L01 Intro to HFM

L E S S O N

1

Introduction to Financial Management

Objectives At the end of this lesson, you should be able to: • Describe Oracle’s Enterprise Performance Management System • Enumerate the main features of Financial Management • Discuss Financial Management architecture • Describe Foundation Services • Identify additional EPM System products



1

Lesson 1 Introduction to Financial Management

Oracle’s Enterprise Performance Management System Information Delivery

EPM and BI Applica tions

BI Founda tion

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Oracle’s Enterprise Performance Management System Oracle’s Enterprise Performance Management System (EPM System) is a complete, open, and integrated system that supports a broad range of analytic requirements. It includes three layers of capabilities—information delivery, EPM and business intelligence (BI) applications, and a common BI foundation.

Information Delivery Layer This layer provides a complete set of information delivery and access capabilities, which are designed to address the needs of different types of users in an organization. These capabilities include interactive dashboards for executives and managers, ad hoc analysis tools for power users, Microsoft Office interfaces for finance users, and pixel-perfect reports and mobile support for casual users.

1-2

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management

EPM and BI Applications Layer This layer includes an integrated suite of market-leading performance management applications that are based on the Hyperion product suite. The applications address key strategic and financial performance management processes, including strategy management, planning and forecasting, financial close and reporting, and profitability management. This layer also includes integrated BI applications that can help users analyze data from enterprise resource planning (ERP) and customer relationship management (CRM) applications, as well as support industry-specific requirements. Applications include: • Oracle® Hyperion Financial Management, Fusion Edition • Oracle® Hyperion Performance Scorecard, Fusion Edition • Oracle® Hyperion Strategic Finance, Fusion Edition • Oracle® Hyperion Planning, Fusion Edition • Oracle® Hyperion Capital Asset Planning, Fusion Edition • Oracle® Hyperion Workforce Planning, Fusion Edition • Oracle® Hyperion Profitability and Cost Management, Fusion Edition • Oracle® Hyperion Public Sector Planning and Budgeting, Fusion Edition • Oracle® Hyperion Financial Data Quality Management, Fusion Edition (FDM) • Oracle® Hyperion Financial Data Quality Management ERP Integration Adapter for Oracle Applications, Fusion Edition (ERP Integrator) • Oracle® Hyperion Financial Data Quality Management Adapter for Planning, Fusion Edition (FDM Adapter for Planning) • Oracle® Data Integrator Adapter for Planning • Hyperion® Data Integration Management Adapter for Planning (DIM Adapter for Planning) • Oracle® Integrated Operational Planning, Fusion Edition • Oracle® Integrated Margin Planning, Fusion Edition • Oracle® Crystal Ball, Fusion Edition BI applications include: • Oracle® Financial Analytics

Financial Management 11.1.2: Installation and Configuration

1-3

Lesson 1 Introduction to Financial Management • Oracle® HR Analytics • Oracle® Order Management and Fulfillment Analytics • Oracle® Supply Chain Analytics • Oracle® Sales Analytics • Oracle® Service Analytics • Oracle® Contact Center Analytics • Oracle® Marketing Analytics • Oracle® Usage Accelerator Analytics for CRM

BI Foundation The EPM and BI applications are integrated on a BI foundation that includes the following: • Common enterprise information model • Powerful, forward-looking analytics with Oracle© Essbase • Ability to integrate data from Oracle and non–Oracle databases and transactional systems • Enterprise dimension management application, which provides a single point of management for dimensions and hierarchies across EPM, BI, data warehouse, and other applications • Predictive analytics engine, which integrates BI with business processes The BI foundation also leverages key technologies from Oracle Fusion Middleware, such as data integration, identity management, and process management. BI Foundation includes: • Oracle® Enterprise Performance Management Workspace, Fusion Edition (Workspace) • Hyperion® Shared Services • Oracle® Hyperion Enterprise Performance Management System Lifecycle Management (Lifecycle Management)

1-4

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management

Financial Management Overview Financial Management has the following benefits: • Reduce consolidation and reporting cycles by days or weeks. • Consolidate data with multiple consolidation paths. • Conduct in-depth analysis of key performance and operational metrics. • Deliver accurate and timely reports to both internal management and external regulatory bodies. • Discover sources of profitability and cash flow at the company, product, brand, and customer levels.

