1. Oracle Product Lifecycle Management John Conlin, CPIM Principal Sales Consultant Know More. Do More. Spend Less.

2. Product Lifecycle Mgmt At-a-Glance Your Company Product Development Post-Development ConceptDevelop Prototype & Test Release ProductionMaintenanceRetirement Analyze & Rationalize Customers Suppliers “Oracle’s vision encompasses all three dimensions of PLM -- product, resource management, and financial tracking.” “Oracle is promoting a PLM strategy supported by offerings that are compatible with its Oracle Manufacturing solution, its financial software, and its SCM and CRM offerings.” M. Halpern, K. Brant March 2003

3. Business Pressures Cycle Time Compression How can I compress design cycles to accelerate new product introduction? How can I improve coordination in a concurrent engineering environment? Cycle Time Compression How can I compress design cycles to accelerate new product introduction? How can I improve coordination in a concurrent engineering environment? Competition & Cost Pressure What can I do to increase component reuse? Which projects are low value and should be discontinued? Competition & Cost Pressure What can I do to increase component reuse? Which projects are low value and should be discontinued? Increased Complexity How can I enable design and configuration of complex solutions? How do I effectively manage large, cross-functional teams? Increased Complexity How can I enable design and configuration of complex solutions? How do I effectively manage large, cross-functional teams? Global Virtual Teams How do I provide 24x7 access to critical product information? How can I best leverage my outsourcing partners? Global Virtual Teams How do I provide 24x7 access to critical product information? How can I best leverage my outsourcing partners? Product Development Post- Development

4. Operational Challenges Multiple Definitions, Limited Collaboration, Linear Product Life Marketing / Sales Manufacturing Design / Engineering Company 1 Service Company 2 Corp. Planning Product Definition B Project Plan 2 Collaboration Methods Product Definition C Product Definition D Product Definition E Project Plan 3 Project Plan 4 Project Plan 5 Product Definition A PhoneMailFaxE-mail Project Plan 1 Marketing / Sales Manufacturing Design / Engineering Service Corp. Planning Product Definition G Project Plan 7 Product Definition H Product Definition I Product Definition J Project Plan 8 Project Plan 9 Project Plan 10 Product Definition F Project Plan 6 Product Lifecycle Flow

5. A Need for Change Leading Business Trends Design for Product and Component Reuse Shorter Project Cycles for Design and Delivery Product Definition Management from Concept to Retirement Increasing Strategic Partnerships for Design Outsourcing “Design Anywhere, Build Anywhere” Virtual Teams Real-Time Visibility of Schedule, Costs & Changes Design for Product and Component Reuse Shorter Project Cycles for Design and Delivery Product Definition Management from Concept to Retirement Increasing Strategic Partnerships for Design Outsourcing “Design Anywhere, Build Anywhere” Virtual Teams Real-Time Visibility of Schedule, Costs & Changes

6. Product Lifecycle Mgmt Opportunity “Better product lifecycle management could create $105B in new operating margin for U.S.manufacturers.” “Manufacturers should prioritize PLM because it can help them get greater value from their product investments through better leverage of product knowledge, financial resources and personnel.” Component Reuse50% Engineering Changes90% ECO Cycle Time & Admin Expense50% Customer RFQ Cycle Time 75% Design Errors & Rework Expense 25% CTO / ETO Order Errors 90% Component Reuse50% Engineering Changes90% ECO Cycle Time & Admin Expense50% Customer RFQ Cycle Time 75% Design Errors & Rework Expense 25% CTO / ETO Order Errors 90%

