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1 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Projects Supply Chain Paulo Back Vice President – Applications Development Program Agenda Overview Best in Class Projects Best in Class Procurement Projects Supply Chain Planning Your Roadmap 3 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. 4 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Roadmap: Continued Releases & Innovation Ongoing Point Releases Easy to Uptake Planned Released Major Release 11.5.10 12 12.1 Minor Release Nov. 2004 5 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Jan. 2007 12.2 12.1.2 12.1.3 Dec 2009 Aug 2010 May 2009 Insert Information Protection Policy Classification from Slide 12 RUP1…RUP2…RUP3… Oracle Enterprise Project Portfolio Management 6 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle E-Business Suite EPPM Evolution Business Value PROJECT MANAGEMENT (PM) RESULTS Plan and Schedule Complex Projects DEPT./GROUP RESOURCES Planners Project Managers Project Controls 7 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. PROJECT PORTFOLIO MANAGEMENT (PPM) RESULTS Programs Resource Management Risk Management Change Management Plan and Schedule Complex Projects DIVISION/LOB RESOURCES Resource Managers Program Managers Planners Project Managers Project Controls Insert Information Protection Policy Classification from Slide 12 ENTERPRISE PROJECT PORTFOLIO MANAGEMENT (EPPM) RESULTS Strategic Alignment Project Financial Management Project Analytics Performance, Governance, and Control Single Business System Procurement Resource Management Risk Management Change Management SUPPLY CHAIN WIDE RESOURCES COO/CIO/CPO/PMO Corporate Finance Business Unit Executives Suppliers Ecosytem Buyers Planners Project Managers Resource Managers Program Managers Strategy Oracle E-Business Suite Projects Enterprise Project Performance Management Project Portfolio Management Project Financial Management Project Resource Management Project Analytics Project Management and Operations Planning and Scheduling Costing and Billing Project Procurement Budgeting & Forecasting Capacity Planning Contract Management Earned Value Management Change Management Business Operations Financials Human Resources Time and Labor Supply Chain Application Foundation End-to-End Industry Processes 8 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Master Data Management Comprehensive Security Insert Information Protection Policy Classification from Slide 12 Enterprise Analytics A Widening Chasm 72% of CEOs identify the ability to manage projects as critical to the future growth of the business… Source: IPMA Study Sept. 2010 9 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 11% just are very confident of their ability to manage business critical projects Oracle Advanced Procurement 10 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Procurement Business Process Value Driven Procurement: Supporting Complete Cycle Supplier Management Cost Savings Process Efficiency 1. Spend Analysis 2. Supplier Assessment 3. Supplier Identification 4. Sourcing 8. Electronic Invoice Presentment and Payment 7. Order Fulfillment (Services Procurement) 6. Procurement 5. Contract Lifecycle Management Supplier Collaboration 11 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Gulf Between Claimed Savings & Financial Impact Procurement vs. Finance “Savings claimed by procurement are falling to the bottom line and can be proved” 100% Strongly Agree 75% Somewhat Agree 50% Perception Gap Neither Agree Nor Disagree Somewhat Disagree 25% Strongly Disagree 0% Procurement Finance Source: Hackett Closing the Gap Between Claimed Savings on Indirect Spending 12 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Less than 10% of Finance executives believe in procurement savings Reported savings are discounted by >30% By Itself, Marginal Cost Reduction Has Limits • LOBs resist procurement’s involvement because • • • Lack domain expertise outside of negotiating deals Fears that procurement will focus on cost to the exclusion of other critical success factors Limited alignment with MBOs • Suppliers resent procurement as an adversarial agent of margin transfer Total Revenue Cost of Revenue Gross Profit R&D SG&A Non Recurring Total Operating Expense Operating Income Total Other Income/Expense Net Earnings Before Interest & Taxes Interest Expense Income Before Tax Income Tax Expense Net Income From Operations 13 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Traditional approach: Is There a Better Way? Disconnected plans, long planning cycles, high latency in decision making CUSTOMERS Marketing Forecast PROJECT MGR BUYER SUPPLIERS Tier 1 Tier 2 Project Plan Acquisition Plan ? Budget & Forecast Sales Forecast Actuals Mfg plans Delivery Response 1: Maintain excess inventory Response 2: Reserve production capacity Response 3: Expedite everything! 14 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Paper Supply Chains built on INVENTORY Unpredictable Project Delivery Manage Your Supply Chain Procurement Spend as % of Revenue Aerospace & Defense 47% Chemical 53% Financial Services 22% Indust. Mfging. 55% Pharmaceuticals 56% Semiconductor 56% DOE/NNE Contractors 46% Metals & Mining 44% Utilities 39% Eng. & Const.53% Petroleum 43% Other Industries 48% Procurement is a fundamental part of the Project 15 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Source: CAPS Research Procurement’s Disproportionate Margin Impact Small Changes. Big Difference. 