onsemi is one of the world’s leading semiconductor manufacturers and is based out of the Phoenix, AZ area. Leadership at onsemi sought to improve the accuracy of their planning processes and migrate complex allocations from a homegrown tool. EPMI collaborated with onsemi to migrate their legacy planning application (EPBCS) to Oracle Cloud EPM Enterprise Edition.
Workforce Planning
EPMI and onsemi determined that a white glove approach would deliver the highest value due to the complexities in their operations. The project teams created a custom workforce cube, which accounted for the variety in their employee base, across multiple employment types and geographic locations. The project also delivered monthly and rolling forecasts for core financial data, as well as a quarterly re-forecast for workforce metrics. This reduced variance in workforce data forecasting and increased the speed of dynamic workforce modeling. By bridging the gap between workforce and financial planning, onsemi was able to increase visibility into their new hire planning process with employee-level data from Taleo.
Financial Planning
On the financials side, onsemi sourced an increased level of transactional data, while still creating a faster planning process. Detailed data increased transparency into their subledger account data, providing greater insights into new operating groups. Additionally, they introduced a variance analysis, created a forecast, and turned on trend-based planning. onsemi also introduced a new reporting cube that provided detailed actuals from the GL and visualized the data with out-of-the-box dashboarding.
Scenario Modeling
onsemi’s implementation utilized long-term what-if scenario modeling across all financial statements. With a focus on long-range 5-year plans and revenue goal seek, onsemi is now able to create a clear vision for the future and make informed decisions based on macroeconomic conditions and financial projections. With the Scenario Modeling module, onsemi can build both bottom’s up and top down strategic plans. Given the volatility and volume of M&A activity in this industry, onsemi can now effortlessly model the impact of various acquisition scenarios.
Profitability and Cost Management
onsemi transformed their homegrown allocation solution to one of the first EPCM (Enterprise Profitability and Cost Management) implementations and introduced cost center-based allocations. These detailed allocations provided more accurate revenue and expense planning with a more accurate representation of how cost is shared across the enterprise. They also introduced driver-based allocations and new strategic modeling for long-term revenue goals and KPIs based on economic conditions.
Increased Transparency and Efficiency
onsemi leveraged cutting-edge features to empower the business for self-service automation and used the existing middleware tool to port to new enterprise applications. They improved the user experience by introducing a more robust and connected interface for ease of planning and budgeting all in one application versus siloed processes.
Overall, onsemi was able to improve their planning and budgeting processes and introduce several changes that increased transparency and efficiency.
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