Extending Financial Reporting out of Oracle Financials Using Hyperion Essbase

George Cooper
Hackett Technology Solutions

Hackett Technology Solutions

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Hacketts Oracle Practice

Certified Oracle Implementation Partner since 1995 Completed over 350 Oracle and PeopleSoft implementations, upgrades and optimization projects Implementing Oracle Solutions based Highly skilled consultants on Hackett-Certified Practices Large-scale Oracle 15 implementation experience 35% + Average 7 years Oracle 10 35% 15 experience, 12 years business 5experience 25% 10 Average 12 years 78% are Hackett-Certified 5% experience Advisors Many of Oracles Leading Accounts Have Already Discovered the Benefits of the Answerthink / Hackett Group Approach
YEARS OF EXPERIEN CE

Hacketts Hyperion Analytics Practice

Strategic and technical implementation consulting #1 Hyperion Americas Reseller Award at Solutions 2006 and 2007 Member of Hyperion Partner Advisory Council; Customer Advisory Boards and participant in the Partner Development Exchange 400+ successful Hyperion projects, with well over 100 in 2006 and 50+ of those System 9 100+ resources dedicated exclusively to Hyperion Scores of Hyperion-certified consultants, plus Preferred Partner Certification

Hyperion Clients

Agenda
Hyperion Essbase Overview Essbase Technical Overview Typical Implementation Case Studies

Hyperion Essbase Overview

What is Essbase?
The leading enterprise multi-dimensional database engine Provides real-time analytic infrastructure for business intelligence and enterprise performance management (EPM) applications. Engineered for scalability, security, and rapid-response. Through an intuitive interface, business users can manipulate large data sets to model complex scenarios, forecast outcomes, and perform what-if analyses to identify trends and optimize business results.
Oracle Hyperion Essbase Datasheet

What is Multi-Dimensional?
Uses a cube metaphor to describe data storage. An Essbase database is considered a cube, with each cube axis representing a different dimension, or slice of the data (accounts, time, products, etc.) All possible data intersections are available to the user at a click of the mouse.

Multi-Dimensional vs. Relational

Multi-dimensional database are usually queried top-down the user starts at the top and drills into dimensions of interest.
Can perform poorly for transactional queries
Total Products

P01

P02

P03

Relational databases are usually queried bottom-up the user selects the desired low level data and aggregates.
Harder to visualize data; can perform poorly for high-level queries

P01

P02

P03

Total Products

Why Use Essbase?

Rich User Experience users converse with the data Business and Finance can manage their own metadata and reports Highly advanced calculation engine Easy integration of data sources, including manual input Large scalability Robust, cell-level security Many sophisticated reporting tools

Rich User Experience Sub-second response Intuitive interface, especially with Microsoft Excel Powerful adhoc analysis that allows users to query virtually any database intersection in seconds Visually understand the relationships in the data Easily built reports without IT involvement.

Rich User Experience

Excel Essbase Demo

Business Metadata Management Graphical administration console allows authorized administrators to see their data structures Simple specification of alternate rollups for specialized reporting Allows the application to evolve as quickly as the business

Business Metadata Management

Essbase Administrative Services (EAS) Demo

Powerful Calculation Engine

Over 350 built-in functions, including:
Financial functions, such as net present value, rate of return, and compound growth Custom multi-dimensional functions such as @ALLOCATE to drive data to multiple business intersections Complete time-series support Support for summary-level input

Both run-time and batch calculations MDX support

Integration of Data Sources Unique multi-user read/write technology Information from many data sources can be easily integrated into one database, and thus one set of user queries In particular, allows budgets and forecasts to be fully integrated with actuals

Technical Overview

Data Storage Multi-dimensional, with own proprietary storage Two primary data storages:
Block Storage Option (BSO) Record-based storage; supports write-back and features the batch calculation engine. Aggregate Storage Option (ASO) Cellbased storage; supports fast aggregation with a large number of dimensions.

Block Storage Aggregations

In general, all members combinations are calculated during an aggregation
Can be optimized for faster performance Allows complete control of calculations

ASO Storage Aggregations

Engine decides which level intersections should be calculated to minimized retrieval time
Specific aggregations can be specified to optimize particular queries

Smaller Agg. Size

Larger Agg. Size

Scalability
BSO databases generally are impractical with more than five or six hierarchical dimensions, depending on the number of members, depth of hierarchies and structure of the data ASO databases have no set limit on number of dimensions 20+ dimensions are possible Both storage types support:
Hundreds of thousands of outline members Attribute dimensions, which are based on a one-to-many relationship with the base members of another dimension No additional storage or calculation time is needed for Attribute dimensions in BSO Drill-through to relational detail

Partitions
Partitions are dimension slices that are shared between Essbase database
Replicated The data is physically transferred between the source and target cubes Transparent The data in the source cube is queried at retrieval time

Process is seamless to the user all data appears to be in the target cube ASO and BSO databases can be linked together with a transparent partitions

Typical Implementation

Partnership with Oracle GL

Users typically use Essbase for:
Historical and forecasted performance Budget variances Variance and profitability analysis Performance trends Profitability metrics and Foreign Exchange impact Generally any query using non-transactional data Viewing individual transactions Auditing GL entries External reporting Generally any query that needs transaction data

Users typically use Oracle Reports for:

Typical Support Model

IT supports core functionality:
Servers and software installation Daily extracts and loads from Oracle Financials and other data sources Core calculation scripts and database dimensionality Essbase automation

Central Administration supports:

Security Primary hierarchies and metrics

Line Finance or Business supports:

Most report development Alternate hierarchies for specialized reports Budget and forecast input and review

