Transcript Automotive Industry Story

Oracle Industry Solutions
Automotive OEMs
<Name>
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Information Age Applications
The Automotive Value Chain
Suppliers
Tier N Suppliers
OEMs
Tier 1 Suppliers and
Sub-assemblers
Automobile & Trucks
Assemblers (OEMs)
Distribution
Hubs/Centers
System
Integrators
Post Production
Assembly
Retail
Dealerships
Automotive OEM Drivers
Product Innovation
Efficiency & Productivity
It takes 3 years on average
to develop a new platform
Currently, custom vehicles
take 60+ days to produce
Cost Reduction
Product Quality
OEMs spend $25B+
in incentives…
Vehicle recalls continue
to plague consumers
Revenue Management
Customer Retention
…to convert $74B of stagnant
inventory into sales revenues
Increasingly consumers expect
treatment as “market of one”
A Need for Change
Leading Business Trends
• 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 Change
Extend Lean Initiatives Across the Enterprise
Sales & Mktg
Sales & Operational
Planning
Finance
Common Areas of Waste
Engineering
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•
•
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Poor Quality & Excess WIP
High Material & Supply Costs
Lengthy ECO Approval Process
Error Prone Order Processing
Supply
Management
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Incorrect Resource Dispatching
Conflicting Demand Signals
Duplicate & Erroneous Data
Isolated Departmental Systems
Production
Information
Technology
Continually Improve Quality, Cost and Cycle Time
Service
Oracle in Automotive
Did 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 run
Oracle applications
• 33 of the top 39 automotive manufacturers on Industry Week's
2004 manufacturing companies run Oracle apps
Oracle in Automotive
Did You Know?
• 10 of the top 10 motor vehicle and parts companies on
Fortune 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 manufacturers
on Reuters run Oracle applications
• 9 of the top 10 largest auto parts manufacturers on Reuters
run Oracle applications
• 19 of the top 20 OEMs from Automotive News 2004 run
Oracle applications
• 21 of the top 40 top Global Suppliers from Automotive News
2004 run Oracle applications
What Customers are Achieving…
Oracle applications drive many core functions within the OEMs:
• GM – Online vehicle configuration • Honda Motorcycle – Product dev’t
• Nissan America – Warranty mgmt • Fiat – HR & financials
• Subaru – Financials & order mgmt • ChangAn (China) – Manufacturing
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:
• Delphi
• Cummins (13 sites)
• Eaton (22)
• ArvinMeritor (12)
• Dana (9)
• American Axle
100% of the Top 20 Automotive Companies Use Oracle
A Few Oracle Auto OEM Customers…
Oracle E-Business Suite
Built on a Unified Information Architecture
• Common data model
Develop
Contracts
Projects
HR
enables a single source
of truth
Market
Sell
Order
Customers,
Suppliers,
Finance
Plan
Products, …
Maintain
Procure
• Comprehensive suite of
applications designed to
work together
• Robust set of integration
services based on open
standards
• Modular deployment
by business flow
Service
Make
Fulfill
• Single global instance
implementations
Tailored for Automotive OEMs
Support for Key Processes
Intelligence
Collaborative
Planning &
Procurement
Development
Manufacturing
Technology
Customer
Demand
Capture
Dealer
Incentive
Management
Oracle Automotive
OEM Solutions
Intelligence
Collaborative
Development
Procurement
Planning &
Manufacturing
Customer
Demand
Capture
Dealer
Incentive
Management
Technology
 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
Product Lifecycle Management
Collaborate and Make Profitable Choices
Internal
Portfolio Management
Engineering Manufacturing
Concept
Sales & Mktg
Purchasing
Specifications
Drawings
Schedules
Issues
Ideas
Service
Finance
External
Suppliers
Customers
Changes
Retire
C
o
Design
l
l
a Maintenance
Product
b
Data
Prototype
o
& Test
Repository
r
Volume
a
Production
t
i
Release
o
Ramp-up
n
Product Intelligence
N
e
w
P
r
o
d
u
c
t
I
n
t
r
o
Phase-Gate
Control
Design for SC
& Compliance
BOM Mgmt
& Release
Component
Sourcing
Sales
Configuration
Issue/Change
Management
Utilize a Product Data Hub
Achieve Complete Product Rationalization
Design &
Develop
Plan &
Manufacture
Engr
BOM
Mfg
BOM
Product
Data
Repository
Market, Sell,
Fulfill
Sales
Service &
Maintain
As Maintained
