Consumer Electronics Industry Story

1
Oracle Industry Solutions Consumer Electronics
ltNamegtltTitlegt
Information Age Applications
2
High Technology Segments
3
Consumer Electronics Value Chain
Component Mfg
Silicon Source
Supply Base
OEMs
Contract Mfg (EMS) / Original Design Mfg (ODM)
OEMs
Distributors Channel Partners
Semiconductor Fabrication
WebDirect
Sub Assy Mfg
VAR /Retail
Configure Package
Customers
Distribution Retail Channels
4
Consumer Electronics Drivers

• Demand Variability
• How can I minimize the impact of late and
  incorrect multi-channel forecasts?
• How can I deliver high customer service levels
  and still reduce inventory?

• Increasing Customer Demands
• How can I develop personalized products for the
  mass market?
• What can I do to more effectively move product
  through channels?

Dist RetailChannels
SupplyBase
OEMs

• Decreasing Product Lifecycles
• What can be done to address product proliferation
  in overcrowded markets?
• How can I minimize design complexity and increase
  component re-use?

• Margin Erosion
• How can I transform my service operations to a
  profitable business?
• How should I leverage outsourcing to reduce costs
  still retain key competencies?

5
A Need for ChangeLeading Business Trends

• Outsourcing of non-core/non-proprietary
  competencies
• Use of service as a key consumer retention
  strategy
• Channel and consumer-specific product designs
• Multi-channel distribution to reach broader
  demographic
• Lean initiatives to reduce cycle time and waste

6
A Need for ChangeExtend Lean Initiatives Across
the Enterprise
Sales Operational Planning
Sales Mktg
Finance
Engineering
Service
Information Technology
Supply Management
Production
Continually Improve Quality, Cost, and Cycle Time
7
Oracle in High TechnologyDid You Know?

• All of the top 25 Electronic OEMs run Oracle
  applications
• 47 of the top 50 Electronic OEMs run Oracle
  applications
• 7 of the top 10 Semiconductor companies run
  Oracle apps
• 5 of the top 10 Fabless Semiconductor companies
  run Oracle applications

8
What Analysts are Saying
9
What Customers are Saying
Oracle gave Panasonic AVC more disciplined
supply chain practices to significantly
reduce inventories and increase customer
satisfaction. -- Paul Rizos, Principal
Consultant, KPMG Consulting
10
What Customers are Achieving
reduced inventory levels 40 and time-to-market
30 reduced procurement and inventory costs by
29 reduced order entry time 75, reached 99.5
inv accuracy reduced order-turnaround time from 5
days to 4 hours improved productivity via common
business processes consolidated 20 disparate
systems into single 11i instance
11
A Few More Customers
12
Oracle E-Business SuiteBuilt on a Unified
Information Architecture

• Common data model enables a single source of
  truth
• Comprehensive suite of applications designed to
  work together
• Robust set of integration services based on open
  standards
• Modular deploymentby business flow
• Single global instance implementations

13
Tailored to Consumer ElectronicsSupport for Key
Processes
Intelligence
Trade Mgmt, Marketing,Sales
ProductLifecycleManagement
Customer Service
Planning Manufacturing
Outsourcing Management
Technology / RosettaNet
14
Oracle Consumer Electronics Solutions
Intelligence
ProductLifecycleMgmt
Trade Mgmt, Marketing,Sales
CustomerService
Planning Mfg
OutsourcingMgmt
Technology / RosettaNet
Enable you to

• Establish and Sustain Profitable Innovation
• Adopt Lean Operations to Manage Demand
  Variability
• Manage and Grow a Profitable Service Business
• Command and Control Outsourced Operations
• Improve Sales Channel Visibility and Collaboration

15
Product Lifecycle ManagementAccelerate Creation
of Base Platform
Internal
Portfolio Management
Phase-GateControl
Engineering
Manufacturing
New Product Intro
Concept
Design for SC Compliance
Collaboration
Retire
Sales Mktg
Purchasing
Design
BOM Mgmt Release
Specifications Drawings Schedules Issues Ideas Cha
nges
ProductDataRepository
Maintenance
Prototype Test
ComponentSourcing
Service
Finance
External
VolumeProduction
SalesConfiguration
Release
Ramp-up
Issue/ChangeManagement
Customers
Suppliers
Contract Mfgrs
Product Intelligence
16
Design Specific Models from Base Platform
Base Platform
17
Search and Find the Best ComponentsEfficiently
Select Components Based on Requirements
Browse Category Hierarchy
Category
Search
Search Components by Specification Values (and
compare search results)
Attributes
AttributeValues
Choose Best Fitting Component
Best Component
18
Control the Product Change ProcessAccurately
Incorporate Customer-Directed Changes
ID Issue
Assign Notify
AssessImpact
Review
Approveor Reject
Create Change Request (ECR)
Cost
Schedule
Alerts Notifications
Engineer
Dispositions
Workflow Driven
ImplementChange
Test Approve
Review
CreateWork Pkg
Create Change Order(ECO)
QA / Engr
Engineer
Org 1, Org 2,

