Should we upgrade to Oracle Hyperion EPM 11.2?

    There is a school of thought that says ‘...if it ain’t broken...don’t fix it’. And to some extent this still remains true, especially for customers running stable releases such as 11.1.2.4. However, as soon as a real issue does arise, the first question from Oracle will be ‘...are you on the latest supported release?’.

The recurring question our Hyperion clients pose is “should we upgrade or not?”

·       The premier support for Oracle EPM V11.1.2.4 ends in Dec-2021. That is our reason #1.
Is that the only reason to consider this upgrade to new version – V11.2?
Absolutely not. Though it is one of major reasons, there are several factors behind this.

·       Reason 2:
Oracle has confirmed extended support for on premise EPM modules HFM, planning to 2031 via their Applications Unlimited programme. To benefit from this you need to plan an upgrade to 11.2, its latest maintenance release, 11.2.x

·       Reason 3:
Hyperion EPM 11.1.2.4 is compatible with Windows Server 2008 & 2012 and Microsoft Office 2016. One of our clients is on Windows Server 2008 and another client is on Windows Server 2012. Not sure if it is more related to applications, but performance is better with Windows Server 2012. Some of our Hyperion customers have IT departments that are now advocating corporate standards of Windows Server 2016 / 2019 and the use of the latest Office 2019 releases. This requires an EPM 11.2 Hyperion platform. Or should we say EPM V11.2 requires Windows Server 2016/2019. Whatever we say , that contributes to our reasons list.

·       Reason 4:
Often the prompt to update Hyperion environments comes from IT. This is particularly the case where security exposures have arisen in underlying components such as weblogic or JDeveloper - software that Hyperion requires in order to function properly.

This latest version covers much of Oracle’s product portfolio. That translates into mitigations for 398 security vulnerabilities. Wading through those to get to the Hyperion EPM-related patches - including the supporting back-end framework dependencies - is not trivial.

If you are running Oracle Hyperion EPM 11.1.2.4.xx – patched up-to-date to the Quarterly Critical Patch Released in Apr-2020 - then an update to 11.2 directly brings:

Ø  several technical updates for Hyperion Financial Management (Maximum Base score 4.2)

Ø  a single technical update for Hyperion Financial Reporting (Maximum Base Score 2.4)

Ø  no fewer than 12 technical updates for WebLogic Server 10.3.6.0 (Base Scores from 4.3 to 9.8)

Ø  additional unrated dependencies (e.g. on underlying software components such as JDeveloper) required for implementing these updates.

We actually applied almost 60+ patches for one of our customers to get Oracle Hyperion EPM ready for this upgrade.

We strongly recommend to upgrade your Oracle Hyperion EPM to V11.2.x and get set for another decade of your financial consolidations, planning etc

How we can help

If you are facing pressure to move off legacy releases of Hyperion, do keep in mind that you have choices. Our consultants are well-versed in helping customers meet their IT Audit requirements, or in helping them validate technical and application upgrade implications.

Next step

Considering which version of V11.2.x will be another due diligence to follow in blog soon.

 

Let’s think - HFM or FCCS

Recently , we are working with our clients who uses HFM or looking to implement new consolidation and Financial Reporting System. A question that we are frequently asked is “What is the difference between HFM and FCCS?” To answer this question let’s look at the features and functionality in FCCS and comparison of both FCCS and HFM applications.

FCCS

FCCS means Financial Consolidation and Close Cloud Service.  FCCS is a software as a service (SAAS).

FCCS isn’t quite “HFM in the cloud”, however, it is a great option for organizations looking for a cloud-focused consolidation solution. Almost all the tried and true features of HFM are present in FCCS. One of the attributes of FCCS that bears a striking resemblance to HFM is the dimensionality offered. 

Infrastructure:

• Universal access – Cloud computing can allow remotely located employees to access applications and work via the internet on a variety of devices, i.e. laptop, tablet, smartphone. FCCS is very mobile friendly.
• Up to date software – FCCS software is always up to date. Upgrade and managed by Oracle.
• Security – This is a core competency of Cloud providers. They take more defensive measures – staff & resources – dedicated to the security of the data and applications.
• Scalability – A growing (or shrinking) company can scale their services up or down, whenever they need them without investing in additional infrastructure.
• Disaster Recovery and Backup – With your company’s data safely stored on secure data centers instead of your server room, losing power due to unforeseen disasters, you are back at work as long as you have an internet connection.
• Reduction of costs – unlike on-site hosting the price of deploying applications in the cloud can be less due to lower hardware costs from more effective use of physical resources.

