M&A Information Factory: Integrating 80 Sources in 100 Days with Oracle DRM & FDMEE
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The document discusses Edgewater Ranzal, an Oracle consulting partner focused on Oracle Business Analytics solutions. It summarizes their services including enterprise planning, business intelligence, data integration, and infrastructure services. It then discusses WestRock, a packaging company formed from a merger, and their need to integrate 80 financial data sources within 100 days. The solution involved using Oracle Data Relationship Management (DRM) and Financial Data Management Enterprise Edition (FDMEE) to map the sources and load them into Oracle's JD Edwards and Hyperion systems.
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M&A Information Factory: Integrating 80 Sources in 100 Days with Oracle DRM & FDMEE
- 2. Celebrating twenty years of Integrated Business Analytics Solutions ENTERPRISE PERFORMANCE MANAGEMENT | BUSINESS INTELLIGENCE | BIG DATA The M&A Information Factory Integrating 80 Sources in 100 Days with Oracle DRM & FDMEE Tim Walsh – Director of Financial Systems, WestRock Mike Killeen – Sr. VP Technology & Strategy, Edgewater Ranzal ENTERPRISE PERFORMANCE MANAGEMENT | BUSINESS INTELLIGENCE | BIG DATA
- 3. Introduction to Edgewater Ranzal Oracle Platinum Consulting Partner - 100% Focus on Oracle Business Analytics (EPM/BI/Big Data) 200+ Full time EPM/BI/Big Data Billable Consultants throughout the US, Canada and the United Kingdom EPM & BI Experience & Success 2,000+ Oracle EPM, BI, & Big Data projects successfully delivered since our founding in 1996 Depth & Breadth of Service Offerings Product Experts across: EPM Suite - Planning, HFM, HSF, HPCM, DRM, FDMEE Business Intelligence – OBIEE, Essbase Big Data – Big Data Discovery, Endeca Information Discovery, Hadoop and EBS Information Discovery Visioning & Roadmaps, Full Life Cycle Implementations, Tech Review & Assessments Additional Value Added Service Offerings Exalytics – Installation, Configuration & Benchmarking Services Infrastructure Services – Design, Configuration, Performance Tuning & Upgrades Support Services – Remote Help Desk, Lev 1 Support, Patch release Support Training Services - Customized and Pre-Packaged EPM/BI Training Delivery 2 Ranzal Oracle ACEs Across EPM/BI Platform (Planning/BI, HFM & FDMEE) Co-Development Efforts with Oracle Product Management Customer Advisory Boards, Beta Testing, Certification Exam Development Workforce Planning Balance Sheet Planning Capital Planning & PFP HFM Financial Close Management Disclosure Management HPCM HSF FDMEE/ERPi & EPMA 3
- 4. Our Services Financial Close & Consolidations Business Intelligence/ Big Data Enterprise Planning & Analytics Data Integration Services Training & Support Services Advisory ServicesInfrastructure Costing & Profitability Mgmt Business Intelligence/Big Data • Scorecards & Dashboards; Mobile Delivery • Prepackaged Analytic Applications (OBIA) • BI Foundation (OBIEE / Essbase) • Financial & Operational Analytics • Reporting & Publishing • Big Data • Information Discovery (Endeca) • Business Intelligence Cloud Service (BICS) Financial Close & Consolidations • Legal, Segment, & Mgmt Reporting • Financial Performance & Close • Optimization & Performance Lab • Tax Provisioning • Regulatory Requirements Data Integration Services • ERP Integration • Financial Data Management • Data Warehousing • MDM & DRM • ETL Services and Automation Infrastructure • Hardware Sizing, Installation, & Configuration • Exalytics Benchmarking • System Monitoring, Backup, & Disaster Recovery • Upgrade & Migrations Advisory Services • Project/Program Management & Process Change • EPM & BI Road Maps Training & Support Services • Standard & Custom Training • Virtual Classroom • Multimedia and UPK • Service Level Agreements • Managed Services & Hosting • Performance Engineering Enterprise Planning & Analytics • Strategic Planning (HSF) & Modeling • Planning, Budgeting & Forecasting • Workforce, Capital, & Project Financial Planning • Public Sector Planning • Cloud Services Costing & Profitability Management • HPCM Standard & Detail Models • Waterfall Allocations • Shared Service Charges • Activity Based Costing • Customer, Product, Segment & LOB Profitability 4
- 5. 5 About WestRock Source: IR.WESTROCK.COM / Presentations – Deutsche Bank’s Global Industrials and Materials Summit 06/08/16 1) Represents trailing twelve months ended March 2016 sales adjusted for separation of Ingevity, including pre-merger MWv sales for quarter ending June 2015. 2) Source of rankings: Company and market research. Rankings are based on capacity.
