Patch Today! Don’t Delay! Best Reasons to Upgrade Your EPM System

Putting off that upgrade to 11.1.2.4? Cloud not whetting your appetite for patches? Patch today. Don’t delay!

“But we’re going to the Oracle EPM Cloud soon!” you say. You should maintain your patches anyway. With the recurring maintenance, updates, and patches available to the EPM Cloud products, expect the on-premise patches to contain similar updates. An upcoming conversion to Oracle EPM Cloud products may benefit from running the latest on-premise codelines.

If you have an existing on-premise installation of Oracle EPM System, be sure to maintain the latest EPM System Patch Set Updates every 3 to 6 months. Here are a few great reasons why:

New Features

Patches often contain reactive bug resolutions to known issues; however, we have also been seeing new functionality released in patches for 11.1.2.4.

You Own It

You already pay for it! As long as your Oracle Maintenance contract is current (very likely if you are reading this article), you’re already paying for access to patches. Why leave them unapplied? You are running legacy code when the latest version costs you nothing additional. Windows XP was a great OS, but we’ve got to keep up with the times.

Supportability

Maximize your success by reducing time to resolution on your issues. Should you submit a support request to the vendor, the first line of response to a ticket is often about current patch levels. Once provided, the subsequent reply frequently contains a recommendation to apply the latest Patch Set Updates (PSUs) to see if that fixes the issue. Annoying? Perhaps you’re a pessimist. Or have just been remiss with your patching. I’ve certainly changed my mind on the matter and can better side with them. The reason? Supporting the latest codeline is more efficient and effective for the vendor. Your problem may have already been addressed in a code fix. They can better and more quickly support you if they are troubleshooting the current release instead of legacy code.

Stability

In older versions, patches seem to come out on a haphazard schedule. Over the last few years, Oracle has regularly streamlined EPM System patch releases – typically releasing Patch Set Updates quarterly, which are different from Patch Set Exceptions. PSUs are a grouping of PSEs or fewer, more significant PSEs that get regression tested collectively by the vendor and are released under a singular patch. We’ve gained a much higher degree of confidence with this bulk model of PSUs. The organization of release schedule and bug fixes is more dependable and greatly appreciated. The PSU model provides less ambiguity on which patches to apply and brings greater stability to all customers.

Upgrade

Maybe it’s bigger than patching. Are you not on version 11.1.2.4 of your EPM System? Compliance with Enterprise IT requirements around browser version and operating systems is often impetus for an upgrade. But there are also plenty of compelling new software features, functions, conventions, and improvements in 11.1.2.4.

Operating System (OS) support for current platforms maximizes your investment and supportability. When 2.4 came out, many customers were forced to upgrade their older systems for compliance with the latest enterprise standards for server operating systems and/or client browser versions. Instead of being faced with an IT mandated technology upgrade, an upgrade on the business’ schedule is preferred.

What Kind of Effort is Involved?

The comprehensive effort to bring a simple deployment (3-4 servers, no High Availability) up to the latest PSUs is typically less than a day per environment. That includes an analysis of existing patches, the patching itself as well as any prerequisites, and a post-check verification to confirm all patches applied are properly indicated in the corresponding inventories.

An initial patch application may take a little bit longer because there are often common prerequisites to address that don’t have to be handled with subsequent patching. There are also considerations like bringing WebLogic up to the latest patch level, as well as one-offs like the fixes for the Equifax-discovered vulnerabilities, that don’t happen frequently. Once you’ve got a solid base of primary critical patching, additional patching events are typically shorter.

Patching can be tricky. Documentation can often be ambiguous, whether it be an unintended omission or even assumed knowledge based on an implied experience or understanding of the product. Sometimes post-install instructions get skipped or SQL statements do not get executed properly as part of the patch. Less experienced resources typically only patch the EPMSystem11R1 Oracle Home; however, did you know that Oracle’s ADF framework also has an Opatch directory under oracle_common? Possibly because those are often prereqs. But what about Oracle Data Integrator (ODI) and Oracle HTTP Server (OHS)? They also may have applicable OPatches. Who knows what you’re missing? We do! Let’s button it up.

Contact us for more details.