FCCS Key Benefits:

• Best Practices: Best practices out-of-the-box to get up and running quickly.
• Consolidations: A configurable and upgradable consolidation and close framework to tailor the solution to specific requirements.
• Close Management: An end to end consolidation and close solution.
• Reporting: Powerful analytics, dashboards, reports, and analysis for unparalleled insight.
• Easy to use and maintain.
• Automate Data and Metadata load processes
• No infrastructure investments required

FCCS Key Features:

• Application Creation Wizard – Reduces the time needed to configure and implement the solution
• Upgradeable Framework – Configure and extend the solution as required
• Simple Upgrades – Configurations are fully upgradeable
• Intercompany Eliminations – Automatic default intercompany eliminations
• Currency Translation – Default currency translation along with automatic foreign exchange and currency translation adjustment
• Journals- Robust journals module including supported workflow
• Automated Cash Flow Reporting –Using movement hierarchies and bolting calculations with no need for additional calculations
• Close Process Management – Built in task orchestration and close management analysis
• Supplemental Details – Supporting schedules for collection of detailed information helping support statement balances
• Hybrid cloud deployments – Support with deep integration to both cloud and on-premises systems

FCCS and HFM (Hyperion Financial Management) differences:

1. Pre-Seeded Account Dimension

HFM allows to customise Account hierarchy. Design account dimension as per business needs. Balance sheet and income statement could be part of same hierarchy or separate hierarchies.

FCCS comes with pre seeded Account hierarchy and limited customization at summary account hierarchies.

2. Custom Dimensions

HFM has unlimited custom dimensions in version 11.1.2.4.

FCCS comes with 2 custom dimensions in regular version and If GAAP custom dimension is enabled then 1 custom dim is left to use. 

3. Multi GAAP – Dimension

FCCS comes with Multi GAAP Dimension is available to produce reports in multiple accounting principals.

HFM application is needed to be customised to produce reporting in multiple accounting principals.

4. Cash Flow – Movement Dimension

FCCS comes with out of box cash flow functionality.

HFM application needed to be customised to produce cash flow reporting. No functionality is available as such in HFM from out to the box.

5. Data Management

FCCS comes with data management which is very similar to FDMEE or data management in HFM but limited scripting is available. Data can be also be loaded using SmartView and data forms. Drill back capabilities available to Cloud ERP and to the files. On Prem FDMEE can be used to upload data as well.

HFM data is mostly loaded using FDMEE or Data management. FDMEE have scripting, drill back capabilities and integration adapters for source systems available.

6. Reporting:

FCCS comes with predesigned Financial Reports and dashboards and configurable as per client requirements.

HFM doesn’t come with preconfigured financial reports and reports needs to be designed as client requirements. 

7. EPM Automate: 

FCCS Data and Metadata loads are automated using EPM Automate. This tool is only available with cloud products.

8. Close Management:

FCCS has close management functionality which allows to create schedule for month end close process and close tasks listed and assigned. Built in dashboard provides a quick overview of the status of the period end close processes. Tool designed to attain the optimum efficiency of accounting period close.

9. Multiple Applications:

FCCS don’t have feature to create multiple apps within same environment\POD. Separate pod will be required for separate applications.

HFM allows to create multiple apps within same environment.

10. Backend Databases:

FCCS is designed on Essbase database. For larger databases, account changes take longer time to restructure.  Account is mostly the dense dimension.

HFM is based on relational databases and dimension updates won’t have much effect on restructure time.

11. Pricing:

  FCCS:  Standard and Enterprise Pricing packages are available.  There are other Oracle EPM cloud products available with these packages.

Other Oracle EPM products:

• Planning – EPBCS
• Account Reconciliation – ARC
• Narrative reporting – NRC
• Profitability and Cost Management – PCM
• Tax Reporting – TRC
• Enterprise Data Management – EDMC

We are just a step away if you have any questions related to HFM or FCCS. With extensive experience in HFM and FCCS, we are helping companies for on-premises upgrades or migration to cloud.