Oracle EPM (Enterprise Performance Management) is a suite of integrated applications and tools designed to help organizations effectively manage and improve their performance across various aspects of their business operations. It provides a comprehensive set of performance management and business intelligence capabilities to support strategic planning, budgeting and forecasting, financial consolidation and reporting, profitability analysis, and decision-making processes.
The Oracle EPM suite consists of several modules, each addressing specific areas of performance management:
Planning and Budgeting: This module enables organizations to create, collaborate on, and manage budgets, forecasts, and plans. It allows for the automation of planning processes, such as data collection, consolidation, and analysis, and supports workflow management and version control.
Financial Consolidation and Close: This module facilitates the financial close process by streamlining the consolidation of financial data from various sources, automating intercompany eliminations, and ensuring compliance with accounting standards and regulatory requirements.
Financial Reporting and Analysis: This module provides robust reporting and analysis capabilities, allowing organizations to create, customize, and distribute financial reports and dashboards. It offers flexible data visualization options, ad-hoc querying, and multidimensional analysis to gain insights into financial performance.
Profitability and Cost Management: This module helps organizations analyze and optimize profitability by assigning costs and revenues accurately to products, customers, channels, or other dimensions. It enables activity-based costing, profitability modeling, and what-if analysis to identify areas of improvement and support strategic decision-making.
Enterprise Data Management: This module focuses on data governance and data quality management. It provides tools to manage master data, metadata, hierarchies, and data mappings across different EPM applications, ensuring consistency and integrity of data used for reporting and analysis.
Disclosure Management: This module streamlines the process of creating, reviewing, and publishing external financial reports, such as annual reports or regulatory filings. It offers collaboration features, document workflow management, and ensures data accuracy and compliance with reporting standards.
Oracle EPM is designed to integrate with other Oracle applications, such as Oracle ERP (Enterprise Resource Planning) systems, as well as third-party systems, to provide a unified view of financial and operational performance. It helps organizations align their strategies, improve decision-making, optimize resource allocation, and drive performance improvement across the enterprise.
Why to use Oracle EPM?
There are several reasons why organizations choose to use Oracle EPM (Enterprise Performance Management) for their performance management needs:
Comprehensive Suite: Oracle EPM offers a comprehensive suite of integrated applications and tools that cover various aspects of performance management, including strategic planning, budgeting, financial consolidation, reporting, profitability analysis, and data governance. Having all these capabilities within a single platform streamlines processes, promotes data consistency, and improves efficiency.
Scalability and Flexibility: Oracle EPM is designed to accommodate the needs of organizations of all sizes, from small businesses to large enterprises. It provides scalability to handle growing data volumes and user bases. The platform is also flexible, allowing organizations to adapt and customize the applications to match their specific business processes and requirements.
Integration with Oracle and Third-Party Systems: Oracle EPM integrates seamlessly with other Oracle applications, such as Oracle ERP systems, enabling organizations to leverage their existing data and processes. It also supports integration with third-party systems, ensuring data interoperability and allowing organizations to consolidate data from multiple sources for a holistic view of performance.
Streamlined Planning and Budgeting Processes: Oracle EPM automates and streamlines planning and budgeting processes, reducing manual effort and the risk of errors. It enables collaborative budgeting and forecasting, allowing stakeholders to contribute and provide input in real-time. The platform also supports driver-based planning and what-if analysis, enabling organizations to evaluate different scenarios and make informed decisions.
Enhanced Financial Consolidation and Reporting: Oracle EPM simplifies the financial consolidation process, consolidating data from various sources, automating eliminations and adjustments, and ensuring compliance with accounting standards. It provides robust reporting and analysis capabilities, allowing organizations to create customized financial reports and dashboards, perform multidimensional analysis, and meet regulatory reporting requirements.
Improved Decision-Making and Performance Optimization: By providing accurate and timely financial and operational information, Oracle EPM enables organizations to make informed decisions and optimize performance. It supports profitability analysis, activity-based costing, and performance measurement, helping organizations identify areas of improvement, allocate resources effectively, and align strategies with business objectives.
Data Governance and Compliance: Oracle EPM includes features for data governance and data quality management. It allows organizations to define and enforce data standards, ensure data consistency across applications, and maintain data integrity. The platform also supports compliance with regulatory requirements, such as Sarbanes-Oxley (SOX) and International Financial Reporting Standards (IFRS).
