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Utilities Partners visit US HQCharlie ChePartner Development Manager

Agenda• Background and Objective of this visit• Briefing on the 2 Partners(Solutions and attendee of each )• CN Power industry summary

• Industry Architecture• IT Market analysis

• Oracle position and strategy in Utilities CN• History• Where we are • Future plan • EAM as a key initiative

• Help reviewing on solution strategy and architecture of the 2 key EAM solution that the 2 partners are developing respectively to ensure they are on the right direction and to avoid solution risk as the 2 EAM solution is critical for Oracle Utilities business in FY08 and the close future.

• US experts of EAM and Apps Tech help to answer and solve their issues and questions on EAM ,Apps Tech and integration with PM.

• Learn customization standard of oracle to enable their solution deliverable by 3rd party like Oracle module which can be upgraded with Oracle Fusion Application.

• Provide partners with a whole-picture view of Oracle's solution for Utility and Fusion Application.This is to help them define future strategy of solution development more clearly and help increase partners'confidence to invest more in this industry.

Objective for Oracle

Company: Tier1 partner(CP) and the only local partner for power grid industry. Since Q3 FY06,Longshine build an EAM solution for Power Grid

industry by extending the Oracle EAM product.(the standard Oracle EAM can only cover 50%)

Has won two key accounts against SAP,Huabei Grid which is the biggest grid group in CN and Jiangxi Grid with size of 800K .

The Pipeline are estimated to be 2M in FY08

Attendee :Wang Yanpeng:

Director of Utility Business Unit

Expertise on Project management and EAM solution

Li Feng and Zeng Fujie:

Technical background on Architecture and development

Information of Longshine

Key GTMi –EAM for Grid with Longshine

•The objective1. Oracle EAM can only cover 50% of requirement of Power Grid and Longshine will develop the rest 50%.

2.Refine the solution developed in North grid to a solution capable to be selled,presaled and implemented repetitively.

3.Package and validate the EAM solution to make the solution marketable.

Solution DescriptionThis solution is targeting to be a total EAM solution suitable for Power Transmission Industry by extending the standard EAM product on Oracle Tech Framework. This Total EAM solution will also include Fusion middleware,BPEL,portal,EAM,Spatial and OCS.

Architecture of the Solution

Infrastructure

Apps Framework

Power Gen

Transmission

Transfer

station

Retail

transformer

substation

citizen

Wholesale

Distribution

Network

Command CenterCommand Center

Transaction center

Transaction center Data CenterData Center

Portal

Existing Production System E-Production System

Data Center

ETL静态基础数据

实时业务数据

空间数据

集中的数据中心

基层数据1

基层数据2

基层数据3

基层数据n

Core Transaction data

Central DW

ETL

Report

Multi-dimension Anylysis

Data Mining

Transaction dataReal time Data

Spatialdata

Centralized Data center

Analytical Data

基层数据1

基层数据2

基层数据3

Decision &commandMIS

基层数据n

Core Transaction system(SCADA,SIS,etc)

unstructured’ Data

Strategy level

Strategy level

Management level

Management level

Operational level

Operational level

Master Data

Master Data

Business processBusiness process

KPI,Alert managementKPI,Alert management

Technical manage

Technical manage

Polluted area

Positioning

Polluted area

Positioning Failure

Positioning

Failure Positioni

ng Condition

monitoringCondition

monitoring

Mini-climateMini-

climate

VideoVideo

Coding standardCoding

standard

Operation

Instruction

Operation

Instruction

AssetAsset

SpareSpare

Failure Knowled

ge repositor

y

Failure Knowled

ge repositor

y

Resource MasterResource Master

Equipment

Equipment

Planning Planning

Safety TicketSafety Ticket

Power Suspensi

on

Power Suspensi

on

Maintainance

Maintainance

Engineering

project

Engineering

project

ExperimentationExperimentation

Technical SupervisingTechnical

Supervising

Spare Spare

Docu manage

ment

Docu manage

ment

Thunder Positioni

ng

Thunder Positioni

ng

RCMRCMOperation Managemen

t

Operation Managemen

tPurchasi

ngPurchasi

ng

Transmission GIS

Transmission GIS

Scheduling

Scheduling

CostCost

FailureFailure

Transaction center

example

……

Command Center

Real timeMonitoring

DSSKM

Transaction CenterData Center

KPI

EAM of Longshine-StatusPhase I- Solution building and projects implementation(Sep 2005 - April 2007) Status: Completed