• User-Defined Change Types
• Streamline Review and Approvals
• Facilitate Multi-Company Collaboration

19
Online Configuration and OrderingGuide Customers
Through Product Selection Process
20
Convert BOMs Track Configurations Manage
Complexity Through Entire Product Lifecycle

• Convert configured product information as
  products evolve through lifecycle
• Create sales BOM from engr BOM and use for
  guided selling via online Configurator
• Track device serialization and genealogy for TQM
  and ISO compliance
• Associate failures with original designs for
  root-cause analysis
• Track product designs through EOL
• Manage complex, multi-dimensional data (item
  types, location, platform, etc.)

Bill of Materials
21
Oracle Consumer Electronics Solutions
Intelligence
ProductLifecycleMgmt
Trade Mgmt, Marketing,Sales
CustomerService
Planning Mfg
OutsourcingMgmt
Technology / RosettaNet
Enable you to

• Establish and Sustain Profitable Innovation
• Adopt Lean Operations to Manage Demand
  Variability
• Manage and Grow a Profitable Service Business
• Command and Control Outsourced Operations
• Improve Sales Channel Visibility and Collaboration

22
Multi-Tier Supply Chain PlanningSynchronize
Plans To Reduce Lead Times
You(OEM)

• Extend Visibility to Multiple Tiers
• Communicate requirements to all suppliers
• Replenish and maintain inventories at customer
  sites on a consignment basis
• React Faster to Suppliers Constraints
• Get visibility to supplier capacity
• Reallocate key components
• Make alternate sourcing decisions
• Reduce Obsolescence
• Understand impact of BOM changes to your CM or
  Supplier
• Reduce Non-value Added Costs and Exception
  Overload
• User-configurable exceptions
• Automated exception handling via workflow

SemiconSupplier
Customer
EMS
Demand computer
Consensus forecast
Runplan
Supply forecast
Forecast board
Run plan
Supply commit board
Supply commit CPUs
Forecast CPUs
CustomerConsignedInv Hub
Visibility
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Multi-Tier Supply Chain PlanningRisk Pooling via
Inv. Optimization Postponement

• Reduce inventory without sacrificing customer
  service
• Use analysis toolsto determine
• Where to optimally hold inventory (stage
  location)
• What quantities to hold
• What safety stock to keep
• Evaluate KPIs to assess service levels,
  postponement strategies, revenues, costs, etc.

Use Planned Inventory Points that Enable
Flexibility
24
CTO and MTS Manufacturing Minimize Inventories
Increase Customer Satisfaction
Check Avail-ability
StandardProduct
SelectMfg SourceIn-House? Outsource? Drop Ship?
ScheduleforProduc- tion
Retail Dist
WebDirect
ConfiguredProduct
Configure
Create MfgBOM Routing
Customers /Channels
Global ATP and Pricing
Production Plan
Pick (or Receive)

• Automated
• Creation of Orders and Schedules
• Creation of BOMs Routings
• Accurate Order Promising
• Materials Allocation Option Dependent Sourcing

Ship (or ASN)
DCs(Inventory Optimizedfor Customer
ServiceRequirements)
Invoice
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Multi-Mode Manufacturing
DemandVariability
IntegratedIntelligence
CostAnalysis
Productivity
ProductLifecycle Mgmt
Outsourcing
Planning
Mixed Mode
CTO
ATO
Warehousing / Transportation
Contract Mfgrs
DiscreteFlow
Real-TimeWIPVisibility
MTS
Seiban
AssetMaintenance

• Planned Orders
• Schedule Changes
• Component Substitutes
• Resources Substitutes

Quality Management
Analyze
Adjust
Sample
Service
Lot / Serial Genealogy Tracking

• Material Availability
• Mfg Capacity
• Schedules/Changes
• Production Status
• Ship Notices
• Invoices/Payments

• Demand Schedules
• Sequencing
• Configured Order

MES APIs,DirectAccess
PartnerCollaboration(RosettaNet)
EnterpriseShop Floor
Suppliers
Customer
Contract Mfgrs
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Flow Mfg for Mass Customization
Build a Mix of Models andConfigurations on the
Same Line
Customers
Production Line
Sequenced POs
Sequenced Demand
Operation 10
Operation 20
Operation 30
Operation 40
Bin 1
Bin 2
Bin 1
Bin 2
Bin 1
Bin 2
Bin 1
Bin 2
Kanban Replenishment
Inventory
Feeder Plant
Feeder Line
Suppliers
Support Lean Manufacturing Practices to Reduce
Cycle Time and Waste
Synchronized Production
27
Manufacturing Logistics IntegrationEfficiently
Move Products from Assembly to Customers

