Presentation FDMFrom500SourceSystems

Ses Se s si sion on #2 #206 060 0

How Uni nited ted Techn chnolo ologies gies Linked Lin ked 500 00+ + Sou Sourc rce e Sys Systt em s to Hyperion Syst yste em 9 Financial Financ ial Manageme nagement nt using Hype yperion rion Sys ystem tem 9 Fin ina anc ncial ial Datt a Quali Da Qualitt y Management. Brady Laubscher 

Robert Cybulski

Syst ystem ems s Analyst United Technologies

President Finit Solutions Solutions

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Introduction

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Why Hyperion FDM at UTC?

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P re-I re-Im mplem plement entat ation ion P lannin lanning g

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Implementation Approach

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Benefits Realized and Lessons Learned

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 Ag  A g en end da 

Introduction

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Why Hyperion FDM at UTC?

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P re-I re-Im mplem plement entat ation ion P lannin lanning g

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Implementation Approach

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Benefits Realized and Lessons Learned

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UTC Pr o f i l e

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UTC Profile (cont.) 

CURRENT EMPLOYMENT — 214,500 employees (2006) – 66% of these are based outside the United States

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REVENUES — $47.8 billion (2006) – 60% is International Revenues

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INTERNATIONAL PRESENCE — Over 4,000 locations in approximately 62 countries; UTC does business in approximately 180 countries

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NET INCOME — $3.7 billion (2006)

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ASSETS — $47 billion (as of Dec 31, 2006)

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RESEARCH & DEVELOPMENT — $3.2 billion (2006)

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Finit Solutions Profile 

Hyperion Preferred Partner

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Focus on Hyperion FDM, HFM and Hyperion Enterprise

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Implemented Hyperion FDM (UpStream) to over 4 times as many clients as next closest firm. Focus on providing superior service and value to our clients by providing Hyperion expertise, strong Finance / Accounting knowledge and by being proactive.

Some of our clients include: United Technologies, Pfizer,  J ohnson Controls, Comcast, Chevron, Mittal Steel and Tyco

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Why Hyperion FDM at UTC?

Background on HFM Before HFM / FDM > 300 Enterprise installations

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Background on HFM HFM Applications and Design 

Approximately 3,200 HFM users globally.

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Each UTC Business Unit has its own HFM application. — Common HFM calendar. — Common Chart of Accounts with the Business Units using additional accounts that roll up into the Corporate Chart of Accounts.

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Each Business Unit submits data to the UTC Corporate HFM application.

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Challenges HFM Implementation Posed 

Increased Dimensionality in HFM — The demands of data submission would increase due to HFM having more dimensions and detail than Hyperion Enterprise.

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Consistency — One of the purposes in moving to HFM was to have a consistent consolidation and reporting process. It was not a best practice to keep all the data submission methods fragmented.

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Sarbanes Oxley and Audit — The financial data in all HFM applications would have to comply with Sarbanes Oxley and Audit requirements.

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Why UTC selected Hyperion FDM 

Data Quality & Automation —  The previous process needed stronger controls. UTC wanted to ensure the data in HFM accurately reflected its ledgers. — Pre-submission validation.

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Centralized Ownership versus Decentralized Ownership — Responsibility for submitting data needed to be in the hands of the site users who ran the ledgers – not controlled by IT.

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Ease of use and Uniformity across Business Units — Different sites used different processes, products and methods to submit results. UTC desired to create a consistent data submission process for all users.

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Scalability and Performance — With data submitters all over the world, and a large number of ledgers, UTC needed a tool that was scalable and could handle the demands of the data submission process during the closing calendar.

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Pre-Implementation Planning

Implementation Readiness 

Source System Inventory — With 500+ source systems, UTC developed an inventory of all source systems and reporting sites.

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Identify Source System Contacts — For each source system, an IT contact was identified to assist with extracting data. — For each reporting site, finance contacts were identified to assist with mapping and data submission and reconciliation.

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Categorization of Sites — With a tight implementation deadline and the large number of sites, UTC categorized each reporting site into a submission method code (‘A’, ‘B’, ‘C’). — This code system was also reviewed by audit for materiality.

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Data Submission Methods 

‘A’ sites — Larger ledgers with strong internal controls and IT personnel in place. — Use internal ledger tables, with IT support, to map from source codes to HFM members. — Extracted data is in HFM loadable file format. — Use a Hyperion FDM Excel template to load supplemental data.

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‘B’ sites — Source system to HFM mapping tables maintained in Hyperion FDM by a Finance owner. — Use Hyperion FDM Excel templates to load supplemental data and any required detail that is not available in their main ledgers.

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‘C’ sites — Smaller data loads, typically supplemental data, via Excel template.

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Project Planning 

Staffing — Blended teams were developed for each Business Unit. Each Business Unit team was comprised of a full-time dedicated data integration lead.

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Consulting — Finit Solutions assisted the Business Unit data integration leads with design, build, testing and data integration activities. As much as possible, the Business Units took the lead.

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Offshore Resources — UTC developed a Center of Excellence (COE), which included team members based offshore, for the HFM and Hyperion FDM implementations as well as for steady state support. — Due to the sheer volume of needed integrations, offshore team members were engaged to assist with data integration activities.

