Mgmt Reporting With Oracle Essbase

8/22/2019 Mgmt Reporting With Oracle Essbase

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Management Reporting with

Oracle Essbase

Yang Yang

Business Intelligence Sales Consultant


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Copyright 2009, Oracle and / or its affiliates. All rights reserved. 2

Agenda

Management Report challenges

Value of Essbase

Demonstration

Q&A


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Different Questions Used for Measuring and

Improving Performance

Ad-Hoc Query& Analysis

StandardizedReporting

FuturePast

Forward-looking

Questions

Historical

Questions

Situational

Questions

Modeling andForecasting

Present


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The Challenges to Answering Forward

Looking Questions

Time-consuming Management reportingand Variance analysis

Users living in spreadsheet hell

Inability to build new scenarios3

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Looking Questions




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Management Reporting is Part of a Broader

Analytical Ecosystem

ManagementReporting

OperationalAnalytics

FinancialReporting


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Management Reporting is a Process

CXOs and Managers Knowledge workers Analysts

Helps understand

Risks and future implications Of business alternatives and decisions

Many iterations New data created Forward looking Variance & what-if

analyses

Multiple data sources Financial KPIs andOperational KPIs

Frequent updates

Budgets -Financial &Operational

Forecasts -Financial &Operational

Operational Data - Actuals



Why are Cubes Important?OLAP Data Powers Management Reporting

Highly Efficient Data Storage

Very Fast Data Access andRetrieval

Data Organized in

Dimensional Model, Easy forEnd-users to Understand

Creates new Information viaWrite-back to Power What-ifScenarios

Powerful DimensionalCalculation Engine



Forward-looking Analytic EngineFast 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 andCalculations

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, anydimension, for any type of calendar


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Forecasting

Scenario comparison

Trending

Goal seeking Procedural calculations

Custom Calculations

What if testing

Essbase is a Powerful CalculatorHundreds of Built-in Functions and Algorithms


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Intelligent Metrics Deliver InsightTime 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

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

Last value Sum

Oct Nov Dec Q4 Oct Nov Dec Q4

Sales 80 87 87 87 1,200$ 1,100$ 1,500$ 3,800$

Marketing 42 40 41 41 800$ 870$ 940$ 2,610$

Consulting 39 46 46 46 450$ 480$ 510$ 1,440$

Tot. Field Teams 161 173 174 174 2,450$ 2,450$ 2,950$ 7,850$

Headcount Expenses


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Financial IntelligenceFast and Simple with Essbase

Critical for VarianceAnalysis

Essbase understandsFinancial Data andCalculations

Beyond simple aggregation

Time Balances

Sophisticated Functions

Currency Calculations


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Time IntelligenceFast 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 periodcomparisons


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Dynamic Time Analysis

Any Type of Time Analysis One Outline


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Looking Questions




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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

Spreadsheets are inefficientfor more than two dimensions

Data (Measures) for eachcombination of Row byColumn

E.g., Sales for Qtr1 = 95,820

Measures

Time


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But Business is More than Two Dimensions

We typically look at more thantwo dimensions (multi-dimensional)

So what do we do?

Add more column headers!

In our example:

Total Market BY TotalProduct, Actual Sales for Qtr1= 95,820

Creates HEADACHES!

Measures

Time

Scenario

MarketProduct


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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

Use the same familiar tools, Excel, Word, PowerPoint

Achieve Speed of Thought response time

Benefit from a centralized enterprise-scale solution

Oracle Essbase


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Looking Questions




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Volatility Demands Rapid Scenario ModelingCommodity Prices, Energy Prices, Interest Rates


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But Models are Constantly EvolvingDynamic, Iterative Processes Drive New Questions

McDonalds: application that collects POS data every15 minutes to monitor & model customer service levels

Alcoa: marketing application called SMART (StrategicMarketing Analysis and Reporting Tool) for tracking and

modeling product profitability across 29 dimensions

Southwest Airlines: application for modelingfuel costs and demand (98% forecast accuracyafter the 9/11 crisis)


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Hundreds of Spreadsheet Models

Throughout the Organization

ExecutiveManagement

Finance HROperations /Manufacturing

Sales &Marketing

Workforceplanning

Impact analysis Benefits models

Customer & StoreProfitability

Demand Planning Merchandise

Planning

Customer Sat

Parts Management

Supply chain cost

optimization Resource

Management

Warehouseprofitability

Variance analysis

Project / initiative

funding models Valuation

Risk Management

How manydoes your

organizationhave?


