Weathering todays Crisis with Business Intelligenceon

Turbulent TimesCompetitionLower SpendingLoan DefaultsCost of FundsCapital ReductionStock Market CrashDecreasing MarginLoss of Confidence

Imperatives in Turbulent TimesConserve cash and tightly manage cash flowImprove control quickly identify sources of and reasons for financial and operational performance variancesReduce risk gain confidence in the numbers and in the ability to act decisivelyManage profitability - determine which parts of the business are profitable and unprofitableIncrease agility - respond quickly to market opportunitiesSurgically reduce spend and invest in projects with quick ROI

Integrated Management Process Help Weathering The CrisisMitigate RiskImprove Operational Grip and Cost ControlBuild Trust

Integrated Management Process Help Weathering The CrisisMitigate RiskImprove Operational Grip and Cost ControlBuild TrustBusiness Intelligence Gain Insight to take action

Business Intelligence Remains the #1 PrioritySource: CIO Insight, The Future of I.T.: What's on Tap for 2007 and Beyond, January 16, 2007the most important technology in 2007 is business intelligence

Major BI Challenges

Copyright 2008, Oracle and/or its affiliates. All rights reserved. *Challenges Span both IT and the Lines of Business

BUSINESSLack visibility and insight into performance of customers, products and key processesInability to quickly pinpoint leading and lagging parts of the businessLack single, consistent view of information across functionsTime wasted gathering information cycle time to pull data together

ITBacklog of report requests and need to provide rapid self-service access to intelligenceResource constraints inhibit ability to broaden BI deployment to meet demandComplex IT environments disparate data, applications, and integration challenges Reduce costs - do more with less, standardize tools

How Customers Address the ImperativesConserve cash and improve cash flowHighlight pending receipts and disbursements more accurately to cut further the amount and maturity on revolving credit required Identify late payers to target for more aggressive collectionsIdentify vendors who could be paid more slowly without harming operationsImprove ControlQuickly assess performance versus plan by product, customer, channel, geography or business unitAnalyze reasons for performance gaps across functionsManage ProfitabilityIdentify profitable and unprofitable products, promotions, sales channels, customersIdentify loss leaders that drive sales of other, more profitable products

Increase agility and respond quickly to market opportunitiesGet access to information in time to act decisivelyCapture best practicesEffectively reduce spend and invest in projects with quick ROITrack spend under a microscopeCut spend without mortgaging the futureLink management of financial and operational functionsAchieve one version of performance realityUnderstand the impact of changing conditions across the businessAvoid making decisions which optimize a silo but sub-optimize the businessHow Customers Address the Imperatives- continued

*Business Intelligence Drives Increased Effectiveness in Every Business FunctionService & Contact Center AnalyticsOptimize service processes, reduce costs, retain and grow customersSupply Chain & Procurement AnalyticsOptimize spend, overall supplier performance, and inventory levelsBut Few Organizations have Achieved Such Pervasive BI. Why?HR AnalyticsRetain talent, manage comp costs, increase productivitySales AnalyticsImprove pipeline visibility, forecast accuracy and sales effectivenessFinancial AnalyticsAlways understand financial condition and drivers of cost and profitabilityMarketing AnalyticsOptimize campaign execution, results, and ROI

CRMIVR Supply ChainFinancialHRWebCTICustomer Interaction SystemsOperational SystemsBI ApplicationSalesAnalyticsServiceAnalyticsMarketingAnalyticsSupplyChainAnalyticsFinanceAnalyticsWorkforceAnalyticsBI Application PlatformSenior ExecutivesManagersFront Line EmployeesPartnersEnterprise WarehouseBI ApplicationPre-built analytic applications for customer and enterprise insightIndustry-specific and role-based, incorporating best practicesProven business results, fastest time-to-value, and lowest TCO BI Application PlatformActionable and relevant insight for all usersNew levels of scale and performance for the largest enterprise deploymentsComplete, just-in-time intelligence from across enterprise sourcesProviding a new class of BI & Analytic capabilitiesETL & Business AdaptersOther Operational & Analytic SourcesOracle BI Application

