Learn about Thermo Fisher's journey with Oracle Cloud Services to help a fast-growing, global organization standardize its planning and reporting across businesses: Rollout a common set of financial, headcount, and initiative planning tools Balance the needs of Corporate and Divisions in a centralized system Learn how Oracle Cloud EPM and on-premise Hyperion tools work together: Oracle EPM Planning, Master-Data Management, Financial Data Quality Management Enterprise Edition (FDMEE) Create traceability for corporate and divisional allocations using Oracle's Profitability and Cost Management Cloud Service (PCMCS)

1. November 14, 2019 Northeast Joint Oracle User Group Meeting
Learn how Alithya and Thermo Fisher
Scientific are Working Together to
Achieve Financial Excellence with
Oracle EPM!
David S. Pabst, CPA PMP @datapabst
Alithya, Inc.
Caroline Stenpeck
Thermo Fisher Scientific, Inc.

2. AGENDA> Speakers
> Business Case
> Challenges
> Opportunities
> Guiding Principles
> Balancing Needs
> Solution
> Current Systems
> Bring on the Cloud!
> The Voyage
> How did we do it?
> Benefits Achieved
> Cool Stats!
Learn about Thermo Fisher Scientific's journey with Oracle Cloud
Services to help a fast growing, global organization standardize its
planning and reporting across businesses:
• Rollout a common set of financial, headcount, and initiative
planning tools
• Balance the needs of Corporate and Divisions in a centralized
system
• Learn how Oracle Cloud EPM and on-premises Hyperion tools
work together: Oracle EPM Planning, Master-Data
Management, Financial Data Quality Management Enterprise
Edition (FDMEE)
• Create traceability for corporate and divisional allocations
using Oracle's Profitability and Cost Management Cloud Service
(PCMCS)

3. – Lived “it” - Former financial systems manager for
two, public $BBB growing orgs
– Certified Public Account (CPA)
– Project Management Professional (PMP)
– Financial Planning, Analytics, and Data Expert
– datapabst.com
3
@DataPabst
David S. Pabst, Practice Manager, Alithya
@PabstD

4. – 8+ years experience in corporate finance
– 6+ years experience in financial systems
– Experienced Hyperion Planning administrator
– Project Manager for EPBCS rollout
– Boston, MA
4
Caroline Stenpeck, Senior Manager,
Thermo Fisher Scientific
caroline-stenpeck

5. ABOUT THERMO FISHER
SCIENTIFIC

6. 6
Comprehensive Business Solutions
Alithya’s solutions drive improved business
performance through better decision making, strong
customer engagement, and optimized operations
Deep Partnership Drives Customer Value Adaptable Deployment Models
Diverse Client Portfolio & Industry Expertise
RetailEnergy/
Utilities
Team Highlights
Multiple
Oracle ACEs
Seasoned
delivery team
with avg 8
years serving
clients
Experienced
management
team with avg 15
years in the
company
Certified Cloud
Resources
Enterprise Performance
Management (EPM)
Analytics
Financial Services
Technology CPG and
Manufacturing
Healthcare
Outstanding
Achievement
in Big Data
100 Most Promising
Big Data Solutions
Providers
ALITHYA OVERVIEW

7. NEW ENGLAND JOINT ORACLE USER GROUP MEETING − November 14, 2019
THE BUSINESS CASE

8. BUSINESS DRIVERS
> Thermo Fisher Scientific’s Fact Sheet
> Revenue growing faster than G&A
> Processes need to scale – historically a very acquisitive company
> Need to support planning, forecasting, and reporting for the world’s leading Life Sciences Company
> Various business models and go to market strategies
> Varying levels of financial and systems maturity
> Need to standardize & optimize on the basics
> Provide flexibility for different businesses to run their own shops

9. CHALLENGES
Disparate systems
within divisions
Broken and/or
unsupported
systems
Varied allocation
models/processes
Excel dominant
tool managing
processes
Manual activities
prevalent at all
levels
Corporate
allocation process
‘offline’
Long and complex
overall planning
cycle

10. OPPORTUNITIES
Budget and forecast
compensation
expenses by cost
center
Fringe / benefits
planning based on
common US & Non-
US methodologies
Provide a common
budgeting process
and solution to
ultimately support
all Divisions
Incorporate the
department/cost
center concept into
the Divisional
budgeting and
forecasting process
Automate load of
budget into Corporate
Essbase tool to
facilitate internal
budget reviews and
Corporate
consolidation

