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Anadarko Uses Hyperion MDM to Manage 97,000+ Member Dimensions

  • April 01 2007, 1:00am EDT
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REVIEWER: Patty Ballard, planning systems manager for Anadarko.

BACKGROUND: Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2005, the company had 2.4 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies.

HARDWARE PLATFORMS: Production server: ProLiant DL580 G3, Quad Xeon 3.4GHZ processors, 4GB RAM; Test server: ProLiant BL20p G3, Dual Xeon 3.2GHZ processors, 4GB RAM; Desktop: Various HP models running Windows XP.

PROBLEM SOLVED: Anadarko managed its master data manually. The financial dimensions and hierarchies were maintained by two individuals within the legacy financial system and two more people within Hyperion Essbase. The process was redundant, costly and had room for human error. In July 2006, the company implemented SAP. Managing data became even more challenging because there was no easy way for Anadarko to manage its hierarchies within SAP in sync with the Hyperion deployments. The need for a robust data management solution had become critical.

PRODUCT FUNCTIONALITY: Anadarko maintains a complex hierarchy of 97,000+ cost centers (wells, pipelines, etc.) with Hyperion MDM. Data is extracted daily from SAP. Hyperion MDM is used for managing the process and changes to this master data, then exports and uploads the changes to Hyperion Essbase and back to SAP nightly. Managed with minimal effort by two people who have this responsibility as only a part of their job, the data flows seamlessly (to the user) from system to system with Hyperion MDM. Daily data maintenance is easily performed and then reflected in the accounting, reporting and analysis systems via this automated solution. With Hyperion MDM, Anadarko was able to easily combine into one centralized structure more than 30,000 additional cost centers due to the acquisitions of Kerr McGee and Western Gas Resources in August 2006.

STRENGTHS: The greatest benefit of this solution is that it enabled Anadarko to do something that simply wasn't possible with its SAP ERP system - manage 97,000+ hierarchical cost centers and other important data. What had the makings of a data management nightmare is now a nonissue. Employees describe the solution as magical for creating alternate hierarchies and reporting dimensions. It has automated a very manual, error-prone process. Other benefits have been realized, such as cost savings, increased accuracy, greater efficiency, better forecasting and increased effectiveness for mergers and acquisitions.

WEAKNESSES: Usability could be improved when dragging and dropping members of a hierarchy. When you need to move a member from one parent to another and then go back to that original parent, MDM will have closed that original parent branch - forcing you to reopen it.

SELECTION CRITERIA: Anadarko needed a centralized and flexible data management solution that could handle thousands of cost centers today and add more as Anadarko acquired additional companies. It was also crucial that the solution work seamlessly with Anadarko's existing SAP, Hyperion Essbase and any other hierarchy-driven systems.

DELIVERABLES: For the direct users of Hyperion MDM, the job of master data management transformed from being manual, onerous and frustrating to being reliable and automated. There was grave concern about how master data would be managed with SAP, as Anadarko had discovered that its SAP tools wouldn't meet their needs. That stress is gone as the Hyperion MDM solution handles master data management with virtually no manual intervention. Users now spend very little time reconciling master data changes, as the system handles all the business rules, attributes, properties and how it is used in downstream systems. Once the hierarchies are established, users have both peace of mind and freedom.

VENDOR SUPPORT: We have confidence in Hyperion. Over our 13-year relationship with Arbor and now Hyperion, they've proven to have both the technical solution we need and the support and partner community to help us implement the solution.

DOCUMENTATION: Hyperion MDM was easy to learn and use. The provided materials were sufficient to have us up and running quickly.

Hyperion System 9 Master Data Managementt
Hyperion Solutions
5450 Great America Parkway
Santa Clara, CA 95954
(408) 588-8000

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