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Financial Management Overview Financial Management has the following benefits: • Reduce consolidation and reporting cycles by days or weeks. • Consolidate data with multiple consolidation paths. • Conduct in-depth analysis of key performance and operational metrics. • Deliver accurate and timely reports to both internal management and external regulatory bodies. • Discover sources of profitability and cash flow at the company, product, brand, and customer levels.

Financial Management 11.1.2: Installation and Configuration

1-5

Lesson 1 Introduction to Financial Management

Financial Consolidation, Reporting, and Analysis Local

M onthly and Quarterly A ctual Results

Regional

Input or Load Submit Validate A pprov e

SAP O racle JDE

Finance Dept.  Review  Appr ove  Adjust  Consolidate

Central

Submit

A pprov e Reject

E RP/GL M onthly Forecas t

A nnual Budget

Input or Load Submit Validate

Input or Load Submit Validate

Publish reports Group Finance  Review  Approv e  Adjust  Cons olidate  IC match  Trans late

• SEC • Tax • Legal • Tr easur y • Management

Approve Reject

Appr ove Reject

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Financial Consolidation, Reporting, and Analysis Financial Management enables highly efficient collection and consolidation of data from diverse sources. It includes the following features: • Process management for tight control of the review and approval process • Data validation • Currency translation to support multiple local currencies • Automatic eliminations for intercompany transactions Financial Management is designed for large-scale, centralized Web deployment. You can use Financial Management to consolidate data from diverse general ledger systems and locations around the globe.

1-6

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management

Financial Management Architecture Client

Administrator client

W orkspace

Smart View client

Web Server

Java Application Server

Services

Server

Data

RD BMS

Essbase cube

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Financial Management Architecture Financial Management uses a multitier architecture that includes a client tier, a server tier, and a data tier.

Client Tier The client tier contains the user interface. It communicates with the server tier. The primary function of the client tier is to display, enter, and maintain data and to maintain metadata.

Server Tier The server tier consists primarily of Web servers, Java application servers, and services.

Financial Management 11.1.2: Installation and Configuration

1-7

Lesson 1 Introduction to Financial Management The Web server enables you to access the Web-based portions of Financial Management. The application server contains the financial intelligence and connections to the relational database and OLAP engine. It also contains Performance Management Architect for managing metadata.

Data Tier The data tier contains the relational databases for Financial Management metadata and source data, and Essbase cubes for extended analytics.

1-8

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management

Foundation Services Overview

Shared Services

Performance Managemen t Architect

Oracle HTTP

Oracle Weblogic

Server

Server

W orkspace

Calculation Manager

Smart View

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Foundation Services Overview Foundation Services is a modular suite of integrated applications that support a common workspace and common security and metadata management. The suite enables a single point of maintenance for efficient management and ownership of services. The suite also provides a consistent source of information and change control across the enterprise through centralized application and application group management, user and group provisioning, and data integration tools.

Shared Services Shared Services integrates Hyperion products to provide user provisioning, life cycle management, and task flow management. It also provides the Shared Services Registry, a central repository that simplifies product configuration by storing and reusing information for most installed Hyperion products.

Financial Management 11.1.2: Installation and Configuration

1-9

Lesson 1 Introduction to Financial Management

Oracle HTTP Server Oracle HTTP Server is the Web server component for Oracle Fusion Middleware. It provides a HTTP listener for Oracle WebLogic Server and the framework for hosting static pages, dynamic pages, and applications over the Web. Key aspects of Oracle HTTP Server are its technology, its serving of both static and dynamic content, and its integration with both Oracle and non-Oracle products. EPM System Installer installs Oracle HTTP Server during the installation of Foundation Services, using the Oracle HTTP Server silent installer. You must install Oracle HTTP Server even if you do not plan to use it as your Web server, because EPM System Configurator activates the Web server configuration task with the Oracle HTTP Server installation. During Web server configuration with EPM System Configurator, you can specify the Web server to use.

