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Next Generation of Executive Role-Based Dashboards: From Information to Action – Advancing Your Value ChainJohn BermudezSr. Director, Supply Chain Planning Product Strategy

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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.

Safe Harbor Statement

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Changing Value Chain

Business Model

Drivers For Success

Uncertainty

Virtualization

Chaos

Globalization

Volatility

Consolidation

Risk

Compliance

Continuous Innovation

Operational Flexibility

Risk Management and Compliance

New world: continuously adapting to changing value chain business modelToday’s Supply Chain Executives’ Agenda

Increased Shareholder

Value and

Sustainable Growth

CEO’s Agenda

“What is required is a new type of decision support platform, one that integrates analytics and optimization. 15 years after the birth of Supply Chain Planning (SCP), we are now just starting to see analytics and optimization converge on a common platform”

AMR Research Report “How to measure your supply chain today “

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44

Value Chains in the 21st CenturyGlobal, Complex, Virtual…

Administrative InfrastructureHR

Sup

porti

ngA

ctiv

ities

Valu

e C

reat

ing

Act

iviti

es

INNOVATIONProcurement

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WinnersHigher Cash Flow, Profits, P/E

• Integrated Demand, Supply, Design Chains

• Information & Value Chain Focus

• Predict-Adapt-Align PrinciplesDemand

Supply

Product

Demand

Supply Product

Demand

ProductProduct

Laggard

Leader

Leader

Ope

ratio

nal E

xcel

lenc

eP

erfe

ct O

rder

, Cyc

le T

imes

, To

tal S

CM

Cos

t

Laggard

Source: AMR, May 2008

Demand Supply

Product

Drivers for a Profitable Value Chain

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A D A P TSupply vs.Demand

A D A P TProducts vs.

Demand

A D A P TProducts vs.

Supply

A LI G NOperations to

Corp. Objectives

P R E D I C TMarket Demand

O P T I M I Z ESourcing, Inventory,

Production, Fulfillment

I N N O V A T ENew Product Development

Demand Supply

Product

• Optimize and connect supply, demand and product networks

• Address critical business challenges

– Demand-Driven– Product Innovation– Fulfillment Excellence– Real-Time Information

Information-Driven Value ChainHarness data and systems to drive value

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Greater Challenges in a Down Economy

• Identifying shifting and falling demand • Aligning operating plans and financial goals in face of faltering

economy• Getting agreement on response to current business conditions• Adjusting to customers that sporadically revise forecasts• Manipulating demand to align with company goals• Battling competitors for larger piece of shrinking pie• Identifying/maximizing new business opportunities• Dealing with rising commodity and energy that have uneven impact on

production costs• Identify down economy trends to exploit

Addressing these challenges requires real-time information for responsive decision making

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The Great Information Divide Still Exists

• Typically, they don’t have access to correlated and aggregate planning data unless it is presented in a comprehensive spreadsheet or on paper

• Often, the decision is made to design and build a custom data warehouse that has no integration to the source of the data and that is a limited representation of the data

• Supply chain executives have no time to learn power user interfaces that were developed for purposed planning applications

How do the supply chain executives get access to actionable information?

Manual Co-ordination Across Functional Groups

UncertaintyVirtualizationChaos

Globalization

Volatility

ConsolidationRisk

Compliance

Continuous Innovation

Operational EfficiencyRisk management and Compliance

Emails, Phone calls Spreadsheets, Reports

SNO ASCP DM PS IO DRP

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Data Proliferation

21m15m

57m

33m

• More data created in last 2 yrs than in the past 40,000 yrs• Total data quadrupled in the last 2 yrs• Will continue to double every year• Harnessing data for planning and decision making is

harder than ever

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27%

64%

9%

MDMSystemsExpertise

#1 impediment to data collection

32%

50%

9%

9%

SupplyDemandFinancialOther

What data is most challenging?

