Not being able to see on a product or service level what the exact profitability is might result in having a sub-optimal set of products. Being able to see on a product or service level which products and services are profitable and which are not can help companies to create a clean portfolio and become more profitable overall.
With the launch of the profitability and cost management cloud service Oracle tries to provide a solution for this.
It takes information streams like production cost figures, facility costs figures and human resource cost figures and combines those with the information from your core general ledger. The combined set of figures is loaded into the performance ledger to enable the profitability and cost management cloud to analyze and calculate the true costs of a product.
The core of the product is a web-based interface which allows analysts to combine, include and exclude sets of data to create a calculation model which will enable them to see the true costs which included the hidden costs.
As profitability and cost management cloud makes use of Hyperion in the background you are also able to use the smart view for office options and include the data and the data model results you crate in profitability and cost management cloud in your local excel. As a lot of people still tend to like Microsoft excel and do some additional analysis in Excel the inclusion of the smart view for office options makes a lot of sense to business users.
In the above video you can see an introduction to the new cloud service from Oracle.