oracle and the eco-enterprise product strategy – sustainability solutions
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Oracle and the Eco-EnterpriseProduct Strategy – Sustainability Solutions
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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.
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Overview
• What is sustainability?• Operating in the low carbon economy• How and why should IT play a role?• How Oracle solutions can
• Reduce cost
• Increase revenue
• Manage risk
• Reduce environmental impact
• Customers and Partners• Competitive Landscape• Sales Execution - APAC Market Focus• Where to go for more information• Appendix: Oracle and the Enviroment
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The Sustainability Paradigm
Source: Brundtland Commission Report, 1987
InnovationRisk Management
Margin ImprovementGrowth Enhancement
Job CreationSkills EnhancementSocial Investments
Business EthicsSecurity
Clean Air, Water & LandEmissions Reductions
Zero Waste, Releases & Spills
DiversityHuman Rights
Community OutreachLabor Relations
Safety & HealthEnvironmental Regulations
Global Climate ChangeCrisis Management
Resource EfficiencyProduct Stewardship
Life-Cycle ManagementProducts to Service
Social Progress
Environmental Stewardship
Socio-Environmental
Socio- Economic
Eco-Efficiency
Economic Growth
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Operating in the Low Carbon EconomyA New Business Driver and Competitive Differentiator
• Operational Efficiency• New Market Opportunities• Brand Management• Regulation
“ICT opportunities can lead to emission reductions five times the size of the sector’s own footprint.”
“Companies committed to corporate sustainability practices are achieving above-average performance in the financial markets during this slowdown.”
“Green engagement is more about opportunities than risk mitigation”
Source: The New Age of Carbon, AMR Research, Stephen Stokes, June 29, 2009
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The Impact of the IT Industry
Source: SMART 2020: Enabling the low carbon economy in the information age, The Climate Group and the Global e-Sustainability Initiative, June 2008.
5 Times the Direct IT Impact
• 0.46 GtCO2 – Dematerialization
• 0.97 GtCO2 – Motors & Ind. Processes
• 1.52 GtCO2 – Logistics
• 1.68 GtCO2 – Building
• 2.30 GtCO2 – Smart Energy Grid
Dematerialization Breakdown
• 0.25 GtCO2 – Telecommuting
• 0.08 GtCO2 – Videoconferencing
• 0.07 GtCO2 – E-Paper
• 0.03 GtCO2 – E-Commerce
• 0.02 GtCO2 – Online media
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ECO-INNOVATIONA company that thrives on innovation
and helps create environmentally sound products and practices.
ECO-EFFICIENCYA company that takes a
comprehensive approach to resource management, resulting in reduced waste and energy consumption.
ECO-TRANSPARENCYA company with strong commitment to provide oversight and transparency on
sustainability metrics.
What is an Eco-Enterprise Company?
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Functional View of SustainabilityIntelligent Management of Carbon, Energy and Other Natural Resources
Risk & Performance Management
Data Collection & Contextualization
IT Infrastructure
Supply Chain & Operations Management
Sustainability Business
Intelligence
Sustainability Management
Environmental Compliance & Risk Management
Environmental Compliance & Risk Management
Sustainability ReportingSustainability Reporting
Natural Resource Planning and Budgeting
Natural Resource Planning and Budgeting
Carbon Cap & Trade, Offset Management
Carbon Cap & Trade, Offset Management
Digital Content Management
Digital Content Management
Workload ManagementWorkload Management
Application ConsolidationApplication Consolidation
Software-as- a-ServiceSoftware-as- a-Service
Server & Storage Virtualization
Server & Storage Virtualization
Design for the EnvironmentDesign for the Environment
Sustainable ProcurementSustainable Procurement
Supply Chain PlanningSupply Chain Planning
Green ManufacturingGreen Manufacturing
Environmental Health and Safety
Environmental Health and Safety
Intelligent Asset Management
Intelligent Asset Management
TransportationTransportation Reverse LogisticsReverse Logistics DematerializationDematerialization Smart Utility
GridsSmart Utility Grids
ERP & SCM IntegrationERP & SCM Integration
Emissions CalculationsEmissions Calculations
Meters, Building & Energy Systems Integration
Meters, Building & Energy Systems Integration