Laser Tag for Cloud Analytics

A friendly game of laser tag between out-of-shape technology consultants became a small gold mine of analytics simply by combining the power of Essbase and the built-in data visualization features of Oracle Analytics Cloud (OAC)! As a “team building activity,” a group of Edgewater Ranzal consultants recently decided to play a thrilling children’s game of laser tag one evening.  At the finale of the four-game match, we were each handed a score card with individual match results and other details such as who we hit, who hit us, where we got hit, and hit percentage based on shots taken.  Winners gained immediate bragging rights, but for the losers, it served as proof that age really isn’t just a number (my lungs, my poor collapsing lungs).  BUT…we quickly decided that it would be fun to import this data into OAC to gain further insight about what just happened.

Analyzing Results in Essbase

Using Smart View, a comprehensive tool for accessing and integrating EPM and BI content from Microsoft Office products, we sent the data straight to Essbase (included in the OAC platform) from Excel, where we could then apply the power of Essbase to slice the data by dimensions and add calculated metrics. The dimensions selected were:

  • Metrics (e.g. score, hit %)
  • Game (e.g.Game 1, Game 2, Total),
  • Player
  • Player Hit
  • Target (e.g. front, back, shoulder)
  • Bonus (e.g. double points, rapid fire)

With Essbase’s rollup capability, dimensions can be sliced by any one item or at a “Total” level. For example, the Player dimension’s structure looks like this:

  • Players
    • Red Team
      • Red Team Player 1
      • Red Team Player 2
    • Blue Team
      • Blue Team Player 1
      • Blue Team Player 2

This provides instant score results by player, by “Total” team, or by everybody. Combined with another dimension like Player Hit, it’s easy to examine details like number of times an individual player hit another player or another team in total. You can drill in to Red Team Player 1 shot Blue Team or Red Team Player 1 shot Blue Team Player 1 to see how many times a player shot an individual player. A simple Smart View retrieval along the Player dimension shows scores by player and team, but the data is a little raw. On a simple data set such as this, it’s easy to pick out details, but with OAC, there is another way!

Laser Tag 1

Even More Insight with Oracle Analytics Cloud (OAC)

Using the data visualization features of OAC, it’s easy to build queries against the OAC Essbase cube to gain interesting insight into this friendly folly and, more importantly, answer the questions everybody had: what was the rate of friendly fire and who shot who? Building an initial pivot chart by simply dragging and dropping Essbase dimensions onto the canvas including the game number, player, score, and coloring by our Essbase metric “Bad Hits” (a calculated metric built in Essbase to show when a player hit a teammate), we discovered who had poor aim…

Laser Tag 2

Dan from the Blue team immediately stands out as does Kevin and Wayne from the Red team!  This points us in the right direction, but we can easily toggle to another visualization that might offer even more insight into what went on. Using a couple of sunburst type data visualizations, we can quickly tie who was shooting and who was getting hit – filtered by the same team and then weight by the score (and also color code it by team color).

Laser Tag 3

It appears that Wayne and Kevin from the Red Team are pretty good at hitting teammates, but it is also now easy to conclude that Wayne really has it out for Kevin while Kevin is an equal opportunity shoot-you-in-the-back kind of teammate!

Reimagining the data as a scatter plot gives us a better look at the value of a player in relation to friendly fire. By dragging the “Score” Essbase metric into the size field of the chart, correlations are discovered between friendly fire and hits to the other team.  While Wayne might have had the highest number of friendly fire incidents, he also had the second highest score for the Red team.  The data shows visually that Kevin had quite a few friendly fire incidents, but he didn’t score as much (it also shows results that allow one to infer that Seema was probably hiding in a corner throughout the entire game, but that’s a different blog post).

Laser Tag 4

What Can You Imagine with the Data Driving Your Business?

By combining the power of Essbase with the drag-and-drop analytic capabilities of Oracle Analytics Cloud, discovering trends and gaining insight is very easy and intuitive. Even in a simple and fun game of laser tag, results and trends are found that aren’t immediately obvious in Excel alone.  Imagine what it can do with the data that is driving your business!

With Oracle giving credits for a 30-day trial, getting started today with OAC is easy. Contact us for help!

A Safe Step into the Cloud: The Argument for Account Reconciliation Cloud Service (ARCS)

Before forecasting models, before fancy dashboards and pretty reports, before a data point is even considered “Actual” comes the age old question…

                “Does this number even look right?”

Bulls*#!

