Kit Updated: 18-July-07 Hyperion Planning Elevator Pitch Target Account Profile High Yield Questions Key Features Competition Third Party Validation Objection Handling Market Trends Customer References Contacts and Resources Elevator Pitch For finance managers who can no longer rely on disconnected spreadsheets to manage their budget process, Hyperion Planning is a centralized planning, budgeting and forecasting application that reduces budget cycle time and improves forecast accuracy. By aligning financial and operational planning processes companies can allocate resources effectively to maximize business results. Key Benefits o Reduce budget cycles – quickly respond to market changes o Improve forecast accuracy - allocate resources to the most important opportunities o Minimize budget maintenance - no wasted resources in finance o Maximize analysis – spend minimal time on reporting and look forward instead o Align finance with operations – create consensus across the organization Target Account Profile Buyer profiles Target buyers are in the Financial Planning & Analysis (FP&A) or Budget Group within the Finance Department. This group is typically found at Corporate Headquarters or the head office of a major division or business unit. Finance managers such as VP/Director Finance, Manager FP&A or Budget Manager, are likely to be process owners and are primarily interested in driving out inefficiencies and reducing time and resources spent on completing the budget. Budget Analysts typically maintain budget templates and reports and handle the distribution and collection of budget data and reporting. They are primarily interested in how easy they can build budget models, templates and reports. Because they maintain (and likely built) the system that needs to be replaced they could be the most resistant to change and likely want to do a very detailed evaluation. Secondary targets are financial analysts or controllers in the business. They are much closer to the business operations and need more flexibility than at corporate to deal with the planning process. Leverage them to grow your deal by expanding beyond financial planning to operational planning (e.g. sales, marketing, production planning). This can help overcome price point or complexity issues if Hyperion Planning is perceived as an overkill by Corporate compared to simpler solutions. The CFO is oftentimes the decision maker and a visionary. As advisor to the CEO and the Board of Directors, brings financial rigor to the business planning process. Therefore CFO’s rely on accurate forecasts especially at public companies where they face high exposure every quarter to investors and financial analysts that expect earnings guidance. To engage or get access to the CFO consider including Hyperion Strategic Finance as it addresses topics that are typically high on the agenda (see HSF saleskit). Department or Cost Center Managers and business users are contributors to the budget process but don’t see it as their primary job. They are primarily looking for ease of use when entering and reporting budget data. They want minimal disruption of their primary (business) activities. Install Base Oracle, PeopleSoft, and JDE customers that have not licensed or implemented Oracle EPB, Oracle OFA or PSFT BP or competing budgeting applications Oracle, PeopleSoft or JDE ERP customers who are unhappy with their current budgeting solution OFA customers who have outgrown this technology and are looking for a budgeting solution Oracle Data Warehouse customers that want to leverage their technology investment and focus on planning and budgeting Hyperion customers with only single product – i.e. Enterprise, Essbase, Financial Management, Strategic Finance etc. and looking to expand their performance management capabilities Daily Business Intelligence New Customer Companies with SAP ERP systems, poor planning and budgeting processes . Companies with mixed ERP environments and no standard platform for planning and budgeting Companies who are struggling with spreadsheets to support planning and budgeting Companies using best of breed budgeting point solutions from Cognos, Business Objects, Infor, Longview and others, but lack the scalability of a centralized platform Target Audience CFO Manager FP&A Budget Manager Financial Analyst Cost Center Managers (DBI) and Balanced Scorecard (BSC) clients, to extend their analytical capabilities to planning and budgeting High Yield Questions o How does your organization manage the planning, budgeting and forecasting process? How long does it take to complete your budgeting process? What are the bottlenecks in the process? o What types of planning/budgeting does your organization perform? For example strategic planning, financial planning, capital planning, headcount/salary planning, sales planning, marketing planning, production planning? How well aligned are these plans? If you make a change to one plan is it immediately reflected in all other plans? o How many people are involved? In how many different locations/geographies? o How often do you update your plans and budgets to reflect changes in your business strategy or market conditions? o What are the key drivers of your business? How do you determine their financial impact when planning your business? back to top Key Features: Integrated advanced analytics ensure accurate forecasts Driver-based planning allows expanding beyond finance into operations Microsoft Office integration reduces manual reporting and data entry efforts Built-in financial intelligence reduces administration efforts and enhances plan reliability