FP&A Upgrade Strategy Recommendation

Why upgrade?

  • Current version of Hyperion Planning would not scale well with a growing global user base.
  • Current version of Planning requires that many common admin functions be centralized.
  • Consolidation of multiple applications (Enterprise, Planning, Cognos) would simplify the FP&A close process (reporting & analysis), and reduce total IT      system costs.

Please note: This comparison is based on my experience; it’s not an official response. Please Scroll-to right to see complete comparison

What are the choices?

                     

SAP Business   Planning and Consolidation

Oracle Hyperion   System 10X

IBM Cognos   Business Intelligence

Product Summary Info

§    BPC takes   advantage of SAP new NetWeaver platform (Newer BPC v10 based on NW and HANA   architecture)

§    Included are   legacy OutlookSoft and Cartesis  products (strong reputation in consolidation, multi-country reporting)

§    Each module is   designed to be managed and maintained by the business users that own the   business processes

§    Primary end   user interface through MS Office (mainly Excel)

§    Integrated   Planning and Consolidation module

§    Tightly   integrated to core SAP ECC and BW system

§    Ease of   reporting as it is excel based

§    Business   Managed

§    Complete suite   of “Enterprise Performance Management” tools

§    HFM  replacing legacy Enterprise

§    Planning  could sit on top of either Essbase or HFM, and offers a process-driven   workflow manager.

§    Smart View offers   spreadsheet reporting, offline planning, and report display in all MS Office   format.

§    BI+  provides a self-service reporting platform and executive dashboard.

§    DQM (ETL   tool) implements a self-service data load workflow process.

§    Each module   tailor made for specific purpose or defined process

§    Planning –   budgeting/forecasting

§    Controller  – consolidation and month-end close from different ledgers into a common   chart of account structure

§    Workforce Performance – detailed HC analysis.

§    Performance Applications – predefined reporting modules for customer,   financial, and supply chain reporting.

§    MS Excel   interface available for complex needs

Key Advantages

§    Fully integrated   multi-dimension model

§    Full   integration with MS Excel

§    More flexible data   write back.

§    No aggregation calc needed

§    Pre-packaged   business process flows and self-service flows (the workflow feature)

§    Cross-training   opportunity for existing AV SAP resources

§    Upward   compatibility for future versions for SAP.   

§    Zero foot   print  (Highly Scalable)

§    Automated   predictive analytics ( what if Analysis)

§    Collaborative   Forecasting

§    Audit trails   can be tracked  for SOX Compliance

§    Can support   leading ledger for IFRS Support

§    Highly   Customizable UI

§    Highly mature   due to tight integration with  NetWeaver

§    Familiar   interface for FP&A users

§    Significant   synergy if integrating AV’s existing Hyperion consolidation and planning   solutions

§    Fastest   response time for user queries

§    Full   integration with MS Office

§    Offline   planning available

§    “Workforce”   planning module tailored to the detailed HC planning here in AV

§    Distributed admin   functions via full web interface

§    Existing Cognos   knowledge available within AV (IT and Finance)

§    Planning module   can scale to thousands of users

§    Pre-defined   modules and rolling forecast approach help shorten planning cycle

§    Distributed   admin function

§    Offline   planning available

Key Disadvantages

§    Two versions –   MS versions and NW versions

§    Core SAP skill   set not directly transferable to BPC technology

§    Can leverage BW   skills for BPC Backend for NW version only.

§    IT   architectural complexity would increase if implementing all web-based   features

§    Highest need   for technical BI resources vs. the other two choices.

§    Planning,   Consolidation and reporting needs different skills

§    Need to   redesign based on existing Hyperion app.

§    Need to design   interface with Corporate Hyperion Planning application

Implementation Effort (typical – Can vary based on client’s requirements)

§    Typical effort   to implement the application infrastructure and base solution: 3-4 HC, 3-4   months, total $700K – $950K.

§    Pre-Engineered   content like RDS are available for certain business functions which would   reduce the implementation time considerably.

§    Phased roll-out   to each group / region is recommended.

§    Training Cost   is very minimal

§    Typical effort   to implement the application infrastructure and base solution: 4-5 HC, 4 +   months, total $1.200M – $1.500 M.

§    Phased roll-out   to each group / region is recommended.

§    Training Cost   is high

Other Consideration

§    SAP BPC 10 is   in the flagship product for SAP

§    Tightly   integrated to SAP HANA

§    Replaced BW   SEM’s position as the focus of SAP’s next generation EPM Platform

§    Recommended for   iterative implementation

§    Flagship BI   product for Oracle

§    Leverages OBIEE   for data integration

§    Widely   recognized as a leading BI product (not EPM product) along with Essbase for many years

§    Very mature   product

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10 Comments

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  1. Rajesh Pala

    Excellent Document Suresh!!, Especially the product features which all BPC folks can use to pitch to potential customer. You summed up the the features very well and highlighted the SAP EPM  Excel features where SAP has taken a lead from Oracle in terms of integrating and ROI to customer.

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      1. Rajesh Pala

        Suresh,

        Thanks!. We will be looking forward 🙂

        U have been a Guru in handling Consolidations for big shots.

        If possible can you share something on implementing multiple accounting standards (GAAP or IFRS) on the same environment.

        Thanks

        Rajesh

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        1. Suresh Rajappa Post author

          Thanks for the suggestion. Though the IFRS Vs GAAP differences are too log, I will try to summarize and put it in the consize format. Also I will follow it up with the BPC implementation differences too. Thx Rajesh

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  2. Gregor Majdic

    Can you please clarify in key disadvantages and Other consideration you mention in IBM cognos column – Essbase and Hyperion planning (Oracle products)?

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  3. Mucahit Erdal

    I think this is a very weak comparison from IBM Cognos point of view. It does not mention anything about IBM Cognos TM1, which is the competing product for BPC and Hyperion for Planning, Budgeting and Forecasting solutions. Check this page for a comparison of BPC and TM1 from an expert of both.

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  4. Santiago Matamala

    Hi! I´m conducting an investigation in order to define the best EPM tool for planning and forecasting in a large business (composed of multiple entities). We are currently using HSF (Hyperion Strategic Finance) but we want to consider using BPC from SAP. We already have BPC but we only use it to consolidate results. The entire planning and forecasting process is made through HSF(Oracle). Which EPM is more recommendable for this type of business? Our ERP is currently SAP.

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