the value of the oracle demantra benefit analyzer

Industry specific cover image

Timothy Hughes – Business Development Director – VCP - EMEA

Sean Monahan – Senior Director, Oracle Insight Global ScalabilityThursday 5th March 2009

The Value of the Oracle Demantra Benefit AnalyzerTool (BAT) for EMEA Sales, Specialty Sales & Pre-Sales

2Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.

Agenda

• What is a Benefit Analysis Tool (BAT)?– Business Case Capabilities

• How to use the BAT

• BAT Process

• Value Chain Planning (VCP) – Business Drivers– VCP – Best in Class Vs Laggards

• Case Study – Volvo Penta

• Final Thoughts– Criticality of the Business Case Showing a Quick ROI in a Down Turn

– Other Ideas on Getting the Total Project Cost Down

• Next Steps

• Questions and Answers


The Oracle Insight Benefit Analyzer Tools (BAT’s) Will Help You and Your Sales Teams to, …

• Qualify Target Companies Better and Faster

• Accelerate Your Sales Cycles

• Grow (or Hold) Your Deal Sizes

• Minimize Your Price Discounting

• Increase Your Win Rates


How to Access the 12 Oracle Insight BenefitAnalyzer Tools (BAT’s) & the CPT

Over 5,700 cases

in CY2008 alone!

http://insight.oraclecorp.com,then select BAT & CPT Quick Links

(top upper-right-hand side)

Direct Links (For Bookmarking):

BAT: http://tools-insight.oraclecorp.com/bat

CPT: http://tools-insight.oraclecorp.com/cpt

Available BAT’s (12):

•Business Intelligence

•Customer Relationship Mgmt

•Financial Mgmt

•Human Capital Mgmt

•Master Data Mgmt

•On Demand

•Oracle Demantra

•Oracle Process Manufacturing

•Oracle Transportation Mgmt

•Procurement

•Product Lifecycle Mgmt

•RGBU


The Benefit Analyzer Tool (BAT): Value Information and Business Case Capabilities

• What is it?– Web-enabled solution pillar and module

specific value calculator– Reference tool for value messaging at any

stage of the deal

– Available for 12 areas today• Most effective for:

– Demand Generation– Quick ROI estimate (budgeting)– Full collaborative business case

• Success metrics:– 5,700+ uses since Jan ’08– 2,000+ users globally– Usage by SC, Specialty Sales, OD, ASM,

IBU, Insight and others• Field feedback:

– “Great encyclopedia of value info”– “Very credible and efficient with customer”


How the Sales & Sales Support Field Uses the Oracle Insight Benefit Analyser Tools (BATs)

• With Upsell Customers and Prospective Customers

– Demand generation, for example, Forensic Accounting

– Preliminary benefit analysis

– Proving our Supply Chain Credentials

– Full-scale return-on-investment (ROI) analysis

• Industry Best Practice Metrics and Bench Marking

• ROI Tied to Oracle Solution

• Transformation Plan

– Partners Willing to Commit to Payment on Benefit

• Work with Partner and Oracle Finance to Smooth Payment Profile to Benefit Realisation Model.

• Even When No ROI Has Been Requested

– Discovery-question preparation – Link Benefit to a $Value

– Justifying Scope Increase

– Show value of implementing software licenses already purchased or implementing upgrade


Each BAT allows the customer/prospect to assess the value of the chosen application in collaboration with the Oracle team, based on market-proven value levers, independent third-party benchmarks and Oracle application benefits, while easily and quickly generating the corresponding business case/ROI along with the supporting presentation materials.