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Common Design Components — Hyperion FDM development was standardized as much as possible across Business Units. If a script / report was developed for one Business Unit, it was mostly used by the other Business Units.

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Implementation  Approach

Implementation Approach Overview 

Admin Training — All team members received detailed Hyperion FDM training.

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Design — All Business Units participated in initial meetings to determine key design components, including location definition, naming conventions, security level definition, etc.

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Application Build —  The Business Units took the lead in building application components such as locations and security.

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Customizations — UTC identified areas where customization would enhance the end user experience and data submission process.

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Data Integration — Different approaches were developed for each site type (‘A’, ‘B’, ‘C’).

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Data Integration – A sites 

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HFM formatted extract produced by a general ledger using its own internal mapping tables. Focused on verifying the extract was correctly mapped to HFM members.

 The core team processed the file and sent all errors/problems back to the site contact for correction.

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Once the file was loaded, the site contact was responsible for reconciling HFM to the general ledger.

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‘A’ site example

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Data Integration – ‘B’ sites 

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General ledger extract that requires mapping to HFM members. Excel Hyperion FDM templates used to enter in any required detail that is not available in the ledger (i.e. Fixed Asset roll-forward activity, Intercompany partners on Intercompany accounts, etc.) Focused on UpStream training for the site contact. General ledger extract requirements, mapping table instructions, and reconciliation guidelines distributed.

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Triangulation and ‘B’ Sites 

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 Triangulation is the exercise of systematically creating a GL to HFM mapping table using a GL to Hyperion Enterprise mapping and a Hyperion Enterprise to HFM Master mapping. If A=B and B=C then A=C.

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Data Integration – ‘C’ sites 

Manual Excel FDM templates.

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No site maintained mappings.

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Focused on — Verifying that the Excel FDM template was error free. — User training on the template and on the software.

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‘C’ site Hyperion FDM Template example

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Customization 

UTC used some of the following customizations to enhance the process for end users: — Dynamic Validation Entity Build — This enhancement would evaluate entities loaded by a location and then add them to the Validation Entity table to be calculated / consolidated inside HFM.

— Custom Merge Solution — For some sites, only loading data as Replace presented challenges in data being erased. Loading data as Merge did not pick up items that were reclassified. — A custom solution was developed to evaluate the previously loaded file and erase any that had been present in the original submission but had been reclassified to zero in subsequent submissions.

— Custom Reports — Custom reports were created for the triangulation process, and additional logging reports were created for internal audit.

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UTC Corp HFM

Summary

UTC Corp FDM

Otis HFM

Carrier HFM

Pratt & Whitney HFM

Fire & Security HFM

Hamilton HFM

Otis FDM

Carrier FDM

Pratt & Whitney FDM

Fire & Security FDM

Hamilton FDM

GL Extracts

FDM Templates

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FDM Templates

GL Extracts

GL Extracts

FDM Templates

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GL Extracts

FDM Templates

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GL Extracts

FDM Templates

GL Extracts

FDM Templates

Benefits Realized and Lessons Learned

Benefits Realized 

Scalability — Hyperion FDM has handled hundreds of different formatted GL extracts and provided a consistent method for the data submission of all financial data.

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Controls & Accuracy — Ensures all data is mapped and to valid HFM intersections before being loaded. — Generates a check report after load which provides timely feedback on whether key validations have been passed.

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Speed and Increased Detail — By removing manual processes, Hyperion FDM allows UTC to collect more detail in shorter time frames than could be possible via manual methods.

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Benefits Realized (cont.) 

Performance — Hyperion FDM performance and stability has been above expectations. Hyperion FDM has been extremely reliable.

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Audit Trail — The audit trail that Hyperion FDM provides allows end users to easily see the detail behind HFM values and allows UTC to remain Sarbanes-Oxley compliant.

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Ease of Use – Everyone loves the Fish! — End users are very comfortable navigating around Hyperion FDM and going through the process to submit their data. The ease of use has allowed UTC to push the responsibility of  submitting and signing off on the financial results down to the local controllers and site users.

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Lessons Learned 

Data Integration will take longer then expected. — It is extremely difficult to predict how long it will take a user to correct a mapping or reconciliation issue. End users need to be given clear instructions and guidance on what is required of them to get them set up and ready to use Hyperion FDM (i.e. GL extract requirements, mapping instruction, etc.)

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HFM Intersections will need to be a key training point. — Many end users struggled with mapping their data to multiple dimensions and with understanding the intersections in HFM that their GL data needed to map to.

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Strong tracking is crucial. — With a large number of sites to integrate, it is important to keep track of where everyone is at in the data integration process to know who needs extra help to meet their deadlines.

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Lessons Learned (cont.) 

HFM Metadata needs to be complete before starting triangulation or mapping. — One BU needed to re-triangulate 6 times. Rework may be caused if HFM metadata changes are made during the data integration process.

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Migrating specific application components is difficult between environments. — There is no good way to migrate some application items, such as a single Import format or check report, between environments.

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