolutions@alithya.com https://www.facebook.com/Alithya/ https://www.linkedin.com/company/alithyaoraclepractice/ @Alithya_inc Subscribe to our YouTube channel! Keep up with our blogs and thought leadership! Alecs Mlynarzek AUSOUG Virtual Connect 2020