Oracle Industry Solutions Automotive OEMs Information Age Applications.

Oracle Industry Solutions

Automotive OEMs

<Name><Title>

Information Age Applications

The Automotive Value Chain

Retail

Suppliers OEMs

DistributionDistributionHubs/CentersHubs/Centers

Tier N SuppliersTier N Suppliers

SystemSystemIntegratorsIntegrators

Automobile & TrucksAutomobile & TrucksAssemblers (OEMs)Assemblers (OEMs)

Post ProductionPost ProductionAssemblyAssembly

Tier 1 Suppliers andTier 1 Suppliers andSub-assemblersSub-assemblers

DealershipsDealerships

Automotive OEM Drivers

Revenue Management…to convert $74B of stagnantinventory into sales revenues

Revenue Management…to convert $74B of stagnantinventory into sales revenues

Cost ReductionOEMs spend $25B+

in incentives…

Cost ReductionOEMs spend $25B+

in incentives…

Efficiency & ProductivityCurrently, custom vehiclestake 60+ days to produce

Efficiency & ProductivityCurrently, custom vehiclestake 60+ days to produce

Product QualityVehicle recalls continue

to plague consumers

Product QualityVehicle recalls continue

to plague consumers

Customer RetentionIncreasingly consumers expecttreatment as “market of one”

Customer RetentionIncreasingly consumers expecttreatment as “market of one”

Product InnovationIt takes 3 years on averageto develop a new platform

Product InnovationIt takes 3 years on averageto develop a new platform

• Alignment of vehicle production to real demand

• Collaboration for Fast Vehicle Development (18-24 months)

• Consumer preferences analyzed and shared by multiple orgs

• Streamlined, automated strategic sourcing & procurement

• Incentives to maximize profits vs. moving inventory

• Lean, highly utilized mixed model assembly plants

• Alignment of vehicle production to real demand

• Collaboration for Fast Vehicle Development (18-24 months)

• Consumer preferences analyzed and shared by multiple orgs

• Streamlined, automated strategic sourcing & procurement

• Incentives to maximize profits vs. moving inventory

• Lean, highly utilized mixed model assembly plants

A Need for ChangeLeading Business Trends

Sales & MktgSales & MktgSales & MktgSales & Mktg

Information Information TechnologyTechnologyInformation Information TechnologyTechnology

EngineeringEngineeringEngineeringEngineering

Supply Supply ManagementManagement

Supply Supply ManagementManagement

ServiceServiceServiceService

FinanceFinanceFinanceFinanceSales & Operational Sales & Operational

PlanningPlanningSales & Operational Sales & Operational

PlanningPlanning

ProductionProductionProductionProduction

Continually Improve Quality, Cost and Cycle Time

• Poor Quality & Excess WIP• High Material & Supply Costs• Lengthy ECO Approval Process• Error Prone Order Processing

• Poor Quality & Excess WIP• High Material & Supply Costs• Lengthy ECO Approval Process• Error Prone Order Processing

• Incorrect Resource Dispatching• Conflicting Demand Signals• Duplicate & Erroneous Data• Isolated Departmental Systems

• Incorrect Resource Dispatching• Conflicting Demand Signals• Duplicate & Erroneous Data• Isolated Departmental Systems

Common Areas of WasteCommon Areas of Waste

A Need for ChangeExtend Lean Initiatives Across the Enterprise

Oracle in AutomotiveDid You Know?

• More than 150 automotive companies run Oracle apps

• Over 1900 automotive companies run on Oracle technology

• 7 of the top 10 global automotive companies on Reuters run Oracle applications

• 9 of the top 10 automotive manufacturers on Industry Week's 2004 manufacturing companies run Oracle apps

• 4 out of the top 5 world’s largest tire manufacturers runOracle applications

• 33 of the top 39 automotive manufacturers on Industry Week's 2004 manufacturing companies run Oracle apps

Oracle in AutomotiveDid You Know?

• 10 of the top 10 motor vehicle and parts companies onFortune Magazine's 2004 global top 1000 run Oracle apps

• 15 of the top 15 companies on Fortune Magazine's 2004“Most Admired Automotive Parts Companies” run Oracle apps

• 18 of the top 26 world's largest automotive manufacturerson Reuters run Oracle applications

• 9 of the top 10 largest auto parts manufacturers on Reutersrun Oracle applications

• 19 of the top 20 OEMs from Automotive News 2004 runOracle applications

• 21 of the top 40 top Global Suppliers from Automotive News 2004 run Oracle applications

What Customers are Achieving…

100% of the Top 20 Automotive Companies Use Oracle

Oracle applications drive many core functions within the OEMs: Oracle applications drive many core functions within the OEMs:

GM has signed an enterprise agreement to utilize Oracle technology globally and has extended the agreement to it’s joint ventures.GM has signed an enterprise agreement to utilize Oracle technology globally and has extended the agreement to it’s joint ventures.