5% Reduction in Spend Increases Profit by 50% 100 Profit Profit +50% • Increase Sales by 50% • Cut Overhead by 20% 75 Spend -5% Payroll, Tax, & Other Expenses 50 25 Purchases 0 Before 16 After Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 In order to obtain an equivalent impact, a firm would have to... Real Time Strategy, Planning and Execution Strategic Alignment, Collaborative Planning & Integrated Execution CUSTOMERS Project Specification BUYER PROJECT MGR SUPPLIERS Tier 1 Project Plan Portal Operations Forecast Customer Drivers Supplier commit SOV Budget & Forecast Actuals Acquisition Plan Forecast & Delivery Collaboration REDUCED LATENCY, FULL VISIBILITY 17 Benefit 1: Benefit 2: Benefit 3: Benefit 4: Reduced planning cycle time Faster and better decision making Closed-loop planning and execution Enables best-in-class processes Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Supply Chains built on INFORMATION Tier 2 Transforming from Cost to Value Driven Builds on Transaction & Cost Management Value Driven Material Management Spend & Cost Management Transaction Enablement • Customer Driven • Strategic Sourcing •Strategy • Total Cost Reduction •Planning • Finance Collaboration •Execution • PO Management • New Categories • Overhead Reduction • Shared Services • Integrated across and within organization • Networked – based on knowledge 18 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Projects Supply Chain 19 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Creating Alignment Via Key Value Drivers Extend Reach of Procurement Knowledge DEMAND PRODUCTS ASSETS SUPPLY 20 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Projects Supply Chain Strategic Alignment Align Plan Report Collaborative Planning Analyze Execute Monitor Integrated Execution 21 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Projects Supply Chain Strategic Alignment Align Plan Report Collaborative Planning Analyze Execute Monitor Integrated Execution 22 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Projects Supply Chain Alignment of the Supply Chain Decisions Project Planning/ Detailed Design Strategic Decisions Tactical Decisions Operational Decisions 23 Define products / technologies Execution Strategy Evaluate SC configuration Risk Management Order long lead time products Make or buy products Selection of subcontractors and suppliers Risk Allocation via Contracts Risk mitigation via capacity ( material, suppliers) Order commodities Risk mitigation via inventory and time buffers Inventory and time buffer sizes Locate inventory buffers Risk mitigation via capacity buffer (subcontractors) Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Procurement Execution Oracle Master Data Management Modern, Enterprise-Grade, Multi-Domain 24 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. CRM Insert Information Protection Policy Classification from Slide 12 Product Enterprise Data Quality Site Other Sources EPM/BI Supplier ERP Enterprise Analytics Financial CRM Customer Customer Data Governance & Compliance Legacy… Supplier Management Business Challenges Supplier Management is Expensive • Haphazard qualification and on-boarding for suppliers • Paper-based profile administration • Repetition of manual supplier Identification management activities Poor Visibility • Qualification and performance information gathered but invisible • Nowhere to store stakeholder intelligence On Boarding • Spend analytics are incomplete and inaccurate Fragmented Data Risk and Compliance Failures Supplier Master Data • System data duplicated, • Code of conduct assurance often a Administration Transaction incomplete &/or inaccurate 1-time event • Data held within multiple systems • Difficult to ensure suppliers are adhering to laws, regulations & standards • Data archeologist required to federate accurate information • Paper procedures to track critical documents 25 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Institute Supplier Management Improve Supplier Data, Qualification & Compliance 26 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Projects Supply Chain Strategic Alignment Align Plan Report Collaborative Planning Analyze Execute Monitor Integrated Execution 27 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Collaboration: A Better Approach Accelerate Inter-Enterprise Knowledge Transfer SOURCING & PROCUREMENT SCHEDULE Project Managers Subject Matter Experts Buyers Suppliers SPECIFICATIONS 28 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. PRODUCT Insert Information Protection Policy Classification from Slide 12 Plan, Design and Procure Engage all stakeholders in the planning process with integrated information and collaborative tools. Integrated Solution • Create a strategic procurement plan based • Financial Planning • • • Workplan Management 29 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Sourcing and Procurement • Insert Information Protection Policy Classification from Slide 12 on current and historical information Lower risks by utilizing procurement knowledge and supplier data during sourcing Negotiate better agreements with full visibility to project objectives, budgets and priorities Flow down information from the project contract to procurement contracts Reduce inventory by aligning delivery schedules with project execution Monitor supply-chain performance through embedded analytical tools Planning by Cost Breakdown Benefits View by Activity, Resource, or Cost Breakdown Standard cost coding structure across portfolio