• Warehouse Management Integration
• Cross-dock and direct ship to / from
  manufacturing
• Comply with labeling requirements
• Create track LPNs and lot / serial numbers
• Enable simple kitting to full bill of materials
  or work order jobs
• Leverage RFID for receiving and shipping
• Support seamless configure-to-order (CTO) flow

Sales Orders
Mfg Operations
WMS Solution

• Transportation Management Integration
• Promise orders and plan transportation based on
  material availability
• Incorporate true transit times and transportation
  costs into supply plan
• Re-plan transportation if manufacturing delays
  require expediting

MfgOperations
Transportation Plan
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Oracle Consumer Electronics Solutions
Intelligence
ProductLifecycleMgmt
Trade Mgmt, Marketing,Sales
CustomerService
Planning Mfg
OutsourcingMgmt
Technology / RosettaNet
Enable you to

• Establish and Sustain Profitable Innovation
• Adopt Lean Operations to Manage Demand
  Variability
• Manage and Grow a Profitable Service Business
• Command and Control Outsourced Operations
• Improve Sales Channel Visibility and Collaboration

29
Improve Customer SatisfactionWhile Driving
Revenue via Value-Added Services
Customer/Prod Info,Knowledge Base
SecureAccess
Intelligence
Users
Channels
Self-Service
In-House Repair
DeliveryOptions
Field Service
Agent Assisted
Self-Service
Agents
Service Parts Logistics
Analysts
Close Bill
Repair /Resolve
Identify Verify
Plan Schedule
Email
Analyze
Debrief
Prioritize
Workflow Automation
Customers
Phone
Contract Entitlements / Warranties
In Person
Partners
Shipping /Receiving
Orders Open SRs
Invoices Payments
MarketingOffers
Inventory
30
Provide Intuitive, Self-Service Experience Drive
Customers to Lowest Cost Channel
Review contract / warranty data
Report anew issue
Search knowledge
Personalizedcontent
Review service request status and updates
31
Automatically Verify Entitlements Accelerate
Response via Seamless Contract Integration

• Define service coverage and determine
  entitlements
• Sell different types of services on a single
  contract
• Warranties, extended warranties
• Usage-based or subscription-based
• Bill accurately based on actuals or estimates
• Time-based per regular service fees
• Usage-based per volume / incidents
• System routes customer based on existing info
  (e.g. gold-level customer)
• Analyze renewals for recurring revenue
  opportunities

32
Manage RMAs and Product ReturnsSupport Complete
Logistics Repair Processing Needs
Direct Product Return
In-House Repair
IdentifyResolutionNeeds
GenerateRMA
Receiveand Inspect
Estimate andApprove
PlanandSchedule
DebriefandBill
Repair,Refurbish,Reclaim
Store,Ship
Exchanges
IdentifyResolutionNeeds
Send Loaneror Exchange
Billing
Mfg Inventory
Shipping / Receiving
HumanResources
Contracts

• Monitor Return of Damaged and Serviceable
  Products
• Perform diagnostics and job estimates
• Execute shipment back to customer and invoice for
  services rendered
• Track Repair Status and Actual Costs
• Automatically Update Product Configuration and
  Repair History

33
Manage Field Service OperationsAddress Needs at
Customers Preferred Place Time
SpareParts
CreateField WorkOrder
DispatchFieldTechs
IdentifyResolutionNeeds
ResolveOn-Site
Optimize Schedule
Invoice Customer
Debrief
Mobile Capabilities

• View and update schedule
• Access service levels
• Update product / issue data real-time
• Order parts remotely
• Report time, material and expenses incurred

• Access Options
• Wireless connected
• Disconnected w/ periodic synchronization

34
Improve Spare Parts PlanningReduce Inventory
Costs and Resolution Time
Planning
Supplier
PurchaseOrders
Requirements
Delivery
Parts
Schedule
Planner
Technician
Warehouse
MoveOrder
PartReqs
Parts

• Delivery Dates
• Part Pick Up Locations
• Move Orders
• Lead Times

• Emergency Orders
• Authorized Stock List
• Defectives Recovery and Returns

• Automated Stocking Rules
• Excess Inventory Management
• Automatic Replenishment Rules Based on Historic
  Usage Patterns

35
Oracle Consumer Electronics Solutions
Intelligence
ProductLifecycleMgmt
Trade Mgmt, Marketing,Sales
CustomerService
Planning Mfg
OutsourcingMgmt
Technology / RosettaNet
Enable you to

• Establish and Sustain Profitable Innovation
• Adopt Lean Operations to Manage Demand
  Variability
• Manage and Grow a Profitable Service Business
• Command and Control Outsourced Operations
• Improve Sales Channel Visibility and Collaboration

