Oracle Industry Solutions Complex Equipment Manufacturing

Oracle Industry Solutions Complex Equipment Manufacturing
<Name> <Title> Good morning, my name is _____________ and I’m pleased to be with you this morning. I’m responsible for ______________ within Oracle’s [Automotive] business. The Automotive industry is one of the largest market segments served by Oracle, you’ll see our customer list later in this presentation. Our Automotive customers keep over 600 Oracle employees very busy and after today’s visit I hope that you’ll see several opportunities where Oracle can help solve some of your problems Enough of that let’s get going Information Age Applications

High Technology Segments
Complex Equipment Products – Semicon fab equipment, servers, test & measurement, etc. Forecast-driven suppliers feed in-house/EMS CTO final build & assy Products sold direct to businesses Products – Processors, DRAM, embedded controllers, etc. High cost of fabs pushing industry towards fabless model Products sold on volume contract Semiconductor High Technology Contract Manufacturing Services – Outsourced design, test, manufacturing/assembly & logistics B2B supply chain collaboration and event synchronization Products shipped to OEM partners or drop-shipped to end customer Products – PCs, cell phones, PDAs, stereo equipment, etc. Multi-channel demand feeds dominant outsourced mfg model Products sold via retailers & online Consumer Electronics Introduction: The Consumer Electronics Industry Total 03’ world wide PC revenue: $348.8B, 3.7% increase from 02’ Total 03’ world wide “Consumer Digital Device” Revenue: $100B, 4% increase from 02’ Industry Revenue Totals $448.8 B Today, growth rates and inventory levels are at all time lows. Hot Consumer technologies include Tablet PC’s, LCD and Plasma displays, Projection devices, Smart phones and Digital Cameras. Most of these firms are multi-nationals with manufacturing and design infrastructure scattered across the globe. With the need to reduce cost often ranking highest in terms of strategic importance, CE OEM’s have relocated manufacturing sites to locations where both economy of scale and local labor rates drive competitive effectiveness on US retail shelves. One tour of the several idled manufacturing plants in northern Mexico confirms the value proposition associated with producing CE platforms there has diminished. (In tandem with manufacturer’s commitments to reinvest in that region.) Beginning in Japan then Korea, Singapore, Mexico, Taiwan, the Philippines, Malaysia, Thailand and finally China, CE OEM’s continue to move manufacturing to the lowest cost production location. Today, factory workers in China earn on average $0.40 per hour, one sixth that of Mexico and one fortieth of what US factory workers are paid. Since inception, the Consumer Electronics high technology supply chain has been fragmented. The dramatic downturn over the past 2 years has compounded the problems associated with managing a complex and volatile global supply chain. The market collapse manifested in the form of margin erosion, inaccurate backlogs and diminished sales revenues, leaving many Consumer Electronics OEMs holding excess inventory and under-utilized capacity. Aggressive price and feature set competition, combined with increased product standardization and shorter lifecycles haven’t helped the bottom line profitability of these companies. In an effort to improve margins and enhance profitability, Consumer Electronics OEMs are outsourcing core business processes whenever viable. The economic downturn has increasingly compelled Consumer Electronics companies and PC OEMs to protect their installed base of direct and indirect channel customers. The competitive landscape today mandates innovative approaches to demand fulfillment that manual systems can’t support. Channel customers want products tailored to their needs, accurate order promises, visibility to orders throughout the fulfillment process, short lead times and on-time deliveries of quality product. All this, as margins continue to decline. Firms choosing to go it alone and control each stage of the “Develop-Make-Buy-Deliver” workflow are inevitably driven out of business by competitors nimble enough to focus on what they do best, e.g. product development. In an industry where first movers typically win, Consumer Electronics OEM’s have moved away from vertical to networked supply chain models, which allows 3rd party relationships to be established (and terminated) with zero impact to customer service or supply chain execution performance. From an ERP perspective 3rd party inventory hubs must appear and be managed as captive resources. Tightly integrated supply chain planning and execution systems have become key to the very survival of the company. Competitors empowered with the visibility to collaborate, plan and execute effectively through change ultimately control the Consumer Electronics market.

The Complex Equipment Value Chain
OEMs Component Mfg Sub Assy Mfg Contract Mfg (EMS) Silicon Source Semiconductor Fabrication Direct Sales & Service Tiered Supply Base OEMs, Sales & Distribution Customer Need script…

Complex Equipment Industry Drivers
Design Complexity How can I reduce design cycle time, and development of customer-specific products? How can existing designs be leveraged to reduce design complexity? Supply Variability What can be done when component lead times exceed finished product lead times? How can I fully leverage a global manufacturing and supply base? Tiered Supply Base OEMs, Sales & Distribution Configuration Management How can I better manage configuration changes that occur once manufacturing has begun? Is there a better way to increase the accuracy of configured orders? Complex equipment manufacturers are experiencing significant pressures that affect the way they look at their business. These pressures can be summarized in 4 drivers (in red arrows). NOTE: White text adjacent to each arrow provides further details Design Complexity: …add script… Supply Variability: …add script… Configuration Complexity: …add script… Sub-Optimal Service: …add script… Service Delivery How can I transform my service operations to a profitable business? How can I ensure high quality services performed by 3rd parties?

A Need for Change Leading Business Trends
Simultaneous optimization of supply & build strategies Outsourcing with complete visibility across multiple tiers Integration of configure-to-order processes and service Emergence of customer service as a strategic differentiator Lean initiatives to reduce cycle time and waste Change is inherent in complex equipment – driven by the pressures we just discussed, and by changing customer demands. This slide describes some of the major ways complex equipment manufacturers are changing to better compete in today’s environment.

A Need for Change Extend Lean Initiatives Across the Enterprise
Sales & Operational Planning Sales & Mktg Finance Poor Quality & Excess WIP High Material & Supply Costs Lengthy ECO Approval Process Error Prone Order Processing Incorrect Resource Dispatching Conflicting Demand Signals Duplicate & Erroneous Data Isolated Departmental Systems Common Areas of Waste Engineering Service Supply Management Information Technology Production Continually Improve Quality, Cost and Cycle Time

Oracle in High Technology Did You Know?
All of the top 25 Electronic OEMs run Oracle applications 47 of the top 50 Electronic OEMs run Oracle applications 7 of the top 10 Semiconductor companies run Oracle apps 5 of the top 10 Fabless Semiconductor companies run Oracle applications 1. All of the top 25 Electronic OEMs run Oracle applications of the top 50 Electronic OEMs run Oracle applications (Source for top Electronic OEMs by 2003 revenue: Electronics Supply & Manufacturing) (List attached) 3. 7 of the top 10 Semiconductor companies run Oracle applications (Source for top Semiconductor companies by 2003 revenue: Electronic Business) 4. 5 of the top 10 Fabless Semiconductor companies run Oracle applications (Source for top Fabless Semiconductor companies by 2003 revenue: Fabless Semiconductor Association) Assumptions: If a facility/division runs Oracle, the parent company runs Oracle If the company has purchased Oracle, but hasn't implemented, it runs Oracle

What Analysts are Saying…
“Oracle is well positioned to drive innovation to the high tech industry. The company’s belief that it needs to maintain leadership across the high tech sector in order to stay in touch with innovative manufacturing developments for the rest of its business helps ensure Oracle’s commitment to this industry.” Meredith Whalen, Vice President, US Vertical Industry Research “Firms in high tech manufacturing, where customer service spans both front- and back-office processes, should consider Oracle, especially if they have already made investments in other Oracle modules, like financials. Oracle applications are also a good fit for midsized companies looking to implement a single vendor apps suite and for firms thinking about outsourcing.” Eric Schmitt, Senior Analyst

What Customers are Saying…
“We selected Oracle for three reasons. First, we knew we wanted an integrated solution. Second, we wanted software that did not require any customization. Oracle excelled over its competitors on both of these counts. The final reason we chose Oracle was its proven success as a solution provider.” Tami Brown, Purchasing Manager “McDATA's challenge of growing international business operations can only be met with a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed" applications requires costly and time-consuming integration services. Oracle offers a seamless, fully integrated, modular business solution.” Don Wenninger, CIO “We now have electronic communication and commerce with both outsourced manufacturers and 3PL providers. We have all of our core back office activities directly linked to the front-end systems that support our new direct order fulfillment model.” Saeed Hosseiniyar, VP of IT