Account reconciliations – the means by which this question is answered – are a fundamental part of the financial close process. Imagine you are trying to build a sandcastle. Now imagine your “sand” is harvested from a cow pasture. You *could* continue to build this “sandcastle,” but you will likely finish with a pile of…bull-sand. In the same way, if your account balances and transactions have an integrity equivalent to “bull-sand,” this will inevitably lead to problems down the line.

sandcastle_collapsing_400px

The shift to the Cloud has complicated the decision-making process when considering new enterprise-wide application tools. The choice of whether to go with a known “on-premise” solution or take a bold step into Cloud solutions is a daunting one, particularly when considering moving high-visibility cycles such as forecasting or financial consolidations into this brave new world.

A Justified Recommendation

Take the measured move instead. If you feel hesitant to go “all-in” on Cloud offerings, here are four reasons why you should consider entering the Cloud through the arch of ARCS…the ARCSway (Get it?…archway…ARCSway…never mind – just keep reading…)

Safe Bet on a Strong Foundation

Oracle introduced Account Reconciliation Cloud Service (ARCS) as the “one stop shop” solution for managing and streamlining the reconciliation cycle in the Cloud back in 2016. While it’s not uncommon for some EPM products to lose functionality during their initial transition into the Cloud space, ARCS retains the “good bones” of its on-premise counterpart – Account Reconciliation Manager (ARM). ARCS builds upon the clever functionality and customizability of ARM, released in 2012, yet with the slick look and feel of the Oracle Cloud experience.

Since its release, ARCS has become the “golden child” of the reconciliation product family, receiving not only “first dibs” on refinement of existing capabilities, but also benefiting from the newest components such as Transaction Matching (note: this has separate licensing than the Reconciliation Compliance component of ARCS).  As the product continues to gain steam, this trend is expected to continue. Between utilizing the tried-and-true foundation of the ARM tool and having Oracle’s watchful eye, ARCS is a safe bet.

No Mistakes with Modularity

Unlike some applications, ARCS is easy to implement in pieces. While good design will certainly prevent future heartache, there are no decisions made on Day 1 of a project that cannot be modified or enhanced in the future:

  • Want to manually enter data for reconciliations today, but automatically load them from a source system tomorrow? We can do this.
  • Missing fields for additional detail you would like users to include? Can be ready for next period (or the current one even!)
  • Only want to rollout in one country to start? No problem – go ahead and make the other entities jealous!

While some changes are “cleaner” than others (I am looking at you, Profile Segments!), ARCS welcomes you to “test the waters” and see what works in your company without needing to go “all-in.” For example, a current client has a live ARM application that provides a viable solution for its reconciliation process needs given the initial project timeline and budget. Although the client wasn’t able to fully utilize the available functionality at the time, the modularity of the reconciliation tools (both ARM and ARCS) allows the opportunity for enhancements without punishing this design decision – we are now revamping the client’s auto-reconciliation setup to further streamline the process. For Partners, this means additional project phases; for clients, this means not biting off more than you can chew (win-win!).

Fast Implementation Cycles and Rapid ROI

Relative to other EPM project lifecycles, ARCS is typically a quick implementation. As with all projects, there are certainly exceptions, but with Ranzal’s “Quick Start” methodology, we have stood up applications in just six weeks! A strong inventory of project “accelerators” – custom tools and scripts that Ranzal has developed based on common requests across multiple clients – allows sophisticated deployments in a timely manner. Couple this with the inherent time saving benefits of Cloud technology (i.e. lack of infrastructure setup, etc.), and ARCS shines as the first step in a Roadmap, producing tangible metrics for evaluation (ex. completion percentages per period, timeliness per Preparer/Reviewer, reconciliation accuracy, etc.) and giving users a taste of the Oracle Cloud experience in a short period of time.

You Don’t Have Anything Today and It’s Costing You

I know that may read like a presumptuous fear tactic, but hear me out:

Account reconciliations ARE being completed in your company – one way or another. Whether that means your CPAs are *click*click* clicking away on their keyboards to manually update Excel spreadsheets or – heaven forbid – actually printing out recons to hand sign, if you cannot name the system that is comprehensively handling your reconciliation cycle, it’s because there isn’t one.

And this is normal. But there are costs associated with this normalcy.

