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Agenda
• EnterpriseOne Architecture & Solution Portfolio
• EnterpriseOne in China– Overall install base– Install base by industry– Main Competitors by industry– Partners– Customer Expectations
• Attachments
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EnterpriseOne Design Center
Common Toolset & DatabaseCommon Toolset & Database
Financial ManagementFinancial Management
OrderOrderManagementManagement ManufacturingManufacturing
• Pre-integrated with Middleware and Operating System (Unix, iSeries, Windows, Linux)
• Single Database and Navigation
• Financials are the foundation for all other applications
WorkforceWorkforceManagementManagement
ProjectProjectManagementManagement
Sales & ServiceSales & ServiceManagementManagement
Asset LifecycleAsset LifecycleManagementManagement
LogisticsLogistics
SupplySupplyManagementManagement
Pre-configured OS, MiddlewarePre-configured OS, Middleware
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EnterpriseOne Solution PortfolioFMS M&D SRM CRM HCM ALM
Financial Foundation• GL• AP• AR• Fixed Assets • Advanced Cost Acctg
Compliance• Compliance Manager
Budgeting & Cash Management
Expense Management
Project Management• Contract and Service
Billing• Project Costing
Homebuilder
Manufacturing• Requirements
Planning• Multi-mode Mfg• Shop Floor Mgmt • Product Data Mgmt • Quality
Demand Flow Mfg• Line Design• Kanban Mgmt• Resource Mgmt• Daily Sequence
Planning• Lean Metrics
Demand Scheduling Execution
Transportation Mgmt• Inbound and
Outbound Shipment and Load Execution
Warehouse Mgmt• Putaway• Picking• Replenishment
Inventory Mgmt
Bulk Inventory MgmtAdvanced Stock
Valuation
Procurement & Subcontract Mgmt
• Direct Materials• Indirect Materials• Project Services
Requisition Self Service
• Requisition Mgt• Supplier Punchout• Commodity Tree
Supplier Self Service• Supplier Workspace• Buyer Workspace• Lean Procurement
Sales Force Automation
• Lead Management• Opportunity
Management• Pipeline Forecast• Territory
Management• Mobile Sales
Customer Support• Case Management• Branch Scripting• Solution Advisor• MCIM
Service & Warranty Mgmt
Field Service
Customer Self Service
Sales Order Mgmt• Sales Order Entry• Sales Order
Processing• Advanced Pricing
Human Resources Management
• Employees• Jobs• Positions• Performance• Skills/Competency• Pay/Compensation
eRecruit
PayrollUS Payroll
• Canadian Payroll• Australia/
New Zealand Payroll
• Employee Self Service
• Manager Self Service
Capital Asset Mgmt• Condition Based
Maintenance• Equipment Cost
Analysis
Real Estate Management
• Advanced Real Estate Forecasting
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Strong Financial Software (World) for
the AS400 Mid-Market / Cross Industry
OneWorldOneWorldElegant
SoftwareElegant
SoftwareWorld
SoftwareWorld
SoftwareJ.D. Edwards 5J.D. Edwards 5
J.D. Edwards Strategic Evolution
20042002199619841977
OpenSystems
ERP“OneWorld”
M&DMid-market
Cross Platform
EnterpriseOne- Mid-market- Manufacturing
World- Installed base- Small Business
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Strength in Six Industries
• Manufacturing & Distribution in mid market• Construction• Paper & Packaging• Real Estate• Mining• Consumer Packaged Goods
PeopleSoft E1 has been the enterprise software leader in six product and asset intensive industries – manufacturing and distribution for the mid market, construction, pulp and paper, real estate, mining, and consumer packaged goods.
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• Total known customer install base in China : approx. 80
• Distribution: 23
• Manufacturing: 54
• Others: 3
Overall Install Base
China E1 industry distribution
29%
67%
4%
DST
MFG
Others
• About 70% of customers in China are global account
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Overall Install Base
Install Base Distribution by Release (total # of customers: 80)
World38%
E135%
Unknown27%
Install Base Distribution by HW Platform (total # of customers: 80)
AS/40054%
Unknown27%
Intel15%
Solaries1% HP
3%
Install Base Distribution by DB (total # of customers: 80)
DB254%
Oracle4%
SQL Server15%
Unknown27%
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Overall Install Base – additional information
• Industry classification– Manufacturing: Chemical & lubricant, Electronics, Industrial
manufacturing, Pharmaceutical, Auto industry, Food & Beverage, Consumer product, Paper & Packaging, Textile
– Distribution: Downstream energy, Consumer product distribution, Industrial product distribution, Medical product distribution, Retail, Fast food chain
– Others • Common modules among install base
– Accounting (G/L, A/R, A/P, Fixed Asset)– Core technical modules
• Most manufacturing customers also have distribution modules
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Install Base by Industry - Manufacturing
• Top 4 segments accounts for 74% of manufacturing install base– Chemical & lubricant
– Electronics
– Industrial manufacturing
– Pharmaceutical
• Auto industry– Presently account for 4% only
– Growth potential high in China
– See attachment for more info.
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Electronics
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Food &
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Textiles
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Install Base by Industry - Distribution
• Wide spread among # of segments– Consumer goods– Medical– Industrial– Retail– Energy (down stream)– Fast Food Chain
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Main Competitors – Key differentiators
PeopleSoft:
• Flexibility and adaptability vs. MySAP
• Scalability and functionality vs. BusinessOne
• Demand-driven: Demand Flow® / lean manufacturing
PeopleSoft:
• More platform choices
• Richer industry functionality
• Supply chain planning
• Demand-driven: Demand Flow® / lean manufacturing
PeopleSoft:
• More platform choice
• Single product line for mid-market
• Scalable and adaptable
• Industry functionality from PeopleSoft (not reliant on resellers)
• Breadth and depth of manufacturing functionality
• Demand-driven: Demand Flow® / lean manufacturing
VS. VS. VS.
