3 Session AbstractThursday February 5, 2015 at 1:30pm in Sequoia RoomWithin an industry and company context, engage your customers with impactful questions. This session highlights cross-functional KPI’s across Supply Chain, Order Management, Procurement, and Finance. JD Edwards has prebuilt adapters that load the prebuilt data warehouse of Oracle Business Intelligence Applications. Take the journey from transaction-to- action by the vehicle of Oracle Analytics.
4 Agenda Oracle Business Analytics Strategy Scope Objectives Approach BI ApplicationsOn Premise, Cloud and Hybrid DeploymentBI Cloud ServicesOracle Cloud Partner ProgramsWe are talking about forming partnerships inside the company, aligning the supply chain function with procurement and finance.Analytics without levers of action is useless.The scope for this discussion is broadCustomer Order Entry to Paid InvoicePhysical Material and Services DeliverySupplier’s Supplier to Customer’s CustomerAggregate Market Demand to Order FulfillmentWhat is supply chain? A set of organizations (including procurement/sourcing) directly linked by upstream and downstream flows of products, services, finances, or information from a source to a customer.
5 Oracle Business Analytics Strategy Any Data, Any Source,Any FormatIntegratedSuite ofAnalytic ToolsIntegratedSuite of EPM & Analytics AppsOn Premise, On Cloud, On Mobile
6 SCOPE OBJECTIVES APPROACH Application System Function Timing Market RegulationMarketInitiative+OBJECTIVESRecordsReportsProcessesActionsMeasureImproveDecisionAPPROACHOBIAOMCSOTBI-EBICSEnableVisionCharterDeploy
7 Oracle BI Applications What Are They?CRM ANALYTICSERP ANALYTICSSALESPipeline AnalysisForecast AccuracyUp-sell/Cross-sellCycle TimesLead ConversionSales Team EffectivenessMARKETINGCampaign EffectivenessCustomer InsightProduct PropensityMarket Basket AnalysisCampaign ROISERVICE & CONTACT CENTERService EffectivenessCustomer SatisfactionResolution RatesService Rep EfficiencyService CostService TrendsFINANCIALSGeneral LedgerAccounts ReceivableAccounts PayableFixed AssetsProfitabilityExpense ManagementHUMANRESOURCESEmpl. ProductivityCompensationTalent ManagementRecruiting AnalysisLearning AnalysisWorkforce ProfileTime & LaborPROCUREMENT & SPENDDirect & Indir SpendSourcingBuyer ProductivityContract ComplianceSupplier Perf.Purch. Cycle TimeEmployee ExpenseMANUFACTURINGPlan to ProduceWork OrdersInventory and WIPQuality, Resource UsageBill of MaterialCostingKanbanPRICEPrice SegmentsPrice Waterfall AnalysisDeal Life CycleDeal Desk AnalysisProduct Pricing PerformanceLOYALTYMember DemographicsMembership TrendsPromotion CostPromotion EffectivenessPoints AnalysisPROJECTSProject Funding and BudgetProduct CostProject RevenueProject BillingProject ProfitabilityResource MgmtSTUDENT INFORMATIONAdmissions and RecruitingStudent RecordsStudent FinancialsSUPPLY CHAIN & ORDER MGMTRevenue & BacklogInventory AnalysisFulfillment StatusCustomer StatusOrder Cycle TimeBOM AnalysisENTERPRISE ASSETMANAGEMENTMaintenance HistoryMaintenance CostingAsset GenealogyBreakdown & PreventiveQualityInventory
8 Oracle BI Applications What Are They?CRM ANALYTICSERP ANALYTICSSALESPipeline AnalysisForecast AccuracyUp-sell/Cross-sellCycle TimesLead ConversionSales Team EffectivenessMARKETINGCampaign EffectivenessCustomer InsightProduct PropensityMarket Basket AnalysisCampaign ROISERVICE & CONTACT CENTERService EffectivenessCustomer SatisfactionResolution RatesService Rep EfficiencyService CostService TrendsFINANCIALSGeneral LedgerAccounts ReceivableAccounts PayableFixed AssetsProfitabilityExpense ManagementHUMANRESOURCESEmpl. ProductivityCompensationTalent ManagementRecruiting AnalysisLearning AnalysisWorkforce ProfileTime & LaborPROCUREMENT & SPENDDirect & Indir SpendSourcingBuyer ProductivityContract ComplianceSupplier Perf.Purch. Cycle TimeEmployee ExpenseMANUFACTURINGPlan to ProduceWork OrdersInventory and WIPQuality, Resource UsageBill of MaterialCostingKanbanPRICEPrice SegmentsPrice Waterfall AnalysisDeal Life CycleDeal Desk AnalysisProduct Pricing PerformanceLOYALTYMember DemographicsMembership TrendsPromotion CostPromotion EffectivenessPoints AnalysisPROJECTSProject Funding and BudgetProduct CostProject RevenueProject BillingProject ProfitabilityResource MgmtSTUDENT INFORMATIONAdmissions and RecruitingStudent RecordsStudent FinancialsSUPPLY CHAIN & ORDER MGMTRevenue & BacklogInventory AnalysisFulfillment StatusCustomer StatusOrder Cycle TimeBOM AnalysisENTERPRISE ASSETMANAGEMENTMaintenance HistoryMaintenance CostingAsset GenealogyBreakdown & PreventiveQualityInventory
9 More than just dashboards and reports The value of BI Applications lies under the surfaceDASHBOARDS & REPORTSPrebuilt best practice library3000+ prebuilt reportsPre-built ETLto extract data from over 3,000 operational tablesPre-built warehousewith 360+ star-schemasConformed Dimensionsfor Cross Functional AnalysisPre-mapped metadataembedded best practice calculations and over metrics
10 Driving Bottom Line Impact Mitigate Supply Chain Risk:Visibility and drill to transactional flows (sourcing, inventory, returns, orders, cash)Analytical framework for scenario planning and loss estimationsDisaster Response to Business Continuity to Business ResiliencySupply OptimizationSupplier Management Cost and QualitySourcing Integrated with DemandInvestment in InnovationAccelerate Design to Delivery to MarketContinuous Improvement for inventory, bottlenecks, quality and complianceMeans of engaging workforce and partners.State the Objectives! Example of the vision of The Shingo Prize for Operational Excellence … three very important principles:1) Evaluating organizations for recognition requires a clearly defined, very high and universally consistent standard of excellence. 2) Assessment must determine the degree to which the principles that create excellence are deeply embedded into culture. 3) For any organization to be successful, they must be focused on a high standard of excellence (No. 1 above) and be honest in their assessment of where they are in the development of a high performing culture. These lessons have been learned by observing the sometimes successful, but mostly unsuccessful, improvement efforts of hundreds of great organizations over 23 years. When these new paradigms are well understood and acted on, cultural transformation can be accelerated. The new paradigms are: There is a clear and strong relationship between principles, systems, and tools. Operational excellence requires focus on both behaviors and results. Business and management systems drive behavior and must be aligned with correct principles. The principles associated with operational excellence and the associated Shingo transformation process apply in any industry, any geography, and at any time. These principles are ultimately most of the “Why am I doing this?” behind Lean, Six Sigma, Total Quality Management, Just-in-Time, Quality Circles, and other programs for business improvement.Visibility to Inventory, Material Flows and Asset utilizationResiliency is finding opportunity in disasters. If your supply chain survives while your competitors are impacted, can you profit?What did you learn/do after your last disruption? ResiliencyLater slide has an example of Investment in Innovation as practiced by an Oracle strategic customer, BTProcurement more a strategic buyer process, but static whereas supply chain management is dynamic and operational. There is overlap like a chain that is only as strong as each link. Critical to have shared analytics. SCM is schedule agreement. Procurement is schedule adherence.
11 Deployment Option: Hybrid Data Sources Oracle HCM Cloud & On-Premises JD Edwards, OBIACloud ServicesOTBIOracle Sales CloudScenario:Customer begins with the following on- premises applications:JD EdwardsOracle ApplicationsOBIAWants to migrate some HR functionality to Fusion HCM in the cloud, yet retain cross- functional analytics with both cloud and on- premises systems.Solution:The OBIA Cloud Adapter will extract and stage cloud data so that it can be transformed just like on-premises data sources into OBIA DW.OTBIOracle HCM CloudOracle Apps Cloud Svc. AdapterOn PremisesJD Edwards Fin, P&S, SC&OMOBIAPSFT, SEBL, EBS, Other
12 On Premise, Cloud and Hybrid Deployment Hardware, Software, Services & Support converging to flat rate bundleBI Applications for JD Edwards with Cloud Connectors (OBIA)Integrate Oracle Cloud apps content into on-premise DW for enterprise single viewBI Applications in the Cloud (OTBI Enterprise, or OTBI-E)Deeper analysis for Oracle Cloud apps with DW in the cloud, delivered as a serviceBI Cloud ServiceSelf-service BI in the cloud, built on Oracle BI EE and Oracle databaseDevelop a stream of predictable revenue that makes your business more competitive and profitableEventually, you will want as much of your business as possible to be on a recurring revenue model.BICS OTBI-E and BICS are a platform to grow your business
13 BI Cloud Service as an Aggregation Point on the Cloud In-StoreSocialContact CenterField ServiceMobileDirect SalesWebChannelManaged services is sticky and will reduce customer churnTransform your customer’s capital expenditures into operating expenses that are baseline to their IT budgetOracle Social CloudOracle Marketing CloudOracle Sales CloudOracleCPQCloudOracle Commerce CloudOracle Service CloudSaaSJD EdwardsDatabase ServicesDeveloper ServicesJava ServicesDocument ServicesAnalytics ServicesSocial NetworkAny SourcePaaS
14 Why have your head in the Clouds? Cloud is a disruptive change. Get in on the ground floor.Many enterprises will have both cloud and on premise.Every business has someone extracting data into Excel.Develop your unique BI application.Prototype a new BI application.Provide departmental solution.Solve seasonal requirements faster.Merger and Acquisition agility.
15 Oracle Cloud Partner Programs Comprehensive Array of Programs for the Oracle Public CloudReferral ProgramEnterprise-ReadyBreadth of SolutionsDepth of TechnologySpecializationsResale Program
16 BICS Specialization for New Partners JoinOPNNew Partner Interested inOracle BISpecializationJoin Oracle BI Knowledge ZoneReview Specialization CriteriaSales (Assessment Test) – 2 requiredPre-Sales (Assessment Test) – 2 requiredImplementation (Proctored Exam) – 2 requiredSupport (Assessment Test) – 1 requiredCloud Specialist (Assessment Test) – 2 requiredSpecialization Requirements: Competency CenterCheck Company Status Fulfill Specialization RequirementsOracle BI On-Premises and Cloud ServicesSpecialized PartnerApply For Specialization
17 OPN Competency CenterSales, Presales, Implementation, Cloud, and Support Guided Learning Paths and AssessmentsOracle BI Specialization is required for BICS resellSpecialization Requirements:Sales (GLPs & Assessment Test)Pre-Sales (GLPs & Assessment Test)Implementation (GLPs and Proctored Exam)Support (GLPs & Assessment Test)Cloud Specialist: NewBusiness and Competency (Technical and Implementation)BICS Guided Learning Path: pre-recorded sessions (1 hour or less each)BICS Assessment test
18 BI Workshop Friday 8:30am to Noon Oracle Campus in Classy Room Are you a Do It Yourself type?Google “Sample OBIEE”
19 Sell JD Edwards Related Services with Process and Metric Conversations Oracle Business Intelligence Applications
20 Obtaining Specialization and Reseller Status Step 1Step 2Complete specialization for Oracle BI (On-Premises)Obtain Add-on Specialization for BICSStudy GLP Training material for BICS SpecializationTake Specialization Assessment Test (2 individuals)Create Fixed Scope Offering requirements*Submit Fixed Scope Offering (FSO) for approval*Review Cloud Services Distribution Addendum (CSDA) *Execute CSDA prior to first resell*Review Cloud Services Reseller* and Referral ProgramsApply for Reseller Rights (upon completion of Specialization and FSO approval)Order BICS from Partner Store* (Must have Reseller Rights)* For Resell Only
21 The Scope for Alignment with JD Edwards Party Supplier’s Supplier to Customer’s CustomerTransaction Customer Order to Paid InvoiceExchange Physical Material and Services DeliveryDesired State Aggregate Market Demand to Order FulfillmentOf course there are other surrounding specific analytical applications we can discuss, including manufacturing, asset maintenance, human resources, pricing, sales, service, marketing etc.You know about the Oracle Applications that automate the business process for which Oracle Analytics is purpose-built:ERP (EBS, PSFT, JD Edwards) whose broad footprint includes manufacturing, assets, inventory, procurement, financials etcDemantra demand management, sales & operations planning, and trade promotion planning solutions.Hyperion Enterprise Performance Management (EPM) includes the financial reporting and planning productsIntegrated Business Planning (IBP) is a combined solution of Hyperion and DemantraValue Chain Planning (VCP) advances Oracle’s Supply Chain platform with Strategic Network Optimization, Distributed Order Orchestration, Demand Signal Repository and moreAgile Product Lifecycle Management for supply chain executionMaster Data Management MDM includes Hubs for Product, Supplier, Site, Customer and Data Quality so heterogeneous applications can coexistManufacturing Operations Center (MOC) is shop floor analytics on machinesOracle Transportation Management (OTM) is a shared platform for our ERP applicationsGlobal Trade Management (GTM) is also a shared platformPedigree and Serialization Manager (OPSM) is Oracle shared platform to answer regulatory, quality and safety requirementsAnd others
22 Resolve/Prioritize Supply Chain Cross Functional Metrics Cost, Quality and Time Variance to standard costAsset utilizationTotal delivered priceTotal landed costQualityPerfect order percentageManufacturing yieldUptimesTimeLead timesCycle timesBacklogsCost: invoice accuracy, utilization, inventoryPriceService: on timeSupply Chain and Order Management Analytics indicate late shipments caused by backlogs by customer, by product and by inventory org. It also has a finished goods BOM and inventory so you can see what might help clear up the backlog. Manufacturing Analytics covers work order lead time for products that are backlogged. Procurement and Spend Analytics will indicate who can supply parts needed for final assembly (per finished goods BOM), and if we have any existing orders to that supplier for the needed part. Financial Analytics will confirm whether we’re taking care of that supplier by keeping current with paying supplier invoices.
23 PROCUREMENT SUPPLIER KPI’s • On-Time Deliveries • Inbound Cost/Order Value• Lead Time• Fill Rate• IT / Technology Resources• Service Flexibility• Attitude• Returns Policy• Value Added Services• VMI Capabilities• Ease of Doing Business• Ethics / ComplianceSUPPLY CHAIN CUSTOMER KPI's• Profitability• Order Frequency• Sales Volume• Growth Potential• Credit / Payment History• Shared Strategic Vision• Return Rate• Customer Viability• Loyalty• Cost to Serve• Competitive Pressure• Hassle to ServeFINANCE INTERNAL KPI’s• Workforce Utilization• Inventory Accuracy• Inventory Carrying Cost• Inventory TurnsOn-Time Deliveries• Perfect Orders• Order Cycle Time• Order Entry Accuracy• Order Fill Rate• Shipping Accuracy• Customer SatisfactionSupply Chain Council 2014 says finding the right metrics is #1 challenge.disputes about the right metrics between supply chains, product lines or departments, agreeing on definitions and calculations, having too many metrics or too few metrics, difficulty benchmarking and difficulty finding metrics that are supported 'of-the-shelf' in reporting tools.OBIA is a good answer if you run any Oracle Applications
24 The Journey From Transaction To Action StartTransaction (Event/Sensor)BooksFunctions (Role/Dept)InsightsVehicleApplicationSystemMetricsAnalyticsWaypointRecordsReportsProcessesActionOnce we have our business model defined, let’s start with a transaction that is fast, secure, and saved. There’s an audit trail. It could be publishing a job requisition, recording a sale or issuing a purchase order. It could be readings from those 800 billion sensors the visionaries want to bring online. Those transactions are carried by an Application. Oracle has lots of them. From each application we create records with all the right attributes, tags and keys from that transaction. Records are accumulated from lots of transactions often transactions chain, e.g. a requisition becomes a purchase order which becomes a receipt which becomes an asset which all create entries in the general ledger. There are identifiers like date/place/user and there are reference tags like product ID and customer ID.A collection of Records become books which are scrubbed, adjusted and closed. Every department generates transactions, records and then books. Those many books from many applications are synched, somewhat, and managed as systems to keep everything efficiently managed. Think of a data stream in terms of transactions, applications and records. Some Big Data projects then can start the next step in this journey as books, assuming there are multiple books which can be synched and related to each other like a system with inputs machination and outputs.Highlight that Velocity and Volume of Big Data are covered by Applications and Systems. What’s next?EBS, PSFT, FUSION, TALEO, WebCenter, RightNow are all systems. They have referential integrity and there are golden source of truth which is part of the struggle for big data, how to relate to known entities. AND Those transactions, records and books are too complicated to query directly so we gain access to those systems via reports. Lots of reports. Millions of reports. Reports are generated via query, BI tools, Visualization, Discovery etc. Those reports are used by various functions, i.e. departments inside and outside the organization. (Note departments or functions ARE NOT LOBS’s.) Those functions interact with each other and we can measure those interactions with metrics. Specifically we are less interested in how many transactions happened as those are records and reports. We are interested in cross functional metrics because that’s where the meaningful value can be captured/created/derived. No CEO talks about a major initiative to improve a department. It’s all cross functional. Metrics are really just summary measures of processes. Every process has several metrics. Order To Cash, Procure To Pay, Hire To Retire. Etc. These processes are where we gain insights because with good process and metrics we can start to see what happened, what will happen and project what should happen.We can Manage By Objective, Fact and ExceptionThat’s the sphere of Analytics, the vehicle by which we drive ACTION.There are many Waypoints for the Business Leader To Navigate. IT is out of its element after Reports.“Life must be lived forward but can only be understood backwards” Kierkegaard