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Hyperion Financial Management at Fonterra: Migrating to 9.3.1

HFM 11.1.1 and beyond

Grant Foster Suzi Quatman

IS Systems Lead, Group Reporting Sr Sales Consultant
Fonterra Co-Op Group Oracle
 Agenda

• Fonterra background

• Use of HFM and recent upgrade

• Project objectives

• Project learnings

• Value add

• Wrap up and Questions

• HFM 11.1.1 and beyond

Fonterra

• Fonterra was formed after the merger of the Taranaki-based Kiwi and the Hamilton-
based New Zealand Dairy Group and is owned by around 12,000 farmers, has total
sales of $12-14 billion and is New Zealand’s largest company and its biggest exporter.
Fonterra exports around 95 percent of the dairy products it manufactures and is the
world’s largest exporter of dairy products. It is responsible for over 30 percent of
international dairy trade across open borders. It is a major world player in dairy
ingredient exports such as milk powder, casein and consumer products - including
brands such as Fernleaf and Anchor. Speciality products such as ANLENE and
ANMUM are leaders in their markets. Fonterra has a wide range of international
marketing subsidiaries, joint ventures and other arrangements, including in the US
(with Dairy Farmers of America), North and Latin Americas (with Nestle), and the UK
and Europe (with Arla Foods).
• Fonterra’s global supply chain encompasses shareholder farms in New Zealand
through to customers and consumers in 140 countries. It collects more than 13 billion
litres of milk a year and manufactures and markets over 1.8 million tonnes of product
annually, making it a world leader in large scale milk procurement, processing and
management. It has around 17,000 staff in 40 countries, with over half of its staff being
outside New Zealand.
 Fonterra

• Dairy Cooperative

• Annual Turnover: NZ$12-14 Billion

• Operations in 40 Countries / 25 currencies

• Collects 13 billion litres of milk

• Produces 1.8 – 2 million tonnes of product annually

• Legal Structure vs Strategic Business Units

– Legal (Ingredients, Brands, Corporate, Investments)

– SBUs (geographically aligned business units)

Fonterra’s Consolidation / Reporting Challenges

• Reasons why Fonterra needed an improved

consolidation solution

– Legacy system on a distributed database platform

– Multiple Charts of Accounts
– Multiple GLs
– Intercompany Reconciliation was slow
– Acquisitions / divestitures were difficult
– Poor visibility on adjusting journals / accruals
– Financial / Management Reports limited
– Scalability of existing system
– Fonterra customer story on Oracle.com
 Key statistics

• Implemented HFM 3.5 in 2004

• Converted to 9.3.1 in Mar 2009
• Multiple GLs:
– JDE: 80-90% of Brands operations
– SAP: Ingredients
– Oracle: Manufacturing/on-site ordering
– Legacy: 20 – 30 systems
• HFM is the System of Record
• Entities: 400
• Accounts: 3500
• Users: 250
 Key Statistics

• Entity Hierarchies
– Main Legal / Statutory hierarchy
– Alternate hierarchies : 15
• Key alternate: SBU
• 14 other management reporting hierarchies
 Key Events on Close Calendar
• Key dates / events
– GL close/financial data load – day 1
– Intercompanies loaded and reconciled – day 3
– Offshore entities data submitted – day 4
– All entities data submitted – day 5
– Group Flash to senior Mgmt – day 5 *
– Draft SBU results – day 6
– Regional consolidations and approvals – day 7
– Final SBU results – day 8 *
– Group consolidation complete – day 8
– Group results issued to senior Mgmt – day 9
– Formal Mgmt and SBU reports to FLT – day 11
– CEO/Board Report distributed – day 12
 Objectives for Upgrade

• Maintain Support
• Performance Improvements
– Data Load > 25%
– Intercompany Reporting > 25%
– Consolidations > 300% (42 to 14 mins)
– Financial Reporting > similar
• Leverage Benefits of SmartView
• Easier administration / maintenance
• Get onto System9 Platform
– Integration of other tools (Planning, HSF, web analytics)
– Still using classic application administration
 Migration Challenges

• Migration Path: 3.5 9 9.3.1

• Migration of database failed
– Allocation of table space needed increase
– Backups
• Different versions of HFM and associated software
– Different OS, IIS caused configuration issues
– Log-in error prompt
– Smartview XML error
– Concurrent consolidation, translation and interco reports
– Timeout issues for web and Smartview
• Re-created all forms & grids
– Lost ability to order as desired—V9 defaulted to alpha sort
– # forms to get desired order
 Migration Challenges cont

