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FUSION SCM Distributed Order Orchestration – Auftragsabwicklung in verteilten ERP Umgebungen

June 5, 2012

Hans-Ulrich Römmler -Team Lead SCM Pre-Sales

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Agenda

• Introductions

• Changing Order Fulfillment Business Needs

• Overview Distributed Order Orchestration

• Demo

• Implementation approach

• DOO Customers

Proprietary Material of Oracle Corporation Proprietary Material of Oracle Corporation

Composite User Experience Architecture Overview

Notifications

Email

Contextual Wiring

Documents

Discussions

Personal / Group Spaces

Presence

Preferences

Search

Recent

Favorites


Superior User Experience

WHO do I need to reach?

What do I need to

KNOW?

How do I get it

DONE?

What do I need

to DO?

Exception-based Management Embedded Business Intelligence

Configurable Applications & Processes Embedded Collaboration

Fusion Applications Choice of Functionality

Oracle Fusion Financial Management

General Ledger

Accounts Payable

Payments & Collections

Asset Management

Accounts Receivable

Cash & Expense

Management

Common Modules KPIs, Dashboards, & Extensibility FW

Oracle Fusion Human Capital Management

Oracle Fusion Supply Chain Management

Product Master Data

Management

Distributed Order

Orchestration

Inventory Management

Global Order Promising

Cost Management

Shipping & Receiving

KPIs, Dashboards, & Extensibility FW

Oracle Fusion Project Portfolio Management

Project Costing

Project Billing

Project Control

Project Performance

Reporting

Project Integration Gateway

Project Contracts


Oracle Fusion Customer Relationship Mgmt

Customer Master

Sales Marketing

Incentive Compensation

Mobile & Outlook

Integration

Territory & Quota Mgmt


Financial Compliance

Issue & Risk Manager

Access Controls

Transaction Controls

Configuration Controls

KPIs, Dashboards, &

Extensibility FW

Oracle Fusion Governance, Risk & Compliance

Global Human Resources

Workforce Lifecycle

Management Benefits

Compensation Management

Talent Review Performance & Goal Mgmt

Global Payroll

Network @ Work

KPIs, Dashboards, Extensibility

Oracle Fusion Procurement

Purchasing Self-service Procurement

Sourcing

Supplier Portal

Spend & Performance

Analysis


Procurement Contracts

7

Changing Order Fulfillment Business Needs Need for a New Approach

• 49% of customers use multiple

ordering channels

• 61% companies sell through indirect

channels

• 32% of companies sell/plan to sell

partner products or services

• Average of 5.1 order capture and

4.3 fulfillment applications per

company

• 60% have limited or no integration

• 50% have limited or no data

standardization

• 40% of companies outsource a large

part of fulfillment

• 43% of companies make an

acquisition each year

• Order accuracy is below 85%

• Delays in new product introductions

• Falling customer satisfaction

• Order cycle time up from 1 to 3 days

• Increasing customer service complexity

• Inventories have increased 15%

• Fulfillment now accounts for 50% of

supply chain

Resulting Challenges

Requires a new architecture that natively supports multi-system, rules-based

fulfillment orchestration

More Complexity, Faster Changes, Failing Systems

8

GOP

Web Services

New Architecture for New Fulfillment Paradigm Capture, Manage, Orchestrate, Fulfill

Distributed Order Orchestration

Commerce

Service Center Websphere

Electronic Data

Interchange

Siebel Order

Capture Point of Service

Web Services

ERP1 WMS, Asset Mgt

Field Service

3rd Party

(WMS, Supplier, etc) ERP2

Fusion

Fulfillment

Decompose

Order

Orchestrate

Fulfillment

Transform

Transactions

Manage

Visibility

Manage

Availability

Manage

Exceptions

Capture

Orchestrate

Fulfill

Common management across multiple capture and

fulfillment systems

Highly configurable, adaptable and intelligent

business processes

Business user oriented application, built using open

tools & standards

PIM

Internal

Network* Internal

Network* Internal

Network* Partner

Network Partner

Network Partner

Network

SCM

Logistics

• Inventory Mgt

• Warehouse Mgt

• Shipping / Receiving

• Transportation Mgt

APS

• Advanced Planning

• Global Order Promise

Field Service

• Scheduling & Dispatch

• Dispatch

Finance

• AP / AR / GL

• Billing / Invoicing

Quote / Order Capture

• Create Transaction

• Select & Configure Products

• Create Shipment Expectations

• Check / Reserve Inventory

• Negotiate Terms

• Determine Tax

• Capture Payment

• Validate and Submit Order

Manage Order

• Order Status Inquiry

• Modify Order

• Cancel Order

• Return Order

• Renew Order

Mu

lti-

Ch

an

nel

Orchestrate Orders

• Order Decomposition

• Order Orchestration

• Distributed Inventory

• Order Workbench

• Data Transformation

Dropship

Network Dropship

Network Dropship

Network

Defining Order Management Heterogeneous Environment

Oracle Confidential – covered under NDA

Business Process Mgmt. & Business Activity Monitoring

ORCHESTRATE CAPTURE FULFILL

CRM SCM

GOP- Global Order Promising is a Component of DOO

Oracle Confidential – covered under NDA

GOP

Capture Decomposition Orchestration External Interface Layer

Fulfill

Multi-Channel Order Capture

Task Layer

Services

All systems that fulfill customer expectations

Order Orchestration Work Area

(runtime)