- 6. About WestRock Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/2015 6
- 7. 7 Source: IR.WESTROCK.COM / Presentations – Jefferies Conference Presentation – 8/15/2015 About WestRock
- 8. 8 Business Background EPM Solution Overview Implementation Approach Implementation Results Closing and Q&A Agenda
- 10. Hyperion Planning Cubes • Operational • Financial • Capital • Std Cost • Sales • Freight • Rolling Forecast • Salary • Expense Multiple Billing Systems JDEdwards G/L – A/R – A/P Purchasing / Job Cost Fixed Assets / EPAM Legacy RockTenn Multiple Purchasing Systems PeopleSoft Payroll 10 Financial Systems Overview at WestRock
- 11. SAP 1 SAP 2 SAP Templates Non SAP Templates 45 Sources, 34% of Revenue Corporate Entries 18 Sources, No Revenue SAP BW 2 Systems plus 16 templates 66% of revenue Financial Systems Overview at WestRock SAP BCS 81 Sources Legacy MWV 11
- 12. Objective – 81 Sources in 100 Days Produce Consolidated Financial Statements generated by JDE Report Profits by Business Unit in JDE & Hyperion Report Balance Sheet by Legal Entity in JDE & Hyperion Goal Have all general ledger summary level data (balance sheet and business unit revenue/expense) in JDE and Hyperion for the July 31, 2015 financial close. 12
- 13. Multiple Challenges to Overcome Organizations needed to be integrated within 100 days (81 sources to 1 Financial System) Prior mapping processes were time consuming and required rigid one-to-one maps from source to target using Excel spreadsheets Methods and tools utilized in prior mappings differed – skills were not transferable Key validations were required prior to loading of mapped data to the JDE GL to reduce significant delays in the closing process 13
- 14. But What Path To Take? Option 1 – Perform High Level Consolidations and Focus on External Reporting Only Option 2 – Ensure Consistency in Performance Management Reporting at the Plant Level so the business can be properly managed Senior Leadership Weighed in and Provided Critical Direction Steve Meadows, CAO – “Our internal business partners rely on Hyperion to support their performance management reporting needs around Divisional and Plant Profitability. We have a mandate to provide this same level of reporting capability, and must strive to do so, in the new organizational structure, until we know that we can not.” With support from Key Leadership, a dedicated combined finance team, and the DRM-FDMEE accelerators from Edgewater Ranzal, Option 2 was approved as the way forward. 14
- 15. The Project Mandate Financial reports are accurate and complete Consolidations are complete in time for the July 31st close and subsequent quarterly filings, preferable in a single consolidations tool Management Reporting processes remain in place until transition is planned and implemented For day 1, as little upstream processes as possible are changed, and full transitions are considered only after day 1 As much detail as possible is put into the financial system A tool is used to facilitate the mapping process in a way that can be completed and tested before the deadline and can be efficiently maintained 15
- 17. Strategy Management Profitability Management Enterprise Performance Management Solution Planning & Forecasting Customer Management Resource Management Owners & Investors RegulatorsManagement Operational Systems Management Reporting Financial Close & Reporting Shared Master Data & Governance General Ledger Sub Ledgers Financial Systems Reference Data & AttributesHierarchies & Mappings Workflow Performance Management Architecture Shared Master Data & Governance Oracle Hyperion Data Relationship Management (DRM) 17
- 18. Oracle Data Relationship Management DRM Enables Change Across the Enterprise 1. Manage Routine Change • Eliminate parallel maintenance • Align dimensions across all domains • Enforce business rules • Maintain complex maps • Simplify close cycles • Reduce reconciliation risk • Create, manage & align reporting hierarchies 2. Accelerate Transformation • Repeatable M&A Onboarding Process • Catalyst for organization & finance transformation • Simplify COA transformation & redesign • Speed up business approvals with “what if” scenarios against business transactions 3. Reduce Risk • Simplify & reduce risk for upgrades, migrations & rationalization initiatives • Assure compliance with business rules & policies • Simplify regulatory compliance • Lower risk of financial misstatements with proactive change management & data governance 18
