2023-2024

RESEARCH
PROPOSAL
Title:
Business Intelligence and Consolidation: What Impact on the
Reliability of Financial Information?
Study case : Oracle HFM

Presented to: Proposal by:

Olugbenga Ayo
OJUBANIRE CHAIMAA BEJJA
 Introduction
In today's dynamic business environment, reliable information is paramount for effective decision-making.
According to (Wang and Madnick 1990), It has long been recognized that many factors influence the
effectiveness of decision-making. Among these are the time available before the decision must be rendered,
the experience of the decision maker, and the quality of the data needed for the decision. Although ideally,
the data used should be of high quality” Therefore, -and to ensure its sustainability and adaptability to the
continuous evolution of its environment- a group faces a double challenge:

Managing the vast amount of external and internal data to which it has increasingly easy access.
Transforming this data into useful information for the group processes and managing its actions.

This financial information must not only be powerfully built, particularly when it influences the definition
of the strategy, and must follow precise standards, but also be scalable to constantly update employees,
processes, and resources with changes.
This requirement increasingly translates into a new challenge for the groups: the need to automate their
operational processes.
According to (Srinivasan, and Anandarajan, 2004) In business, it is important to have sufficient, high-
quality information and key performance indicators (KPIs) as the basis for decisions. The biggest
problem, however, is primarily the merging of information. Many documents, spreadsheets, or databases
hide inside companies and contain a lot of relevant information that is very difficult to merge and provide
meaningful information. So, an overall holistic view is to be created, which is available as a basis for
decisions. Therefore, it is possible, for example, to optimize business processes, minimize risks, consolidate
accounts, and increase added value. Also, the use of business intelligence can become a real competitive
advantage, since the necessary information is practically available at the click of a mouse. Using Business
Intelligence has three main objectives:

Improvement of decision basis: The decisions to be taken are usually made by available information.
Thus, it is obvious that with better preparation of information as well as with the consideration of a
multiplicity of information the basis of the decision is substantially improved. Information, that is,
facts about certain things, is present on a large scale in today's businesses. The use of BI makes it
possible to translate them into a format that gives them an information advantage in their daily work.

Increasing the transparency of corporate actions: With the help of BI, the employee should be enabled
to take responsibility for his area through facts and operating numbers and to be able to understand
company decisions. BI provides the opportunity to enhance that visibility and empowers employees to
see their area's impact directly in the enterprise context.

Demonstrate the relationships between solitary information: Due to the complexity of business
processes, decisions in many areas of companies have far-reaching consequences. The BI solutions aim
to link data from different sources and to recognize relationships that cannot be obtained from
individually considered sources of information. This is the knowledge component of BI, which should
be carried out by absolute professionals in the relevant field, as generating such information increases
the transparency of the entire process within companies.
Aware of its challenges and the role that business intelligence can play, companies, regardless of their
sector of activity, started opting to implement business intelligence tools that for example, highlight their
overall functioning and performance, collect, and manage their data, and consolidate their accounts to
provide an actual picture of the group's economic performance reality.
According to (Anandarajan, Srinivasan, and Anandarajan, 2004) “The term Business Intelligence (BI) was
introduced by Gartner Group analyst Howard Dresner in the middle of 1990s and defined as a collective
term for concepts and methods that support decision-making through information analysis, delivery, and
processing. BI has become widespread in business practice and science and is widely used.”
Although business intelligence solutions are seen as major investments for large companies. In the
following, the solutions of the larger providers are presented briefly:
·SAP The German software provider SAP has been a market leader in Germany for years and
internationally at BI-Software. "SAP BusinessObjects Edge" offers a comprehensive and powerful business
intelligence solution. The product includes features for different BI needs: flexible ad-hoc queries and
analytics, dashboards and visualization, data integration, and pre-configured data smart solutions.

·Oracle The "Business Intelligence Standard Edition one" of the Oracle BI system is geared to the needs of
companies. As a complete solution, this is designed for five to fifty users. Comprehensive features such as
interactive dashboards, ad-hoc analytics, proactive intelligence and insight, and advanced reporting and
publishing mobile and predictive analytics are included in the solution.

Business Intelligence (BI) tools, such as Oracle HFM, play from now on a crucial role in consolidating and
reporting financial data, making large companies' processes manageable and uncomplicated. This
proposal aims to suggest a business intelligence tool that a group can implement in their consolidation and
reporting process, nevertheless investigating the impact of this digitization on the reliability of financial
information provided by this BI tool.
 Problematic Statement:
“Almost every business can benefit from the use of business intelligence, but there are not always the right
conditions to successfully implement business intelligence. It’s not just about the technical prerequisites to
be able to access the relevant databases, but also questions of corporate culture and the way in which
business intelligence is approached. Essentially, the three requirements for BI can be represented as follows:
Willingness to make things in question: BI offers the opportunity to challenge things that have been in the
business for a long time. It is possible to analyze changed structures, to create new information
combinations, and to simply look at changes on suspicion. If the basic structure of the information is well-
structured, regarding both the technical conditions and the organization of the data, this offers a wide field
of confirmation.
Willingness to think unconventionally: Business Intelligence creates entirely new insights. These must be
explicitly allowed to take into account things that might at first glance be considered nonsensical or
unrelated.
Management Attention: From the first two points, realize that BI projects have to take one or the other
way to be successful. However, this also means that the management also accepts this. It is very
administrable for BI projects if they are provided with the appropriate support from the responsible
management, this significantly increases the acceptance and willingness to participate in such processes.
(Azeroual & Theel, 2018).