36
Outsourced Manufacturing ChallengesLess
Visibility, Less Control, Conflicting Information
ATP based on supplier capacityand availability
of optional components
Communicating configuration changes to
multiplesupplier tiers
Enforcing compliance to mfg instructions and
methodology
Capturing the as built genealogy and product
traceability information
Tracking and reporting WIP and order status to
customers
Enforcing product quality standards
Communicating shipping instructions,
authorizations, and notifications
Managing and monitoring inventory levels (WIP,
etc)
Tracking in-transit shipments fromsupplier to
customer
All the Headaches of In-House Manufacturing are
Amplified
37
Example Drop Ship from Partner to Customer
Customer
OEM
ManufacturingPartner (MP)
Carrier

• OEM Process Description
• Outsources 100 of assembly
• Orders components for delivery to Partner
• Asks Partner to drop ship to Customer
• Manages shipping and customer billing

ComponentSupplier
38
Outsource with Confidence Achieve Total
Visibility to Outsourced Mfg Logistics
Partner Setup Implement Control from the Start
Outsource Mfg Seamlessly Extend Your
Operations

• Model Manufacturing Partner (MP) as an internal
  org to simulate material flow, order processing,
  and mfg processes
• Define BOM and routing to build assembly at MP
  location
• Create operations that mimic process at MP so
  status can be tracked
• Define sourcing rules to buy assembly from MP and
  buy components from Supplier

• Capture sales order to create MP demand for
  assembly and Supplier demand for component
• Define a single, holistic supply chain plan that
  includes MP and Supplier capacity/availability
• Run plan and implement planned order as a work
  order for MP work (auto-creates assembly PO with
  customer ship-to)
• Implement planned order from Supplier
  (auto-creates component PO with MP ship-to)

39
Outsource with Confidence Achieve Total
Visibility to Outsourced Mfg Logistics
Shipping Manage Final Delivery to Customer
Monitoring Report Progress with Accuracy

• Automatically flow ship-to requirements (address,
  promise date, etc.) from Sales Order
• Select carrier based on shipping method, price,
  routes, availability
• Schedule pick-up from MP and delivery to Customer
• Track shipments en-route (punch-out to carrier
  systems)
• Allocate freight costs back to Sales Order line
  item

• For each MP operation determine required tracking
  level. Notification of
• Moves and Completions
• ASNs
• Physical Receipt of Goods

Invoicing Auto-Create Invoices for POs

• Pay only for amount received (e.g., received 20
  assemblies against a total order of 40
  assemblies)

40
Facilitated Supplier CommunicationsEnable
Suppliers to have Easy Access to Critical Info

• OEMs Send
• Purchase Orders
• Schedules
• Bill of Materials (BOMs)
• Operation Instructions
• Drawings Attachments

Export entire structure to Excel

• Mfg Partner Send
• Adv Ship Notifications (ASNs)
• Quality Results
• PO Acknowledgements

Attach itemsto POs
41
Serial / Lot Genealogy and TrackingAlways Know
the Source and Placement of Each Part
ManufacturingPartner
Server (S.No. 512)
Ireland
Suppliers
PCI Board (S.No. 717)
Storage (S.No. 929)
BoardsR Us
Austin
Disk Array (S.No. 892)
Memory (Lot No. 115)
CPU (S.No. 232)
Acme ChipFab 12
E. StorageAustin, TX
SKD Co.S. Korea
Disk B (S.No. 339)
Disk A (S.No. 676)
Nippon FabJapan

• Trace a customer shipment back to the original
  source
• Trace a lot or individually serialized product
  through supply base

42
Extend Reach Through 3rd Party ServicesControl
Scheduling and Meet Contractual Obligations
ViewKPIs
Search based onmultiple parameters
View sparesinfo, orderparts, returndefects
Toggle betweenhide / show toview summary
vs.detailed SR info
Create additionalSRs, tasks notes
43
Oracle Consumer Electronics Solutions
Intelligence
ProductLifecycleMgmt
Trade Mgmt, Marketing,Sales
CustomerService
Planning Mfg
OutsourcingMgmt
Technology / RosettaNet
Enable you to

• Establish and Sustain Profitable Innovation
• Adopt Lean Operations to Manage Demand
  Variability
• Manage and Grow a Profitable Service Business
• Command and Control Outsourced Operations
• Improve Sales Channel Visibility and Collaboration

44
Support Multiple Sales Channels
OEM
Customer
Business
VP Sales VP Channels
Consumer
Internet Customers
Self Service
Call Center Agents
Tele-Sales
45
Improve Sales EffectivenessOptimize Selling with
Productivity Tools

• Automate routine tasks
• Manage activities, contacts, calendar, etc.
• Generate quotes, proposals, orders
• Flow documents for approval
• Create sales contracts
• Deploy best-practice sales methodologies

• Manage territories and align compensation with
  corporate objectives
• Automate territory assignments
• Measure quota and performance
• Support numerous compensation models (quota
  based, team compensation, etc.)
• Manage customer info, contacts, opportunities,
  leads and forecasts
• Synchronize with disconnected, mobile users

