About onsemi
ON Semiconductor Corporation (onsemi), based in Scottsdale, Arizona, is a leading semiconductor manufacturer with a revenue of 8.25 billion USD. They offer over 80,000 parts, including advanced MOSFETs, image sensors, and Silicon Carbide technology (EliteSiC), serving tens of thousands of customers with intelligent power and sensing technologies.
Situation
onsemi, one of the world’s leading semiconductor manufacturers based in Scottsdale, AZ, sought to improve the accuracy of their planning processes and migrate complex allocations from a homegrown tool. Leadership aimed to enhance their workforce and financial planning capabilities, increase visibility into new hire planning, and streamline their forecasting processes. They embraced the opportunity to align with leading financial and operational planning practices.
Action
onsemi partnered with Centroid to migrate their legacy planning application (EPBCS) to Oracle Cloud EPM Enterprise Edition. Centroid redesigned their financial and workforce planning applications. The project included the creation of a custom workforce cube to account for the diverse employee base across multiple employment types and geographic locations. Monthly and rolling forecasts for core financial data and a quarterly re-forecast for workforce metrics were implemented. onsemi also bridged the gap between workforce and financial planning by integrating employee-level data from Taleo.
They introduced variance analysis, created a forecast, and enabled trend-based planning. onsemi transformed their homegrown allocation solution to one of the first EPCM implementations, introducing cost center-based and driver-based allocations along with new strategic modeling for long-term revenue goals and KPIs.
Impact
The collaboration resulted in reduced variance in workforce data forecasting and a significant increase in the speed of dynamic workforce modeling. onsemi also achieved greater visibility into their new hire planning process and financial planning. The implementation of scenario modeling and long-range 5-year plans allowed onsemi to create a clear vision for the future and make informed decisions based on macroeconomic conditions and financial projections.
The detailed allocations provided more accurate revenue and expense planning, offering a more precise representation of cost-sharing across the enterprise. Additionally, onsemi synchronized planning, forecasting, and allocation insights, making their planning processes more accurate, efficient, and strategically aligned with their long-term goals.