In terms of consolidation, a necessary step in the production of financial statements for groups of
companies, handling "inter-company" transactions can be laborious due to the considerable number of
ownership relationships and commercial transactions between the various entities working on the
fragmented production of a single product or service. This complex and challenging process of reconciling
this information demands resources, time, and intellectual effort that could be used for more rewarding
tasks.

It is therefore important to consider the development of digitization and see how it can serve a group to
improve, automate, and ensure the reliability of this process of reconciling "inter-company" transactions
and draw useful insights for a group. Fortunately, information technology is increasingly developing and
providing valuable assistance in addressing several imperfections, including storage capacity, computing
power, and optimizing information transmission. Data can now be stored in a virtual or physical location
or even in the cloud, allowing access from anywhere in the world and, consequently, at
However, the decision-making process surrounding the selection of an optimal BI tool remains a critical
challenge, as companies navigate through numerous options to find a solution that best fits their unique
requirements. Hence, the primary objective of our research is to identify and recommend a BI tool
adapted to the specific needs and objectives of companies engaged in financial consolidation and
reporting. This recommendation will be accompanied by a comprehensive guide detailing the
implementation and utilization of the selected tool, empowering organizations to leverage digital
transformation effectively. Additionally, our study will delve into the impact of this digitization initiative
on the reliability of financial information. By rigorously evaluating the chosen BI tool's efficacy in
enhancing data accuracy, consistency, and integrity. The questions that arise therefore are :

What BI tool to use for consolidating the group accounts?

How to use this Tool?
and whether they contribute to improving the quality of daily information and enhancing its reliability?
 Objectives:
In this research, we aim to shed light on the crucial role that business intelligence (BI) tools can play in
revitalizing company processes, leading to time, energy, and cost savings. As the utilization of such tools
has become indispensable in today's fast-paced business environment, we aspire not only to propose a
suitable BI solution but also to address the legitimate concerns that companies may have regarding the
treatment of their financial information within such systems. We recognize the significance of ensuring
data reliability; therefore, a significant portion of our study will focus on investigating the impact of
implementing these tools on information integrity.

The BI tool at the center of our investigation is Oracle Hyperion Financial Management (HFM), a web-
based financial consolidation application renowned for its solid reporting capabilities. Nestled within the
Oracle Hyperion Enterprise Performance Management (EPM) suite, HFM caters to the needs of large to
mid-sized global organizations seeking streamlined solutions for translation, intercompany eliminations,
and swift consolidation of financial data. Noteworthy advantages of HFM include its scalability, web-
based accessibility, and refined maturity cultivated over years of development. Successful HFM
implementations often lead to shortened financial cycles and demonstrable cost savings, underscoring its
appeal as a finance-centric solution managed autonomously by IT departments.

Through our case study, we aim to achieve the following objectives:

1. Point up the complicated process of consolidating a group account.

2. Present HFM as a well-developed, mature BI solution poised to simplify the process of consolidation
and enhance the holding's performance.
3. Provide a detailed guideline on how to utilize this tool effectively.
4. Evaluate the efficacy of Oracle HFM in safeguarding the accuracy and consistency of financial data
throughout the consolidation process.

Timetable
 Literature Review:

For this research, we conducted a comprehensive review of existing literature encompassing various
research articles and conference papers that delve into the implementation of Business Intelligence (BI) in
large companies, particularly focusing on its role in the consolidation of their accounts. One recurring
theme that emerges from our review is the pivotal importance of aligning BI with decision-making
processes, as highlighted by Clark, Jones, and Armstrong (2007). Despite this recognition, it is evident
that many organizations are yet to fully realize the potential success of BI initiatives (Hostmann,
Herschel, & Rayner, 2007).
BI capabilities serve as fundamental enablers for organizations, enhancing their adaptability to change
and overall performance (Watson & Wixom, 2007). However, the successful adoption of BI hinges on
achieving alignment between organizational BI capabilities and objectives. Organizations that have made
significant strides in BI implementation have prioritized ensuring that their BI strategies are in harmony
with their corporate objectives (McMurchy, 2008). Yet, there remains a gap in understanding the specific
role of BI capabilities in facilitating this alignment.
While there is a wealth of literature addressing various aspects of BI capabilities, scant attention has been
paid to their role in achieving the crucial alignment between BI and the decision environment within
organizations. Nevertheless, numerous success stories in BI implementation underscore the significance of
leveraging BI capabilities effectively and aligning them with organizational objectives (Schlegel & Sood,
2007).
Oyku et al. (2012) offer a dual perspective on BI, examining it through both organizational and
technological lenses. Technological BI capabilities encompass aspects such as data quality, technical
integration with organizational systems, and user access. On the other hand, organizational BI entails the
organizational assets that support BI applications, including flexibility and shared risks and
responsibilities (Ross, Beath, and Goodhue, 1996). This multi-faceted approach provides a
comprehensive framework for understanding the complexities of BI implementation within
organizational contexts.
While extensive research exists on the use of Business Intelligence (BI) tools like Oracle HFM in financial
consolidation, it's important to note that many companies especially in Morocco still rely on traditional
methods for their consolidation processes. Previous studies have highlighted the benefits of BI-driven
consolidation, such as automation, standardization, and data integrity. However, not all organizations
have adopted these advanced technologies.
Companies using traditional methods face challenges like manual data entry, spreadsheet-based
processes, and decentralized data sources. Although the literature on traditional consolidation methods
may not be as extensive, there remains a gap in understanding the comparative effectiveness of BI tools
like Oracle HFM versus traditional approaches or other BI tools in ensuring the reliability of financial
information.
In this research, we aim to conduct a comprehensive review of existing literature to contextualize our
study within the huge world of BI, financial consolidation, and information reliability. This review will
focus on studies exploring the role of BI tools in enhancing information reliability, empirical
investigations into Oracle HFM's efficacy, and theoretical frameworks guiding the assessment of data
integrity in BI-driven processes.
 Methodology:

This study adopts a mixed-methods approach, integrating qualitative and quantitative techniques to
comprehensively explore the impact of BI tools, such as HFM, on information reliability. Employing a
case study methodology, we will dig deeply into the experiences of organizations utilizing Oracle HFM
for financial consolidation. Data collection will include interviews, surveys, and direct observation of
consolidation processes.
The primary objective of our empirical study is to assess the tangible impact of automating reporting and
consolidation processes on information reliability. To this end, qualitative research will be conducted
through face-to-face and semi-structured interviews. Target participants include consultants and project
managers at 'NewReport,' where I am completing my internship. Additionally, online interviews will be
conducted with consolidation experts, including professors from ISCAE, ENCG, and Euromed Business
School, as well as professional auditors experienced in auditing consolidated accounts using information
systems, Moreover, we are going to take online courses about consolidation and Bi tools to combine with
the training provided by the company of the internship .
 Initial Plan

Introduction

I. Theoretical Part

Chapter 1: Theoretical Foundations of Financial Consolidation

Section 1: Historical Background and Context of Financial Consolidation

Section 2: Theoretical Basis of Financial Consolidation

Section 3: Methods and Tools of Financial Consolidation

Chapter 2: Business Intelligence

Section 1: Historical Evolution of Business Intelligence

Section 2: Applications of Business Intelligence in the Financial Domain

Section 3: Advantages and Challenges of Business Intelligence Implementation

Chapter 3: Business Intelligence and Financial Consolidation: What Relationship?

II. Empirical Part

Chapter 1: Research Methodology

Section 1: Company Presentation

Presentation of Newreport consultancy firm

Services offered by the company in the field of consolidation and reporting.

Importance of customer retention in the overall strategy of the firm and its implications on service quality

Section 2: Research Problem and Objectives

Introduction to the research problem and description of the study context

Research objectives

Data collection and analysis methods (interviews, questionnaires, document analysis...)

Chapter 2: Evaluation of Results

Section 1: Analysis of the Impact of BI Integration in Consolidation Processes

Section 2: Recommendations and Perspectives

Conclusion
 References
Anandarajan, Murugan, Asokan Anandarajan, and Cadambi A. Srinivasan. Business intelligence
techniques: a perspective from accounting and finance. Springer Science & Business Media, 2004.

Azeroual, Otmane, and Horst Theel. "The effects of using business intelligence systems on an excellence
management and decision-making process by start-up companies: A case study." arXiv preprint
arXiv:1901.10555 (2019).

Clark Jr, Thomas D., Mary C. Jones, and Curtis P. Armstrong. "The dynamic structure of management
support systems: theory development, research focus, and direction." MIS Quarterly (2007): 579-615.

Hostmann, B., G. Herschel, and N. Rayner. "The evolution of business intelligence: The four worlds."
Retrieved from Gartner database (2007): 122-141.

Watson, Hugh J., and Barbara H. Wixom. "The current state of business intelligence." Computer 40.9
(2007): 96-99.

Allan, Sarah E., et al. "Inducible reprogramming of human T cells into Treg cells by a conditionally
active form of FOXP3." European journal of immunology 38.12 (2008): 3282-3289.

Schlegel, Kurt, and Bhavish Sood. "Business Intelligence Platform Capability Matrix." Gartner
Research (2007).

Heang, Rasmey. "Literature review of business intelligence." (2017).