46
End-to-End Trade Mgmt FlowStreamline Promotions
and Claims Management

• Execute
• Create terms agreements
• Validate eligibility
• Set pricing rules
• Calculate accruals and discounts

• Analyze
• Analyze historical sales
• Forecast sales volume
• Calculate forecast ROI
• Measure contract compliance

• Settle
• Create check / credit
• Manage deductions
• Perform mass settlements and automatic payments

Analyze
Execute
Monitor
Plan
Settle

• Monitor
• Update checkbooks GL
• Calculate actual ROI
• Verify field activities
• Capture PoS data

• Plan
• Set sales quota / target
• Create budgets and promotions
• Define thresholds compliance
• Allocate to sales hierarchy
• Create account plans

Point of Sale
47
Promotional Planning ExecutionMaximize the
Effectiveness of Promotions
Enabling Capabilities
Objective
Trade Process

• Evaluate ROI and impact on sales volume
• Accurately account for all spend
• Control allocation / eligibility of all
  promotions and discretionary sales spend

Set Foundation for Tracking Spending and
Performance
Promotion and Budget Creation

• View current/potential liabilities fund
  balances
• Continuously monitor promotion effectiveness and
  make mid-stream adjustments
• Validate promotion performance of channel partners

Anticipate and Control Expenses / Liabilities
Promotion and Budget Monitoring

• Validate retail promotions
• Document claims research and track changes
• Settle accounts via multiple methods (e.g.,
  check, credit / debit memo, write-off, charge
  back, RMA)
• Identify and collect invalid claims

Reduce Revenue Leakage and Accelerate Resolution
Claims Research and Settlement
48
Self-Service Partner DashboardIncrease Channel
Satisfaction and Efficiency
Partner Dashboard
Tier 1 Partners
Tier 2 Partners

• Register deals and manage referrals / leads
• Manage partners programs
• Link to iStore or iSupport

• Manage profile define users
• Review targeted promotions, content, and
  referrals
• Register / enroll in programs

Channel Managers

• Publish targeted content / promotions
• Cleanse, review, and approve incoming partner
  submissions

• Process special pricing requests
• Track commissions

• Deploy branded channel dashboards
• Streamline and track partner interactions

49
Internet Selling via Online Stores Lower Cost of
Sales with Unassisted Selling

• Capture promotions / discounts
• Apply terms and conditions

• Configure complex orders
• Check product availability

• Manage shopping cart
• Request assistance

Price
Tailorable,WorkflowDrivenProcesses
Select
Checkout

• Create quote / order
• Pay or invoice

• Browse / search for items
• Review targeted content

Shop
Pay
Fulfill
Retain

• Confirm order / shipment
• Monitor order status

• Evaluate personalized content campaign offers
• Review up-sell / cross-sell items

Service

• Collaborate on issues
• Process returns

50
Integrated ThroughoutEntire Offering
Business Intelligence Corporate Governance
and
51
Deliver Daily Business IntelligenceReal-Time
Access to Complete Business Information
What are the project schedule and budget impacts
of design change?
How should I allocate production resources to
meet variable demand?
How are supplier deliveries impacting my on-time
delivery capability?
How is my backlog of open service requests
changing?
How much incremental volume are trade promotions
driving?
52
Business Intelligence Timely,
Accurate, Relevant

• Daily updates on key performance indicators
• Actionable infoon cost savingsand incremental
  revenue opportunities
• Role-based views
• Marketing Sales
• Order Mgmt
• Planning
• Purchasing
• Manufacturing
• Logistics
• Service
• Product Mgmt

Flexible Time Periods
Flexible Comparisons
Real-Time Results
Graphs
Links
PerformanceMeasures
Reports
53
Corporate Governance
A heightened business focus on accuracy in
reporting to investors brought on by recent
fraudulent practices of several major corporations
Sarbanes Oxley Act (SOX)
EU Anti-Fraud Directive (Mar 2004)

• Senior mgmt personal liability for financial
  result accuracy
• Senior mgmt and outside auditor attestation to
  the effectiveness of internal controls
• Accelerated SEC filing deadlines

• 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
Oracle Helps Drive Compliancethrough Visibility,
Control, and Efficiency
54
Corporate Governance Visibility, Control,
Efficiency
Visibility
Control

• Identify issues early
• Enable real-time information access performance
  mgmt
• Consolidate global financials
• Unify corporate reporting

• Integrate and centralizebusiness operations
• Document processesand support compliance
• View, test, and certifyinternal controls
• Manage corporatecommunications

Centrally Manage Policies and Procedures
Provide Single Source of the Truth
Efficiency

• Consolidate and reconcile information rapidly
• Automate business processes and broaden use of
  self-service
• Simplify IT infrastructure
• Leverage best practices from different groups /
  regions