• Hyperion Reports lost links

– Manually relinked
• Migration of database failed
– Allocation of table space needed increase
– Frequent Backups recommended
• Smartview conversion process failed frequently
– Developed excel macro to convert files
• Smartview Version
– Required upgrade to later version so protected workbooks
would save
– PDF downloads to Word and Powerpoint only 1st page
• Smartview links to .xla file
– Excel Tools > Options > Ask to update automatic links
Advice

• Good opportunity to review rules file for efficiency

– E.g., FY2009-prior specific rules were bounded by IF
statements
– Eliminated custom consolidation and elimination code
– Review Oracle White Paper on Rules File efficiency *
• Review IT infrastructure
– Upgraded servers and database
– Office 2003 Enterprise Edition (8gb RAM)
– Future proof servers
• Minimise business disruption
– No visible changes to metadata or rules
– New add-in and process changes enough for users
 Additional Findings

• Navigation
– Easier / More User Friendly (Page up/down, Ctrl-end)
– More formatting & colour usage
– Look and Feel more intuitive
– Can find what you’re looking for more easily (Ctrl-F)
– More like Microsoft windows look & feel
 Additional Findings cont

• SmartView
– Improved Performance
– Easy Upgrades
– Tools developed with Smartview add value
• Financial Reports
– Hosted within the workspace / integrated

– Easy to access with tabbing across the bottom

– More/better defaults by user
• Links to websites and LAN
– Links to policies, procedures and key files
 Improvements & Value Add - Smartview

 Ad hoc analysis
 Metadata Importer
- base for other models
 ICP utility
- Intercompany Matching / Reporting improvements
- Multiple period available for budget
 Variance Analysis
- Simplified and streamlined analysis
 Security file
 Journal model
 Extract data from multiple databases at one time
 Integration between Smartview, Hyperion reports & Excel
 Improvements & Value Add - Other

• HFM Intercompany Report improvements

- run all intercompany reports in one browser
• Data Load
- ability to load 10 files at once
• Password Admin: Microsoft active directory
- access to outlook email addresses
Further Info

• Fonterra case study

– http://www.oracle.com/customers/snapshots/fonterra-co-operative-hyperion-
case-study.pdf

• Questions

Grant.Foster@Fonterra.com
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HFM 11.1.1: What’s New

 The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
 Oracle’s Performance Management Applications

EPM Workspace

PERFORMANCE MANAGEMENT PLATFORMS

Planning Custom Management Financial

Platform Analytics Reporting & Metrics Reporting
Platform Platform Platform

Business Intelligence Foundation

Fusion Middleware

OLTP & ODS Data Warehouse OLAP SAP, Oracle, Siebel, Excel Business
Systems Data Mart PeopleSoft, JDE XML Process
 Oracle’s Performance Management Applications

EPM Workspace

PERFORMANCE MANAGEMENT PLATFORMS

Planning Custom Management Financial
Platform Analytics Reporting Reporting
Platform Platform Platform

Hyperion Financial Management (HFM), Financial Data Quality Management (FDM),

Financial Reports (FR), Web Analysis (WA), Oracle Data Integrator (ODI)
Business Intelligence Foundation

Fusion Middleware

OLTP & ODS Data Warehouse OLAP SAP, Oracle, Siebel, Excel Business
Systems Data Mart PeopleSoft, Custom XML Process
What’s New at 11.1.1

• Calculation Manager
• Financial Reports: Annotations, Attachments, Rpt Books
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
EPMA - Calculation Manager
Calculation Manager

Separate deployment data

and status for calculation
rules (TBD)

Calculation rules
information
Rule Designer – Graphical Flow

Graphical rule
Drag & drop new
flow chart
calculation
components

Drag & drop existing

components
Shared Calculation Components

Shared object icon to indicate

used by other rules

Usage tab shows where

component is used
View Graphical and/or Script

VB script statements
automatically
generated from
graphical flow
What’s New at 11.1.1

• Calculation Manager
• Financial Reports: Annotations, Attachments, Rpt Books
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
Financial Reporting Annotations
Financial Reporting Annotations
Financial Reporting Annotations

