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RESOURCES CATEGORY: Oil & Gas

PREDICTif successfully implements Hyperion Planning and Budgeting Cloud Service (PBCS)

PREDICTif successfully implements Hyperion Planning and Budgeting Cloud Service (PBCS) to replace an oil and gas company’s manual Excel based forecasting system.

Challenges

The Customer was faced with multiple challenges by manual consolidation processes and data entry to prepare their Budget and Forecast financial plans. The characteristic of the old reporting system includes:

  • Manually linked financial statement spreadsheets
  • A system of off-line data repository with actuals from GL and planning data in a web of Excel worksheets
  • Restrictive data access to safeguard the repository – a.k.a. aforementioned worksheets
  • Link breakage between workbooks and worksheets which caused inaccurate forecasting

These issues made the existing solution severely limiting in terms of the ability to predict its revenue and costs for each of its business units. The Customer decided to replace its manual, error-prone, labor intensive financial reporting and planning solution with a more automated, streamlined and cloud-based one.

Scope

The project is to build a PBCS solution to better service the Financial Planning & Analysis (FP&A) team, providing an updated and fully supported financial system for FP&A use. The solution encompasses:

  • Replacing the current Excel solution with PBCS
  • Creating an automated data integration application (using FDMEE) to allow for loading of actuals data
  • Allowing for analysis of further capital expenditure ventures by overlaying with the existing plan
  • Create a Budget and Forecast application to allow for Budgeting and Forecasting at the desired level
  • Customized training program to increase technology adoption
  • Streamlining data submission by providing easy to use form templates to end users
  • Automatic upgrades and scheduled maintenance through PBCS cloud environment

The solution provides a scenario based Planning and Forecasting option while also allowing for a single reporting repository to allow for easily retrievable and reliable data, providing one version of the truth.

Solution

PREDICTif adopts a phased approach that minimizes the impact of change in an effort by breaking the implementation into two phases by its business units: (1) Oil Exploration and (2) Production and Gas Pipeline. This allows concurrent efforts of phase 1 user acceptance testing and phase 2 solution development, meeting Company’s tight deadline.

  • Builds and deploys the desired hierarchy in PBCS for initial use by the exploration and production team.
  • Uses the hierarchies built as the basis for building out business rules, calculations, and Hyperion webforms.
  • Implements a connection to the general ledger system using Financial Data Management Enterprise Edition (FDMEE) and an SQL query to produce a flat file to source data into the application.
  • Builds and deploys the second portion of the hierarchies for gas transportation.
  • Creates forms and calculations.

After user acceptance testing, both pieces were migrated into Production on-time and on-budget.

Additionally, PREDICTif provides customized SmartView and PBCS training as the team begins the preparations for User Acceptance Testing. As the go-live date approaches, enhanced training is given to the administrator level users to prepare them for maintaining the solution going forward.

Results

PREDICTif successfully replaced the current outdated Excel based Planning and Budgeting model with the updated PBCS solution. The Customer has already received significant return on its investment:

  • New Hyperion PBCS based application suite with full support form Oracle
  • Retirement of the manual spread sheet planning process
  • Dynamic reporting solution allowing for bursting, batching, and grouping reports for easy use and run time
  • Reduced time for data load and hierarchy maintenance using Hyperion Planning Admin Extension for Smartview
  • Data form submission templates to organize and simplify data submission for end users
  • Training gives the user a broad knowledge of the Hyperion technologies as well as a focused, more practical knowledge that they can take back to their desk and use within days.
  • Segregating the trainings into a user group and an administrator group not only allows for the User Acceptance Testing to be performed in a more timely and efficient manner, but it also allows for users to effectively manage their time by not having to take trainings that will not apply to their skill set.

The success has laid a foundation for future phases that will further automate the existing financial planning and reporting process by leveraging other PBCS functionality such as EPM Automate and cloud to cloud data integration.

High-Value Health Check to Enhance Existing BI Solutions

NWS

PREDICTif Delivered a High-Value Health Check to Enhance Existing BI Solutions and Develop a Master BI Implementation Plan

CUSTOMER:

A leading Oil and Gas Equipment services company.

