Management Reporting with Oracle Essbase

Yang Yang

Business Intelligence Sales Consultant

Agenda
Management Report challenges
Value of Essbase Demonstration Q&A

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Different Questions Used for Measuring and Improving Performance

Historical Questions Situational Questions Forward-looking Questions

Standardized Reporting

Ad-Hoc Query & Analysis

Modeling and Forecasting

Past

Present

Future

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The Challenges to Answering Forward Looking Questions

1 2 3

Time-consuming Management reporting and Variance analysis

Users living in spreadsheet hell

Inability to build new scenarios

Copyright 2009, Oracle and / or its affiliates. All rights reserved.

The Challenges to Answering Forward Looking Questions

1 2 3

Time-consuming Management reporting and Variance analysis

Users living in spreadsheet hell

Inability to build new scenarios

Copyright 2009, Oracle and / or its affiliates. All rights reserved.

Management Reporting is Part of a Broader Analytical Ecosystem

Management Reporting

Operational Analytics

Financial Reporting

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Management Reporting is a Process

Helps understand Risks and future implications Of business alternatives and decisions

Forecasts Financial & Operational

Budgets Financial & Operational

Operational Data - Actuals Multiple data sources Financial KPIs and Operational KPIs Frequent updates Many iterations New data created Forward looking Variance & what-if analyses CXOs and Managers Knowledge workers Analysts

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Why are Cubes Important?

OLAP Data Powers Management Reporting
Highly Efficient Data Storage Very Fast Data Access and Retrieval Data Organized in Dimensional Model, Easy for End-users to Understand Creates new Information via Write-back to Power What-if Scenarios Powerful Dimensional Calculation Engine

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Forward-looking Analytic Engine

Fast and Simple with Essbase
Powerful Calculator
Hundreds of built in functions and algorithms Trending Goal seeking Procedural calculations

Financial Intelligence
Critical for Variance Analysis, understands better / (worse) Essbase understands Financial Data and Calculations Time Balances

Time Intelligence
Time Series calculations are hard to do Yet, an extremely common BI requirement Essbase makes it very easy at any level, any dimension, for any type of calendar

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Essbase is a Powerful Calculator

Hundreds of Built-in Functions and Algorithms

Forecasting Scenario comparison Trending Goal seeking Procedural calculations Custom Calculations What if testing

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Intelligent Metrics Deliver Insight

Time Consuming & Complex to get Multiple Views
Formulas for summarizing data can be sophisticated
Not just SUM, AVG, MAX and MIN Different types of aggregations for the same views of data
Headcount
Oct Sales Marketing Consulting Tot. Field Teams 80 42 39 161 Nov 87 40 46 173 Dec 87 41 46 174 Q4 Oct $ 1,200 $ 800 $ 450 $ 2,450

Expenses
Nov $ 1,100 $ 870 $ 480 $ 2,450 Dec $ 1,500 $ 940 $ 510 $ 2,950 Q4

87 41 46
174

$ $ $ $

3,800 2,610 1,440 7,850

Last value

Sum

How can you guarantee results when youre navigating / drilling through your data?

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Financial Intelligence
Fast and Simple with Essbase
Critical for Variance Analysis Essbase understands Financial Data and Calculations Beyond simple aggregation Time Balances Sophisticated Functions Currency Calculations

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Time Intelligence
Fast and Simple with Essbase
Time Series calculations are hard to do Yet, an extremely common BI requirement Essbase makes it very easy at any level, any dimension, for any type of calendar

Totals, Averages, Cumulative, Max/Min, other calculations for: H-T-D (history-to-date) Y-T-D (year-to-date) S-T-D (season-to-date) P-T-D (period-to-date) Q-T-D (quarter-to-date) M-T-D (month-to-date) W-T-D (week-to-date) D-T-D (day-to-date) Prior, Next, Other period comparisons

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Dynamic Time Analysis

Any Type of Time Analysis One Outline

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The Challenges to Answering Forward Looking Questions

1 2 3

Time-consuming Management reporting and Variance analysis

Users living in spreadsheet hell

Inability to build new scenarios

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Most Modeling is Done Here!

