Hyperion Planning, Essbase and FDMEE with HFM and EBS for optimal Forecasting and Reporting capability
First American Financial Corporation (NYSE: FAF) provides financial services through its Title Insurance and Services segment and its Specialty Insurance segment. The First American Family of Companies’ core business lines include title insurance and closing/settlement services, property data and automated title plant records and images, home warranty products, property and casualty insurance, and banking, trust and investment advisory services.
The Canadian Division of FAF called FCT was the first international entity to move onto the enterprise wide ERP (EBS) and EPM (Hyperion Planning and Essbase). All international entities and eventually the U.S. will be migrated over to these systems. FCT needed to sunset its legacy ERP (Epicor) and EPM (Active Planner) systems.
Due to the complexity of executing a new ERP and EPM solution, the company chose a phased approach for Dev, Test, User Acceptance Testing (UAT) and Production implementations. FAF turned to Gibney Consulting for their expertise in EPM solutions. Gibney Consulting recommended to break the EPM components into three distinct streams:
1) Budgeting and Forecast in Hyperion Planning,
2) Data Integration in FDMEE and
3) Reporting in Hyperion Financial Reporting and SmartView.
Gibney Consulting, FAF Internal Hyperion Development and the FCT FP&A team worked in partnership to deliver the successful solution.
- Forecasting is conducted on a quarterly basis. There are three regular forecasts and the final forecast is treated as the annual plan for the next year.
- Data is entered in local currency (CAD) and is converted to USD for submission.
- Developed Driver-based planning that used actuals combined with drivers to calculate forecast for Revenue, Cost of Goods Sold and Operational Expenses
- Allowed users to input forecast directly for specific Revenue and Operational Expenses lines
- Modules were grouped together based off product grouping for Revenue and Cost of Goods Sold
- Reduced effort to administer and execute the forecasting process and improved performance and capability of standard and ad-hoc reporting
- Supported multiple versions, variance analysis and enabled users to revise, iterate and aggregate data.
- Leveraged FDMEE for direct integration to sources and data flow between EBS, HFM, Hyperion Planning and Essbase ASO applications.
- Developed process to extract Revenue and Policy Count data from Planning system to load into Data Warehouse.
- Developed process to easily allow update of metadata via files.
Data Integration Track
The integration of key critical data spans across the entire solution and affected both the Planning and Reporting tracks. The following are the key points in the data integration track:
- Increased the speed and ease of updating through automated integrations with EBS and other supplemental sources.
- Support data integration for GL-level actuals by GL account and relevant GL strings from EBS in local and USD currency
- Actuals are loaded directly from EBS to Essbase ASO application on close day 1 to 4 to give early visibility into the data before they are finalized in HFM.
- Provide ability to refresh data automatically on a daily basis and on demand
- Forecast data is refreshed every 15 mins from Hyperion Planning to Essbase ASO reporting application.
- The following integrations were developed:
- EBS to ASO
- HFM to BSO
- BSO to ASO
- Developed reports for Income Statements, Balance Sheets, Policy Counts, Headcounts, Products, Planning and Department reports.
- All reports were developed using either Hyperion Financial Reports or SmartView.
- Reporting was done on Actuals, Budget and Forecast. In the case of Balance Sheet reports, only Actuals were incorporated.
- Reporting Books and Batches for the Departmental reports were setup for the Cost Center owners.
FCT has a world class enterprise-scale planning and reporting application that integrates with their ERP solution. With Gibney Consulting the company has:
- Reduced budgeting, forecasting and reporting cycles
- Increased budgeting, forecasting and reporting functionality and flexibility
- Improved accuracy of budgeting, forecasting and reporting
- Significantly reduced compliance risk
- Delivered a single version of the truth to improve transparency and visibility into business performance.
- Removed the need to support multiple ERP and EPM solutions
- Increased system availability and performance
- Reduced system issues and maintenance cost