Tier 1’s are using Oracle technology & applications to grow globally:Tier 1’s are using Oracle technology & applications to grow globally:

• GM – Online vehicle configuration• Nissan America – Warranty mgmt• Subaru – Financials & order mgmt

• Honda Motorcycle – Product dev’t• Fiat – HR & financials• ChangAn (China) – Manufacturing

• Delphi• Cummins (13 sites)

• Eaton (22)• ArvinMeritor (12)

• Dana (9)• American Axle

A Few Oracle Auto OEM Customers…

Oracle Internal Use - Auto Content Factory

Develop

Market

Sell

Order

Plan

Procure

Make

Fulfill

Service

Maintain

Finance

HR

Projects

Contracts

Customers,Customers,

Suppliers,Suppliers,

Products,Products, ……

Oracle E-Business SuiteBuilt on a Unified Information Architecture

• Common data model enables a single source of truth

• Comprehensive suite of applications designed to work together

• Robust set of integration services based on open standards

• Modular deploymentby business flow

• Single global instance implementations

IntelligenceIntelligence

TechnologyTechnology

Tailored for Automotive OEMsSupport for Key Processes

ProcurementProcurement Planning &Planning &ManufacturingManufacturing

CollaborativeCollaborativeDevelopmentDevelopment

DealerDealerIncentiveIncentive

ManagementManagement

CustomerCustomerDemandDemandCaptureCapture

Enable Collaborative Vehicle Development

Source and Procure Globally for Best Value

Enable Lean, Flexible Manufacturing Environments

Sense and Respond to Customer Demand

Provide Targeted Dealer Incentives

Oracle AutomotiveOEM Solutions



ProcurementProcurementPlanning &Planning &

ManufacturingManufacturingCollaborativeCollaborativeDevelopmentDevelopment




Product Lifecycle ManagementCollaborate and Make Profitable Choices

Portfolio Management

Product IntelligenceProduct Intelligence

Phase-GateControl

ComponentSourcing

Design for SC& Compliance

SalesConfiguration

BOM Mgmt& ReleaseProduct

DataRepository

ProductData

Repository

Issue/ChangeManagement

New

Product

Intro

New

Product

Intro

Collaboration

Collaboration

RetireRetire

DesignDesign

ReleaseRelease

Ramp-upRamp-up

MaintenanceMaintenanceMaintenanceMaintenance

Prototype& Test

Prototype& Test

VolumeVolumeProductionProduction

ConceptConcept

Specifications

Drawings

Schedules

Issues

Ideas

ChangesServiceService FinanceFinance

Internal

External

Sales & MktgSales & Mktg PurchasingPurchasing

EngineeringEngineering ManufacturingManufacturing

SuppliersSuppliers CustomersCustomers

Utilize a Product Data Hub Achieve Complete Product Rationalization

Capture all product structures and configurations in a single location

List all products & related attributes with a hierarchical view of components

Manage complex, multi-dimensional data (item types, location, platform, etc.)

Share the same product information as products evolvethrough lifecycle

*Bill of Materials

EngrEngrBOMBOM

MfgMfgBOMBOM

SalesSalesBOMBOM

As MaintainedAs MaintainedBOMBOM

Design &Develop

Design &Develop

Plan &Manufacture

Plan &Manufacture

Market, Sell,Fulfill

Market, Sell,Fulfill

Service &Maintain

Service &Maintain

SingleVersionof Truth

SingleVersionof Truth

ProductProductDataData

RepositoryRepository

Search and Find the Best ComponentIncrease Component Reuse Through Advanced Search

Browse CategoryHierarchy

BestComponent

Search Components by Specification Values

(and compare search results)

Choose Best Fitting Component

CategoryCategory SearchSearch

AttributesAttributesAttributeAttributeValuesValues

Share CAD DesignsCollaborate Through a Secure, Common Web Portal

• Streaming-Based CAD View & Mark-up– Structure hierarchy, parts lists & attributes– Product data queries– Mark-ups– Perspective and sectioned views– Animations– CAD format neutral– Spontaneous access without download– Integrated Change Mgmt with product info

• Web Conferencing– File sharing– Desktop sharing– Application sharing– Co-browsing– White boarding

Control the Product Change ProcessWorkflow Driven Process Automation

User-Defined Change Types Streamline Review and Approvals Facilitate Multi-Company Collaboration

ImplementImplementChangeChange

Test &Test &ApproveApprove

ReviewReview CreateCreateWork PkgWork Pkg Create

Change Order(ECO)

CreateChange Order(ECO)

Workflow DrivenWorkflow Driven

ScheduleScheduleCostCost

DispositionsDispositions

QA / EngrQA / Engr

Alerts &Alerts &NotificationsNotifications

EngineerEngineerOrg 1, Org 2, …Org 1, Org 2, …

ID IssueID Issue AssignAssign& Notify& Notify

AssessAssessImpactImpact

ReviewReview ApproveApproveor Rejector RejectCreate

Change Request

(ECR)

CreateChange Request

(ECR)EngineerEngineer

Consistent, Timely Info to StakeholdersObtain Personalized, Secure Access Anywhere, Anytime

GlobalProject

Repository

GlobalProject

Repository

Information Inputs

• Project Management Plans• Actual Effort and Costs• Issues and Changes• Documents• Customer Specifications

Information Inputs

• Project Management Plans• Actual Effort and Costs• Issues and Changes• Documents• Customer Specifications

Project Managers

Team Members

Executive Mgmt

Customer / Sponsor

Ro

les

Ro

les

• Consistent Product & Project Info– Information entered once– Operational & acct views by role– Attribute-based searches

• Secure, Role-Based Access– Functions secured by role on

each project– Built-in security protocols

• Timely Information – Daily or weekly updates– Information entered via self-service,

batch entry and open interfaces

• Multi-Method Access– Internet browser-based UI– Workflow driven e-mail– Productivity tools (MS Project / Excel)

Advanced Procurement SolutionAddress Direct / Indirect Materials and Service Needs

