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Oracle Fusion Applications Webinar

Oracle Fusion Applications Release 1.0 Scope and Cross/Up-Sell

Opportunities, March 11th, 2010

Presenter: Group VP Chris Leone

MR. CHRIS LEONE: Good morning everyone. This is Chris

Leone, group President of Applications Development. You're

here today in a series of events around Fusion Application.

Today we're going to be going through release 1 scope and

some cross-sale and up-sale opportunities. This presentation

is just one in a series of presentations that we will be

doing. As I go through version 1 scope or release 1 scope, I

will touch on all the families. But recognize that we will

have individual deep dives into each one of the families that

I'll touch on today. So you will get plenty of more detail

as we progress in this series of Fusion Application

presentations.

So with that, welcome aboard and let's get started. Today

we're here to talk about Fusion Applications and one of the

key things that we set out to do when we're developing Fusion

Applications was to think about what we can change to develop

this next generation of software. And if you think about how

applications were developed, and most of the applications

that are out on the market today, their data models, their

infrastructures, their tool sets, were designed in the '90s,

late '80s. And they were really designed to enable the

automation of business processes. They were really designed

for the transaction worker. Most of them were built on

proprietary technologies. Really what we set out to do was

to really change the game and how we were developing and

brings a next generation suite of applications to market and

really focus on first, the knowledge worker.

So a lot of things have changed. Obviously, BI and analytics

have come to the forefront in the majority of organizations

are leveraging. Those solutions today, to get better

information out to all of their knowledge workers as well as

with the onslaught of the internet and all the Web 2.0

capabilities, the knowledge worker has really changed. One

of the things that we have really tried to do and design in

from the ground up is how we take advantage of these

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capabilities and really take a step back in our user design

and our user experience to encapsulate business intelligence,

Web 2.0 collaboration. And do that in context to the

business flows or the transaction flows throughout Fusion

Applications. And I will talk more about that as I go

through this session.

Second is recognize that many of the systems out there like

SAP are very, very hard-coded, rigid applications and rigid

business processes that are very difficult to tailor to the

specific needs of a particular industry or particular

business process within a particular industry. One of the

things that we're really focused on was around how we can

provide a level of business user extensibility. As well as

the ability to change or configure business process flows in

our applications to make it easier not only to do that from a

business user prospective, but also easier to maintain and

support and upgrade over time. So another critical area that

we focused on was business agility, recognizing that many

organization's business model changes every few years. They

go through mergers and acquisitions. So a level of business

agility just built natively in was critical to our design

principles.

And then finally part of Oracle's mantra is build a design

based in open standards. And you will see that as a critical

component of our Fusion Applications. Really from the ground

up we designed and built these applications on our standards-

based, Middleware technology. I will go through some of the

details of about what we have done and how we have done that.

But at least I will say, all standards-based technologies

platform leveraging the latest and greatest in the Middleware

technology stack. And I will give you more details as we

move forward.

One of the things that I do probably two or three CVCs a

week. And one of the things that I always go back to is when

we talk to our existing customers, Oracle customers, whether

they're running E-Business Suite or Siebel or PeopleSoft or

JD Edwards or one of our Edge applications, is to continue to

reiterate our message around our continued investment in

Applications Unlimited. It is critical that customers know

that their investments are protected. We will continue to

invest going forward. All of these product lines have a

general manager in place; someone that leads a development, a

QA and support organization that is dedicated to the

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continued investment and innovation in all of these product

lines. So it is one thing that we need to continue to

reiterate and it's a key part of our value proposition going

forward.

On top of that, we have also made investments leveraging our

Fusion Middleware technology stack. And what we have done

here is try to drive innovation into all of our Application

Unlimited releases. We have done that by up taking a lot of

the Fusion Middleware or providing the opportunity for

customers to uptake components of the Fusion Middleware

technology stack to add value in their current installations.

Just a couple of examples, simple examples are all of the

product lines that you see here are leveraging our standard

for production report writing, BI Publisher. It is embedded

in all of these product lines and we ship that as a part of

the standard releases of all the product lines that I have

just mentioned.