11. OUR CONSTITUTION!
GUIDING PRINCIPLES
1. EPM Planning will be implemented to support AOP
development and forecasting in such a way as to
allow all Thermo Fisher divisions the opportunity to
utilize the system in a similar streamlined form.
2. Modules will be designed to accommodate the
various business models for Gross Margin, while
maintaining discipline of standard formats and
processes.
3. Individual operational challenges that divisions may
have are not in scope for the initial rollout of EPM
Planning. Teams with such challenges may work with
Corporate to develop future projects to assist with
operational management.
4. Headcount Planning, Op Ex, Working Capital, and
Initiative Planning modules will be developed with
standardized processes and workflows, including
allocation methodologies, designed to simplify and
streamline the way these components are budgeted
for and forecast across the company.
5. Data warehousing needs of individual units are not in
scope for the core project, but may be kicked off by
Divisions that deem them necessary to the overall
success of their use of the tools. Those projects,
while connected in principle to the EPM Planning
project, will be separate in scope, cost, and
execution.

12. BALANCING NEEDS
The challenges, opportunities, and guiding principles effectively created a balanced approach:
> Build a common platform that can be shared across all BUs – create a shared, common process for the
80% that’s common
> Provide planning & forecasting capabilities to everyone at the present level of actual data – may not be
at cost center for everyone
> Allow business units to build BU-specific, operational planning processes
> Allow business units to define their own detailed department reporting & planning structures (e.g.,
some are functional, some are detailed, some are summarized)
> Avoid gold-plating – if people use the basics, we can always build more

13. Source feeds into the base
members for detail level reporting
Thermo
Fisher
Modular Components
Entity/PL/BU/Division
Reporting
Multiple iterations of modules, designed to accommodate various business models
Expandable – as needed for organizational growth
Shareable between units – mix & match as needed
Standardization Line
HFM & Essbase
Operational Planning Solutions
Department Level
Financials
Headcount
Initiative
More Detailed (SKU,
Client, Warehouse)
BU Specific
Consolidated
“Book of Truth”

14. NEW ENGLAND JOINT ORACLE USER GROUP MEETING − November 14, 2019
THE SOLUTION

15. CURRENT SYSTEMS
> Thermo Fisher Scientific consolidates its internal & external financials using:
> Hyperion Financial Management (HFM)
> Financial Data Management (FDM Classic)
> Financial Data Management Enterprise Edition (FDMEE)
> Data Relationship Management (DRM)
> Corporate Management Reporting (CMR) Essbase ASO for Global Reporting
> 160+ ERPs, 1500+ Legal Entities, 47 currencies
> 2000 global users
> 24 x 7 support

16. BRING IN THE
CLOUD!
> Oracle’s on-premises tools maintain the
source of the truth for data and metadata
across the organization.
> The Oracle EPM cloud provides the flexibility
to scale as the business grows
> Oracle EPM Planning
> Oracle EPM Profitability & Cost Management

17. Gray

18. PLANNING FEATURES
Enterprise-wide P&L planning framework
Enterprise-wide actuals at go-live
Global reporting across hundreds of users
Department (“Cost Center”) level planning
Automated trending & forecast seeding
Currency translation and normalization
Additional plan cycle processing capabilities

19. Financials
Planning
Revenue
Direct COGS
Operating Expenses
Intelligent modeling
Standardized framework
Initiatives
Collection
Replace excel request
process
Workflow process for
approved/denied
initiatives
Scalable to handle CapEx
and Depreciation
Headcount
Planning
70,000+ employees
Department averages
model – no named
employee or job title
Compensation Expenses
Benefits & Taxes
Business Unit
Operational
Models
Division-specific
Integrated Warehouse
Staffing model
Division-specific
Commercial Revenue
model
PLANNING APPLICATIONS

20. ACTUALS IN THE CLOUD
> Automated Reconciliations
> 100% of Thermo Fisher’s Actuals for all Business Units upon going live
> Actuals drawn from HFM & Essbase by Entity & Management P&L
> Business units can source, load, and validate Department level actuals on their own timeline
> System reconciles department level data to “source of truth”
> Significant effort for Business Units to source department level data from 1,500+ entities, 160+ ERP’s
> Everything from QuickBooks to multiple versions of SAP, JDE, etc.
> Need to define planning cost-center structure in parallel

21. ALLOCATIONS IN THE CLOUD
> Need to align planned department expenses to fully-allocated management P&Ls (called “Product
Line”)
> All Business Units and Corporate Functions act & transact differently - some plan pre-allocated, some
plan post-allocated, and everything in between
> Need to get to P&Ls by Department, Legal Entity, Function, and Product Line for every level of the
business
> Allow business units to define their own rules
> Use Data Relationship Management (DRM) to manage rules where possible (where rules are clear)
> Allow BUs to manage their allocations via Oracle EPM Cloud forms where they are BU managed