Oracle BI ApplicationsMulti-Source Analytics with Single ArchitectureOther Operational & Analytic SourcesOracle BI Suite Enterprise EditionPrebuilt adapters:SalesMarketingOrder Management & FulfillmentSupply ChainFinancialsHuman ResourcesPipeline AnalysisTriangulated ForecastingSales Team EffectivenessUp-sell / Cross-sellCycle Time AnalysisLead ConversionEmployee ProductivityCompensation AnalysisHR Compliance ReportingWorkforce ProfileTurnover TrendsReturn on Human CapitalA/R & A/P AnalysisGL / Balance Sheet Analysis Customer & Product ProfitabilityP&L Analysis Expense ManagementCash Flow AnalysisSupplier PerformanceSpend AnalysisProcurement Cycle TimesInventory AvailabilityEmployee ExpensesBOM AnalysisOrder LinearityOrders vs. Available InventoryCycle Time AnalysisBacklog AnalysisFulfillment StatusCustomer ReceivablesCampaign ScorecardResponse RatesProduct PropensityLoyalty and AttritionMarket Basket AnalysisCampaign ROI

Pre-mapped metadata, including embedded best practice calculations and metrics for Financial, Executives and other Business Users.Presentation LayerLogical Business ModelPhysical Sources3Pre-built ETL to extract data from over 3,000 operational tables and load it into the DW, sourced from SAP, PSFT, Oracle EBS and other sources.

2A best practice library of over 360 pre-built metrics, 30 Intelligent Dashboards, 200+ Reports and several alerts for CFO, Finance Controller, Financial Analyst, AR/AP Managers and Executives4Analytics Components

Financial Analytics - Key Objectives and Questions by RoleRole-Based Best Practices Provide Relevant and Actionable Insight for EveryoneHow can I reduce the time it takes to generate periodic financial statements and reports?How can I get early notification of material events?How effectively are we managing our payables to our key suppliers?How is DSO being impacted by certain customers and by each receivables aging bucket?Optimizing Management of Financial PerformanceControllers and F&A ManagersWhich business units and product lines are enhancing company profitability and which are detracting from it?Are our profitability and balance sheet ratios improving relative to historical trends?How can I get early warnings about revenue misses so I can manage costs and still make earnings?How well are we meeting our financial goals and increasing shareholder value?Actionable Insight for Improving Shareholder ValueVP of Finance and CFOComplete Insight into Departmental Revenue and Cost Drivers Which customer segments are most profitable and why? What operating expenses are over budget?How do my divisions results compare to the previous quarter?How are my headcount / product costs tracking?Department Managers

Copyright 2008, Oracle and/or its affiliates. All rights reserved. *Align Actions with Best PracticesGuided & Conditional Navigation Helps Novice UsersEnables users to quickly navigate a standard path of analytical discovery specific to their function and roleEnhances usability and lowers learning curve for new usersAppears only when conditions are met and alerts users to potential out of ordinary conditions that require attentionGuides users to next logical step of analytical discoveryGUIDED NAVIGATIONCONDITIONAL NAVIGATION

Analytic Workflows Financial AnalyticsBusiness Objectives / IssuesGainInsightsTake ActionTarget collection efforts to reduce overdue balancesDrill toOverdue Invoice DetailWho are the Customers?How long is the underlying Overdue Balance pending?Is Overdue Balancestrending up?Is DSO on target?Maximize Cash FlowDrill to Detail

Oracle Financial AnalyticsComprehensive View of Financial Performance Payables Analytics Provides visibility into payments due to suppliers and expense line detail so managers can manage cash outflows and control expenses. When combined with Supply Chain Analytics, it allows full procurement analysis from Requisition to Check.Receivables Analytics Monitors collections processes to show what customers buy and how they pay, enabling managers to identify overdue balances and other receivables bottlenecks. When combined with Oracle Sales Analytics and Oracle Order Management & Fulfillment Analytics, it enables more efficient management of the entire Lead to Cash process.General Ledger & Profitability AnalyticsIncorporates detail-level general ledger transactions and cash flow analysis across locations, customers, products, sales territories, distribution channels, and business units.

Identifies the customers and transactions that are providing maximum profits by product, location, department, and geographic detail. When combined with Marketing Analytics, it enables analysis of Campaign ROI and assists in customer segmentation.