Shop Floor Control and MES
Shop Floor Control and MES
Data AggregationData Aggregation
Operational AnalyticsOperational Analytics
Enterprise AnalyticsEnterprise Analytics
Policy MgmtPolicy Mgmt
Controls MgmtControls Mgmt
Data Verification
Data Verification
Copyright ©2009, Oracle. All rights reserved. Oracle Confidential
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Functional View of SustainabilityIntelligent Management of Carbon, Energy and Other Natural Resources
Environmental Compliance & Risk Management
Environmental Compliance & Risk Management
Sustainability ReportingSustainability Reporting
Natural Resource Planning and Budgeting
Natural Resource Planning and Budgeting
Carbon Cap & Trade, Offset Management
Carbon Cap & Trade, Offset Management
ERP & SCM IntegrationERP & SCM Integration
Emissions CalculationsEmissions Calculations
Meters, Building & Energy Systems Integration
Meters, Building & Energy Systems Integration
Shop Floor Control and MES
Shop Floor Control and MES
Data AggregationData Aggregation
Digital Content Management
Digital Content Management
Workload ManagementWorkload Management
Application ConsolidationApplication Consolidation
Software-as- a-ServiceSoftware-as- a-Service
Server & Storage Virtualization
Server & Storage Virtualization
Design for the EnvironmentDesign for the Environment
Sustainable ProcurementSustainable Procurement
Supply Chain PlanningSupply Chain Planning
Green ManufacturingGreen Manufacturing
Environmental Health and Safety
Environmental Health and Safety
Intelligent Asset Management
Intelligent Asset Management
TransportationTransportation Reverse LogisticsReverse Logistics DematerializationDematerialization Smart Utility
GridsSmart Utility Grids
Risk & Performance Management
Data Collection & Contextualization
IT Infrastructure
Supply Chain & Operations Management
Sustainability Business
Intelligence
Operational AnalyticsOperational Analytics
Enterprise AnalyticsEnterprise Analytics
Sustainability Mgmt
Policy MgmtPolicy Mgmt
Controls MgmtControls Mgmt
Data Verification
Data Verification
GRC & Hyperion
Agile PLM, Transportation Management, Utilities, Enterprise Asset Management, Manufacturing,
Self Service, Strategic Network Optimization
OBIEE & OBIA MOC
VM, Enterprise Manager, Content Mgmt, Data Compression
OBIEE &
OBIA
GRC
Copyright ©2009, Oracle. All rights reserved. Oracle Confidential
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Oracle Solutions
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Data Center ManagementDoing More with Less
Copyright 2009 Oracle Corporation.
• Data Centers– 1.5 Percent of ALL US Electricity
– 2x Consumption 2000-2006
– $4.5 billion in Energy Costs
• Oracle Solutions– Server and Storage Virtualization and
Consolidation via Oracle RAC, ASM, ASC, etc.
– Apps Consolidation with Oracle Single Instance
– More Efficient Workload Management with Oracle Enterprise Manager
• Case Study: Oracle University– 1/6th the hardware using grid technologies
– CPU utilization increased from 7% to 73%
– Revenue per server increased 5X
– Servers to administrator ratio increased 10X
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DematerializationeBilling: Online Presentment and Payment
• If every U.S. home paid their bills online it would…– Save 2 million tons of wood (16 million trees)– Reduce fuel consumption by 26 million BTUs– Reduce greenhouse gas by 3.9 billion pounds – Reduce toxic wastewater by 13 billion gallons– Reduce solid waste by 1.6 billion pounds
• Case Study: Progress Energy– Saving 365 tons of paper– Saving 730 tons of trees– Saving 6 million gallons of water– Preventing 1.85 million lbs of greenhouse gases– Preventing 354 tons of solid waste– Increased customer enrollment by 66% only 18 months – Annually saving over $800,000 in payment processing costs– $1.2MM in paper and printing costs– Achieved return on investment (ROI) within one year
Copyright 2007, Javelin Strategy & Research
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• Traditionally supply networks are optimized on time and cost
• Model carbon emissions – Manufacturing Lines– Product Sourcing– Transportation Lanes
• Build in cap-and-trade constraints
• Run scenario analyses to align network design in the context of strategic business objectives
• Analyze supply network risks
• Case Study: Holcim– Pilot project optimizing
supply network for carbon dioxide equivalents
Supply Chain PlanningRe-evaluating the Optimization Equation
Copyright 2009 Oracle Corporation.