We go beyond that. We have integrations a common set of

functional and industry specific data models in our OBIA

applications. We have integrations from those to all of

these product lines as well. And then we have gone far

beyond that to integrate capabilities in Enterprise Manager

and Identity Management and Web Center. So all of our

application families have up taken and built integrations or

packs to, the majority of the Fusion Middleware technology,

to drive value and drive innovation into all of those product

lines. And on top of that, we are investing in a next

generation suite of applications. The question that I get

asked most, or I get asked a lot from customers, is there is

a lot of confusion as to what this suite of application is.

Is it just leveraging the Middleware technology stack and

potentially AIA and maybe stringing together, through

technology, all of these applications? No, Oracle Fusion

Applications is a suite of applications built from virtually

the ground up to take advantage of not only a standards-based

technology stack, but really bring forward the user

experience, a lot of innovation form a products perspective

and really incorporate some of the latest and greatest

capabilities around. Embedding analytics or intelligence

throughout out applications and as you get some

demonstrations throughout this series, you will see how we

have tried to add a significant amount of intelligence to

help the knowledge worker, the business user, across all of

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our applications. And take advantage of intelligence or

extra information as they go and perform their day-to-day

activities.

We have also taken advantage of many of the Web 2.0

capabilities that you will see. We did not just slap these

capabilities on the side and do it as an afterthought. We

really decomposed our business processes and our task flows

and tried to inject our assess feeds where it made sense, in

context to a business activity or a business process or a

business task flow. The use of wikis and collaborative group

spaces are put in specific areas within our applications to

add value to that particular process or that particular

business flow. Contextual help is another critical thing

that we have done to really drive value and lower the cost of

adopting Fusion Applications.

So when you think about Fusion Applications, it's a suite of

applications built form the ground up to take advantage of

the Middleware technology stack as well as drive additional

innovation, leveraging a lot of the capabilities that I just

described.

Let us get into the scope. So at a very high level our focus

on scope was to cover the 80/20 of applications in a release

1 timeframe. So when I talk today, this is all about release

1. What I get asked a lot: is this the entire scope forever

or is this just release 1? I am going to be talking about

release 1 scope today. So everything you see is related to

the first release of Fusion Applications. And I will get

into the details in the next slide.

So financial management will be there and we will have human

capital management, sales and marketing and CRM. We are

really focused on the sales and marketing aspect and I will

talk about some of the innovation's new capabilities we have

in this area that we are bringing to the forefront. In

supply chain, Steve Miranda mentioned, as well as I will

mention, we focus on a couple new innovative areas in supply

chain. Core manufacturing, core work in process, MES, all of

these is not in version 1. We did not target manufactures

for the first release. However, we do have solutions that I

will talk about in the next slide where we can help enable

drive value for customers that are running our manufacturing

solutions or other manufacturing solutions today. So I will

talk about supply chain management.

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In the project portfolio management area, there is a big

release. I will talk about what we are delivering there.

Procurement is part of version 1 and of course governance

risk and compliance full suite there will be delivered as

part of version 1. And let me get into the next level of

detail. I will walk you through some of the modules in this

release. Again, we will have members of the strategy

organization come back and deliver more detail sessions

around each one of these families. So as they appear on the

slide, we will have a deep dive hour session in financials

and human capital management and so forth. So stay tuned for

more sessions to come.

Let me go through at a high level what we targeted. Again,

the target was trying to get to 80% core functionality in a

release 1 timeframe. So when you think about financial

management we focused on core general ledger, AP, AR, fixed

assets, some cash managements, so things around bank

reconciliation and capabilities there. Obviously, the common

modules are there for things like inter-company and tax.

Those capabilities are all part of version 1. And then each

area should list KPIs and dashboards. Not only will we have

a series of embedded analytics throughout all of these

applications, we will also have a suite of OBI applications

that are designed and built for Fusion. It is a set of VTL

maps for BI applications.

As I get into human capital management, again, core HR, core

benefits, total compensations that will have a compensation

statement. Incentive comp will be in version 1 whether you

look at it from a CRM perspective or in human capital

management an incentive comp module will be there. Work

force management, we will have pallet management in version

1, primarily focused around the performance, goal setting,

worker directory capabilities. But that will be delivered in

version 1 and again, a suite of KPI's and dashboards as well.