REQUIRED CAPABILITIES

  • Remedied performance and instability issues existed with the BI applications
  • Delivered a master Implementation roadmap for an enterprise BI and FPM architecture

CHALLENGES

The customer has over 25 subsidiaries, many acquired through acquisition. Each subsidiary had built out its own business intelligence (BI) and finance performance management (FPM) solutions using a myriad of BI and FPM products. As one of the leading global equipment service and pipeline construction companies, the customer faced numerous challenges related to instability, inconsistency and slow performance of BI applications. In preparation for the opportunities and demands of becoming part of a publicly held company, the customer needed to expand its BI and FPM architecture beyond the business unit level.  Before further expansion could take place, the customer needed to consolidate their division level BI and FPM initiatives as well as map out a strategy and roadmap to establish an enterprise BI architecture. The existing BI systems presented numerous deficiencies in terms of people, process and infrastructure:

  • All its business units had their own BI and FPM technologies, support teams and project initiatives without an enterprise level governance and standard;
  • There was no single version of truth in terms of data on the enterprise level which rendered the enterprise level reporting and financial consolidation inaccurate and labor intensive;
  • The existing BI infrastructure contained a myriad of technologies and products making support and maintenance difficult and cost of ownership extremely high; and
  • Lack of a BI competency center rendered uneven quality of delivered BI applications that resulted in slow performance and instability.

SCOPE                      

Conducted a health check to identify areas of risks and opportunities, recommend remedial measures, and produce a master implementation plan and a roadmap to build an enterprise level BI architecture.

  • Examined existing BI infrastructure and organizations in terms of people, process and infrastructure to discover areas of risks and opportunities, and more importantly, produce a list of actionable recommendations to improve the overall BI strategy and execution;
  • Reviewed the existing architecture, configurations and codes;
  • Identified bottlenecks that were causing slow performance and instability;
  • Aligned business objectives and priorities with BI initiatives;
  • Created organizational philosophy and culture to support an enterprise BI strategy; and
  • Developed a master implementation plan and roadmap for an enterprise level BI architecture.

SOLUTION

PREDICTif Solutions was engaged to provide a 2-week health check. PREDICTif’s senior architects reviewed the existing BI infrastructure, made recommendations for improvement and delivered a master implementation plan for rolling out BI to the entire enterprise.

Based on PREDICTif’s standard health check agenda and customer priorities, PREDICTif and the customer created a detailed agenda before the engagement. The agenda addressed both tactical and strategic aspects of the customers business. The tactical aspects were to analyze the existing BI solutions to identify areas of risk and opportunity as well as provide recommendations on both. The strategic aspect was to understand the customer’s business priorities and deliver an enterprise BI implementation plan.

The two week agenda was filled with workshops, interviews and document reviews during which, PREDICTif’s architects met customer’s personnel from numerous areas of the business to discuss business objectives, current BI architecture and business user concerns. Conversations focused on areas such as data quality, data governance, data modeling, report requirement gathering processes, architecture, support/maintenance and technology best practices. The architects also discussed future plans, business initiatives, short term and long term business goals as well as technological direction in the BI and FPM arena.

The PREDICTif resources combined our own set of BI and FPM best practices and standards with information gathered from the discussions in order to produce a  set of documents:

  • The tactical health check deliverable is in the form of a Microsoft Word document and a Microsoft PowerPoint presentation both of which outlined areas of opportunity, improvement and identified risks as well as the necessary steps to mitigate those risks.
    • In this case, the PREDICTif architects discovered that the BI architecture was not designed appropriately for the increased number of users and business cases which caused significant degradation of performance and stability;
    • The customer did not have a well defined data governance process that was accepted by all business units. It resulted in poor data and metadata modeling as well as an overall lack of data quality and transparency;
    • The architects made recommendations to improve the Bi architecture in terms of performance and stability; and
    • The architects applied PREDICTif developed and tailor-made data governance and data modeling best practices to the customer’s business and IT environment.
  • A master BI implementation plan and roadmap was delivered in order to consolidate the dispersed BI architecture as well as establish an enterprise level BI infrastructure.
    • The implementation plan entailed a multi-phased project plan that detailed the sequence of activities, dependencies and high-level estimate of effort as well as timelines;
    • It illustrated a 18-month BI architecture evolution through the phases of implementation;
    • The roadmap also considered the trend and best-in-class BI technologies; and
    • The implementation plan included the steps to establish an enterprise level BI competency center and governance process.