What Customers are Achieving…
decreased planning cycle time by 75% reduced engineering change order process time by 85% reduced engineering change order cycle to under two days reduced procurement cycle by 90% increased purchases under contract from 30 to 80% reduced service call center volume by 15% reduced IT support costs by 50% Consumer Electronics companies can address these challenges and deliver real results through three goals (in yellow). Here are a few examples of ways for companies to achieve these goals (in white). Improve Customer Responsiveness through eliminating data latency between Customers and the organizations which support them. (2) Sustain Profitability & Improve Margins through business process re-engineering and re-use of intellectual property (Common BOM elements) (3) Finally, Reduce Time to Market through sales of channel specific configurable designs through global Trading Partners For any high-tech firm engaged in development, manufacturing and distribution to compete effectively on a global basis, it must prove its ability to plan and execute every day. This is only achievable through ongoing collaboration with its many suppliers, customers and product development organizations located around the world, crossing borders, cultures and time zones. If your company makes these changes, the potential benefits are significant. The measures in the green boxes highlight specific improvements for high tech companies. Supply chain visibility and transparency provides your company with the information needed to deliver best practice supply chain planning performance. Your Planning organization begins generating results you can count on. Oracle Collaborative Planning brings visibility to the extended supply chain network, driving best practice supply network collaboration, coordination and execution. And Oracle solutions come complete with the “out of the box” functionality to process and fill orders without expensive software customizations.

A Few More Customers… Add Script…

Oracle E-Business Suite Built on a Unified Information Architecture
Develop Market Sell Order Plan Procure Make Fulfill Service Maintain Finance HR Projects Contracts Customers, Suppliers, Products, … Common data model enables a single source of truth Comprehensive suite of applications designed to work together Robust set of integration services based on open standards Modular deployment by business flow Single global instance implementations Oracle 11i e-Business Suite delivers all the tools needed to help companies transition to become an e-Business. The applications are 100% Internet based - which means that all you need to access the applications is a web browser on your desktop. But more importantly, the applications themselves have been developed with built-in support for all the new internet-enabled e-Business practices. Oracle’s approach to e-business is holistic, extending collaboration and automation across your entire value chain to connect all business processes to all your trading partners.

Tailored to the Complex Equip. Industry Support for Key Processes
Business Intelligence Product Lifecycle Management Planning & Manufacturing Customer Service Outsourcing Management Technology / RosettaNet Discussing all of these areas would take longer than we have today, so let’s just focus on 5 areas that are of great interest to complex equipment manufacturers today; Planning and Inventory Management, Configuration Management, Manufacturing, Maintenance and Service, and Business Process Automation (via RosettaNet) . All of these key processes (and applications) are supported by Oracle Technology and supply information leveraged by Oracle’s intelligence applications that provide information about the Daily Business Intelligence.

Tailored to the Complex Equip
Tailored to the Complex Equip. Industry Key Processes: Complete Design-to-Service Flow Opportunity Definition Automatic Order Creation Populate Installed Base Match Needs Assessment Update Sales and Service Contracts Automatic Config Item, Bill & Routing Creation Configuration (Product and Pricing) Customer Initiates Service Request Automatic Supply Order Creation Define Service Rqmt And Dispatch Work Available to Promise Flow Schedule PO Work Order GENERIC SCRIPT – Furthermore the strength of Oracle’s solution in the integration of all the features that are critical to the successful operations of a Complex Equipment Manufacturer. You can start from an opportunity or lead, assess the needs, with guided selling put together a unique configuration and price it based on the options chosen. You can generate schematics and drawings that pictorially describe the unique configuration. You can provide accurate Available to Promise dates based on in house capacity or outsourced capacity as well as availability of chosen optional components. Once the quote is approved you can automatically convert it into a Sales Order. The system will check to see if an identical configuration already exists even if the configuration is several levels deep. A unique set of Bills and Routings will be generated if no Match is found. Now this is what is unique to Oracle - you can build the configuration using Flow Schedules or a discrete job or create a PO to the outsourced manufacturer to build the unique configuration. The system will automatically compute the price to put on the purchase order based on blanket agreements for the base model and blanket agreements for the optional components. And the unique configuration BOM is attached to the PO. Once the product is built it can be picked and shipped. At this time the install base is populated with the customer’s configuration and the service contract is updated. If a service call is received the help desk can access the install base information, schedule repair via field service technician or generate an RMA for Depot Repair. In either case the install base information will be updated based on the service performed and any components being replaced. When we presented this to Gartner they were very excited and mentioned that we were probably the only company that had such a complete solution that was fully integrated. Assign Field Tech Initiate RMA Schematics and Drawing Generation Reserve Repair & Debrief Receive & Repair Configured Quote Pick and Ship Development Manufacturing Service

Oracle Complex Equipment Solutions
Business Intelligence Product Lifecycle Management Planning & Manufacturing Customer Service Outsourcing Management Technology / RosettaNet Enable you to: Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations Let’s now drill down on the positioning of these five areas (which form the framework for the next xx slides through slide xx). Each process/chevron is also represented by a bullet point. The first chevron is highlighted while the others are gray. It is called Planning and Inventory Management and Oracle uniquely enables complex equipment manufacturers to Optimally Plan for Configuration Variability

Product Data Repository
Product Design and Development Accelerate Creation of Base Platform Internal Portfolio Management Engineering Manufacturing N e w P r o d u c t I n t r o Phase-Gate Control Concept C o l l abo r a t i on Design for SC & Compliance Retire Sales & Mktg Purchasing Design BOM Mgmt & Release Specifications Drawings Schedules Issues Ideas Changes Product Data Repository Maintenance Service Finance Prototype & Test Component Sourcing External GENERIC SCRIPT – Oracle’s Product Development solution lets you collaborate with customers and suppliers alike to develop new, innovative, profitable new products. Oracle Product Development solution incorporates: Knowledge Management: Information is stored in a common repository. With knowledge management, organizations learn from experience and profit from reuse of materials. Appropriate security ensures that the right people have access only to the information that they require. Design Collaboration: Collaborative capabilities benefit both internal functional departments and external trading partners. Ideas, specifications, drawings, and designs can be shared using the internet. Process Integration: Product Lifecycle Management links information flows from across the business through the life of the product. New designs are released to the organization where different pieces of information from the design process are utilized by the various departments (Manufacturing, Purchasing, Planning, Order Managements, Service). Process Improvement: Review results with integrated intelligence to enhance continuous improvement. Volume Production Sales Configuration Release Ramp-up Issue/Change Management Customers Suppliers Contract Mfgrs Product Intelligence

Design Specific Models from Base Platform
Customer / Channel Specific Model Selected Configuration This slide shows a pictorial example of how you can create Market specific Models and ATO Models. On the left you see an example of a complex platform model. The model has a number of optional components and it also contains a sub-model. The sub-model and model maybe built in two separate plants and/or the sub-model maybe outsourced to an EMS company. On the top RHS you see how a new model was created by pruning the choices of optional components. In the bottom RHS you see how specific options were chosen on the platform Model to create a unique configuration that is popular and you might want to build to stock. Base Platform

Search and Find the Best Components Efficiently Select Components Based on Requirements
Browse Category Hierarchy Category Search Search Components by Specification Values (and compare search results) Product development is the starting point for the creation of item and product structure information that will be used the complete lifecycle of the product through all business process from concept to retirement. Additionally, information from all stages in the product lifecycle are input for new designs. Most suppliers and vehicle assemblers are realizing the inefficiencies of not having a single version of the truth for all BOM information. Oracle is the only vendor that has a comprehensive single data model to support an enterprise across the entire product lifecycle. True Product Lifecycle Management will only be accomplished on the foundation of a single enterprise BOM. Attributes Attribute Values Choose Best Fitting Component Best Component

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

Online Configuration and Ordering Guide Customers Through Product Selection Process
This slide shows an example of the screen a user would see during a configuration session. Notice that the customer interacts with is very user friendly display that even displays a picture of the item being configured. It asks simple, business oriented questions about how you want to use this product, where it will be installed, how many users—any questions you may need. The questions prompt the customer to enter the information that Configurator needs to properly evaluate the rules you have set up previously. Behind the scenes, Configurator uses this data and your rules to configures the product to meet the customers needs, while ensuring that the customer doesn’t accidentally configure a product in a manner than would not be usable. Once the configuration is complete, the results of the configuration process are passed back to the quote, shopping cart, or order. User-friendly HTML Interface Structured, Logical Flow

