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Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Oracle Retail Planning & Supply Chain User Group Meetings Recap October 13, 2015

SIG Leaders: Bill Boezinger (Walt Disney Company) & Chris Hubbs (Best Buy)

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Agenda • Kick-off / Introductions – Chris Hubbs / Bill Boezinger

• Share Your Experience – Open Conversation

• User Group Meeting Format / Overview – Marc Koehler

• Session Overviews o Breakout Session: Advanced Sciences (Grocery/Hardlines vs. Fashion) – Marc Koehler

o Reducing Steps & Improving Results w/ Integration – Matt Jones

o Thinking About Upgrading – Matt Jones

o Breakout Session: Forecasting (Short/Long Lifecycle) – Mike Johnson

o AIP ‘Open Mic’ – Nick Oswald / Mike Johnson

• Closing – Chris Hubbs / Bill Boezinger

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Share Your Experience

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Oracle Retail Planning & Supply Chain User Group Meetings Day-by-Day ‘High Level’ Agenda

Tuesday, September 15th Wednesday, September 16th Thursday, September 17th Morning Sessions (9am) • Kick-off / Introduction & Goals

• Reducing Steps & Improving Results w/ Integration

• RPAS Platform Topics – v14.1 Focus

• Store Clustering Best Practices

Lunch (12:15pm)

Afternoon Sessions (1:15pm) • Thinking About Upgrading

• On-Premise, Hosted and Cloud Services

• RPAS Roadmap Prioritization

• Summarize / Wrap-up

Networking Dinner – Brio

Morning Sessions (9am) • Recap From Previous Day

• Advanced Sciences (Grocery/Hardlines & Fashion)

• Forecasting (Short & Long Lifecycle)

• Implementation / Upgrade Journeys & Successes

Lunch (12:15pm)

Afternoon Sessions (1:15pm) • Tech From A Business Perspective

• What's new in RDF, AIP, and RO

• AIP ‘Open Mic’

• Summarize / Wrap-up

Networking Dinner – McCormick & Schmick’s

Morning Sessions (9am) • Recap From Previous Day

• Forecasting for Promotions & Short-life Products

• Allocating vs. Replenishing

• Supply Chain – Roadmap Exercise

Lunch (12:15pm)

Afternoon Sessions (1:15pm) • Summarize / Wrap-up

Depart for ATL @ 2pm

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Roadmap Prioritization Exercise Directions

1. Take a stack of sticky notes 2. Write your top 10 or so priorities for the Platform (1 per sticky note) 3. Don’t boil the ocean with a single sticky note 4. We will take a short break 5. While on break, similar ideas will be grouped together 6. After break, you will receive 10 points. You can place 1 to 10 points on

any single, until you run out of points

RPAS Roadmap

Prioritization

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Breakout Session #1 Advanced Sciences Cloud Services Review Grocery / Hardlines Oracle Special Interest Group Meetings September 2015

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Localized & Customer Centric Assortment Optimizing Floor / Space Allocation

Pricing / Promotion Increasing Supply Chain Efficiency

• Category / Customer Analysis • Managing Roles, Strategies & Tactics • Category Relevant Store Clusters • Optimized and Targeted Assortments • Customer Decision Tree Analysis • Application of Demand Transference

• Rules Based • Acknowledgement of Local Competition • What-if Price / Promotion Optimization • Halo / Cannibalization

• Optimize Store Space Allocation • Shelf/Fixture Optimization • Floor Planning • Execution / Feedback Loop • Opportunity Analysis

• Composite Operational Forecast • Manage a Time-Phased View of

Inventory Positions • Optimization of Replenishment

Parameters

Product, Placement, Pricing & Promotion Maximize Customer Satisfaction While Improving Overall Performance of Every Store

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Macro Space Optimization

Assortment & Space Optimization

Retailer Specific POG Solution

Advanced Clustering

Enabling An End-to-End Process A Comprehensive Merchandise Planning Solution Footprint

Merchandise Financial Plans

Customer Decision Tree & Demand Transference

= ‘On-Premise’ Offerings Legend

= SaaS Cloud Offerings

Macro Space Management

(MSM)

In-Store Space Collaboration

(ISSC)

Category Planning

Assortment Planning & Optimization

Plan Assortments Plan Financials / Roles, Strategies &Tactics

Embedded Forecast / Inventory Planning

Optimize Space Floor Planning / Execution

Price / Promotion Planning & Execution

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Integration Reducing steps and improving results with better Integration to Reporting, other RPAS Solutions as well as Execution / Merchandising Solutions Oracle Special Interest Group Meetings September 2015

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Typical Integration Use Cases – The How 1. Share a Domain: Deliver 2 solutions in the same Domain (MFP and IP etc.)

