Agile Product Lifecycle Management PLM 25 September 2020

Agile Product Lifecycle Management (PLM) 25 September 2020 HOST: John Kelley – VP, PLM Product Strategy

Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. © 2007 Oracle Corporation – Proprietary and Confidential 2

Agenda • The Profitable Innovation Challenge • How Complexity impact your Innovation Pipeline • Today's System & Business Problems • Agile PLM • Definition, Value and Customers • Agile PLM Solution Overview • Q&A © 2007 Oracle Corporation – Proprietary and Confidential 3

Executive Focus on Revenue from New Products Speed Innovation to Market…while delivering fastest TIME to the right VOLUME PRODUCT at the right MARGIN with Quality and COMPLIANT with Regulations In a world of increasing… Product Complexity More NPIs, Shorter Lifecycles, More Regulation, Complexity Product Network Complexity Increased Globalization & Outsourcing of Design & Mfg -Mckinsey study Improving time to market by one month improves profits by 12%” © 2007 Oracle Corporation – Proprietary and Confidential 4

Complexity Challenge how to innovate faster (better), with more complexity and less resources… Explosion of New Products + + Shorter Product Cycles & Life. Spans Accelerating Rates of Globalization & Outsourcing Acquisition Integration Increasing Product Complexity & Regulation More Complex Product Portfolios to Manage • Larger multi-site design teams • Increasing electronics and software (Mechotronics) • Ro. HS, REACH, FDA part 11 More and More = Product Launches

Problem: Disparate Data, Processes and Systems (some manual and paper-based) ARTWORK DESIGN …Cause Profit Leaks … is? Impact: h SUPPLIERS OUTSOURCED PARTNERS T e • Delayed product launches, missed market windows k i L k CUSTOMERS • Long cycle times o Design o REGULATORY L Samples Briefs BODIES s Package • High scrap and rework Designs m Submission te s • High supply continuity. Artwork costs y Value Chain Files S Formulas Files • Enterprise Low quality, higher warrantyacosts, nd low customer satisfaction s costs & Audits Ideas e • Higher development & material missed product. LEGAL margins & CA s Specifica MARKETING tions es CAD Models oc • High regulatory compliance costs (quality, environmental (Ro. HS), r P Governmental (Part ign 11) CAD Adobe Quark SCM ERP Notes Project Excel R&D (EUROPE) Excel u o Y Recipe Mgmt Do r s e D EDMS Access PROCUREMENT R&D (ASIA) CAD © 2007 Oracle Corporation – Proprietary and Confidential PRODUCTION R&D (US) MCAD DB Spec SCM ERP MES 6

Problem: 70 -85% of Product Costs & Supply Risk Locked in… by the Sourcing Decisions 95% Made During the Design Cycle 100 Life Cycle Cost Determinations Impact: 85% 1. Part and Supplier Proliferation 70% Fate was determined back here ! • • • 80 10 -30% of new parts and suppliers added each year are duplicate!! Adding 60 a new (duplicate) part/supplier cost $10 -40 k Design Time to Market, Margin, Risk Freeze Bloated 40 Supply Chains and Quality start in Design! 2. Designing 20 in Poor Cost, Quality & Supply Risk • • • 20 Up to 25% of parts & suppliers designed into new products don’t comply with Conceptual Design Detailed Design Production Operations supply chain strategies (creative, early phase) (engineering And Support phase) Select parts that. Source: are. DARPA obsolete, haveandquality, compliance or supply issues Rapid Design Exploration Optimization Project Select suppliers with quality and delivery problems Problem: The Gap between Design and Operations 1. Operations Doesn’t see Product BOMs until New Product 1. Intro make a majority of Sourcing Designs Engineers • Don’t factorvisibility in sourcing strategies, supplier manufacturing • Late makes it costly to fixperformance, supply chain problems limitations or supply chain constraints in those decisions • Or forced to buy off of VPA, expedite orders, lifetime buys They try to but…. Results in • Don’t have visibility into the business information stored in their manufacturing systems • Late product redesign High scrap & rework • • Engineers spend 20 -30% their time “attempting” to findand this information Delayed launches of Late to market, reduced revenue market share • Or late to new fix, so: Supply risks, then missed margins, lowan quality & yields • Easier to too introduce parts and suppliers find and reuse existing preferred one © 2007 Oracle Corporation – Proprietary and Confidential 7