Overall, Oracle EPM offers a robust and integrated platform that empowers organizations to effectively manage their performance, align strategies, optimize resource allocation, and drive financial and operational excellence. It provides a unified view of data, streamlines processes, enhances decision-making, and promotes collaboration across the organization.
Oracle EPM acquisition history:
Oracle has expanded its EPM (Enterprise Performance Management) capabilities through a series of strategic acquisitions. Here are some notable acquisitions related to Oracle EPM:
1 – Hyperion Solutions Corporation (2007): Oracle acquired Hyperion Solutions Corporation, a leading provider of performance management software, for approximately $3.3 billion. This acquisition significantly enhanced Oracle’s EPM offerings, as Hyperion was widely recognized for its financial planning, budgeting, and consolidation solutions.
2 – Profit Logic (2005): Oracle acquired Profit Logic, a company specializing in retail performance management software. This acquisition enabled Oracle to strengthen its EPM suite with capabilities tailored specifically for the retail industry, including demand forecasting, inventory optimization, and pricing analytics.
3 – PeopleSoft (2004): While not a direct EPM acquisition, Oracle’s acquisition of PeopleSoft expanded its enterprise software portfolio, including financial management solutions. PeopleSoft’s financial applications complemented Oracle’s EPM suite, allowing customers to benefit from integrated EPM and ERP capabilities.
4 – Crystal Ball (2007): Oracle acquired Crystal Ball, a leading provider of predictive modeling and forecasting software. This acquisition added advanced analytical capabilities to Oracle’s EPM suite, enabling organizations to perform predictive modeling, scenario analysis, and risk assessment.
5 – Active Data Services (2008): Oracle acquired Active Data Services, a company specializing in enterprise data integration and data services. This acquisition strengthened Oracle’s EPM suite by enhancing its data integration and governance capabilities, allowing for seamless integration of EPM applications with various data sources.
6 – Ndevr (2013): Oracle acquired Ndevr, a company specializing in environmental reporting and analytics solutions. This acquisition expanded Oracle’s EPM suite to include sustainability and environmental performance management capabilities, enabling organizations to measure and report their environmental impact.
It’s important to note that the acquisition history of Oracle EPM extends beyond the listed acquisitions, as Oracle has continuously invested in research and development to enhance its EPM suite and expand its capabilities. These acquisitions have helped Oracle establish a comprehensive and robust suite of EPM applications, empowering organizations to manage and improve their performance across various business functions.
Oracle EPM integration with Oracle Fusion Cloud:
Oracle EPM (Enterprise Performance Management) integrates seamlessly with Oracle Fusion Cloud, Oracle’s suite of cloud-based enterprise applications. This integration allows organizations to leverage the power of both platforms to streamline their financial and operational processes, enhance decision-making, and achieve greater efficiency. Here are some key aspects of the integration between Oracle EPM and Oracle Fusion Cloud:
Data Integration: Oracle EPM integrates with Oracle Fusion Cloud applications, such as Oracle Financials Cloud, Oracle Procurement Cloud, and Oracle Project Portfolio Management Cloud, to access relevant financial and operational data. This integration ensures data consistency and accuracy, eliminating the need for manual data entry and reconciliation.
Integrated Planning and Budgeting: Organizations can seamlessly integrate their financial planning and budgeting processes between Oracle EPM and Oracle Fusion Cloud. This integration enables real-time data synchronization, collaborative budgeting, and streamlined workflows. It allows users to leverage data from Oracle Fusion Cloud applications for accurate forecasting, budget allocations, and scenario analysis in Oracle EPM.
Financial Consolidation and Reporting: Oracle EPM integrates with Oracle Fusion Cloud’s financial applications to facilitate the consolidation of financial data from multiple sources. This integration ensures smooth financial close processes, automates intercompany eliminations, and helps maintain compliance with accounting standards. The consolidated data can then be used for reporting and analysis within Oracle EPM.
Shared Security and User Management: Oracle EPM and Oracle Fusion Cloud share a common security model, enabling organizations to manage user access and permissions centrally. Users can access both platforms using a single sign-on (SSO) approach, providing a seamless and secure user experience.