BOM
*Bill of Materials
 Capture all product structures
and configurations in a single
location
BOM
Single
Version
of Truth
 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 evolve
through lifecycle
Search and Find the Best Component
Increase Component Reuse Through Advanced Search
Browse Category
Hierarchy
Category
Search
Search Components by
Specification Values
(and compare search results)
Attributes
Choose Best Fitting
Component
Attribute
Values
Best
Component
Share CAD Designs
Collaborate Through a Secure, Common Web Portal
• Streaming-Based CAD View & Mark-up
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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
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File sharing
Desktop sharing
Application sharing
Co-browsing
White boarding
Control the Product Change Process
Workflow Driven Process Automation
Create
Change
Request
(ECR)
ID Issue
Assign
& Notify
Assess
Impact
Review
Cost
Schedule
Engineer
Alerts &
Notifications
Dispositions
Workflow Driven
Implement
Change
Org 1, Org 2, …
Test &
Approve
QA / Engr
Review
Create
Work Pkg
Create
Change
Order
(ECO)
Engineer
 User-Defined Change Types
 Streamline Review and Approvals
 Facilitate Multi-Company Collaboration
Approve
or Reject
Consistent, Timely Info to Stakeholders
Obtain Personalized, Secure Access Anywhere, Anytime
Project Managers
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•
•
•
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Project Management Plans
Actual Effort and Costs
Issues and Changes
Documents
Customer Specifications
Global
Project
Repository
• Consistent Product & Project Info
–
–
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Information entered once
Operational & acct views by role
Attribute-based searches
• Timely Information
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Roles
Information Inputs
Daily or weekly updates
Information entered via self-service,
batch entry and open interfaces
Team Members
Executive Mgmt
Customer / Sponsor
• Secure, Role-Based Access
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Functions secured by role on
each project
Built-in security protocols
• Multi-Method Access
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Internet browser-based UI
Workflow driven e-mail
Productivity tools (MS Project / Excel)
Oracle Automotive
OEM Solutions
Intelligence
Collaborative
Development
Procurement
Planning &
Manufacturing
Customer
Demand
Capture
Dealer
Incentive
Management
Technology
 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
Advanced Procurement Solution
Address Direct / Indirect Materials and Service Needs
Demand
Collection
Reduce Spend on Goods and Services
Spend
Analysis
Category
Management
Online
Sourcing
Indirect
& MRO
Orders
Streamline Procurement Processes
Direct
Materials
Approval
Routing
Engineered
Products
Touchless
Buying
Supplier
Portal
Logistics
Automated
Payment
Supplier
Network
Budget-Based
Procurement
Contract
Management
Services
Supplier
Collaboration
Settlement
Supplier
Performance
Enforce Policy Compliance
Profile
Management
Complete Procure-to-Pay Automation
Integrate Sourcing through Execution
Sourcing
Strategy
Identify & Qualify
Vendors
Create & Approve
Requisition
Receive Electronic
Invoice
Evaluate
Bids
Create
Purchase Order
Pay Supplier
(EFT)
Author & Negotiate
Contract or MPA*
Send Electronic
PO to Supplier
Analyze
Performance
Select Vendor
Receive Goods or
Services; Inspect
Adjust
Contracts
Purchasing
Execution
Add structure to strategic activities & execute routine transactions automatically
*Master Purchase Agreement
Support Any Negotiation Type
Flexible Methods Address YOUR Sourcing Strategy
RFQ / RFP /
RFI / Quote
Auction /
Bid
Offer /
Counter Offer
Good or
Service
Complex,
Engineer to Order
Well-Defined
Attributes
Standard
Commodities
Example
Buildings, Equipment
Furniture, Components
Paper, Pens, Fasteners
Duration
Days or Weeks
Hours
Varies
Focus
Meet Need for
Many Attribute
Negotiate
Best Price
Best Terms:
Price, Delivery, Payment
• Multi-round negotiations with partial bid,
minimum, increment, and auto-extend
• Change attributes between rounds
• Multi-attribute bidding
• Real-time bid monitoring
• Threaded discussions
Collaborative Contract Authoring
Improve Accuracy and Productivity
Legal
T’s & C’s Quote
Supplier
• Automatically create contract
based on quote details