• Rules workbench

• Order Transformation

• Orchestration process selection

• Orchestration process launch

• Process definition

workbench

• Task execution

• Jeopardy management

• Change order roll back

• Cost of change

• Status Summary

• View & Fix Exceptions

• What –if supply analysis

• Manually re-source/ re-schedule

• View fulfillment process

• Rules workbench

• Fulfillment system routing

• Call transformation

services

• Supply Collection

• Sourcing Rules

• Centralized Availability

• Services to perform

Orchestration tasks

• Fulfillment system

response management

• Framework to create new

services

© 2012 Oracle Corporation – Proprietary and Confidential

Oracle Fusion Global Order Promising Value Proposition

Promising across multiple order and fulfillment systems

Powerful capabilities

Advanced what-if simulation and

embedded analytics

In-memory processing

Increase business performance

Fast response with massive scalability

Increased availability, customer satisfaction, and

sales; Faster time to revenue; Reduced inventory costs

Evaluate tradeoffs to determine best combination of service

levels and costs


Fusion GOP Builds on Oracle Heritage

Manual allocations

Basic order promising • Sourcing rules

• Customer constraints • Available to Promise based on on-hand supply

Advanced order promising

• Capable to Promise based on plan output • Allocation rules

Profitable to Promise

Web service enabled

In-memory engine

What-if simulation, alternate availability options, and tradeoff capabilities

Embedded analytics

Adopted from existing Oracle products

New to Fusion Global Order Promising


Start

Book CPE Install

Test Circuit

Book CO Install

Reserve Inventory

CPE Required? CO Install Required?

Wait for CO Install

Wait for CPE Install

Assign Port

Activate Billing

Wait for Request Date

Activate Circuit

End

Yes Yes

E

I

L

Integrate with Existing Assets With Task Layer Services / Interface Layer

Receive

Schedule

Ship

Payment

Generic

DOO

Services

Integration

Layer

Other Systems

E-Business

Suite

Siebel AIA

AIA

Fulfillment

Systems Orchestration

Process

• Pre-built orchestration

process web services to

execute user defined

fulfillment process steps

• Pre-built framework for

defining additional

orchestration web services

• External Interface Layer

(EIL) that abstracts external

systems from the orches-

tration process definition

(minimizing changes when

adding new capture or

fulfillment systems)

• Pre-Integrated with Siebel

Order Capture and eBS

Order Management using

AIA

• Extensible, SOA enabled

framework for flexible

integration to other

applications

14

Fusion Applications 100% Open Standards

Role-Based User Experience

What You Need to KNOW

What You Need to DO

WHO Can Help

HOW to Get it Done

Unified Information

Services

Intelligent Business Processes

Business Unit

Employee

Product

Customer

Date Effectivity Ledger

Organization

Trees

Territory

…

Java, BPEL, XML,

HTML, AJAX, Portlet,

RSS, Mobile, etc.

100% Open Standards


Orchestration

Warehousing

(Legacy)

ERP

(Legacy)

Telesales Direct Mobile Web Store

Logistics

(Partner)

Billing

(Oracle)

Business

Rules Customer A

Food

Non Food

Store Picking


Real Time ATP

Customer

Push

Customers

Publish

Pull


Store Picking

Multi-Channel Challenge - Exceptions

Warehousing

(Legacy)

ERP

(Legacy)

Telesales Direct Mobile Web Store

Logistics

(Partner)

Billing

(Oracle)

Exception

Mgmt

18

Improved Customer Satisfaction

• More accurate order promising

• Faster exception response

• Single face to customer

Faster time to Revenue for the Business

• Reduce fulfillment time

• Faster time to market for product

• Optimize fulfillment priorities

Lower Cost of Ownership for IT

• Increased architectural flexibility

• Transferrable IT skills

Benefit

Summary Oracle Fusion DOO Features and Benefits

• Global view of supply

• Proactive exception monitoring and

resolution

• A single, consolidated view of order status

• Consistent business process definition and

execution

• Highly adaptable & flexible business

processes

• Available To Promise Scenarios

• Standards based integration framework

• Declarative web based administration

• SOA based infrastructure

Feature

<Insert Picture Here>

Fusion Distributed Order Orchestration Demonstration 8 May 2012

20

Demo

• Look and Feel

• Review Orders

• Search for Orders in Jeopardy State

• Orders with no Risk

• Change Order for lower Jeopardy Status

• Check Avalability

• Re-Schedule

... If we have time:

• DOO Setup for Orchestration process


DOO Solution Components Built on Fusion Middleware

Middleware

Usage

•BPEL – pre-built

decomp,

defaulting,

assignment

processes

•OBR – decomp,

assignment rules

•BPEL – pre-built

orchestration manager,

user-defined processes

•Enterprise Manager -

debugging

•OBR – runtime process

logic

•Mediator – service

routing

•BPEL – pre-

built

processes,

web service

structure

•BPEL – standard

use for integration

•OBR – routing logic

•Mediator – service

routing

•BPEL – web

service structures

•ADF

•BI

•Enterprise

security

DOO Value

Add

Pre-built Order

facts for OBR

•Pre-built Order,

Runtime facts for OBR

•Direct BPEL creation &

execution from non-

technical UI

•BPEL forward &

backward planning

•BPEL change

compensation

•BPEL spawning for split

lines

•Dynamic service routing

•Order line grouping to

BPEL instances

•Gantt chart summary of

running BPEL process

•Pre-built order

orchestration

execution of

web services

•Pre-built task

layer web

service

creation

framework

•Generic web

service for new

service

creation

•Pre-built Order

facts for OBR

•Pre-built web

service for

dynamic mediator

invocation

•Simple UI for web

service registration

•Pre-built service

for status

aggregation,

update &

distribution

Pre-built order

promising web

services

•Pre-built order

orchestration

monitoring

pages

•Pre-built

embedded

analytics

•Pre-built roles

based security

Decomposition Orchestrate Start

Book CPE Install

Test Circuit

Book CO Install

Reserve Inventory

CPE Required? CO Install Required?

Wait for CO Install

Wait for CPE Install

Assign Port

Activate Billing

Wait for Request Date

Activate Circuit

End

Yes Yes

Task Layer External Interface Order Promising Workbench

Implementation Approach for Fusion DOO - some Elements -

22 | © 2011 Oracle Corporation

• Conduct Business Process review workshops at the start of the

project, e.g. 2 to 3 days each for

– Order Capture

– Order Orchestration & Status

– Order Production

– Jeopardy and Reporting

• Conduct a series of Conference Room Pilots (CRP) to validate

the solution approach and solution, e.g.

– one CRP1, one CRP2, one CRP3 and one User Acceptance Test (UAT) to

support the setup and testing of the Oracle Fusion Application footprint and

the required extensions, integrations and data conversions


World's leading provider of high-end digital printing solutions. Fully integrated, our vast digital footprint enables customers to print close to their distribution points and get to market faster with lower shipping costs and reduced environmental impacts..

Industry: Printing

Employees: 5,000

Revenue: $1B

Region: Global

www.cgx.com

Business Challenges

• Expanding domestically & internationally, while retaining local service

• Moving to Distribute-Then-Print model

• Replacing aging custom applications

• Frequent Acquisitions

Business Benefits / Solutions

• Reduced maintenance cost through use of off-the-shelf software

• Increased margins through distributed printing

• Better customer service through faster response to status updates

and exception management

Current Footprint

• Oracle eBS 12.1 Order Management, Manufacturing, Financials

DOO customers Consolidated Graphics

http://www.gehealthcare.com/


Industry: Industrial

Manufacturing

Employees: 82,000

Revenue: $13B

Region: Global

www.eaton.com

DOO Customers

Eaton

A leader in electrical control, power distribution,

uninterruptible power systems and industrial automation

products and services

Business Challenges

• Order capture silos create complex, inefficient processes

• No global visibility to inventory or orders

• Order fulfillment silos create data duplication

• Difficult to analyse order process performance


• Improve key business decisions through improved inventory

management and centralized views of global sources and shipping

• Improve customers satisfactions through decreased lead times, more

accurate promise dates and fast, accurate order status updates

• Increase employee effectiveness through streamlined, consistent

order processes

Current Footprint

• Oracle Financials, iStore, Order Management, Customer/Product

Master

• Siebel OnDemand

http://www.eaton.com/


DOO Customer

Aerospace

Industry: Aerospace

Employees: 157,000

Revenue: $68.4B

Region: Global

Large aerospace company, the #2 maker of large

commercial jets

Business Challenges

• High operation cost due to disparate and redundant processes

• Lack of automated process flow due to complex/immature processes

and lack of integration across systems

• Unacceptable amount of manual interventions in processing

exceptions and approvals


• Centralised orchestration processes

• Intelligent and automated routing of orders

• Decrease order entry and processing errors

• Consolidated view of inventory

Current Footprint

• Fusion Middleware

• Legacy systems for inventory, finance, logistics, transportation,

contracts.

26

Improved Customer Satisfaction

• More accurate order promising

• Faster exception response

• Single face to customer

Faster time to Revenue for the Business

• Reduce fulfillment time

• Faster time to market for product

• Optimize fulfillment priorities

Lower Cost of Ownership for IT

• Increased architectural flexibility

• Transferrable IT skills

Benefit

Summary Oracle Fusion DOO Features and Benefits

• Global view of supply

• Proactive exception monitoring and

resolution

• A single, consolidated view of order status

• Consistent business process definition and

execution

• Highly adaptable & flexible business

processes

• Available To Promise Scenarios

• Standards based integration framework

• Declarative web based administration

• SOA based infrastructure

Feature

27

Statement:

German e-Commerce Platform with

Multi- Channel Retail

Contract Logistic

different inhouse and connected Customer Ordering

Systems:

„DOO:

This is, what we are looking for.“