As we get into Oracle Fusion supply chain management, the

product information data hub will be delivered in version 1.

Global order promising and distributed order orchestration

will be sold and combined together, for the most part, for

customers. I will go through the details, really trying to

connect multiple capture and multiple fulfillment systems.

We will have cost management and logistics around shipping,

receiving and inventory in version 1. Again, most of what we

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use inventory for will be for direct inventory related to

procurement. But that is Oracle supply chain management.

As we get into Fusion project portfolio management, we will

have project costing, a lot of the back office capabilities

related to costing. Billing, budgeting and forecasting will

be part of release one. Significant investment and

performance reporting and you will see we are leveraging a

lot of the great technologies on the BI side where we have

embedded EssSpace for specific project performance reporting,

project control. I will talk about some of the integrations

here that we have, but project integration gateway is really

designed to integrate to market leading scheduling and

project solutions out there like Primavera, one of our own,

and for the lesser used project management or project

scheduling tools out there like Microsoft Project. Project

integration gateway is that interface to integrate to Fusion

project portfolio management.

As we get into procurement, pretty much the entire suite of

procurement is in version 1. Significant investments in

sourcing, purchasing, self-service procurement and you will

see some unique capabilities as we get into the deep dives

here. Self-service procurement, obviously this solution is

used on occasion by users within an organization. This is a

great example where we are able to move the ball forward

leveraging capabilities like contextual help. So if it is a

self-service procurement flow and you have not been in

ordering a Dell laptop in a while, we can actually walk you

through a video to explain, in very simple terms, how you can

go order a laptop using our self-service procurement

solution. But procurement contracts is available in version

1 and I will say that one of the big advancements that was

made around contracts is we have a single centralized

contract module for managing broader contract terms and

conditions. Obviously, this has been targeted for

procurement contracts as well as project contracts for the

specific needs of the buyer working with their supplier. So

procurement contracts is in version 1 as well as supplier

portal.

And then we will have spend analytics as part of this release

as well. Obviously, that is a definite need to understand

your spend within the organization. I will go into some more

details as we go forward. As we get into Fusion sales and

marketing, we are really focused on the sales optimization

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aspect of CRM in the first release. So the customer mass or

customer data hub will be delivered. Sales, light marketing,

mobile will be delivered in version 1. Obviously, Outlook

integration is critical for a sales person. And then we have

some innovations, some new capabilities around territory

management. So the assigning is from both a top down and

bottom up perspective of quota. I will give you some

coexistence scenarios or use cases around territory

management, which is an innovation in sales and marketing.

Finally, we have Oracle Fusion governance risk and

compliance. So we would deliver the full suite of GRC with

release 1. Actually, it will come in two components. The

first component is really around process orchestration, the

ability to document your key controls and to associate those

key controls or those key risks to key controls within your

organization and make sure that the process owners are

signing off on those key controls. That relates to financial

compliance, IT risk, risk management, issue management. That

solution called GRC manager is on the Market today, built on

the 11g tech stacks. So it is available and shipping today.

And the rest of this suite as far as automating controls,

whether they're access controls related to segregation of

duties, or transaction controls or configuration controls,

looking for ways to automate policies or controls within your

ERP system, will ship with the Fusion applications and be

tightly integrated when Fusion version 1 ships.

So that is a quick walk through of scope and again, we will

have more details in all of this in the sessions to come. So

when we talk about Fusion applications, the high-level themes

that we talk about are really next generation productivity.

I have given you a number of examples of the user interface,

leveraging analytics as well as Web 2.0 capabilities. But

one of the key things that we have really tried to drive in

the Fusion applications is this concept of delivering what

you need to know and bringing that to the forefront, very

exception based, into your work list. Bringing all the

information that you need to know and then driving to what

you need to do, or who you need to collaborate with, to get

that priority done in your day to day activities. So a huge

investment in productivity, user experience and user design

when into Fusion version 1.