7. What Oracle Customers are Achieving… “CADView-3D helps us have control of our projects. We can easily review the design model and determine the level of completion. Productivity has increased since we're not working off paper checksets. Furthermore, CADView-3D gives us the ability to find out information that might not be readily available if we had to generate traditional 2D electronic CAD files or paper drawings and then go back and check things by hand.” -- Rob Brawn, Director of Design Automation “CADView-3D helps us have control of our projects. We can easily review the design model and determine the level of completion. Productivity has increased since we're not working off paper checksets. Furthermore, CADView-3D gives us the ability to find out information that might not be readily available if we had to generate traditional 2D electronic CAD files or paper drawings and then go back and check things by hand.” -- Rob Brawn, Director of Design Automation “Our idea was to facilitate Web-based information sharing and exchange during all phases of the plant life cycle. Through such information sharing, we facilitate collaborative work processes and improve the management of change not only internally but also while working with our suppliers.” -- Claus Langlo, Senior Engineer “Instead of having to use site visits or faxes, we were able to get online and use collaboration tools. In CADView-3D, we could allow the construction manager at the site to take control of the session, and point out issues or questions. Then the design engineer in the office could take control and explain the answer.” -- Carl Toner, Engineering Supervisor “Instead of having to use site visits or faxes, we were able to get online and use collaboration tools. In CADView-3D, we could allow the construction manager at the site to take control of the session, and point out issues or questions. Then the design engineer in the office could take control and explain the answer.” -- Carl Toner, Engineering Supervisor

8. How Oracle Delivers

9. Engineering Marketing Suppliers Customers InternalInternal InternalInternal ExternalExternal ExternalExternal Procurement Inventory Management Manufacturing Service Finance / Costing Marketing Sales Configuration EnterpriseIntegrationEnterpriseIntegration EnterpriseIntegrationEnterpriseIntegration Oracle Product Lifecycle Management Requirements Specifications Drawings Schedules Defects Orders Project Management Advanced Collaboration Tools Service & Maintain Develop Market Sell Procure Fulfill Plan Manufacture Portfolio Management * Sourcing Product Intelligence * Configuration Management Global Product & Component Catalog Global Product & Component Catalog * Coming in a future release

10. Foundation: Common Repository Consolidate All Data for Single Source of Truth PDM System #1 Component Supplier Mgmt System PDM System #2 Consolidate All Information - CAD and engineering definitions - Configuration specs (sales, service, etc.) - Product information structure - Install base - Project documents - Issues, change requests, - change orders - Work and resource plans - Budgets & forecasts - Schedules / performance Scale to Meet Growth Demands Links to External Systems Global Product & Project Repository Global Product & Project Repository Project Information

11. Oracle Product Lifecycle Management Enables You To…  Drive Component Reuse with Global Product Catalog  Securely Collaborate with Extended Enterprise  Improve Project Visibility and Control  Drive Component Reuse with Global Product Catalog  Securely Collaborate with Extended Enterprise  Improve Project Visibility and Control

12. Global Product Catalog Capture All Product Information In One Place Enables... Component Reuse Secure Collaboration with Customers & Suppliers Leverages Oracle Database... Text & Parametric Search with Text & Partitioned Index Technology Scalability & Performance Supports Full Global Operation... Single Global Instance 30 Languages All Currencies All Localizations Intelligence Collaboration Automation Market Plan Sell Procure Manufacture Fulfill Warehouse Transportation Maintain Service Inventory Optimization Develop Global Product & Component Catalog Global Product & Component Catalog

13. Advanced Security Solution Provide Secure, Role-Based Views to Product Info Access Based On: Job Function Data Permissions Advanced Security Unique View forEngineering forFinance forSuppliers Global Product & Component Catalog Global Product & Component Catalog

14. Classify Components for Easy Retrieval Organize Information in Engineering Catalog User defined category hierarchy User defined attributes for each category Attribute inheritance for easy maintenance Assign components to categories CategoryResistors Part #____ Manufacturer____ Price____ Attribute N ____ Ohms____ CategoryCapacitors Part #____ Manufacturer____ Price____ Attribute N ____ Microfarads____ CategoryElectronicComponents Part #____ Manufacturer____ Price____ Attribute N ____ Category Attributes Category Inherited Attributes HierarchyHierarchy Unique Attributes

15. Unified Product Catalog Search Provide Instant Access to Product Information All Users – Casual users – Technical users Search Options – Browse catalog – Simple search – Advanced search Intuitive Interface Internal and External Usage Casual SearchTechnical Search Results

16. Search and Find the Best Component Increase Component Reuse Through Advanced Search Browse Category Hierarchy Best Component Search Components by Specification Values (and compare search results) Choose Best Fitting Component Category Search Attributes Attribute Values