Convert BOMs* & Track Configurations Manage Complexity Through Entire Product Lifecycle
“As Designed” Convert configured product information as products evolve through lifecycle Create sales BOM from engr BOM and use for guided selling via online Configurator Associate installed base failures with original product designs for root-cause analysis Track product designs through EOL Manage complex, multi-dimensional data (item types, location, platform, etc.) Engr BOM Design & Develop “As Sold” Plan, Market & Sell Sales BOM “As Built” Mfg BOM Manufacture GENERIC SCRIPT – Product development is the starting point for the creation of item and product structure information that will be used the complete lifecycle of the product through all business process from concept to retirement. Additionally, information from all stages in the product lifecycle are input for new designs. Most suppliers and vehicle assemblers are realizing the inefficiencies of not having a single version of the truth for all BOM information. “As Maintained” Service BOM Service & Maintain *Bills of Material

Customer Consigned Inv Hub
Multi-Tier Supply Chain Planning Synchronize Plans To Reduce Lead Times Extend Visibility to Multiple Tiers Communicate requirements to all suppliers Replenish and maintain inventories at customer sites on a consignment basis React Faster to Supplier’s Constraints Get visibility to supplier capacity Reallocate key components Make alternate sourcing decisions Reduce Obsolescence Understand impact of BOM changes to your CM or Supplier Reduce Non-value Added Costs and Exception Overload User-configurable exceptions Automated exception handling via workflow Semicon Supplier Customer You EMS Demand ‘equipment’ Consensus forecast Run plan Supply forecast Forecast ‘controller’ Run plan Supply commit ‘controller’ GENERIC SCRIPT – Oracle Collaborative Planning allows you to model any necessary level of complexity in your supply chain and promote a seamless flow of information and materials across your extended supply chain. This allows you to provide visibility into your requirements to all tiers of your supply chain so that you can get visibility into all of the issues and constraints in your supply chain. Supply commit ‘CPUs’ Forecast ‘CPUs’ Customer Consigned Inv Hub Visibility VMI Hub VMI Hub

Use Planned Inventory Points that Enable Flexibility
Multi-Tier Supply Chain Planning Risk Pooling via Inv. Optimization & Postponement Reduce inventory without sacrificing customer service Use analysis tools to determine: Where to optimally hold inventory (stage & location) What quantities to hold What safety stock to keep Evaluate KPIs to assess service levels, postponement strategies, revenues, costs, etc. Prod A Prod B Assy 1 Assy 2 Sub Assy Finished Product Major Optional Assemblies Sub- Assembly C 1 C 2 Qty=100 Qty=125 Components Risk is “pooled” because a lower quantity of a common sub-assy is required to meet a given service level Need Script… Use Planned Inventory Points that Enable Flexibility

Standard Product (MTS) Select Mfg Source In-House?
CTO and MTS Manufacturing Minimize Inventories & Increase Customer Satisfaction Standard Product (MTS) Check Avail- ability Select Mfg Source In-House? Outsource? Drop Ship? Schedule for Produc- tion Configured Product (CTO) Configure Create Mfg BOM & Routing Customers Global ATP and Pricing Production Plan Pick (or Receive) GENERIC SCRIPT – Configure Products: Customizing products to meet customer needs is essential in today’s environment. Oracle Configurator Developer is included with Oracle Configurator and is an intuitive, drag-and-drop modeling environment. It gives product specialists (not programmers) the range and flexibility to model all products, services and portfolios from simple to complex. The breadth of modeling capabilities enables companies with multiple product lines and global sales forces to effectively sell their full range of products. Oracle Configurator Developer was designed to reinforce a rapid application implementation process and contains integrated functions for quickly deploying complete configuration solutions, which include: Utilizing product data from ERP or other enterprise systems. Modeling configurations and product, service, and system relationships. Applying business rules to product data. Specifying customized user-interface layouts. Creating multiple user interfaces deployed across multiple sales channels. Testing and debugging Oracle Configurator applications. Seamless Linkage to Manufacturing / Build Configurator plays a key role in mass customization – the ability to manufacture and fulfill a custom product. With Oracle’s mass customization capabilities, you can achieve the lowest inventory and the best possible delivery performance. We have created the first unified planning engine that combines all of the traditional planning steps (DRP, MRP, ATP, Scheduling) into a single process. With our competitors like i2 and Manu who have built their suite through acquisitions, you need to setup and use different planning tools for each phase in the process. Our unified planning solution dramatically reduces planning cycle times and eliminates the need to synchronize multiple plans. Our complete suite is 100% internet -based enabling complete visibility and collaboration across the supply chain. And Oracle Internet Planning is a true application, not a toolkit like other APS systems on the market. So it requires minimal setup and can deliver very rapid ROI. We have fully integrated the planning process with our execution and business intelligence systems to drive continuous improvement throughout the enterprise. CRM / SCM Integration As the bottom flow shows, Configurator works seamlessly with CRM / Sell-side applications and Supply Chain fulfillment applications to establish customer needs and drive them through the product configuration into manufacturing. Automated: Creation of Orders and Schedules Creation of BOMs & Routings Accurate Order Promising Materials Allocation & Option Dependent Sourcing Ship (or ASN) Inventory Invoice

Multi-Mode Manufacturing
Demand Variability Cost Analysis Integrated Intelligence Productivity Product Lifecycle Mgmt Planning Mixed Mode Outsourcing CTO ATO Model Shop Floor Warehousing / Transportation Contract Mfgrs Discrete Flow Real-Time WIP Visibility Suppliers MTS Seiban Asset Maintenance Planned Orders Schedule Changes Component Substitutes Resources Substitutes Sample Analyze Adjust Quality Management Service Lot / Serial Genealogy Tracking GENERIC SCRIPT – What has driven Development efforts – e-business components Mixed Mode manufacturing capability use the best process for a product family or product Integration with the entire e-business suite Advanced Planning APS Order Management OM Procurement Warehouse management system WMS Customer relations management CRM Flexibility to communicate both with the enterprise and outside the four walls The use of Portal technology and direct transaction linkage with XML Enabling the Virtual enterprise Discussion points from SCM Overview The Oracle Manufacturing solution incorporates: Efficient Manufacturing to address Personalization, Demand Variability and Supply Variability High Quality Production Partner Collaboration Demand Schedules Sequencing Configured Order Material Availability Mfg Capacity Schedules/Changes Production Status Ship Notices Invoices/Payments MES APIs, Direct Access Partner Collaboration(RosettaNet) Enterprise Shop Floor Customer Contract Mfgrs Suppliers

Flow Mfg for Cost Effective Production
Build a Mix of Models and Configurations on the Same Line Customers Production Line Sequenced POs Sequenced Demand Operation 10 Operation 20 Operation 30 Operation 40 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Bin 1 Bin 2 Kanban Replenishment Oracle® Flow Manufacturing is a comprehensive manufacturing software solution that supports flow techniques to reduce product cycle times, minimize inventories, simplify production, and improve product quality. These techniques provide manufacturing operations with the ability to respond to changing customer needs in an e-business environment. Additional Discussion points: Support Customer Requirements with Demand Management Reduce Cycle Time and Lower Cost with Line Design and Balancing Optimize Resources Balancing with Mixed Model Production Increase Customer Responsiveness by Scheduling and Sequencing Increasing Operational Efficiency with Workstation Displays Build High Quality Products with Integrated Quality Plans Simplified Production Execution with Work Orderless Completions Increased Inventory Turns with Kanban Planning Reducing Costs Across the Supply Chain with Kanban Execution Complete Integration Inventory Feeder Plant Feeder Line Suppliers Support Lean Manufacturing Practices to Reduce Cycle Time and Waste Synchronized Production