It is a Good Departmental Tool, but

Disconnected Data Security Risks Error-prone Doesnt scale No controls / audit trails

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Users are Accustomed to Spreadsheets

Time

Spreadsheets are inefficient for more than two dimensions Data (Measures) for each combination of Row by Column E.g., Sales for Qtr1 = 95,820

Measures

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But Business is More than Two Dimensions

Market

Product

Time

We typically look at more than two dimensions (multidimensional) So what do we do?

Add more column headers!

In our example:
Total Market BY Total Product, Actual Sales for Qtr1 = 95,820

Creates HEADACHES!
Scenario

Measures
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Multi-Dimensional = Multi-Sheet

Add a sheet for each market

4 Markets + Total = 5 Sheets

The problem exacerbates

Market(s)

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Multi-Sheet = Nightmare
How about by Product and by Market?
5 Markets BY 500 Products = 2500 Sheets!

What about by Industry too? Welcome to Spreadsheet Hell

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The Solution: Eradicate Spreadsheet Hell

Essbase Provides the Best of Both Worlds

Oracle Essbase

Use the same familiar tools, Excel, Word, PowerPoint Achieve Speed of Thought response time Benefit from a centralized enterprise-scale solution

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The Challenges to Answering Forward Looking Questions

1 2 3

Time-consuming Management reporting and Variance analysis

Users living in spreadsheet hell

Inability to build new scenarios

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Volatility Demands Rapid Scenario Modeling

Commodity Prices, Energy Prices, Interest Rates

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But Models are Constantly Evolving

Dynamic, Iterative Processes Drive New Questions

McDonalds: application that collects POS data every 15 minutes to monitor & model customer service levels

Alcoa: marketing application called SMART (Strategic Marketing Analysis and Reporting Tool) for tracking and modeling product profitability across 29 dimensions

Southwest Airlines: application for modeling fuel costs and demand (98% forecast accuracy after the 9/11 crisis)

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Hundreds of Spreadsheet Models Throughout the Organization

How many does your organization have?

Executive Management

Finance
Variance analysis Project / initiative funding models Valuation Risk Management

HR
Workforce planning Impact analysis Benefits models

Sales & Marketing

Customer & Store Profitability Demand Planning Merchandise Planning Customer Sat

Operations / Manufacturing
Parts Management Supply chain cost optimization Resource Management Warehouse profitability

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Forward-looking Analytic Engine Oracle Essbase

Multi-user write back
Uninterrupted analyses Secure, shared, single version of the truth

Fast and Intuitive

Data shown how users see it tree structure

Centralized
Functions, calculations, aggregations

Oracle Essbase

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Centralized Complex Calculations

Easy to Define, Validate and Maintain for All Users

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Oracle Essbase
Forward-looking Analytics
Pain
Time-consuming Management reporting & Variance analysis Users living in spreadsheet hell

Unique Value
Financial & Time Intelligence

Centralized multi-user write back modeling environment Centralized complex calculations

Unable to build new scenarios

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Providing Enterprise-class OLAP

Most Scalable Online Analytic Processing Technology Multiple and cross platform deployment
Unix and/or Windows 32 / 64-bit

Application optimization
Partitioning Clustering Tuning Trickle Feed

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Providing Top Performance Scalability

Market-leading OLAP Architecture
Load & Calculation
Identical Hardware (Minutes) 350 300 250 200
162 294

Query Response
50 Concurrent Users (Seconds) 14 12 10 8 6 4
11.9

CPU Utilization
50 Concurrent Users (%) 90 80
83

70
60 50 40 30

150 100

20 50
0
Competing Vendor Essbase

2
0
Competing Vendor 0.01 Essbase

10 0
Competing Vendor

Essbase

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More Than 30,000 Users

5,000 views & reports

Sales HR Purchasing Finance

24 x 7 availability Maximum query time

less than 4 seconds

We realized we needed a powerful OLAP systemone that was highly dimensional and detailedthat could provide speed of thought response for tens of thousands of users. We selected Hyperion because it met our scalability and performance requirements.