Oracle Weblogic Server Oracle WebLogic Server 11g updates the world's best application server for building and deploying enterprise Java EE applications with support for new features for lowering cost of operations, improving performance, and supporting the Oracle Applications portfolio. WebLogic Server Java EE applications are based on standardized, modular components; WebLogic Server provides a complete set of services for those modules and handles many details of application behavior automatically, without requiring programming. Typically, EPM System Installer installs WebLogic Server for you. If you have an existing WebLogic Server installation and want to use it instead of the WebLogic Server installed by EPM System Installer, note the Middleware home location for the WebLogic Server installation. During installation, you must install EPM System products to this same Middleware home. If EPM System Installer detects an existing WebLogic Server installation in the installation location, it does not install WebLogic Server.

Performance Management Architect Performance Management Architect is a feature set in Financial Management that enables you to manage, create, and deploy Oracle Hyperion applications within one interface. Using the Data Synchronization feature in Performance Management Architect, you can create data movement synchronizations between Hyperion applications, create data mappings for reuse, and create flat file and staging area mappings to import data into Hyperion applications.

1-10

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management

Workspace Workspace is the Web-based common user interface for Hyperion products. It enables users to work with Hyperion-authored content that is created with Reporting and Analysis and with third-party documents such as Microsoft Word and Excel files. You access Financial Management through Workspace. Workspace has the following key features: • Dynamic HTML (DHTML), zero footprint client • File system paradigm to access content • Interface for common Reporting and Analysis administration task • Access point for Performance Scorecard • Support for Reporting and Analysis authoring studios and third-party documents

Smart View You can use Oracle® Hyperion Smart View for Office, Fusion Edition to enter and analyze data in Microsoft Office. Smart View provides integration with Microsoft Office, not only for Financial Management but also for Planning, Essbase, Web Analysis, Financial Reporting, Interactive Reporting, and SQR Production Reporting. Tasks that previously were repeated across products are now performed only once. Tight integration with Smart View enables you to perform the following tasks: • Import content into Microsoft Excel, Word, PowerPoint, and Outlook • Use Office smart tags to add single data values and import reports • Distribute and share Office documents by logging on only once to the data source • Expose functions for Financial Management and Essbase Analytics content in Word, PowerPoint, and Outlook

Calculation Manager Calculation Manager is a module of Performance Management Architect that enables you to create, validate, and launch complex calculations that you can use in your Financial Management application. It provides a graphical interface for ease of use.

Financial Management 11.1.2: Installation and Configuration

1-11

Lesson 1 Introduction to Financial Management

Reporting and Analysis Framework Overview

Financial Reporting

Web Analysis

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Reporting and Analysis Framework Overview Financial Management leverages Foundation Services and Reporting and Analysis modules to integrate data from multiple sources, and to provide dashboards, reporting, and analysis. You access Reporting and Analysis through Web clients and Windows clients. Web clients are built on J2EE technology and consist of the following Web applications: • Workspace Web application—This application is the container for Web applications. • Shared Services Web application—This application is a foundation for Hyperion products. You can access Shared Services through its own Web interface.

1-12

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management Windows clients consist of the following applications: • Authoring studios—Each reporting tool provides a Windows application for developing specialized reports. • Essbase Administration Services Console—Essbase provides management and data analysis engines for its multidimensional database. You can access Essbase through Administration Services and the Administration Services Console. The following table lists Reporting and Analysis modules and their features: Module

Features

Oracle® Hyperion Financial Reporting, Fusion Edition

Specialized financial reporting module with predefined formatting and built-in financial intelligence that enables users to quickly assemble and publish report books for management control and regulatory fillings

Hyperion® Web Analysis

Front-end analysis tool that enables users to explore business data for growth and profit opportunities, uncover emerging problems, and test solutions before using them

Oracle® Essbase

Multidimensional database that extends the analytical capabilities of Financial Management by providing more detail, more dimensions, and sophisticated allocation routines

Hyperion® Interactive Reporting

Query and reporting tool with Web-enabled dashboard interface and ability to secure content based on different users

Hyperion® SQR® Production Reporting

Reporting tool that generates and manages large-volume reports, and allows users to distribute reports to diverse audiences over the Web

In this class, you install Financial Reporting and Web Analysis.