• Compare revisions &
communicate changes to
multiple parties
• Flag non-standard clauses for
Buyer
PO / Revisions
additional legal approvals
Approver
Purchase
Contract
• Attach supporting documents
to contracts
• Produce PDF contracts with
personalized look and feel
Contract Creation Seamlessly Integrated into Sourcing Process
Efficient Self-Service Requisitioning
Automate and Control Employee Buying
 Self-service ordering
in a familiar web
shopping interface
• Change request approval
• Buyer review and PO update
• Automatic supplier notification
Change quantity,
date, price or
cancel line
 Smart Forms to
structure noncatalog orders
 Configurable approval
flows with accounting
enforcement
 Self-service order
tracking and order
changes
Retroactive Price Changes
Ensure Latest Agreement Prices are Utilized
• Enable retro-pricing of Master Purchase
Agreements (Blanket Agreements)
• Automatically update orders with latest
Activate
MPA w/
Interim Price
pricing (references modified agreement)
Issue Blanket
Release
(or PO)
Finalize
Pricing
for MPA
• Update prices on orders even if there
has been receiving or invoicing activity
Retro-Adjust
Blanket
Release
Pricing
Adjust
Accrued
Liability
Issue
Adjustment
Invoice*
*Requires Payables (Financials)
Already
Received
Already
Invoiced
Oracle Automotive
OEM Solutions
Intelligence
Collaborative
Development
Procurement
Planning &
Manufacturing
Customer
Demand
Capture
Dealer
Incentive
Management
Technology
 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
Multi-Tier Supplier Collaboration
Synchronize Planning Across Multiple Tiers
 Provide Cost-Effective Visibility
Demand
‘vehicle’
Run
plan
Tier 1
Supplier
OEMs
Dealers
Tier N
Supplier
–
–
 React Faster to Constraints
Consensus
forecast
–
–
Supply
forecast
Communicate requirements to all suppliers
Supports multiple communication methods
as lower cost alternatives to EDI (XML, etc.)
–
Forecast
‘chassis’
 Reduce Non-Value Added Costs
and Exception Overload
Run plan
Supply commit
–
‘chassis’
–
Supply commit
‘brake’
Forecast
‘brake’
Get visibility to supplier capacity
Reallocate key components
Make alternate sourcing decisions
User-configurable exceptions
Automated exception handling via workflow
 Reduce Obsolescence
–
Understand impact of BOM changes to
your suppliers and customers
Inventory Optimization
Reduce Inventory Levels to Support the Lean Enterprise
Dealerships
Aftermarket
• Determine inventory
levels across the entire
supply chain
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DC 1 /
Customer
Consignment
DC 2
• Coordinate policies to
Manufacturing /
Assembly
•
Raw
Materials
Suppliers
End products
Subassemblies
Components
reduce inventory across
the entire supply chain,
including customer
consigned inventories
Postpone value-add
activities until actual
demand pull
Initial Safety
Stock Levels
Safety stock with
Postponement
Supply Chain Exception Management
Bridge Gap Between Collaborative Planning & Execution
You
Planning
Run
Next Planning
Run
Execute on Exceptions
!
Dealers /
Consumers
!
!
!
Suppliers
Delayed
outbound
shipment
Delayed
inbound
shipment
Dealer
changes
order
Unplanned
spike in
after-market
demand
 Workflow-Driven Automated Exception Handling
 Role-Based Alerts and Notifications
 Real-Time Information Exchange
Build Vehicles that Customers Want
Minimize Inventories & Increase Customer Satisfaction
Dealer
Order
Web
Config
Customers /
Dealers
Forecast
Uniquely
Configured
Vehicles
Popular
Configurations
MTS*
Check
Availability
(LTO*)
Configure
Global ATP and Pricing
BTO*
Create Mfg
BOM &
Routing
Adjust
Production
Sequence
To
Accommodate
Custom
Configurations
Assemble
Vehicle
Production Plan
Receive
DCs
Automated:
Ship
• Creation of Orders
•
•
•
and Schedules
Creation of BOMs
Routing Assignments
Materials Allocation
*Three Scenarios:
Invoice
• MTS – Make to Stock
• LTO – Locate to Order
• BTO – Build to Order
Comprehensive Manufacturing Solution
Integrated
Intelligence
Cost
Analysis
Planning
Productivity
Discrete
Flow
Model
Shop
Floor
BTO
MTS
• Planned Orders
• Schedule Changes
• Component
Substitutes
• Resource
Substitutes
Project
Sample
Product
Lifecycle Mgmt
Real-Time
WIP Visibility
Mixed Mode
Warehousing /
Transportation
Suppliers
Lot-Based
Analyze
Asset
Maintenance
Adjust
Quality Management
Service
VIN Genealogy Tracking
• Demand Schedules
• Sequenced Release
Schedule
• Optimized Schedules
