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


Sustainability ReportingSustainability Reporting

Natural Resource Planning and Budgeting


Carbon Cap & Trade, Offset Management


Digital Content Management


Workload ManagementWorkload Management

Application ConsolidationApplication Consolidation

Software-as- a-ServiceSoftware-as- a-Service

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


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


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



Sustainability ReportingSustainability Reporting





ERP & SCM IntegrationERP & SCM Integration

Emissions CalculationsEmissions Calculations





Data AggregationData Aggregation



Workload ManagementWorkload Management

Application ConsolidationApplication Consolidation

Software-as- a-ServiceSoftware-as- a-Service



Design for the EnvironmentDesign for the Environment

Sustainable ProcurementSustainable Procurement

Supply Chain PlanningSupply Chain Planning

Green ManufacturingGreen Manufacturing





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


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


Energy/Green Dashboards

ProductionDashboards

ProductionManager

VP of OpsPlant Mgr

FacilityManager

Energy DirectorsGreen Czars

CFOs, COOs

BuildingAutomation

Systems

OMRON Sensors & CO2

visualization

Manufacturing Operations

Model



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


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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

Oracle and the Eco-Enterprise Product Strategy – Sustainability Solutions.

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