46%

27%

9%

18%

1-5 days6-11 days12-17 days18+ days

Time required for exec S&OP prep

0 2 4 6 8 10 12 14 16 18 20 22 24

Other

NPI Status

Orders Review

Capacity Review

Forecast Review

Pre-work activities

The Challenge of Data Integration

No processintegration

Lack ofsystems

No access to the right data

Takes a long time to gather

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“During economic downturn, when supply chain focus turns to cost

reduction, it is easy to lose focus on customer service, with a subsequent

degradation in this key metric.”

Tim PayneVP Research, Gartner

Source: Leverage Your S&OP Process When Reducing Your Supply Chain Costs, Gartner Research Note – March 18, 2008

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Value Chain PlanningAligning business goals with operating plans

Demand SignalManagement

DemandManagement

Collaboration andVendor Managed

Inventory

PlantScheduling and

Monitoring

OrderPromising

Service Parts

Planning

Trade PromotionManagement

Supply and DistributionPlanning

RiskManagement

Sales and OperationsPlanning

PerformanceManagement

(1) Planned

• Predict– Stay ahead of

demand changes

• Adapt – Respond to

changing business conditions

• Align– Coordinate response

across departments

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Next generation planning powered by embedded analytics Value Chain Planning

Predict market requirements and manage supply chain risk– Sense demand closer to the point of consumption with real-time visibility to demand events – Improve forecast accuracy through advanced analytics and improved consensus forecasting – Predict impact of risk to your network by simulating planned and unplanned supply chain events– Account for variability in your inventory positioning and postponement strategy

Shape demand for profitability– Drive demand via promotions planning– Manage new product introductions and marketing to shape demand and maximize revenue– Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process

Align operational plans with corporate goals– Plan your extended value chain with holistic supply and distribution planning– Synchronize plans and actions across the extended enterprise– Improve supply chain visibility and align trading partners via collaboration– Transform your service operations from cost to profit centers

MONITOR and MANAGE with Embedded Analytics

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Value Chain Planning Starts with Insights

• Close the loop with embedded analytics– Provide insight to key decision makers – Bridge the gap between analytics and planning

through seamless integration with operational planning applications

– Leverage pre-built dashboards with rich content and KPIs

• Proactively respond to deviations in performance

– Identify root cause– Define and evaluate alternative business scenarios – Manage execution of scenarios; assign tasks to

planners and other stakeholders• Reduce decision making cycle time

through process automation– Use business process management to execute

planning processes– Configure and adapt

Move beyond business intelligence with embedded analytics

Analytical Data

Planning Dashboards and Reports

Business scenario planning

Planning process automation

Execute scenarios

Scenario andActivity Management

Forecasting Supply Planning

Web Service enabled planning processes

Orc

hest

rate

Plan

Ana

lyze

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Analytics Based on Planning Data

• Forward looking perspective combined with past trends• Not a data warehouse for “rearview mirror” analysis

– Minimal data replication (archiving of summary facts for trend analysis only)

• Embedded analytics mean integration to:– Demand planning – Supply chain planning – Context sensitive drill-downs

Today

Summary information Forward looking planning information

Respond pro-actively rather than ponder the past

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Translate Strategy to ActionsProblem ► Cause ► Alternative solution evaluation

Revenue below target

Sales below target

Supply shortages

Competitorpromotion

Sales selling wrong product mix

Pricing issues

Critical part shortage

Lost productioncapacity

Lost sales due to lackof supply

Change product mix

Launch promotion

Adjust pricing

Promote alternate product

Plan overtime

Outsource production

Change inventory levels

Hedge supply

Analysis Planning

What problem

do I have?

Why do I have this problem?

What actions should I

evaluate?

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Start with Insights for ExecutivesEnable executive level S&OP analysis for demand, supply, inventory, and profit

Compare alternatescenarios

Analyze keyPlanning metrics

Analyze profitand loss

Analyze constrained forecast

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With the Details for PlannersBe in control of your operational plans – Analyze plan health

Analyze specific product categories, organizations and resource groups

Check your shipment and production trends Compare previous run to

current run exceptions

Compare previous run to current run demand and supply metrics

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No Separation between Planning and AnalyticsSeamlessly move from problem analysis to resolution

Detect a resource problem

Simulate apossiblesolution

Compare the results of the

simulation

Directly drill down

within context

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• Business scenario management– Define baseline and alternative business planning scenarios– Assign tasks to planners for execution that represent your business scenarios

