Oracle EPCM · Profitability · Cost · Pricing

Cost and profitability models that hold up to a board, a regulator or a ministry.

We design Oracle Enterprise Profitability and Cost Management models for organizations where the number gets questioned: banks and insurers pricing against capital, health systems costing care, manufacturers and distributors measuring cost to serve.

Same logic, any industry: every cost traced to the decision it informs
Illustrative allocation path in EPCM
Resource
Activity
Cost object
Decision
Bank
Branch staff payroll
Account servicing
Checking product, SME segment
Reprice or exit
Health
Nursing and supplies
Inpatient care hours
Service line, medical unit
Fund, shift or consolidate
If a manager can’t follow a number from the ledger to the decision, the decision gets made on opinion.
Why now

Many organizations already own EPCM. Few use it to decide anything.

PCM is the past

Oracle now ships its profitability features to EPCM. Classic PCM and Hyperion PCM models stay frozen while the platform moves on.

The license is often already paid

EPCM comes with the EPM Enterprise subscription. If you run Planning or Close on Enterprise, the cost engine is sitting unused.

The question is always why

Examiners, boards and budget committees want a number they can trace to its drivers, not a spreadsheet only one analyst understands.

Where we work

Two examples where the number has to survive scrutiny.

Banking

Profit after funding cost and capital

Most bank profitability reports stop at operating cost. Pricing and product decisions change once funding cost, expected loss and the capital charge land in the same model.

100
−38
−27
−12
−15
8
Revenue
Funding (FTP)
Operating (ABC/M)
Expected loss
Capital charge
Economic profit
Illustrative · indexed to revenue = 100
Funding cost
Matched FTP rate per loan and deposit
Operating cost
Branches and operations by activity
Expected loss
PD × LGD × EAD by segment
Capital charge
Economic capital at the hurdle rate
Output: economic profit and RAROC by customer, product, channel and branch.
Healthcare and social security

Cost of care at system scale

A national health system can’t fund what it can’t cost. We build models that follow every peso or dollar from payroll and supplies to the service line, the medical unit and the program it serves.

Direct
Nursing, physicians, supplies
Semi-direct
Lab, imaging, pharmacy
Indirect
Admin, facilities, IT
↓ RVU · RCC · activity drivers ↓
Service line · encounter · patient day
↓
Medical unit · family clinic · hospital · high-specialty center
↓
Medical care
Social benefits
Cash benefits
Output: cost per service, per unit and per program that a budget committee can trace line by line.
PCM → EPCM

Redesign the model. Don’t just move it.

A lift-and-shift carries old allocation logic into a new platform. EPCM changes how architecture, dimensions and integration work, so the migration is the cheapest moment to fix the model.

Lift-and-shift
ArchitectureSame rule sets, same sequence, rebuilt by hand
DimensionsOld hierarchies copied, unused members included
IntegrationFlat-file loads kept as they were
OutcomeSame report, new login
Redesign with Asher
ArchitectureRules rebuilt around the decisions management actually makes
DimensionsCustomer, product, service line or unit at the grain the business uses
IntegrationLedger, operational and risk data loaded through the EPM platform
OutcomeCost and profit traceable to every driver
For Oracle partners and integrators

Your bid needs EPCM depth. You keep the account.

When an RFP asks for profitability, cost to serve, cost of care, pricing, FTP or capital allocation, we join your team as the design authority. You run the program and the client relationship.

01
Pre-sale
Solution design, demo storyline and methodology section for your proposal.
02
Design
Model architecture, driver logic and allocation rules. Fixed scope, under your brand if you prefer.
03
Hand-off
Your consultants build and run it. We stay on call for design questions.

Who designs your model

30+
Years in profitability and cost management
200+
Integrated EPM models built
Chair
IMA Profitability & Cost Management SIG
Healthcare · IMSS, Mexico

Cost model on Oracle Hyperion PCM and EPCM across medical care, social benefits and cash benefits for Mexico’s social security institute, a network of more than 1,800 medical units.

Banking · In delivery

Customer and product profitability model on Oracle EPCM for a multi-country banking group in the Americas.

Contact

Is your cost model ready for EPCM? Ask the principal who will design it.

No forms and no sales team. Tell us what you run today and you’ll get a direct answer from Pedro San Martín: migrate, redesign or leave it alone.

It helps to include
What you run. Hyperion PCM, PCMCS, EPCM or spreadsheets, and roughly how big.
The decision. Pricing, product or branch profitability, cost of care, funding.
Who owns the model. Finance, IT or a partner, and what isn’t working.
Pedro San Martín
Founder & Principal
Price, Profitability & Cost Management
Chair, IMA Profitability & Cost Management SIG
30+ years in cost and profitability models
Naples, Florida
Central America, Panama and the Dominican Republic
Contact Leonidas Rey, PwC Interamericas, PwC Strategic Finance Center of Excellence
leonidas.rey@pwc.com