2. The Automotive Value Chain
Retail
Suppliers OEMs
DistributionDistribution
Hubs/CentersHubs/Centers
Tier N SuppliersTier N Suppliers
SystemSystem
IntegratorsIntegrators
Automobile & TrucksAutomobile & Trucks
Assemblers (OEMs)Assemblers (OEMs)
Post ProductionPost Production
AssemblyAssembly
Tier 1 Suppliers andTier 1 Suppliers and
Sub-assemblersSub-assemblers
DealershipsDealerships
3. Automotive OEM Drivers
Revenue Management
…to convert $74B of stagnant
inventory into sales revenues
Cost Reduction
OEMs spend $25B+
in incentives…
Efficiency & Productivity
Currently, custom vehicles
take 60+ days to produce
Product Quality
Vehicle recalls continue
to plague consumers
Customer Retention
Increasingly consumers expect
treatment as “market of one”
Product Innovation
It takes 3 years on average
to develop a new platform
4. • Alignment of vehicle production to real demand
• Collaboration for Fast Vehicle Development (18-24 months)
• Consumer preferences analyzed and shared by multiple orgs
• Streamlined, automated strategic sourcing & procurement
• Incentives to maximize profits vs. moving inventory
• Lean, highly utilized mixed model assembly plants
A Need for Change
Leading Business Trends
5. Sales & MktgSales & Mktg
InformationInformation
TechnologyTechnology
EngineeringEngineeringEngineeringEngineering
SupplySupply
ManagementManagement
ServiceServiceServiceService
FinanceFinance
Sales & OperationalSales & Operational
PlanningPlanning
ProductionProduction
Continually Improve Quality, Cost and Cycle Time
• 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
A Need for Change
Extend Lean Initiatives Across the Enterprise
6. Oracle in Automotive
Did You Know?
• More than 150 automotive companies run Oracle apps
• Over 1900 automotive companies run on Oracle technology
• 7 of the top 10 global automotive companies on Reuters run
Oracle applications
• 9 of the top 10 automotive manufacturers on Industry Week's
2004 manufacturing companies run Oracle apps
• 4 out of the top 5 world’s largest tire manufacturers run
Oracle applications
• 33 of the top 39 automotive manufacturers on Industry Week's
2004 manufacturing companies run Oracle apps
7. Oracle in Automotive
Did You Know?
• 10 of the top 10 motor vehicle and parts companies on
Fortune Magazine's 2004 global top 1000 run Oracle apps
• 15 of the top 15 companies on Fortune Magazine's 2004
“Most Admired Automotive Parts Companies” run Oracle apps
• 18 of the top 26 world's largest automotive manufacturers
on Reuters run Oracle applications
• 9 of the top 10 largest auto parts manufacturers on Reuters
run Oracle applications
• 19 of the top 20 OEMs from Automotive News 2004 run
Oracle applications
• 21 of the top 40 top Global Suppliers from Automotive News
2004 run Oracle applications
8. What Customers are Achieving…
100% of the Top 20 Automotive Companies Use Oracle
Oracle applications drive many core functions within the OEMs:
GM has signed an enterprise agreement to utilize Oracle technology
globally and has extended the agreement to it’s joint ventures.
Tier 1’s are using Oracle technology & applications to grow globally:
• GM – Online vehicle configuration
• Nissan America – Warranty mgmt
• Subaru – Financials & order mgmt
• Honda Motorcycle – Product dev’t
• Fiat – HR & financials
• ChangAn (China) – Manufacturing
• Delphi
• Cummins (13 sites)
• Eaton (22)
• ArvinMeritor (12)
• Dana (9)
• American Axle
11. Intelligence
Technology
Tailored for Automotive OEMs
Support for Key Processes
ProcurementProcurement
Planning &Planning &
ManufacturingManufacturing
CollaborativeCollaborative
DevelopmentDevelopment
DealerDealer
IncentiveIncentive
ManagementManagement
CustomerCustomer
DemandDemand
CaptureCapture
12. Enable Collaborative Vehicle Development
Source and Procure Globally for Best Value
Enable Lean, Flexible Manufacturing Environments
Sense and Respond to Customer Demand
Provide Targeted Dealer Incentives
Oracle Automotive
OEM Solutions
Intelligence
Technology
ProcurementProcurement
Planning &Planning &
ManufacturingManufacturing
CollaborativeCollaborative
DevelopmentDevelopment
DealerDealer
IncentiveIncentive
ManagementManagement
CustomerCustomer
DemandDemand
CaptureCapture
13. Product Lifecycle Management
Collaborate and Make Profitable Choices
Portfolio Management
Product Intelligence
Phase-Gate
Control
Component
Sourcing
Design for SC
& Compliance
Sales
Configuration
BOM Mgmt
& ReleaseProduct
Data
Repository
Issue/Change
Management
N
e
w
P
r
o
d
u
c
t
I
n
t
r
o
C
o
l
l
a
b
o
r
a
t
i
o
n
Retire
Design
Release
Ramp-up
MaintenanceMaintenance
Prototype
& Test
VolumeVolume
ProductionProduction
Concept
Specifications
Drawings
Schedules
Issues
Ideas
ChangesServiceService FinanceFinance
Internal
External
Sales & MktgSales & Mktg PurchasingPurchasing
EngineeringEngineering ManufacturingManufacturing
SuppliersSuppliers CustomersCustomers
14. Utilize a Product Data Hub
Achieve Complete Product Rationalization
Capture all product structures
and configurations in a single
location
List all products & related
attributes with a hierarchical
view of components
Manage complex,
multi-dimensional data (item
types, location, platform, etc.)
Share the same product
information as products evolve
through lifecycle
*Bill of Materials
EngrEngr
BOMBOM
MfgMfg
BOMBOM
SalesSales
BOMBOM
As MaintainedAs Maintained
BOMBOM
Design &
Develop
Plan &
Manufacture
Market, Sell,
Fulfill
Service &
Maintain
Single
Version
of Truth
ProductProduct
DataData
RepositoryRepository
15. Search and Find the Best Component
Increase Component Reuse Through Advanced Search
Browse Category
Hierarchy
Best
Component
Search Components by
Specification Values
(and compare search results)
Choose Best Fitting
Component
CategoryCategory SearchSearch
AttributesAttributes
AttributeAttribute
ValuesValues
16. Share CAD Designs
Collaborate Through a Secure, Common Web Portal
• Streaming-Based CAD View & Mark-up
– Structure hierarchy, parts lists & attributes
– Product data queries
– Mark-ups
– Perspective and sectioned views
– Animations
– CAD format neutral
– Spontaneous access without download
– Integrated Change Mgmt with product info
• Web Conferencing
– File sharing
– Desktop sharing
– Application sharing
– Co-browsing
– White boarding
17. Control the Product Change Process
Workflow Driven Process Automation
User-Defined Change Types
Streamline Review and Approvals
Facilitate Multi-Company Collaboration
ImplementImplement
ChangeChange
Test &Test &
ApproveApprove
ReviewReview CreateCreate
Work PkgWork Pkg Create
Change
Order
(ECO)
Workflow DrivenWorkflow Driven
ScheduleSchedule
CostCost
DispositionsDispositions
QA / Engr
Alerts &Alerts &
NotificationsNotifications
EngineerOrg 1, Org 2, …
ID IssueID Issue AssignAssign
& Notify& Notify
AssessAssess
ImpactImpact
ReviewReview ApproveApprove
or Rejector RejectCreate
Change
Request
(ECR)
Engineer
18. Consistent, Timely Info to Stakeholders
Obtain Personalized, Secure Access Anywhere, Anytime
Global
Project
Repository
Information Inputs
• Project Management Plans
• Actual Effort and Costs
• Issues and Changes
• Documents
• Customer Specifications
Project Managers
Team Members
Executive Mgmt
Customer / Sponsor
Roles
• Consistent Product & Project Info
– Information entered once
– Operational & acct views by role
– Attribute-based searches
• Secure, Role-Based Access
– Functions secured by role on
each project
– Built-in security protocols
• Timely Information
– Daily or weekly updates
– Information entered via self-service,
batch entry and open interfaces
• Multi-Method Access
– Internet browser-based UI
– Workflow driven e-mail
– Productivity tools (MS Project / Excel)
19. Enable Collaborative Vehicle Development
Source and Procure Globally for Best Value
Enable Lean, Flexible Manufacturing Environments
Sense and Respond to Customer Demand
Provide Targeted Dealer Incentives
Oracle Automotive
OEM Solutions
ProcurementProcurement
Planning &Planning &
ManufacturingManufacturing
CollaborativeCollaborative
DevelopmentDevelopment
DealerDealer
IncentiveIncentive
ManagementManagement
CustomerCustomer
DemandDemand
CaptureCapture
Intelligence
Technology
21. Complete Procure-to-Pay Automation
Integrate Sourcing through Execution
Send ElectronicSend Electronic
PO to SupplierPO to Supplier
Receive ElectronicReceive Electronic
InvoiceInvoice
CreateCreate
Purchase OrderPurchase Order
Identify & QualifyIdentify & Qualify
VendorsVendors
EvaluateEvaluate
BidsBids
Create & ApproveCreate & Approve
RequisitionRequisition
Author & NegotiateAuthor & Negotiate
Contract or MPA*Contract or MPA*
Pay SupplierPay Supplier
(EFT)(EFT)
AnalyzeAnalyze
PerformancePerformance
Receive Goods orReceive Goods or
Services; InspectServices; Inspect
Select VendorSelect Vendor
AdjustAdjust
ContractsContracts
Sourcing
Strategy
Purchasing
Execution
Add structure to strategic activities & execute routine transactions automatically
*Master Purchase Agreement
22. Support Any Negotiation Type
Flexible Methods Address YOUR Sourcing Strategy
Good or
Service
Example
Duration
Focus
Well-DefinedWell-Defined
AttributesAttributes
Furniture, ComponentsFurniture, Components
HoursHours
NegotiateNegotiate
Best PriceBest Price
StandardStandard
CommoditiesCommodities
Paper, Pens, FastenersPaper, Pens, Fasteners
VariesVaries
Best Terms:Best Terms:
Price, Delivery, PaymentPrice, Delivery, Payment
Complex,Complex,
Engineer to OrderEngineer to Order
Buildings, EquipmentBuildings, Equipment
Days or WeeksDays or Weeks
Meet Need forMeet Need for
Many AttributeMany Attribute
Auction /
Bid
RFQ / RFP /
RFI / Quote
Offer /
Counter Offer
• Multi-round negotiations with partial bid,
minimum, increment, and auto-extend
• Change attributes between rounds
• Multi-attribute bidding
• Real-time bid monitoring
• Threaded discussions
23. Collaborative Contract Authoring
Improve Accuracy and Productivity
• Automatically create contract
based on quote details
• Compare revisions &
communicate changes to
multiple parties
• Flag non-standard clauses for
additional legal approvals
• Attach supporting documents
to contracts
• Produce PDF contracts with
personalized look and feel
Buyer
PO / Revisions
Approver
Legal Supplier
Purchase
Contract
Contract Creation Seamlessly Integrated into Sourcing Process
T’s & C’s Quote
v.2v.1
24. Efficient Self-Service Requisitioning
Automate and Control Employee Buying
Self-service ordering
in a familiar web
shopping interface
Smart Forms to
structure non-
catalog orders
Configurable approval
flows with accounting
enforcement
Self-service order
tracking and order
changes
Change quantity,Change quantity,
date, price ordate, price or
cancel linecancel line
• Change request approvalChange request approval
• Buyer review and PO updateBuyer review and PO update
• Automatic supplier notificationAutomatic supplier notification
25. Retroactive Price Changes
Ensure Latest Agreement Prices are Utilized
ActivateActivate
MPA w/MPA w/
Interim PriceInterim Price
FinalizeFinalize
PricingPricing
for MPAfor MPA
Issue BlanketIssue Blanket
ReleaseRelease
(or PO)(or PO)
Retro-AdjustRetro-Adjust
BlanketBlanket
ReleaseRelease
PricingPricing
IssueIssue
AdjustmentAdjustment
Invoice*Invoice*
AdjustAdjust
AccruedAccrued
LiabilityLiability
Already
Received
Already
Invoiced
• Enable retro-pricing of Master Purchase
Agreements (Blanket Agreements)
• Automatically update orders with latest
pricing (references modified agreement)
• Update prices on orders even if there
has been receiving or invoicing activity
*Requires Payables (Financials)
26. Enable Collaborative Vehicle Development
Source and Procure Globally for Best Value
Enable Lean, Flexible Manufacturing Environments
Sense and Respond to Customer Demand
Provide Targeted Dealer Incentives
Oracle Automotive
OEM Solutions
ProcurementProcurement
Planning &Planning &
ManufacturingManufacturing
CollaborativeCollaborative
DevelopmentDevelopment
DealerDealer
IncentiveIncentive
ManagementManagement
CustomerCustomer
DemandDemand
CaptureCapture
Intelligence
Technology
27. Multi-Tier Supplier Collaboration
Synchronize Planning Across Multiple Tiers
Run
plan
Demand
‘vehicle’
Supply
forecast
Consensus
forecast
Run plan
Forecast
‘brake’
Supply commit
‘chassis’
Supply commit
‘brake’
Forecast
‘chassis’
Tier N
Supplier
Dealers
Tier 1
Supplier
OEMs
Provide Cost-Effective Visibility
– Communicate requirements to all suppliers
– Supports multiple communication methods
as lower cost alternatives to EDI (XML, etc.)
React Faster to Constraints
– Get visibility to supplier capacity
– Reallocate key components
– Make alternate sourcing decisions
Reduce Non-Value Added Costs
and Exception Overload
– User-configurable exceptions
– Automated exception handling via workflow
Reduce Obsolescence
– Understand impact of BOM changes to
your suppliers and customers
28. Inventory Optimization
Reduce Inventory Levels to Support the Lean Enterprise
Safety stock with
Postponement
Initial Safety
Stock Levels
• Determine inventory
levels across the entire
supply chain
– End products
– Subassemblies
– Components
• Coordinate policies to
reduce inventory across
the entire supply chain,
including customer
consigned inventories
• Postpone value-add
activities until actual
demand pull
DC 1 /
Customer
Consignment
Manufacturing /
Assembly
Raw
Materials
DC 2
Aftermarket
Suppliers
Dealerships
29. Supply Chain Exception Management
Bridge Gap Between Collaborative Planning & Execution
Dealers /
Consumers
You
Suppliers
PlanningPlanning
RunRun
Next PlanningNext Planning
RunRun
DelayedDelayed
outboundoutbound
shipmentshipment
UnplannedUnplanned
spike inspike in
after-marketafter-market
demanddemand
DelayedDelayed
inboundinbound
shipmentshipment
DealerDealer
changeschanges
orderorder
! !!!
Workflow-Driven Automated Exception Handling
Role-Based Alerts and Notifications
Real-Time Information Exchange
Execute on Exceptions
30. AdjustAdjust
ProductionProduction
SequenceSequence
ToTo
AccommodateAccommodate
CustomCustom
Config-Config-
urationsurations
Build Vehicles that Customers Want
Minimize Inventories & Increase Customer Satisfaction
Customers /Customers /
DealersDealers
ForecastForecast
UniquelyUniquely
ConfiguredConfigured
VehiclesVehicles
ConfigureConfigure
Create MfgCreate Mfg
BOM &BOM &
RoutingRouting
CheckCheck
Avail-Avail-
abilityability
(LTO*)(LTO*)
Global ATP and Pricing Production Plan
AssembleAssemble
VehicleVehicle
Receive
Ship
Invoice
DCs
Automated:
• Creation of Orders
and Schedules
• Creation of BOMs
• Routing Assignments
• Materials Allocation
WebWeb
ConfigConfig
DealerDealer
OrderOrder
*Three Scenarios:
• MTS – Make to Stock
• LTO – Locate to Order
• BTO – Build to Order
MTS*
BTO*
PopularPopular
Config-Config-
urationsurations
32. Support Lean Manufacturing Practices
to Reduce Cycle Time and Waste
Demand
(Orders/Forecasts)
Dealers
Suppliers
Production Line
Sequenced
POs
Inventory
Bin 1Bin 1 Bin 2Bin 2
PaintPaint
Feeder Plant Feeder Line
Synchronized
Production
Bin 1Bin 1 Bin 2Bin 2
Seat AssySeat Assy
Bin 1Bin 1 Bin 2Bin 2
Door AssyDoor Assy
Bin 1Bin 1 Bin 2Bin 2
AccessoriesAccessories
Kanban
Replenishment
Flow Manufacturing
Build a Mix of Configurations
on the Same Line
33. Facilitated Outsourcing
Increase Visibility Across
Outsourced OperationsOEMs Send:
• Purchase Orders
• Schedules
• Bill of Materials (BOMs)
• Operation Instructions
• Drawings & Attachments
Suppliers Send:
• Adv Ship Notifications (ASNs)
• Quality Results
• PO Acknowledgements
Auto Supplier PortalAuto Supplier Portal
34. Enable Collaborative Vehicle Development
Source and Procure Globally for Best Value
Enable Lean, Flexible Manufacturing Environments
Sense and Respond to Customer Demand
Provide Targeted Dealer Incentives
Oracle Automotive
OEM Solutions
ProcurementProcurement
Planning &Planning &
ManufacturingManufacturing
CollaborativeCollaborative
DevelopmentDevelopment
DealerDealer
IncentiveIncentive
ManagementManagement
CustomerCustomer
DemandDemand
CaptureCapture
Intelligence
Technology
35. Rich Product Catalog for Guided Selling
Create Compelling Interactions via Dynamic Content
ProvideProvide
immediateimmediate
access toaccess to
assistanceassistance
EasilyEasily
customizable,customizable,
targetedtargeted
contentcontent
ComprehensiveComprehensive
researchresearch
capabilitiescapabilities
Intuitive GuidedIntuitive Guided
Selling ProcessSelling Process
36. Sophisticated Vehicle Configurator
Allow Customer to Independently Define Configuration
Define configuration rules for any order
Allow customer to select base model
Recommend vehicles and accessories
based on customer analysis
Price configured vehicles, including
personalized, applicable discounts
Verify vehicle location / availability and
delivery time
Push configured vehicle specifications to
dealers and place customers in contact
with sales representatives
37. Vehicle Locator System
Enable Customers to Locate Exact Configurations
Vehicle Inventory
• Provide real-time
inventory visibility
• Verify vehicle location
& availability
• Provide alternate
configurations when
exact vehicle is
unavailable
Dealer Order Tracking
• Enable customers
to track shipped orders
• Notify customers when
vehicle ships and
arrives at dealership
• Alert customers about
delivery status
Web Store
Orders
38. Capture Interest-Level Data
Use Channel Data to Influence Marketing & Planning
Secure
Database
• Marketing, Sales, Dealers
– Demographic information
– Consumer preference
– Targeted campaigns
– Refined analysis
Capture Click Stream
• From website, kiosk, or
dealer sales interface
• Vehicle / model
preference
• Options selection
& combinations
• Style & color popularity
Analyze & Report Data
• Dynamic analyses (query nesting,
pivoting, multi-level drill down)
• Pre-integrated web portal and
report builder
• Simple export to XML, HTML,
Excel, text files
• Planning, Mfg, Suppliers
– Demand for styles
– Popular configurations
– Increase forecast accuracy
• Product Development
– Popular models & features
– Innovations
– Product differentiators
Disseminate Information
Data cleanse
& de-duplicate
39. Store All Customer Data In One Place
Leverage a Common Data Model
Build Customer Profiles by Relating all Relevant Information
Customers,
Suppliers,
Products, …
• Contact Information
• Interaction History
• Sales Channel Usage
• Pending Quotes / Orders
• Order History
• Contract Terms
• Shipment Status
• Issue History
• Payment / Credit History
• Campaign Responses
40. Sense & Respond to Consumer Preference
Refine Interest-Level Data via Targeted Campaigns
Leverage
Growing Data
Improve
Predictive
Capabilities
Optimize
Incentive
Spend
Consumer data
accumulates with
time and experience
Better predictive
capabilities increases
likelihood consumer
will purchase via
incentive
More available data
helps improve the
quality of predictions
Past Consumer BehaviorPast Consumer Behavior
CollectCollect
ResponsesResponses
PredictPredict
ResponsesResponses
CreateCreate
PersonalizedPersonalized
IncentivesIncentives
RunRun
CampaignCampaign
Analyze &Analyze &
Flow DataFlow Data
to Planningto Planning
Analyze
& Report
Capture
Initial
Interest
Improve Data Quality and Planning Over Time (Best Vehicle Mix)
Plan
Follow-Up
CaptureCapture
RefinedRefined
PreferencePreference
Execute
Target
Campaign
41. Track Costs to Revenue Generation
Measure Performance, Rigorously Rationalize Spending
Create & LaunchCreate & Launch
CampaignCampaign
AA GenerateGenerate
InterestInterest
AA PursuePursue
OpportunityOpportunity
AA
SettleSettle
ClaimsClaims
AA
Map campaign activities and spend to revenue
AnalyzeAnalyze
ResultsResults
AATrackTrack
SalesSales
AA
Activity
Identifier
AA
42. Enable Collaborative Vehicle Development
Source and Procure Globally for Best Value
Enable Lean, Flexible Manufacturing Environments
Sense and Respond to Customer Demand
Provide Targeted Dealer Incentives
Oracle Automotive
OEM Solutions
ProcurementProcurement
Planning &Planning &
ManufacturingManufacturing
CollaborativeCollaborative
DevelopmentDevelopment
DealerDealer
IncentiveIncentive
ManagementManagement
CustomerCustomer
DemandDemand
CaptureCapture
Intelligence
Technology
44. Incentive Management Flow
Get Dealerships to Participate in Your Campaigns
EstablishEstablish
campaigncampaign
objectivesobjectives
LaunchLaunch
incentiveincentive
campaigncampaign
Qualify / grade /Qualify / grade /
route leadsroute leads
Dealerships
Agree on leadAgree on lead
fulfillmentfulfillment
Review /Review /
accept optyaccept opty
Place or fillPlace or fill
order &order &
submit claimsubmit claim
Ship itemsShip items
& pay claims& pay claims
OEM
Develop, execute and
manage dealer-specific
incentive campaigns
Reduce potential lost sales
by tracking status of
opportunity to fulfillment
Continuously measure
incentive campaign
effectiveness & performance
Increase dealer participation
via faster resolution of claims
Work / closeWork / close
opportunityopportunity
45. • Create closed-loop marketing plans integrated with
incentive compensation
• Monitor success and make mid-campaign changes
• Evaluate purpose and impact of all trade funding
Promotions
Drive
Better Results
• Consolidate historical data
• Validate OEM and dealership promotions
• Shorten time to research, validate and settle all
deductions, charge backs, and claims
Claims
Reduce Costs
• Use budget mgmt to gain complete funds visibility
• Control allocation and eligibility of all promotions
(including marketing budgets)
• See at-a-glance all the current and potential liabilities
Liabilities
Predict and Avoid
Trade Expenses
Impact Your Bottom Line
Improve Promotions and Reduce Expenses
47. Deliver Daily Business Intelligence
Real-Time Access to Complete Business Information
– Objective: Set institutional targets
– Fact: Provide performance-based metrics
– Exception: Continuously evaluate performance
Manage By…
How can I best adjust to planning exceptions?
How are supplier deliveries impacting on-time delivery capability?
What are the schedule & budget impacts of design changes?
How do my production costs this period compare with the prior period?
How should I allocate production resources to meet variable demand?
48. Business Intelligence:
Timely, Accurate, Relevant
• Daily updates on key
performance
indicators
• Actionable info
on cost savings
and incremental
revenue
opportunities
• Role-based views:
- Product Development
- Project Management
- Planning
- Purchasing
- Manufacturing
- Order Management
- Warehouse Mgmt
LinksLinks
ReportsReports
Real-TimeReal-Time
ResultsResults
GraphsGraphs
FlexibleFlexible
Time PeriodsTime Periods
FlexibleFlexible
ComparisonsComparisons
PerformancePerformance
MeasuresMeasures
49. Corporate Governance
A heightened business focus on accuracy in reporting to investorsA heightened business focus on accuracy in reporting to investors
brought on by recent fraudulent practices of several major corporationsbrought on by recent fraudulent practices of several major corporations
Oracle Helps Drive Compliance
through Visibility, Control, and Efficiency
• Senior mgmt personal liability for
financial result accuracy
• Senior mgmt and outside auditor
attestation to the effectiveness of
internal controls
• Accelerated SEC filing deadlines
Sarbanes Oxley Act (SOX) EU Anti-Fraud Directive (Mar 2004)
• Collective Board liability for financial
result accuracy
• Senior mgmt and outside auditor
attestation to the effectiveness of
internal controls
• Select Corporate Governance Code
For all U.S. companies and companies
issuing securities in the U.S.
For all E.U. companies and companies
issuing securities in Europe
50. Corporate Governance:
Visibility, Control, Efficiency
Automate Processes and Extend to Customers & Suppliers
Your
Company
Customers
& Suppliers
• Identify issues early
• Enable real-time
information access &
performance mgmt
• Consolidate global
financials
• Unify corporate
reporting
• Consolidate and reconcile
information rapidly
• Automate business processes
and broaden use of self-service
• Simplify IT infrastructure
• Leverage best practices from
different groups / regions
Visibility
Efficiency
Provide Single Source of the Truth Centrally Manage Policies and Procedures
• Integrate and centralize
business operations
• Document processes
and support compliance
• View, test and certify
internal controls
• Manage corporate
communications
Control
Orders
Invoices
Payments
Requisitions
51. All Built on Leading Technology
Database
Server
Application
Server
52. Oracle Automotive OEM Solutions
Enable Collaborative
Vehicle Development
Source and Procure
Globally for Best Value
Enable Lean, Flexible
Manufacturing Environments
Sense and Respond
to Customer Demand
Provide Targeted
Dealer Incentives
…Integrated Business Intelligence & Corporate Governance
Collaborative design, integrated
BOM, resource & knowledge mgmt
Unified Internet sourcing tools,
procurement contracts, requisition-to-
payment automation w/ retro-pricing
Collaborative planning integrated
with mixed mode manufacturing –
discrete, flow, and outsourced mfg
Online vehicle configuration, pricing,
& locating service; web and campaign
analysis for improved planning
Integrated trade management for
dealer-specific incentive campaigns
53. ChallengesChallenges
Services:Services: Consulting, IT Outsourcing, Education, SupportConsulting, IT Outsourcing, Education, Support
IT Infrastructure:IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration SuiteDatabase Server, Applications Server, Systems Management, Development Tools, Collaboration Suite
Enterprise Infrastructure:Enterprise Infrastructure: Financials, Human Resources, ProjectsFinancials, Human Resources, Projects
DriversDriversOracleEnablersOracleEnablers
Enable Collaborative
Vehicle Development
Product Lifecycle MgmtProduct Lifecycle Mgmt
Product Data MgmtProduct Data Mgmt
CADView-3DCADView-3D
ConfiguratorConfigurator
SourcingSourcing
Project ManagementProject Management
Proj Portfolio AnalysisProj Portfolio Analysis
Project CollaborationProject Collaboration
Proj Resource MgmtProj Resource Mgmt
• Inability to involve
partners early during
design process
• Globally dispersed
R&D resources
Footprint: Automotive - OEM
Trade ManagementTrade Management
MarketingMarketing
Trade ManagementTrade Management
Advanced PricingAdvanced Pricing
Order ManagementOrder Management
FinancialsFinancials
• Dependence on
tiered sales channels
(e.g. distributors,
dealerships, e-tailers)
• Low conversion of
browsers to buyers
• OEMs spend up to
33% of revenues in
incentives
Provide Targeted
Dealer Incentives
Demand CaptureDemand Capture
iStoreiStore
ConfiguratorConfigurator
Order ManagementOrder Management
Inventory MgmtInventory Mgmt
Global Ord. PromisingGlobal Ord. Promising
Data Mgmt & AnalysisData Mgmt & Analysis
Cust Data Hub / SpokeCust Data Hub / Spoke
Cust Data LibrarianCust Data Librarian
DiscovererDiscoverer
MarketingMarketing
• Understand
consumers’ needs
and desires to
improve alignment of
supply and demand
• Currently only 0.01%
of demand signals
are captured & used
• Decreasing brand
loyalty
Sense and Respond
to Customer Demand
PlanningPlanning
Collab PlanningCollab Planning
Demand PlanningDemand Planning
Adv SC PlanningAdv SC Planning
Inventory OptimizationInventory Optimization
Production / AssemblyProduction / Assembly
Mfg SchedulingMfg Scheduling
Discrete MfgDiscrete Mfg
Flow MfgFlow Mfg
iSupplier PortaliSupplier Portal
Inventory MgmtInventory Mgmt
Enterprise Asset MgmtEnterprise Asset Mgmt
• Inflexible mfg
operations (60+ days
for custom vehicles)
• Global excess
assembly capacity
Enable Lean, Flexible
Manufacturing
Environments
ProcurementProcurement
SourcingSourcing
PO ContractsPO Contracts
iProcurementiProcurement
PurchasingPurchasing
Services ProcurementServices Procurement
iSupplier PortaliSupplier Portal
Payables (Financials)Payables (Financials)
• Race to reconfigure
supply chain to
dramatically reduce
vehicle order cycle
times
• Poor visibility into
global operations
• Disparate legacy
purchasing systems
Source and Procure
Globally for
Best Value
Corporate Governance:Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearningInternal Controls Manager, Financials, Tutor, iLearning
Performance Management:Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & BudgetingE-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting
• Downward consumer
price pressure
• Increasing demand
for custom vehicles
with high volume mfg
• Best-in-class OEM
platform dev is 1.5 yrs
(most take 3-4 yrs)
• Consumers plagued
by vehicle recalls
54. Automotive Capabilities
• Direct Ship from WIP
• Flow Sequencing
• Enhanced Blanket Orders
and Releases
• Global Purchase Agreements
• Consigned Inventory
• Supplier Change Orders &
Order Acknowledgments
• Product Data Management
• Integrated Maintenance and
Production Planning
• Multiple Instantiation for
Configurations at Quote/Sale
Base Differentiators…
• Flow Manufacturing
• Release and Cumulative
Management
• Product/Vehicle Configuration
• Container Management
• Warehouse Management
• Collaborative Planning
• Supply Chain Exception Mgmt
• Inventory Postponement and
Optimization
• Supplier Collaboration & VMI
• Supplier Scheduling
• Internet Based Sourcing
New in 11i.10…
• Automated Retro-Pricing
• Enhanced Retro-Billing
• Flow Line / Supplier
Synchronization
• Customer Consigned Inventory
• Partner Integration for Global
Trade Management
• Transportation Planning
• Configurator Effectivity Dates
• Single Row Self-Service Entry
of Quality Results
• Procurement Contracts
• Product Data Hub
• Create / View CAD-Assembly
Structure
• Project Portfolio Analysis
• Enhanced Service
Evolution of Oracle Applications in Automotive
New in 11i.9…
55. Lower Total Cost of Ownership (TCO)
Run on a Single Global Instance
Consolidate Data Centers
and Databases
E-Business On Demand
Low Cost Linux Hardware
App Admin
DB/AS Admin
Sys Admin
HW Admin
Production Midtiers 100% Linux
Production DB RAC Cluster (Unix)
Demo Environments 100% Linux
Development 100% Linux
Outsourced Customers 70% Linux
Oracle’s Experience with Linux
3x Faster, 5x Cheaper
Easy to Automate en Mass
Highly Reliable
Needs:Needs:Roles:Roles:
OracleOracle
Manages:Manages:
50% Lower Cost50% Lower Cost
50% Better Svc50% Better Svc
Core CompetenceCore Competence
Predictable CostPredictable Cost
YouYou
Manage:Manage:
AvailabilityAvailability
SecuritySecurity
PerformancPerformanc
ee
ChangeChange
ProblemsProblems
Standardized Open Integration Platform
• Business Events Infrastructure
• Industry Standard Protocols
• Centralized Integration Repository
Simplify B2B Integration,
Application Connectivity,
and Process Management
Customers,Customers,
Suppliers,Suppliers,
Products, …Products, …
56. Lower Total Cost of Ownership
Run on a Single Global Instance
30 Languages
Multiple Currencies
Customers in 100+ Countries
All Languages Installable in Same Unicode Instance
Support for Statutory and Customary Local Requirements
Support Global Operations
58. Oracle Commitment to Automotive
Applications & Functionality for Your Specific Needs
Flow Mfg
Procurement
& Sourcing
Supplier
Release
Management
Supply
Chain
Exchange
Advance
Planning &
Scheduling
High Volume
Configurator
Warehouse
Management
with Mobile RF
Asset Mgmt
Transportation
Management
PLM Suite
Supplier
Portal
1998 1999 2000 2001 2002 200320042003
Transportation
Planning
59. $2.5B automobile manufacturer with over 20,000 employees
– Fourth largest auto manufacturer in China with 400,000 vehicles
produced and exported to more than 20 countries (2003)
– 28 distribution centers supporting 200 sales & 600 distributors in China
Live on 11i
– Discrete Manufacturing, Inventory Management, Order Management,
Procurement, Financials
– Increased visibility, tracking, and reporting of operational & financial data
Saved $23M through better inventory management
Improved production capacity by 25%
Recovered Oracle investment in 4.5 months
Chang An
Auto Group
“Not only did our Oracle solution bring fiscal savings to ChangAn, but also the
perception of transparent and professional management, which I think is more
influential over the long term.” -- Ma Jun, Deputy President
60. 3.5 million visits per month, 1500 leads per day
Over 1 million vehicle configurations available
$186B world leader in automobile manufacturing
– World’s largest provider of transportation products and related services
– Sells products in more than 200 countries
– Manufacturing operations in 140 facilities in 50 countries
Chose Oracle over SAP, Baan, Selectica, i2, Trilogy, and Firepond
Live on Configurator 11i
– Performance – exceeds target of 300 transactions per second
– Deployed in 42 countries with 97,000 unique visits per day
“With Oracle Configurator, we have a robust tool that has been able to handle a lot
of diversity, including vehicle configurations from around the world.”
-- Cherri Musser, CIO Supply Chain
61. Enable Collaborative Vehicle DevelopmentEnable Collaborative Vehicle Development
Source and Procure Globally for Best ValueSource and Procure Globally for Best Value
Enable Lean, Flexible Manufacturing EnvironmentsEnable Lean, Flexible Manufacturing Environments
Sense and Respond to Customer DemandSense and Respond to Customer Demand
Provide Targeted Dealer IncentivesProvide Targeted Dealer Incentives
Oracle Automotive OEM Solutions
Good morning, my name is James Nicolaus Suguta and I’m pleased to be with you this morning.
I’m responsible for SUGUTA MOTOR COMPANY 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
The auto industry is composed of 3 major segments: Suppliers, OEMs (Original Equipment Manufacturers), and Distributor Dealers
The flow of order is from dealers to OEMs to Suppliers
The flow of product is from Suppliers to OEMs, to Dealers
Oracle has applications for each of these different business process segments.
Auto OEMs appear to be focusing on 7 business drivers. Given our interaction with GM & Ford Senior Executives, we’ve found these items to be on their list of things that keep them awake at night. I’m sure that some of these are familiar to you {solicit some feedback / engage audience]
[Talk to several of the bullets]
Product Innovation – GM plans to launch over 16 new products this year, last year was 26. One new product per week is launched for the industry as a whole in 2002.
Customer Retention – All of the OEMs are pursuing some form of Customer Relationship Management to retain customers and improve conquest sales opportunities. They are working to varying degrees with their dealer communities
Supply Chain Efficiency – Toyota along with the other OEMs are focusing on reducing their vehicle order cycle times (Toyota target of 21 days)
Cost Reduction – Ford is on it’s back to basics initiatives and GM is continuing to focus on lean manufacturing
The automotive industry over the last 3 years has been a roller coaster ride: record breaking sales, significant M&A activity (e.g.,GM’s JV with FIAT, acquisition of DAEWOO, etc), large number of new cars/trucks launched, and the consumer incentive war continues.
The core business processes within the OEMs (i.e., Vehicle Manufacturers) are also in the midst of change:
[Briefly Speak to each bullet]
Let’s now talk about Oracle’s presence in the Auto industry.
This slide summarizes some did you knows?
[Have the group read the slide]
Here is a gallery of our customer logos – first the OEMs
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 approach to dealing with your pain points is to focus on the complete business flow. I’ll be providing an example in a few slides.
[Speak to 3 bullets]
Business Intelligence – Most Oracle applications have a performance measurement framework that comes pre-configured with customized measurements relevant to that business flow. (Examples for purchasing – schedule attainment, quality attainment, quantity variances). You should be able to leverage information for speed & fact based decision making.
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 the Automotive OEMs today; Vehicle Design, Demand Capture, Planning and Procurement, Manufacturing and Incentive Management.
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.
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 Vehicle Design and Oracle uniquely enables Automotive OEMs to Enable Collaborative Vehicle Development
Product Development for an automotive OEM is more than just engineering components, sub-assemblies and entire vehicles. Efficiencies and speed in time to market are a result of improved process and management of: project tasks, resource, documents, and item / product structure information. Making these processes collaborative with the suppliers/partners enhances the trading relationships of the value chain. The product development process is a key part of the marketing, sales, and RFP response process that an OEM engages in with their potential and existing suppliers.
Managing large, complex programs (new vehicle platform design and launch, developing new production facilities, etc.) is challenging in the Automotive industry:
Lengthy to design and build (yet time pressure exist), engineering-intensive, capital-intensive, complex assets
May be highly specialized, yet there is still the opportunity to re-use and leverage design commonality
Oracle Product Development Exchange allows organizations to:
Establish projects that manage documents and track changes.
Work collaboratively on new designs, specifications, etc. with the ability to mark them up over the web, share the results with colleagues, and engage in threaded discussions.
Secure all materials so only the right information is shared with the right people (based on role based security).
Search materials to find/reuse information.
Manage All Types of Product Information
Capture information in a centralized repository regarding products, projects, specifications, requirements, issues and changes, costs, schedules, budgets and expertise.
Fully describe individual projects, products and documents by assigning them to specific categories, with category specific attributes.
Easily Archive and Retrieve with Advanced Search Capabilities
Mine information using advanced parametric (attribute based) searching techniques.
Collaborate in a Secure Environment – Get the Right Information to the Right People
Company Registry Required
Individual Access Based on Assigned Function
Additional Information: Script from generic Product Development presentation
The 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.
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 OEMs and suppliers 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.
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.
Oracle’s CADView offers extensive capabilities to collaborate already created CAD drawings.
One of the keys to collaboration is Security. If you are collaborating on designs with multiple customers or suppliers and only a few result in contracts, you do not want the others having your CAD file when the collaboration is done. Unlike other CAD viewing and markup tools that need to pass the file to all collaboration participants, Oracle CADview has patented technology to rapidly stream the view and allow markup from a secured server without ever giving the file to the participants. This is also a great advantage for version control.
Oracle is leveraging the ability of CADview to read any popular CAD system file to extract product structure item and attribute information to update the enterprise BOM needed by the remainder of the business processes.
Oracle’s Product Development/Project Collaboration solution allows automotive companies to share information and therefore design new and next-generation products more efficiently. With more complete, real-time information sharing, there are fewer errors, improved communications and quicker changes.
Specifically, companies can:
Capture information in a centralized repository regarding projects, documents, specifications and requirements, changes, etc. (listed on left side of slide).
Fully describe individual projects, products and documents by assigning them to specific categories, with category specific attributes.
Collaborate in a Secure Environment – Get the Right Information to the Right People
-- Company registry is required
-- Individual access is based on assigned function
Mine information using advanced parametric (attribute based) searching techniques.
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 Vehicle Design and Oracle uniquely enables Automotive OEMs to Enable Collaborative Vehicle Development
GENERIC SCRIPT –
Main message(s):
Oracle Procurement Solution satisfies all your procurement requirements
Slide Flow
Click mouse to show each element of Oracle Procurement Solution (first element does not need a mouse click):
1. Explain Process Automation (blue box)
Oracle Procurement solution automates all steps of the procure-to-pay business flow.
Using a sophisticated, yet customizable workflow engine our solution allows procurement professionals to define rules for approval and notifications, modify approvers or reviewers according to changes in business rules, and monitor the status of these rules, i.e. payments.
Oracle Procurement process automation focuses on optimizing resources, improving productivity, and increasing profits while reducing cost.
2. Click mouse: Explain Sourcing / Sources of demand (green/gray box)
Depending on the configured business rules, existing contracts or supplier catalogs, users will have the need to source for new products or services.
Oracle’s Procurement solution includes Oracle Sourcing, which offers sophisticated negotiation capabilities that reduce the time it takes buyers to source new products or services, and optimize the value of existing contracts. With complex negotiation tools (reverse auctions and traditional RFx (RFIs, RFPs, and RFQs),auctions and offers, Oracle Sourcing handles negotiations short and long, small and large, simple and complex.
With Oracle Sourcing you can:
Utilize Different Sourcing Strategies
Optimize Negotiation Results
Conduct Real-Time Negotiations
Specify Bidding Attributes
3. Click mouse: Explain Collaboration (red box)
Oracle iSupplier Portal offers a collaboration application that facilitates convenient, secure self-service business transactions between buyers and suppliers via the Internet. Our collaboration solution creates a powerful collaborative platform for a buyer to manage relationships with its global supply base. With this solution, suppliers can share business documents, and be immediately notified and respond to events in the purchasing and planning process, providing an unparalleled level of service.
4. Click mouse: Explain Integrated Intelligence (purple box)
Oracle Purchasing Intelligence can assist to sourcing new items, analyzing supplier performance, developing a commodity strategy, and analyzing spend. The system is designed for multiple levels of users, Oracle Purchasing Intelligence will help to gain unparalleled knowledge of your purchasing and supply operations. With this knowledge, users can quickly identify savings opportunities, improve supplier relationships, improve supplier service, and optimize operational efficiencies.
GENERIC SCRIPT –
Oracle’s solution offers a complete procure-to-pay flow, from sourcing (spend analysis, negotiate contracts) to procurement execution (desktop requisitioning, to purchase order, to receiving, to invoicing, to payment and reconciliation). This flow includes integration with content providers and suppliers.
Oracle Contracts provides comprehensive contract version control. Current articles may be compared to protected, historic versions. Supporting documents (subcontracts, contract addenda, etc.) can be electronically attached to contracts and are also version protected. In this capacity, your businesses can be assured that all parties, internal and external, are accessing the same contract & attachment version regardless of how geographically dispersed they may be.
Streamline Employee Ordering
Self-service ordering eliminates error-prone paper processes, improving productivity and control.
Web-Shopping Interface Ensures Rapid Deployment and Adoption
Oracle iProcurement lets you control spending by all employees because it is easy for you to implement and for them to use. Oracle iProcurement gives employees an intuitive web-shopping interface that is instantly familiar to anyone who has shopped online. Powerful search features and logically grouped online “stores” lead users to the products and services they need. Requesters can place and track orders from any web browser. This web architecture also allows rapid deployment to every employee because there is no desktop software to install. So your employees have immediate access to the system, and an interface they can use right away.
Content Control Guides User Choice
With Oracle iProcurement, Purchasing departments completely control the products, services and views that employees see; based on organization, responsibilities, and more. The content can be easily loaded into iProcurement and you can use your existing supplier agreements. Users find the items using a configurable category structure or employ the powerful advanced search capabilities. You can provide rich information on the items so employees make informed decisions. Suppliers can also manage content on your behalf. Oracle iProcurement allows users to punch-out to supplier-hosted sites, returning for checkout and approval. Additionally, iProcurement’s unique Transparent Punch-Out even allows users to access content from external sites without ever leaving the familiar iProcurement interface. By providing flexible options for user content, Oracle iProcurement gives you unparalleled ability to guide employees to make compliant purchasing choices.
Oracle Contracts provides comprehensive contract version control. Current articles may be compared to protected, historic versions. Supporting documents (subcontracts, contract addenda, etc.) can be electronically attached to contracts and are also version protected. In this capacity, your businesses can be assured that all parties, internal and external, are accessing the same contract & attachment version regardless of how geographically dispersed they may be.
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 Vehicle Design and Oracle uniquely enables Automotive OEMs to Enable Collaborative Vehicle Development
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.
Better planning leads to a much more efficient supply chain characterized by lower levels of inventory and better delivery performance to customers. With the Oracle solution, you can determine and coordinate inventory policies across your entire supply chain, reducing the amount of inventory at all levels.
Key capabilities include:
Optimize inventory investment
- Maximize service level while minimizing inventory investment
- Recommend inventory postponement
- Include supply, demand, and lead-time uncertainty
- Establish service levels by customer, channel, and product
Leverage a solution designed for planners, not programmers
Determine sourcing decisions and purchasing budgets
Integrate demand, inventory, and supply chain planning
Conduct integrated performance management
GENERIC SCRIPT –
Even as the frequency of planning increases, disruptions in between planning runs are still inevitable. Oracle Collaborative Planning allows you quickly adapt to disruptions in the supply chain.
MORE GENERIC SCRIPT –
As we discussed when talking about scheduling, even the best of plans change, and the changes do not only occur on the production floor. The sooner you are able to recognize issues, the more options you have for corrective action and the more time you have to react or implement contingency plans.
Supply Chain Event management reduces the time and cost of reacting to events as they occur. Workflow processes monitor the flow of information throughout your supply chain, and automate the resolution of problems as they occur. Notification to any parties in your supply chain – and suggested corrective actions – can happen automatically when problems are detected.
For example… (give an example relevant to the audience)
Reduce communication latency:
Notify all tiers simultaneously
Get visibility to fulfillment, purchasing, inventory and manufacturing events
Reduce expediting costs
Identify exceptions faster
Automate exception handling
Reduce inventory
Provide real time inventory visibility to suppliers
Enable VMI
Improve fulfillment cycle time
Automate replenishment process
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.
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
GENERIC SCRIPT –
As companies choose to cut costs by reducing Work in Process Inventory and improve manufacturing efficiencies, they will turn to Lean Manufacturing. Oracle Flow Manufacturing solution incorporates the principles of demand flow technology as defined by Costanza.
We have a complete solution that includes:
Line Design, Kanban Planning and Execution, Mixed Model Map and a great User Interface for Manufacturing execution.
We are at least a couple years ahead of SAP with our Lean Manufacturing solution.
Gartner has a very favorable report on Oracle’s Flow Manufacturing solution that you can access from the mfg portal.
Flow manufacturing is well suited for building of unique configurations on the same line in varying volumes, and therefore very suitable for Complex Equipment Manufacturers. With Oracle’s mixed mode manufacturing solution the customer can phase the switch over to Lean Manufacturing. They could continue to build sub-assemblies using Discrete Jobs but convert the Final assembly to Flow Lines.
Traditionally the Industrial products manufacturers like American Saw, Pella Windows, and Thermo King who face lower margins have been quick to switch to Lean Manufacturing and are using Oracle’s Flow Manufacturing product. We believe that Hi-tech manufacturers will do the same as they face lower margins and see the need to reduce manufacturing costs. I think they will have two choices – to either outsource the manufacturing or switch to Lean Manufacturing.
Add Script…
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 Vehicle Design and Oracle uniquely enables Automotive OEMs to Enable Collaborative Vehicle Development
Add Script…
Add Script…
Add Script…
Add Script…
Add Script…
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 Vehicle Design and Oracle uniquely enables Automotive OEMs to Enable Collaborative Vehicle Development
Add Script…
Add Script…
Add Script…
This defines Daily Business Intelligence and some examples of answers it provides.
This slides describes how Daily Business Intelligence helps companies with continuous improvement via
Use by all employees
Specific management tools
Portals/portlets
This is a screenshot of the portal…which delivers the information derived via the performance measurement framework and the pre-configured and customized measures listed on the two previous slides.
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.
This slide provides a summary of all five of Oracle’s key positioning points for Automotive OEMs.
It includes the key capabilities that support the positioning point.
This Automotive OEM solution map describes the key functions, metrics, and Oracle products associated with each key Automotive process.
Oracle continues to expand the already solid solution that exists today through every software release. Key capabilities for Automotive include:
Release and cumulative management, which allows suppliers to align component/sub-assembly delivery with the OEM assembly schedule for just-in-Time environment
Product/vehicle configuration which allows customers to control the design of their specific vehicles
Supplier management capabilities such as collaborative planning, supplier collaboration, vendor managed inventory and supplier scheduling to improve the alignment of manufacturing/assembly schedules
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
Oracle can support the needs of global automotive manufacturers.
Flow Manufacturing --- Kanban, Sequence data model
APS --- Sequence Constraint Optimization ( eg.paint ) with ILOG OEK
Supply Chain Exchange --- Exchange infrastructure at Covisint
Asset Management --- Preventative Maintenance integration to Mfg
iSupplier Portal --- Vendor Managed Inventory, Consignment Inventory
Transportation --- Premium freight intelligence
Procurement --- (Bill: lots to choose-- insert biggest hot button at JCI)
Configurator --- Complex vehicle book rules, performance metrics (buypower)
Release Management --- Cumulative Release Accounting
WMS with Mobile SC --- Bar Code scanning for ASN
PLM --- Portfolio management, engineering change, part re-use
Add Script…
Add Script…
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.