17. Control the Product Change Process Workflow Driven Process Automation Implement Change Test & Approve Review Create Work Pkg Create Change Order (ECO) Create Change Order (ECO) Workflow Driven Schedule Cost Dispositions QA / Engr Alerts & Notifications Engineer  User-Defined Change Types  Streamline Review and Approvals  Facilitate Multi-Company Collaboration Org 1, Org 2, … ID Issue Assign & Notify Assess Impact Review Approve or Reject Create Change Request (ECR) Create Change Request (ECR) Engineer

18. Oracle Product Lifecycle Management Enables You To…  Drive Component Reuse with Global Product Catalog  Securely Collaborate with Extended Enterprise  Improve Project Visibility and Control  Drive Component Reuse with Global Product Catalog  Securely Collaborate with Extended Enterprise  Improve Project Visibility and Control

19. Oracle Advanced Collaboration Role-Based Security Web-Based Access Internal External Project Data CAD Designs Specifications Docs / Files E-Mails Voice Messages Project Data CAD Designs Specifications Docs / Files E-Mails Voice Messages Document Mgmt CAD Review Integrated E-Mail, Fax, Voice Mail Scheduling, Web Conferencing Advanced Collaboration Services Share the right information, with the right people, at the right time by automating & optimizing collaborative business processes. Partners Engineering All Other Depts Mfg SuppliersCustomers Web-Based Access

20. Voice mail and fax via PC E-mail by phone Simultaneously search e-mails and documents CAD streaming without file download down to 56Kbps CADCommunicationsDocuments Multi-Mode Information Access Use the Method that is Most Convenient

21. Easy Stakeholder Access Drive Participation of All Contributors DesignMarketingPurchasingSales MgmtFinanceService Your Company Service Distribution Mfg Partners Consumers OEMs Customers Global Repository Global Repository Browser-based for fast roll-out and user adoption Streamlined Communications UI for higher utilization Configurable CAD UI for ease of use by all stakeholders Browser Global access anywhere anytime Office and homeOffice and home Customer and supplier sitesCustomer and supplier sites Airport terminalAirport terminal OtherOther Global access anywhere anytime Office and homeOffice and home Customer and supplier sitesCustomer and supplier sites Airport terminalAirport terminal OtherOther Secure, Role-Based Access

22. Engineering change order reviews and approvals Supplier RFQ and quote clarifications Manufacturing process design reviews Sales training Service training Maintenance coordination Project status reviews Web-Based Conference Web-Based Conferencing Reduce the Need for Physical Meetings

23. Online CAD Sharing and Markup Securely Share Drawings and Designs Streaming-Based CAD View & Mark-Up –Product data queries –Mark-ups –Perspective views –Sectioned views –Animations –CAD format neutral –Spontaneous access without download Web Conferencing –File sharing –Desktop sharing –Application sharing –Co-browsing –White boarding Project Mgr., E & C Contractor There’s plenty of clearance over the decking Assure “single source of truth” via central hosting

24. Internet-Based Calendar & Scheduling Efficiently Identify Availability & Schedule Meetings Automatically poll team members Quickly identify earliest feasible meeting time Attach URL links for meeting materials to invitation Attach URL links for meeting materials to invitation Automatically e-mail meeting notices to team, with wireless reminders to phones and PDAs Automatically e-mail meeting notices to team, with wireless reminders to phones and PDAs Attach URL links for meeting materials to invitation Attach URL links for meeting materials to invitation Automatically e-mail meeting notices to team, with wireless reminders to phones and PDAs Automatically e-mail meeting notices to team, with wireless reminders to phones and PDAs

25. Establish Shared Document Repository for Project Team – Use Oracle Files of Collaboration Suite – Integrate with enterprise document repository via WebDav protocol Utilize Foldering and Versioning – Check documents in and out Ensure Security for Documents Provide Collaborative Environment for Real-Time Review – Streaming via Oracle CADView-3D Route and Approve Documents Document Tracking and Sharing Improve Efficiency and Reduce Review Time Electronic Routing Person A Person B Person C Person D

26. Oracle Product Lifecycle Management Enables You To…  Drive Component Reuse with Global Product Catalog  Securely Collaborate with Extended Enterprise  Improve Project Visibility and Control  Drive Component Reuse with Global Product Catalog  Securely Collaborate with Extended Enterprise  Improve Project Visibility and Control