Adaptability is another key investment area. I spent some

time early on but really adaptability is how we support the

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ability to adapt to changing business processes, business

models. There is a lot of flexibility. All of our workflows

was built on a very flexible SOA suite based on people

technology to be able to extend, configure, change our

business process flows very, very easily. Not only is it

easy to change, it is easy to manage and support and upgrade

over time. On top of that, in the adaptability category, we

spent a lot of time on extensibility of our application and

configurability. So not only have we made significant

investments in the install and set up, we have a set of

significant processes that are around setting up the

applications. We have the ability to walk through a pre-

defined verbal script to ask you, is this a multicurrency

application? Is this designed for one or multiple business

units or operating units? It helps you walk through the set

up process, as well as a lot of extensibility and

configurability of the UI. This is a significant investment

that we're making not only in CRM to compete with the sales

forces of the world, but all of the applications in Fusion

can take advantage of this extensibility and personalization

framework that we're bringing in version 1 around

adaptability.

And then finally, one of the things that we hear a lot from

all of the CIO's or people within the IT organization, that

their role and their job is to maintain and manage these

applications, is around manageability. How are you going to

support, configure, and upgrade our applications? So we have

made a significant investment in manageability around

capabilities like performance or enterprise manager. The

components of enterprise manager we will be shipping with

version 1 so we can easily understand if there is a

performance bottleneck. We will be supporting all of the

availably capabilities to make sure that we support RAC and

fail over on the middle tier as well as capabilities to

diagnose issues. We have a standard diagnostic framework to

really help support, troubleshoot, for customers, issues that

are arising. So it is a significant investment in

productivity, adaptability and manageability cross Fusion

applications.

So they start to think about some of the recommended actions

and one of the things that I like to highlight is: do nothing

is not an option for our customers. When we talk about the

recommended actions is when we say stay current. We want all

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customers to upgrade to the latest releases of Applications

Unlimited. So it is do something, upgrade, significant value

in all of the latest releases. And as you are upgrading,

look to build a future-proof ready foundation. Take

advantage of the SOA suite and AIA or look at Web Center to

start your journey around collaboration or identity

management to externalize your access and provisioning and

the roles within your enterprise or a host of other

capabilities on the Middleware technology stack to really add

value to your current Application Unlimited release. But

also future-proof your roadmap because these are all the

technologies that Fusion applications are leveraging natively

in the stack that we will be shipping with.

So we get you, what are your next steps. When I talk to

customers, we have done a lot of SI updates. Obviously, we

have updated OCS. A lot of customers that we talk to, we

really talk to them about three scenarios or three things

that they need to consider. Oracle has a portfolio of

applications and when customers are doing three to five year

road mapping activities, which many of them are undertaking,

we talk to them in these context. First is, continue on your

current path. I will give you examples of what we are doing

and how we are investing in all of these areas. But

continuing on your current path is the most important thing

that we can communicate to customers. Upgrade to the latest

release. Take advantage of the latest capabilities. Stay as

current as possible so you do not get behind on the

technology side and you continue to add value within your own

organization based on what we are delivering and all of the

AU releases.

We are going to spend a significant amount of time, or a

little bit of time talking about how customers can begin to

move to Fusion in a step-by-step manner. So one of the

things that when we talk about how Fusion applications can be

deployed, we have a number of deployment options. In fact,

we have a session where we will talk in detail about the

different deployment options in a later part of the series.

But suffice to say, we will be able to deploy similar to how

Oracle EBS deployed today in a single global instance, so

running HR and financials in the same instance. We will be

able to deploy in a pillar deployment strategy similar to how

PeopleSoft and Siebel deployed. So CRM in a separate

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physical instance form HR or HCM as well as financials and

supply chain.

But also we have architected Fusion applications in more of a

modular way. Since it is built on a services oriented

architecture, we will give you some examples of how you can

take smaller pieces and integrate those back into Application

Unlimited releases. So the second component is moving to

Fusion step-by-step. And then finally, we will be producing

upgrades to delay the Fusion applications and I will spend

some time on this. But obviously, customers can look to

upgrade a broader business process. So I want to upgrade my

higher to retire process or my financial close and reporting

process. We will provide upgrades to the current release and

the current release minus 1 as well as customers might be on

older release. They might be on PeopleSoft, HCM 8.3 for

example, heavily customized, used that designer and over

customized the application, and they want to start clean.