Unified Reporting and Analytics: The integration between Oracle EPM and Oracle Fusion Cloud allows for unified reporting and analytics. Users can combine financial and operational data from Oracle Fusion Cloud applications with performance data from Oracle EPM to gain comprehensive insights into their organization’s performance. This integration supports the creation of customized reports, dashboards, and scorecards for informed decision-making.
End-to-End Process Automation: The integration of Oracle EPM and Oracle Fusion Cloud enables end-to-end process automation, from planning and budgeting to financial consolidation and reporting. Organizations can streamline their financial processes, reduce manual effort, and improve overall efficiency by leveraging the combined capabilities of both platforms.
Overall, the integration between Oracle EPM and Oracle Fusion Cloud brings together powerful capabilities for performance management and enterprise resource planning. It allows organizations to optimize financial performance, align strategies, and drive operational excellence by leveraging data and processes across the entire organization.
Required skills for Oracle EPM on your Project :
To work with Oracle EPM (Enterprise Performance Management), you will need a combination of technical skills and knowledge. Here are some of the key technical skills required for Oracle EPM:
Oracle EPM Applications: Familiarity with Oracle EPM suite applications, including Hyperion Planning, Hyperion Financial Management (HFM), Hyperion Essbase, Oracle Financial Consolidation and Close (FCCS), Oracle Profitability and Cost Management (PCM), and Oracle Planning and Budgeting Cloud Service (PBCS). Understand the functionalities and features of these applications.
Oracle EPM Administration: Proficiency in administering and configuring Oracle EPM applications. This includes managing application settings, security and user access, metadata management, dimensionality, data loading, and integration with other systems.
Database and SQL: Strong understanding of relational databases and proficiency in SQL (Structured Query Language). This includes creating and executing SQL queries, database design principles, normalization, data manipulation, and data modeling.
Data Integration: Knowledge of data integration techniques and tools used in Oracle EPM, such as Oracle Data Integrator (ODI) or Financial Data Quality Management Enterprise Edition (FDMEE). Understanding how to extract, transform, and load data from various sources into Oracle EPM applications.
Calculation and Business Rules: Ability to create and maintain complex calculations and business rules within Oracle EPM applications. Understanding calculation scripts, member formulas, allocation rules, and other calculation-related functionalities.
Reporting and Analysis: Proficiency in Oracle EPM reporting tools, such as Financial Reporting Studio, Smart View, or Oracle Analytics Cloud (OAC). Experience in designing and generating financial reports, dashboards, ad-hoc queries, and multidimensional analysis.
Scripting and Automation: Knowledge of scripting languages, such as Oracle Essbase Calculation Script, MaxL, or Oracle Smart View VBA scripting. Ability to automate tasks, create custom scripts, and enhance system functionality.
Integration and Web Services: Familiarity with integration methods and technologies used in Oracle EPM, such as Web Services, REST APIs, and Oracle EPM Cloud Data Management (DM). Understanding how to integrate Oracle EPM with other systems or applications.
Troubleshooting and Debugging: Strong problem-solving and debugging skills to identify and resolve technical issues in Oracle EPM applications. Ability to analyze error messages, troubleshoot performance issues, and diagnose problems within the system.
Technical Documentation: Proficiency in creating technical documentation, including design specifications, configuration guides, installation instructions, and troubleshooting guides.
Note that the specific technical skills required may vary based on the specific Oracle EPM modules or applications being used and the organization’s requirements. It’s important to stay updated with the latest Oracle EPM technologies and best practices to excel in this field.
Is Oracle EPM license is highly cost?
The cost of Oracle EPM (Enterprise Performance Management) licenses can vary depending on several factors, including the specific modules and applications you require, the number of users, the deployment model (on-premises or cloud), and the size of your organization. Oracle offers different licensing options and pricing models to cater to various customer needs.
Oracle EPM licenses are typically considered to be in the mid to high price range compared to other performance management solutions in the market. The cost is influenced by the robustness and breadth of features offered by Oracle EPM, as well as the reputation and market position of Oracle as a leading enterprise software vendor.
It’s important to note that Oracle EPM licenses are typically sold as a suite or as individual modules, allowing organizations to choose the specific applications that align with their requirements and budget. Oracle offers both perpetual licenses, where you pay an upfront fee for a perpetual right to use the software, and subscription-based licenses, where you pay an annual or monthly fee to access the software.