• Step 1: Preparation (typically 1-2 hours)

• Step 2: Information Discovery (typically 2-4 hours)

• Step 3: Benefit Validation (typically 4-6 hours)

• Step 4: ROI and Final Presentation Validationwith Champion (typically 4-6 hours)

• Step 5: Final Presentation to Board and C-LevelExecutives (typically 1-3 hours)

Total Typical Customer/Prospect Investment: 12-25 hours

The Value of Oracle TransportationManagement (OTM) for McCain Foods

Friday, 15 February 2008

BATs’ Value and Process for Customers/Prospects


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Value Chain Planning (VCP)Best in Class vs Laggards


Potential ROI - Example

Reduce Days on

Hand

Increase Fill Rate

Increase Direct Ships

Reduce Waste

Reduce Finance Charges

I tem # ABC Company XYZ Companya Quarterly cost of sales £715,250,000 £247,500,000b % of sales that are not direct ship 50% 50%c Days of inventory currently carried 262 367d Target days of inventory 261 366e Annually non direct ship cost of sales £1,430,500,000 £495,000,000f 1 day of inventory £3,919,178 £1,356,164g $ carried £1,026,824,658 £497,712,329h Projected $ Inventory Carried £1,022,905,479 £496,356,164

INVENTORY REDUCTION £3,919,178 £1,356,164

h Current fill rate 95% 95%I Target increase in fill rate 1% 1%j Target % of recovered sales 10% 10%k Annual Sales 9762000000 3280000000l $/point fill rate £10,275,789,474 £3,452,631,579

REVENUE INCREASE £10,275,789 £3,452,632

m Projected $ Inventory Carried £1,022,905,479 £496,356,164n Target increase in direct shipments 1.0% 1.0%o INVENTORY REDUCTION £10,229,055 £4,963,562

q Obsolete Inventory 1000000 1000000r Target reduction in obsolete inventory 60% 60%

INVENTORY REDUCTION £600,000 £600,000

s Monthly finance charge to hard commit inventory £200,000 £200,000t Target reduction 10% 10%

REDUCE FINANCE CHARGES £20,000 £20,000

14,148,233$ 6,319,726$ 620,000$ 620,000$

10,275,789$ 3,452,632$

4

5

TOTAL 1st Year Cost SavingsTOTAL 1st Year Revenue Increase

TOTAL One Time Inventory Reduction

Assumptions1

2

3


S&OP – What Value?

ChallengeChallenge S&OP Impact S&OP Impact DriversDrivers

Improved revenue and profit growthImproved revenue and profit growthReduce price protection claims by 40%Reduce price protection claims by 40%

Increase Increase Promotion Promotion

Effectiveness Effectiveness

Target promotions to local Target promotions to local demographics, predict demographics, predict sales volume increasessales volume increases

Drive Top-Line Drive Top-Line RevenueRevenue

Customer Collaboration Customer Collaboration Initiatives, VMI, Improve Initiatives, VMI, Improve forecast accuracyforecast accuracy

Improve Improve Customer Customer

ServiceService

Improve service levels and Improve service levels and reduce inventory, logistics reduce inventory, logistics costscosts

Reduce Inventory up to 8%Reduce Inventory up to 8%Reduce logistics cost up to 65%Reduce logistics cost up to 65%Reduce returns up to 25%Reduce returns up to 25%

Enable Enable Sales & OpsSales & Ops

PlanningPlanning

Balance Supply & Demand, Balance Supply & Demand, Operate to a single planOperate to a single plan

Consensus demand statement cutting Consensus demand statement cutting across organizational boundaries, across organizational boundaries, shaping demand to supply constraintsshaping demand to supply constraints

Reduce Stock-outs up to 15%Reduce Stock-outs up to 15%Increase order fill rates up to 40%Increase order fill rates up to 40%Increase forecast accuracy by 45%Increase forecast accuracy by 45%


Demand Driven Leaders Are Efficient…

• 15% less inventory

• 17% stronger order fulfillment

• 35% shorter cash-to-cash cycle times

….And Outperform Their Competitors:Increased gross marginHigher customer retention

Demand-Oriented Value Chains Deliver Superior Performance

Best-in-Class Average Laggards

Sources: AMR Research 2005-2007; Aberdeen Group 2006-2008; Oracle Insight

Best in class vs. Laggards


Volvo Penta Oracle Confidential and Internal Use OnlyCOMPANY OVERVIEW

• Volvo Penta supplies Marine engines produces in Sweden, China and the US to global commercial and leisure market

• Volvo Group has got a SAP strategyBusiness Objectives:

•Shorten lead time, increase product availability, improve cash flow.•Implementation of a global, integrated and optimised supply chain process based on a standard software solution

Related Business Strategy:•Create a new and globally centralised planning function •Automate business processes as much as possible.•Growth objectives•Cost and capital efficiency•Customer satisfaction

THE DEAL• Date Won: May 2008

• Oracle Solution – Sales and Operations Planning (S&OP).• $1.0 Million• Customer came to us in April and said they want a smaller

scope to the project and to make this commitment in June.• Business Case enabled us to hold the deal value Vs the proven

business case. We showed that if they delayed the project it will cost them more.