Orders
YourCompany
Customers Suppliers
Invoices
Payments
Requisitions
Automate Processes and Extend to Customers
Suppliers
55
All Built on Leading Technology
DatabaseServer
ApplicationServer
56
Oracle Consumer Electronics Solutions
Collaborative development with integrated BOM
management and controlled ECR / ECO processing
Establish and SustainProfitable Innovation
Adopt Lean Operations to Manage Demand
Variability
Multi-tier collaborative planning, complete CTO
process with flow mfg for mixed model production
Manage and Grow a Profitable Service Business
Comprehensive entitlement verification with
multi-channel customer service and spares planning
Complete support for tiered, outsourced
manufacturing 3rd party customer service
coordination
Command and Control Outsourced Operations
Single view of customers interactive marketing,
trade / partner management, and sales
Improve Sales Channel Visibility and Collaboration
Integrated Business Intelligence Corporate
Governance
57
Footprint High Tech - Consumer Electronics
Establish and Sustain Profitable Innovation
Improve SalesChannel Visibilityand Collaboration
Manage and Growa ProfitableService Business
Adopt LeanOperations to Manage Demand Variability
Command and Control Outsourced Operations

• Customer expectation for immediate attention and
  hand-holding through resolution

• Downward price pressure from lower cost, high
  quality producers

• Concurrent pressure on profitability,
  time-to-market, and increasing design complexity

• Increasing reliance upon complex distributor /
  channel relationships

• Outsourcing to EMS providers ODMs as de-facto
  model
• Globalization of customer base

Drivers

• Missed or delayed product introductions
• Funding of low-value projects with resource
  over-utilization

• Inability to measure effectiveness of
  channel-specific promotions

• Spares shortages resulting in late shipments
  repairs
• Poor visibility to warranty obligations

• Poor visibility to real demand
• Multi-channel require-ments w/ fragmented supply
  networks

• Poor visibility to outsourced WIP
• Difficulty ensuring sa-tisfaction when using 3rd
  party services

Challenges
Supply Chain Planning Collaborative
PlanningAdvanced SC PlanningInventory
OptimizationGlobal Order Promising Outsourced
Mfg Logistics Internet Supplier
Portal Discrete Mfg, Inv Mgmt Order
Management Transportation Execution Outsourced
Service Mgmt Service Contracts iSupport,
TeleService Field Service, Spares Mgmt
Marketing Trade Mgmt MarketingTrade
Management Advanced Pricing Order
ManagementFinancials Sales iStore Configurator
Advanced PricingField SalesTeleSales Quoting
Product Lifecycle Mgmt Product Data
MgmtCADView-3D Configurator Sourcing Project
Management Proj Portfolio Analysis Project
CollaborationProj Resource Mgmt
Supply Chain Planning Collaborative PlngDemand
PlanningAdv SC PlanningInv Optimization Global
Order Promising Order Capture Order Management
Config, Adv Pricing Production Logistics Mfg
SchedulingDiscrete / Flow Mfg Inv Warehouse
Mgmt Transport Plng Exe
Customer Care iSupport TeleService Interaction
Center Service Contracts Service Execution
Field Service Mobile Field ServiceAdvanced
Scheduler Spares Management Depot Repair
Oracle Enablers
Enterprise Infrastructure Procurement,
Financials, Human Resources, Projects
Performance Management E-Business Intelligence,
Balanced Scorecard, Enterprise Planning
Budgeting
Corporate Governance Internal Controls Manager,
Financials, Tutor, iLearning
Business Process Integration Supply Chain
Trading Connector for RosettaNet, Adapters
IT Infrastructure Database Server, Applications
Server, Systems Management, Development Tools,
Collaboration Suite
Services Consulting, IT Outsourcing, Education,
Support
58
High Technology Capabilities
Evolution of Oracle Applications in High Tech
New in 11i.9
Base Differentiators
New in 11i.10

• RosettaNet Transactions
• Product Data Mgmt
• Consigned Inventory
• WIP Serial Tracking
• Partner Program Mgmt
• 3rd Party POS Data Import (to calc Promotional
  Accruals)
• Outsourcing Support for Multi-Level
  Configurations
• Advanced Configuration Modeling
• Resource Centric Scheduling Workbench
• Integrated Maintenance and Production Planning
• Quote Proposal Mgmt

• Real-Time Shop Floor Visibility
• Configure to Order
• Supplier Collaboration VMI
• Inventory Postponement and Optimization
• Lot/Serial Genealogy
• Collaborative Planning
• Advanced WIP Yield Mgmt
• Planned Stocking Points
• End Item Substitution
• Allocated ATP
• Lead to Quote to Order Mgmt
• Waterfall Analysis
• Service Contracts
• Integrated Service Mgmt