Offline planning allows users to work on their plans anytime, anywhere Intuitive Web interface connects a wide user community of business users Task List wizard guides frequent users step by step through the planning process Prepackaged modules for Workforce and Capital Planning enable quick implementations Powerful workflow ease collaboration and maintains process control Scalable architecture supports large deployments to thousands of users Robust data integration with data warehouses, ERP and other transaction systems ensures data quality Packaged Modules Workforce Planning Key Features Packaged application with prebuilt functionality Benefits Simplify implementation and incorporating best practices Head count and expense management Flexible customization tools Integral part of Hyperion Planning Dependable security Capital Expense Planning Packaged application with prebuilt functionality incorporating best practices Flexible customization tools and capabilities Real-time calculation and consolidation of capital asset and capital asset-related expenses Dependable, built-in security reduce maintenance requirements with prebuilt functionality Address all workforce planning requirements with a fully flexible and open architecture Achieve greater accuracy, predictability, and accountability Assess real-time impact of salaries and associated workforce expenses Reduce workforce planning cycle time Simplify implementation processes and reduce maintenance requirements Manage all capital expenses easily Assess the immediate impact of capital expense decisions on financial statements Achieve greater accuracy, predictability, and accountability by involving operationallevel planners Eliminate manual steps by using a comprehensive planning solution Gain security over data, calculations, and global settings back to top Third-Party Validation Analysts and Other Research IDC IDC ranks Hyperion #1 for Financial Performance Management Software “Hyperion continues building loyalty in the finance ranks, with the more current BPM Offerings; including planning, budgeting, and forecasting; financial consolidation and statutory reporting; and scorecarding…The argument against the lack of integration of Hyperion solutions is being met head-on with strategies such as the Hyperion System 9 Foundation, which supports data sharing, synchronization, and security, and Hyperion has a continuing strategy to further integrate the BPM suite. Hyperion’s experience in the BPM market, legacy in finance and BPM applications, and widely adopted BI capabilities get Hyperion an automatic spot on the short list in the majority of deals. Hyperion continues to command the BPM market and has again in 2005 increased its market share.” Gartner Gartner puts Hyperion in the Leaders Quadrant in the CPM Magic Quadrant Report 12/06. “Hyperion has maintained its high brand recognition among CFOs and finance professionals, which means that it is present in virtually every CPM suite evaluation. Hyperion strengthened its offering with release 9.0 of its applications. This leveraged the new Hyperion System 9 BI platform as a more consistent underlying foundation for its main CPM applications, Hyperion Planning and Hyperion Financial Management. The System 9 BI platform includes enhanced Web analysis and financial reporting capabilities and also provides common user management capabilities. Hyperion recently introduced new capital asset-planning capabilities and launched BPM Architect, which enables users to create custom CPM applications and process flows.” back to top Market Trends Market gets more competitive, more players have entered the market and stronger players are consolidating, e.g. SAP buys Outlooksoft and BO buys Cartesis Small point-solution vendors provide competitive pressure by focusing on ease of use, fast implementations and low price. Fixed price projects and SaaS offerings are starting to occur. Planning extends beyond finance into operations. Initially by including driver based planning and connecting business functions into the financial planning process. More sophisticated integration starts to occur by connecting financial planning with Sales & Operations Planning and Supply Chain Planning. Industry specific solutions are becoming increasingly important. This is enforced by the expansion from financial planning into business operations. Rather than building packaged solutions some competitors are using industry templates effectively in sales cycles, e.g. Cognos performance blueprints. Increase in large scale deployments. Driven by the initial success in EPM by finance, companies are starting to roll-out EPM/planning solutions to a wider community within the organization. Growing demand for enhanced sophistication like predictive modeling and statistical forecasting. back to top Competition Vendor Strength Outlooksoft (acquired by SAP) One application for Budgeting and Consolidations Slick demos Excel focus Perceived ease of use Low price Cognos Weakness Excel administration, not hierarchical Scalability issues IT resource intensive, needs a DBA Sensitive financial reporting data in same database as volatile planning data No thin client, Active X components downloaded to PC Rich GUI in web browser Distributed architecture Modeling flexibility (esp. in Multiple admin consoles, admin Analyst product) burden Template (build) applications Scalability issues for specific planning types or Resource intensive verticals No zero footprint client back to top Objection Handling Potential Objection Oracle/Hyperion Response Vs Outlooksoft: Hyperion has multiple products for