3 Years Account Plan for Huawei Devices Co. Ltd2-Dec-2010

Larry Du – Account Manager, VCPEva Mai – Account Manager, ApplicationDavid Lee - KAD

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Huawei Device global footprint

StrategyPartnership, Customization and Value“We focus on the operator resale market to help customers meet the diversified device requirements of users, and provide consumers with rich and convenient communications experiences by providing a wide variety of network terminals”

Financial Highlight in 2009Contract value US$5B in 2009Projected contract value US$15B in 2015

Result of Operation in 2009Mobile broadband ranked #1, 35m units shippedMobile phone ranked #3, 30m units shippedHome device maintained steady growthVideo conference revenue increased by 40%

R&D & Sales49% of 6000 employees engages in R&DMore than 70 sales offices worldwide

Customers 48 of top 50 service providers 470 operators in 130 countriesAbove 75% of revenue from overseas market

Mobile BB36%

Handset27%

ADSL/ Set-top32%

Video Conf5%

Product mix

Business Goal of CEO, Mr. Tao

The goal:• Grow to a 15b company by 2015• Become top 3 mobile device provider

Areas to improve:• Operation Efficiency, including integrated delivery platform etc.• Channel management• Consumer brand• IT infrastructure (vs Apple, Samsung and Nokia)

Expectation on Oracle• Total solution• Share best practices in global device market• Long term partnership

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Oracle Financials

$5B Revenue

Mkt. Cap.

Company Ranking:

Forbes Global 2000 n/a

Country Exchange n/a

Executive Relationship - Customer OracleDirector – Guo Ping Steve Au Yeung

CEO – Tao Jingwen Marcus Tsoi / Casey Poon / Harry Ghuman

CFO– Yang Yuefeng Karen Yip / KK Pan

SCM Director – Zou Xiaohui Keith IP

BP&IT - Wang Xiumei Sabrina Su

Key Account TeamKey Account Director David Lee

Executive Sponsor Marcus Tsoi / Casey Poon

Client Advisor Clarence Wong

Customer Care Director / Manager Fubiao Zha

Customer Services Manager Ren Shu Qiang

Oracle Insight Sam Gu

GBU n/a

APPS Eva Mai

OFM Qiao Bin Zhang

TECH Jason Lin

Specialty Products Larry Du

Consulting Owen Tang

Oracle University Alice Deng

Support Jenny Ning

Alliances & Channels n/a

Account ProfileFinancial History

Account Information

% Contribution by LOB (FY11- FY13)

3 Year Business Potential

LOB FY08 FY09 FY10 Actual FY11 FY12 FY13 Potential

APPS 2,770 300 1850 4,920

OFM 700 250 950

TECH 500 500

Sys +supp

224 112 560 896

OCS 2,000 2,000 1,000 5,000

PS 763 121 517 1,401

ACS 500 750 1,250

OU 50 100 50 200

Total 6,507 3,383 5,227 15,117

3 Year Business Outlook

Apps

Tech

OFM PS

Sys

Sys S

upp

OCS

ACSO

U

-

500

1,000

1,500

2,000

2,500

3,000

FY1 1

FY1 2

FY1 3

FY11

FY12

FY13

Apps33%

Tech3%

OFM6%

PS9%

Sys5%

Sys Supp1%

OCS33%

ACS8%

OU1%

FY11-13 Potential

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Business goal of CEO (Mr Tao) :1. to improve operation efficiency,

customer satisfaction and gain market share.

2. to reach $15B by 20153. to invest IT transformation

• An Integrated Supply Chain (ISC) project for 3 years with a budget of RMB 100 million to fulfill on-time, low-cost and high quality delivery of devices (e.g. handset, USB, home-appliances, etc).

• Oracle started selling, consulting activities since Q1FY10

• PoC is planned on Dec 2010• Decision to select Oracle vs I2 in

Q3FY10

4. to move /transform to B2C • Huawei Devices Co. Ltd submitted a RFP to consulting firms in Sept 2010 to help on transforming from ODM to OEM model and establishing a consumer brand and an effective channel management

• In Nov, Oracle Insight senior mgmt visited Mr Tao (CEO) and committed an 7-8 wks Insight study.

• Continue to work with Miss Wang and Cliff Zhang on this transformation initiatives.

• IT strategy of Huawei Terminal may diverge from Huawei Technologies in channel mgmt and supply chain mgmt. We need to manage this diplomatically.

• Need to reach a level of IT maturity as world class players: Apple, Samsung,Nokia, etc.

• an independent company /subsidiary with its own customer service, IT and business process. This may result in heavy IT related investment.

• Developed a 3-year xLOB account plan for Huawei Terminal Co. Ltd. including executive coverage plan and relationship map.