27. Demand Funded Research / Work Facility / Construction Mgt InformationTechnology Research & Development Asset Mgt Sales Marketing Other Internal Project Work StrategicInitiatives Built-In Enterprise Integration Document Repository HR Financials Procurement Inventory CAD / Product Info Sales / Contracts Asset Mgt Manufacturing Intelligence & Portfolio Planning Personalized Role-Based Views Personalized Role-Based Views Project Management Project Management Plan Project Manage Change Manage Performance Plan Project Manage Change Manage Performance Accounting & Operations Accounting & Operations Track Effort/Costs Manage Contract/Billing Capitalize Assets Cross-Charge Track Effort/Costs Manage Contract/Billing Capitalize Assets Cross-Charge Collaboration Update Progress Review Documents Resolve Issues Update Progress Review Documents Resolve Issues Resource Management Update Skills Match Resources Track Utilization Update Skills Match Resources Track Utilization Global Project Repository Global Project Repository Oracle Enterprise Project Management

28. Gain Real-Time Project Status Visibility – Receive alerts (Portal / e-mail notification) – Drill down to details via Project Workbench Integrate All Relevant Systems – Financials – Procurement – Human Resources Control Project to Meet Delivery Targets – Receive continuous feedback – Proactively plan and forecast – Ensure up-to-date communication – Contracts – Manufacturing – Maintenance Project Visibility and Control Make Better Decisions with Less Effort Global Project Repository Workbench Portal Operational Systems Team Members, Partners & Suppliers Project Manager

29. Improve Budget and Forecast Oversight Manage Within Budget with Improved Visibility Flexible Definition and Approvals Plan Types, Project/Task Levels, Budget Categories, Time Phases Multiple Versions; Approval via Workflow Simplified Entry Enter and Adjust via Templates, Excel, Web UI Integrated Change Requests and Orders Robust Budget Analysis Based on Original and Current Budget Actual Results Comparison: Costs/Hours/Quantities/Revenue Streamlined Forecasting Forecast at Completion; Version Tracking Cash Forecasts by Project Approved Budget Bid Cash Forecast Forecast at Completion

30. Provide Robust Work Tracking Gain Visibility to Workplans and Schedules Flexible Definition – Unlimited Hierarchy – Life Cycle Tracking – Bi-directional interface to MS Project – Workplan Versioning – Same or Different Task Hierarchy for Workplan and Financial Structure Simplified Progress Tracking – Manager or Team Updates – Progress History – Input Defined by Type of Work Financial Structure BuildBuild TestTest DesignDesign RolloutRollout v.1 v.2 v.3 DesignDesignBuildBuildTestTestRolloutRollout WBS (Workplan)

31. Color-coded project status Detailed comments Support for multiple date types Task-level progress Documents for additional context Manage Progress Review Summary and Drill Down to Details

32. Enable Robust Tracking of Issues / Changes – Handle multiple participants in a single system – Replace fax, phone, mail – Reduce risk with traceability for regulatory and legal backup – Include in approved budget upon resolution Efficiently Manage Project Changes Increase Visibility and Reduce Time for Resolution Avoid Misrouted Paperwork, Save Time and Cost Evaluate and Implement Impact in Closed Loop – Discuss and resolve collaboratively – Gain complete visibility from definition to resolution – Leverage workflow approvals and notifications – Speed approvals and implementation

33. Color-Coded Dashboard Reflecting Project Health Status, Utilization and Resource Planning Metrics Monitor Project Budget and Schedule Enhanced Financial Accountability and Control View Activities, Responsibilities, and Progress Color-Coded Dashboard Reflecting Project Health Status, Utilization and Resource Planning Metrics Monitor Project Budget and Schedule Enhanced Financial Accountability and Control View Activities, Responsibilities, and Progress Project Portfolio Visibility Make Decisions Based on Facts, Not Guesswork Project One$ Project Two$ Project Three$ Project Four$ Project Five$ Project One$ Project Two$ Project Three$ Project Four$ Project Five$ Resource Planning Resource Utilization Overall Project Status Program A

34. Product Intelligence Integrated Throughout PLM Offering…

35. – Objective: Set institutional targets – Fact: Provide performance-based metrics – Exception: Continuously evaluate performance – Objective: Set institutional targets – Fact: Provide performance-based metrics – Exception: Continuously evaluate performance Manage By… What are the total costs of all my product changes ? Real-Time Product Intelligence Global Access to Complete Product Information How many open ECOs do we have by department? What percentage of components are being reused in new designs? Which component designs are at risk ? On average, how long do we take to complete ECOs ?