lead to better: Estimating Planning Tracking Cross-project reporting Benchmark productivity measurements 30 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Align Planning Strategies and Schedules Procurement Plan Project Manager and Buyer have a complete view of the procurement plan and current status Buyer uses selection criteria to ensure the right supplier is chosen Project Manager incorporates lead times and negotiated prices into project schedule and financial plans 31 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Improve Strategic Sourcing Outcomes Strategic Sourcing & Contracts Suppliers Shorter time to market Faster cycle times Access to new technologies Total cost reduction Compliance to negotiated agreements Operations Procurement Research & Development 32 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Procurement for Complex Services Request for Service Author Contract Track Progress 4 Source 33 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Advance Payment Insert Information Protection Policy Classification from Slide 12 Process Payment Project Driven Supply Chain Planning Reduce Planning Cycle Time Plan your entire value chain Reduce the number of plans Make Better Decisions Faster Automate planning decision making What if simulation and root cause analysis Execute to Plan Integrated planning and scheduling Enforce planning decisions when promising orders Enable Best in Class Processes 34 Design collaborative planning processes Plan demand and supply simultaneously and interactively Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Projects Supply Chain Strategic Alignment Align Plan Report Collaborative Planning Analyze Execute Monitor Integrated Execution 35 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Project Execution Align project, subcontract and procurement schedules to ensure on-time delivery Sub Contract Management Change Management Integrated Solution • Automatically update supply chain demand • • • Cost, Revenue, Billing and Project Accounting Physical Progress • • Forecasting 36 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 when task dates change Incorporate supplier lead times into project schedule Predict potential problems ahead of time • Proactively monitor resource and material availability • Reduce expedited shipments Quickly evaluate the impact of material shortages or price changes Perform what-if analysis to evaluate the impact of project changes Track supplier deliverables and control payments Financial Control Aggregate information across applications for a full view of project performance Asset and Equipment Management Performance Management Financial Management 37 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Integrated Solution • Adjust project financial plans based on negotiated procurement agreements • Monitor performance with interactive dashboards and reports that can be viewed by any dimension • Earned value reporting and analysis • Actual against plans • Utilize on-line drilldowns to perform maintenance and adjustments • Manage cash flow through integrated receivables, payables, and payroll • Initiate supplier payment holds • Search for available discounts Insert Information Protection Policy Classification from Slide 12 Reduce Schedule Delays Project Manager Dashboard Monitor resource usage and availability Reduce inventories by aligning supply chain planning with the project delivery schedule Track supplier delivery schedules and performance Quickly evaluate the impact of material shortages 38 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Sub-Contractor Management Supplier Payment Dashboard Project customer and supplier invoices in a single view for analyzing cash flow View invoice totals and drill into invoice details Manage supplier invoice holds Link supplier invoice to customer invoices to create pay-when-paid holds Update supplier contract deliverables Generate supplier invoice hold reports 39 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Sub-Contractor Management Supplier Deductions Miscellaneous deductions for supplier related project charges or damages Create back-charge deductions for reimburseable incurred expenses Associate deductions to a change order Route deduction requests for approvals Automatically process deductions in Oracle Payables 40 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Change Management Rapidly Respond to and Plan for Project Changes Define Change Executives Evaluate Impact - Record the - Plan budget - Workflow-driven change impacts processes - Add new tasks - Conduct multi- Enable thread discussions automatic - Control changes notifications by change types - Include in - Manage issues & forecasts actions Project Managers Team Members 41 Route & Approve Implement - Update budget with impacts - Retain history Plan financial impacts by task, resource and supplier contract (PO) View budget impacts prior to accepting / approving Consolidate multiple change requests into a change order Provide complete audit trail of historical changes Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 What are Project Controls? Planning, Scheduling and Project Reporting Earned Value Analysis & Management Cost Engineering & Estimating Change Management & Controls Risk & Delay Claims 42 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Project Controls encompass the people, processes and tools used to plan, manage and mitigate cost and schedule issues and any risk events that may impact a project. Planning