Basic Implementation
Hyp Planning Forms Excel Templates
Manual Forecast & Budget Input

Oracle Financials
Hierarchy Metadata

Other Data Sources

Actual Balances by Month / GL Segment

Text Files

Essbase

Essbas e Admin Service s

Finalized Budgets

Adhoc Excel Queries

Excel Reports

Dashboards & Production Reports

Oracle Upload

Implementation with Master Data Mgmt

Hyp Planning Forms Excel Templates
Manual Forecast & Budget Input

Oracle Financials

Other Data Sources

Actual Balances by Month / GL Segment

Text Files

Master Data Mgmt (MDM)

Essbase

Essbas e Admin Service s

Finalized Budgets

Adhoc Excel Queries

Excel Reports

Dashboards & Production Reports

Oracle Upload

Case Study #1 Budgeting and Forecasting for a Large Retail Company

Problem

Build a budgeting and forecasting model that can support the needs of the individual brands while minimizing both IT support and the technical expertise required by the Finance administrators

Challenges
Separate applications could provide the flexibility required by the individual brands but would increase development time and ongoing technical support Reporting requirements are significantly different in each brand A single application would reduce technical support but negatively impact planning flexibility and possibly reduce performance and reliability The primary business hierarchies must stay in sync with all brands Planning administration in each brand must require a minimum of training since turn-over is relatively high in the finance groups A combined corporate view of actuals, budgets and forecasts must be supported

Solution
Have separate physical Essbase databases for each brand while having a commonly maintained outline, calculation scripts, automation procedures and Excel utilities
Keeps each brands data physically separate to reduce performance risk while increasing security Central outline and core functionality reduces maintenance, increases reliability and minimizes training for each brand administrator Central maintenance of core hierarchies and metrics keeps one version of the truth

Include functionality in the database to allow any account to either have direct input or be calculated as a percentage of a selected driver (revenue, headcount, etc.)
Allows the brands to decide how each account is calculated

Solution (cont)
Task each brand administrator with building their own reports, input templates and alternate hierarchies
Gives each brand the flexibility to internally report their business in the manner their management desires to see it Brands can share reports and templates where appropriate

Build a central administration console to automate common administrative functions

Calculating input data, maintaining scenarios and controlling the budget process in a single, easy to use interface

Build a separate corporate database with a replicated partition to the individual brand databases
Supports a combined view of the corporation

Architecture
Oracle Financials
Hierarchy Metadata Actual Balances by Month / GL Segment

Central Essbas e Outline

Essbas e Admin Service s

Common Automation Outline and Data Updates

Replicated Partition

Brand A Essbas e Excel Templates

Brand B Essbas e

Brand C Essbas e

Corp Essbas e

Manual Forecast & Budget Input

Case Study #2 Budgeting and Forecasting for a Large Trade Show Management Company

Problem

Build a budgeting and forecasting model that can support very detailed forecasts and budgets while providing quick and transparent access to all data

Challenges

Large number of business dimensions potentially increase database size and calculation time Planners are spread over a wide geographic area with little technical expertise A very large number of individual projects need to be forecasted

Solution
Use Hyperion Planning as the overall planning engine
Web-based planning input Finance administrator can easily define forms Little training needed for budget / forecast input

Keep current data in the Planning BSO database but move actuals and historical plans into a separate ASO database
BSO database allows write-back for maintaining the current information ASO database allows fast loading and aggregation times for the much larger volume of historical and actual data

Optional: Link the two database via a transparent partition to give the users one view of the data

Architecture
Oracle Financials
Hierarchy Metadata

Actual Balances by Month / GL Segment

Hyperion Planning

Hyperion Planning Admin Console

Current Essbas e
Level0 Export

Hyperion Planning Web Forms

ASO History Essbas e

Excel Reports

Architecture (Alternative #1)

Oracle Financials
Hierarchy Metadata

Actual Balances by Month / GL Segment

Hyperion Planning

Hyperion Planning Admin Console

Level0 Export

BSO Input Essbas e

Hyperion Planning Web Forms

ASO Report Essbas e

Excel Reports

Architecture (Alternative #2)

Oracle Financials
Hierarchy Metadata

Actual Balances by Month / GL Segment

Hyperion Planning

Hyperion Planning Admin Console

ASO Actual / History Essbase

Transparent Partition

Planning Essbase

Hyperion Planning Web Forms

Excel Reports

Case Study #3 ERP Reporting at a Large Semiconductor Company

Problem

Build a suite of reports from various ERP modules during a new Oracle implementation under a very aggressive time frame

Challenges
Development time frame was short and business involvement constrained during the ERP implementation Users required the flexibility to design and build reports and dashboards over time but see the data immediately at go-live Some modules (such as quality assurance) had a large volume of data and a large number of dimensions Data had to be refreshed nightly

Solution
Build separate Essbase databases for each ERP module with the dimensionality and level of detail necessary to manage the business Task the business and finance staff to develop their reporting through Excel SmartView For each application combine a BSO Essbase database for core calculations and an ASO Essbase database for user reporting
Supports a large number of dimensions and extremely large data volumes

Develop formatted reports in Hyperion Financial Reports and Hyperion Web Analysis where appropriate Use Hyperion System9 Interactive Reporting for transaction-level reports

Architecture
Oracle ERP
Hierarchy Metadata

Text Extracts

Excel Reports

BSO Level 0 Essbas e Calculations

Level0 Export

ASO Report Essbas e

Dashboards & Production Reports

Contact Information

Michael Cook Director of Business Development Phone 415.435.0344 Mcook@thehackettgroup.com George Cooper Manager, BI Northern California Practice Phone 510.290.9538 gcooper@thehackettgroup.com