ORACLE SALES TEAM PERSPECTIVE

“The CIO and project team are hard-line negotiators that operate in an industry that is known for low margins. The attitude of management is, ‘every Krona saved goes directly to the bottom line which gives the company additional money to spend on our manufacturing operations.’ … The Demantra Business Case helped us hold our pricing with Volvo Penta’s executive management. After Volvo told us that they would slip the decision to June we were able to show them that the delay would cost them 450K Swedish Krona each month they delayed. The cheaper situation was to buy the software. All of my selling situations from now on will use a Business Case.”

Ernst Stegwee, Oracle ASM


Final Thoughts

• Given current economic downturn and customer/prospect requirements, we are seeing at least two buying processes on every deal:

– Business Case / Capital Expenditure (Capex) and Opex Process

–Software Evaluation Process

BAT’s can help you (proactively) deliver the Business Case–Keeping the Deal Size Up

–Limiting Cancelled or Delayed Projects – Compelling Reason

–Provides a Discussion Ground for Up and Cross Sell

–BUT – Keep your Powder Dry This is Wasted Below C-Level!

In the Current Economic Climate –

It Is Usual to Show a

Demonstrable ROI of 12 - 24 Months


Accelerators• Provide the foundation to

packaged solutions

• Package the right flows with the right bundle of applications for midsized organizations

• Partners extend Business Accelerators to create industry and region-specific application configuration packages

EducationAudio

Business Flow Models & Video’s

Reports &Templates

How ToGuides

Test Scripts

Setup Tools

Speed to Value - Business Accelerators

•Reduce the cost of the Implementation

•Speed to Benefit – Quick Win


Where Do we Go From Here?

• Sean Monahan and the VCP Team to – Offer Training over the web

– ‘Hand-hold’ you on your FY09 Q4 ROI Outcomes

– (Even if the customer is paying an SI to do the ROI, we can still assit both the prospect and SI.)

– Support can be ‘over the web’ or ‘onsite’ through the EMEA VCP team.

Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.

For existing and new Edge opportunities

Add the Co-Prime Rep to the Sales Team

Add the relevant product as a Product Line

Final Request


Klaus MehrGermany, CH &

Nordics

Roger Turner- VPVCP EMEA

Glen CampbellSenior Sales Consultant

VCP EMEA

Vikram SinglaSenior Sales Consultant

VCP EMEA

Joachim SchulteSenior Sales Consultant

VCP EMEA

Andy RobertsonUK, Ireland, Israel &

Benelux

RecruitingItaly, Spain, Portugal &

France

Tamer FaroukVCP / OTM / PLM

MEA

Timothy HughesBus Dev Director

VCP EMEA

RecruitingVCP / PLM

CIS

Correct as of 19th January 2009

Cyril LacroixSenior Sales Consultant

TPM EMEA

Janos JaholaVCP / PLM

EE

Marcin PodwojskiSenior Sales Consultant

VCP / PLM EE

Sharon EliasiSenior Sales Consultant

VCP EMEA

Value Chain Planning (VCP) Organisation Chart


Contacts

Name Role & Expertise Email

Timothy HughesBus Dev Dir Value Chain Planning (VCP), EMEA

[email protected]

Sean MonahanSenior Director, Oracle Insight Global Scalability & IBU

[email protected]

For Oracle Demantra Benefit Analyser Tool (BAT)

Training, Assistance and Deal Support – Anytime!

mailto:[email protected]

AQ&

Questions

Questions

Finish

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the value of the oracle demantra benefit analyzer

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