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Overview

Overview of In-Memory Cost Management Cloud Service

Oracle In-Memory Cost Management Cloud Service provides tools for a full approach to maximizing planning costs and profit margins by enabling near real-time insight into all aspects of cost management in Discrete Industries and Process Industries. In-Memory Cost Management Cloud Service's extreme performance is possible because of the technical innovations.

Cost accountants, finance, and operations managers can use In-Memory Cost Management Cloud Service to quickly perform what-if simulations on complex cost data and instantly visualize the impact of changes to their business. Specifically designed and optimized for Oracle In-Memory technology, In-Memory Cost Management Cloud Service provides a suite of solutions to perform complex cost analyses, identify optimal profit margins, and perform cost planning and forecasting so that companies can make decisions in time to capture the highest possible profits, safeguard current margins and identify optimal future margins, streamline financial overview across the supply chain, and increase financial close efficiency.

When analyzing large volumes of data and performing complex queries from multiple tables, performance can be severely degraded using traditional disk based technology. Businesses require faster access to information to make reliable decisions for their organization. In-memory processing enables organizations to have immediate access to simulation results and improve query performance by using multidimensional databases, or data cubes (multidimensional extensions). This enables businesses to adapt to continuously changing market needs to efficiently manage the supply chain. Oracle In-Memory Cost Management Cloud Service uses the following architecture and technical systems:

• Oracle Database 12c Database In-Memory Option delivers extreme performance for all types of database workloads including Online Transaction Processing (OLTP), Batch, and consolidation of mixed workloads.

• Oracle Smart View provides a common interface designed for In-Memory Cost Management Cloud Service enabling you to view, import, manipulate, distribute, and share data in Microsoft Office Excel. The Smart View Provider servlet is deployed in WebLogic server which interacts with the Cost Management Engine through Java Cloud Service (JCS).

• Oracle Analytics Cloud Service delivers a set of tools for reporting, query and multidimension analysis, online analytical processing, and dashboards.

In-Memory Cost Management Cloud Service provides a set of tools leveraging cost planning, cost impact simulations, profit analysis, and cost comparisons.

• Cost Planning and Cost Plan Analysis

  Oracle Cost Planning provides a set of features that accurately assess all costs in a business. You can define enterprise-wide cost scenarios using cost plans that let you analyze costs derived from external parameters and historical trends. Cost plans trace all costs allocated to products using allocation rules and cost drivers. Cost Planning data is analyzed for item, overhead, and resource costs, which you can then view on Smart View worksheets and on Oracle Analytics Cloud dashboards. Results can be moved to the Oracle Analytics Cloud Service dashboards. See: Overview of Cost Planning Cloud Service and Overview of Cost Plan Analysis

• Cost Impact Simulator (CIS)

  Simulations show the impact of product cost variations from bills of materials, routings, resources, overheads, formulas, and recipes. The Cost Impact Simulator is used for analyzing the impact on inventory, WIP, in transit, cost of good sold values, and gross profit margins originating from cost changes to items, resources, and overheads. You have the ability to perform comprehensive what-if analysis on complex multi level bills of materials, routings, formulas, and recipes in near real-time. The CIS tool replaces the manual labor intensive process of translating the impact of cost changes into the price list. You can investigate the impact of a cost change by identifying the cost components and supplying their new costs; the tool then provides you with the all of the items affected by this change and provides the new costs for these items. See: Overview of Cost Impact Simulations

• Gross Profit Analyzer (GPA)

  The Gross Profit Analyzer enables you to evaluate profit and do multi-dimensional analysis on current and future gross margins and gross profits. The Gross Profit Analyzer uses Analytics Cloud Service (ACS) technology to provide this capability. There are two functional flows for invoking the Gross Profit Analyzer:

  • You can navigate to the Gross Profit Analyzer to analyze the impact of costs derived from cost plans.

  • Invoke the dashboard after simulating a change in cost in the Cost Impact Simulator.

  See: Overview of Analyzing Gross Profits

• Cost Comparison Tool

  The comparison tool provides detailed cost elemental comparison and deviations across entities and multiple locations. Cost changes impact product margins and price. You can investigate deviations and take corrective actions to mitigate cost overruns. You can compare cost structures, cost based bills of material, routing costs of finished goods, recipes, and formulas in a side by side view. See: Overview, Searching, and Viewing Costs for Comparisons