Longshine team worked with Oracle Presale team to develop solution on EBS 11.5.10.The Phase I scope focusing on safety execution which is critical for power industry.

Longshine has won 2 key projects and Huabei Grid has gone live in April .What is more,the EAM project of Huabei been validated and recommended by the partner company ,State Grid,a Fortune 40 company.

Phase II- Refine/integration and Go to Market (April 2007 – TBD) Status: In progress

1. Be a more comprehensive EAM solution enrolling portal &BI and more strong solution from the perspective of integration between the various modules including Fusion middleware,BPEL,portal,EAM,Spatial and OCS.

2.Refine the solution can be be selled, presaled and implemented repetitively.

3.Package and validate the EAM solution to make the solution marketable.

Company:In Application perspective,Taiji’s primarily focus is in Power industry and Tobacco

industry.

Since Q3 FY07,Taiji start to build an EAM solution for Power Generation industry.

They are our only partner covering License & Education resell, and Support renewal services. Taiji also covers whole range of Oracle Products, inclding DB, RAC, iAS, EBS and is our primary partner for Collaboration Suite.

Attendee :Nie Lei

VP of Information Product Unit

Has more than 10 years working experience in Power Gen Group

Strong experience in production management of Power plant , project management and application of BFS++.

Jiang Shizhen: Stong background in FMS ,SCM of EBS.

Zhang Wenbin: Technical lead of EAM solution.

Information of Taiji

Key GTMi –EAM for Power Gen with Taiji

The objectiveThere are gaps between the industry requirement with Oracle product,esp in the security management and maintainance management in EAM.This has hindered the growth of Oracle business in Utilities .In order to build up a total solution for Power Plant including EAM suitable for this industry ,Oracle will help Taiji to develop EAM solution on OAF to meet the requirement of the Power plant industry

Solution DescriptionThis solution will mainly develop on the EAM requirement specific for Power Plant industry which can not be Oracle standard EAM .

The scope of the solution includes security ticket (2 ticket),Work order,operation management,integration with project and maintainance package .

Taiji EAM Solution Overview-2

Extension Modules (Customized by Taiji):

• Equipment Security Management

• Maintenance and figurement Management

Projects Management

Work Flow Report

Fin

ance

Man

agem

ent

Mat

eria

l Man

agem

ent

Maintenance and Disfigurement Management

Enterprise Equipment Management

Equipment Security

Management

• WT&OT Management• Equipment Operation&Shift

Management• Work Order Extension

Function(safety)

• Equipment Repair Project Management

• Examine and Repair Kit• Equipment Disfigurement

Management

Taiji EAM project spans

EBS Modules:

• EAM

• Oracle SCM Modules

• Oracle Finance Modules

• Oracle Projects

EAM

PO/INV etc.

GL/AP/CST etc.

Projects

ESM (Extension

Module)

MDM (Extension

Module)

• Legend: EBS Standard Modules

• Extension Modules

Taiji EAM Solution Definition-1

Taiji EAM ESM Solution(compeleted)

ESM - Equipment Security Management

• Equipment Basic Information Management

• Work Ticket & Operation Ticket Management

• Work Order Management and Integration

• Equipment Operation & Shift Management

Projects Management

Work Flow ReportF

inan

ce M

ana

gem

ent

Mat

eria

l Ma

nage

men

t

Maintenance and Disfigurement Management

Enterprise Equipment Management

Equipment Security

Management

• WT&OT Management• Equipment Operation&Shift

Management• Work Order Extension

Function

• Equipment Repair Project Management

• Examine and Repair Kit• Equipment Failure

Management

• The Solution are made by two solution: ESM (compeleted)and MDM(planing)

