Oracle Business Intelligence Information Age Applications Name Title

Oracle Business Intelligence Information Age Applications <Name> <Title>

Foundation: Unified Information Architecture • Common data model Develop Contracts Market Projects Sell HR Order Customers, Suppliers, Finance Plan Products, … Maintain Procure Service Make Fulfill Business Intelligence enables a single source of truth • Comprehensive suite of applications designed to work together • Robust set of integration services based on open standards • Modular deployment by business flow • Single global instance implementations • Embedded business intelligence to report KPIs and drive continuous improvement

Oracle: Complete E-Business Intelligence Executives LOB Managers Management Reporting Performance Scorecards Users Ad-Hoc Reporting Cost to Budget Operational Reporting Business Analysts Planning & Modeling Forecasting & Modeling Profitability Analysis Goal Setting Budgeting Transaction Processing Financials, Supply Chain, Projects, PLM, Sales & Marketing, HR, Service AS 10 g / 10 g Legacy Systems, 3 rd Party Apps

Oracle Business Intelligence Relevant, Timely, Accurate Enables You To… Œ Deliver Daily Business Intelligence Align Operations with Corporate Strategy Maximize Customer and Product Profitability Accelerate Planning and Budgeting Cycles

What is Daily Business Intelligence? Daily Business Intelligence is a Comprehensive, Embedded Management Reporting Application which Enables Better and Faster Decision Making Using a Radically Simplified Architecture, Daily Business Intelligence Provides Better Management Reporting at a Dramatically Lower Cost

Intelligence Roles Daily Business Intelligence Users Transaction Users Business Analysts Managers / Executives Needs Transaction Processing Planning & Modeling Management Reporting Unified Data Transactions Summaries Plans

Daily Business Intelligence Coverage Reporting for ALL Business Functions • Order Management • Planning • Purchasing • Manufacturing • Shipping / Receiving • Maintenance • Product Management • Marketing • Sales • Service • Contracts • Finance • Human Resources • Project Management

Daily Results Flexible Time Periods Flexible Comparisons Key Performance Indicators Graphs and Trends Multiple Currencies Flexible, Pre-Built Reporting Summary Results Related Links

Easy, Intuitive Drilldowns

Daily Business Intelligence Enable Better, Faster Decision Making Procurement Ÿ Ÿ Ÿ What is my commodity spend by organization? Are we leveraging volume discounts from our suppliers? How does price, quality, and delivery compare to benchmark? How does cycle time compare to last month / quarter / year? What are the procurement processing bottlenecks? Manufacturing Ÿ Ÿ Ÿ What product specs and configurations are requested the most? How is global WIP and inventory changing? How can resource utilization be improved? Where are the largest cost variances and what are their trends? How well are suppliers meeting contract and quality requirements? Sales Ÿ Ÿ Ÿ What products are consistently getting special pricing requests? How many shopping carts were abandoned? What percentage of quotas are being met within my sales group? How many deals are being worked across my channels? How is the new compensation for partners driving indirect sales?

Daily Business Intelligence Enable Better, Faster Decision Making Financials Ÿ Ÿ Ÿ What is my revenue by line of business so far this month? Who are the most and least profitable customers? Which customers pay their invoices the fastest? The slowest? Which expense categories are growing most rapidly? What are my transaction costs? Human Resources Ÿ Ÿ Ÿ How does compensation affect project costs? Can I bill out skills at a higher rate? What key positions can this person fill? What certifications / courses have been completed? Do I have enough people for my project?

Radically Simplified Architecture 10 g and E-Business Suite 11 i • E-Business Suite 11 i - Unified Data Model No ETL load since you don’t move the transactions • Materialized Views Incremental refresh dramatically reduces summarization load • Real Application Clusters Query load directed away from CPUs running transactions Result: Significant Disk Space Reduction but with 100% of Transactions Available for Drill Down

Materialized Views Enable High Performance Summarization Initial Load Incremental Load AR Invoice Lines 70 M records in 100 minutes 650 K records in 30 minutes GL Journal Lines 50 M records in 55 minutes 770 K records in 18 minutes AP Invoice Lines 15 M records in 78 minutes 40 K records in 5 minutes Hardware Configuration: SUN Sunfire 12 K Number of Processors: 10 Processor Speed : 900 MHz / CPU

Summarize-in-Place Architecture AR Headers & Lines AR Distribution GL Account Company Sales Order PL / SQL Incremental Refresh Customer Cost Center Source Ledger Grp Sales Channel AR Revenue Base Summary Product Category Natural Account Incremental Refresh AR Revenue by: Manager indicates aggregation in a hierarchy LOB FC Type Manager MV Sales Channel FC Type Assign Company Cost Center LOB Financial Category (FC)

Real Application Clusters Support Mixed Workloads w/ Near-Linear Workloads ü Enables you to direct transaction processing and reporting load to different servers ü No need to fragment data Single Database on Disk Array Application Servers 4000 3500 3648 3000 2500 Number of Users 2000 1900 1500 1000 500 0 89% Scalability 1026 Single Node 2 Nodes 4 Nodes Running on HP Computers Database Servers