36. Links Reports Real-TimeResults Graphs Flexible Time Periods FlexibleComparisons Performance Measures Product Intelligence * : Timely, Accurate, Relevant Daily updates on key performance indicators Actionable information on savings and incremental revenue opportunities At a glance: - Part count / unit cost - New, open, and late change orders - Change order cost and cycle time - Component reuse - BOM levels * Coming in a future release

37. Oracle Product Lifecycle Management Drive Component Reuse with Global Product Catalog Single source of global product and component information Securely Collaborate with Extended Enterprise Advanced collaboration tools: CAD streaming, file sharing, web conferencing, scheduling Improve Project Visibility and Control Enterprise project management: budgets, resources, work-tracking

38. Product Lifecycle Management: Key Products Oracle Sourcing -RFx support -multi-round negotiations -bid analysis and awarding Oracle Project Management -project planning and tracking -budgeting & forecasting -change management Oracle Project Collaboration -stakeholder visibility -issue resolution Oracle Configurator -manage configuration rules -validate sales orders -generate correct BOMs and routing -validate service parts Oracle CADView-3D -multi-user review & mark up -change management integration Oracle Collaboration Suite -integrated document management -internet conferencing -version control Oracle Advanced Product Catalog -product and component catalog -advanced search -role-based security -change management -comprehensive API’s * Coming in a future release Project Management Advanced Collaboration Tools Service & Maintain Develop Market Sell Procure Fulfill Plan Manufacture Portfolio Management * Sourcing Product Intelligence * Configuration Management Global Product & Component Catalog Global Product & Component Catalog

39. Evolution of Oracle Product Lifecycle Management With 11i.9… Differentiators… CAD sharing -Multi-user review/mark-up -Change mgmt integration Collaboration tools -Integrated document mgmt -Internet conferencing Sourcing -RFx support -Multi-round negotiations -Bid analysis & awarding Sales/manufacturing configuration management -Manage config rules -Validate sales orders -Generate manufacturing BOMs and routing -Validate service parts Recipe & formula development Clinical trial management CAD sharing -Multi-user review/mark-up -Change mgmt integration Collaboration tools -Integrated document mgmt -Internet conferencing Sourcing -RFx support -Multi-round negotiations -Bid analysis & awarding Sales/manufacturing configuration management -Manage config rules -Validate sales orders -Generate manufacturing BOMs and routing -Validate service parts Recipe & formula development Clinical trial management …Coming in 11i.10 Global product and component catalog -Advanced search -Role-based security -Issue management -Change request management -Comprehensive API’s Project management -Project planning and tracking -Budgeting & forecasting -Project change management Project collaboration -Stakeholder visibility -Issue resolution Integrated product intelligence Global product and component catalog -Advanced search -Role-based security -Issue management -Change request management -Comprehensive API’s Project management -Project planning and tracking -Budgeting & forecasting -Project change management Project collaboration -Stakeholder visibility -Issue resolution Integrated product intelligence New item request, definition, and approval workflow Item attribute & attachment change order Lifecycle phase change policies Preferred and approved manufacturers for an item Improved / embedded document management Product intelligence analysis – change orders, part count, unit cost, leads, sales New item request, definition, and approval workflow Item attribute & attachment change order Lifecycle phase change policies Preferred and approved manufacturers for an item Improved / embedded document management Product intelligence analysis – change orders, part count, unit cost, leads, sales "The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality."

