Oracle HPCM Customer Story

Fully Allocated P&Ls at MasterCard Worldwide

Jonah Rufus William
Business Leader GBSC Systems
September, 2016
Presenter Bio
17 Years in EPM & BI Space
Consulting
Managing Financials Systems
Industry Experience
Technology
Retail
Finance
Education
Govt.
Implemented EPM/BI at
Mastercard
DoE Mass
Business Leader | GBSC Systems SGI
Strategize, Implement and Sustain Staples
Hyperion and BI Platforms AAFES
Activision
Education Hindustan Lever etc.
Worked at:
Engineer Electrical & Electronics IBM Cognos as EPM Architect
MBA Systems and Marketing
Oracle Partner as Sr. Principal Consultant
Mastercard since 2006

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Mastercard Customer Story Agenda

1. Hyperion @ Mastercard
2. Business Background & Challenges
3. Solution Overview
4. Business Benefits & Lessons Learned
5. Future Plans

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 Hyperion @ Mastercard
Keep things simple and stretch the boundaries, go beyond the general use of Hyperion / BI.
Implementation Stabilization Expansion Renovation Stabilization | Expansion

2010 2011 2012 2013 2014 2015 2016

Allocated P&L
Revenue StratPlan
Local Hyperion
Entity Performance Currency D&A A&M Op
FX Payroll Upgrade
Mapping Tuning Product Exposure Plan - BI
FTE
P&L
Expense SPA - II Fin - BI
Local M&A Expense
Work Force Currency Mgmt. BI
Commitment Local Actual
Driver
Cur.
Mgmt. Reporting Budget Cash Neutral
Lights Out Customer Revenue
Breakout Attribute Flow Rev. Rec.
Automation P&L

Application Automation / Enhancement / Project BI

1 Monthly Close 8 Workforce Planning

20 Hyperion Applications
Hyperion Stats

2 Strategic Planning 9 Monthly Customer P&L (COS)

30 % 2015 Growth In Foot Print 3 Annual Budget 10 Quarterly Product P&L (PPL)
40 % 2014 Growth in Foot Print
4 Quarterly Forecast 11 Local Currency Exposure
Process Supported Globally
14 5 Monthly Payroll Process 12 Commitment Collection Process
across 12 business units
6 M&A Reporting 13 Managerial P & L
600 World Wide Users
7 Cash Flow 14 BI Updates

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MasterCard Challenge

1. Fully Loaded Country P&L

2. Transparent Rules
3. Sound and Simple Methodology
4. Faster System
5. Fit within Hyperion Framework

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MasterCard Strategy
1. Prototype in MS Access & Excel
2. Obtain buy in from impacted business
owners
3. Assess solution fit with in Oracle Platform
4. Develop Functional Pilot in Requirements &
Design
5. Implement & Rollout
6. Build Future Roadmap

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MasterCard Solution Overview
Guiding Principle: Tiered approach to attribute Revenue & Margin between Direct/Dedicated and Indirect/Overhead.

1. Drivers Revenue Based or Metrics Based

2. Actual from Oracle General Ledger
3. M1: Revenues & Directly associated expenses no allocation
4. M2: Dedicated expense mapped to country
5. M3: Support expense allocated to country
6. M4: Overhead expenses allocated to country
7. Actual from Oracle GL gets allocated using the guiding principle
8. Simple rule to produce Tiered P&Ls applied after allocation
9. Validation reports are run to ensure data accuracy
10. Results published via Prebuilt FR or SmartView

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 Fully Allocated P&L
Variance
Explanation

Margin 1

Margin 2

Margin 3

Margin 4

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HPCM Model Architecture Stage Design
Stage 1 Financial Detail

1. HPCM allocates Costs & Revenue Pools Account* Cost Ctr Data Type
through one or more stages in a top down
capacity Sum Account/CC to Cost Pool (Direct)
Stage 2 Fin. Pool

2. Stage Step in the allocation process Division* Geo Cost Pool

that has similar pool characteristics
Tier 1 (Div) Allocs or Pass Thru (Direct)
Stage 3 Tier 1
3. Separate stages enable traceability.
Division* Geo

Tier 2 (Geo) Allocs or Pass Thru (Direct)

Stage 4 Tier 2
1-3-4 Genealogy

Division Geo*

1-3-4 Genealogy Allocation Results

Cost Ctr Account Data Type Division Geo Cost Pool Division Geo

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MasterCard Solution Highlights

1. Planning App to stage, validate inputs and

consume
2. Relational model to contract and expand
data grain
3. Front end to assign rules
4. Prebuilt Tiered report
5. Trace Screens

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MasterCard Lessons Learned

1. Trace Screens work at allocation grain

2. Need a reporting solution to make end user
consumption easy
3. HPCM is a maturing product
4. Success or Failure depends on the
partners experience project completed on
time and on budget

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MasterCard HPCM Future Plans

1. Explore use of Management Ledger

Movement of historical management restatements from the general ledger
Would require upgrade to 11.1.2.4

2. Product & Customer Profitability migration

to HPCM
3. Delivery of Dashboards to Business Users
using OBIEE

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