• Users can create & reply to annotations on reports

• Threaded discussions
• Can attach
– Text
– Attachments
– URLs
• Can be attached to a report, grid, column, row, cell or
text within a report, or chart
Financial Reporting: 3rd Party Documents in Books
 Hyperion Financial Management Reporting Accelerator

• Faster reporting
• Seamless integration with HFM User
HFM
• Zero administration Web Server
• Zero License Fee
HFM Application Server

Relational
Data Store

Report Without the Reporting With HFM Reporting

Characteristics Accelerator Accelerator

Query #1 – Entity by Scenario for 1 7 min 44 sec 2 min 46 sec

account – L App 2.8x
Query #2 – Entity by Period for 1 account 4 min 22 sec 1 min 13
– M App 3.6x
Query #3 - Entity by Year for 1 account – L 31 min 7 sec 3 min 1 sec
App 10.3x
Query #4 - Entity by Year for 1 account – 25 min 16 sec 3 min 24 sec
M App 7.4x
Query #5 - Entity by Year for 1 account – 1 hr 33 min 3 sec 15 min 41 sec
D App 6x
What’s New at 11.1.1

• Calculation Manager
• Financial Reports: Annotations, Attachments, Rpt Books
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
 Lifecycle Management
• Consistent, repeatable movement of apps, cubes, repositories or
individual artifacts between dev, test, prod
• Auditing & application comparisons

dev test prod

What’s New at 11.1.1

• Calculation Manager
• Financial Reports Annotations & Attachments
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
Equity Pickup Module

• Reevaluation of investments in subsidiaries

• Used extensively in Europe
What’s New at 11.1.1

• Calculation Manager
• Financial Reports Annotations & Attachments
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
Visibility & Ease of Use:
You can immediately see the
data at any intersection of the
database, and see where the
data came from by drilling.
Ease of Use:
The right mouse menu tells you
all of the actions that can be
performed on the current cell.
Audit Intersection allows you to
drill to the data load module.
Visibility:
The full key and amount are displayed, as well as the
information about who loaded what data from what
source when.
Visibility & Control:
Drilling from the total shows the 4 different accounts
that mapped & summed to that total.
Controls:
You can view many pieces of audit information, including:
 the rules that were used to map source to target and
 the actual source document
What’s New at 11.1.1

• Calculation Manager
• Financial Reports Annotations & Attachments
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
 EPM Architect enhancements

• Support for Shared and Local Dimensions

• Importing dimensions simplified
• Search enhancements in the Dimension Library
• Grid Editor to view/maintain dimensions in tabular format
• Application Creation wizard
• Application Library folders
• EPMA Batch Client
• User-defined attributes
• Dynamic time series
• New security roles for Calc Manager and Profitability
What’s New at 11.1.1

• Calculation Manager
• Financial Reports Annotations & Attachments
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
Data Entry Form Format Changes
What’s New at 11.1.1

• Calculation Manager
• Financial Reports Annotations & Attachments
• Lifecycle Management
• Equity Pickup
• Drill thru from Grids & Web Forms to EBS
• EPM Architect enhancements
• Web Form Enhancements
• Other
 Other
• Phased Submission:
– define the start year for each scenario
– keyword ALL for all groups when you assign/extract/load
submission groups
• Performance Improvements
– 64 bit support — X64 platform (Intel Xeons and AMD Opterons)
– Increase available memory/improve performance
• System Reports Using Oracle BI Publisher
– Enhanced Editing Capabilities
– Print options: PDF, RTF, HTML, XLS
• Extended Analytics: extract data to a flat file
• Intercompany Transaction Module
– specify matching tolerance as % of txn for Match by Transaction ID
or Match by Reference ID
 Financial Management Roadmap Details
CY 2009
Integration
• Workflow Integration (BPEL)
• SmartSpace Integration – new Process
Control gadgets
• Direct integration with SAP R/3 & BW,
PeopleSoft and JD Edwards with Drill-back
• Additional ERP Integration
• Additional ERP functional module
integration
Reduce Cost of Compliance
• Financial Close Management
• Disclosure Management
57
Core Enhancements
• Extended Dimensionality
• Phased Submissions enhancements
• Hierarchical ICP Dimension
• Common WDEF/Grid authoring
environment
• FM System Reports integrated within
Financial Reports
• Data submission directly from Financial
Reports
Advanced Technology
• Multiplatform support for web server
• Allow separate databases per application
• Optimize CPU Utilization