Reconciliation cycles aren’t sexy (well…personal taste…) and often have low visibility to upper management. And yet (!) the reconciliation process is often widespread across the company spanning business entities, departments, and corporate ladders (I see you, Mr/s. Director signing off on recons). ARCS is an attractive option when considering enterprise-wide Cloud solutions to “test run” because everyone can try it. A successful ARCS implementation paves the way for easier adoption of future projects – it gets everybody onboard.

Step Through the “ARCSway” and Ditch the Bulls*#!

The shift to the Cloud is disrupting the traditional market of on-premise EPM solutions. As you look at the new strategic options available to your company’s roadmap, consider ARCS as a “first step.” Of note, it is important to have an accurate understanding of the tool – ARCS is first and foremost a management tool, and although it can provide helpful information in troubleshooting account variances, it does not replace actually performing a reconciliation in an ERP system. Additionally, customizing reports can be difficult (unless you are familiar with BI Publisher), although the out-of-the-box reports and strong dashboarding capabilities largely make up for this limitation. All-in-all, I strongly recommend this product as an introduction to the new Oracle offerings. ARCS’ “low risk, high reward” nature provides real company value quickly while presenting you with a good picture of life in the Cloud. Now is the perfect time to ditch your “bull-sand” reconciliation process and update to a more solid foundation in the Cloud through the ARCSway.

Contact us today for details about a custom Cloud solution for your business needs.

Large Sandcastle

Easy Value with FDMEE Reports

Strolling into work sipping coffee, the realization soon hits that information is needed out of Financial Data Quality Management Enterprise Edition (FDMEE) for internal audit.  After logging in to Data Management, what happens?? We freeze!  And the questions begin swirling in our heads:  How do we get data out of FDMEE?  What are the drivers needed to do that?  What tools are needed to write an FDMEE report and from where do we get them?

At this point, it is often easier to evaluate existing reports within the application for what they lack rather than start creating a report from scratch and then modify and/or update them to meet our specific needs.

A Variety of Report Options

FDMEE Reports does not equal Financial Reports. From within the application, there are numerous options available to choose from for reports.  Most of these are updated reports from FDM Classic.  These groups help to focus on and categorize common reports together and provide information on the following:

  1. Audit Reports display all transactions for all locations that compose the balance of a target account
  2. Check Reports provide information on the issues encountered when data load rules are run
  3. Base Trial Balance Reports provide detail on how source data is processed
  4. Listing Reports summarize metadata and settings (such as the import format, or check rule) by the current location
  5. Location Analysis reports provide dimension mapping by the current location
  6. Process Monitor Reports shows locations and their positions within the data conversion process
  7. Variance Reports display source and trial balance accounts for one target account, showing data over two periods or categories
  8. Intersection Reports identify invalid HFM data load intersections

Below is a screen shot of the default FDMEE report groups:FDMEE Reports 1

 

 

 

 

 

 

 

 

Getting Started

While the canned reports are a great start, creating custom reports allows more creativity and only requires the following:

  1. Microsoft Word (2010+)
  2. Oracle BI Publisher 11.1.1.7 or 11.1.1.9
  3. Working knowledge of SQL
  4. Working knowledge of the FDMEE database tables

First, if you do not currently have Microsoft Word installed, this process isn’t going to work.  After confirming your version of Word, navigate to Oracle to download the BI Publisher software. (http://www.oracle.com/technetwork/middleware/bi-publisher/downloads/index-101746.html).

After installing the software, an access toolbar will become available:

FDMEE Reports 2

This is where the good nerdy stuff happens!  You need to write a query, via SQL*Developer or SMSS that can then be dropped into FDMEE to produce an XML.  In FDMEE, the query will produce an XML that contains the first 100 rows when you test/validate.  This XML file is what you can bring into BI Publisher (via Word) to produce your report.  Below is a screen shot of FDMEE-generated download for Word:

FDMEE Reports 3

And YES! FDMEE CAN Accept Inputs

FDMEE has the ability to have many prompts.  The information can be user input or a selection from a drop-down.  This information can be gathered/compiled in multiple smaller report queries or from out-of-the-box drop-downs.  Below is a sample FDMEE report with input parameters:

FDMEE Reports 4

Ample Value

Custom FDMEE Reports can be valuable in many ways.  For example, reports can be written to:

  1. Provide Data Compare analysis for data validation activities
  2. Track how many times an end user has exported data for a specific period
  3. Download the maps for a location to Excel
  4. List all the Journals posted by period and category
  5. List all the maps modification activity by date range
  6. List all the location and category and provides the status of each POV

Each of the report styles listed above has provided valuable information to both auditors as well as the administrators of the FDMEE application.   One of the most valuable reports is the one that permits quick data validations and reconciliations because it helps with COA conversions as well as upgrades to the EPM suite.  Here is a sample of a custom journal listing report:

FDMEE Reports 5

…and a custom FDMEE process monitor report:

FDMEE Reports 6

The Verdict

The possibilities and use of FDMEE for supplemental reporting is not limited to trial-balance analysis, trending, or variance reports. Reports are often created to provide additional valuable information for auditors, data workflow analysis, or external and downstream systems.  In many cases, they are used to provide additional and supplemental detail to IT or Financial auditors.  The verdict:  there is easy value added with variety and simplicity with FDMEE Reports.

Contact us at info@ranzal.com with questions about this product.

Connecting the Value of IT: A Disciplined Solution for Service Costing and Chargeback

This post corresponds to the webinar “Connecting the Value of IT: A Disciplined Solution for Service Costing and Chargeback,” the last in our “Let Your Profitability Soar” webinar series. You can access the recording here.

 

Within an organization, technology is mission-critical to most business strategies, and IT costs represent a significant portion of back office spend.

Among their many responsibilities, the CFO and the CIO must make sure that:

  • Technology spending is aligned with business strategy
  • Business applications and end-user services are delivered efficiently and cost-effectively
  • Coherent project portfolios that grow and transform the business are created and nurtured

Within this new economy, a key ongoing goal of the CIO is to make sure that IT is aligned with business strategy.

Generally, this IT-to-Business Strategy alignment is achieved in two ways:

  1. Running the business: Providing a cost-effective level of internal services necessary for sustaining business activity.
  2. Building the business: Managing and delivering portfolio development projects that are prioritized and aligned with all key business initiatives aiming to improve efficiency and aid in gaining competitive advantages.

The Nature of the Problem

One challenging pattern we see time and again is the ongoing disconnect between the CIO and the CFO.

Some might say this disconnect is an inevitable result of the fact that technology is moving so fast and we don’t always have the time to stop and assess its value. Understandably, it can be difficult for a CFO to get away from all the checks and balances just to get the financial books closed, let alone turn attention to the books that measure performance at greater depths, like line of business.

In general, as a function of the role, the CFO does not talk servers, desktop deployments, applications or other semantics of the technology business. Conversely, with many companies establishing Technology Shared Service Centers, pressure is placed on the CIO to operate the business of IT with the same financial disciplines the CFO requires of all lines of business. The CIO must connect the value of IT services and capabilities to internal business partners. To achieve this, IT Finance teams require performance management solutions that are IT-specific, yet are connected to Finance, to ensure efficient allocation of resources and effective delivery of internal services.

Part of the CFO’s role is to look at the technology projects and initiatives and think about how all of this technology is adding value. CIOs have to fill information voids, while also having to build their own financial models and performance management book of record using their own resources.

Two seemingly differing views of value can be hard to navigate and leverage. If two divergent approaches are not connected in a common view among the key stakeholders, then—more often than not—there is ongoing value-related confusion. Ultimately, the dissonance between the line of business owners can stall or even paralyze decision-making.

A Better Language Is Needed

For the good of your organization, it’s imperative that the CIO and the CFO speak the same shared language of value and that they connect in an effort to move forward in the most aligned and productive manner possible.

Speaking a shared language—one that offers a unified financial model view and is based on shared definition of value—is a key to finding a solution. The disciplines of ITFM (IT Financial Management) is about equipping both of these executive-level offices and their teams with a better language.

With an ITFM solution, you are able to:

  • Reduce the time that IT Finance spends on managing the business processes, providing more time for value-added analytical activities
  • Give IT Managers more detailed, timely, accurate data to better understand the cost & effectiveness of the services and projects they are delivering
  • Provide Line-of-Business managers with cost transparency into IT allocations and chargebacks, allowing them to better align their consumption of services with their business goals

ITFM focuses on these finance business processes:

  • IT Planning: Budgeting & forecasting of IT Operating and Capital Spend
  • IT Costing: Linking supply side financial cost structures with demand side consumption for services and projects
  • IT Chargebacks: Equitably charging lines of business for internal services and projects performed (or Showback)

IT Finance Organizations typically manage these processes through a series of multiple systems and offline spreadsheets. These processes are not ideal, as they create pain as far as inefficiencies and ineffectiveness in terms of results.