• Product Data Hub
• Project Portfolio Analysis
• Global Sales Operations Planning
• Inventory Optimization Analytics
• Channel / Partner Management
• International Drop Shipments
• Transportation Planning
• Customer Consigned Inventory
• Option-Dependent Sourcing
• Procurement Contracts
• Special Pricing (Ship Debit)
• Automated Spare Part Return and Repair Processes
• RFID Transaction Support
• Trade Planning and Execution
• Deal Registration

59
Lower Total Cost of Ownership (TCO)
E-Business On Demand
Run on a Single Global Instance
OracleManages
YouManage
Needs
Roles
Availability Security Performance Change Problems
50 Lower Cost 50 Better Svc Core
Competence Predictable Cost
App Admin DB/AS Admin Sys Admin HW Admin
Consolidate Data Centersand Databases
Low Cost Linux Hardware
Standardized Open Integration Platform

• 3x Faster, 5x Cheaper
• Easy to Automate en Mass
• Highly Reliable

• Business Events Infrastructure
• Industry Standard Protocols
• Centralized Integration Repository

Oracles Experience with Linux
Customers, Suppliers, Products,
Production Midtiers 100 Linux Production DB RAC
Cluster (Unix) Demo Environments 100 Linux
Development 100 Linux Outsourced
Customers 70 Linux
Simplify B2B Integration, Application
Connectivity, and Process Management
60
Lower Total Cost of OwnershipRun on a Single
Global Instance
Support Global Operations

• 30 Languages
• Multiple Currencies
• Customers in 100 Countries
• All Languages Installable in Same Unicode
  Instance
• Support for Statutory and Customary Local
  Requirements

61
Lower Total Cost of Ownership Standardized Open
Integration Platform

• Provide a unified view of customer data
• Protect and share information assets across all
  systems
• Standardize, cleanseand enrich data
• Synchronize datain near real-time
• Support key interactions
• Orders
• Contracts
• Service history
• Leverage pre-builtanalytics

Siebel
PeopleSoft
Customers, Suppliers, Products,
Legacy
Broadvision
Example Customer Data Hub
62
CustomerCase Studies
63

• Leading manufacturer of audio and video
  communications products
• Barcelona factory produces over 2 million
  television sets annually
• Live on 11i
• Discrete Manufacturing, Advanced Supply Chain
  Planning,Order Management, Financials
• Chose Oracle over SAP and BAAN

Oracle Manufacturing has enabled us to cut
manufacturing costs by up to 8. It's the best
ERP system on the market for integrating new
processes and advanced functionality. They offer
the most comprehensive suite of manufacturing
solutions. Their Supplier Portal delivers
substantial time and resource savings by
eliminating the need to compile and send daily
reports to suppliers detailing our advance
requirements. - Manel Puig, IT Director, Sony
España S.A.

• Reduced manufacturing costs 5-8
• Reduced inventory levels 40 and time-to-market
  30

64

• Part of Matsushita Electric, one of the worlds
  largest manufacturers of electronics products
• 30 manufacturing sites globally
• Live on Oracle 11i
• Advanced Supply Chain Planning, Constraint-Based
  Optimization, Global Order Promising
• Accelerated planning cycle from 1 month to 1 week
• Increased on-time delivery and customer
  satisfaction
• Reduced overall order-to-cash cycle time

Oracle gave Panasonic AVC more disciplined
supply chain practices to significantly reduce
inventories and increase customer
satisfaction. Paul
Rizos, Principal Consultant, KPMG Consulting

• Decreased production time by 82
• Reduced inventory levels by 25
• Saved 26M in on-hand inventory processing costs

65

• Leading global provider of high quality display
  equipment
• Leading non-captive monitor brand in the U.S.
• Products include computer monitors, flat panel
  displays, projectors, and the latest SuperPDA,
  Tablet PC HDTV technology
• Live on 11i single global instance
• Purchasing, Discrete Manufacturing, Order
  Management, iStore, Fianancials
• Single global instance for North South America,
  Asia and Europe with standardized business
  processes (replaced 3 separate systems)
• Access to real-time quality statistics with daily
  online monitoring

Oracle applications are the nervous system of
our corporation. We couldn't run without them.
With our new global instance we have the
infrastructure to grow to a 10 billion company.
Oracle systems can take ViewSonic anywhere our
CEO and Chairman want to go. And, we can now
support them with the information they need to
make critical business decisions.
-- Robert Moon, VP Info Services

• Saved 2.5M annually with reduced IT personnel
  hardware costs
• Decreased time to close financial books from 2
  weeks to 3 days

66

• Leading designer, manufacturer, and distributor
  of high-performance audio systems
• Serve mobile, professional, and home theater
  markets
• Nearly 800 employees in 5 offices around the
  world
• Live on Oracle 11i
• Adv Supply Chain Planning, Discrete
  Manufacturing, Order Mgmt, Adv Pricing,
  Financials
• Upgraded to 11i in only 3 days with no
  customizations
• Improved order fulfillment time most orders
  shipped the same day

