Customer Spotlight: Hyperion Financial Planning at Colorcon

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David Graeber Director of Global Finance, Colorcon

Heather Tees Manager of Global FP&A, Colorcon

John Ronga Director of Client Services, KPI Partners

Larry Manekin Hyperion Architect, KPI Partners

December 11, 2014

Customer Spotlight:

Hyperion Financial Planning at Colorcon

Agenda

2

Industry: Pharmaceutical

Presence: Global

Projects:

Financial Planning

Workforce Planning

At A Glance

① About Colorcon

② Business Drivers

③ Obstacles

④ Success Criteria

⑤ The Solution

⑥ Results/Return on Investment

⑦ What To Do Differently

⑧ Q & A

Agenda

Customer Spotlight: Hyperion Financial Planning at Colorcon 3

About Colorcon

4

5

About ColorconWorld-Class Supplier of Pharmaceutical

Excipients and Services

Customer Spotlight: Hyperion Financial Planning at Colorcon

Business Drivers

6

Business Drivers


Shorten budget cycle & improve accuracy

Improve ability to plan resources and “see around corners”

Create efficiencies in making budget changes

Business Drivers


Improved ability to monitor performance against expectations

Improved ability to adjust spending based on budget vs. current expectations

Build a platform to accommodate periodic forecasts during fiscal year

Obstacles

9

Business Drivers


Approx. 3,000

person-days to

complete budget

Spreadsheets are labor

intensive, a source of manual

error and require many levels of

mechanical review.

Business Drivers


Timing of Budget

Processes

Begins in July & August

Leads to stale data

Business Drivers


Inability to make

changes and

reconsolidate results

in an efficient &

timely manner

No consistency with financial statement preparation across regions

Unable to recycle changes such as FX assumptions efficiently

Business Drivers


No ability to

perform scenario

analysis, which

would help drive

timely decision-

making

Business Drivers


Our Version of Hyperion

Planning Was Outdated

No update in 8+ years

Out-of-the-box solution

Lack of ownership

Lack of on-going development

A table-based repository of disparate

data

Business Drivers


Personnel Planning/Headcount Analysis

Was Cumbersome & Disconnected

Inconsistent methods across regions

Different ownership (i.e. Finance vs. HR)

Inconsistency around classification of headcount & workforce (e.g.

temp staff, contractors, etc.)

Business Drivers


Needed Structural

Changes To Align

With Current

Organization of Data

Account Structure

KPIs & Metrics

Entity Structure

Multi-Currency

Security

Business Drivers


Financial Reporting

Needed To Be

Enhanced To Facilitate

Reports &

Consolidations

Current financial reports were not

built in an optimized way

Not all regions took an initiative

in financial report development

Success Criteria

18

① Leverage and enhance the budgeting and forecasting

tools at our disposal

② Re-engineer certain processes (Sales, RMs, Workforce)

③ Enhance collaboration across organization Improve guidance & harmonize process

④ Develop consistent assumptions and calculations

⑤ Develop consistent driver-based planning features

Success Criteria


① Create format to accommodate efficient analysis (instead

of time spent on data manipulation)

② Enable an efficient statement and consolidation process

③ Workforce planning functionality for improved visibility of

headcount and related costs

④ Efficient currency conversion

⑤ Limit the use of Excel as an intermediary step

Success Criteria


21

Ultimately, rebuilding the Hyperion

structure would allow us to…

leverage the tool on the front end

eliminate some of the feeder

spreadsheet needs

better support process

enhancement going forward

Customer Spotlight: Hyperion Financial Planning at Colorcon

The Solution

22

The Solution


Why Hyperion? Colorcon already licenses the tool

We are an experienced Oracle shop

Why KPI? We have a technology roadmap, which includes

plans for evolving our BI Tools.

KPI brings a variety of skills to the table, in

addition to Hyperion Planning

The Solution


Current System Not

Structured The Way

We Look At And

Report Our Data

Accounts

Locations

Etc.

The Solution


Foreign Currency

Capabilities Did

Not Mirror How

Colorcon Has

Conducted

Business

The Solution


Workforce & Finance

In One Combined

Application

Organizational hierarchy was

built based on

roles/responsibilities vs.

locations.

Inflexible to changes in

personnel responsibilities.

Not intuitive for drill-down

analysis for financial reporting

27Customer Spotlight: Hyperion Financial Planning at Colorcon

PHASE I

Separate

Workforce into

Separate

Application

No previous Workforce

Application

Understand each

location’s budgeting

needs

External Factors taxes

benefits

Internal Factors merit increases

Incentive

headcount


PHASE I

Rebuild

Dimensions

Within

Finance

Application

Account Structure mirror Oracle structure

build hierarchy based on

financial statement roll-up

include account calculations

include sub-totals/totals

include KPIs

Organizational Structure mirror Oracle structure

build hierarchy based on global

consolidation

Currency Load data in all currencies

Accommodate multi-currency

Security Set at location/department level


PHASE I

Develop

Reports for

Global &

Regional Use


PHASE I

Implement

Smart View

Implement Smart View


PHASE I

Testing &

Training

The Solution


Accommodating 5

Different Regions

Each had their own unique

budgeting process.

Balancing current regional

budget processes with a future

streamlined global vision.

The Solution


Building Account

Dimension To Align

With Oracle Row Sets

Used in Oracle FSG

Which Support

Financial Reporting

One account can go into multiple

lines on the P&L depending on the

department/cost center (ex. salaries)

The Solution


Timing The

Completion Of Phase I

Phase I began at the end of 2014

budget cycle.

Phase I completed before the

start of the 2015 budget cycle.

The Solution


Education & Support

Learning an unfamiliar tool and

simultaneously being an “in-house

subject matter expert” to users

needing training.

Results/Return on

Investment

36

Results & ROI


Enabled A More

Efficient Financial

Statement And

Consolidation

Process

Time savings for all users

Limited the use of MS-Excel

Single source of truth

Consistent formulas and metric

definitions

Results & ROI


Better

Organization of

Data & Ability to

Perform Ad-Hoc

Analysis

More analysis for decision

making vs. time spend on

data manipulation.

Improved transparency.

Results & ROI


Ability To Process

Changes In A More

Timely Manner

Limited use of MS-Excel

Immediate currency conversion

and translation

Results & ROI


Workforce Planning

Functionality Allowed

Improved Visibility of

Headcount and

Workforce Costs.

What to Do Differently?

41

What To Do Differently?


Additional strategic consideration for system performance within the existing infrastructure.



Have an organized CRP (Conference Room Pilot) in advance of go-live.



System was built for data input at a department level. This is not efficient for certain data points.

Need different solutions for loading data to various departments at one time.



Figure out how to have alternative monthly phasing of P&L items.

There is always room for more planning.

Q & A

46

47

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2013 Oracle Specialized Partner of the Year

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Customer Spotlight: Hyperion Financial Planning at Colorcon