Financial Reporting Hyperion products support multiple types of reporting and analysis through a personalized, intuitive, and interactive thin-client workspace. With Financial Reporting, you can graphically design and present analytic data. You can design traditional financial report formats, such as cash management reports, profit and loss statements, and balance sheets. You can also design nontraditional formats for financial or analytic data that includes text and graphics. The following are the key features of Financial Reporting: • Flexible range of output options • Scalable, cross-platform, server-based report generation

Financial Management 11.1.2: Installation and Configuration

1-13

Lesson 1 Introduction to Financial Management • Graphical, object-based report creation with simultaneous access to multiple Hyperion data sources • Objects that are reusable across multiple reports • Book creation for similar reports • Dynamic scheduling that enables automated reporting

Web Analysis Web Analysis provides a Web interface for advanced report design. The interface offers drag-and-drop tools to create personalized reports for a broad range of analytic applications, such as sales analysis, product profitability, key performance management, and dashboards. Web Analysis interacts with data stores from Essbase, Financial Management, Planning, and relational databases.

1-14

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management

Related Oracle Hyperion Products

Financial C lose M anagement

Financial Data Quality M anagement

Oracle Essbase Analytics Link for H yperion Financial Management

Disclosure Management ERP Integrator

Copyright © 2011, Oracle and/or it s af filiates. All rights reserved.

Related Oracle Hyperion Products You can use the following Oracle Hyperion products to enhance and extend the functionality of Financial Management.

Financial Close Management Oracle® Hyperion Financial Close Management helps companies define, execute, and report on the interdependent activities of a financial close period. It provides centralized monitoring of all close process tasks, and provides a visible, automated, repeated system of records for running close processes. Financial Close Management provides the following functionality: • Defines the close tasks and schedule to ensure the correct flow of closing tasks • Automates the management of the close to track the status of closing tasks, • Provides notifications and alerts

Financial Management 11.1.2: Installation and Configuration

1-15

Lesson 1 Introduction to Financial Management • Integrates with product tasks • Provides end-user notifications • Monitors the overall close process from a central dashboard • Analyzes the effectiveness of the close

Disclosure Management Oracle® Hyperion Disclosure Management enables customers to assemble a reporting package for submission to a regulatory agency (for example, 10K or 10Q submitted to the SEC). The package includes financial statements, supporting schedules, and commentary in Excel, Word, or Financial Reporting documents. Each component of the reporting package can have different owners and groups of reviewers. Customers can distribute components to different users to complete, review, and approve, and then assemble the components into standardized outputs for submission to the regulatory agency.

Oracle Essbase Analytics Link for Hyperion Financial Management Oracle® Essbase Analytics Link for Hyperion Financial Management (EAL) provides financial reporting acceleration solutions. It provides in-depth trending, complex calculations, analysis, and audit traceability to quickly aggregate data, resulting in a faster financial close. EAL provides the following benefits: • Delivers consistent high-performance query response against large data sets • Provides secure access of financial data to users, with minimized downtime • Supports complex calculations to analyze financial data

Financial Data Quality Management Oracle® Hyperion Financial Data Quality Management, Fusion Edition (FDM) is a data transformation tool that feeds source-level financial data to consolidation, reporting, planning, and analytical applications. FDM provides an audit trail to the source financial data, helping to ensure data integrity and mapping consistency that allows for easy reconciliation of financial data. By providing an audit trail to the source financial data, FDM saves end users, administrators, and auditors time associated with investigation, identification, and correction of data errors.

1-16

Financial Management 11.1.2: Installation and Configuration

Lesson 1 Introduction to Financial Management FDM requires minimal IT involvement and offers a consistent, user-friendly environment that provides a uniform data collection process for all reporting units within the organization. It also contains financial-controls functionality to assist corporations with their internal financial-controls process. FDM contains prebuilt integration adaptors for Hyperion Enterprise, Financial Management, Essbase, and Planning; it can also be used to load data into any financial consolidation or analytical application.

ERP Integrator Oracle® Hyperion Financial Data Quality Management ERP Integration Adapter for Oracle Applications, Fusion Edition (ERP Integrator) is a module of FDM that enables you to: • Integrate metadata and data from an Enterprise Resource Planning (ERP) source system into an Enterprise Performance Management (EPM) target application • Drill through from the EPM target application and view data in the ERP source system

Financial Management 11.1.2: Installation and Configuration

1-17

Lesson 1 Introduction to Financial Management

Summary In this lesson, you should have learned to: • Describe Oracle’s Enterprise Performance Management System • Enumerate the main features of Financial Management • Discuss Financial Management architecture • Describe Foundation Services • Identify additional EPM System products

1-18

Financial Management 11.1.2: Installation and Configuration