- 19. Baseline Old COA (R11) & Data Segment Definition – COA Team R12 Segment Values – to DRM R11-R12 Segment Maps – to FDM DRM Capabilities Versioning of Hierarchies Reporting to Stakeholders Modelling new Hierarchies Approved Versions fed to R12/EBS New COA (R12) Essbase Cube Feed New Hierarchies from DRM Feed Mapped Data from FDM Analysis – Evaluate COA with Data SmartView Adhoc Analysis FDM R11 to R12 Mapping R11 to R12 Mapping R11 to R12 Mapping FDM Data & Maps Finance Transformational Example – COA Redesign Old Mutual Case Study from Oracle Open World 2012 EssbaseR11 EBS R11 EssbaseR11 DATA Essbase Data Load R11 DATA DRM Reference Metadata HFMHierarchies Managed Metadata R12 Posting Codes & Hierarchies CoA Team CoA Team R12 EBS ValueSet R12 EBS ValueSet HFMDims DRM_Int InterfaceTables Published Version R12 EBS R12 Essbase R12 Hier R12 DATA R11 DATA Export R11 Data Rebuild R11 Cube Rebuild R12 Cube ReMap R12 Data FDM Task Scripts 19
- 20. Use Ranzal COA Approach as Accelerator for M&A Implementation Hyperion Planning Cubes • Operational • Financial • Capital • Std Cost • Sales • Freight • Rolling Forecast • Salary • Expense JDEdwards G/L – A/R – A/P Purchasing / Job Cost Fixed Assets / EPAM SAP 1 SAP 2 SAP Templates Non SAP Templates 45 Sources, 34% of Revenue Corporate Entries 18 Sources, No Revenue SAP BW 2 Systems plus 16 templates 66% of revenue ????? Hyperion FDM Map execution DRM Hierarchy & Map Management Recon Cube Ranzal COA Framework 20
- 22. Implementation Timeline Mar 15th: Project Kick Off. April 30th: Requirements & Conceptual Design Phase Complete. May 11th Initial mapping within DRM complete within Edgewater Ranzal Lab One source mapped, loaded, and viewable by Corporate Finance within Essbase May 29th: Initial Build complete FDM & DRM JDE load file Process Data extraction process from source systems Software Upgrade of Dev & Test Environment to 11.1.2.3. Month of June: Testing & Cut Over. Complete Upgrade. End-to-End System Integration testing Acceptance Testing w/ preliminary training Production Cut-Over 22
- 23. Team Composition Executive Sponsor CAO Governance Project Manager DRM FDM Essbase JDEdwards (1) Consultant (1) Manager (11) COA Maps Business (1) Consultant (1) Manager (1) Manager Engagement Manager (1) Integration Specialist Steering Committee Accounting, Tax, Audit, IT Key: Blue = WestRock Green = Consulting 23
- 24. Hyperion Design Diagram with Data Flow JD Edwards / Hyperion SAP ECP SAP P01 SAP Templates Included in total SAP numbers: 16 Sources, 5% of Revenue Non SAP templates 46 Sources, 33% of Revenue Corporate Entries 18 Sources, No Revenue SAP BW 2 Systems, 61% of Revenue JDE Master Data FDM Map execution DRM Hierarchy & Map Management Recon Cube JDE GL Staging Tables (AS400 or SQL) Mapped JDE File Standard JDE batch process Maps Un mapped Combo MA Shared Folder DRM Errors Unmapped JDE MDM M M FDM Errors Missing/Incorrect Mappings and Out of Balances A AA Recon Cube Preview Functionality and Data Reconciliation JDE Processes Standard JDE Pre-Edit and Z- File Processes M Data Movements: A = Automated data movement M = Manual data movement MA = Manual kick-off of automated process M MA A MA Shared Folder A SAP only MA Valid Targets Map & Validate Update Mappings & Validations JDE Entry Manual Entries 24
- 25. DRM Master Data Design DRM Master Data Targets Initialized from JD Edwards (JDE) JDE Business Unit (BU) Master – Table F0006 Primary Hierarchy Attributes utilized to validate if can be posted to JDE Account Master – Table F0901 Captures JDE Category Codes for Hierarchy Build Attributes utilized to validate if can be posted to Attributes utilized to require a sub ledger Trading partner required for Interco Balances JDE Company (CO) Master - Table F0010 Primary Hierarchy 25