DemandDemandCollectionCollection

IndirectIndirect& MRO& MRO

DirectDirectMaterialsMaterials

EngineeredEngineeredProductsProducts

ServicesServices

ApprovalRoutingApprovalRouting

TouchlessBuyingTouchlessBuying

Automated PaymentAutomated Payment

Enforce Policy ComplianceEnforce Policy Compliance

Budget-BasedProcurementBudget-BasedProcurement

ContractManagementContractManagement

SupplierPerformanceSupplierPerformance

Reduce Spend on Goods and ServicesReduce Spend on Goods and Services

CategoryManagementCategoryManagement

OnlineSourcingOnlineSourcing

SpendAnalysisSpendAnalysis

Streamline Procurement ProcessesStreamline Procurement Processes

SupplierSupplierCollaborationCollaboration

SettlementSettlement

OrdersOrders

ProfileProfileManagementManagement

SupplierSupplierNetworkNetwork

LogisticsLogistics

SupplierSupplierPortalPortal

Complete Procure-to-Pay Automation Integrate Sourcing through Execution

Send ElectronicSend Electronic

PO to SupplierPO to Supplier

Receive ElectronicReceive ElectronicInvoiceInvoice

CreateCreate

Purchase OrderPurchase Order

Identify & QualifyIdentify & Qualify

VendorsVendors

EvaluateEvaluate

BidsBids

Create & ApproveCreate & Approve

RequisitionRequisition

Author & NegotiateAuthor & Negotiate

Contract or MPA*Contract or MPA*

Pay SupplierPay Supplier

(EFT)(EFT)

AnalyzeAnalyze

PerformancePerformance

Receive Goods or Receive Goods or

Services; InspectServices; InspectSelect VendorSelect Vendor AdjustAdjust

ContractsContracts

SourcingStrategy

PurchasingExecution

Add structure to strategic activities & execute routine transactions automatically

*Master Purchase Agreement

Support Any Negotiation TypeFlexible Methods Address YOUR Sourcing Strategy

Good orService

Example

Duration

Focus

Good orService

Example

Duration

Focus

Well-DefinedWell-DefinedAttributesAttributes

Furniture, Components Furniture, Components

HoursHours

NegotiateNegotiateBest PriceBest Price

Well-DefinedWell-DefinedAttributesAttributes

Furniture, Components Furniture, Components

HoursHours

NegotiateNegotiateBest PriceBest Price

Standard Standard CommoditiesCommodities

Paper, Pens, FastenersPaper, Pens, Fasteners

VariesVaries

Best Terms:Best Terms:Price, Delivery, PaymentPrice, Delivery, Payment

Standard Standard CommoditiesCommodities

Paper, Pens, FastenersPaper, Pens, Fasteners

VariesVaries

Best Terms:Best Terms:Price, Delivery, PaymentPrice, Delivery, Payment

Complex,Complex,Engineer to OrderEngineer to Order

Buildings, EquipmentBuildings, Equipment

Days or WeeksDays or Weeks

Meet Need forMeet Need forMany AttributeMany Attribute

Complex,Complex,Engineer to OrderEngineer to Order

Buildings, EquipmentBuildings, Equipment

Days or WeeksDays or Weeks

Meet Need forMeet Need forMany AttributeMany Attribute

Auction /Bid

Auction /Bid

RFQ / RFP / RFI / Quote

RFQ / RFP / RFI / Quote

Offer /Counter Offer

Offer /Counter Offer

• Multi-round negotiations with partial bid, minimum, increment, and auto-extend

• Change attributes between rounds

• Multi-round negotiations with partial bid, minimum, increment, and auto-extend

• Change attributes between rounds

• Multi-attribute bidding

• Real-time bid monitoring

• Threaded discussions

• Multi-attribute bidding

• Real-time bid monitoring

• Threaded discussions

Collaborative Contract AuthoringImprove Accuracy and Productivity

• Automatically create contract based on quote details

• Compare revisions & communicate changes to multiple parties

• Flag non-standard clauses for additional legal approvals

• Attach supporting documents to contracts

• Produce PDF contracts with personalized look and feel

BuyerBuyerPO / Revisions PO / Revisions

ApproverApprover

LegalLegal SupplierSupplier

Purchase ContractPurchase Contract

Contract Creation Seamlessly Integrated into Sourcing ProcessContract Creation Seamlessly Integrated into Sourcing Process

T’s & C’sT’s & C’s QuoteQuote

v.2v.1

Efficient Self-Service RequisitioningAutomate and Control Employee Buying

Self-service orderingin a familiar webshopping interface

Smart Forms tostructure non-catalog orders

Configurable approvalflows with accountingenforcement

Self-service ordertracking and order changes

Change quantity, Change quantity, date, price or date, price or

cancel linecancel line

• Change request approvalChange request approval• Buyer review and PO updateBuyer review and PO update• Automatic supplier notificationAutomatic supplier notification

Retroactive Price ChangesEnsure Latest Agreement Prices are Utilized

Activate Activate MPA w/ MPA w/ Interim PriceInterim Price

Finalize Finalize PricingPricingfor MPAfor MPA

Issue Blanket Issue Blanket ReleaseRelease(or PO)(or PO)

Retro-Adjust Retro-Adjust BlanketBlanketReleaseReleasePricingPricing

IssueIssueAdjustment Adjustment Invoice*Invoice*

Adjust Adjust Accrued Accrued LiabilityLiability

AlreadyReceived

AlreadyInvoiced

• Enable retro-pricing of Master Purchase Agreements (Blanket Agreements)

• Automatically update orders with latest pricing (references modified agreement)

• Update prices on orders even if therehas been receiving or invoicing activity

• Enable retro-pricing of Master Purchase Agreements (Blanket Agreements)

• Automatically update orders with latest pricing (references modified agreement)

• Update prices on orders even if therehas been receiving or invoicing activity

*Requires Payables (Financials)

Multi-Tier Supplier CollaborationSynchronize Planning Across Multiple Tiers

Runplan

Demand‘vehicle’

Supplyforecast

Consensus forecast

Run plan

Forecast‘brake’

Supply commit

‘chassis’

Supply commit

‘brake’

Forecast‘chassis’

Tier NSupplierDealers

Tier 1SupplierOEMs

Provide Cost-Effective Visibility – Communicate requirements to all suppliers– Supports multiple communication methods

as lower cost alternatives to EDI (XML, etc.)