via iLOG Toolkit
• Configured Order
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•
•
•
•
•
MES APIs,
Direct
Access
Partner
Collaboration
Customer
Enterprise
Shop Floor
Suppliers
Material Availability
Mfg Capacity
Schedules / Changes
Production Status
Ship Notices
Scheduled Pickup
Invoices / Payments
Flow Manufacturing
Build a Mix of Configurations
on the Same Line
Dealers
Production Line
Sequenced
POs
Demand
(Orders/Forecasts)
Paint
Seat Assy
Door Assy
Accessories
Bin 1 Bin 2
Bin 1 Bin 2
Bin 1 Bin 2
Bin 1 Bin 2
Kanban
Replenishment
Inventory
Feeder Plant
Support Lean Manufacturing Practices
to Reduce Cycle Time and Waste
Feeder Line
Suppliers
Synchronized
Production
Facilitated Outsourcing
OEMs Send:
•
•
•
•
•
Purchase Orders
Schedules
Bill of Materials (BOMs)
Operation Instructions
Drawings & Attachments
Increase Visibility Across
Outsourced Operations
Auto Supplier Portal
Suppliers Send:
• Adv Ship Notifications (ASNs)
• Quality Results
• PO Acknowledgements
Oracle Automotive
OEM Solutions
Intelligence
Collaborative
Development
Procurement
Planning &
Manufacturing
Customer
Demand
Capture
Dealer
Incentive
Management
Technology
 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
Rich Product Catalog for Guided Selling
Create Compelling Interactions via Dynamic Content
Easily
customizable,
targeted
content
Comprehensive
research
capabilities
Provide
immediate
access to
assistance
Intuitive Guided
Selling 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, including
personalized, 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 System
Enable Customers to Locate Exact Configurations
Web Store
Orders
Vehicle Inventory
• Provide real-time
inventory visibility
• Verify vehicle location
& availability
• Provide alternate
configurations when
exact vehicle is
unavailable
Dealer Order Tracking
• Enable customers
to track shipped orders
• Notify customers when
vehicle ships and
arrives at dealership
• Alert customers about
delivery status
Capture Interest-Level Data
Use Channel Data to Influence Marketing & Planning
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
Data cleanse
& de-duplicate
Secure
Database
Disseminate Information
• Marketing, Sales, Dealers
– Demographic information
– Consumer preference
– Targeted campaigns
– Refined analysis
• Planning, Mfg, Suppliers
– Demand for styles
– Popular configurations
– Increase forecast accuracy
• Product Development
– Popular models & features
– Innovations
– Product differentiators
Store All Customer Data In One Place
Leverage a Common Data Model
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
Build Customer Profiles by Relating all Relevant Information
Sense & Respond to Consumer Preference
Refine Interest-Level Data via Targeted Campaigns
Capture
Initial
Interest
Analyze
& Report
Run
Campaign
Plan
Follow-Up
Execute
Capture
Analyze &
Target
Refined
Flow Data
Campaign Preference to Planning
Collect
Responses
Predict
Responses
Create
Personalized
Incentives
Past Consumer Behavior
Leverage
Growing Data
Consumer data
accumulates with
time and experience
Improve
Predictive
Capabilities
More available data
helps improve the
quality of predictions
Optimize
Incentive
Spend
Better predictive
capabilities increases
likelihood consumer will
purchase via incentive
Improve Data Quality and Planning Over Time (Best Vehicle Mix)
Track Costs to Revenue Generation
Measure Performance, Rigorously Rationalize Spending
Create & Launch A
Campaign
Track
Sales
A
Generate
Interest
A
Pursue
Opportunity
A
Settle
Claims
A
Analyze
Results
A
Map campaign activities and spend to revenue
A
Activity
Identifier
Oracle Automotive
OEM Solutions
Intelligence
Collaborative
Development
Procurement
Planning &
Manufacturing
Customer
Demand
Capture
Dealer
Incentive
Management
Technology
 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
Integrated Trade Management
Stakeholders
Marketing
Sales
Supply Chain
Finance
Inputs
Customers
Products
Promotions
Claims
Budget
Management
• Create budgets
• Allocate budgets
to sales
hierarchy
Settle
Performance
Monitoring
• Track expenses Monitor
and accruals
• Analyze ROI and
sell-thru effect
Plan
Trade Promotion
Management
• Create offers
• Validate
dealer
Analyze eligibility
Common
Information
Repository
Execute
Claims
Management
• Approve &
settle claims
• Update
financials
Enterprise Integration
• Receivables • General Ledger • Order Mgmt
