Introduction to Hyperion PCM
Alex Ladd
Senior Partner
MindStream Analytics
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EPM Connection Point - Seattle
EPM/BI Conference Presented by Oracle Applications Users Group (OAUG), Northwest
Oracle Users Group (NOUG), OAUG Hyperion SIG and the OAUG BI SIG
July 20-21, 2011
Hyatt Regency Bellevue Seattle, WA USA
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Agenda
• What is HPCM
• The HPCM Lingo
• Is HPCM the scariest product ever?
• The components of HPCM
• Using HPCM
• Genealogy
• Things you should know
• Questions
What is HPCM
-Oracle
• Hyperion Profitability & Cost Management
– Accurately assign, measure, and manage costs and revenues
– Use any methodology to transform financial data through
multiple stages
– Compute costs and profitability for business segments
– Use scenarios to evaluate alternate approaches
What is HPCM
-Alex
• Hyperion Profitability & Cost Management
– Software that allows a company to develop a repeatable,
process for assigning costs to products and customers based
on drivers and activities with a common communicated
methodology that is easily documented.
– Profitability Costing Model that can use Activity Based Costing
methodology or other costing methodologies
– Allows for broad dissemination of the methodology being used
for all costs or departments
HPCM Architecture
Essbase BSO
Web Management and Input Forms
Essbase ReportingCube
EssbaseASO
ReportingCube
Web Analysis, Financial Reporting, Excel,Smartview
Hyperion Profitability & Cost Management
Does the Architecture look familiar?
Essbase
BSO
Web Analysis, Financial Reporting, Excel,Smartview
Web Management and Input Forms
Hyperion Planning
Why HPCM?
• Replaces process that is done in Excel in most
companies
– Really? Seriously? They say that for every product!
• Essbase Allocation models can have draw backs
– Essbase Allocation models require constant documentation
updates, calc script updates and sometimes creative dimension
usage
• HPCM stores all the decisions about source and targets for each
Point of View and automatically generates calc scripts
• Planning is really for budgeting and Planning, it is built
to allow visibility and ease of use around the Planning
process
– HPCM is built for the Allocation process
HPCM Quick Facts
• Oracle/Hyperion worked with The Player Group to
develop and implement HPCM at the first client.
• First implementation was led by John Van Puffelen from
Oracle in 2009.
• HPCM uses Block Storage (BSO) to calculate data and
Aggregate Storage (ASO) for reporting and analysis.
• HPCM REQUIRES the use of EPMA
– Needs Dimension Library
– HPCM utilizes EPMA’s data transfer functionality
HPCM Lingo• Models
– A model is the total of a number of stages and allocations that
create the Profitability model. The term model is used as a
synonym for application. Each HPCM application would be a
model.
• Point of View
– A Point of View in HPCM is different than in any other Hyperion
application. The POV in HPCM is not just your current view of
the data. In HPCM POVs are a part of the process flow, they
move from Draft to Published to Archived. In HPCM the POV is
effectively a version.
• Drivers
– The method for calculating the allocation
– Examples: # of applicants, square footage, # of service calls
HPCM Lingo
• Formula Types
– 8 different formula types;
• Simple, Simple Weighted, Variable, Variable Weighted, Fixed and
Variable, Even, Percentage, Custom
• Assignments
– Create relationships between a source and destination for each
member in the model
• The destination for one relationship becomes the source for the next
relationship in the allocation flow
• Example: Facilities costs allocated to HR and then HR is allocated
to operational departments that are allocation to product.
• Which stage/node gets “linked” to a downstream stage/node).
Assignment Rules can be created and used to both “reuse”
common assignments or to capture any changes in the model
outline.
Stages
– Sequence the Allocation Flow
– May contain up to 3 dimensions
– May be as many as 9 Stages
– A “level of transformation”, within a model, that financial values
may pass through
– Stages are a group of allocations that have commonalities
• Not necessarily allocation commonalities but process commonalities
– Example:
• Stage 1: Facilities Dept and HR Dept being allocated to other
departments within the company. Both are allocated to all other
departments by hard values; square footage and headcount
• Stage 2: Customer Service and Accounts Receivable allocated
based on activities; service call and outstanding receivables
respectfully
Stages – Another example
Departments / Accounts
Departments / Activities
Products
Customers
Customer / Product /Regions
General Ledger
BusinessOperations
Products
Customers
Markets
Is HPCM the scariest Hyperion Product Ever
• Why is HPCM scary?
– Besides coming up with a new definition and use of a
commonly used term like Point of View
– Besides all the new terminology like stages and genealogy
– That’s right, I haven’t mentioned genealogy yet. Didn’t want to scare
you off.
– Besides using a web application server, a relational repository
and not one but TWO flavors of Essbase
• Put all of those things aside and it’s still just a meta
data outline that goes into Essbase and then runs some
allocations, right?