• Oracle Insight will initiate a discovery process

• Recruit an OCA to manage the transformation of Huawei Terminal and Huawei Technologies.

Resulting in …Account ChallengesMitigation StrategiesAction Plan

Review by LOB – LOB Challenges and Action Plan

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Competitor and Partner AssessmentCompetitor Assessment

Page 6

Threat to LOB

Key Competitor Incumbent?

(Y/N)

Strategic to Customer?

(Y/N)

CustomerDriven

Revenues

Solutions Installed Key OpportunitiesWon

Aligned to who?

APPS PTC Y Y/N USD 1M PTC Huawei Tech

JDA/i2 Y Y USD 2M Factory plan ERP Planning Huawei Tech

OFM TIBCO Y Y USD 1M TIBCO EAI Huawei TMT

IBM Y Y USD 2M Websphere ULA Huawei TMT

OCS Accenture Y Y USD 20M+ Siebel CRM (on-going) LTC Huawei GTS

IBM Y Y USD 20M+ Consulting in IT, IFS IFS Huawei finance, Chen Zhao Hui

TECH N/A

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xLOB Opportunity Plan (3 Year Outlook)

SOFTWARE HARDWARE SERVICES

Customer'sBusiness Strategy

Business Initiative Oracle Solutions FY Qtr APPS BI/EPM TECH OFM GBU1st YearSupport @ 22%

SUNSystem

s

1st YearSupport@ 12%

OCS ACS OU TOTAL

Huawei DevicesISC

Phase 1a: SC Mgmt Foundations

EBS separate instance (service only), Product Collaboration, Product

Profolio Mgmt, PIM, ConfiguratorFY11 Q4          

-

   

2,000,000

 

100,000

2,100,000

Demantra (DM, SNOP), ASCP (CBO), PLM (Product Cost Mgmt,

Product Quality Mgmt), APCC, GOP,CP, AIA FP

FY11 Q4

2,500,000    

100,000

 

572,000      

3,172,000

Global SC Collaboration 1: WebCenter； GG;BPM

FY11 Q4      

500,000  

165,000

200,000

24,000

 

1,139,000

SDH, SLCM, Proc & Spend Analytics

FY11 Q4

150,000        

33,000

     

183,000

Phase 1b – Collaborative SC

IO, SNO FY12 Q3

300,000        

66,000

100,000

12,000

2,000,000

500,000

100,000

3,078,000

Global SC Collaboration 2: BPM for multiple instances

FY12 Q3       250,000   

-      

-

Phase 2 - Strategic and Advanced SCImplementation service FY13 Q2          

-

   

1,000,000

   

1,000,000

Maunfacturing: MOC, Oursoucing MES

FY13 Q2

1,000,000  

500,000

   

330,000

500,000

60,000

750,000  

3,140,000

Huawei DevicesLTC

Channel Management

Siebel PRM additional license FY13 Q3

300,000        

66,000

       

366,000

Demantra Trade Promotion Mgmt FY13 Q3

250,000        

55,000

       

305,000

Distributed Order Orchestration (Fusion)

FY13 Q3

300,000        

66,000

       

366,000

BI Apps Analytics for Partner (also part of BI project)

FY13 Q3

<200000>        

-

       

-

Contract Management EBS contract, BPM FY13 Q3                      

-

Huawei Terminal others

B2B Commerce iStore, Configurator FY11 Q4

120,000        

26,400

         

146,400

Web Portal WCM FY11 Q4      

100,000  

22,000

         

122,000

Light color font means Oracle sw asset already purchased in ULA License (3 Years) Support & Services (3 Years)

Apps BI/EPM Tech OFM GBU PS Sys Sys

Supp OCS ACS OU Total

Blue color font means overlapping sell in more than 1 business initiative

4,920,000

-

500,000

950,000

-

1,401,400

800,000

96,000

5,000,000

1,250,000

200,000

15,117,400 6,370,000 8,747,400

FY11   2,770,000

-

-

950,000

-

818,400

200,000

24,000

2,000,000

-

100,000

6,862,400     3,720,000 3,142,400

FY12   300,000

-

-

-

-

66,000

100,000

12,000

2,000,000

500,000

100,000

3,078,000   300,000 2,778,000

FY13   1,850,000

-

500,000

-

-

517,000

500,000

60,000

1,000,000

750,000

-

5,177,000   2,350,000 2,827,000

Director – Guo ping

S L H

IT Director – Wang Xiumei

T M M

CFO – Yang yuefeng

S H H KYip KK

IT manager - Liu zhibing

T M M EVA

SCM director – Zou xiaohui

U H M Keith

Relationship Map – LOB Account Coverage

CEO – Tao Jingwen

S H L

SAY

Sabrina

PM – Wu mingfu

C M M EVA

IT manager - Maggie Luo

T M M EVA

H.Gh

Report and Analytics

Business Intelligence

Huawei Terminal Future Application Architecture

Application Domain

Sales (iSales & Channel)