Manufacturing & Logistics Integration Efficiently Move Products from Assembly to Customers
Warehouse Management Integration Cross-dock and direct ship to / from manufacturing Comply with labeling requirements Create & track LPNs and lot / serial numbers Enable simple kitting to full bill of materials or work order jobs Support seamless configure-to-order (CTO) flow Sales Orders Mfg Operations WMS Solution Transportation Management Integration Promise orders and plan transportation based on material availability Incorporate true transit times and transportation costs into supply plan Re-plan transportation if manufacturing delays require expediting Mfg Operations Transportation Plan

Service Contracts Repository
Automatically Verify Entitlements Accelerate Response via Seamless Contract Integration Define service coverage and determine entitlements Sell different types of services on a single contract Warranties, extended warranties Usage-based or subscription-based Bill accurately based on actuals or estimates Time-based per regular service fees Usage-based per volume / incidents System routes customer based on existing info (e.g., gold-level customer) Analyze renewals for recurring revenue opportunities Customers Service Rep Instantaneous Verification Notifications Expirations Renewals Service Contracts Repository GENERIC SCRIPT – Automation of entitlement verification reduces the amount of work agents must do while on the phone and eliminates the need to manually track and uphold service level commitments. For example, when the customer calls and the service agent creates a service request to solve the issue, the system automatically looks up the relevant customer contract and sets a “resolve by” date based on the level of service the customer has purchased. The agent does not have to check whether the product is under warranty, what discounts apply to the service, or what taxes should be charged; all of that is done automatically. As a result of this functionality, Service Level Agreement (SLAs) violations are minimized resulting in lower service center costs and contract leakage can be prevented (missed opportunities to charge the customer for services performed as a result of not knowing that a contract does not apply to a certain service or that the contract has expired). Coverage Times Response Time Commitments Discounts Resource Preferences Time Zone & Breaks

Common Product Repository Ownership / Installation
Know Installed Base Configurations Capture Information From Inception to Retirement Design Specs Record Mfg, Quality and Maintenance Specifications Track the Status and History of All Changes Manage Configurations / “As Maintained” BOM Record Operational Metrics Review Resolution for Similar Products With Similar Issues Track Depreciation and Accounting Information BOM / Configuration Quality Data Warehouse / Packaging Common Product Repository Sales / Shipping GENERIC SCRIPT – Oracle’s Service solution includes a repository of data that records the design specifications, maintenance needs, quality information/data, sales/shipping information, installation/service location, configuration, status, ownership, account(s), usage and change history of customer products, software licenses, and/or other assets. In other words, it supports tracking and management of an internal asset or customer product from the time it is designed until it is retired. The product repository provides an enterprise tracking and asset management system where all inventory, project and asset-related material information is stored, providing a complete view of your assets. Users can locate materials anywhere in the system—in warehouses, on trucks, installed in the network, or on project sites or at a customer site, facilitating financial transactions using physical movements of material and equipment. The repository provides depreciating Inventory functionality which allows you to physically manage the inventory and capitalize and depreciate the cost. Knowing the exact composition/configuration of the product to be serviced enables the service organization to ensure that the needed parts are available before dispatching an engineer, that a support agent trying to solve a problem over the phone will not need to spend time asking questions about the product’s makeup, and that an in-house repair center can have a customer ship back to the service center only those parts needed for the repair. The product repository (Installed Base) is the foundation for after-market service, including regularly scheduled maintenance tasks and unplanned maintenance. It also tracks contract and warranty entitlements for the item it represents along with the usage (operational metrics) and service history. This usage data can be used to trigger service processes such as determining billing cycles and rate changes, scheduling preventive maintenance or overhauls, managing service, rental, and leasing contracts, reordering or shipping parts, and calculating product reliability. The service history data can be used to determine if similar issues have occurred with the same product before (not necessarily for the same customer) so that resolution can take place as quickly as possible. Ownership / Installation Usage / Status Maintenance & Service History

Contracts / Customer Value
Field Service Resource Planning Increase Productivity and Service Quality Issues Scheduling Criteria General Inquiries Call Backs Inspections Component Returns Replacements Field Repair & Maintenance Resource Workload Resources / Skills Products Spares Inventory Contracts / Customer Value Territories Optimizing Engine Service center efficiency can be greatly improved by automating resource utilization for resolution of any type of service issue. Resource scheduling optimization increases productivity, decreases service costs as issues can now be resolved during the very first customer visit or customer call; consequently, customer satisfaction increases as resolution times decrease. When the most appropriate technician or agent is assigned to resolve the customer issue at hand, the service level quality also increases. Automated resource scheduling is available through the following Service product solutions: Oracle TeleService, Oracle Field Service, and Oracle Depot Repair. Oracle’s Service products take the type of product, resource availability (both people and parts), resource skill sets, preferred resources defined in the customer’s service contract, and territories (not just geographical) into account when assigning work. Scheduling of the work can either take place automatically or manually to one or more service representatives. Automatic scheduling of work items can be started manually or can be run as a background process. When Oracle Advanced Scheduler is purchased as an option to the Oracle Field Service product, technician’s schedules can be optimized based on work priorities, travel times / distances, customer / technician locations, and associated costs. Costs are not financially based; they are associated to different scheduling criteria to help determine the best resource available based on the service organizations’ priorities. The lowest cost resource is the best resource for the work item. Priorities Costs Travel Time / Distance Locations / Road-Level Routing Optimize Workloads & Schedules

Identify Resolution Needs Create Field Work Order
Field Service Deployment Reduce Repair Time & Cost, Leverage Mobile Capabilities Spare Parts Identify Resolution Needs Create Field Work Order Dispatch Field Techs Resolve On-Site Optimize Schedule Invoice Customer Debrief Mobile Capabilities Oracle’s Field Service solution provides customers with the convenience of having an item serviced on site at the most appropriate time. The request for service comes into the Oracle TeleService department via multiple channels, tasks are created to define the work and then assigned to field technicians for completion. The work schedules are optimized with the optional Oracle Advanced Scheduler product as discussed in slide 18 (2nd positioning point); Advanced Scheduler also takes spare parts availability into consideration when optimizing the technician’s schedule so that he arrives at the customer site with the needed parts on hand and is able to resolve the issue during the very first customer visit. The technician’s schedule is then dispatched to their Mobile/Wireless device (laptop, phone, PDA) along with real-time information concerning the customer and the task at hand. (The next slide discusses the mobile/wireless devices technicians can utilize in the field). These mobile/wireless solutions can be purchased as add-on solutions to the Oracle Field Service product. The add-ons include Oracle Mobile Field Service and Oracle Wireless Field Service. The dispatcher is able to monitor the schedules, activities, and progress of service representatives to maintain a proactive customer service approach. Different grids can be used to visualize the planning and status of activities such as a daily view (Plan Board), view over a period of time (Gantt Chart), or a geographical representation (Map). The dispatcher can also easily re-prioritize work assignments for technicians if a work item becomes escalated or if a technician is running late with his current job and cannot make it to his next one on time as the application allows the technicians to communicate their work progress to the main office. An automated escalation process also exists which increases customer satisfaction because it allows for work to be re-prioritized to meet SLAs before it becomes an issue for the customer. Once the technicians complete their tasks, they debrief on the activities performed at the customer site (time, materials, and expenses) which automatically updates the customer’s installed base with any new part information including product usage (counters) and the service organizations’ inventory (spare parts). As discussed earlier, the debrief information is also used to automatically bill the customer based on the entitled discounts and labor/material rates of the customer’s service contract. Spare parts logistics functionality is also included with the Field Service solution. Such functionality provides the following benefits: Reduces service time with Internal Part Orders to keep the necessary parts available at all sub-inventories Tracks defective parts recovery to refurbish them for reuse Decreases surplus spares inventory with Excess returns Decreases inventory costs by Automating an Authorized Stock List (ASL) A company can also expand their service delivery options by providing wireless access to technicians in the field. Technicians can view and update their work schedule, access customer information to speed resolution of issues, update product and issue information, order parts remotely, and report on activities performed for the customer all real-time. By enabling real-time information access and updates between the field technician and the central office/data repository, issues are resolved more efficiently, billing cycles are lowered, and escalated issues can be handled more quickly as they arise. Two different modes are available for communication between the technician and the central office: Disconnected Mode : The Oracle Mobile Field Service Laptop and Palm applications are disconnected which means that they synchronize data with the CRM Enterprise database when they are connected to the database. These applications allow the technician to understand the customer’s needs prior to arriving at the customer site by viewing their Installed Base details. Additionally, the laptop application allows the technician to order necessary spare parts to resolve the customer issue and to print service reports for the customer at the customer site. Connected Mode : The Oracle Wireless Field Service (phone and PDA) application is connected which means that it is always connected to the CRM Enterprise database. This application allows the technician to understand the customer’s needs prior to arriving at the customer site by viewing their Installed Base details. Additionally, the technician can provide service coverage details to the customer prior to performing service, reduce driving time by accessing route details, and order necessary parts to resolve the customer issue. Once the technicians complete their tasks, they debrief on the activities performed at the customer site on their mobile devices (time, materials, and expenses) which automatically updates the customer’s installed base with any new part information including product usage (counters) and the service organizations’ inventory (spare parts). As discussed earlier, the debrief information is also used to automatically bill the customer based on the entitled discounts and labor/material rates of the customer’s service contract. View and update schedule Access service levels Update product / issue data real-time Order parts remotely Report time, material and expenses incurred Access Options: Wireless connected Disconnected w/ periodic synchronization