That might be an opportunity to upgrade to a full hire to

retire business process into a release one Fusion

application.

So these are the three steps: continue on your current path,

this is probably most important, look to move to Fusion step

by step, and upgrade to Fusion applications a broader

business process. Let us go through each one of these in a

little bit more detail. Again, I will spend most of the time

on the middle box moving to Fusion step by step. We think

many of our early adopters will begin to take Fusion in a

step-by-step fashion.

Continue on your current path is the first section. One of

the things that we need to make sure that we reiterate to

customers is that we have invested in all of our Application

Unlimited releases. This investment will continue. Larry at

the last Open World reiterated that we would continue to

invest in all of these applications. It will be a choice for

customers if they choose to look at a fusion application. We

will invest in these for ten plus years. So it is not just

ten years, it is ten plus years. So it is really an

unlimited amount of investment that we have committed to

investing in these. You can look at our history. We have

pushed out a number of releases and we will continue these

roadmaps going off in to the future. So it is one thing that

we need to continue to reiterate to our customers.

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The next area is moving to Fusion step by step. I will be

spending a little bit of time here. Again, what we're going

to be going through here is opportunities for customers to

stay on their current core ERP, core HCM, deployments of a

PeopleSoft, of a E-Business suite, of a JD Edwards, and look

to take advantage of some of the innovative modules, some of

the new deployment methodologies like an on demand or SAS

deployment model. We will be providing integrations back to

those latest AU releases for some of these coexistence

scenarios that I will be going through in the next several

slides.

So first section I will go through is really what we are

calling enterprise resource planning but the three families

that we are bucketing into this is financial management,

procurement and project portfolio management. We will have a

section on early adopters and the type of early adopter

customers that we are looking at. We will have some

opportunities, and I will go through some of these

coexistence opportunities here, but many customers if they

are going to be looking at project costing or project

billing, they will probably deploy core financials along with

that. If they are looking at purchasing and self-service

procurement, they will probably be deploying financials along

with that. But let me go through some of the coexistence

opportunities in the next few slides.

This is the footprint for Fusion financials. I will not go

through this again but you can see what is available in

release 1. Here are a couple of the options. So the first

option is obvious a customer could run Fusion financial

stand-alone or Fusion financial and purchasing, or PPM,

however they want to deploy it. But a lighter option,

coexistence option, is to deploy something called the Fusion

financials accounting hub. And the Fusion financial

accounting hub we will go into more detail has the ability to

bring in, at the transactional grain, information from one or

multiple ERP systems. So an opportunity for customers to

start to consolidate their ERP foot print and take advantage

of some of the capabilities in Fusion. So what you see here

is a blown out picture of the Fusion accounting hub and some

of the capabilities. What customers would do is plug this

into maybe one or multiple instances of EBS, just as an

example. They might have regional instances. They might

want to move more towards a shared services environment from

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an accounting prospective. They also might want to bring in

some transaction detail from a banking ledger. Maybe they

have a fatter ledger from some of their banking transactions,

some customer related information. They could bring this in

to the financial accounting hub. They could perform their

entire standard accounting entries. Because we will be

embedding some of the technology form our BI technology

EssBase, they will be able to have much more flexibility

around management reporting as part of the financial

accounting hub. So as they want to push out their cash flow

balance sheet or income statement reporting, they'll be able

to do that and have the tools on the front end to do ad hoc

analysis in Excel, to do PixoPerfect report writing or

financial report writing and some of the tools that are

available. So there is a lot more flexibility and again,

this is a replacement for some of the older technologies that

we had around InVision or ESG in prior releases. So there is

a lot more flexibility here.

On top of that, we will have integration to our Enterprise

Performance Management applications. As they bring out new

solutions to broaden the financial close process, it is a

great opportunity to take advantage of some of the disclosure

management or financial close process capabilities that are

coming out from the Enterprise Performance Managements

groups. There are great capabilities here in the financial

accounting hub as a stand-alone application. You can see

some of the fit because there is not a lot of verticalization

or localization that needs to be done here. This can be

rolled out virtually to any customer that is looking to

centralize this part of their business.