planning and financial consolidation. With OutlookSoft, a single product doesn’t mean a single application. In fact Planning and Consolidations require two OutlookSoft 5 applications in order to support two different process workflows. Also one product is more complex when it’s not scalable; some OutlookSoft implementations require multiple OutlookSoft instances, or app-sets to provide adequate end user performance. Hyperion Strategic Finance is a separate product from Hyperion Planning while competitors provide one solution for planning. Hyperion Strategic Finance is in addition to what competitors define as strategic planning. It allows you to do critical corporate finance analysis not offered by our competitors. For example optimize capital structure with debt repayments or share buy-backs, analyze affordable dividend, utilize excess cash or fund cash deficits, analyze and structure M&A deals and calculate shareholder value. HSF provides this functionality out-ofthe-box while integrating seamlessly with Hyperion Planning. Hyperion offers only two modules while competitors provide a number of templates or blueprints. (Cognos) A blueprint looks attractive until you try to implement it, then it is like trying to understand interlinked Excel models that were developed by someone else. In contrast, modules are extensions of existing functionality, they can be implemented, they are supported software and can be upgraded when new functionality is released. back to top Customer References In March 2007 we had more than 1,400 active Planning customers. Over 110 are using Workforce Planning and 18 are using Capital Expense Planning (released begin 2007). Sample Customers by Industry: Manufacturing Banking Retail Consumer Packaged Goods Telco & Media Pharmaceuticals Dell, Motorola, Alcoa, Oakley, Gilette, General Motors, Honeywell, Logitech, Goodyear, Lockheed Martin, Daimler Chrysler Citigroup, HSBC, Bank of America, UBS, BNP Paribas, Fifth Third Bank, Commonwealth Bank of Australia, Morgan Stanley, Merrill Lynch, Credit Suisse Office Depot, Safeway, Radioshack, CompUSA, Liz Clairbourne, Denny’s, Carrefour, Decathlon Kellogg, Sara Lee, Red Bull, Cadbury Schweppes, Puma, Levi Strauss, Polo Ralph Lauren, , Yahoo, Google, Verizon, Sprint Nextel, BT, France Telecom, Telenor Pfizer, GlaxoSmithKline, Bristol Myers Squibb, AstraZeneca Fifth Third Bank Challenge Provide technology infrastructure to support rapid growth Re-engineer forecasting and planning process to create more scalable solution Standardize templates and manage global changes Provide accurate, credible data to foster competitive sales culture Support expanded forecasting requirements of lines of business Enable true business performance management across the organization Solution Planning and forecasting spreadsheet processes replaced with Hyperion Planning Results Improved profitability with greater visibility and insight into all business segments Improved reporting and planning process, eliminating 1,200 spreadsheets Made officers more accountable, thanks to data transparency Provided platform that easily accommodates growth and manages change “Hyperion Planning is an easy-to-use tool, which meant we could support the concept of monitoring, managing and holding people accountable to business plans at the banking center level, yet have it centrally administered. So if we needed to make a change people did not have to reopen 1,200 spreadsheets. We did not have to hope and pray everybody got the changes right.” Bret Furtwengler, Vice President, Financial Systems, Fifth Third Bank Hyatt International Challenges Consolidate financial data from 200+ global business units Create budgets for all divisions and business units Provide executives with clear view of financial results and forecasts Solution Centralized, Web-based planning, budgeting and forecasting solution, delivered via Hyperion Planning Results Reduced month end closing time at business unit level for financial cycle from 15 days to 2 days Shrank time required to create forecasts from 5 months to 6 weeks Improved accuracy of data Provided ideal platform for future growth “With Hyperion Planning we saw that we would be able to dramatically cut down on the planning cycle time by streamlining the amount of detail that was previously required to submit with our budgets.” Gebhard Rainer, Vice President for Hotel Finance and Technology, Hyatt International Corporation Olympus Challenges Forecast sales of all consumer products, ensuring inventories are equal to customer demand Provide more detailed analysis by integrating data from other departments Make the system available to 40+ sales executives, many of whom lack technical expertise Support company’s expected growth with flexible analytical tools Solution Hyperion Planning adopted as forecasting application by Sales, Sales Operations, and Finance departments Results Enabled sales force to make accurate, timely forecasts Enabled Marketing and other departments to create better plans to support Sales Enhanced relationships with retailers and resellers Empowered sales executive and others who may lack strong computer skills to easily view reports using the web “Hyperion has provided us with a solution that enables us to improve our overall company performance by creating timely, accurate sales forecasts. Hyperion Planning allows us to do much better analysis of our sales and inventory data, which has affected not only the company’s bottom line, but also our top-line revenue and market share goals.” Daniel Mastellon, Senior Manager, Sales Operations, Olympus America, Inc. back to top