Our preferred solution for IT Service Costing—co-developed with Oracle—is based on PCMCS (Profitability and Cost Management Cloud Service). Oracle’s PCMCS is a cloud-based, packaged performance management application. It offers, in one package, a rules engine for cost allocations, embedded analytics and data management platform.

When developing the solution with PCMCS, the following were top priorities for our team:

  • That it required no large initial investment
  • That it was accessible to all
  • That it was always updated/up-to-date
  • That limited IT involvement was needed

Oracle IT Financial Management Solution Overview

Connecting Value of IT Image 1

The ITFM solution, a joint development effort with Oracle and based on valuable feedback and results from multiple Ranzal customer implementations, offers all of the following in one package:

  • Pre-Packaged Content for Cloud or On-Premise
  • Pre-Built Data Model
  • Pre-Built Costing Model & Reporting Content
  • Pre-Built Interface Specifications

A key component of the PCMCS IT Costing & Chargeback Template is its approach to modeling IT Like a Service Business, which includes the following modules:

  • Model Financials & Projects: This first step is focused on modeling financial projects, allowing you to combine multiple data sources, perform cost center allocations and, for those customers without an existing project costing system in place, to perform basic project costing and project allocation functions.
  • Complete Costing of IT Operations: This second pillar of the solution provides a flexible framework that allows you to combine data from multiple sources, perform resource costing and perform service costing.
  • IT as a Business Service Provider: This third leg of the solution service considers catalogue & bill rates, contribution cost trace, consumer showbacks and consumer chargebacks.

 We Have Options, You Have Options

Our Flexible Maturity Model allows customers to start where they feel most comfortable, and progress in a way that is focused on maximum flexibility for maximum effectiveness. No one size fits all, and we believe in starting right where you are.

Connecting Value of IT Image 2

 

For more information or to request a demo, email us. Be sure to ask if your company qualifies for our one-day complimentary PCMCS assessment of your IT Service Costing needs.

Full Circle Planning, Cost Management, & Profitability in the Manufacturing Industry

This post corresponds to the webinar “Full Circle Planning, Cost Management & Profitability in the Manufacturing Industry.” You can access the recording here.

As we are all aware, today’s manufacturing industry faces multiple ongoing challenges, including:

  • Changing customer/consumer demands
  • Shrinking operating margins
  • Ever-changing compliance and regulatory pressures
  • Increasingly globalizing economy
  • Lowered availability and visibility of detailed information

Now more than ever, manufacturers’ focus is not just on growth, but, more specifically, on profitable growth.

 

Managing Profitable Growth

When it comes to profitable growth and insight into profitability, the first place to start is the consolidated P&L.

But while the P&L offers information on profitable growth, it does not help manage profitable growth. The financial P&L provides limited insight into costs, profits and their underlying drivers, from the perspective of their lines of business, products, customers, markets and channels. Cost bases are imperfect and are limited to legacy standard costing and unstructured cost extracts. Results lack a matching of costs and revenue to manage margins at the same strategic view as revenue.

 

The Need to Focus on Strategic P&Ls

To address and contend with these challenges, we recommend a greater focus on more strategic P&Ls for the manufacturing industry.

Strategic P&Ls provide insight into both direct costs and indirect costs.

  • Direct Costs include costs directly associated with:
    • The making of a product or delivery of a service
    • Parts for the product
    • Labor for Service Delivery
    • Costs directly attributed to the selling to a customer or client
    • Shipping and handling expenses
    • Customer processing expenses
  • Indirect Costs include costs that are not directly attributable to the making of a product, delivery of a service, or the selling to a customer:
    • Operating costs (e.g., Call Center, Distribution)
    • Selling costs (e.g., Sales & Marketing)
    • Investment costs (e.g., R&D, Initiatives)
    • G&A costs (e.g., IT, HR, Finance, Admin)
    • Finance charges for Cost of Capital Employed

Measurement of indirect costs in particular can be difficult.