As we get into procurement, another key innovation or another

key capability here is obviously, you can deploy a procure to

pay process, integrate to financials. But let us talk about

some of the coexistence opportunities in procurement. Some

companies have, and there are some competitors out there

again, that only sell the procure to pay flow because of the

nature of Fusion procurement. We can certainly support

those. Those customers are companies like CitiGroup that

have a separate group, a separate instance of procure to pay.

It is a great example of potentially rolling out a

coexistence scenario that was related to procure to pay. But

the one I am going to be talking about here is more around

the Fusion secured services procurement deployment. A lot of

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companies, and we have our Fusion strategy CABs or counsels,

and one of the popular areas for customers around coexistence

was moving their sourcing, their procurement contract and

their spend into a central environment and integrating that

back to a stand-alone ERP system, whether it's PeopleSoft or

E-Business suite. So what's nice here is first, I can get a

handle on all of my spend by category so I can see where

spend is out of control, who I'm spending with suppliers that

aren't part of my global supplier network, where I have

contract and purchasing agreements with. I can set up

purchasing contracts and I can start to drive costs out of my

business by sourcing and breaking up RFP's to specific

sourcing events to drive costs out of the procurement or

buying with different vendors. So great opportunity, higher

ROI for customers to look to adopt, again, a step-by-step

component of Fusion and a Fusion shared services procurement

deployment.

General trick here and again, we think this can be available

for the majority of industry so I will not spend a lot of

time on this. It is straightforward. Oracle Fusion project

portfolio management, we will not go through scope again,

project cost and billing, budgeting and forecasting, it a big

release here. One of the key integrations that we will have

and I will get into the coexistence play on the next slide,

we will be able to coexist and have integrations to

Primavera. We have not targeted public sector companies in

version 1. We do not have a lot of the encumbrance

capabilities but we have been approached, even in this area,

to some of the national labs that are looking, very project-

centric organizations. They have Primavera for scheduling

and project management already in place. They are looking to

take advantage of some of the Fusion project portfolio

management capabilities that we have in version 1. So we

will have a very nice integration there, bidirectional

integration in release 1. It is a great opportunity to

connect with our GBU and we are working very closely with

them with their current release and we will have integration

when we ship version 1.

Again, geographic fit depending on, obviously, there are

dependencies here and we will get into more of those from a

localization perspective. Obviously, if it is a global

customer and their dependant on financials, there are some

differences in the localizations that we’ll support. I will

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get into that in the next slide. So this is from a

localization perspective. We will be having more details as

we start to talk about the localizations that we support. I

am really targeting multinationals for a release 1. We will

have a roadmap at to the additional countries that we still

support. In some of these, as we get into areas like France

and Spain and Japan and China, we have some smaller gaps that

we need to close after release 1 for some integrations that

we've had in prior release like China had with some of their

releases in AU. We have integration for things like golden

tax. Those are things that we will be following up shortly

after release 1. But generally speaking, its broad coverage

from a global perspective in the release 1 time frame.

Let us get into human capital management. Human capital

management, again, we are still in the moving to Fusion step

by step, some of the coexistence scenarios that we will talk

through. Obviously, the deployment options are similar to

what I described on the first slide. You can deploy HCM as a

pillar, stand-alone pillar, or you could deploy it more as a

single global instance. So there is a lot of flexibility.

Let us talk about some of the coexistence opportunities. A

couple of those that come to the forefront first is Fusion

talent management either as an On-Demand or on premise type

solution integrating back to a release of PeopleSoft or E-

Business suite. We will talk about incentive compensation as

another opportunity as coexistence. So let us go through a

couple of those.

So first is talent management. There is a compelling

solution here. We have been brought in a few competitive

situations with some of the smaller needs competitors,

whether it is a talent competitor or a core competitor like a

workday where just the UI and the capabilities are

significantly advanced to where we have been in the past. It

really shows great against those competitors. So Fusion

talent management capabilities around talent review, goal

management, network at work, integrating back so exchanging

some of the core competencies, skills, employee person

information with core HR, whether its PeopleSoft or EBS,

we'll have that integration, which is always a concern for

customers. But the nice capability here is we will be able

to deploy this as an on demand or SAS environment or on

premise and integrate back without having to upgrade an

existing release of PeopleSoft or EBS. So there are some

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great capabilities to really sell back into the install base

in one of these coexistence scenarios.