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Main Competitor by Industry – Chemical industry
• Main competitor: SAP
• Key customer purchasing attributes – Integration(Integrate with vender/supplier ERP systems)– Flexibility to use – Flexibility to change– Total Cost of Ownership(TCO)
PeopleSoft E1 SAP
Integration Better
Flexibility Use/Chg Better
TCO Better
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Main Competitor by Industry – Auto industry
• Main competitor: QAD
• Key customer purchasing attributes– Demand driven/Lean manufacturing technology– Multi-plant solution– Integrate with vender/supplier ERP systems– Total Cost of Ownership
PeopleSoft E1 QAD
Demand Driven Better
Multi-plant solution Better
Integration Better
TCO Better
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SWOT Analysis - Auto Suppliers
PSFT Strengths:• “Largish” global Installed Base (250+)• Recent success in segment in EMEA, NA• Demand Driven solution ideally suited to this
segment• New DSE solution demonstrates commitment• Broad footprint (SCP/SCM/ERP/ALM)
PSFT Weaknesses:• Demand Scheduling development is late to
market• Solution requires DFM and is not yet GA• Lack of PSFT manufacturing references in
JAPAC. Almost no share of segment
• QAD has most installs (China – 56%)
• SAP is second (China - 38%)
Market Threats:• Intense competition from SAP, Oracle and
QAD
• Lack of sustainable commitment from PSFT
Market Opportunities:• Exploit new Demand Scheduling Exec.
• Leverage SCP, ALM & SRM solutions
• Use PSFT brand in large OEMs (Toyota)
• Massive growth and consolidation in this segment throughout JAPAC
• China auto parts sector - $30B in 2003 • 75% of Chinese suppliers have no system
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SWOT Analysis - Heavy Vehicles
PSFT Strengths: Industry recognized customers (AGCO,
Oshkosh, John Deere) Recent success in segment – large multi-
million upgrade at AGCO Broad functionality of DIST & MFG
solutions fit segment well Broad footprint (SCP/ALM/SRM/ERP)
PSFT Weaknesses: Have not developed enough references SAP is the market “gorilla” in installs, e.g.
Caterpillar Poor PLM product may hold us back Need manufacturing references in Asia
Market Threats:• Industry consolidation might create more SAP
by default decisions
• Oracle FUD
Market Opportunities:• Leverage SCP, ALM & SRM solutions
• Leverage CRM for prospect revenue benefit
• JAPAC markets is largely untapped
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Main Competitor by Industry – Distribution & Retail
• Main competitor: Oracle
• Key customer purchasing attributes– Industry specific solution– E-Business solution– Total Cost of Ownership
PeopleSoft E1 Oracle
Industry specific solution Better
E-Business solution Better
TCO Better
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E1 partners in China
• Joss
• S&I
• Deloitte
• IBM
• Keying
• ESG
• Elites Land
Joss, S&I and Deloitte are the top three partners in China.
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Customers’ expectation
• Ongoing maintenances support plan and cost
• Future product feature upgrade– World– Enterprise One (One World)
• Availability of Fusion product and features
• Training and documentation availability
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Attachment 1 - Trends in China’s Automotive Industry• Competition ahead:
The world’s fastest-growing automotive market is reported likely to experience a significant competitive battle, as suppliers increase manufacturing capacity at a rate faster than their anticipations for market growth.
• Different export targets: Southeast Asia is where domestic firms intend to increase exports, while foreign joint ventures plan to export more widely – to North America and Japan, as well.
• WTO will not drive exports: Membership in the World Trade Organization will lead to gains in product quality, reduced prices, and increased investment, but not increased export, according to companies interviewed.
• Low IT spending, high ambitions for business process improvement: Despite typical investment of less than $100,000 per year on information technology, more than two-thirds of companies surveyed seek to improve their business processes in order to initiate advanced manufacturing concepts such as inventory management, improve accuracy of production planning, and track inventory through bar-code labelling.
• Advanced supply chain initiatives: Almost a third of domestic companies interviewed have lead times of four weeks or longer, but nearly as many offer just-in-time (JIT) delivery within two days of order. More joint venture firms achieve JIT in less than two days, and three quarters of joint venture firms’ lead time is under a week.
• Dependence on manual procedures: More than half of all orders are sent and received via fax, and the balance communicated by e-mail or the telephone.
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Attachment 2 - Auto Suppliers and Heavy Vehicle Addressable Market
Sources: OneSource (Oct 2003)
Revenue Range
Australia China Hong Kong
India Indonesia Japan South Korea
Malaysia New Zealand
Singapore Taiwan Thailand
Unknown 0 48 47 11 7 22 6 4 1 3 10 9
< $50M 182 2243 6 273 76 2754 220 227 43 68 317 162
$50M - $100M
18 235 6 33 26 105 44 21 8 12 33 28
$100M - $250M
29 113 4 28 7 107 37 25 8 9 22 7
$250M - $500M
17 133 4 22 13 59 15 7 2 7 10 10
$500M - $750M
10 53 3 4 2 27 4 2 0 5 6 3
$750M - $1B 5 35 3 3 1 15 5 4 0 2 2 3
> $1B 10 147 6 5 15 65 15 6 0 4 3 4
Total 271 3007 79 379 147 3154 346 296 62 110 403 226
Target Market based on size and readiness