 

What Would A Solution for the Manufacturing Industry Look Like?

With all of this in mind, it’s important to look at the big picture when determining what manufacturers can do to attain strategic P&Ls and overcome their challenges?

The ideal solution for the manufacturing industry would:

  • Design, support and evolve to an integrated financial process
  • Leverage operating metrics and key assumptions to:
    • Link business drivers behind financial performance
    • Modify drivers and assumptions to plan future performance and attain strategic P&Ls
    • Drive accountability to Lines of Business
  • Offer a consistent and transparent framework to support indirect cost attribution
  • Use integrated applications and tools to support and adapt to changing business processes
  • Provide robust reporting to business for transparency into causal factors

A true full-circle planning, costing and reporting solution that aligns and adapts to an integrated financial process includes the following:

  • Driver-based revenue planning and departmental expenses leveraging the actual financial data, operational metrics
  • Integrated costing capabilities that can allocate indirect expenses to lines of business by leveraging the same actuals, plans and drivers used in the planning process
  • Robust and real-time reporting to surface strategic P&Ls by Customer, Product and other Lines of Business

 

Some Solutions are Ineffective and Unsustainable

Our team at Ranzal has seen many manufacturers attempt to piece together a solution using various combinations of spreadsheets, ERP, custom and packaged applications.

Typically, spreadsheets are the most common ingredient given their flexibility and accessibility. But spreadsheets tend to be error-prone, highly manual/labor-intensive and prone also to risk regarding controls and governance. We’ve also seen customizing the ERP as a common solution-oriented approach, but this can be too expensive, overly IT-centric and can also be somewhat of a “black box.” And lastly, custom applications are slow to adapt, can promote high effort and cost and also function like a “black box.”

 

Oracle’s EPM as the Foundation for Full-Circle Planning

We recommend Oracle EPM’s packaged applications to be the foundation to configuring the right full-circle planning, costing and reporting solution that avoids the constraints and risks other avenues bring on.

The specific Oracle EPM offerings that support a full-circle planning, costing and reporting solution involve:

  • Planning & Budgeting Cloud Service (PBCS)
    • Best-in class solution for financial planning, budgeting and forecasting
    • Align top-down and bottom-up processes
    • Consistency of assumptions, calculations and methodologies
    • And many more features here
  • Profitability & Cost Management Cloud Service (PCMCS)
    • Computes Profitability for Units, Segments and Services
    • Pre-Built Framework for profitability modeling: Dimensions, Support for Multiple Cost Allocation methodologies, Validation reporting
    • Graphical Interactive Traceability Maps & Dashboards
    • Measures, Allocates and Assigns Cost and Revenues via User-defined Rules
    • And many more features here
  • Tightly integrated with the Oracle EPM Cloud
    • Consistent Administration with EPM Cloud Offerings
    • Shared Reporting Tools like Financial Reports & Smart View for Office
    • Proven Technology Stack

We believe a comprehensive solution focused on a “Technology Trio” of Integrated Business Analytics, or the convergence of: EPM, BI and BD solutions. Experience and results have shown us that this combination provides the tools and answers needed for improved business performance, increased innovation, better vision, and increased business value.

For more information or to request a demo, email us. Be sure to ask about our complimentary one-day Profitability and Cost Management assessment and how the newly-released Oracle Profitability and Cost Management Cloud Service (PCMCS) can help modernize your solution.

Standardization of Comparative Analytics in Healthcare

A Comprehensive Solution for Value-Based Care

As healthcare providers are quickly consolidating and purchasing smaller health systems, standardization is paramount to enable comparative reporting across organizations or sites that facilitates changing attitudes, decreased costs, and better, more cost effective care. Provider systems need to operate independently using a standardized enterprise system process to effectively make decisions around costs, health outcomes, and patient satisfaction.  Without standardization, the analysis of metrics can require considerable work and time and create issues when comparing like sites since appropriate metrics can mean totally different things at the underlying base member calculation.

A standardized solution is simple – an enterprise-based model that allows data to be shared across systems and applications to facilitate comparative analytics with data integrity:

MH Image 1

Such a solution offers the ability to compare productivity indices across departments against national standards using a standard calculation approach with federated master data across all toolsets, resulting in comparative analytics to drive efficiencies and value-based care:

MH Image 2