Dramatic Disk Space Reduction Summarize-in-Place or Replicate Transactions? Conventional Wisdom Data warehouse several times larger than OLTP database vs. Oracle Global Single Instance (GSI) with DBI • • Before DBI Summaries Added 3. 3 Terabytes Size of DBI Summaries 165 Gigabytes Percent Increase 5% Transactions Available for Drilldown 100 %

Evolution of Daily Business Intelligence (DBI) DBI v 5 (11 i. 8) DBI v 6 (11 i. 9) DBI v 7 (11 i. 10) Dashboards 21 31 36 KPIs 106 160 235 Intelligence Reports 155 318 581 Capabilities • Procurement Mgmt • Procure-to-Pay Mgmt • Service Contracts Mgmt • Profit and Loss • Expense Mgmt • Project Profitability Mgmt • Project Operations Mgmt • Human Resources Mgmt • Marketing Mgmt • Email Center Mgmt • Lead Mgmt • Opportunity Mgmt • Sales Mgmt • Quote Mgmt • Web Store Mgmt • Plan Mgmt • Commodity Supplier Mgmt • Commodity Spend Mgmt • Product Mgmt - Engineering • Manufacturing Mgmt • Customer Fulfillment Mgmt • Shipping Mgmt • Payables Status • Service Renewals Mgmt • Capital Project Cost Mgmt • Contract Project Cost Mgmt • Product Mgmt • Product Cost Mgmt • Inventory Mgmt • Product Revenue Bookings and Backlog • Customer Support Mgmt • Inbound Telephony Mgmt • Sales Forecast Mgmt • Purchasing Performance Mgmt (v 7. 1) • Purchasing Status (v 7. 1) • Warehouse Mgmt (v 7. 1) • Transportation Mgmt (v 7. 1) • Maintenance Mgmt (v 7. 1) • Depot Repair Mgmt (v 7. 1) • Funds Mgmt (v 7. 1) Oracle confidential. This is not a commitment to deliver. Product directions are subject to change without notice.

Oracle Business Intelligence Relevant, Timely, Accurate Enables You To… Œ Deliver Daily Business Intelligence Align Operations with Corporate Strategy Maximize Customer and Product Profitability Accelerate Planning and Budgeting Cycles

What is Balanced Scorecard? Balanced Scorecard enables companies to develop custom Performance Mgmt Systems to Align Operations with Business Strategy Balanced Scorecard integrates with Daily Business Intelligence to Provide Hundreds of Pre-Built KPIs

Flexible Performance Mgmt Systems Design Dashboards to Meet Your Needs Create performance management dashboards Present information in more strategic ways (e. g. cause and effect relationships)

Management by Exception Accelerate Problem Analysis • Provide performance color alarms for exception alerting • Identify out-of-target performance with color-coded graphs • Scope reasons for exception through cause and effect analysis

Assessment and Collaboration Compliment Data with Personal Insights From the latest numbers received from the regions we should be improving our revenue figures rapidly. I have some ideas that I would like to share with you in our next monthly meeting. Enable owner of strategic objective to share personal assessment about performance, such as availability of new data not incorporated in graph

Consolidated Notes & Document Links Communicate and Support Strategic Intent Annotations describe the intent of a strategic objective Links direct attention to related documents, including DBI reports

BSC-DBI Integration Speed BSC System Design & Simplify Management Repository of Available DBI Measures BSC Customized View DBI Measure • Easily display out-ofthe-box DBI measures in BSC views with point and click process • Eliminate need to map or load data into BSC for DBI measures BSC Report Showing DBI Measure

Web-Enabled Design and Reporting Simplify Design, Loading, and Accessibility • Scorecards • Strategic Objectives • KPIs Finance Web Sales Executives Web BS C Design Access Managers 10 g Operations Analysts Legacy Systems, 3 rd Party Apps Spreadsheets • Design and access BSC system through web browser • Feed BSC system with Oracle or non-Oracle data

Oracle Business Intelligence Relevant, Timely, Accurate Enables You To… Œ Deliver Daily Business Intelligence Align Operations with Corporate Strategy Maximize Customer and Product Profitability Accelerate Planning and Budgeting Cycles

Maximize Customer & Product Profitability Assess Current Profitability • Cost Allocation • Segmentation and Drilldowns Identify Improvement Opportunities • Future Profitability Model • Example: Cost Management Analysis • Example: Revenue Management Analysis Plan and Execute

Accurate Cost Allocation Enable Product and Service Profitability Analysis Direct Costs Products Services Customers Materials Map Activities Revenues from GL Materials Allocate via ABC* Channels Activities Indirect Costs • Calculate profitability, revenue, and cost by - Product - Channel - Service - Location - Customer - Time Period • Model cost structure for use in profitability forecasts * ABC = Activity Based Costing