React Faster to Constraints– Get visibility to supplier capacity– Reallocate key components– Make alternate sourcing decisions

Reduce Non-Value Added Costs and Exception Overload

– User-configurable exceptions– Automated exception handling via workflow

Reduce Obsolescence – Understand impact of BOM changes to

your suppliers and customers

Inventory OptimizationReduce Inventory Levels to Support the Lean Enterprise

Safety stock with Postponement

Initial Safety Stock Levels

• Determine inventory levels across the entire supply chain

– End products– Subassemblies– Components

• Coordinate policies to reduce inventory across the entire supply chain, including customer consigned inventories

• Postpone value-add activities until actual demand pull

DC 1 /Customer

Consignment

Manufacturing /Assembly

RawMaterials

DC 2

AftermarketAftermarket

SuppliersSuppliers


Supply Chain Exception ManagementBridge Gap Between Collaborative Planning & Execution

Dealers / Consumers

You

Suppliers

PlanningPlanningRunRun

Next PlanningNext PlanningRunRun

Delayed Delayed outbound outbound shipmentshipment

Unplanned Unplanned spike in spike in

after-market after-market demanddemand

DelayedDelayedinboundinboundshipmentshipment

Dealer Dealer changes changes

orderorder

! !!!

Workflow-Driven Automated Exception Handling

Role-Based Alerts and Notifications

Real-Time Information Exchange

Execute on ExceptionsExecute on Exceptions

AdjustAdjustProductionProductionSequenceSequence

ToToAccommodateAccommodate

CustomCustomConfig-Config-urationsurations

Build Vehicles that Customers Want Minimize Inventories & Increase Customer Satisfaction

Customers /Customers /DealersDealers

ForecastForecast

UniquelyUniquelyConfiguredConfigured

VehiclesVehiclesConfigureConfigure

Create MfgCreate MfgBOM &BOM &RoutingRouting

Check Check Avail-Avail-abilityability(LTO*)(LTO*)

Global ATP and Pricing Production Plan

AssembleAssembleVehicleVehicle

Receive

Ship

Invoice

DCs

Automated:• Creation of Orders

and Schedules

• Creation of BOMs

• Routing Assignments

• Materials Allocation

WebWebConfigConfig

DealerDealerOrderOrder

*Three Scenarios:• MTS – Make to Stock

• LTO – Locate to Order

• BTO – Build to Order

MTS*

BTO*

PopularPopularConfig-Config-urationsurations

Comprehensive Manufacturing SolutionIntegrated

Intelligence

IntegratedIntelligence

CostCostAnalysisAnalysis

ProductivityProductivity

PlanningPlanning

• Planned Orders• Schedule Changes• Component

Substitutes• Resource

Substitutes

• Planned Orders• Schedule Changes• Component

Substitutes• Resource

Substitutes

ProductProductLifecycle MgmtLifecycle Mgmt

Warehousing / Warehousing / TransportationTransportation

ServiceService

AssetAssetMaintenanceMaintenance

VIN Genealogy TrackingVIN Genealogy Tracking

Quality ManagementQuality Management

DiscreteDiscrete FlowFlow

ProjectProject Lot-BasedLot-Based

BTOBTOMTSMTS

Mixed ModeMixed Mode Real-TimeWIP Visibility

Real-TimeWIP Visibility

Model ShopFloor

Model ShopFloor

AnalyzeAnalyze AdjustAdjustSampleSample

EnterpriseShop FloorEnterpriseShop Floor

MES APIs,Direct

Access

MES APIs,Direct

Access

CustomerCustomer Suppliers

SuppliersSuppliers

• Demand Schedules• Sequenced Release

Schedule• Optimized Schedules

via iLOG Toolkit• Configured Order

• Demand Schedules• Sequenced Release

Schedule• Optimized Schedules

via iLOG Toolkit• Configured Order

• Material Availability• Mfg Capacity• Schedules / Changes• Production Status• Ship Notices• Scheduled Pickup• Invoices / Payments

• Material Availability• Mfg Capacity• Schedules / Changes• Production Status• Ship Notices• Scheduled Pickup• Invoices / Payments

PartnerCollaboration

PartnerCollaboration

Support Lean Manufacturing Practices to Reduce Cycle Time and Waste

Demand(Orders/Forecasts)

Dealers

Suppliers

Production Line

Sequenced POs

Inventory

Bin 1Bin 1 Bin 2Bin 2

PaintPaint

Feeder Plant Feeder Line

SynchronizedProduction


Seat AssySeat Assy


Door AssyDoor Assy


AccessoriesAccessories

KanbanReplenishment

Flow ManufacturingBuild a Mix of Configurationson the Same Line

Facilitated OutsourcingIncrease Visibility Across

Outsourced OperationsOEMs Send:• Purchase Orders• Schedules• Bill of Materials (BOMs)• Operation Instructions• Drawings & Attachments

Suppliers Send:• Adv Ship Notifications (ASNs)• Quality Results• PO Acknowledgements

Auto Supplier PortalAuto Supplier Portal

Rich Product Catalog for Guided Selling Create Compelling Interactions via Dynamic Content