Your Roadmap 43 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle E-Business Suite Modern User Experience Mobile Experience with Great Performance 44 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Endeca for Oracle E-Business Suite Complete Data View Key Metrics Highlights Google Like Search Search Across Organizations Search On Flexfields Advanced Visualization Guided Navigation® Range Filters with histograms Tag Clouds Charts Performance Metrics Metrics Bar Cross Tab 45 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Mobile Application Strategy for EBS iPad access to EBS Self-Service: Specialty Mobile Applications for EBS: • OA Framework being certified on Safari • Application Examples: • Projects time entry • Projects progress entry • HR Self-Service • iProcurement • Order Information Portal Endeca for EBS enhances user experience: • • • • • • 46 Projects Order Management Asset Maintenance Discrete Manufacturing Field Service Channel Management Copyright © 2013, Oracle and/or its affiliates. All rights reserved. • • • • • ADF Mobile-Based Native Mobile UIs Mobile device services Disconnected access Application Examples: • Mobile Progress Entry • Mobile Field Service • Mobile Maintenance • Mobile Shop Floor Manager Oracle Business Intelligence Mobile: • Business Intelligence content on iPhone & iPad Insert Information Protection Policy Classification from Slide 12 Get to your results faster by searching across the project with Google® like searches Identify and act on tasks being delayed in either start or completion Multi-Select from the results to perform updates in an efficient manner 47 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Oracle Project Analytics Rich Solution for Project Based Organizations Project Management Dashboard • Designed for project managers to provide a complete view of project performance, from a comprehensive high level view of accumulated and trending information for a single or a group of projects, to detail information such as cost, revenue and budget transactions Project Executive Dashboard • Designed for project executives to provide aggregated project performance data at the organizational level, allowing users to see the cumulative impact of their projects in the cost, revenue and profitability of their organizations Public Sector Dashboard • 48 Designed for public sector and non-profit organizations where profitability and margin are not tracked. It is a demonstrative example of how existing objects can be leveraged to build a custom dashboard tailored to specific requirements industry requirements. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Development Roadmap 49 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 iProcurement, Transformed Solution Increase savings by expanding use of negotiated prices Reduce maverick spending Improve the productivity of requesters and buyers 50 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Effective Supplier Management Supplier Lifecycle Management Solution Roadmap Real-Time Supplier Communications Online Negotiation of Contracts Supplier Hub Supplier Data Steward with Suppliers Supplier NDA Process Sourcing Cost Calculation Supplier Network Buying Organization Suppliers A solution to enable 1000’s of suppliers … 51 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Key Customer-Driven Improvements Solution Roadmap MSWord Integration/Formatting Improvements AME Approval Management Repository Contract Enhancements General Usability Improvements Embedded Best Practices Customer Satisfaction 52 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 EBS Projects Roadmap • • • • • • • • • • • • • • Release 12.1.3 August 2010 What’s Next 0-12 month planning cycle Future Directions Post 12 month planning cycle Integrated Services Procurement Supplier Cost Dashboard Subcontractor Payment Controls Project Manager Reporting Pack Reporting Performance Improvements Enhanced Change Management Prepayment Receipt Application Effective Dates Fund Consumption Contingent Worker support Support for Self Assessed Tax Project and Federal Financial Analytics Self Services Expenditure Inquiry Enhanced UI and Project List page MSP Integration Improvements • Enhanced Labor Planning and Costing • Project Analytics for Resource Management • CMRO Integration Enhancements • Standard Invoicing for Adjusted Transactions • Improved Performance and Usability for Workplan Management (includes Endeca) • Integration to Primavera’s Configurable Framework • Intercompany Billing Enhancements • Revenue in Foreign Currency Improvements • Next Generation Planning and Controls • Planning by Cost Breakdown • Mobile Applications • Continued Improvement in Usability and Performance (includes Endeca) • Resource Management Enhancements • Project Analytics for GL Reconciliation, Earned Value reporting, Cross Charges • Field Service Integration • Budgetary Controls in Project Management • Project Driven Supply Chain • Collaborative Dashboard for ProjectDriven Supply Chain Planning • Projects / Procurement Integration • Optimized Customer Billing • Federalization • Schedule of Value/Construction • Government Contracting • Reimbursable Agreements • Mobile Applications 53 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 54 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 Graphic Section Divider 55 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 56 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12
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