We are running a 24/7 business and needed a
supplier that could respond to our needs
immediately, regardless of time of day or
geographic location. Oracle emerged the clear
winner. And Oracles position and single-source
solution were attractive to us. -- Dave
Richards, CIO VP of Information Technology

• Increased inventory accuracy to 99.5, a 30
  increase
• Decreased planning cycle time by 50
• Reduced order entry time by 75

67
Oracle Consumer Electronics Solutions
Establish and Sustain Profitable Innovation Adopt
Lean Operations to Manage Demand
Variability Manage and Grow a Profitable Service
Business Command and Control Outsourced
Operations Improve Sales Channel Visibility and
Collaboration
                                                
                                                  
                                                  
   
68
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69
AppendixRosettaNet Offering
70
Current Integration ShortcomingsLatent, Linear
Information Flow

• Information Delaysand Distortion
• Poor Planning Synchronization
• High Forecast Variability
• Lacking Visibility to Exceptions
• Missing Inter-Enterprise Strategy

SubAssy
Fab
OEM
CompMfg
CompMfg
Large Supplier
Small Supplier
3PL
Late
Mis-Routed
Incorrect
71
RosettaNet At-a-GlanceDeveloped by High Tech for
Fast-Paced Business

• Agreed-Upon, Processes for Business Over the
  Internet
• XML-Based Standards to Support Processes
• PIPs Defined business processes between trading
  partners
• TPAs Electronic business contract between
  trading partners
• RNIF Document exchange process specifies
  authentication, etc.
• Advantages
• Eliminate information latency provide global,
  real-time visibility
• Achieve high degree of scalability, extensibility
  and flexibility (not EDI)
• Decrease transaction costs over time
• Architected for the business user

Extend Process Integration Beyond Your Company
72
Oracles RosettaNet Solution
Your Company
Customers
RealTime
XML

• RosettaNet PIP
• Check
• Contents
• Process
• Transport

• RosettaNet PIP
• Check
• Contents
• Process
• Transport

Security
Validation
Transform
XML
XML
Logging
Monitoring
TransactionMgmt
Against
Against
Run-Time / Common Services
RealTime
XML
Suppliers
Oracle 11i Apps
Oracle.com
73
Oracle Trading Partner Solution Adaptive
Infrastructure for Dynamic Businesses

• Seamless Connectivity Between Public Private
  Processes
• Private processes trigger public processes
• Pre-built mappings for in and outbound process
  integration
• Support for existing IT infrastructure
• Rapidly Achieve Critical Mass with Trading
  Partners
• Empower business users to initiate and manage
  relationships
• Leverage same PIP for multiple partners
• Integrate to legacy / 3rd party systems via
  adapters
• Small-to-medium enterprise focus self-service
  and affordability

74
Oracle Trading Partner SolutionComplete on
Integrated Technology Stack

• Integrated tools for easy TPA creation,
  management validation
• Integrated business intelligence and data
  analysis
• Integrated business portal for visibility and
  transactions
• Integrated workflow and process management tools
• Integrated trading partner performance (TPA,
  real-time status, etc.)
• Integrated security and RNIF support without
  service fees

100 Pre-Integrated
Integration
Manage BusinessCollaboration
Manage Technology Maintenance
vs.
75
Sample Product Info FlowDistribute Product Master
2A12 PIP Capability Enables supplier to create
product master and distribute device-level
product identification to a buyer
Collaboration
Supplier (Component)
Specify Requirements
RealTime
CreateProd Master Notification
Check w/ Mfg
Product family attributes Location-specific
data Procurement data Product lifecycle info
Workflow Driven
Check w/ Supplier
SendMessage
Approve
2A12PIP
ReceiveMessage
ProcessProd MasterNotification
3A2PIP
3A4PIP
Buyer (OEM)
LoadMRP
Procure Product
Check Prod Availability
Workflow Driven
76
Sample Planning FlowCollaborative Forecasting
4Ax PIP Capability Process for developing
collaborative forecasts between buyer and supplier
Collaboration
Buyer (Channel)
StartCollaborativePlanning
Check w/ Sales
RealTime
Check w/ Channels
Workflow Driven
Check Inventory
Receive AnalyzeResponse
SendForecast
Create Forecast
4A5 PIP
4A4 PIP
ReceiveForecast
Check w/ TPA CreateResponse
SendResponse
Supplier (OEM)
AdjustForecast
Check w/ Mfg
Workflow Driven
77
Sample Manufacturing FlowWork In Process (WIP)
Reporting
7Bx PIP Capability Process for supplier to
distribute work in process information to buyer
Collaboration
Supplier (Component)
Check Inventory
CreateWIPNotification
RealTime
Workflow
Check w/ Supplier
Check w/ Mfg Assy
ReceiveErrorNotice
SendMessage
7B1PIP
ReceiveMessage
Create SendError Notice
Buyer (OEM)
Checkfor Errors
AnalyzeNotification
Workflow Driven