ProvideProvideimmediateimmediateaccess toaccess to

assistanceassistance

Easily Easily customizable,customizable,

targetedtargetedcontentcontent

ComprehensiveComprehensiveresearch research

capabilitiescapabilities

Intuitive Guided Intuitive Guided Selling ProcessSelling Process

Sophisticated Vehicle Configurator Allow Customer to Independently Define Configuration

Define configuration rules for any order

Allow customer to select base model

Recommend vehicles and accessories based on customer analysis

Price configured vehicles, includingpersonalized, applicable discounts

Verify vehicle location / availability and delivery time

Push configured vehicle specifications to dealers and place customers in contact with sales representatives

Vehicle Locator SystemEnable Customers to Locate Exact Configurations

Vehicle InventoryVehicle Inventory

• Provide real-time inventory visibility

• Verify vehicle location & availability

• Provide alternate configurations when exact vehicle is unavailable

• Provide real-time inventory visibility

• Verify vehicle location & availability

• Provide alternate configurations when exact vehicle is unavailable

Dealer Order TrackingDealer Order Tracking

• Enable customers to track shipped orders

• Notify customers when vehicle ships and arrives at dealership

• Alert customers about delivery status

• Enable customers to track shipped orders

• Notify customers when vehicle ships and arrives at dealership

• Alert customers about delivery status

Web StoreOrders

Capture Interest-Level DataUse Channel Data to Influence Marketing & Planning

SecureDatabaseSecure

Database

• Marketing, Sales, Dealers– Demographic information– Consumer preference– Targeted campaigns– Refined analysis

Capture Click Stream• From website, kiosk, or

dealer sales interface

• Vehicle / model preference

• Options selection& combinations

• Style & color popularity

Analyze & Report Data• Dynamic analyses (query nesting,

pivoting, multi-level drill down)

• Pre-integrated web portal and report builder

• Simple export to XML, HTML, Excel, text files

• Planning, Mfg, Suppliers– Demand for styles– Popular configurations– Increase forecast accuracy

• Product Development– Popular models & features– Innovations– Product differentiators

Disseminate Information

Data cleanse& de-duplicate

Store All Customer Data In One PlaceLeverage a Common Data Model

Build Customer Profiles by Relating all Relevant Information

Customers,

Suppliers,

Products, …

Customers,

Suppliers,

Products, …

• Contact Information

• Interaction History

• Sales Channel Usage

• Pending Quotes / Orders

• Order History

• Contract Terms

• Shipment Status

• Issue History

• Payment / Credit History

• Campaign Responses

• Contact Information

• Interaction History

• Sales Channel Usage

• Pending Quotes / Orders

• Order History

• Contract Terms

• Shipment Status

• Issue History

• Payment / Credit History

• Campaign Responses

Sense & Respond to Consumer Preference

Refine Interest-Level Data via Targeted Campaigns

Leverage Growing Data

ImprovePredictive

Capabilities

Optimize Incentive

Spend

Consumer data accumulates with time and experience

Better predictive capabilities increases likelihood consumer will purchase via incentive

More available data helps improve the quality of predictions

Past Consumer BehaviorPast Consumer Behavior

CollectCollectResponsesResponses

PredictPredictResponsesResponses

CreateCreatePersonalizedPersonalized

IncentivesIncentives

RunRunCampaignCampaign

Analyze &Analyze & Flow Data Flow Datato Planningto Planning

Analyze& ReportAnalyze& Report

CaptureInitial

Interest

CaptureInitial

Interest

Improve Data Quality and Planning Over Time (Best Vehicle Mix)

PlanFollow-Up

PlanFollow-Up

CaptureCaptureRefinedRefined

PreferencePreference

ExecuteTarget

Campaign

ExecuteTarget

Campaign

Track Costs to Revenue GenerationMeasure Performance, Rigorously Rationalize Spending

Create & LaunchCreate & Launch Campaign Campaign

AA GenerateGenerateInterestInterest

AA PursuePursueOpportunityOpportunity

AA

SettleSettleClaimsClaims

AA

Map campaign activities and spend to revenueMap campaign activities and spend to revenue

AnalyzeAnalyzeResultsResults

AATrackTrackSalesSales

AA

ActivityIdentifier

AA

Integrated Trade Management

Increase Promotional ROI

Lower Claim Costs

Control Promotional Liability Risks

Budget Managemen

t

Budget Managemen

t

Trade Promotion Management

Trade Promotion Management

Claims Managemen

t

Claims Managemen

t

PerformanceMonitoringPerformanceMonitoring

Products

Customers

Promotions

Claims

• General Ledger

• Inventory Mgmt

• General Ledger

• Inventory Mgmt• Order Mgmt

• Advanced Pricing

• Order Mgmt

• Advanced Pricing• Marketing

• Partner Mgmt

• Marketing

• Partner Mgmt• Receivables

• Payables

• Receivables

• Payables

Marketing Sales FinanceSupply Chain

CommonCommonInformationInformationRepositoryRepository

CommonCommonInformationInformationRepositoryRepository

ExecuteExecuteMonitorMonitor

SettleSettle

PlanPlan

AnalyzeAnalyze

• Create budgets

• Allocate budgetsto saleshierarchy

• Track expensesand accruals

• Analyze ROI andsell-thru effect

• Create offers

• Validatedealereligibility

• Approve &settle claims

• Updatefinancials

Enterprise Integration

Inputs

Stakeholders

Incentive Management FlowGet Dealerships to Participate in Your Campaigns

Establish Establish campaign campaign objectivesobjectives

LaunchLaunchincentive incentive

campaigncampaign

Qualify / grade /Qualify / grade /route leadsroute leads


Agree on leadAgree on leadfulfillmentfulfillment

Review /Review /accept optyaccept opty

Place or fill Place or fill order & order & submit claimsubmit claim

Ship itemsShip items& pay claims& pay claims

OEMOEM Develop, execute and manage dealer-specific incentive campaigns

Reduce potential lost sales by tracking status of opportunity to fulfillment

Continuously measure incentive campaign effectiveness & performance

Increase dealer participation via faster resolution of claims

Work / closeWork / closeopportunityopportunity


• Create closed-loop marketing plans integrated withincentive compensation

• Monitor success and make mid-campaign changes• Evaluate purpose and impact of all trade funding