Manage Product Returns Support Complete Logistics & Repair Processing Needs
Direct Product Return Identify Resolution Needs In-House Repair Generate RMA Receive and Inspect Estimate and Approve Plan and Schedule Repair, Refurbish, Reclaim Debrief and Bill Store, Ship Exchanges Identify Resolution Needs Send Loaner or Exchange Shipping / Receiving Contracts Mfg & Inventory Human Resources Billing Oracle’s Depot Repair solution provides service organizations with the ability to manage returns of various types to minimize the negative impact on their customer’s production. The Depot Repair solution automates the tracking of returns for both in-house repairs and exchanges. It tracks repair activities from the moment an item is received to the moment that a corresponding item (repaired, substituted, new, or loaned) is shipped to the customer and the customer is invoiced. It enables repair centers to create and track repair orders, generate return material authorizations (RMAs), assign repair work orders to the appropriate technicians, capture and process the repair activity, ship the repaired/refurbished/new/loaned products, and invoice customers in accordance with contractual provisions for work delivered. Depot Repair integrates with Oracle Inventory, Order Management, Work in Process (WIP), Receivables, and other Oracle applications to deliver complete views of the customer, products, and service histories to anyone involved in the repair process. “Exchanges” capabilities allow for the tracking of loaners and exchanges that do not necessarily need to be repaired. Monitor Return of Damaged and Serviceable Products Perform diagnostics and job estimates Execute shipment back to customer and invoice for services rendered Track Repair Status and Actual Costs Automatically Update Product Configuration and Repair History

Dispatch Technicians & Perform PM Improve Spare Parts Planning
Installed Base Preventive Maintenance Support Planned Maintenance & Reduce Breakdowns Define programs, including default schedule, required resources, and covered items Link programs to Contracts to initiate coverage Auto-generate field work orders Debrief time, labor & materials Invoice customer Feedback results to plan to adjust timing of next PM activity Automate stocking rules Manage excess inventories Utilize automatic replenishment rules based on lead times Dispatch Technicians & Perform PM Create PM Programs Optimize Schedule Improve Spare Parts Planning Debrief & Invoice Auto-generate service requests and tasks based on plans Assign resources, including spare parts and equipment View customer and PM work info remotely Execute PM against established procedures

Outsourced Manufacturing Challenges Less Visibility, Less Control, Conflicting Information
ATP based on supplier capacity and availability of optional components Communicating configuration changes to multiple supplier tiers Enforcing compliance to mfg instructions and methodology Capturing the “as built” genealogy and product traceability information Tracking and reporting WIP and order status to customers Enforcing product quality standards Need Script… Communicating shipping instructions, authorizations, and notifications Managing and monitoring inventory levels (WIP, etc) Tracking in-transit shipments from supplier to customer All the “Headaches” of In-House Manufacturing are Amplified

Example: Drop Ship from Partner to Customer
Order A Place PO for A Give A to Carrier Ship Component Drop Ship A Place PO for Component Schedule Carrier Configure Product ‘A’ Manufacture & Assemble Produce Components Schedule & Route Pick-Up & Deliver Customer OEM Manufacturing Partner (MP) Carrier Need Script… Component Supplier OEM Process Description Outsources 100% of assembly Orders components for delivery to Partner Asks Partner to drop ship to Customer Manages shipping and customer billing

Outsource with Confidence Achieve Total Visibility to Outsourced Mfg & Logistics
– Partner Setup – Implement Control from the Start – Outsource Mfg – Seamlessly Extend Your Operations Model Manufacturing Partner (MP) as an internal org to simulate material flow, order processing, and mfg processes Define BOM and routing to build assembly at MP location Create operations that mimic process at MP so status can be tracked Define sourcing rules to buy assembly from MP and buy components from Supplier Capture sales order to create MP demand for assembly and Supplier demand for component Define a single, holistic supply chain plan that includes MP and Supplier capacity/availability Run plan and implement planned order as a work order for MP work (auto-creates assembly PO with customer ship-to) Implement planned order from Supplier (auto-creates component PO with MP ship-to) Setup -- Control the build / assembly process Model Manufacturing Partner (MP) as an internal organization Simulate material flow, order processing, and manufacturing processes Define BOM and routing to build assembly at MP location Create operations that mimic manufacturing process at MP Track progress of work as if they were occurring in your own facility Define sourcing rules Buy assembly from MP Buy components from Supplier and transfer to MP Outsourcing Capture Customer sales order for assembly Creates MP demand for assembly and Supplier demand for component Automatically collect capacity and availability data from MP and Supplier Define a holistic supply chain plan that includes MP and Supplier Run plan and implement orders Implement planned order for assembly in MP organization as a work order Automatically flow from work order to PO (Ship-to location is customer address) Implement planned order for component replenishment from Supplier Automatically flow from work order to PO (Ship-to location is MP address)

Outsource with Confidence Achieve Total Visibility to Outsourced Mfg & Logistics
– Shipping – Manage Final Delivery to Customer – Monitoring – Report Progress with Accuracy Automatically flow ship-to requirements (address, promise date, etc.) from Sales Order Select carrier based on shipping method, price, routes, availability Schedule pick-up from MP and delivery to Customer Track shipments en-route (punch-out to carrier systems) Allocate freight costs back to Sales Order line item For each MP operation determine required tracking level. Notification of: Moves and Completions ASNs Physical Receipt of Goods – Invoicing – Auto-Create Invoices for POs Progress Tracking – Never Lose Sight of What’s Going On For each MP operation defined (plus scraps, over/under consumption), determine required tracking level Notification of Start Notification of Move Notification of Completion Advanced Shipment Notification (ASN) Notification of Physical Receipt of Goods Coordinate Shipping of assembly from MP to Customer Automatically flow ship-to requirements (address, promise date, etc.) from Sales Order Select carrier based on shipping method, price, routes, availability Schedule pick-up from MP and delivery to Customer Track shipments en-route (punch-out to carrier systems) Allocate freight costs back to Sales Order line item Invoice is created against assembly PO; invoice is created against component PO Pay only for amount received (e.g., received 20 assemblies against a total order of 40 assemblies) Pay only for amount received (e.g., received 20 assemblies against a total order of 40 assemblies)

Facilitated Supplier Communications Enable Suppliers to have Easy Access to Critical Info
OEMs Send: Purchase Orders Schedules Bill of Materials (BOMs) Operation Instructions Drawings & Attachments Export entire structure to Excel Mfg Partner Send: Adv Ship Notifications (ASNs) Quality Results PO Acknowledgements Need Script… Attach items to POs

Serial / Lot Genealogy and Tracking Always Know the Source and Placement of Each Part
Manufacturing Partner Server (S.No. 512) Ireland Composition Where Used Suppliers Boards R’ Us PCI Board (S.No. 717) Storage (S.No. 929) Austin Acme Chip Fab 12 CPU (S.No. 232) Memory (Lot No. 115) Disk Array (S.No. 892) E. Storage Austin, TX Need Script… Nippon Fab Japan Disk A (S.No. 676) Disk B (S.No. 339) SKD Co. S. Korea Trace a customer shipment back to the original source Trace a lot or individually serialized product through supply base