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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 ittree structure Centralized

Functions, calculations, aggregations

Oracle Essbase


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Centralized Complex CalculationsEasy to Define, Validate and Maintain for All Users


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Oracle EssbaseForward-looking Analytics

Pain

Time-consuming Managementreporting & Variance analysis


Unable to build new scenarios

Unique Value

Financial & Time Intelligence

Centralized multi-user writeback modeling environment

Centralized complex

calculations


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Providing Enterprise-class OLAPMost 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

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CompetingVendor

Essbase

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CompetingVendor

Essbase CompetingVendor

Essbase

Load & CalculationIdentical Hardware(Minutes)

Query Response50 Concurrent Users(Seconds)

CPU Utilization50 Concurrent Users(%)

0.010

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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 apowerfu l OLAP systemonethat was highly d imensional and

detailedthat cou ld provide

speed of tho ught respon se fortens o f thous ands of u sers. We

selected Hyper ion because it

met ou r scalabi l ity and

performance requirements.


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Better Information, Better Decision-makingComprehensive Intelligence Across Operations

Before

Existing system incapable of scalingfrom 1000 to 1500 users

Complex environment - only 40% ofusers were accessing existingsystem

Spreadsheet based with no

standardization of business rules Cumbersome to integrate

information across businessfunctions.

Walmart Stores, Inc., is one of the preeminent retailers

worldwide with more than 7000 stores operating in 14countries. Serving more than 176 million customersper week.

After

Scalable, easy to use, collaborativemerchandise planning application

Winner of the Walmart TeamInnovation award

Expanding to include integratedanalytics across major operations,

including logistics, transportation,category management, finance, humanresources, real estate and operations

Repeatable solution rolled out atWalmart International


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Oracles Integrated Analytic Solution


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Demonstration


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Essbase Demonstration

Powerful Querying

Comprehensive Calculation

Writeback and What-if Analysis3

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Appendix


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Essbase & Oracle OLAPComplementary, Strategic, Better Together

Oracle Essbase Oracle Database OLAPOption

Purpose

BI & analytic applications builtand maintained by businessanalysts.

Accelerate query performancein an Oracle DW

Buyer Line of Business (LoB). IT

Typical End Users

Line of Business users whoquery and create data withinEssbase tools and OLAPapplications.

Users of SQL-based businessintelligence tools who querydata in the database.

Data Management

Strategy

Easily combine data from a

wide variety of data sources.

Optimized for data in the

Oracle database.

ArchitectureOLAP in a server, part ofFusion Middleware

OLAP in the Oracle Database


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Powerful Product Volume ForecastingForecast Speed and Accuracy for 30,000 Products

Before

Unable to analyze at productvolume forecast details

Only working with summarized data

Cumbersome to create forecasts forunderstanding product volumes

One month to create forecast baseduser input

Difficult to merge internal invoiceand master data with third-partysyndicated data and user input

Worlds 6th largest food company, $15.9 billion in FY09net sales. Brands marketed in more than 100countries, more than 30,000 employees.

After

Product-level forecasting leveraging 4years of weekly volume data for 30,000base products for 5 versions for each ofthe 15 forecast scenarios.

Iterative what if process quicklyrestates all products for an entire

divisions forecast. Delivers forecast results at the speed

of thought for top-down, bottoms-upand middle-out methods.


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Better Information, Better Decision-makingComprehensive Intelligence Across Operations

Before

Existing system incapable of scalingfrom 1000 to 1500 users

Complex environment - only 40% ofusers were accessing existingsystem

Spreadsheet based with no

standardization of business rules Cumbersome to integrate

information across businessfunctions.

Walmart Stores, Inc., is one of the preeminent retailers

worldwide with more than 7000 stores operating in 14countries. Serving more than 176 million customersper week.

After

Scalable, easy to use, collaborativemerchandise planning application

Winner of the Walmart TeamInnovation award

Expanding to include integratedanalytics across major operations,

including logistics, transportation,category management, finance, humanresources, real estate and operations

Repeatable solution rolled out atWalmart International


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No More Spreadsheet HellImproved Performance Visibility and Service Quality

Before

Excel cumbersome, manuallymaintained (store managers phonedin results)

Data discrepancies, low confidencein the numbers

No standard set of performance

measures, lack of detail for analysis

Operators and managers spent a lotof time gathering data, less onrunning the business

Third largest pizza chain in the US

3000 locations worldwide

More than $1 billion in sales

After

Improved availability of data (fromhours to 30 minutes)

Standard set of measures

Improved quality of service (ordercompleteness improved, out thedoor time reduced 10%, higher

customer satisfaction scores)

Faster identification and reaction totheft issues


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Analytic Scalability Enterprise-wide

Human

Resources Finance

Executive

Management

Development

& Delivery

Sales &

Marketing
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Mgmt Reporting With Oracle Essbase