By TopDown Team
December 19th, 2017
Back in January 2017, we wrote a blog post about a theoretical company named TheBestBread and its business requirements to consolidate financial data and produce financial reporting. In that blog post, we discussed how TheBestBread is a multinational company that has financial data from all over the world and how Oracle Hyperion Financial Management could be an effective consolidation reporting solution for it. Now at year end, we assess the situation and give you an update.
First, let’s talk about the paradigm shift that cloud software has brought to the financial reporting landscape. What is cloud software and how can it help TheBestBread? The answer to the former is that cloud software is managed and updated by the software vendor and the client of the software consumes it via the internet. The client of the software does not need (1) to buy computer servers, does not need (2) to have their IT professionals help them maintain the computer servers, and does not need (3) to install the software anywhere. And when there are software updates that include functional fixes and enhancements, there is no need for the client (4) to ask their IT professionals to install the software update. All four of these major tasks are owned by the software vendor among others. The client just needs an internet connection. The client is freed from the time, capital, and expense management related to those four major tasks. Now in the financial reporting segment, Oracle Enterprise Performance Management (EPM) Cloud is considered a top solution set. Oracle EPM Cloud provides solutions for different phases of operational and financial reporting. For consolidation reporting, the Oracle EPM Cloud service is called Financial Consolidation & Close Cloud Service (FCCS).
In terms of how Oracle EPM Cloud and specifically FCCS can help TheBestBread, we’ve already covered above how they can save internal time and costs by not having to own and maintain computer hardware. It also can free TheBestBread from other IT related work like disaster recovery and firewall & network maintenance because, for the most part, Oracle Cloud will also cover those bases for the reporting solution. When TheBestBread starts up a new operation in a new country, all they really need is an internet connection and that new country will be able to access FCCS and have its data consolidate with the rest of the company. The time to getting consolidation financial reporting up and running for the new operation is very short now with FCCS.
Then from the perspective of how FCCS and HFM match up functionally, it is very similar. TheBestBread can do the same things and get similar reporting from FCCS that it can get from HFM. Now to be clear, from a technical perspective, these two software applications represent different architecture and their visual look & feel will be different. But from the functional capabilities, these two software applications, one via the cloud (FCCS) and the other via on-premise hardware (HFM), can deliver similar results. There would not be any gaps to fill for TheBestBread to transition from HFM to FCCS. The process that would take place during the transition is that we would map the architecture from HFM to FCCS and explain how processes change and what the FCCS reporting will look like.