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Transportation ManagementReducing Financial & Environmental Costs
• Load Optimization– Increased weight & volume utilization of
transportation assets results in lowered energy consumption and emissions
• Dock Optimization– Increased loading/unload efficiency results
in reduced truck idle time and emissions
• Route Optimization– Increased efficiency per unit of distance
traveled results in lowered energy consumption and emissions
• Green Analytics Dashboard*
• Case Study: Kraft– Significant reduction
in empty and deadhead miles (over 500,000 miles reduced through Q3 2008)
– Reduction of greenhouse gases (3.3 lbs per mile) * Q3 FY10
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Reverse LogisticsReducing Waste, Managing and Tracking Disposition
Features• Rule-based engine directs to
restock, refurbish, harvest, recycle, landfill returned items.
• Analytics • Disposal Tracking Engine • Support Compliance with WEEE,
RoHS• Diagnostic and embedded repair
intelligence tools
Green Objectives• Transportation Optimization• Measurement of Ecological
Impact• Proper Disposal of hazardous
materials• Reduce material sent to landfill• Lower consumption of virgin raw
materials
Case Study: Sun•Less than 5% of any Sun product ends up in landfill•1,024,726 kilos of material or 121,548 units returned in EMEA in 2007
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• Designing for Compliance– Design for environment, disassembly,
recycling, and packaging
• Evaluating Compliance– Data gathering, validation and compliance
assessment at the component level– Across variants, approved manufacturers
lists and approved suppliers lists– Risk analysis– Material declarations tracking– Declarations of conformance
• Compliance Reporting– Authorities, shareholders, customers
Video: STEC Backs Green Initiatives with Agile PG&C
PLM – Governance and ComplianceAddressing Rapidly Growing Regulations in Design
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ReportingTimely, Accurate, Relevant
EPM Sustainability Reporting
• Sustainability chart of GRI-based indicators
• Conversion factors and calculation rules
• Target setting and scenario functionality
• Full audit trail, process management and security features
• Report templates and dashboards
• Avoidance of penalties and lawsuits
• Operational efficiency and cost savings
GHG Reporting
• Leverage existing installation and transactional data
• Also report on non-GHG data such as water and waste
• Capture and report data by Facility, Asset, or Project
• Ability to enter estimates and targets, aggregate date, audit all transactions
• OBIEE-based dashboards and analytics
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Roadmap/Investment Proposal
Manufacturing Operations ManagementData Collection,Supply Chain Optimization, Carbon accounting
Existing Tools & Applications:OTM, PLM, eBilling, SNO, EPM, GRC, BI, etc.
Partner Solutions:2FutureNDEVRESSIBMDeloitte
PlanningCarbon budgeting and forecasting
New Applications?
Business Intelligence:Embedded analytics for Manufacturing, Transportation
Risk & ComplianceInitiative & Policy Management, Health, Safety & Environment
Guided by the Green Strategy Council
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Audit opinion
Board book
302 Cert
FORM 10-K
Risk & ComplianceEvolving to Holistic Sustainability Management
Financial Reporting Financial & Non-Financial Governance
Oracle’s Hyperion Financial Management
Application for Sustainability Reporting Oracle’s GRC Application Suite
P&L
Cash Flow
Balance Sheet
Environment
Economic
Social
Assess Scope Based on Objectives Risk Priority
Test & Analyze Exceptions
Test & Remediate
Define Objectives & Initiatives
Audit Management
Issue & Incident Management
Certify & PublishNon-Financial Reporting
"This information is not a commitment to deliver any material, code, or functionality. The development, release, and timing of any featuresor functionality described remains at the sole discretion of Oracle"
Blueprint Q2 FY10
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Solution CapabilitiesManage Environmental Compliance and Sustainability
Environmental Management Process
DetermineRequirements
ReportProgress
EstablishStrategy
Set Goals &Objectives
Track Metrics& Gaps
"This information is not a commitment to deliver any material, code, or functionality. The development, release, and timing of any featuresor functionality described remains at the sole discretion of Oracle"
ISO 14001 Standards
Manage Policies by Laws & Regulations
Role base dashboard to identify immediate tasks and embedded reports to view the health of the enterprise.
