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PCMCS: What should you look at when you decide to leave the ground and fly with cloud?

 

(This is part 1 of 3 blog series to provide details around PCMCS (Profitability and Cost Management Cloud service) Application; available features and its similarities and differences from HPCM (Hyperion Profitability and Cost Management) on premise.)

In the era of increasing competition and reducing margins companies are looking at analyzing their cost and Profitability in detail to find the problem areas and resolve those. So this earlier super niche area of Profitability and cost management is seeing more client's footfalls as it moves to cloud. A profitability application answers many seemingly simple but vital questions for an organization, which would help it to grow much faster than competition, such as:

  1. What are cost bottleneck for your organization?
  2. Which Operation / products / departments etc. are more profitable or loss making and why?
  3. Help Organizations to understand details of its indirect cost and its impact. Which in turn would point to suggestive actions that could reduce cost and increase profit margins.
  4. What worked well for customers in prior periods and can that be extended to other regions / products / departments as well and so on.....

Great, so you have decided to get answers for above questions. Next comes another question should you go ahead with an on premise Hyperion profitability and cost management (HPCM) or a Profitability and cost management cloud solution (PCMCS).

This would require you to understand the areas of differences which is not just limited to license cost but compares available modules, functionalities, reporting, infrastructure, data integrations, Automations and many other areas.

In part 1 of this blog we would look at 2 major areas i.e. HPCM and PCMCS architecture:

  1. What is included and what's not?
  2. Modules that are part of HPCM and what's available in PCMCS?

HPCM Architecture:

PCMCS Architecture

Components that are part of HPCM and PCMCS License:


HPCM

PCMCS

Essbase BSO (Standard profitability)

Essbase ASO

Essbase ASO (Standard profitability, Management Ledger)

Smart View

Relational Database (Detailed Profitability)

Hyperion Financial Reporting Studio

EAS Console

EPM Automate 

Performance Management Architect

Data Management

Smart View

 

Hyperion Financial Reporting  Studio

 


HPCM customer has an option to choose from 3 modules: Standard Profitability, Detailed Profitability and Management Ledger. 

Standard Profitability

  • To be used in case customers have highly complex allocation logic with data moving across many dimensions before being finally allocated.

  • Indirect costs are a big part of overall cost and needs many drivers to for final allocations.

  • This Module consist of a calculation Database(BSO) and a Reporting database(ASO). 


Detailed Profitability

  • For the cases where allocations are straightforward but data and metadata is very high. It provides a single step allocation for analyzing profitability.

  • Data is stored in RDBMS. 


Management ledger Profitability

  • Management Ledger module combines the features available in Standard and Detailed profitability providing a model that allows for high metadata granularity and medium complexity.

  • Data storage is in ESSBASE ASO


In PCMCS we have only one module available i.e. Management Ledger.


PCMCS Module


  • In current version of PCMCS only Management Ledger module has been provided. This allows for high data and metadata granularity as well as allocations via Rules and Rule Set

  • Management Ledger applications are designed for business users with deep knowledge of allocation process and limited scripting knowledge

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