Solutions
Our client considered a number of vendors for this project, including two of the Big Four professional services firms. Based on the quality of work delivered by Paradigm SES in prior projects and the familiarity of the Paradigm SES team with the client’s data, Paradigm was selected to manage the integration. Quickly, Paradigm SES established a 5-member team to work with both companies’ IT, finance, integration, and divestiture organizations. Over the next 4 months, the teams would work together across all project phases.
Software Solutions used in this project include:
- Hyperion Essbase
- Hyperion Planning
- SmartView
- Financial Reporting Studio
Financial Data Mapping
Understanding both company’s data structure was key to a successful mapping process. Data had to be mapped according to the acquiring company’s metadata structure but using the client’s data. Accounts—such as Company Code, Cost Center, Product Line, Function, and Entity, along with functional accounts—had to be matched. Select accounts had to be redefined, and logic had to be created to accurately map like accounts to one another.
Forecast Development
Paradigm SES had to recreate the logic for a process that mimicked the acquiring company’s 12-month forecast. The client had been using a quarterly forecast. Team meetings were held with the stakeholders of the Financial planning and analysis team to complete the data requirement process. Once the BRD (Business Requirement Document) was prepared and accepted, a proof of concept was created in a Hyperion Planning environment. The team created 7 data forms (Excel and online interface) through which end users could prepare their forecasts. The calculation logic ran automatically when the user hit “Save,” eliminating any additional steps.
Maxl scripts were used to extract data from the planning team and load into the reporting Essbase database. Lastly, 18 additional reports were updated for the acquiring company.
Profitability Cost Management Allocation Process
Paradigm SES worked quickly to understand the acquiring company’s cost allocation process. A process that had taken 5 years to create, the allocation model was based on highly complex revenue-based calculations. Within 2.5 months, Paradigm SES was able to replicate the complex allocation process for the client. The acquiring company’s allocation process was built using DRM and an Oracle database; the logic was run within Oracle and eventually loaded into Essbase. The replicated allocation process was created solely within Essbase; the logic was based on calculation scripts written within Essbase and DRM was used to establish the metadata structure.
Results
All phases completed on time and within budget expectations.
Financial Data Mapping
Working in conjunction with the finance team, Paradigm SES was successful in scrubbing the data, mapping it, and validating the 100% accuracy of the data.
Forecast Development
A new 12-month forecast model was developed with enhanced functionality and the elimination of possible user errors. These enhancements were not present in the acquiring company’s original model. User Acceptance Testing (UAT) was successfully completed in one week.
Profitability Cost Management Allocation Process
Paradigm SES delivered this process in 2.5 months for 1 product line. The acquiring company had taken 5 years to develop this process for 8 product lines. By replicating everything within Essbase, Paradigm SES eliminated 4 additional steps from the acquiring company’s original Oracle process. This change cut the end-to-end process time by 1 day and reduced the chances of possible error.