Manage sustainability compliance objectives and track key metrics
Blueprint Q2 FY10
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New Solution for Green Operations Solution for Energy Efficiency and Reduction in CO2 Emissions
Manufacturing Shop Floor
Energy MetersUtility Bills
Standards & References
Data Collection
ContextualizationEngine
Facilities and Environmental
Data Model
Facilities and Environmental
Data Model
Extensible Attribute Framework
Extensible Attribute Framework
Energy/Green Dashboards
ProductionDashboards
ProductionManager
VP of OpsPlant Mgr
FacilityManager
Energy DirectorsGreen Czars
CFOs, COOs
BuildingAutomation
Systems
OMRON Sensors & CO2
visualization
Manufacturing Operations
Model
Extensible Attribute Framework
"This information is not a commitment to deliver any material, code, or functionality. The development, release, and timing of any featuresor functionality described remains at the sole discretion of Oracle"
Q4 FY10
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Solution CapabilitiesFlexible Entity Modeling and Hierarchies
• Model Production and Non-Production Facilities/Site • Flexible Hierarchy & Entities Definition – Sites, Buildings, Floors, Departments,
Equipments, etc. • Model utilities as energy sources, energy costs & other key attributes
EnterpriseEnterpriseEnterpriseEnterprise
SiteSiteSiteSite
BuildingBuildingBuildingBuilding
FloorFloorFloorFloor
EquipmentEquipmentEquipmentEquipment
EnterpriseEnterprise
PlantPlant
DepartmentDepartment
Production Line
Production Line
EquipmentEquipment
"This information is not a commitment to deliver any material, code, or functionality. The development, release, and timing of any featuresor functionality described remains at the sole discretion of Oracle"
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The Need for CollaborationDriven by Customers, Enabled by Partners
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2009 Eco-Enterprise Award WinnersDemonstrating Value Creation
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Partner Apps Focus
NDEVR 5-10 customers using their connectors; HQ’d in ANZ; solution extends existing customer deployment
EBS, JDEOBIEE
GHG reporting
2Future 5-10 customers deployed with HFM; HQ’d in EMEA; works with Taysols in ANZ
Hyperion Sustainability reporting
IBM Carbon dashboard for employee travel; based on IBM carbon intelligence; integration to Oracle Applications
OBIEEEBS
GHG reporting
ESS Addresses needs of ‘dirtiest’ industries; growing joint customers in Utilities, Oil & Gas, CPG, presents opportunity for building integrations, e.g. EAM
OBIEE EH&S
Partner Ecosystem
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Partner (cont’d)
Apps Focus
Deloitte Strong Oracle practice with global reach; establishing new sustainability performance center; multiple Green Award winners
All Operational carbon management
Knowledge Global
Focus on non-manufacturing customers; based in ANZ
OBIEE, Hyperion, ODI
GHG reporting
GreenEPM Hyperion partner; developing solution for GHG reporting
Hyperion GHG reporting
CapISA ANZ partner Capiotech working with University of Sydney built on Oracle technology; input/output modeling
Hyperion, OBIEE
GHG reporting
Partner Ecosystem (continued)
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Competitive Landscape
Competitor
SAP Announced new Chief Sustainability Officer March 2009, emphasizing new dashboards, Bought Clear Standards, Technidata Relationship (EH&S). SAP Business Objects for Sustainability Performance Management
Microsoft Weak first push with “poor dashboard product” per AMR
IBM Dedicated consulting force for sustainability‘Smarter Planet’
SAS Planning to launch 2nd iteration of sustainability analytics. Have 7 customers on version 1.0
Pureplays: Enablon, IHS, Carbon Networks, C3, Tririga, Verisae
Positioned to be early “ankle-biters” into the Oracle install base
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Sales ExecutionTools, Initiatives
• Collateral Information• Webcasts• Industry Engagement (Oil & Gas, Public
Sector, Utilities, CPG)• Customer Tracking
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Collateral
Current• Web content:
• Oracle.com• KIX (internal)• Links from Sales dashboard
• Customer Snapshots - http://www.oracle.com/applications/green/green-customers.html
• Whitepapers – EIU, FutureLabs, Oracle and the Eco-Enterprise, Facilities Management
• Videos – Mark Sunday, customers
• Podcasts – http://www.oracle.com/applications/podcasts-sustainability.html
• Presentations
Upcoming• New customer snapshots• Eco-Enterprise, summary
document• Oracle.com update
• Industry specific content
• Partner content
• Easier access from Home page
• Compete Documents• Partner playbook• DSS demoscripts and viewlets• Presentations
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Webcasts
• Green Series• Sales Kickoff• NASA SC Managers • Toolkit• Northeast Regional• Comms Webinar• Customer Service Week
Webinar• Hyperion
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APAC Market
• Level of activities• Trends in Customer Demand• What do you need from Strategy?