- 26. DRM Versioning & Archival Four types of Version Status Master (Working) Version A new Version is created and the default status is Working If there are previous Versions, then the new Version is created by copying the old Version to a new Version Older Versions are set to Finalized and/or in some cases, Expired This new Version is the Master Version and all the entries are done only in this Master Version Validations are performed again to ensure the integrity of the data Submitted Version Master version status is changed to Submitted and changes are no longer permitted Validations are performed again to ensure the integrity of the data Finalized Version When data integrity is assured, the Master Version status is changed to Finalized and no further changes are permitted Exports are performed from the Finalized version to send hierarchy data to participating systems Expired Version The version status for the previous reporting period may be changed from Finalized to Expired, and the version is stored for possible future use in historical analyses or as an audit record 26
- 27. FDMEE Design Load YTD and Prior YTD values (if provided) from source files provided Map source files to JDE Target based on mapping provided by DRM Provide access to the mapped data for consumption by the RECON Essbase Target Check to ensure that valid BU/Account.Sub combinations are utilized Create JDE file extract by FDM location per spec provided 27
- 28. DRM Build Highlights Hierarchies & Dimensions (2) Account, Business Unit (Source-Target Mappings) JDE Account hierarchy - ~78K nodes JDE BU hierarchy - ~22K nodes Compare, Import & Blend Processes (CIB) (2) JDE Account CIB – compare new Account Mapping hierarchy imported during JDE CDC JDE Business Unit CIB – compare BU Mapping hierarchy imported during JDE CDC Validations (3) Invalid source account mappings (e.g. account mapped to a non-posting JDE account) Invalid JDE sub-ledger & Invalid JDE Trading Partner Other Technical Configuration 20 DRM Users 80+ Source Systems and a consolidated SAP B/W Instance 28
- 30. Results & Benefits Realized Summary of Project Results Delivered an integrated FDMEE/DRM/Essbase mapping platform to map disparate sources into one common JDE GL Architected and implemented solution within 100 days and under budget Effectively transferred knowledge ensuring that functional admins were able to update and run the model autonomously Benefits Realized Developed framework for quickly integrating future companies into the organization Standardized mapping processes regardless of source Increased traceability, versioning, audit, management and control within the mapping process Pre-validation of data prior to loading into the GL leading to less voiding and reloading of batches 30
- 31. Subsequent Usage since Phase 1 DRM Phase 2 (Ongoing) Feed of DRM master data back to JDE DRG Workflow to support new JDE master data request process Feed of hierarchies from DRM Optimization of Acquisition Information Assets Rationalization of Acquisition Source Systems Additional Detail and Automation from Acquisition Source Systems Additional M&A “Information Factory” Usage 2 Additional Acquisitions 1 Joint Venture 1 Planned Spin Off Continued Need to meet aggressive timelines 31
- 32. Closing and Q&A
- 33. It won’t be hard to find us at Kscope16! #pinittowinit – Pick-up at pin at booth #611 – Win throughout the week! 8 Conference Sessions 6/27, Session 1, 8:30 - 9:30am How to Use Hyperion Tax Provision to Complete the Close Process Puzzle 6/27, Session 2, 10:15 - 11:15am Cycling off FDM Classic on Steroids and Taking a Dose of FDMEE HGH 6/28, Session 8, 9:45 - 10:45am Opus Group is Over the Moon with Oracle Planning and Budgeting Cloud 6/28, Session 9, 11:15am - 12:15pm FDMEE Can Do That? 6/28, Session 12, 4:45 - 5:45pm Profitability and Cost Management: Have it Your Way 6/29, Session 14, 10:15 - 11:15am The M&A Information Factory: 80 Sources in 100 Days with DRM and FDMEE 6/29, Session 18, 4:30 - 5:30pm Migration Approaches for FDMEE, the Heart of the Matter 6/30, 9:00 – 11:00 The Rules Circus: Experts Parade the HFM Functions
- 34. Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |