Beyond ERP Transformation

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1 <Insert Picture Here> Beyond ERP Transformation Bernard Goor VP Consumer Goods & Process Industries, IBU Dec 9 th, 2010

2 Safe Harbor Statement 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 decision. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. 2

3 Key Messages The clock speed of IT needs to be better synchronized with the clock speed of the business The world of consumer goods is becoming increasingly complex, fast and unpredictable Succeeding in this environment will require a significant shift in operating model, enterprise architecture and related IT investments 3

4 Current IT Dilemma The Gap Between IT and Business Is Increasing! Growth Business Needs IT Response Time 4

5 Current IT Dilemma What Is Creating the Gap Between IT and Business? 70% of IT budget spent on operations Need to shift IT spending from operations to strategic investments Strategic Investment Savings Annual IT Spend Operations Strategic Investment Operations 5

6 How Critical is it to Change? IT and the Business need to synchronize their clock speeds. It means delivering incremental value with greater responsiveness to the strategic needs of the Business. Let s analyze why this is getting increasingly difficult 6

7 Consumer Goods Value Chain Suppliers Consumer Goods Manufacturer Customers Consumers Increased variability and velocity Increased transparency 7

8 Consumer Goods Value Chain Suppliers Consumer Goods Manufacturer Customers Consumers Demand volatility Fast changing consumer decisions Brand switching Focus on value and frugality More complex innovation Consumer as unit of one Impact of social media Impact of mobility Shopper marketing Direct to consumer More complex marketing media mix Geographical shifts 8

9 Consumer Goods Value Chain Suppliers Consumer Goods Manufacturer Customers Consumers Growth of private labels Information advantage of retailers Shifting of responsibility to manufacturers Increasing costs and lower returns of trade management Uncertain future of retail collaboration Sharing of retail data Shift in demand towards developing markets 9

10 Consumer Goods Value Chain Suppliers Consumer Goods Manufacturer Customers Consumers Focus on cost and complexity reduction Management of global supply chains Safety and traceability Fluctuating commodity costs Trading and risk management 10

11 Consumer Goods Value Chain Suppliers Consumer Goods Manufacturer Customers Consumers 1. Critical importance of agility and flexibility 2. Optimization everywhere 3. Real time business intelligence and analytics 4. Retail and consumer insights 5. Impact of new visualization technologies (e.g. geomapping) and devices (e.g. ipad) 6. Granular planning and execution, leading to data explosion 7. Complexity reduction (supply chain, assortment, etc.) 8. Global visibility and consistency (data, processes) 9. New delivery platforms (Cloud, SaaS, On Demand, BPO) 10. Resurgence of planning (S&OP, Integrated Business Planning) 11. Move from Capex to Opex 12. Impact of sustainability 11

12 How Critical is it to Change? Do we agree that the world of consumer goods has become more complex, fast and unpredictable? 12

13 How Critical is it to Change? The consensus is that, regardless of the magnitude of recovery, how companies operate will be changed forever. - Worldwide Brand-Oriented Value Chain, 2010 Top 10 Predictions, IDC How should consumer goods companies change? 13

14 What Changes Should Be Considered? Operating Model Refocus on outsidein dimensions of the business (product, demand, supply) Enterprise Architecture Enable flexibility, agility with high scalability and responsiveness 14

15 Core Consumer Goods Competencies Enterprise Planning and Performance Management Demand-Driven Operations Integrated Sales and Marketing Business Management and Control Innovation Enterprise Infrastructure 15

16 Integrated Where Should Business Companies Planning Invest? Minimize investment in Business Management and Control Migrate investments to areas of differentiation Differentiation Standardization Business Mgmt and Control Investment Flow Enhance efficiency of back office processes at a lower cost of ownership 16

17 Integrated Business Planning Where Should Companies Invest? Focus investments on Innovation, Integrated Sales and Marketing and Demand-Driven Operations Differentiation Standardization Innovation Integrated Sales and Marketing Demand-Driven Driven Operations Business Mgmt and Control Improve success rate of new products, shorten time-tomarket, ensure compliance and reduce costs Increase value from consumer marketing, brand equity and trade management investments Deploy agile operations to support profitable growth Enhance efficiency of back office processes at a lower cost of ownership 17

18 Integrated Business Planning Where Should Companies Invest? Deploy an enterprise-wide planning and performance management solution to optimize business performance Integrate financial, sales and operational planning to optimize business performance Enterprise Planning and Performance Management Integrate financial, sales and operational planning to optimize business performance Innovation Integrated Sales and Marketing Demand-Driven Driven Operations Business Mgmt and Control Improve success rate of new products, shorten time-tomarket, ensure compliance and reduce costs Increase value from consumer marketing, brand equity and trade management investments Deploy agile operations to support profitable growth Enhance efficiency of back office processes at a lower cost of ownership 18

19 Integrated Business Planning Where Should Companies Invest? Leverage investments in Enterprise Infrastructure to achieve speed, agility and consistency Integrate financial, sales and operational planning to optimize business performance Enterprise Planning and Performance Management Integrate financial, sales and operational planning to optimize business performance Innovation Integrated Sales and Marketing Demand-Driven Driven Operations Business Mgmt and Control Improve success rate of new products, shorten time-tomarket, ensure compliance and reduce costs Increase value from consumer marketing, brand equity and trade management investments Deploy agile operations to support profitable growth Enhance efficiency of back office processes at a lower cost of ownership Enterprise Infrastructure Rationalize cost and complexity of IT landscape while enabling business transformation 19

20 Oracle Enterprise Infrastructure Configurable SOA-based business processes built in the orchestration layer Standardized web servicesbased application integration Imbedded business intelligence Role-based cockpits Enterprise KPIs and metrics Interactive collaboration tools User Interaction and Collaboration Centralized user mgmt Access control and authentication Data privacy and security Shared development environment Full lifecycle support Intuitive and interactive tools Enterprise Development Business Process Infrastructure Information Infrastructure Shared Grid Infrastructure Cloud computing technology Extreme performance Enterprise Security Enterprise Management Continuous end-toend monitoring Automated mgmt Policy driven service frameworks Master data mgmt Enterprise content mgmt Information lifecycle mgmt 20

21 Conclusion: Recommended Directions Refocus on outsidein dimensions of the business (product, demand, supply) Enable flexibility, agility with high scalability and responsiveness Enterprise Planning and Performance Management Integrate financial, sales and operational planning to optimize business performance Innovation Integrated Sales and Marketing Demand-Driven Driven Operations Business Mgmt and Control Improve success rate of new products, shorten time-tomarket, ensure compliance and reduce costs Increase value from consumer marketing, brand equity and trade management investments Deploy agile operations to support profitable growth Enhance efficiency of back office processes at a lower cost of ownership Enterprise Infrastructure Rationalize cost and complexity of IT landscape while enabling business transformation 21

22 Oracle Processes for Consumer Goods Enterprise Planning and Performance Management Business Intelligence Strategic Financial Planning Budgeting and Forecasting Integrated Business Planning Sales & Operations Planning Innovation Product Portfolio Planning and Optimization Innovation Strategy Project Portfolio Mgmt New Product Introduction Demand Signal Mgmt Product Data Mgmt Integrated Sales and Marketing Brand and Category Mgmt Consumer Marketing Price Mgmt Demand Signal Mgmt Advanced Trade Planning Trade Promotion Mgmt Retail Coverage Planning and Execution Demand-Driven Driven Operations Demand Mgmt Demand Signal Mgmt Sales & Operations Planning Supply Chain Planning Sourcing and Procurement Manufacturing Order Fulfillment Warehousing Transportation Business Mgmt and Control Financial Mgmt Human Capital Mgmt Capital Asset Mgmt Regulation and Compliance Enterprise Portal and Collaboration Business Intelligence Platform SOA and Business Process Mgmt Enterprise Infrastructure Enterprise Data and Content Mgmt Application and Data Security Grid Infrastructure 22

23 Oracle Product Lines for Consumer Goods Enterprise Planning and Performance Management Hyperion Demantra Business Intelligence Innovation Agile Hyperion Demantra Primavera Crystal Ball Demand Signal Repository Integrated Sales and Marketing Siebel CRM On Demand Demantra Demand Signal Repository Demand-Driven Driven Operations Demantra Strategic Network Optimization Advanced Planning EBS, JD Edwards Transportation Management Demand Signal Repository Business Mgmt and Control EBS JD Edwards PeopleSoft Hyperion Governance, Risk and Compliance Fusion Middleware Business Intelligence Enterprise Infrastructure Master Data Management DB and DB Options Exadata/Exalogic Sun 23

24 Oracle Solution Sets for Consumer Goods Enterprise Planning and Performance Management Integrated Business Planning Innovation Integrated Sales and Marketing Demand-Driven Driven Operations Business Mgmt and Control Product Innovation Mgmt Comprehensive Trade Mgmt Demand Driven Operations Enterprise Infrastructure 24

25 Where to Start the Beyond ERP Journey? Objective #1: Achieve competitive differentiation Deploy globally consistent, yet flexible and adaptable processes Extract value out of disconnected systems and applications Achieve a single view of data across heterogeneous systems Extract insights from internal and external data Improve user productivity through role-based cockpits 25

26 Where to Start the Beyond ERP Journey? Objective #2: Reduce IT costs Reduce IT complexity Deploy modular projects with shorter time to value Implement a best-in-class enterprise architecture Increase computing power at a lower cost Reduce data center costs 26

27 Key Messages The clock speed of IT needs to be better synchronized with the clock speed of the business The world of consumer goods is becoming increasingly complex, fast and unpredictable Succeeding in this environment will require a significant shift in operating model, enterprise architecture and related IT investments 27

28 The preceding 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. 28

Leadership Insights: Productivitiy and Innovation. Folia Grace, VP Application Product Marketing November, 2011

Leadership Insights: Productivitiy and Innovation Folia Grace, VP Application Product Marketing November, 2011 1 TECHNOLOGY EXPERIMENTATION LEADERS NEW FRONTIER MULTIPOLARITY CREATIVITY BIG DATA CLOUD