Segmentation and Drill Downs Identify and Analyze Improvement Opportunities Segment Products, Customers, Channels, and Locations • By profitability • By revenue • By cost Drill Down to Multiple Levels of Detail Location Region Country Customer City Company Account

Future Profitability Model Evaluate “What-If” Scenarios North America Sales Forecast Statistics: MAPE = 3. 38% MAD = 199, 964. 63 RMSE = 286, 581. 40 • Project future sales - Use standard techniques (e. g. Holt-Winters) - Manually input projections • Determine resource requirements and costs with Activity Based Budgeting • Calculate lifetime value of customers

Example: Cost Mgmt Analysis Define Actionable Goals to Drive Cost Strategy Improve Efficiency • • Cost control Outsourcing Capacity management Business process re-engineering Identify high cost activities Find internal best practices Improve Effectiveness • • Service level re-balancing Error prevention vs. correction Core vs. support activities Channel entry / exit / re-design Baseline current activity / cost allocation Compare activity costs to int / ext benchmarks Check activity alignment with corporate strategy Identify target activities Evaluate “what-if” scenarios Set target costs Set target allocations Cost targets assigned to specific activities clarify accountability for driving improvements

Example: Revenue Mgmt Analysis Define Actionable Goals to Drive Revenue Strategy Identify Highly Profitable Segments Identify Unprofitable Segments Evaluate “What-If” Scenarios • • Pricing Product / service mix Bundling Customer migration & mgmt Product entry / exit / re-design Channel entry / exit / re-design Merger integration Input Cost Information and Decisions Decide Best Course of Action Set Targets & Goals Communicate Target Info to Marketing

Oracle Business Intelligence Relevant, Timely, Accurate Enables You To… Œ Deliver Daily Business Intelligence Align Operations with Corporate Strategy Maximize Customer and Product Profitability Accelerate Planning and Budgeting Cycles

Integrated Business Processes Streamline the Planning and Budgeting Cycle Define Distribute Submit & Approve • Identify KPIs • Develop plans based on corporate strategy • Streamlined automated process • Budget lines by Org • Notify managers • Adopt budget • Notify managers • Document / post Planning Process Management Define Create Distribute Analyze Submit Create Analyze • • • Run multi-dimensional what-if scenarios • Calculate variance • Determine profitability • Add user-defined annotations Identify organization Map plans to budget lines Develop hierarchies Build financial models Monitor & Improve • • Create budget book & monthly pack reports Analyze variance Examine exceptions Re-forecast Approve

Automated Planning Process Mgmt Simplify Administration, Control, and Auditability • Clearly Define the Planning Process - Rules - Schedules - Tasks - Owners • Automate Tasks - Set calendars Distribute worksheets Solicit and validate submissions Communicate assumption changes Route for approval • Track Actions and Status

Consistent Plan and Budget Definition Ensure Agreement with Corporate Strategy Business Unit 1 Plan 5 Year Plan Fiscal Year Plan Corporate Strategy Business Unit 2 Plan Business Unit 3 Plan Quarterly Plan for Rolling 18 Months Share business drivers, constraining models, and allocation rules across the enterprise to ensure consistency… • at various time scales • at multiple levels of detail • between business units

Comprehensive Analysis Validate New Plans with Historical Information • Integrate Financial & Operational Data from Multiple Sources - Data warehouses Spreadsheets Legacy / proprietary systems Oracle sources • Perform Analysis Tools Insights - Business calculation templates - Industry templates - Standard reports and graphs - Ad hoc analysis - Trends - Variances - Cause & effect relationships - Impact on profits • Share Analyses via Briefing Books

On-Going Performance Monitoring Rapidly Update and Fine-Tune Plans / Budgets • Automate the Performance Updating Process - Gather data from multiple sources - Perform calculations and analyses - Update forecasts and reports on a rolling basis - Generate and send worksheets / alerts to users • Collaboratively Adjust Forecasts - Gather user inputs via workflows Run multiple what-if scenarios Decide best adjustments Share analyses

On-Going Performance Monitoring Strengthen Performance Accountability Assign personal and hierarchical responsibilities across functions to plans, forecasts, and data Provide secure access to all information as required by role and responsibility Send automatic alerts to underperforming areas for explanation or corrective action

Oracle Business Intelligence Flexible and pre-built mgmt reports, drill-downs, simplified architecture Deliver Daily Business Intelligence Comprehensive scorecards, exception alerts, annotations Align Operations with Corporate Strategy Accurate cost & profitability modeling, reporting, and drill-downs Streamlined enterprise planning and reporting, on-going performance monitoring Maximize Customer and Product Profitability Accelerate Planning and Budgeting Cycles

Oracle Business Intelligence Products Develop Contracts Market Projects HR Sell Order Customers, Suppliers, Finance Plan Products, … Procure Maintain Make Service Fulfill Business Intelligence Management Reporting Planning and Modeling • E-Business Intelligence • Balanced Scorecard • • Activity Based Management Performance Analyzer Enterprise Planning and Budgeting Financial & Sales Analyzers

Information Age Applications