Extend Reach Through 3rd Party Services Control Scheduling and Meet Contractual Obligations
Personalized Field Technician Dashboard Search based on multiple parameters View KPIs View spares info, order parts, return defects Field Service Technician Portal introduces the following features: Toggle between hide / show to view summary vs. detailed SR info Create additional SRs, tasks & notes

Integrated Throughout Entire Offering… Business Intelligence
Corporate Governance and

Project & Contract Mgmt Order Mgmt & Warehousing
Foundation: Common Data Model A Single Source of Truth 3rd Party & Legacy Apps Product Development Planning & Purchasing Single definition of customers, suppliers, products, etc. Immediate access to accurate, complete global information Consolidate data from multiple systems Scale to meet growth demands HR & Finance Manufacturing Customers, Suppliers, Products, … Project & Contract Mgmt Order Mgmt & Warehousing Another differentiator for Oracle is the common data model. All data is stored in a single database which provides a single version of the truth (no more battles over who has the most current and accurate information). [With Oracle Financials this enables the new daily business intelligence feature]. Consolidating data into secure, scaleable repositories allows better, more reliable, faster decision making from analysis of consistent, aggregated: Point of Sale and Other Data From Retailers Global Sales Forecast Data Procurement Data on Indirect and Direct Spending Headcount, Payroll Travel Costs and Other Expenses Inventory Availability Manufacturing Capacity/Throughput Plant Performance & MRO (Maintenance, Repair and Operation) Data Asset Maintenance Sales & Marketing Service

Deliver Daily Business Intelligence Real-Time Access to Complete Business Information
What are the project schedule and budget impacts of design change? How can I best adjust to planning exceptions? Intelligence, and the ability to drive decisions based on data across your entire supply chain is the basis of continuous improvement. Supply Chain Intelligence helps you daily address your business results and answer questions like those listed here. Oracle’s business intelligence approach is designed to be used by everyone in your organization. It enables management by objective, fact and exception to track your company’s key metrics at any level and ensure timely notification of potential problems. How are supplier deliveries impacting my on-time delivery capability? How should I allocate production resources to meet variable demand? How is my backlog of open service requests changing? Objective: Set institutional targets Fact: Provide performance-based metrics Exception: Continuously evaluate performance Manage By…

Business Intelligence: Timely, Accurate, Relevant
Flexible Time Periods Flexible Comparisons Daily updates on key performance indicators Actionable info on cost savings and incremental revenue opportunities Role-based views: Order Mgmt Planning Purchasing Manufacturing Logistics Service Product Mgmt Real-Time Results Oracle’s integrated intelligence is easy to use and can be designed to meet your key business processes. You can provide portal access to any employee or trading partners outside your company so all involved parties can monitor and measure performance. With this easy to use portal, you can provide reports, analysis, and graphs – or any other means to highlight performance measures. Graphs Links Performance Measures Reports

Sarbanes Oxley Act (SOX) EU Anti-Fraud Directive (Mar 2004)
Corporate Governance A heightened business focus on accuracy in reporting to investors brought on by recent fraudulent practices of several major corporations Sarbanes Oxley Act (SOX) EU Anti-Fraud Directive (Mar 2004) Senior mgmt personal liability for financial result accuracy Senior mgmt and outside auditor attestation to the effectiveness of internal controls Accelerated SEC filing deadlines Collective Board liability for financial result accuracy Senior mgmt and outside auditor attestation to the effectiveness of internal controls Select Corporate Governance Code Sarbanes Oxley: 2002 US legislation designed to increase financial reporting quality and executive accountability beyond GAAP requirements International Accounting Standards: A comprehensive set of financial standards comprising an international “GAAP” International Stock Exchanges adopting IAS include: LSE, Paris Bourse, Frankfurt, Sydney Both SOX and IAS (IFRS) talk to the investor’s and external stake holder’s rights to know what is going on in a company, but they each attack the problem from different angles. SOX demands that management “tell it like it is”, and augments the policing system to ensure they do. Augmentation in the policing system includes… Polarization of management and external audit firms (Report to board, No consulting) so that firms are unequivocally checking the management numbers on behalf of the investors. Supervision of audit firms (PCAOB) Specification of management individuals (CEO, CFO) responsible for company filing, with accompanying penalties for failure Certification by both mgmt. and external auditors that mgmt. has a system in place to ensure that the company is run to board (investor) approved requirements. (Internal Control) Control over stock analysts and their ability to hype stock. Additional resources for the SEC to enable enforcement SOX requires that companies fairly present their numbers. It does not permit companies to hide material issues behind loopholes in US GAAP. However, it does except US GAAP to be the norm. IAS (IFRS) addresses the absence of a standard GAAP across the different nations of the world. The European Union currently has several different sets of accounting standards, and mandated use of IAS by 2005 for standardization and comparability. Other countries followed suit, and it is intended that differences between IAS and US GAAP will be eliminated. For companies reporting on stock markets outside the US, IAS means Changing your accounting principles to IAS For some, a new requirement to report both to IAS and local GAAP (just as US companies overseas operations often report to local and US GAAP) Dealing with the fact that many of your subsidiaries will be moving from different local GAAPs to the same IAS. For all U.S. companies and companies issuing securities in the U.S. For all E.U. companies and companies issuing securities in Europe Oracle Helps Drive Compliance through Visibility, Control, and Efficiency

Corporate Governance: Visibility, Control, Efficiency
Identify issues early Enable real-time information access & performance mgmt Consolidate global financials Unify corporate reporting Integrate and centralize business operations Document processes and support compliance View, test, and certify internal controls Manage corporate communications Provide Single Source of the Truth Centrally Manage Policies and Procedures Efficiency Consolidate and reconcile information rapidly Automate business processes and broaden use of self-service Simplify IT infrastructure Leverage best practices from different groups / regions Your Company Orders Customers & Suppliers Invoices Payments Requisitions Automate Processes and Extend to Customers & Suppliers

All Built on Leading Technology
Database Server Application Server

Collaborative development with integrated BOM management and controlled ECR / ECO processing Establish and Sustain Profitable Innovation Multi-tier collaborative planning, complete CTO process with flow mfg for mixed model production Enable Lean, Agile Supply Networks Comprehensive entitlement verification, preventive maintenance, spares planning, and field service Manage and Grow a Profitable Service Business This slide provides a summary of all five of Oracle’s key positioning points for complex equipment manufacturers. It includes the key capabilities that support the positioning point. Complete support for tiered, outsourced manufacturing; 3rd party customer service coordination Command and Control Outsourced Operations …Integrated Business Intelligence & Corporate Governance

Footprint: High Tech - Complex Equipment
Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Command and Control Outsourced Operations Manage and Grow a Profitable Service Business Shorter product lifecycles coupled with increasing design complexity and product customization Long order-to-deliver cycles for customized complex configurations Industry-wide emphasis on differentiating systems with value-added services Sustaining service expecta-tions set during slump Complex coordination of global outsourced manufacturers and regionally located service providers Drivers Inability to place the right innovation “bets” to sustain corporate growth Missed or delayed product introductions Inability to rapidly respond to constant config changes Difficulty ensuring consistent, high product quality at reduced costs Unplanned asset downtime disrupts customer mfg / assy Escalating inventory carrying costs Poor visibility to outsourced production Difficulty ensuring customer satisfaction when using 3rd party services Challenges Product Lifecycle Mgmt Product Data Mgmt CADView-3D Configurator Sourcing Project Management Project Portfolio Analysis Project Collaboration Proj Resource Mgmt Supply Chain Planning Collaborative Planning Demand Planning Advanced SC Planning Inventory Optimization Global Order Promising Order Capture Order Management Configurator, Adv Pricing Production & Logistics Manufacturing Scheduling Discrete / Flow Mfg Inv & Warehouse Mgmt Transport Plng & Execution Customer Care iSupport TeleService Interaction Center Service Contracts Service Execution Field Service Mobile Field Service Advanced Scheduler Spares Management Depot Repair Supply Chain Planning Collaborative Planning Advanced SC Planning Inventory Optimization Global Order Promising Outsourced Mfg & Logistics Internet Supplier Portal Discrete Mfg, Inv Mgmt Order Management Transportation Execution Outsourced Service Mgmt Service Contracts iSupport, TeleService Field Service, Spares Mgmt This solution map describes the key functions, metrics, Oracle products and partner software associated with each key Industrial Manufacturing process. You can see that Oracle provides a complete solution for all aspects of your company. In some cases, we partner with leading industry providers to ensure a complete solution is available. Oracle Enablers Enterprise Infrastructure: Procurement, Financials, Human Resources, Projects, Marketing, Sales Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearning Business Process Integration: Supply Chain Trading Connector for RosettaNet, Adapters IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite Services: Consulting, IT Outsourcing, Education, Support