Here is the fit. I talked to you about this on the last

slide. We will have some integrations that will be

available. We will get more into the specific releases, but

it will be more closely aligned with the later releases of

PeopleSoft and E-Business suite. Again, thus pushing to

encourage customers to get on the latest releases, we will

give them more options on not only capabilities in AU, but

integration options back to a Fusion coexistence opportunity.

Fusion incentive comp, there is a significant investment

here. Fusion incentive comp is one of those modules that

Oracle will be deploying in release 1. Obviously, Oracle has

a more than average complex sales compensation model. We

have sales overlays and overlays on overlays and we have

geographic distribution and product line distribution. So

sales incentive comp is designed to handle that complexity.

We will have integrations with some of the current AU

products on the CRM side. So if they are running Siebel CRM

or PeopleSoft CRM and they are managing their leads and

opportunities in one system and they are managing and paying

people out of PeopleSoft or EBS, we will be able to have

integration and incentive comp will be able to be a stand-

alone module. Again, this one of those modules that will be

something that Oracle will look to uptake when we ship

release 1. There are great opportunities of coexistence

opportunity.

The Fits here, I will not spend a lot of time on the Fits,

but, obviously, you can see a lot of fits here. In Fusion

version 1, these are the, when you think about localization,

and again, this is not translation. This is localization,

specific rules, reports, payroll rules for these countries.

This is what we will be supporting in release 1. There is a

significant investment in the payroll engine, moving what was

a lot of capabilities that were pushed out into specific

localizations in the core engine, so big investment there.

We will simplify building out payrolls dramatically going

forward. But these will be the payrolls and the core HR

localizations that we will have when we ship release 1. But

we will have a plan to follow this up quickly with additional

localizations. So as you are thinking and talking to

multinationals, we will be partnering with a field and our

partners to make sure that you have the latest on the go-

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forwards statement of direction so you can best counsel

customers on what their implementation should look like.

Supply chain management, we will talk about some of the

opportunities here. There is a big investment in really this

is a great area that we can look to pinpoint this end. One I

did not touch on was work force lifecycle management, which

is the on boarding process in HCM. That is really another

coexistence scenario on HR but distribute order orchestration

is in a similar vein. It is, basically, a composite

application that was designed to really sit between capture

and fulfillment systems. This is something that we have

gotten a lot of traction with our early adopters to date. So

what have we done here? We have really broken up the order

flow process from order capture, so the capture of the order,

configuring of the order, pricing the order on the front end.

Many organizations have one or multiple capture systems that

they have within their organization today. And on the back

end, many organizations have multiple fulfillment systems.

They might have JD Edwards at all of their plants. They

might have one of the bad guy systems like SAP installed.

They may have EBS. A good guy system they may have is BPics.

So the key part of the value proposition here is we can start

to centralize they order visibility into a central

environment. So distributor order orchestration coupled with

global order promising as well as integration to the

information data hub is a great solution for customers to

centralize this order orchestration process flow and start to

standardize this within their organization. Significant

value here if you look at how organizations are doing this

today. Many of them are answering phone calls, they have

stickies on their desktop and they are calling around for the

different fulfillment systems to see how they can split an

order, make it available to promise, all of those things. We

have automated that process. We have put it into an

application and we are delivering it in a very configurable

way in version 1. So distributed order orchestration is a

great example of how we have leveraged our Middleware

technology but really made it an application for the order

manager to be able to do their day-to-day job significantly

easier than they have in the past.

Enterprise fit, we have really focused on most industries.

We have had a lot of traction across all industries. High

tech and manufacturing has been where some of our early

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adopters are. This is one where we've got a tremendous

amount of traction with our early adopters almost to the

point where we have to get Aaron Shidler off the road and get

him back in the office so we can move on to other

applications. But there is a significant investment here and

a great opportunity with distributed order orchestration. It

is a lot of value for customers.

Sales and marketing, let us talk about what we are doing

here. So Fusion sales and marketing is a significant

investment. We really focused on the sales and marketing

aspect of this. It is really a significant step forward in

competing with Salesforce.com, a lot of extensibility,

capability, in version 1. Just to make sure that we are

clear, CRM on-demand, similar to all of our other Application

Unlimited product lines, will continue to be invested in.