• Marketing
• Payables
• Inventory Mgmt • Advanced Pricing • Partner Mgmt
 Increase
Promotional
ROI
 Lower Claim
Costs
 Control
Promotional
Liability Risks
Incentive Management Flow
Get Dealerships to Participate in Your Campaigns
OEM
Establish
campaign
objectives
Dealerships
Agree on lead
fulfillment
Launch
incentive
campaign
Qualify / grade /
route leads
Review /
accept opty
Work / close
opportunity
Ship items
& pay claims
Place or fill
order &
submit claim
 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
Impact Your Bottom Line
Improve Promotions and Reduce Expenses
Promotions
Drive
Better Results
Claims
Reduce Costs
Liabilities
Predict and Avoid
Trade Expenses
• Create closed-loop marketing plans integrated with
incentive compensation
• Monitor success and make mid-campaign changes
• Evaluate purpose and impact of all trade funding
• Consolidate historical data
• Validate OEM and dealership promotions
• Shorten time to research, validate and settle all
deductions, charge backs, and claims
• 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
Integrated Throughout
Entire Offering…
Business Intelligence
and
Corporate Governance
Deliver Daily Business Intelligence
Real-Time Access to Complete Business Information
What are the schedule
& budget impacts of design changes?
How do my production
How are supplier
costs this period compare with the prior period?
deliveries impacting on-time delivery capability?
How can I best adjust to planning
How should I allocate production
–
Manage By…
–
–
exceptions?
resources to meet variable demand?
Objective: Set institutional targets
Fact: Provide performance-based metrics
Exception: Continuously evaluate performance
Business Intelligence:
Timely, Accurate, Relevant
Flexible
Time Periods
Flexible
Comparisons
Real-Time
Results
Links
Performance
Measures
• Daily updates on key
performance
indicators
• Actionable info
on cost savings
and incremental
revenue
opportunities
• Role-based views:
-
Reports
Graphs
-
Product Development
Project Management
Planning
Purchasing
Manufacturing
Order Management
Warehouse Mgmt
Corporate Governance
A heightened business focus on accuracy in reporting to investors
brought on by recent fraudulent practices of several major corporations
Sarbanes Oxley Act (SOX)
EU Anti-Fraud Directive (Mar 2004)
• Senior mgmt personal liability for
financial result accuracy
• Collective Board liability for financial
result accuracy
• Senior mgmt and outside auditor
attestation to the effectiveness of
internal controls
• Senior mgmt and outside auditor
attestation to the effectiveness of
internal controls
• Accelerated SEC filing deadlines
• 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
Oracle Helps Drive Compliance
through Visibility, Control, and Efficiency
Corporate Governance:
Visibility, Control, Efficiency
Control
Visibility
• Identify issues early
• Enable real-time
• Integrate and centralize
business operations
• Document processes
and support compliance
• View, test and certify
internal controls
• Manage corporate
communications
information access &
performance mgmt
• Consolidate global
financials
• Unify corporate
reporting
Centrally Manage Policies and Procedures
Provide Single Source of the Truth
• Consolidate and reconcile
Efficiency
information rapidly
• Automate business processes
and broaden use of self-service
• Simplify IT infrastructure
• Leverage best practices from
different groups / regions
Your
Company
Orders
Invoices
Customers
& Suppliers
Payments
Requisitions
Automate Processes and Extend to Customers & Suppliers
All Built on Leading Technology
Database
Server
Application
Server
Oracle Automotive OEM Solutions
Collaborative design, integrated
BOM, resource & knowledge mgmt
Unified Internet sourcing tools,
procurement contracts, requisition-topayment automation w/ retro-pricing
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
Integrated trade management for
dealer-specific incentive campaigns
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
…Integrated Business Intelligence & Corporate Governance
Oracle Enablers
Challenges
Drivers
Footprint: Automotive - OEM
Enable Collaborative
Vehicle Development
Source and Procure
Globally for
Best Value
Enable Lean, Flexible
Manufacturing
Environments
Sense and Respond
to Customer Demand
• Best-in-class OEM
• Race to reconfigure
• Downward consumer
• Understand