Evolution of Oracle Applications in High Tech
High Technology Capabilities Evolution of Oracle Applications in High Tech Base Differentiators… New in 11i.9… New in 11i.10… Real-Time Shop Floor Visibility Configure to Order Supplier Collaboration & VMI Inventory Postponement and Optimization Lot/Serial Genealogy Collaborative Planning Advanced WIP & Yield Mgmt Planned Stocking Points End Item Substitution Allocated ATP Lead to Quote to Order Mgmt Waterfall Analysis Service Contracts Integrated Service Mgmt RosettaNet Transactions Product Data Mgmt Consigned Inventory WIP Serial Tracking Partner Program Mgmt 3rd Party POS Data Import (to calc Promotional Accruals) Outsourcing Support for Multi-Level Configurations Advanced Configuration Modeling Resource Centric Scheduling Workbench Integrated Maintenance and Production Planning Quote & Proposal Mgmt Product Data Hub Project Portfolio Analysis Global Sales & Operations Planning Inventory Optimization Analytics Channel / Partner Management International Drop Shipments Transportation Planning Customer Consigned Inventory Option-Dependent Sourcing Procurement Contracts Special Pricing (Ship & Debit) Automated Spare Part Return and Repair Processes RFID Transaction Support Trade Planning and Execution Deal Registration Oracle continues to expand the already solid solution that exists today through every software release. Key capabilities for High Tech include: For semiconductor manufacturing, real-time shop floor visibility with increasing capabilities such as lot/serial geneaology tracking and WIP serial tracking Configure to order for customer driven product selection Outsourcing management support including supplier collaboration, vendor managed inventory and outsourcing support for multi-level configurations 6

Lower Total Cost of Ownership (TCO)
E-Business On Demand Run on a Single Global Instance You Manage: Oracle Manages: Roles: Needs: Availability Security Performance Change Problems App Admin DB/AS Admin Sys Admin HW Admin 50% Lower Cost 50% Better Svc Core Competence Predictable Cost Consolidate Data Centers and Databases Low Cost Linux Hardware Standardized Open Integration Platform 3x Faster, 5x Cheaper Easy to Automate en Mass Highly Reliable We have the traditional model, or Oracle can manage your technology needs at Oracle’s datacenter or at your own locations. So Why E-Business Suite Outsourcing? A monthly fee for predicable expense – and CEOs / CFOs appreciate knowing the cost to run their application systems each month with no surprises. At a minimum you receive: 50% better service faster implementation which equals accelerated time to ROI access to the latest functionality no constraints dealing with people, training staff, and infrastructure issues all of this without worry -- it is taken care of by the software expert, as it should be. Standardized Open Integration Platform Business events system exposes integration points as standards-based OAG documents, on a JMS queue, or as Web Services Standard B2B Protocols such as OAG, RossettaNet, HL7, EDI Common integration repository catalogs and automatically applies enhancement patches to all E-Business Suite Interfaces while making them available for secured common access Business Events Infrastructure Industry Standard Protocols Centralized Integration Repository Oracle’s Experience with Linux Customers, Suppliers, Products, … Production Midtiers 100% Linux Production DB RAC Cluster (Unix) Demo Environments 100% Linux Development 100% Linux Outsourced Customers 70% Linux Simplify B2B Integration, Application Connectivity, and Process Management

Lower Total Cost of Ownership Run on a Single Global Instance
Support Global Operations 30 Languages Multiple Currencies Customers in 100+ Countries All Languages Installable in Same Unicode Instance Support for Statutory and Customary Local Requirements Oracle can support the needs of global complex equipment manufacturers. 6

Lower Total Cost of Ownership Standardized Open Integration Platform
Provide a unified view of customer data Protect and share information assets across all systems Standardize, cleanse and enrich data Synchronize data in near real-time Support key interactions Orders Contracts Service history Leverage pre-built analytics Siebel PeopleSoft Customers, Suppliers, Products, … Broadvision Legacy Example: Customer Data Hub

Customer Case Studies So how is Oracle doing at meeting customer needs in complex equipment? Let’s see….

Leader in test devices, semiconductors, and chemical analysis tools
$ 7.18B revenue in FY04; customers in 120+ countries; 29K employees Live on Oracle for global 24/7 operation Quoting, Adv Pricing, Order Mgmt, iStore, Adv Supply Chain Planning, Purchasing, iSupplier Portal, Mobile Supply Chain Applications, Financials Enterprise-wide implementation of Oracle Applications planned for: 37+ manufacturing sites 3 financial centers 15K named users globally, 5K concurrent users, 100K concurrent requests daily Entire semiconductor business on Oracle ERP Runs optimized ASCP for 75K+ items & 6M+ resource requirements Runs worldwide order mgmt and manufacturing operations using real-time synchronization to OSFM and constrained Global ATP Manages over 1,000 shipments daily using Mobile SC Apps First semiconductor company to use EDI-driven Oracle Release Mgmt for VMI 4 distribution centers 6 customer service centers (Source is summary of Supply Chain Customers results compiled by Jeff Wexler of Oracle.) Oracle E-Business Suite met over 4,500 Agilent business requirements without any customizations

American Power Conversion Corp.
$1.4B world leader in IT equipment power protection 16 manufacturing & 25 distribution sites worldwide, serving 120 countries Live on 11i -- single data center in Rhode Island Discrete Manufacturing, Advanced Supply Chain Planning, Order Mgmt, iProcurement, Financials, Human Resources, Self Service HR Adding Configurator, Advanced Pricing, Mobile Supply Chain Apps Consolidated 13 systems into a single global instance 3200+ users (700 concurrently), 3600 order lines/day across 50+ organizations at 10 sites Add Script… “Having an integrated set of application modules in a single instance…you get a global perspective in one place in real time.” – Lisa Sipe, CIO Reduced raw material and finished goods inventory by 56% Match customer requirements to global availability

Live on 11i – single global data center
$419M worldwide leader in high-performance open storage networking solutions 1020 employees across the U.S., Europe and Asia Replaced Siebel and SAP with Oracle Live on 11i – single global data center Sales, Incentive Comp, Order Mgmt, Configurator, Discrete Mfg, Warehouse Mgmt, TeleService, iSupport, Depot Repair, Svc Contracts, Procurement Financials, Human Resources (inc self-svc), Payroll “McDATA's challenge of growing international business operations can only be met with a flexible open system like Oracle E-Business Suite. Buying disparate "best-of-breed" applications requires costly and time-consuming integration services. Oracle offers a seamless, fully integrated, modular business solution.” – Don Wenninger, CIO 2004 revenue data On-time shipments increased from 79% to more than 97% Reduced total inventory 75% Reduced service operations cost structure by 50%

Leading provider of standards-based IP communications solutions
Alcatel e-Business Networking Division is a division of Alcatel with a customer base of 500,000+ customers Live on 11i Adv Supply Chain Planning, Demand Planning, Procurement, Discrete Manufacturing, Order Management, Human Resources, Financials Reduced break-even point for new product launch (new switches line) by more than 40% “Because of the visibility we now have across our virtual supply chain, we have been able to significantly reduce inventory liability. Instantly sharing information about changes in demand or supply with our outsourcing partners gives us all the most precise view of where bottlenecks may occur. To me, this is a real competitive advantage.” -- Gary Schliekelman, Director of Planning Decreased inventory levels by 50%; expect $15M annual savings Reduced planning cycle time by 75%

Establish and Sustain Profitable Innovation Enable Lean, Agile Supply Networks Manage and Grow a Profitable Service Business Command and Control Outsourced Operations Let’s now drill down on the positioning of these four areas (which form the framework for the next 25 slides through slide 45), starting with the ability to drive collaborative contracting.