This will be an option for customers. This will be deployed

in an on-demand or SAS environment as well as will be

deployed in an on premise environment. There are a lot of

innovations here. The one that I will tell you about from a

coexistence perspective is Fusion territory management.

Fusion territory management is a great innovation here,

really helping organizations optimize their account and

market coverage, managing territory assignment, quota

assignment, both from a top down and bottom up perspective.

It allows the organization to do white space analysis, making

sure that they're looking at their install base and assigning

territories based on the potential in that particular

territory versus just the number of accounts. So it is much

better coverage from a potential versus just the number of

accounts. So it is a significant step forward. This is

another module that Oracle will be looking at deploying

internally. Again, some of the targets here, whether it's

integrating into Siebel CRM where you're managing leads and

opportunities and using territory management for the

territory and quota assignment and having synchronization

between the two. It is a great opportunity from a

coexistence perspective.

I have talked about a number of these coexistence

opportunities and we will be going into more detail. Again,

this was a flyby so I do not expect you to have all the

details. I just wanted to make sure as we have the broader

audience, folks that represent the different families or the

different functional areas, able to see the different

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opportunities on the suite of Fusion applications that we

will be delivering.

So again to reiterate, we touched on current paths. That was

just move to Fusion step-by-step, a lot of the coexistence

strategies. The third component it upgrade to Fusion. So

this is when a customer, I'm not going to be going through

scenarios, they're pretty straightforward, but I'm going to

upgrade core HR, hire to retire to a Fusion core HR. It is a

choice for customers when and if they choose to upgrade. So

just quickly on the upgrade scenarios, so customers will be

able to upgrade in the simplest terms exactly the way they

have been able to upgrade based on the product line that they

have purchased today. So, what that means is if you are an

E-Business suite customer and you upgraded a single global

instance of 11.5.10 to 12.1, which all customers should be

doing, then you would upgrade similar to a Fusion if you

choose to do that and if the functionality and footprint and

all of those things are appropriate for you. You will

upgrade in the same fashion. Similar to PeopleSoft, we will

have a pillar upgrade as well as CRM; we will have a CRM

upgrade. But again, this is choice for customers. They can

continue on their current path or they can upgrade a module

to a Fusion application.

Okay? That was a walkthrough of scope and up sale

opportunities. In the last eight minutes, I am going to, and

we will take a couple of questions, walk you through the

knowledge repository quickly here. The knowledge repository

was put together. It is a development activity David

Kottcamp in strategy has really been driving this. But there

has been participation from the field as well as strategy and

development organization to populate a lot of the value

propositions in Fusion. What we set out to do was rather

than power point the field to death with all of the different

value propositions. We leveraged our development repository

internally. This is what we have used to develop and define

our applications to build out a series of differentiators at

the activity level. So Fusion was designed based on a

business process model and at the L3 or activity level, we

have defined a series of innovations or differentiators that

we will be producing for the field. So really what the

Fusion knowledge repository is meant to do in an encapsulated

way is to help educate the field, help enable the field and

help provoke the field and customers to understand what the

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value is, what some of the keys value statements are for

Fusion applications. It is not meant to be a tool that you

take to the board of directors with all of the well-defined

insights that we have out there. It is just an information

repository to help educate, enable and provoke internal.

This is a quick slide on what is in it for me. So if you are

a product strategy person, you can go to a central place and

get information and I will let you read this after the fact.

But there is a lot of opportunity here. We will talk more.

There is a whole section or presentation on the knowledge

repository so we will not spend a lot of time going through

the bill schedule, but this will be a production application

based on our EDF technology and will be pushed out to the

field. You will have a continual update of capabilities in

release 1, release 2, all of those things as we go forward.

I am going to show you a quick demo of that. We have gotten

great support from the SWAT team as well as AGSS, fantastic

support across the board. The UX team, user assistance

documentation is helping us tremendously making sure that

everything is kosher, so great support there. Let me show

you before we end, a quick demonstration of the knowledge

repository and what we have available here.