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Where To Get More Information…
• Oracle and the Green Enterprise (external) – http://www.oracle.com/green
• Oracle and the Green Enterprise (internal) – https://kix.oraclecorp.com/KIX/display.php?labelId=1938&articleId=53991
• Oracle Corporate Citizenship (external) – http://www.oracle.com/citizenship
• Internal Corporate Citizenship (internal) – http://my.oracle.com/portal/page/myo/global/Corporate%20Communications%20Portal/Corporate%20Citizenship
• Strategy: [email protected], [email protected]• SCs: [email protected], [email protected]
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Oracle and the Environment
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Oracle Corporate Citizenship
Oracle is committed to using our technology and resources to advance education in innovative ways, protect the environment, promote diversity, and enrich community life.
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Oracle and the Environment
While achieving our business goals, Oracle seeks to maintain its facilities and operate in a manner that minimizes adverse environmental impact.
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Achieving More with Less…
+17% Savings
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In Data CentersToward an energy efficient benchmark in Austin
• > 6% of renewable energy > 6% of renewable energy • Energy usage reduced to < Energy usage reduced to <
0.5kWh supporting each 0.5kWh supporting each kWh of IT equipment kWh of IT equipment
• Support energy use is Support energy use is >50% less than typical >50% less than typical industry practiceindustry practice
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Operations
• Green procurement practices• Power saving PCs• 500,000 electronic rather than fixed media software uploads• Limited paper consumption & toner use – saving 19,842,432 pages
• Electronic expense reporting – 100,000 pages in the US• Electronic delivery reduced printed documentation by
more than 96% • Recycling waste byproducts – 71 tons annually• Asset retirement – 3.1 million pounds• Virtual class training through Oracle University worldwide
– will eliminate printing 500,000 student kits over 3 years• Telecommuting Programs
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Oracle Giving Supports the Environment
• The National Geographic Society
• Ocean Conservancy
• California State Parks Foundation
• Save the Redwoods League
• Golden Gate National Parks Association and Conservancy
• City Trees
• Wildlife Associates
• Marine Mammal Center
• NatureBridge
• California Coastal Commission Marine Education Project
• Acterra
• UC Santa Cruz Predatory Bird Research Group
• Coyote Point Museum for Environmental Education
• Marine Science Institute
• San Francisco Friends of the Urban Forest
• Yosemite National Institutes
• Dian Fossey Gorilla Fund International
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Oracle Volunteers Support the Environment
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Contacts• Overall Applications Strategy: Rich Kroes• Oracle and the Environment: Christina Cavanna• Marketing: Evelyn Neumayr• Field Enablement: Bruce Sanchez• Public Relations: Jessica Moore (Product), Kim Pineda (Corporate)• Analyst Relations: Veronica Veroulis• Global Customer Programs: Kate Kelly• BI – Angela Enyeart• GRC – Nicky Adams• Sustainability Reporting – John O’Rourke• Transportation Management – Gregg Lanyard• Agile PLM – Dries D’Hooghe• Enterprise Asset Management – Tom Sichko• Strategic Network Optimization (SNO) – Brian Vazquez• Utilities – Linda Jackman• Retail – Kathleen Egan• Reverse Logistics– Lee Sacco
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