platform dev is 1.5 yrs
(most take 3-4 yrs)
• Consumers plagued
by vehicle recalls
• Inability to involve
partners early during
design process
• Globally dispersed
supply chain to
dramatically reduce
vehicle order cycle
times
• Poor visibility into
global operations
• Disparate legacy
purchasing systems
R&D resources
Product Lifecycle Mgmt
Product Data Mgmt
CADView-3D
Configurator
Sourcing
Project Management
Proj Portfolio Analysis
Project Collaboration
Proj Resource Mgmt
price pressure
• Increasing demand
for custom vehicles
with high volume mfg
• Inflexible mfg
operations (60+ days
for custom vehicles)
• Global excess
assembly capacity
Procurement
Sourcing
PO Contracts
iProcurement
Purchasing
Services Procurement
iSupplier Portal
Payables (Financials)
Planning
Collab Planning
Demand Planning
Adv SC Planning
Inventory Optimization
Production / Assembly
Mfg Scheduling
Discrete Mfg
Flow Mfg
iSupplier Portal
Inventory Mgmt
Enterprise Asset Mgmt
consumers’ needs
and desires to
improve alignment of
supply and demand
• Currently only 0.01%
of demand signals
are captured & used
• Decreasing brand
loyalty
Demand Capture
iStore
Configurator
Order Management
Inventory Mgmt
Global Ord. Promising
Provide Targeted
Dealer Incentives
• 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
Trade Management
Marketing
Trade Management
Advanced Pricing
Order Management
Financials
Data Mgmt & Analysis
Cust Data Hub / Spoke
Cust Data Librarian
Discoverer
Marketing
Enterprise Infrastructure: Financials, Human Resources, Projects
Performance Management: E-Business Intelligence, Balanced Scorecard, Enterprise Planning & Budgeting
Corporate Governance: Internal Controls Manager, Financials, Tutor, iLearning
IT Infrastructure: Database Server, Applications Server, Systems Management, Development Tools, Collaboration Suite
Services: Consulting, IT Outsourcing, Education, Support
Automotive Capabilities
Evolution of Oracle Applications in Automotive
Base Differentiators…
New in 11i.9…
New in 11i.10…
• Flow Manufacturing
• Release and Cumulative
• Direct Ship from WIP
• Flow Sequencing
• Enhanced Blanket Orders
• Automated Retro-Pricing
• Enhanced Retro-Billing
• Flow Line / Supplier
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
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
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
Lower Total Cost of Ownership (TCO)
E-Business On Demand
Run on a Single Global Instance
Roles:
Needs:
App Admin
DB/AS Admin
Sys Admin
Consolidate Data Centers
and Databases
Low Cost Linux Hardware
HW Admin
Availability
Security
Performance
Change
Production Midtiers
100% Linux
Production DB
RAC Cluster (Unix)
Demo Environments
100% Linux
Development
100% Linux
Outsourced Customers
70% Linux
Oracle
Manages:
50% Lower Cost
50% Better Svc
Core Competence
Predictable Cost
Problems
Standardized Open Integration Platform
 3x Faster, 5x Cheaper
 Easy to Automate en Mass
 Highly Reliable
Oracle’s Experience with Linux
You
Manage:
• Business Events Infrastructure
• Industry Standard Protocols
• Centralized Integration Repository
Customers,
Suppliers,
Products, …
Simplify B2B Integration,
Application Connectivity,
and Process Management
Lower Total Cost of Ownership
Run on a Single Global Instance
Support Global Operations
 30 Languages
 Multiple Currencies
 Customers in 100+ Countries
 All Languages Installable in Same Unicode Instance
 Support for Statutory and Customary Local Requirements
Customer
Case Studies
Oracle Commitment to Automotive
Applications & Functionality for Your Specific Needs
Flow Mfg
Advance
Planning &
Scheduling
Supply
Chain
Exchange
1999
2000
1998
Procurement
& Sourcing
High Volume
Configurator
Asset Mgmt
2001
Supplier
Release
Management
Supplier Transportation
Portal
Management
2002
2003
Warehouse
PLM Suite
Management
with Mobile RF
2003
2004
Transportation
Planning
Chang An
Auto Group
 $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
“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
 Saved $23M through better inventory management
 Improved production capacity by 25%
 Recovered Oracle investment in 4.5 months
 $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
 3.5 million visits per month, 1500 leads per day
 Over 1 million vehicle configurations available
Oracle Automotive OEM Solutions
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
Information Age Applications