Agenda • The Profitable Innovation Challenge • How Complexity impact your Innovation Pipeline • Today's System & Business Problems • Agile PLM • Definition, Value and Customers • Agile PLM Solution Overview • Q&A © 2007 Oracle Corporation – Proprietary and Confidential 8

Agile PLM enables companies to… Accelerate Profitable Innovation Reduce direct material & development costs Improve product quality & regulatory compliance Collaborate across global and outsourced organizations and partners …across the product lifecycle and extended enterprise © 2007 Oracle Corporation – Proprietary and Confidential 9

What is Agile PLM? PLM enables companies to accelerate profitable product innovation… …through the management of the information, processes and decisions about their products… …throughout the product lifecycle and securely & collaboratively across the global product network © 2007 Oracle Corporation – Proprietary and Confidential 10

Profitable Innovation starts with the Product Record The. A Solution Single “Version= of Agile the Truth”PLM SUPPLIERS ARTWORK DESIGN CAD Quark OUTSOURCED PARTNERS Adobe ERP SCM REGULATORY BODIES CUSTOMERS Value Chain Enterprise LEGAL & CA MARKETING Notes Project Excel R&D (EUROPE) Excel Recipe Mgmt Access EDMS PROCUREMENT R&D (ASIA) CAD MCAD © 2007 Oracle Corporation – Proprietary and Confidential PRODUCTION R&D (US) Spec DB ERP SCM ERP MES 11

The Enterprise (integrated) Product Record Customer Information Compliance Information - Regulatory - Standards - Audits - Corrective Actions Field instructions Service BOMs is g n i h Manufacturing Information t y r - Bills of Materials e v E - Mfg. Instructions - Revisions - a Service Information - Portfolio Information Requirements Configurations Quality Issues S , d e t c e h c r a e nn o C ble a Programs Schedules Resources Deliverables C d n s k c li y a w A Design Information - Schematics & Drawings CAD Models Software/Firmware Design Reviews Purchasing Information Supplier Information - Approved Vendors - Preference/Status - Availability - Pricing - Part/BOM Costs - Price History The integrated product record securely manages & shares all the key product information and connects & automates © 2007 Oracleall Corporation – Proprietary and Confidential the business processes required by the Product Network 12

Agile PLM? Complexity Enables Streamlined Processes, Better Product Decisions …through the management and coordination of the information, processes and decisions about their products… © 2007 Oracle Corporation – Proprietary and Confidential 13

Agile PLM Compliance Office Executives & Program Office Agile Product Portfolio Management Integrated product, program, resource & portfolio management Agile Product Governance & Compliance Agile Engineering Collaboration Engineering desktop integration & collaboration Product & program compliance against standards & regulatory requirements Cross-Enterprise Agile Enterprise Visualization Quality Professionals Native document collaborative visualization across the global enterprise Agile Quality Management Closed-loop product quality management across the extended enterprise Development & Engineering Procurement Professionals Agile Product Cost Management © 2007 Oracle Corporation – Proprietary and Confidential Product sourcing and lifecycle cost & risk management Engineering, Operations & Supply Chain Agile Product Collaboration Enterprise product record visibility, management & collaboration 14

Product Portfolio Management Analytics Track the volume and rate of new process requests. Portfolio Scorecard, Fit, & ROI Executive level view of. Strategic program status © 2007 Oracle Corporation – Proprietary and Confidential 15

Quality Management Analytics Problem Reports by Month and Failure Mode Track the volume and rate of new process requests. Time based analysis of process and failure modes © 2007 Oracle Corporation – Proprietary and Confidential 16

BOM Mgmt (Line BOM) © 2007 Oracle Corporation – Proprietary and Confidential 17

BOM and Design Change Mgmt Redline History – Showing What Has Changed © 2007 Oracle Corporation – Proprietary and Confidential 18

Change Captured in PLM Changes and History Workflow Traceability © 2007 Oracle Corporation – Proprietary and Confidential 19

PLM Completes The Enterprise Application Picture bridges the Gap Between Design and Operations… Order to Fulfillment New Product Introduction Product Innovation © 2007 Oracle Corporation – Proprietary and Confidential 20