• Legend: Extension Modules

• EBS Standard Modules

Taiji EAM Solution Definition-2

Taiji EAM MDM Solution

• MDM – Maintenance and Figurement Management

• Equipment Repair Project Management

• Examine and Repair Kit

• Equipment Failure Management

• Material Management

• Finance Management

Projects Management

Work Flow ReportF

inan

ce M

ana

gem

ent

Mat

eria

l Ma

nage

men

t

Maintenance and Disfigurement Management

Enterprise Equipment Management

Equipment Security

Management

• WT&OT Management• Equipment Operation&Shift

Management• Work Order Extension

Function

• Equipment Repair Project Management

• Examine and Repair Kit• Equipment Failure

Management

• Legend: Extension Modules

• EBS Standard Modules

Key GTMi EAM for Gen with Taiji-Status

Phase I-security management(Sep 2006 - April 2007) Status: Completed

Taiji team worked with Oracle Presale team and PSC to develop solution on EBS 11.5.10.The Phase I scope focusing on safety execution which is critical for power industry.

Phase II- maintainance and project management (April 2007 – TBD) Status: In progress

Enhance solution according to the feedback of Huaneng Group and Huadian. Taiji will develivery total solution package for China Electric Power industry .The scope of this phase will include maintainance package,Asset management and project integration

• Architecture of Power Industry• IT Market trend in Power Industry

CN Power industry summary

2 Power Grid Companies

State Grid(Future Top 40)

South Grid (GuangDong,GuangXi,YunNan , GuiZhou, HaiNan)

Power Generation Companies(Totally 90B US$ in 2005)

HuaNeng Power

DaTang Power

HuaDian Power

GuoDian Power

China Elc. Power Investment Co.

GuoHua Power

… …about 60 territory power

Generation Groups.

4 Supporting Companies

North East, Central, North, East, North West

Province Companies

China Elec. Engineering Consultant Co. China GeZhouBa Group Co.China water and electricity Engineering Consultant Co. China water and elec. Construction Group CO.

Industry Architecture

Key players and their performance

7.8RMB=1US$

2005 :Estimated to be US$ 1.42 billion IT hardware for 61.3%

Network equipment for 11.8%),

Commercial off-the-shelf (COTS) software accounted for 10.7%

IT services for the remaining 16.2%.

2010:will reach US$ 2.8billion 2005.2010 compound annual growth rate (CAGR) of 13.7%.

software spending will increase to 16.7%,

services up to 26.1%.

IT Market Size

IT Market in Detail

Customer Software Vendor Date

ZheJiang Power Grid SAP Early than 2000

ShangHai GaoQiao Power Generation SAP Early than 2000

HuaNeng SuZhou TaiCang Power Gen. SAP 2000.12

DaYaWan Nuclear Power Gen. SAP+MAXIMO 2001.1

GuangXi LaiBin Power Gen. SAP Early than 2000

ShanDong Power Grid. Peoplesoft + Maximo 2001.5

Oracle Apps History– Customer Map 5 years ago

5 years ago :Sap is strong in this important area. And Oracle record is 0.

Key Apps Projects in recent 5 yearsBeiJing DaTang Power Gen. Oracle Financial 2002.3