• Create closed-loop marketing plans integrated withincentive compensation

• Monitor success and make mid-campaign changes• Evaluate purpose and impact of all trade funding

Promotions

Drive Better Results

Promotions

Drive Better Results

• Consolidate historical data• Validate OEM and dealership promotions• Shorten time to research, validate and settle all

deductions, charge backs, and claims

• Consolidate historical data• Validate OEM and dealership promotions• Shorten time to research, validate and settle all

deductions, charge backs, and claims

Claims

Reduce Costs

Claims

Reduce Costs

• Use budget mgmt to gain complete funds visibility• Control allocation and eligibility of all promotions

(including marketing budgets)• See at-a-glance all the current and potential liabilities

• Use budget mgmt to gain complete funds visibility• Control allocation and eligibility of all promotions

(including marketing budgets)• See at-a-glance all the current and potential liabilities

Liabilities

Predict and AvoidTrade Expenses

Liabilities

Predict and AvoidTrade Expenses

Impact Your Bottom LineImprove Promotions and Reduce Expenses


Business Intelligence

Corporate Governance

Business Intelligence

Corporate Governance

Integrated ThroughoutIntegrated Throughout

Entire Offering…Entire Offering…

and

Deliver Daily Business IntelligenceReal-Time Access to Complete Business Information

– Objective: Set institutional targets – Fact: Provide performance-based metrics– Exception: Continuously evaluate performance

– Objective: Set institutional targets – Fact: Provide performance-based metrics– Exception: Continuously evaluate performance

Manage By…

How can I best adjust to planning exceptions?

How are supplier deliveries impacting on-time delivery capability?

What are the schedule & budget impacts of design changes?

How do my production costs this period compare with the prior period?

How should I allocate production resources to meet variable demand?

Business Intelligence: Timely, Accurate, Relevant

• Daily updates on key performance indicators

• Actionable infoon cost savingsand incremental revenue opportunities

• Role-based views:- Product Development- Project Management- Planning- Purchasing- Manufacturing- Order Management- Warehouse Mgmt

LinksLinks

ReportsReports

Real-TimeReal-TimeResultsResults

GraphsGraphs

Flexible Flexible Time PeriodsTime Periods

Flexible Flexible ComparisonsComparisons

PerformancePerformanceMeasuresMeasures

Corporate GovernanceA heightened business focus on accuracy in reporting to investors A heightened business focus on accuracy in reporting to investors

brought on by recent fraudulent practices of several major corporationsbrought on by recent fraudulent practices of several major corporations

Oracle Helps Drive Compliancethrough Visibility, Control, and Efficiency

• Senior mgmt personal liability for financial result accuracy

• Senior mgmt and outside auditor attestation to the effectiveness of internal controls

• Accelerated SEC filing deadlines

Sarbanes Oxley Act (SOX) EU Anti-Fraud Directive (Mar 2004)

• Collective Board liability for financial result accuracy

• Senior mgmt and outside auditor attestation to the effectiveness of internal controls

• Select Corporate Governance Code

For all U.S. companies and companies issuing securities in the U.S.

For all E.U. companies and companies issuing securities in Europe

Corporate Governance:Visibility, Control, Efficiency

Automate Processes and Extend to Customers & Suppliers

YourCompany

YourCompany

Customers& SuppliersCustomers& Suppliers

• Identify issues early

• Enable real-time information access & performance mgmt

• Consolidate global financials

• Unify corporate reporting

• Consolidate and reconcile information rapidly

• Automate business processes and broaden use of self-service

• Simplify IT infrastructure

• Leverage best practices from different groups / regions

Visibility

Efficiency

Provide Single Source of the Truth Centrally Manage Policies and Procedures

• Integrate and centralizebusiness operations

• Document processesand support compliance

• View, test and certifyinternal controls

• Manage corporatecommunications

Control

Orders

Invoices

Payments

Requisitions


All Built on Leading Technology

DatabaseServer

ApplicationServer

Oracle Automotive OEM Solutions

Enable Collaborative Vehicle DevelopmentEnable Collaborative Vehicle Development

Source and Procure Globally for Best ValueSource and Procure

Globally for Best Value



Sense and Respond to Customer DemandSense and Respond to Customer Demand

Provide TargetedDealer IncentivesProvide TargetedDealer Incentives

…Integrated Business Intelligence & Corporate Governance

Collaborative design, integrated BOM, resource & knowledge mgmtCollaborative design, integrated BOM, resource & knowledge mgmt

Unified Internet sourcing tools, procurement contracts, requisition-to-payment automation w/ retro-pricing

Unified Internet sourcing tools, procurement contracts, requisition-to-payment automation w/ retro-pricing

Collaborative planning integrated with mixed mode manufacturing – discrete, flow, and outsourced mfg

Collaborative planning integrated with mixed mode manufacturing – discrete, flow, and outsourced mfg

