PUBLISHED JULY 2, 2021

Why OneStream’s Analytic Blend is Revolutionary

By Priya Advant

Principal Consultant, B-EYE APAC

In this pandemic era, different geographies would have varied economic activities and growth trends. The C-Suite would not want to purely rely on financial analysis but would want to go a step further to have greater operational insights, that too by geographies. Key-factor decisioning plays a vital role in financial and operational risk management.

 

Here are some of these key factors:

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To know more about key-factor decisioning, you may go through one of our blogs, Finance Leaders Can Manage Risks Through a Balance Sheet Focus, click this LINK.

Imagine a platform that can provide transaction level analysis of these factors at the corporate level.

 

Also, do you agree that it would be helpful if you can get an overview of the following:

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From a consolidated level, the ageing analysis of local customers at the click of a button across all the entities, aggregated?

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Financial analysis/ categorization of vendor payables aggregated at the regional as well as corporate level.

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By region, the visibility over inventory items, including SKUs, and whether it is fast/ slow moving.

This will help you to manage risks better and get deeper insights into operations, in turn allowing organizations in taking effective and timely operational as well as strategic decisions.

 

The OneStream platform provides a unique “blend” of governed analytical capabilities ranging from Financial Consolidation – to Data Aggregation – to Transaction Analysis in one single platform.  This ability to support all three types of data in one platform is ground-breaking.  OneStream intelligently brings together CPM, Financial Analytics, BI, Operational and other transaction-level data for comprehensive analysis and visualization directly within one application, using the same data integration and preparation, guided workflow, and reporting tools.

 

Let us take an example of a global manufacturing organization. The organization wants to develop an operational risk strategy at the global level to ensure that its key factors are within acceptable parameters. How do we go about achieving this in OneStream? Once you have the corporate cube already in place with the required business dimensions with the relevant financials and operational data, we can do the following:

1

Load the transaction/ invoice level data in OneStream using attributes – AP, AR, Inventory, Fixed Assets Sub-Ledgers

2

Identify the dimensions across which an aggregated view as well as transactional view is expected such as entities, or other relevant dimensions

3

Use the Analytic Blend workflow to store the transactional data in BI Blend Tables

Now that we have the transaction-level data in the BI Blend tables, how will it tie to the cube data and develop a Global Risk Report?

 

  • The invoice-wise information at local customer/ supplier level would be classified into various categories and ageing, such as Goods damaged, Goods shipped but not invoiced, receivables outstanding for more than 90 days above a certain amount etc.

  • These classification buckets would be part of the financial cube.

  •  Based on this classification, action items would be determined at regional level, where this information is aggregated.

  • This would be then mapped to a global customer/ supplier, paving way to a global action plan based on materiality. This would help determine which customer/ supplier to let go or to focus on building relationships.

  • A drill back from the aggregated data to the source would provide visibility at the base level.

Another situation would be where the management wants to take a decision on increase / decrease in production capacity. A detailed analysis of raw material spend by top 10 vendors, raw material mix, manufacturing facility spend by regions would be crucial. The inventory transactional data could provide deeper insights as shown in the dashboard below:

Another view is the entity wise customer risk analysis. Here, the risk category is derived from the ageing of customers. This would help in determining a business strategy by region/ by customer.

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In short, OneStream’s Analytic / BI Blend is a “read-only” aggregated storage model designed to handle the reporting of larger datasets. It has the capability of loading millions of records in a short duration, providing key analysis to the C-suite from the millions of financial transactions.

 

The aggregation of transaction level data at parent level is a capability that overcomes the hurdles faced by the C- suite in analysing data at the lowest level. The Bi-viewer dashboards on top provide a complete overview with attractive visual indications. The result is a complete package of financial reports, analytical data with pleasing dashboards.

 

To summarize, here are the revolutionary benefits of OneStream’s Analytic blend:

 

  • Acts as a decision-making tool for the CEO and CFO

    • Pulse on the issues in the business – Identify regions with overdue receivables.

    • Prioritization of risks – Analyse which risk is more crucial for business growth.

    • Ability to de-risk and agile planning  - Devise action items / plans for risk aversion.

  • Reports used by sales, purchase, production tie up with the Management Reporting produced by Finance. In an organization, it is crucial to have a single version of financial information.

  • Stream-lining the connection between non-finance and finance processes.

 

In a dynamic world that we are in, the use of OneStream’s Analytical Blend enables the key decision-makers to make truly informed, effective, and timely decisions, that build a future-ready organization.

 

- Priya