QinHuangDao Power Gen. Oracle Sourcing 2002.5

HuaNeng Financial Co. Oracle Financial 2002.8

JingNeng Power Gen. Oracle Fin+HR 2002-2003

ShangHai Power Grid Co. SAP Fin+HR 2003.3

HuaNeng YueYang Power Gen. Oracle Financial 2003.5

GuoHua Power Gen. Oracle Fin+HR 2003.8

HuaDian Power International Co. Oracle Fin, eAMeAM, Pur 2004.5

ChongQing Power Grid Co. SAP, CRM-Sales & Marketing, Billing 2004.4

DongNan Power Co. Oracle Fin+eAMeAM 2004

ZheJiang Energy Co. Oracle Fin, Exchange + Maximo 2005

YunNan DCS Power Co. Oracle Fin, EPBEPB 2005.8

GuoDian Power Co. Oracle Fin, EPBEPB 2005.11

XieXin Power Co. Oracle Fin, eAMeAM, Pur 2005.11

North Power Gen Co. SAP, Fin+HR 2005.12

MinJiang Power Co. Oracle Fin 2006.1

HuaDong Power Grid. SAP Fin, HR, SCM 2006.3

HuaBei Power Grid Co. Oracle eAMeAM, Project, Fusion Middleware 2006.3

JiangXi Power Gird Co. Oracle eAMeAM 2006.5

2 Power Grid Companies

State Grid

South Grid (GuangDong,GuangXi,YunNan , GuiZhou, HaiNan)

Big 5 Power Generation Group Companies – 4 of them core companies use Oracle Apps

HuaNeng Power exchange

DaTang Power 6PPs, Fin,EAM

HuaDian Power 9PPs. Fin, eAM,

Project, purchasing

Guo Dian Power 10PPs, Fin, EPB

China Elc. Power Investment Co.

Guohua FMS,HR,SCM

4 Supporting Companies

North East, Central, North, East, North West

Province Companies

China Elec. Engineering Consultant Co. China GeZhouBa Group Co.China water and electricity Engineering Consultant Co. China water and elec. Construction Group CO.

Date Customer Solution Consulting Co.

2002.3 DaTang Power Financial PWC, DTXZ

2003.6 HuaNeng YueYang Power

Financial Hand, HuaNeng IT.

2003.7 JingNeng Power Financial, HR

2003.8 GuoHua Power Financial, HR,iAS, iLearning

Bearing Point,DTXZ

2003.10 HuaDian Power Financial, eAM, SCM

IBM(PWC)

2003.11 DongNan Power Financial, eAM IBM(PWC)

Build Strength in Power Generation

Power Grid Companies

State Grid

South Grid (GuangDong,GuangXi,YunNan , GuiZhou, HaiNan)

Power Generation Companies

4 Supporting Companies

North East, Central, North, East, North West

Province Companies

China Elec. Engineering Consultant Co. China GeZhouBa Group Co.China water and electricity Engineering Consultant Co. China water and elec. Construction Group CO.

ZheJiang Power Grid1999, SAP IBM Fin,HR

ShanDong Power2001.5, Peoplesoft+Maximo

ShangHai Powr Grid2003.1,SAP Accenture Fin,HR

ChongQing Power Grid2004.5, SAP Accenture CRM, Billing

HuaDong Power Grid2006.3, SAP Accenture, Fin, HR, SCM

HuaBei Power Grid2006.3, Oracle+Longshine eAM2006.8,Accenture ERP(Fin,SCM,HR)

JiangXi Power Grid2006.5, Oracle+Longshine eAM

Make progress in Power Grid

Future plan

GenerationAdd functionality on eAM in Power Generation area with Local partners

Build EPB+Fin+eAM integration solution model, reference in power generation

Build local solution “ Fuel Management System” base on Oracle EBS integrated with Oracle solution to make competition advantage.

TransmissionIncrease functionality of “eAM+Spatial” , build HuaBei & JiangXi

as reference with Longshine

Make EPB as break point for Gird companies Financial system

Maximo/PSDI

Datastream

Mincom

iFS

Simens “BFS++”

Q4

Indus

eAM is the hottest single solution in Power Generation,Oracle need increase functionality in this area to help selling.

Revenue(license+delivery) is about 2M in Power Generations

Revenue(license+delivery) is about 1M in Power Generations

Revenue(license+delivery) is about 3M in Power Generations

Revenue(license+delivery) is about 1M in Power Generations

Revenue(license+delivery) is about 300k in Power Generations

eAM Player:

EAM as a key initiative