This…
Becomes this!
Actually not that bad
• REMEMBER
– Stages can utilize multiple dimensions and different stages can
reuse the same dimension.
• So, when HPCM creates it’s Essbase outline it needs to create
multiple dimensions that are really the same dimension. Have a
look:
The dimensions for the OPS stage
The dimensions for the MKT stage
The components of HPCM
• Stages
• Drivers
• Assignments
• Calculations
• Genealogies
• Meta Data
• EPMA
• Calculation Cube
• Reporting Cube
• Web Forms
Process Application
Using HPCM
Metadata Management
AllocationModel Definition
Cost & RevenueAllocation Calculations
Profitability & Cost Analysis
• Create & Manage Dimensional Hierarchies
• Deploy the Application
Create & Manage Business Model:• Stages of
Allocations• Drivers• Allocation Rules• Automated
CalcScript Generation
• Store Cost, Revenue & Driver Data
• Calculate Model & Store Results
• Validate the Model• Generate the
Reporting Cube
Reporting Cube with Allocation Genealogy• Profitability
Analysis• Cost & Revenue
Contribution Analysis
Create & Deploy
• Create Dimensions in EPMA
• Create Profitability Application in EPMA– Required System Dimensions:
• Measures
• Must be tagged as Dimension Type “Measures”
• System will automatically insert system members
• Measure defaults to dense dimension and dynamic for ASO
• Allocation Type
– Required User Dimensions:
• At least 1 POV Dim – No more than 4
• At least 1 Business Dim – Organization Modeling Hierarchies
Setup Model
• Set Model Preferences
– Is this Allocation Model for Costs? Yes or No
– Is this Allocation Model for Revenues? Yes or No
– Will IntraStage Assignments be allowed? Yes or No
– Are Stages allowed to be multidimensional? Yes or No
• Create the stages of allocations
– These are the groups of allocations
– You may assign pre and/or post calculation scripts to each
stage
• Enable your POVs
• Load Data
Define Drivers
• Are the methods of calculation at the allocation points
• Are attached to source member intersections in
allocations
• Drivers have formula types:
– A formula can be made up of any combination of numeric
values and functions
– Pre-defined driver types provide a template
– Custom drivers use Essbase CalcScript formulas
• Drivers must be assigned to any intersection that
contains cost or revenue in order for the value to be
allocated
• Driver selections may change from POV to POV
Driver Selection Notes
• Apply the driver to the entire dimension by selecting the
top level.
– The driver is inherited by every member within that dimension
• Apply the driver to a portion of the hierarchy.
– Descendents of the selected member inherit the driver
• Apply the driver specifically to a single member
• Apply the driver to a single intersection within a
member
Create Assignments
• Assignments are unique for every POV
• Assignments can be explicit
– Source A is assigned to Destination B and C
• Assignments can be based on a rule
– Can follow standard Hyperion hierarchy relationships
Calculate
• Validate Model
• Generate Calc Scripts
• Execute Calc Scripts
• Validate Calc Scripts Execution
• Generate Genealogy
• Transfer Data to Reporting Cube
Genealogy
The Genealogy is the tracing of costs through the model
– How much of Resource 1 supports Customer 2?
Customer 1
Customer 2
Activity 1
Resource 1
Resource 2
$6000
$4000
$2000$3000
$1000
$2800
$4200
$4000
$2100
$900Activity 2
$7000
$3000
$4900
$5100
Some Information on Genealogy
• Genealogy can be created based on three different
options:
– Full Matrix
• Checks every possible path
• Longest Calc Script generation
• Fastest Calculation Execution time
– Source Based
• Only checks paths from Stage one sources with $$
• Faster Calc Script generation
• Longer Calc execution time
– Allocation Based
• Only checks paths from Stage one sources with assignments
• Fastest Calc Script generation
• Longest Calc execution time
Essbase Considerations
• Since Dimensions are reused Essbase is set to allow
duplicate names
– So what?
• This becomes important when loading data
• This is also important when writing custom allocation scripts
• "[MKTProducts]@[High Bar]“ or "[GLAccounts].[NoMember]"
• Calc Script names
– The names of the calc scripts generated by HPCM are
significant so that validation and error checking is easy
Calc Script Names
d Driver
j Driver Intrastage
a Allocation
i Allocation
Intrastage
g Genealogy
r Revenue
Allocation
S Revenue Driver
•{CalcType}
d{nn}2_1
{POV}
{Stage}
HPCM Pros/Cons
• Prepackaged (No
development)
• Any Cost Allocation
Methodology
• Model Validation
• Traceability
• Genealogy
• Non-Unique Names
causes data loading to
be cumbersome
• Scary at first glance
Pros Cons
32
QuestionsQuestions
Contact Information
Email: [email protected]
Telephone: 917-579-0926
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