In addition to the license cost, organizations should also consider factors such as implementation costs, maintenance and support fees, infrastructure requirements, and any additional services required for deployment, customization, and training. These costs can contribute to the overall investment in Oracle EPM.
To obtain accurate pricing information for Oracle EPM licenses, it is recommended to contact Oracle directly or consult with an Oracle sales representative. They can provide detailed pricing information based on your specific requirements and negotiate potential discounts or package deals based on the scope of your implementation.
GL budget Vs EPM Budget:
GL budget and EPM (Enterprise Performance Management) budget are two different types of budgets used for financial planning and analysis. Here are some of the key differences between them:
1 – Scope: GL budget typically covers the entire organization’s financials, including revenues, expenses, assets, and liabilities. In contrast, EPM budget can focus on specific areas such as sales, production, procurement, or capital investments.
2 – Level of Detail: GL budget tends to be more granular and detailed, providing information at the account level, while EPM budget may be more high-level and aggregated, focusing on key performance metrics and drivers.
3 – Integration: GL budget is usually integrated with the general ledger, providing a direct link to the actual financial transactions. In contrast, EPM budget may be integrated with different systems or data sources, such as sales forecasts, production plans, or procurement budgets.
4 – Workflow and Collaboration: EPM budget may offer more robust workflow and collaboration features, enabling multiple users to contribute and review budget data in a centralized system. GL budget may require manual processes for data input, review, and approval.
5 – Forecasting and Scenario Planning: EPM budget may offer more advanced forecasting and scenario planning capabilities, allowing users to model different assumptions, what-if scenarios, and sensitivities. GL budget may be more static, reflecting a single version of the budget.
It’s important to note that both GL budget and EPM budget can complement each other and provide different perspectives on financial planning and analysis. Organizations may use GL budget as the baseline budget and then create EPM budgets for specific areas or departments that require more detailed analysis and planning.
Oracle EPM suite offers various applications and tools to support budgeting, forecasting, and planning processes, including Hyperion Planning, Oracle Planning and Budgeting Cloud Service (PBCS), and Oracle Enterprise Planning Cloud (EPC). These applications can integrate with the general ledger and other systems to provide a comprehensive view of the organization’s financials.
What is workforce planning?
EPM (Enterprise Performance Management) workforce planning is a process that organizations use to forecast and manage their workforce needs. It is a strategic approach to aligning workforce resources with business objectives, identifying skills gaps, and developing talent strategies to ensure that the organization has the right people with the right skills in the right roles at the right time.
EPM workforce planning typically involves the following steps:
1 – Define the workforce strategy: Establish the workforce goals and objectives that align with the organization’s overall business strategy.
2 – Analyze the workforce data: Review the workforce data to identify trends, skills gaps, and other factors that may impact the workforce’s performance.
3 – Forecast the workforce demand: Estimate the workforce demand based on various scenarios, such as growth, expansion, or changes in the market.
4 – Plan the workforce supply: Evaluate the current workforce supply, including the number of employees, skills, and qualifications, and determine whether it meets the forecasted demand.
5 – Develop workforce strategies: Develop strategies to address any workforce gaps, such as hiring, training, or redeployment, and align them with the organization’s business objectives.
6 – Monitor and adjust: Continuously monitor the workforce data and adjust the workforce plans as needed to ensure that the organization has the right resources to achieve its goals.
Oracle EPM suite offers various applications and tools to support workforce planning processes, including Hyperion Workforce Planning, Oracle Workforce Planning Cloud Service (WPCS), and Oracle Enterprise Planning Cloud (EPC). These applications can integrate with other systems such as HR systems and financial systems to provide a comprehensive view of the workforce data and financial impact.
EPM reporting:
Oracle EPM (Enterprise Performance Management) provides several reporting capabilities to enable organizations to analyze and communicate financial and operational data effectively. Here are some of the key reporting features and tools available in Oracle EPM:
Financial Reporting Studio: Financial Reporting Studio is a powerful reporting tool within Oracle EPM that allows users to create and design financial reports. It provides a flexible and intuitive interface to build pixel-perfect reports with tables, charts, formulas, and other elements. Financial reports can be generated in various formats, such as PDF, Excel, or HTML.