RESULTS

PREDICTif delivered considerable value to the customer’s return on the software and IT infrastructure investment. The health check’s findings and recommendations significantly improved both the performance and the stability of the customer’s existing BI architecture. The implementation plan provided a clear roadmap to establish an enterprise level, world class BI architecture.

  • The improvement decreased the rendering time of a complex report from an average of 6 min to less than 30 seconds, greatly increasing the productivity;
  • The upgrade and addition of hardware and software instance increased the overall uptime from 95% to that of 99% which was a requirement of the business;
  • The customer completed all three phases of PREDICTif’s recommended implementation plan and the overall BI initiatives continue to gain adoption and approval from the business use population.

Financial reporting & consolidations solution for a leading Oil and Gas Equipment services company

NWS

Delivered a financial reporting and consolidations solution in a multi-currency and multi-account environment

CUSTOMER:

A leading Oil and Gas Equipment services company.

REQUIRED CAPABILITIES

  • Financial consolidation and reporting
  • Finance group’s self sufficiency
  • User friendly interfaces

CHALLENGES

As one of the leading global equipment service and pipeline construction companies, the customer faced numerous challenges related to monthly financial consolidation processing. In preparation for the opportunities and demands of being part of a publicly held company, the customer and its 25 plus legal entities had to manage all of their financial operations in a multicurrency environment, transforming individual financial statements from a group of entities into a single financial statement.  Their legacy solution which consisted of putting consolidated statements together using spreadsheets had severe limitations.

  • Disparate spreadsheets were not a scalable solution to implement across multiple lines of business;
  • Manual consolidations processes were complex, error prone and left no time for analysis; and
  • Currency translation with exception rates for items like intercompany receivables and common stock became a maintenance dilemma.

SCOPE

Efficiency, user-friendliness and self sufficiency were the three main objectives of this project.

  • Deliver a Cognos TM1 based solution to streamline the monthly financial consolidation process;
  • Provide a user-friendly user interface for analysis, ,reporting and dissection of data in an interactive manner; and
  • Establish self sufficiency so that the customer’s business users can easily support and upgrade the solution independent of its IT group.

SOLUTION

PREDICTif was engaged to provide an end-to-end solution and after evaluating several potential software vendors, IBM Cognos TM1 was selected for a number of reasons most notably,  the ability to provide a real-time approach to consolidating, viewing, and editing enormous volumes of multidimensional data.

Cubes having dimensions ranging from 3 to 10 were created. GAAP entries, Eliminations and Adjusting entries were made through the TM1 Consolidations product.   Reports created both in TM1 and Excel were readily accessible through the web with no additional effort.

  • TM1 is an in-memory OLAP server, which means that can typically respond to queries more quickly than its competing products;
  • By implementing TM1, the customer was able to compress the consolidations process into a matter of hours, giving analysts much more time for data analysis; and
  • The customer found out that it could eliminate numerous steps from the process itself further contributing towards more time on analytic activity rather than the mechanics of generating month-end reports.

PREDICTif provided a training curriculum that was tailored to the customer’s needs and culture. Power users received comprehensive technology and solution specific training and as a result, quickly became proficient enough to instruct other end users.

RESULTS

PREDICTif delivered significant value to the customer’s return on investment related to the software and IT infrastructure investment. The solution received positive feedback from the customer’s user population and significantly improved the financial consolidation and reporting process.

  • The deployment of the TM1 Consolidations and Reporting solution reduced the number of hours spent generating the consolidated financial reports and freed up considerable more time for analysis;
  • The network traffic due to large volumes of attachment in the email has decreased;
  • Financial analysts can generate reports and dissect large volumes of data using an interface they are familiar with; and
  • The customer’s finance group uses, supports and enhances the solution without dependence on the IT support.

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Consolidations Process After TM1

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email [email protected]
phone +1 713.457.7474
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