Online vehicle configuration, pricing,& locating service; web and campaign analysis for improved planning

Online vehicle configuration, pricing,& locating service; web and campaign analysis for improved planning

Integrated trade management for dealer-specific incentive campaignsIntegrated trade management for dealer-specific incentive campaigns

Ch

all

en

ge

sC

ha

lle

ng

es

Services:Services: Consulting, IT Outsourcing, Education, Support Consulting, IT Outsourcing, Education, Support

IT Infrastructure:IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite

Enterprise Infrastructure:Enterprise Infrastructure: Financials, Human Resources, Projects Financials, Human Resources, Projects

Dri

ve

rsD

riv

ers

Ora

cle

En

ab

lers

Ora

cle

En

ab

lers


Product Lifecycle MgmtProduct Lifecycle MgmtProduct Data MgmtProduct Data MgmtCADView-3DCADView-3DConfiguratorConfiguratorSourcingSourcingProject ManagementProject ManagementProj Portfolio AnalysisProj Portfolio AnalysisProject CollaborationProject CollaborationProj Resource MgmtProj Resource Mgmt

• Inability to involve partners early during design process

• Globally dispersed R&D resources

• Inability to involve partners early during design process

• Globally dispersed R&D resources

Footprint: Automotive - OEM

Trade ManagementTrade ManagementMarketingMarketingTrade ManagementTrade ManagementAdvanced PricingAdvanced PricingOrder ManagementOrder ManagementFinancialsFinancials

• Dependence on tiered sales channels (e.g. distributors, dealerships, e-tailers)

• Dependence on tiered sales channels (e.g. distributors, dealerships, e-tailers)

• Low conversion of browsers to buyers

• OEMs spend up to 33% of revenues in incentives

• Low conversion of browsers to buyers

• OEMs spend up to 33% of revenues in incentives

Provide TargetedDealer IncentivesProvide TargetedDealer Incentives

Demand CaptureDemand CaptureiStoreiStoreConfiguratorConfiguratorOrder ManagementOrder ManagementInventory Mgmt Inventory Mgmt Global Ord. PromisingGlobal Ord. Promising

Data Mgmt & AnalysisData Mgmt & AnalysisCust Data Hub / SpokeCust Data Hub / SpokeCust Data LibrarianCust Data LibrarianDiscovererDiscovererMarketingMarketing

• Understand consumers’ needs and desires to improve alignment of supply and demand

• Understand consumers’ needs and desires to improve alignment of supply and demand

• Currently only 0.01% of demand signals are captured & used

• Decreasing brand loyalty

• Currently only 0.01% of demand signals are captured & used

• Decreasing brand loyalty

Sense and Respondto Customer DemandSense and Respondto Customer Demand

PlanningPlanningCollab PlanningCollab PlanningDemand PlanningDemand PlanningAdv SC PlanningAdv SC PlanningInventory OptimizationInventory Optimization

Production / AssemblyProduction / AssemblyMfg Scheduling Mfg Scheduling Discrete MfgDiscrete MfgFlow MfgFlow MfgiSupplier PortaliSupplier PortalInventory MgmtInventory MgmtEnterprise Asset MgmtEnterprise Asset Mgmt

• Inflexible mfg operations (60+ days for custom vehicles)

• Global excess assembly capacity

• Inflexible mfg operations (60+ days for custom vehicles)

• Global excess assembly capacity



ProcurementProcurementSourcingSourcingPO ContractsPO ContractsiProcurementiProcurementPurchasingPurchasingServices ProcurementServices ProcurementiSupplier PortaliSupplier PortalPayables (Financials)Payables (Financials)

• Race to reconfigure supply chain to dramatically reduce vehicle order cycle times

• Race to reconfigure supply chain to dramatically reduce vehicle order cycle times

• Poor visibility into global operations

• Disparate legacy purchasing systems

• Poor visibility into global operations

• Disparate legacy purchasing systems



Corporate Governance:Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearning Internal Controls Manager, Financials, Tutor, iLearning

Performance Management:Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting

• Downward consumer price pressure

• Increasing demand for custom vehicles with high volume mfg

• Downward consumer price pressure

• Increasing demand for custom vehicles with high volume mfg

• Best-in-class OEM platform dev is 1.5 yrs (most take 3-4 yrs)

• Consumers plagued by vehicle recalls

• Best-in-class OEM platform dev is 1.5 yrs (most take 3-4 yrs)