22. • Departments either:
– Assignable Department:
– Allocable Department:
– Department to Department Sender:
• Allocable Dept to Cost Pool
– If allocable Department, assign common
departments to a Cost Pool. Cost Pools
share allocation rates to Product Line.
• Cost Pool to Product Line
– Expenses at C2None for Cost Pool allocate
to Product Line
• Product Line to Product Line
– Frequency: Inter-division run daily,
Corporate allocation run at checkpoints
during budget cycle
ALLOCATIONS PROCESS FLOW

23. NEW ENGLAND JOINT ORACLE USER GROUP MEETING − November 14, 2019
THE VOYAGE

24. HOW DID WE DO IT?
> Excellent teamwork!
> Most important: Sponsor with a Big-Hairy-Audacious-Goal (BHAG)
> Up-front visioning sessions around planning process that everyone could live with (e.g., let’s get the 80%
that’s common correct)
> Let the Business Units run at their own pace sourcing data and defining department structures
> Agile, iterative, development process 8 weeks; weekly show & tells, conference room pilot, and user
acceptance testing
> Program with multiple sub-projects
> Executive Steering Committee
> Program Management Team
> Track Leaders

25. Phased Rollout
 Instrument Manufacturing
 Instrument Services
 Long Cycle Instrument
Manufacturing
 Contractual Manufacturing
 Prime Margin Revenue and
Standard Cost Model
BusinessModelRequirementsProjectExecution
 Distribution
 Instrument Manufacturing
 Instrument Services
 Chemical Reagents
 Operational Staff Model
 Diagnostic Services
 Additional Business Model
Specific Needs to be
Addressed In Analysis
Phase 1 Phase 2 Phase 3
 Build = 8 weeks
 Conference Room Pilot = 1 week
 User Acceptance Testing = 4
weeks
 Rollout = 6 weeks
 Training = 8 weeks
 Iterative Build = 12 weeks
 Show & Tells = 12 weeks
 Rollout = 6 weeks
 Training = 8 weeks
 TBD
Phase 1 Phase 2 Phase 3
And
Beyond

26. 25 MONTHS IN…
> Process began in October 2017
> Lived first annual planning cycle in 2018 ~ 400 users
> In the midst of our second annual planning cycle ~ 800 users
> Two-thirds of the company is integrated at the department level, 100% of the company at the
summarized Legal Entity and Product Line level
> Balancing optimization, integration, and continued business-facing enhancements
> Approximately 90% of total company revenue is currently utilizing the solution, next steps are to bring
the remaining 10% into the platform

27. BENEFITS ACHIEVED
> Cloud-based platform integrated with Corporate “book of truth”
> Offloading BU-users from Corporate applications to the Cloud environment for day-to-day reporting &
forecasting needs
> Standardized tools across Finance makes it easier for people to move internally & ramp-up
> Enhanced granularity for planning, reporting, and analysis
> Easily accessible – multi-currency, multi-language, cloud-based

28. LESSONS LEARNED
#1 Asking each BU to define their cost center structure, aligned to the existing “view” is
a big ask!
> Essentially asking -> “How do you want to run your business?”
> Iterative & time consuming
> Does not necessarily exist pre-EPM Planning rollout
> Business leads in each BU need to work with their management to operationalize
> Need to source department level actuals from many different ERPs globally, map, load, validate

29. LESSONS LEARNED
#2 Getting people to agree on a common reporting, planning, and forecasting
approach for the “middle of the pyramid” – what is the 80% everyone can agree to?
> What are a reasonable set of trend methods that can be used to seed a forecast?
> Do we plan in USD and convert to local currency, or do we plan in local currency and convert to USD?
> Do we do headcount planning with named heads or number of people in a department?
> Do we plan department expenses on a pre-allocated or post-allocated basis?
> Can we all agree on how many months of actuals we can seed into a monthly forecast?

30. LESSONS LEARNED
#3 A fun one - since the organization had not defined a “department” structure
before…
> The project team had to explain what a department is….!
> SAP has profit centers and cost centers – e.g., confusing
> Some smaller BUs do not have the concept – e.g., segregate by specific accounts or products
> “Something more detailed than a Legal Entity”

31. COOL STATS
800 users
10 production cloud
instances
400 FDMEE
locations converted
to date to include
department data
60,000
departments
10,000 Smart View
retrieves per day
47 foreign
currencies
15 countries

32. November 14, 2019 Northeast Joint Oracle User Group Meeting
Q&A
Share comments on this session when completing the online conference evaluation.
David S. Pabst, CPA PMP @datapabst
Alithya, Inc.
david.pabst@alithya.com
Caroline Stenpeck
Thermo Fisher Scientific, Inc.
caroline.stenpeck@thermofisher.com