Jupiter Shop Channel Automates Budgeting Processes, Enhances Visibility of Project Investments to Support Strategic Decision-Making
 
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Jupiter Shop Channel Automates Budgeting Processes, Enhances Visibility of Project Investments to Support Strategic Decision-Making

Founded in November 1996, Jupiter Shop Channel Co., Ltd. (JSC) is one of the largest domestic TV shopping channels in Japan. JSC was the country’s first live TV shopping channel, and now broadcasts 24 hours a day, 365 days a year on a variety of cable, digital, and terrestrial stations. JSC sells a wide variety of products, including clothes and household electrical goods, and also offers internet and mail order shopping.

 
 

 
 

Challenges

A word from Jupiter Shop Channel Co., Ltd.

  • “We chose Oracle Hyperion Planning for its proven track record and compatibility with Excel. We are very impressed with its outstanding automated analytical functions, which have significantly enhanced our budget and reporting processes—Oracle Hyperion Planning is not just a financial management tool for us, but also provides a business management infrastructure that will help our business grow.” – Daisuke Ikeda, Systems Analyst, Financial Planning & Analysis, Jupiter Shop Channel Co., Ltd.

  • Minimize the manual work required to plan and compile annual budgets across an increasingly complex TV and online shopping organization
  • Reduce the amount of time and effort needed to gather budgeting and forecasting data from different departments, and adjust it with the necessary stakeholders
  • Implement a more efficient, scalable system that can accommodate a growing amount of financial and non-financial data as the company expands its online shopping business
  • Ensure budgetary data is accurate and can be managed in a high level of detail, including every sub-item which appears under a single account item
  • Enable managers to make faster and more informed budget, forecasting, and investment decisions about its TV shopping operations

Solutions

Oracle Product and Services

  • Improved the accuracy and efficiency of budgeting and forecasting processes with Oracle Hyperion Planning by automating budget-related tasks rather than manually consolidating data from across business units using spreadsheets
  • Reduced staff workload by converting all Excel-based calculations to Web-based format using the Business Rule function, such as automatically calculating depreciation costs based on investment budgets
  • Enhanced the analysis of each business unit’s profitability and better responded to customers’ product preferences, by compiling reports immediately after month-end using financial data and KPIs such as sales trends, Return on Assets, and Return on Equity
  • Allowed managers to effectively manage budgets, by enabling them to drill down into accounting sub-items, such as the book value and depreciation costs for TV and online assets, rather than just a total for capital expenditure
  • Generated multiple versions of business performance comparison reports based on different organizational scenarios, which help support decisions about developing new overseas online and TV shopping operations
  • Enabled managers to easily access details of project-related expenses for shopping channels and investment projects, by using a single project code rather than going through different spreadsheets

Why Oracle

JSC compared a variety of IT vendors when looking for financial planning software but chose Oracle Hyperion Planning as it best met the organization’s business needs.

“One of our previous investors, an American home shopping network, was using Oracle Hyperion Planning, which prompted us to consider the software for ourselves,” said Daisuke Ikeda, systems analyst, financial planning and analysis, Jupiter Shop Channel Co., Ltd.

“There were four primary factors that helped us decide to implement Oracle Hyperion Planning: it has a proven track record; it’s designed to integrate with Excel; it has the required level of accounting sub-items; and it offers outstanding analytical capabilities.

“Oracle Hyperion Planning is not just a financial management tool for budgeting and reporting, it also provides a business management infrastructure that will help our business grow,” he said.

Implementation Process

JSC migrated its budgeting data and processes to Oracle Hyperion Planning in August 2007. After overcoming internal challenges due to the tight implementation timeframe, it developed a new user interface the following year and standardized its complex Excel-based calculations, such as depreciation, variable costs, and personnel costs calculations, using Oracle Hyperion Planning’s business rules.

In the next few years, JSC is planning to refresh its back-end systems and will upgrade to the latest version of Oracle Hyperion Planning.

“We expect staff numbers and the number of system users to increase, so it’s important to upgrade the system to accommodate this growth,” said Ikeda.