2. Bulk Flat File Exchange: Overnight/weekend

3. Duplicate Measures: Copy data from workbook measure to integration measure during the day

4. Near Real Time / HSA: Store measures required for batch in RPAS DB and integration in Oracle DB

12

Merchandising RMS, RPM etc.

Planning, Supply Chain, Pricing &

Space

BI / Reporting - OBIEE

1 2

3

4

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Thinking about Upgrading What you need to know about upgrading to 14.1 and the business case for doing so Oracle Special Interest Group Meetings September 2015

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Why Upgrade? Business Case

• Save time in the Planning Process • Make the Planning Process easier to use and more intuitive with a more visual

experience • Execute and report on plans, forecasts and decisions in Near Real Time • Enable your Planners and Forecasts to “Work The Way We Live” • Reduce TCO

14

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Breakout Session #2 Long Lifecycle Forecasting Grocery / Hardlines Oracle Special Interest Group Meetings September 2015

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Market Trends – Gartner 2012

• #1 on the list in 2012 – Forecast accuracy and demand variability

• #2 & 3 – End to end synchronization & cross-functional collaboration

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 16

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Market Trends – RIS 2015

Oracle Confidential – Internal/Restricted/Highly Restricted

• 5 of top 10 – Tie to Forecasting

• The landscape is changing – the needs of

forecasting are shaping with it

• The needs for understanding customers will continue to grow

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Oracle Short-Life Approach Bayesian Adjustment Forecasting • Automatically adjusts the forecast using the

profile and actual sales • Useful in adjusting for ‘in-season’ and ‘in-

promotion’ trends • Forecaster can adjust the weight the plan

receives

Profile

Actual

Adjusted Forecast

Planning Process

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HISTORY Location Sales

Promotion History Customer Intent Data Cleansing

Lost Sales

PRICE & PROMOTION Promotional & Event Lift

Regular Price Change Halo & Cannibalization

ASSORTMENT New Items

*Demand Transference

EFFECT INTERACTION *Multiple Promotions

Causal Effects

Forecast Historical Performance

*New Functionality Introduced In V14

Composite Operational Forecast Planning Through Execution

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AIP ‘Open Mic’ Experiences & Questions on AIP – Led by Nick Oswald (Best Buy) Oracle Special Interest Group Meetings September 2015

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Quarterly Webcast Proposed Schedule

21

Commerce Merchandising Planning & Optimization Stores Supply Chain Technology Functional

*Hyperlinks embedded to pre-register • Oracle Open World – San Francisco, CA (Oct 25 – Oct 29)

o Oracle Open World – Industry Central – Retail • Oracle Industry Connect – Orlando, FL (Apr 12 – Apr 13)

SIG Q2 Q3 Q4

Commerce May 12 Aug 6 Nov 5

Merchandising Jun 4 Dec 3

Planning & Optimization Apr 30 Nov 19

Stores May 21 Aug 20 Oct 22

Supply Chain Jun 25 Oct 13 Dec 8

Technology Jul 30 Dec 17

Functional Dec 9

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RACK Retail Asset and Community Knowledge

22

• www.oracleretailrack.com

• Post-conference materials

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Planning & Supply Chain User Group Meetings Key Links

23

• Oracle Retail Newsletter (Click here to view in a Web Browser) o Link to subscribe to the Oracle Information InDepth - Retail Edition

• Oracle Retail Blogs:

o Commerce Anywhere Blog (Enabling Commerce Anywhere for the Retail Industry) o Oracle Retail Blog (Commerce Anywhere) o Hands On Retail Blog (Thoughts and experiences on Oracle Retail) o Ramnath’s Retail Technology Blog (Musings of an Oracle Retail Technical Consultant)

• RACK – direct link to:

o Oracle Retail Planning & Supply Chain User Group Meeting, Sept 2015 -Day 1 o Oracle Retail Planning & Supply Chain User Group Meeting, Sept 2015 -Day 2 o Oracle Retail Planning & Supply Chain User Group Meeting, Sept 2015 -Day 3

• Oracle Open World – Industry Central – Retail • Oracle Retail 15.0.x Release Value Propositions (RVP) (Doc ID 2061335.1)

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Get Involved!

24

https://www.surveymonkey.com/s/ORUG-GetInvolved

Survey to capture information/feedback from • Existing Members (feedback and updates) • New Members (enrollment)

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 25

Oracle Retail User Group Special Interest Group leader, Bill Boezinger, shares the mission of the Planning and Optimization SIG and explains participation opportunities for the Oracle Community.

Oracle Retail User Group president, ArMand Nelson, shares the value of participation in ORUG.

Oracle Retail User Group (ORUG)

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Thank You!

26

WebEx Recording – Contact SIG leader to request