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MRD & SCM JRAP Meeting Greater ChinaKeith IpGC SCM Product Solutions

Agenda

• Summary of Product Solution Challenges for Discussions• Challenges for SCM and MRD in GC

• Market• Our Solutions

• Strategic Enhancement • Innovation for SCM Product Solutions• Catch Up• Industry Based Solution

CHALLENGES FOR GC SCM & MRD

Now and FutureIDC Apps Prediction for PRC

0.000

500.000

1000.000

1500.000

2000.000

2500.000

2006

2007

2008

2009

2010

2011

2012

TIME

RE

V (

US

Mil

) Product Supply ChainApplications

ERM Applications

CRM Applications

17% CAGR

20% CAGR20% CAGR

15% CAGR15% CAGR

20% CAGR20% CAGR

Assuming Oracle expects 30+% growth……

Gen more demand, win more over SAP, in areas where they suck

What SAP did when entering China?• Enter China in 1991, SAP China established

in 1995, Key wins of Lenovo and Haier in 1998

• Lighthouse Accounts – Invest in working with leading companies by industries (Investing in Sinopec for 3-4 years without any rev before signing a 10M deal)

• Heavily invest in partners – Granting 30% margin to partners

• Create Strong Eco-system in key industries – Oil & Gas, Chemical, Tobacco, Traditional Mfg, Metal, Auto, etc…

• Strong Partner Eco-system• Build up the Brand of Industry Solutions

SAP Today• A large pool of install base of upsell add-on license• Enough funding for other smaller companies as well as dropping

price when competing against us• Leverage their brand to sell more ERP

• With our brand legacy, it takes time for learning curve in order to penetrate into SAP install base

• SAP is building their specialization teams (PLM, SRM, EPM)• SAP is pushing their +1 Minimize Oracle’s Differntiators • Time Window is closing

ERP Landscape in China – Winning ERP with EDGE/Industry Solutions

Time

Ad

op

tio

n

MNC

Hi Tec

h

Telco

Large

Banks

Emer

ging

Indust

ries

Govern

men

t

SASAC

Mid

Mar

ket

ERP

+

EDGE / Industry Solutions ERP Replacement

EDGE / Industry Solutions

SAP IB

So What’s Next for Oracle?

• ERP is commodatized but still a foundation for companies to adopt – win ERP with EDGE and strategy

• Holistic x-LOB Investment Plan for Strategic Development in Multi-Dimensions• Industries

• Segment

• Cities

• Accounts

• Product Solutions

• Growth• Think out of the box

• True collaboration

Product Solutions Initiatives• Key Product Solutions Initiatives

• EDGE Applications by industries

• Key x-Product Solutions Initiatives• Service Part Management (APS + Siebel/EBS Service)• Enterprise PLM (Agile + PIM)• Total Customer Centric Logistics Management (Quote-to-Cash – Siebel

OM, OTM, Oracle FIN)• Integrated Financial Planning (Hyperion Planning + Demantra S&OP)

Challenges of Oracle Products

• Integration among Products• Time to Market of various AIA• More concrete content and material• Apps Integration with other GBU or Tech products like Retek,

Stellent, AutoVue, SPL• Time-To-Market for Local Language Support

• Chinese for Demantra and PS• More Clear Roadmap on SCM Analytics and Integrations with

Apps• More Clear Roadmap on How to Leverage Interlace• Pricing

• Agile list price is higher than pre-acquisition• OTM FUM is high enough to set the barrier for some customers. For

example, some ocean line companies may just want Supply Chain Visibility but the FUM will prevent from this type of customers. It also hurts when customer looks at 5- year investment plan especially when FUM grows rapidly.

Strategic Enhancements

Innovation for SCM Product Solutions

&

Catch up

Innovations

• Direct Material Sourcing with SRM Spend Analysis and Supplier Score Card• Start from Concept in PLM to Supplier Performance

Evaluation before inviting them for the tendering in Agile

• NPI in PLM with Demantra Simulation for the New Product’s Demand based on Attributes from History

• Integrated Design & Manufacturing via Project for Process

• Routing Design Support with Mfg Cost Estimation in PLM (like Costimator)

Catch Up

• User Friendliness of EBS (ajax?!, Web2.0 In R12x)• Attributes Based Planning in ASCP• Street Level Routing & Scheduling• Business Flow Modeler for OTM (Viewlocity)• SRM and Spend Management: Spend Planning Integrated

Procurement Transaction (Supplier Score Card linked with Survey, Spend Analysis & Supplier Performance linked with Tendering Package Preparation)

• Transportation Capacity Planning in OTM• WMS for 3PL (Acquisition?)• Bonded Warehouse

Industry Based Solutions (Need more feedback from GM)

• EMS Solutions in Various Domains• APS for Foxconn whom we can learn from• PLM for Foxconn

• Rail Solutions