40. Support Global Operations Think Globally, Act Locally  30 Languages  Multiple Currencies  Customers in 100+ Countries  All Languages Installable in Same Unicode Instance  Support for Statutory and Customary Local Requirements

41. Modular Architecture Implement Based on Your Business Priorities Time  Implement by Business Flow – Start with one flow, demonstrate initial success – Add more flows to expand business coverage – Support changing business needs  Flows are Seamlessly Integrated – Replace disparate systems – Eliminate data synchronization – Decrease time and cost to implement

42. Lower Total Cost of Ownership (TCO) Run on a Single Global Instance Consolidate Data Centers and Databases E-Business On Demand Low Cost Linux Hardware App Admin DB/AS Admin Sys Admin HW Admin App Admin DB/AS Admin Sys Admin HW Admin Production midtiers 100% Linux Production DBRAC Cluster (Unix) Demo environments 100% Linux Development 90% Linux Outsourced Customers70% Linux Production midtiers 100% Linux Production DBRAC Cluster (Unix) Demo environments 100% Linux Development 90% Linux Outsourced Customers70% Linux Oracle’s Experience with Linux  3x faster, 5x cheaper  Easy to Automate en Mass  Highly Reliable Needs:Roles: Oracle Manages: 50% Lower Cost 50% Better Svc Core Competence Predictable Cost You Manage: AvailabilitySecurityPerformanceChangeProblems Standardized Open Integration Platform Business events infrastructure Industry standard protocols Centralized integration repository Simplify B2B Integration, Application Connectivity, and Process Management

43. Customer Success

44. Analyst Quotes “With all these ingredients and a huge applications user base, particularly in manufacturing, Oracle looks set to compete for substantial new PLM business in 2003.” “Existing Oracle ERP users will find, as one large and respected high-tech manufacturer did last fall, that this PLM product is well worth investigating.” AMR Alert, “Oracle Ready to Compete”, Kevin O’Marah, January 2003

45. A Few PLM Customers

46. Leading manufacturer of windows, doors & entry systems – 7K employees serving every major US city, and many foreign cities Live on 11i – Advanced Product Catalog development partner and early adopter – Other products include Configurator, Flow Mfg, Financials, Procurement, Order Mgmt, Mobile Supply Chain Applications, Marketing Online, Sales Online Consolidated onto a single product definition system for engineering, sales and manufacturing “Managing a product over its lifecycle means having access to a central and secure source of product information and a comprehensive set of collaboration tools. Because of our complex product configurations, we require an integrated system that brings together all areas of a business including SCM, CRM, finance and HR, so that product information is managed and leveraged across the enterprise.” -- Ken Bettger, Director, Adv. Product & Process

47. Streamline collaboration with partners Reduce sourcing costs by 20% Streamline collaboration with partners Reduce sourcing costs by 20% $3B Euro leader in industrial engineering, design & construction of petroleum & petroleum facilities, 10,000 employees worldwide Live on 11i – Product development solution including CADView-3D & Sourcing – 7,000 concurrent users. “When we do engineering work for projects that are $500M to $2B, there’s a lot of collaboration that needs to take place. We chose Oracle for its integrated solution – not only within the Product Development area, but also with ERP and CRM. That’s one of the main drivers to why we chose the products of Oracle.” -- Maurice Tayeh, Group CIO

48. Serves customers in a wide range of markets including food, transportation, health & medicine, personal & home care, and building & construction $28B annual sales in 170+ countries, 50K employees Live on CADView-3D – Over 700 concurrent users on CADView-3D – 12 sites spanning 5 different countries “Collaboration ensures a clearer understanding of the project, and it is certainly reducing costs by helping us to avoid rework.” - Barbara Migl, Global Product Mgr, 3D Applications Reduced field change orders Field support cost savings of 25% Reduced field change orders Field support cost savings of 25%

49. Worldwide supplier of Smartcard solutions – Based in Germany, global technical staff of 7,000 – Develops localized software – Rely on SAP back-office systems Live on 11i Projects and Procurement Expected Benefits – Understand progress in real time; communicate to management – Ability to quickly identify and respond to project changes “We will rely on Oracle Project Management to dramatically improve the security and efficiency of our software development processes around the world.” Expects better control over software development projects involving team members around the world

50. Summary

51. Accelerate New Product Development Develop Market Leading Products Reduce Overall Product Costs Improve Overall Product Quality Oracle Product Lifecycle Management

52. Know More. Do More. Spend Less.