• Consumers plagued by vehicle recalls

Automotive Capabilities

• Direct Ship from WIP

• Flow Sequencing

• Enhanced Blanket Orders and Releases

• Global Purchase Agreements

• Consigned Inventory

• Supplier Change Orders & Order Acknowledgments

• Product Data Management

• Integrated Maintenance and Production Planning

• Multiple Instantiation for Configurations at Quote/Sale

• Direct Ship from WIP

• Flow Sequencing

• Enhanced Blanket Orders and Releases

• Global Purchase Agreements

• Consigned Inventory

• Supplier Change Orders & Order Acknowledgments

• Product Data Management

• Integrated Maintenance and Production Planning

• Multiple Instantiation for Configurations at Quote/Sale

Base Differentiators…Base Differentiators…

• Flow Manufacturing

• Release and Cumulative Management

• Product/Vehicle Configuration

• Container Management

• Warehouse Management

• Collaborative Planning

• Supply Chain Exception Mgmt

• Inventory Postponement and Optimization

• Supplier Collaboration & VMI

• Supplier Scheduling

• Internet Based Sourcing

• Flow Manufacturing

• Release and Cumulative Management

• Product/Vehicle Configuration

• Container Management

• Warehouse Management

• Collaborative Planning

• Supply Chain Exception Mgmt

• Inventory Postponement and Optimization

• Supplier Collaboration & VMI

• Supplier Scheduling

• Internet Based Sourcing

New in 11i.10…New in 11i.10…

• Automated Retro-Pricing

• Enhanced Retro-Billing

• Flow Line / Supplier Synchronization

• Customer Consigned Inventory

• Partner Integration for Global Trade Management

• Transportation Planning

• Configurator Effectivity Dates

• Single Row Self-Service Entry of Quality Results

• Procurement Contracts

• Product Data Hub

• Create / View CAD-Assembly Structure

• Project Portfolio Analysis

• Enhanced Service

• Automated Retro-Pricing

• Enhanced Retro-Billing

• Flow Line / Supplier Synchronization

• Customer Consigned Inventory

• Partner Integration for Global Trade Management

• Transportation Planning

• Configurator Effectivity Dates

• Single Row Self-Service Entry of Quality Results

• Procurement Contracts

• Product Data Hub

• Create / View CAD-Assembly Structure

• Project Portfolio Analysis

• Enhanced Service

Evolution of Oracle Applications in AutomotiveEvolution of Oracle Applications in Automotive

New in 11i.9…New in 11i.9…

Lower Total Cost of Ownership (TCO)Run on a Single Global Instance

Consolidate Data Centersand Databases

E-Business On Demand

Low Cost Linux Hardware

App Admin

DB/AS Admin

Sys Admin

HW Admin

App Admin

DB/AS Admin

Sys Admin

HW Admin

Production Midtiers 100% Linux

Production DB RAC Cluster (Unix)

Demo Environments 100% Linux

Development 100% Linux

Outsourced Customers 70% Linux

Production Midtiers 100% Linux

Production DB RAC Cluster (Unix)

Demo Environments 100% Linux

Development 100% Linux

Outsourced Customers 70% Linux

Oracle’s Experience with LinuxOracle’s Experience with Linux

3x Faster, 5x CheaperEasy to Automate en MassHighly Reliable

Needs:Needs:Roles:Roles:OracleOracle

Manages:Manages:

50% Lower Cost50% Lower Cost

50% Better Svc50% Better Svc

Core CompetenceCore Competence

Predictable CostPredictable Cost

YouYouManage:Manage:

AvailabilityAvailability

SecuritySecurity

PerformancPerformancee

ChangeChange

ProblemsProblems

Standardized Open Integration Platform

• Business Events Infrastructure

• Industry Standard Protocols

• Centralized Integration Repository

Simplify B2B Integration, Application Connectivity,

and Process Management

Customers,Customers,

Suppliers,Suppliers,

Products, …Products, …


Lower Total Cost of Ownership Run on a Single Global Instance

30 Languages

Multiple Currencies

Customers in 100+ Countries

All Languages Installable in Same Unicode Instance

Support for Statutory and Customary Local Requirements

Support Global Operations

CustomerCustomerCase StudiesCase Studies


Oracle Commitment to AutomotiveApplications & Functionality for Your Specific Needs

Flow Mfg

Procurement& Sourcing

Supplier ReleaseManagement

Supply Chain Exchange

Advance Planning & Scheduling

High VolumeConfigurator

Warehouse Management with Mobile RF

Asset MgmtTransportationManagement

PLM Suite

Supplier Portal

19981998 19991999 20002000 20012001 20022002 200320032004200420032003

TransportationPlanning

$2.5B automobile manufacturer with over 20,000 employees– Fourth largest auto manufacturer in China with 400,000 vehicles

produced and exported to more than 20 countries (2003)– 28 distribution centers supporting 200 sales & 600 distributors in China

Live on 11i – Discrete Manufacturing, Inventory Management, Order Management,

Procurement, Financials– Increased visibility, tracking, and reporting of operational & financial data

Saved $23M through better inventory management Improved production capacity by 25% Recovered Oracle investment in 4.5 months

Saved $23M through better inventory management Improved production capacity by 25% Recovered Oracle investment in 4.5 months

Chang AnAuto Group

“Not only did our Oracle solution bring fiscal savings to ChangAn, but also the perception of transparent and professional management, which I think is more influential over the long term.” -- Ma Jun, Deputy President

3.5 million visits per month, 1500 leads per day

Over 1 million vehicle configurations available

3.5 million visits per month, 1500 leads per day

Over 1 million vehicle configurations available

$186B world leader in automobile manufacturing– World’s largest provider of transportation products and related services– Sells products in more than 200 countries– Manufacturing operations in 140 facilities in 50 countries

Chose Oracle over SAP, Baan, Selectica, i2, Trilogy, and Firepond

Live on Configurator 11i – Performance – exceeds target of 300 transactions per second– Deployed in 42 countries with 97,000 unique visits per day

“With Oracle Configurator, we have a robust tool that has been able to handle a lot of diversity, including vehicle configurations from around the world.”

-- Cherri Musser, CIO Supply Chain


Source and Procure Globally for Best ValueSource and Procure Globally for Best Value

Enable Lean, Flexible Manufacturing EnvironmentsEnable Lean, Flexible Manufacturing Environments

Sense and Respond to Customer DemandSense and Respond to Customer Demand

Provide Targeted Dealer IncentivesProvide Targeted Dealer Incentives

Oracle Automotive OEM Solutions

Information Age Applications

Oracle Industry Solutions Automotive OEMs Information Age Applications.

Documents

Transcript of Oracle Industry Solutions Automotive OEMs Information Age Applications.