Customer Mgmt

Data Management Oracle Applications Integrations

Bid Mgmt

Order Mgmt (EBS)

Order Mgmt

Configurator

Advanced Pricing

Global Order

Promising

Product and Engineering (Agile)Product

Cost Mgmt

Product Quality

Product Portfolio

PTC

Product Collabora

tion

Lead Mgmt

Demand Planning

Hyperion Planning

Demand Mgmt

Sales & Ops

Planning

Forecast consump

tion

Logistics (OTM and EBS)Transport

ation Mgmt

WMSFreight Payment

Decision Center (VCP)

ASCP

Supply Capacity Material

Plan

APCC

Supply Chain Risk

Performance

SNO and IO

Mfg (EBS)

WIP

Procurement (EBS)

Purchase Order

Supplier VMI

MES

Mfg Quality

MOCCollabora

te Planning

Sourcing iSupplier Portal

Supplier Mgmt

Collaborate Integrate

WebCenter

Order Visibility

EMS

Product Engineeri

ng

Supplier

Master Data Mgmt

Customer Master

Product Master

AIA – PIP & Foundation Pack

Foundation Pack

Demantra to

Hyperion

Agile to EBS

Customer Pack

Product Pack

Security

OID

Access Manager Directory

B2B

iStore

Customer PO

Systems

Servers

Server Database Machine

Database

DB

Oracle DB

SOA - Tibco

Process Mgmt

Event Mgmt

Services Repositor

y

ESB

Data Integratio

n

Storage

Disk

Document

Documentum

Financial Analytics

SCM Analytics

Order Analytics

Procure Analytics

Spend Analytics

PLM Analytics

ContractContract Registrati

on

Contract Mgmt

Supplier Master

Financial (EBS)

AP FAAR CostGL CE

Trade Mgmt

Price Protectio

n

Market Develop

Fund

New

Existing Platform

3rd Party

Future

Legends

Purchased

Modules

3-Year Timeline for Huawei TerminalSupply Chain Management

Timeline

Y1Q1 Y1Q2 Y1Q3 Y1Q4 Y2Q1 Y2Q2 Y2Q3 Y2Q4 Y3Q1 Y3Q2 Y3Q3 Y3Q4

Foundations• ERP Study, Re-deployment

• Product Engineering

– Product Collaboration & Quality

– Product Supplier and Cost Mgmt

• Customer Order

– Configurator, Customer Portal

– Configurator, LTC Integrations

– Demand Management

Supply Chain Management• Order Visibility and Order Promising

• Supply Chain Command Center

• Order Fulfillment and Execution

• Logistics Management (Re-enablement)

Advanced Supply Chain Mgmt• Collaboration Planning• Strategic Network

Source: 9 pt gray placed here

Supply Chain Management Foundations

Collaborative Supply Chain and Decision

Center

Strategic and Advanced Supply

Chain

导入路线图

Low Medium

Cost/Complexity/Risk in Deriving Value

Hig

hL

ow

Me

diu

m

Str

ate

gic

Bu

sin

es

s

Va

lue

High

“Lo

ng

er T

erm

”

“High Focus” “Lower Focus”

ERP Study

Configurator Product Collaborati

on

Product Supplier

Demand Mgmt

LTC Integrations

Inventory Optimization

GOP

Global Logistics

Mgmt

Collaboration Planning

ASCPAPCC

协同平台

Strategic Network

Optimization

Channel Mgmt

MOC EMS

Report & Analytics

Phase 1 Phase 2Phase 3

Demand-EPM

Integration

MDM

2H FY11 Action items

Actions Owner

1. Plan activities in OpenWorld Beijing/Dec 2010• ISC (邹笑晖、吴明富 )• Transformation and IT (王秀梅、蒋新良 )• Channel Mgmt (张为党 )• Cover Huawei TMT on TECH/OFM (王涛 )

Larry, Eva, Jason, Qiao Bin

2. Define our solution’s differentiators in ISC

3. Oracle Insight Program

4. Develop Executive coverage plan

5. Develop system business

Keith, Liuwen

Sam Gu

David, Sabrina, Eva

Dalin Du, Michael Shao

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3 Years Account Plan for Huawei Devices Co. Ltd

Backup slides

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Apps Opportunity sizing

Software components

The VCP license contribute to the bulk of our potential license revenue. We must ensure our tactics will drive VCP license revenue.