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Oracle Integrated Operational Planning
Align Operational Feasibility with Financial Goals
Name
Title
Key Takeaways
• Align financial goals with operational feasibility
• Make faster and better business decisions
• Unlock the value of existing planning systems
Copyright © 2008, Oracle and / or its affiliates. All rights reserved.
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Agenda
• Business planning challenges
<Insert Picture Here>
• Integrated business planning
• Oracle Integrated Operational Planning
overview and benefits
• Customer success
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The Business Planning Problem
The Finance-Operations Disconnect
• Finance divorced from operational reality
• Simplistic operational models and drivers
• One way communication with operations
• No way to calculate operational feasibility of the plan leading to…
missing the forecast
• Operations misaligned with financial goals
• Detailed models to drive execution, not to dialogue with finance
• Simplistic financial linkages
• No way to evaluate financial impact of operational plan leading to…
adverse financial results
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Today’s Integrated Planning Process
Blood, Sweat and Excel
Financial Planning
Long-Term
Financial
Planning
Treasury
Management
Financial
Planning &
Budgeting
Working
Capital
Planning
Profitability
Management
Performance
Scorecards
Demand
Management
Customer
Management
Human
Resources
Planning
Supply
Planning
Product
Performance
Management
Logistics
Planning
Functional Operational Planning
ERP System
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Integrated Business Planning
Bridging the Finance-Operations Disconnect
Financial Planning
Long-Term
Financial
Planning
Treasury
Management
Financial
Planning &
Budgeting
Strategic
Operational
Modeling
Demand
Management
Customer
Management
Working
Capital
Planning
Profitability
Management
Integrated
Impact
Analysis
Human
Resources
Planning
Performance
Scorecards
Financial
Performance
Modeling
Supply
Planning
Product
Performance
Management
Logistics
Planning
Functional Operational Planning
ERP System
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Oracle Integrated Operational Planning
Enabling Integrated Business Planning
Hyperion Strategic Finance
Hyperion Planning
Long Term Planning
Corporate Development
Treasury Management
Value Management
Annual Budgeting
Periodic Forecasting
Capital Expense Planning
Workforce Financial Planning
Integrated Operational Planning
Inventory
Exposure
Modeling
Financials
Integrated
Revenue &
Profit Planning
Human Resources
Call Center
Operations
Planning
CRM
Key Materials
& Capacity
Modeling
SCM
Manufacturing
Only Oracle integrates…
•
•
Operational planning to assess feasibility of financial plans
Corporate finance to link operations to capital allocation and financing decisions
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What is Integrated Operational Planning
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Business planning layer complementing functional planning systems
• Rough-cut modeling appropriate for business decision making
• Replaces patchwork of spreadsheet models
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Integrated cross-functional planning models
• Captures financial targets and operational constraints in a single framework
• Integrated business impact analysis
3
Interactive what-if scenario analysis
• Transparent planning models with business user control
• Enables iterative planning and decision making
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Enabling An Iterative Planning Process
Finance
Review Plan Exceptions
Evaluate Alternatives
• Analyze critical gaps
• Create what-if scenario’s
between financial and
operational plans
on plan revisions
• Rough-cut modeling
• Resolve constraints
Update Plan of Record
Assess Business Impact
• Compare impact of
• Approve plan revisions
• Submit plan changes back to
alternatives on key
financial and operational
metrics
planning and execution
systems
Marketing


Manage collaboration
Assess cross-functional impact
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Sales
Supply Chain


Enable fast decision-making
Perform interactive scenario analysis
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Integrated Planning Drives Key Requirements
Need for Core Technology Innovation
1. Modeling of operational constructs
•
Rich expressiveness in modeling & calculation logic
•
Complex dependencies, relationships, transformations
•
Declarative calculations, not scripted
2. Rapid analysis of cross-functional impact
•
“Change anywhere, analyze everywhere”
•
Evaluate financial desirability & operational feasibility
•
Interactive response times
3. Robust analytic transaction framework
•
Scenario management & change isolation
•
Reconciliation of concurrent plan changes
•
System of record for plan changes: audit trails
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Oracle’s Change-Based Data Modeling
Unique IP Delivers Powerful Capabilities
Calculations proportional to
changes, not data set size
Scenario analysis does not
require copies of data
Change isolation for robust
scenario management
Reconcile concurrent plan
changes with overlapping impact
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Solution Architecture
Purpose-Built for Integrated Planning
Planning, Analysis and Reporting
Application and Process Layer
Impact Analyzer
Scenario Manager
Federated Modeling
Change-Based Data Modeling Engine
Data Feeds
Plan Updates
ERP / Functional Planning Applications
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Analyze Financial and Operational Impact
Plan Revisions Supported by Fact-based Decisions
• Model plan revisions in
familiar Excel environment
• Review financial metrics and
operational constraints
• Assess impact of plan
revisions interactively
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Manage Business Scenarios and Collaboration
• Create, submit and approve
business scenario’s
• Include planning participants
across business functions
• Manage planning workflow
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Proven Value in Key Industries
High Tech and
Electronics
Discrete and Industrial
Manufacturing
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Consumer Goods
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Move From Function-Centric Planning to Aligned
Performance Across the Business
Global manufacturer and marketer of high-quality, brandname products for consumers throughout the world
Before
After
 Manual processes using hundreds of
spreadsheets
 Integrated planning models across
sales, marketing and operations
 Disconnected decision making within
functional silos
 Operational decisions based on financial
impact assessment
 Lack of alignment across sales,
marketing and operations plans
 Improved alignment across demand
plan, sales promotion plan, capacity
plan and financial plan
 Long planning cycle times due to
batch oriented planning modules
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 Reduced planning cycle times in line
with business needs
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Align Product Allocation Decisions with Business
Priorities
Seagate is the worldwide leader in the design,
manufacture and marketing of hard disk drives
Before
After
 Hundreds of Excel templates with little
consistency across planners
 Consistent data and planning models
shared across all planners
 Lack of visibility and coordination in
demand-supply alignment
 Proactive management of supply hotspots in response to demand variability
 Lack of business and financial impact
analysis
 Responsive decisions based on
operational and financial impact analysis
 Limited scalability to handle growing
business volume & complexity
 40% gain in planner productivity leading
to staffing efficiencies
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Key Takeaways
• Align financial goals with operational feasibility
• Make faster and better business decisions
• Unlock the value of existing planning systems
Copyright © 2008, Oracle and / or its affiliates. All rights reserved.
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Copyright © 2008, Oracle and / or its affiliates. All rights reserved.
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