PLM Enables you to Answer Key Business Problems 1. Across an Increasingly Globalized and Outsourced Design & Supply Chain Which New Product Ideas Should be Funded? 4 are the Funded Projects on Time and on Margin 2. How do I Reduce Cycle Time? 4 and Reduce Scrap, Rework and E&O 3. Are my Products “Designed for Supply” at Launch? 4 at Target Cost, Quality, Supply Risk 4. How do I Ensure Regulatory Compliance? 4 reduce the cost & time for ROHS, WEEE, FDA, Part 11, ISO audits 5. How do I Enable Globalization and Outsourcing Model 4 Securely Collaborate on data and business processes and Synchronize resources, schedules and deliverables across global sites and partners © 2007 Oracle Corporation – Proprietary and Confidential 21

PLM Mission is to Maximize Profitability at each Lifecycle Phase PLM enables companies to accelerate product innovation and maximize product profitability… © 2007 Oracle Corporation – Proprietary and Confidential 22

1, 300+ Enterprise PLM Customers GSK Cisco Apple Coca Cola Philip Morris International © 2007 Oracle Corporation – Proprietary and Confidential Tyson Foods 23

Agile Customer Results Complexity Challenges • Inefficient change processes • New Product Introduction lagging objectives • Increasing complexity in customer requirements • Increasing Regulatory requirements: FDA, ISO 9001 & 13485, IVDMD, CE, CSA/UL • Massive shift to outsourced manufacturing and design • Increasing complexity of products and finished goods • Product change management chaos creating “tax” on the business • Lack of global visibility of product, packaging and labeling data • Inconsistent tracking of ingredient data per country, leading to regulatory compliance issues • Need to reduce product cost and improve supplier collaboration • Too many steps to release products to market © 2007 Oracle Corporation – Proprietary and Confidential Results with Agile • 75 -80% reduction in change cycle times • 70% savings in document control • Standardized ECR and ECO -processes with 5 different business units • Full traceability for changes & approvals • FDA compliance - 21 CFR part 11, electronic signatures • Real-time collaboration in complex, extended product development operating model • Global, common product development process • End to end global product change processes (from authoring tool to factory floor cut-in (ERP = JDE)) • Increased accuracy and reduced time for product transfer • Enabled collaboration with internal and external partners • Reduced cycle times for packaging by 30% • 50% reduction in packaging/labeling errors and reduction in rework cost • Consistent tracking of ingredient data per country • Improved quality and compliance • Global visibility of data 24

Phoenix Systems -- Before PLM Serial, paper based processes No centralized information Software Supplier BOM ECO Form Part Request Information miscues File Directories Tracking Database EMS m. CAD e. CAD BOMs Weekly Part # Log Issue Meeting Copyright 2007 - Deere & Company Project updates Project costing Project docs ERP 25 Project plans Phoenix International

Phoenix Systems – After Agile Build Packages New/updated software Customers New/updated DWGs & Phoenix New/updated BOMs, SCHs Engineering EMS Partners Engineering Changes Change Requests Problem Reports New Components ECOs BOMs Items AML Cost Lead Time Agile centralizes and manages: ERP manages: • Material requirements planning • Order fulfillment processes • Procurement Copyright 2007 - Deere & Company ERP 26 • Parts, BOMs, AML • Documents • Change processes • Problems and corrective actions Phoenix International

PLM Results Enhance global competitiveness Improve product quality • ERP integration with 100% BOM accuracy • Product alerts, quality analysis • Feedback to engineering during NPI • Information is available anytime, anywhere • One product record, multiple ERP systems • Reduced development cost Increase employee efficiency Reduce rework, material scrap and obsolescence • 75% reduction in change management labor effort • ECO Cycle time reduced from 28 days to 9 days • Centralized product information • Agile contributed to: Copyright 2007 - Deere & Company – a 54% reduction in scrap – a reduction in design related rework – a reduction in obsolescence 27 • Resulted from improved ECO process Phoenix International

Agenda • The Profitable Innovation Challenge • How Complexity impact your Innovation Pipeline • Today's System & Business Problems • Agile PLM • Definition, Value and Customers • Agile PLM Solution Overview • Q&A © 2007 Oracle Corporation – Proprietary and Confidential 28

Agenda • The Profitable Innovation Challenge • How Complexity impact your Innovation Pipeline • Today's System & Business Problems • Agile PLM • Definition, Value and Customers • Agile PLM Solution Overview • Q&A © 2007 Oracle Corporation – Proprietary and Confidential 29