Smart View: Smart View is an Excel add-in that integrates with Oracle EPM applications, including Hyperion Planning and Hyperion Financial Management (HFM). It enables users to access and interact with EPM data directly within Excel. Users can build ad-hoc reports, perform data analysis, create dynamic reports, and leverage Excel’s formatting and calculation capabilities.
Oracle Analytics Cloud (OAC): Oracle Analytics Cloud is a comprehensive business intelligence and analytics platform. It can be integrated with Oracle EPM to provide advanced reporting and analytics capabilities. OAC allows users to create interactive dashboards, data visualizations, and perform self-service analytics on EPM data. It offers robust data modeling, data visualization, and data storytelling features.
Management Reporting: Oracle EPM includes a Management Reporting module that facilitates the creation of narrative reports, board books, and presentations. It provides customizable report templates, collaboration features, and advanced formatting options to present financial and operational information in a concise and visually appealing manner.
Ad Hoc Query and Analysis: Oracle EPM offers ad hoc query and analysis capabilities, allowing users to explore and analyze data based on their specific requirements. Users can query data, apply filters, drill down into details, and perform multidimensional analysis using the EPM application’s user interface or reporting tools like Smart View.
Mobile Reporting: Oracle EPM supports mobile reporting, enabling users to access and view reports on mobile devices. Reports can be accessed through mobile applications or web browsers, providing flexibility and accessibility for users on the go.
These reporting features in Oracle EPM empower organizations to generate financial statements, management reports, variance analysis reports, profitability reports, and other performance-related reports to support decision-making, planning, and financial analysis processes.
Oracle EPM integration with third party applications:
Oracle EPM (Enterprise Performance Management) provides integration capabilities to connect with third-party applications and systems, allowing organizations to leverage data from various sources and streamline their performance management processes. Here are some common integration methods and tools used with Oracle EPM:
Data Integration Tools: Oracle Data Integrator (ODI) and Financial Data Quality Management Enterprise Edition (FDMEE) are popular tools used to integrate data between Oracle EPM and external systems. These tools facilitate data extraction, transformation, and loading (ETL) processes, enabling data to be seamlessly transferred from source systems to Oracle EPM applications.
Web Services and APIs: Oracle EPM applications expose web services and APIs (Application Programming Interfaces) that allow integration with third-party applications. These interfaces enable data exchange and interaction between Oracle EPM and external systems, such as ERP systems, CRM systems, or data warehouses. Through web services and APIs, organizations can automate data transfer, retrieve information, and perform actions within Oracle EPM.
Data Connectors: Oracle EPM provides pre-built data connectors or adapters that enable integration with specific systems. These connectors simplify the process of integrating Oracle EPM with commonly used third-party applications, databases, or file formats. Examples of connectors include Oracle E-Business Suite Adapter, Salesforce Adapter, and Microsoft Excel Add-in.
File-Based Integration: Oracle EPM supports file-based integration methods such as flat files (CSV, TXT) or spreadsheet files (Excel). Users can import or export data from Oracle EPM using these file formats, making it easy to integrate with other systems that generate or consume such files.
Middleware Platforms: Middleware platforms, such as Oracle Fusion Middleware or Oracle Integration Cloud Service (ICS), can be utilized to orchestrate complex integrations between Oracle EPM and other applications. These platforms offer a range of integration capabilities, including data mapping, workflow automation, and process orchestration.
Custom Development: Organizations can develop custom integration solutions using programming languages (e.g., Java, Python) or integration frameworks (e.g., Oracle Integration Cloud). This allows for tailored integrations with specific third-party applications, leveraging custom logic and business rules.
It’s important to note that the specific integration methods and tools used may vary depending on the target application, data requirements, and organizational preferences. Oracle EPM provides flexibility and a variety of options to integrate with third-party applications, enabling organizations to leverage data from multiple sources and streamline their performance management processes.
Recourses I need in Oracle EPM Implementation:
Implementing Oracle EPM (Enterprise Performance Management) in your organization requires various resources to ensure a successful deployment and ongoing management. Here are some key resources you may need:
Project Manager: A skilled project manager is essential to oversee the Oracle EPM implementation project. They will be responsible for planning, coordinating, and managing the project, ensuring it stays on track, meets deadlines, and aligns with business objectives.