Information Age Applications

Appendix: RosettaNet Offering

Current Integration Shortcomings Latent, Linear Information Flow
Information Delays and Distortion Poor Planning Synchronization High Forecast Variability Lacking Visibility to Exceptions Missing Inter-Enterprise Strategy Sub Assy Fab OEM Comp Mfg EMS Comp Mfg Large Supplier Small Supplier 3PL Today’s business processes require that companies respond to customer and supplier requests in real-time. Implementation of business processes such as straight through processing , collaborative product development, real-time order status are becoming the norm for leading High Tech Companies. Yet many companies still have bottleneck in the middle of their real-time business processes: their batch EDI systems. These EDI systems are simply unable to respond to customers requests and demands for today’s real-time business processes. Batch systems that run only once a night simply cannot support the need for real-time business process integration across the supply chain, nor can they provide your executive management Global Business visibility across your entire company. Late Mis-Routed Incorrect 6

RosettaNet At-a-Glance Developed by High Tech for Fast-Paced Business
Agreed-Upon, Processes for Business Over the Internet XML-Based Standards to Support Processes PIPs: Defined business processes between trading partners TPAs: Electronic “business contract” between trading partners RNIF: Document exchange process; specifies authentication, etc. Advantages Eliminate information latency; provide global, real-time visibility Achieve high degree of scalability, extensibility and flexibility (not EDI) Decrease transaction costs over time Architected for the business user High Tech Specific Standards Consortium Over 500 High Tech Corporate Members IT, Electronic Components, Semiconductor Manufacturing, Solution Providers Goal is to enable standard B2B processes Processes, Not Protocols Automate processes to increase speed Focused on Business, not Technology Addresses High Tech Issues Globalization, Cultures, Time Zones Time-To-Market, Inventory, Demand Forecast Extend Process Integration Beyond Your Company 6

Trading Partner Management Business Process Management
Oracle’s RosettaNet Solution Your Company Customers Trading Partner Management Business Process Management Real Time XML RosettaNet PIP Check: Contents Process Transport A d a p t e r Security Validation Transform A d a p t e r RosettaNet PIP Check: Contents Process Transport XML XML TPAs Logging Monitoring Transaction Mgmt TPAs Against Against Run-Time / Common Services Real Time XML Here we have a cross section of a trading network. For example, Compaq computers (“customer”) may be sharing forecasts with SCI (“company” in this picture) who, in turn, buys hard drives from Seagate (“supplier”). In this example, there are many collaborations across a multitude of application domains that need to be managed in real-time—collaborative forecasts, product master notifications, inventory status and PO requests. A key point to make here is that a customer in one business dynamic is someone else supplier. Parties, Roles, and Relationships change according to the specific business dynamic. Unlike EDI, with RosettaNet we manage the collaboration (process choreography) not the technology. The PIP stays the same while the trading partner agreement may change. The PIP is validated against the TPA. Thus the business users can fly on autopilot while PIPs are in compliance with TPA and manage by exception. Here’s some additional points to make Integration is Business Critical Business Need Better Visibility on Customer Demand Tighter Linkages/Differentiation with Key Customers Greater Business Efficiency Key Applications Demand and Supply Chain Optimization Customer Relationship Management Lifecycle Management Goals Save Time Reduce Costs Achieve / Sustain Competitive Edge Shortening supply chain cycle optimizes outcomes and optimizes investments Automating interaction, more integral to customers business Cost savings. Save time, reduce costs, and establish linkages with customers to gain competitive advantage Suppliers Oracle 11i Apps Oracle.com

Oracle Trading Partner Solution Adaptive Infrastructure for Dynamic Businesses
Seamless Connectivity Between Public & Private Processes Private processes trigger public processes Pre-built mappings for in and outbound process integration Support for existing IT infrastructure Rapidly Achieve Critical Mass with Trading Partners Empower business users to initiate and manage relationships Leverage same PIP for multiple partners Integrate to legacy / 3rd party systems via adapters Small-to-medium enterprise focus; self-service and affordability Seamless Infrastructure for Dynamic Businesses A comprehensive RosettaNet solution enables coordination of private processes with public processes. Private processes comprise all the internal workflows within the enterprise typically dealing with an approval process. Once the private process has been completed and approved, an inter-enterprise public process between trading partners is initiated by 9iAS Integration. Oracle has pre-built mappings into 11i for out-of-the-box and is the only solution provider with a complete end-to-end solution. In addition, Oracle supports many additional collaboration standards – ebXML, EDI, OAG, etc. – and has adapters for many technologies and 3rd party applications There are two additional components that enable dynamic business process coordination both inter- and intra-enterprise: Process management: 9ias has a process management engine that allows the business user to setup and execute private process workflows that span both Oracle and non-Oracle applications. 2.) pre-built mappings: if the customer is running 11i, the pre-built mappings provide complete integration into the applications domains that manage the business function of the PIP. Achieving Critical Mass Oracle has taken a holistic approach for RosettaNet. We have complete capability to get even the smallest suppliers up and running very quickly. All the core capabilities to power a RosettaNet-based trading network—portal, business intelligence, monitoring, transformation engine, Real Availability Clusters--- are built in components of 9iAS. Lastly, with RosettaNet a business user can initiate and manage their relationships with trading partners through self service profile and TPA management. 6

Security/RNIF Support
Oracle Trading Partner Solution Complete on Integrated Technology Stack Integrated tools for easy TPA creation, management & validation Integrated business intelligence and data analysis Integrated business portal for visibility and transactions Integrated workflow and process management tools Integrated trading partner performance (TPA, real-time status, etc.) Integrated security and RNIF support without service fees 100% Pre-Integrated $$$ Integration Solutions with bolt-on single vendor solutions are fragmented, difficult to get parts to work well together, difficult to maintain and operate. Not unusual for single vendor solutions to have BPM tool for message flows, for human interactions notifications authorizations and exceptions, message oriented middleware for transformations, B2B engine for protocol. Customer has to create linkages between components. Saving cost and improving efficiencies are not aligned with these point tools % of IT Budget. Bus Proc Mgmt B2B Integration Web Services Manage Business Collaboration vs. Manage Technology & Maintenance Intelligence TPA Mgmt Middleware Portal & Workflow Security/RNIF Support 6

Sample Product Info Flow Distribute Product Master
2A12 PIP Capability: Enables supplier to create product master and distribute device-level product identification to a buyer Collaboration Supplier (OEM) Specify Requirements Real Time Create Prod Master Notification Check w/ Mfg Product family attributes Location-specific data Procurement data Product lifecycle info Workflow Driven Check w/ Supplier Approve Send Message 2A12 PIP Receive Message Process Prod Master Notification 3A2 PIP 3A4 PIP Buyer (Customer) GENERIC SCRIPT – On a high level, we can see a coordinated flow of command between between the workflow driven private processes and corresponding trigger points to initiate public processes. The flow between private and public continues to occur through the entire sequence of events that constitute a PIP. Load MRP Check Prod Availability Procure Product Workflow Driven

Sample Planning Flow Collaborative Forecasting
4Ax PIP Capability: Process for developing collaborative forecasts between buyer and supplier Collaboration Buyer (OEM) Check w/ Sales Start Collaborative Planning Real Time Check w/ Channels Workflow Driven Check Inventory Send Forecast Receive & Analyze Response Create Forecast 4A4 PIP 4A5 PIP Receive Forecast Check w/ TPA & Create Response Send Response Supplier (Component) GENERIC SCRIPT – On a high level, we can see a coordinated flow of command between between the workflow driven private processes and corresponding trigger points to initiate public processes. The flow between private and public continues to occur through the entire sequence of events that constitute a PIP. Check w/ Mfg Adjust Forecast Workflow Driven

Sample Manufacturing Flow Work In Process (WIP) Reporting
7Bx PIP Capability: Process for supplier to distribute work in process information to buyer Collaboration Supplier (Component) Check Inventory Create WIP Notification Real Time Workflow Check w/ Supplier Check w/ Mfg & Assy Send Message Receive Error Notice 7B1 PIP Receive Message Create & Send Error Notice Buyer (OEM) GENERIC SCRIPT – On a high level, we can see a coordinated flow of command between between the workflow driven private processes and corresponding trigger points to initiate public processes. The flow between private and public continues to occur through the entire sequence of events that constitute a PIP. Analyze Notification Check for Errors Workflow Driven

Oracle Industry Solutions Complex Equipment Manufacturing

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