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31

Better Information, Better Decision-making

Comprehensive Intelligence Across Operations
Walmart Stores, Inc., is one of the preeminent retailers worldwide with more than 7000 stores operating in 14 countries. Serving more than 176 million customers per week.

Before

After Scalable, easy to use, collaborative merchandise planning application Winner of the Walmart Team Innovation award Expanding to include integrated analytics across major operations, including logistics, transportation, category management, finance, human resources, real estate and operations Repeatable solution rolled out at Walmart International

Existing system incapable of scaling from 1000 to 1500 users Complex environment - only 40% of users were accessing existing system Spreadsheet based with no standardization of business rules Cumbersome to integrate information across business functions.

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Oracles Integrated Analytic Solution

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Demonstration

Essbase Demonstration

1 2 3

Powerful Querying

Comprehensive Calculation

Writeback and What-if Analysis

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Copyright 2009, Oracle and / or its affiliates. All rights reserved.

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Appendix

Essbase & Oracle OLAP

Complementary, Strategic, Better Together
Oracle Essbase Oracle Database OLAP Option

Purpose Buyer

BI & analytic applications built and maintained by business analysts.

Line of Business (LoB).

Accelerate query performance in an Oracle DW

IT Users of SQL-based business intelligence tools who query data in the database. Optimized for data in the Oracle database. OLAP in the Oracle Database

Line of Business users who query and create data within Typical End Users Essbase tools and OLAP applications. Data Management Easily combine data from a wide variety of data sources. Strategy Architecture OLAP in a server, part of Fusion Middleware

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Powerful Product Volume Forecasting

Forecast Speed and Accuracy for 30,000 Products
Worlds 6th largest food company, $15.9 billion in FY09 net sales. Brands marketed in more than 100 countries, more than 30,000 employees.

Before Unable to analyze at product volume forecast details Only working with summarized data Cumbersome to create forecasts for understanding product volumes One month to create forecast based user input Difficult to merge internal invoice and master data with third-party syndicated data and user input

After Product-level forecasting leveraging 4 years of weekly volume data for 30,000 base products for 5 versions for each of the 15 forecast scenarios. Iterative what if process quickly restates all products for an entire divisions forecast. Delivers forecast results at the speed of thought for top-down, bottoms-up and middle-out methods.

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Better Information, Better Decision-making

Comprehensive Intelligence Across Operations
Walmart Stores, Inc., is one of the preeminent retailers worldwide with more than 7000 stores operating in 14 countries. Serving more than 176 million customers per week.

Before

After Scalable, easy to use, collaborative merchandise planning application Winner of the Walmart Team Innovation award Expanding to include integrated analytics across major operations, including logistics, transportation, category management, finance, human resources, real estate and operations Repeatable solution rolled out at Walmart International

Existing system incapable of scaling from 1000 to 1500 users Complex environment - only 40% of users were accessing existing system Spreadsheet based with no standardization of business rules Cumbersome to integrate information across business functions.

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No More Spreadsheet Hell

Improved Performance Visibility and Service Quality
Third largest pizza chain in the US 3000 locations worldwide More than $1 billion in sales

Before
Excel cumbersome, manually maintained (store managers phoned in results) Data discrepancies, low confidence in the numbers No standard set of performance measures, lack of detail for analysis Operators and managers spent a lot of time gathering data, less on running the business

After
Improved availability of data (from hours to 30 minutes) Standard set of measures Improved quality of service (order completeness improved, out the door time reduced 10%, higher customer satisfaction scores) Faster identification and reaction to theft issues

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Analytic Scalability Enterprise-wide

Sales & Marketing
Development & Delivery

Human Resources

Finance

Executive Management

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