Business Analysts: Business analysts play a crucial role in understanding the organization’s requirements and translating them into Oracle EPM configurations. They gather and document business needs, analyze processes, and define system requirements to ensure the solution meets the organization’s performance management goals.
EPM Administrator: An EPM administrator is responsible for the day-to-day management, administration, and support of the Oracle EPM system. They handle user provisioning, security management, system configuration, application maintenance, and troubleshooting.
IT Infrastructure Team: Your organization’s IT infrastructure team will be responsible for providing the necessary hardware, networking, and system resources to support the Oracle EPM deployment. They will ensure the infrastructure meets the system requirements and collaborate with the EPM team for installation, upgrades, and maintenance.
Data Management Team: The data management team will work closely with the EPM implementation team to ensure accurate and reliable data integration from source systems. They will handle data mapping, data quality, data transformation, and data validation processes to ensure consistent and meaningful information in the EPM system.
End Users and Subject Matter Experts (SMEs): Engaging end users and SMEs from finance, operations, and other relevant departments is crucial for gathering requirements, providing feedback, and ensuring the EPM system meets their needs. These individuals will be involved in testing, training, and ongoing system usage.
Implementation Partner or Consultants: Engaging an experienced Oracle EPM implementation partner or consultants can greatly facilitate the successful deployment of the system. They bring expertise, best practices, and knowledge of the Oracle EPM suite to guide the implementation process, provide technical assistance, and offer training and support.
Training and Change Management: Adequate training and change management resources should be allocated to ensure smooth user adoption of the Oracle EPM system. This may include training materials, workshops, user guides, and ongoing support to help users understand and effectively utilize the system.
It’s important to assess your organization’s specific needs, existing resources, and skill gaps to determine the exact resource requirements for implementing and managing Oracle EPM. Depending on the scale and complexity of the implementation, additional resources may be needed. Engaging with Oracle or an experienced implementation partner can help provide guidance and recommendations based on your organization’s specific circumstances.
User types on Oracle EPM:
Oracle EPM (Enterprise Performance Management) offers different user types to cater to varying levels of access and functionality within the system. The specific user types available may depend on the Oracle EPM applications being used, such as Hyperion Planning, Hyperion Financial Management (HFM), or Oracle Enterprise Planning Cloud (EPC). Here are some common user types found in Oracle EPM:
1 – Power Users/Administrators: Power users or administrators have full access and control over the Oracle EPM system. They are responsible for system administration, configuration, security management, and maintenance tasks. Power users typically have privileges to perform advanced functions, such as creating and managing applications, managing metadata, defining security settings, and configuring business rules.
2 – Application Owners/Managers: Application owners or managers are responsible for the specific EPM applications within the system. They have administrative privileges to manage and configure the application settings, such as defining hierarchies, dimensions, data forms, and application-specific business rules. Application owners can also manage user access, security, and data integration processes for their respective applications.
3 – Planning/Forecasting Users: Planning or forecasting users are involved in the budgeting, planning, and forecasting processes within Oracle EPM. They have access to the planning and forecasting modules and can enter, review, and update financial and operational data. Planning users can perform tasks such as creating and submitting budget proposals, analyzing variances, and generating planning reports.
4 – Reporting/Analysis Users: Reporting or analysis users have access to the reporting and analysis functionalities of Oracle EPM. They can generate financial reports, perform data analysis, and create ad-hoc reports using tools like Financial Reporting Studio, Smart View, or Oracle Analytics Cloud. Reporting users can view, drill down, and analyze financial and operational data to gain insights and support decision-making processes.
5 – Review/Approval Users: Review or approval users are involved in the review and approval workflows within Oracle EPM. They have the ability to review and approve budget proposals, forecasts, and other planning submissions. These users may have limited access to specific functionalities focused on reviewing, commenting, and providing feedback on planning and budgeting processes.
6 – Read-Only Users: Read-only users have limited access to view financial and operational data within Oracle EPM. They can access reports, dashboards, and predefined views without the ability to modify or update data. Read-only users are typically stakeholders, executives, or other individuals who require access to financial information for monitoring and analysis purposes.
These user types are examples and may vary depending on the specific Oracle EPM applications and configurations within your organization. The user types can be customized and tailored to meet the specific access and functionality requirements of different roles and responsibilities within the organization.