DASHBOARDS& REPORTSPrebuilt best practice libraryOne size does NOT fit allSUBJECT AREASMany metrics and dimensional attributes not surfaced by prebuilt dashboards and reportsPossibilities are endlessIncremental work to build tons more content from this foundationMore than just dashboards and reportsValue of BI Apps lies under the surface

Speeds Time to Value and Lowers TCOPre-built DW design, adapts to your EDWBuild from Scratch with Traditional BI ToolsOracle BI ApplicationsWeeks or MonthsBack-end ETL and MappingDW DesignDefine Metrics & DashboardsBack-end ETL and MappingDW DesignDefine Metrics & DashboardsTraining/Roll-outTraining/RolloutQuarters or YearsSource: Patricia Seybold Research, Gartner, Merrill Lynch, Oracle AnalysisPre-built business adapters for Oracle, PeopleSoft, Siebel, SAP, othersRole-based dashboards and thousands of pre-defined metricsEasy to use, easy to adaptFaster deploymentLower TCOAssured business value

Oracle KerberosiPlanetMSFT ADNovellCustom Others...Oracle Data Integrator (Sunopsis)Oracle Warehouse BuilderInformaticaAscentialOthers...Any JSR 168 PortalOracle Data Mining, SPSS, SASOracle EBS, Siebel, SAP, PeopleSoft, JD EdwardsExcel, Outlook,Lotus Notes...Oracle Enterprise Performance Management SystemOracle Business Intelligence FoundationPORTALSDATA MININGAPPLICATIONSDESKTOP TOOLSSECURITYDATA ACCESSDATA INTEGRATIONHot-PluggableWith Existing IT InvestmentsOracle RDBMSOracle OLAP OptionMicrosoft SQL ServerMicrosoft Analysis ServicesIBM DB2TeradataEssbaseSAP BWXML, Excel, Text

BI Applications - Business ContentOver 5,000 pre-defined assets

ApplicationDashboardsDashboard PagesReportsMetricsSales1433620555Marketing527124501Service815102465Contact Center51772448Finance430205360HR41676138Supply Chain & Order Mgmt.218157388Procurement & Spend214103161All Industry Apps441471117508Total8831725763524

Why Oracle BI Applications?Pre-built Data ETL Integration with Oracle JDE, Pre-designed DW for performance, pre-built data mapping for Oracle JDE data tablesPre-built Content Best practices KPIs, Dashboards, Reports, Alerts for roles based accountabilityAbility to drill down and drill through to Oracle JDEInherent user security management from Oracle JDEJDE Version upgrades is easy. BI upgrades automaticallyNot just monitoring, analysis is key to great business decisionsWith the BI foundation, easily extend the same business intelligence to non-Oracle data sources Faster Deployment, lower TCO and assured business value

Support for JDE E1 8.12 and 9.0Support for Full and Incremental Loads (based on last ETL run and last changed date on JDE E1 transaction)Support for multiple JDE E1 instancesETL written using InformaticaAP, AR, GL transactions are mapped providing ability to view transactional detail

Oracle BI Data Warehouse Business Adapter for JDE E1 (Financial Analytics)

"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"

*Businesses want to reduce risk, minimize losses and stay ahead of rapidly changing conditions. They need seeing what is happening NOW and why it is happening.*Oracles strategy-to-success management processes framework is designed to make EPM more strategic to organizations. In an economic downturn the intuitive reaction would be to do a tactical retreat. Cost control only, with a heavy internal focus. But in challenging times, an external view of needed more than ever. This crisis is driven by external results. Strategies sometimes need to change overnight to respond. And if there is one time where you need to manage the contributions of the stakeholders, it is now. How to make sure capital is available? How to improve the relationship with suppliers and partners to stand tall? How to ensure customers will keep buying, despite lower consumer confidence?Managing the crisis is about three things:Mitigating riskImproving operational grip and controlBuilding trust (again)For explanation see next slide.*Oracles strategy-to-success management processes framework is designed to make EPM more strategic to organizations. In an economic downturn the intuitive reaction would be to do a tactical retreat. Cost control only, with a heavy internal focus. But in challenging times, an external view of needed more than ever. This crisis is driven by external results. Strategies sometimes need to change overnight to respond. And if there is one time where you need to manage the contributions of the stakeholders, it is now. How to make sure capital is available? How to improve the relationship with suppliers and partners to stand tall? How to ensure customers will keep buying, despite lower consumer confidence?Managing the crisis is about three things:Mitigating riskImproving operational grip and controlBuilding trust (again)For explanation see next slide.*A January 2007 Gartner EXP survey of CIOs found that BI is the #1 spend priority, for 2nd year in a row. This is not new. In fact, in survey after survey since the late 1990s, BI has consistently been ranked as a top priority. BI has been with us since the 1980s, and one might think the priority has been addressed and solved by now.

