The main objective of implementing Oracle Profitability and Cost Management in the Oracle EPM On-premise environment at a university was to provide a comprehensive solution for measuring the profitability of the institution's different business segments. These segments include academic programs, faculties, and university locations. The project sought to address the need for greater financial visibility to make strategic decisions based on the profitability of each segment.
One of the key objectives was to automate the integration of accounting data sources and operational drivers, in order to simplify the execution of revenue, expense and cost allocation rules. This automation was designed to improve efficiency and reduce manual processing time, while providing a solid and accurate basis for financial decision making.
In addition, the challenge was raised that functional users could autonomously manage the cost model, without depending on technical areas, thus allowing greater agility in the management and simulation of scenarios.
Following the implementation of Oracle Profitability and Cost Management, several key achievements were achieved that have had a positive impact on the university's operation:
Generation of detailed financial reports : The implemented solution allowed the creation of dynamic reports that offer a clear and precise evaluation of the profitability of academic programs and courses for each location. This information has been crucial for the university in making decisions about opening new programs, improving the existing academic offering, and optimizing resources in less profitable areas.
Empowering functional users : One of the biggest advantages of the new system is that users in the financial and cost areas can now manage and maintain the cost model without relying on technical support. This has facilitated greater flexibility in updating models and experimenting with different cost and profitability scenarios, reducing response times and allowing the university to be more proactive in decision-making.
Distribution Rules Optimization : A significant 92.5% reduction in the number of rules used to distribute revenue, expenses and costs was achieved, thus simplifying the model and improving its efficiency. This result translates into increased processing speed and easier system administration, allowing users to focus on analyzing results rather than managing the complexity of the model.
Inclusion of new business segments : As part of the continuous improvement of the system, new segments were integrated into the distribution of costs and profitability, which allowed the university to carry out a more detailed and precise analysis. This has allowed them to identify opportunities for improvement in areas that were not previously being evaluated in the same depth.
Data-driven decision making : The automation and detailed analysis provided by the solution have strengthened strategic decision making at the university. With reliable and timely information, managers can identify profitability and cost patterns, allowing for more accurate planning aligned with financial and academic objectives.
The implementation of Oracle Profitability and Cost Management has transformed the way the university manages and analyzes its profitability, streamlining processes and providing a robust platform for financial planning and analysis. The solution has not only improved operational efficiency, but has enabled the university to be more agile and responsive in its strategic decision-making.