• Analytics that cut across planning applications– 360 degree visibility to strategic and tactical planning information– Combine output from demand planning, inventory planning, supply planning,

and strategic planning– Pre-seeded rich content

• No separation between Planning and Analytics– Pre-built dashboards for plan health and S&OP analysis– Trends, period to date, historical versus projected, and previous to current

version comparison– Directly drill down from analytics to planner workbenches to take action

• Extensible and configurable framework– Tailor to your business’ needs and roles

Key requirements to perform more insightful analysisBusiness Scenario Planning for Decision Makers

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Scenario Management

• Supply chain decision makers define business planning scenarios

– Unlimited number of baseline scenarios– Unlimited number of alternative scenarios

• Assign scenarios and tasks to planners for execution

– Shared accountability for supply chain planning metrics

– Planners execute plans using Planner Workbenches

• Attach key documents– Financial analysis– External market data and industry reports

Decide what baseline and alternative scenarios to run to make decisions

Assign and monitorscenario activities

Execute and assign supply plans to scenarios

Execute and assign inventory plans to scenarios

Execute and assign demand plans to scenarios

PersonalActivity List

PersonalActivity List

PersonalActivity List

Demand Planner Inventory Analyst Supply Planner

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Compare Scenarios to Make Decisions

Compare baseline to alternate

Compare current to previous

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Compare Scenarios – Cut across Planning

Demantra Demand Management

Advanced SupplyChain Planning

Inventory Optimization

Demand from DM

Supply from ASCP or SNO

Inventory from IO

Enable holistic view of supply chain performance and drill down to details

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Demantra Demand Management

Advanced SupplyChain Planning

Inventory Optimization

Demand from DM

Supply from ASCP or SNO

Inventory from IO

Compare Scenarios – Cut across Planning

Demantra Demand Management

Drilldown to details

Enable holistic view of supply chain performance and drill down to details

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Pre-seeded Rich Content – KPIsRich content out-of-the-box:100+ pre-seeded dimensions and perf. metrics

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Planning Process Management AutomationWeb service enabled planning processes

• Web service enabled key planning processes

– Collections– Forecasting– Plan runs– Plan name creation

• Approval and review steps can be modeled and inserted into the process

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Planning Process Management AutomationAutomate planning process execution via BPEL

• Assign owners to top level process notes

• Optionally skip steps when resubmitting

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Planning Process Management Automation

• Archive scenarios directly from Scenario Management, via concurrent program or web service

– Automatically archives KPIs and facts for plans that are linked to the scenario

Archives Demantra Demand facts published to EBS– Creates a new scenario version that can be used for

comparison in the dashboards– Purge scenarios as they become obsolete (will not

purge plans shared across multiple scenarios)

• Archive plans directly from plan runs (optional) or Publish profile (SNO, Demantra)

– All facts, KPIs, and summaries for the plan are archived in a new plan version

– Compare plan versions in the dashboards– Purge plan versions as they become obsolete– ASCP/IO Purge plan: purges all plan versions

Automatically archive scenarios plans for historical analysis at summary level

Plans and Archived Plans

Archive plans

Archive scenarios

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Summary

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Oracle Advanced Planning Command Center

• Close the loop with embedded analytics– Provide insight to key decision makers – Bridge the gap between analytics and planning

through seamless integration with operational planning applications

– Leverage pre-built dashboards with rich content and KPIs

• Proactively respond to deviations in performance

– Identify root cause– Define and evaluate alternative business scenarios – Manage execution of scenarios; assign tasks to

planners and other stakeholders• Reduce decision making cycle time

through process automation– Use BPEL process flows to execute planning

processes– Configure and adapt

Business intelligence powering next generation planning

Analytical Data

Planning Dashboards and Reports

Business scenario planning

Planning process automation

Execute scenarios

Scenario andActivity Management

Forecasting Supply Planning

Web Service enabled planning processes

Orc

hest

rate

Plan

Ana

lyze

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Oracle Advanced Planning Command Center Demo

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Q U E S T I O N SA N S W E R S

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