*BI investments typically offer high ROI. However, there are serious and significant challenges to achieve success with business intelligence,

First, Silos continue to be the biggest problem when it comes to sharing data. Organizations typically have many different BI deployments, each siloed across different departments and/or applications with multiple BI tools and architectures across departments and applications. Sales probably uses a different reporting tool to track pipeline and orders than Finance. Marketing may track and do segmentation of customers in one place, while customer service has a separate customer database on which they do customer service analysis. The CRM and ERP systems may have their own reporting tools embedded.

Our interviews further illustrate the challenges that data silos present: We have very good pockets of data, says Kevin Bott, senior vice-president and CIO at Ryder, a US $6bn transportation, logistics and supply chain company. But we dont have an enterprise-wide data governance system in place. We are working on that.

Second, Error-prone data is the second biggest concern. This is an issue that companies too often overlook. Without good data, even the most sophisticated business intelligence tools are a waste of time and money. In addition, since every department has their own applications and data marts, and each analyst has their own cut of data and their own BI tools, the approach to calculating key business metrics may be different and inconsistent across departments and users. Are metrics such as operating costs, product profitability, and customer lifetime value calculated consistently across your business and accessible to everyone? Most organizations lack a single consistent view of how the business is performing, and therefore find it difficult to achieve enterprise wide alignment.

Third, traditional BI tools focused on a report-centric model, where end users request reports from IT, leading to more questions and more reports. Over time, IT becomes a report factory and is increasingly burdened with maintaining and creating all these reports. This creates a bottleneck to most users getting the information they need in a timely way, as only the top priority requests from executives get fulfilled. Few users have timely and actionable information needed to optimize actions and decisions, particularly middle management and front line users.*Decision makers have the issues on the left side of the slide. IT fails to contribute as much as it could to solving them because of the issues on the right side of the slide. IT, therefore, is sometimes seen as part of the problem, not part of the solution. *In this and the next slide, lets drill down on each of the imperatives to see what concrete steps customers take to address them. ***There is a need for BI in every line of business. And thats part of the problem. In many cases, departments have focused only on solving their immediate need, with no plan or regard for secure reuse of information or a cross-enterprise view of information.*Oracle has the most comprehensive suite of BI applications in the marketplace. We have offerings for every line of business. These applications share the same underlying technology OBI EE that our core BI technology leverages.****Analytic workflows appear as HTML links as shown in the slide. These workflows are designed around the prepackaged reports but can naturally be easily changed to meet the specific customer needs. Each analytic workflow suggests an order for running a group of reports; these suggestions constitute paths of guided analytics.*You can see that each part of the flow is supported by prebuilt reports and navigations that allow users to easily drill to further levels of detail as required. In fact, since our products are built to capture information at the transaction line level users can easily drill from the summary information to the most atomic level of information required. Ultimately this allows the user to not only monitor progress on an objective but easily navigate the right information so that in the end any required corrective action can be proactively taken.***In the same way that Dashboards & Reports are just the parts of the iceberg above the surface, the true value of the BI Apps lies just below that within the metadata that makes up the Subject Areas, with the rich dimensions, dimensional attributes and derived metrics.*Rather than buying a variety of different BI, ETL, and data warehousing tools, then building everything from scratch, organizations that leverage Oracle prebuilt BI applications can save significant time and money. These prebuilt solutions enable organizations can roll out BI more quickly and with a greater chance of success to broad audiences of users.

Every BI project is attempting to solve some business problem, and given the breadth of BI applications Oracle offers, typically we can offer a prebuilt BI application that meets at least 80% of the need. As a result, it often makes sense to start with a BI application and adapt it to meet the specific business need rather than starting from scratch.

The nice thing about Business Intelligence from Oracle is that you have the option you can build BI from scratch, leverage a prebuilt BI app, or do a mix of both in the same environment. Regardless of the approach, you can maintain one common BI architecture.*******