Stephen Slade Sr. Director, Industrial Manufacturing September, 2006 Oracle Applications Marketing...

Stephen SladeSr. Director, Industrial Manufacturing

September, 2006

Oracle Applications Marketing

Asset Lifecycle Management

v3

Asset Lifecycle Management

Applications & Industries Marketing

CONFIDENTIAL – INTERNAL USE ONLY

7 killed; 76 injured….

Source: CNN, BBC,

The Headlines…Maintenance is Key



Marketing

• CEO Agenda• Sales Momentum • Market Drivers• Differentiators• Messaging• Call-to-action



Revenue Growth

Product Innovation /

Development

Globalization / Competition

Security / Compliance

CEO’s Agenda for 2007

Quickly incorporate knowledge into product cycle to spur innovation, reduce development time, and create more appealing products and services

Increase customer loyalty and retention through seamless, positive sales, product & service experience; loyalty leaders enjoy substantially higher growth rates

Develop single, complete source of business information; centrally manage privacy legislation and preference data to ensure compliance

Analyze information to identify and react to rapidly shifting global market opportunities and competitive threats more quickly and effectively



Oracle Industry Solutions Driving The CEO Agenda Complete, Flexible, Standards-based

ENABLEINTELLIGENT OPERATIONS

DRIVESMART

GROWTH

RISK, COMPLIANCE & GOVERNANCE

Lean, Agile, Demand Driven

Demand Driven Planning

Integrated Logistics

Advanced Procurement

Analytics for Decision Making

Siebel, Demantra

Profitable Innovation

Adaptive Fulfillment

Siebel/ Integrated CRM / Service Chain

Strategic Network Optimization

Analytics for Decision Making

Risk Mitigation

Compliance Management

Global, Local, Central

Security

Standards

Revenue Growth

Lower Costs, Improve

Efficiency

Globalize, Innovate

Risk, Compliance



Fixed Plant

Linear/Network Mobile/Fleet

Buildings &GroundsIT

Oracle Supports All Asset Types

Oracle Support All Asset Types



Spectrum of Service Functionality

Asset Base InvestmentSmallSmall LargeLarge

Ass

et I

mp

ort

ance

LowLow

Reactive ServiceRepair assets when neededRepair assets when neededReactive ServiceRepair assets when neededRepair assets when needed

Preventive MaintenancePlan & schedule proactive service based on unit Plan & schedule proactive service based on unit requirements to prevent possible failurerequirements to prevent possible failure

Preventive MaintenancePlan & schedule proactive service based on unit Plan & schedule proactive service based on unit requirements to prevent possible failurerequirements to prevent possible failure

HighHigh

Predictive DiagnosticsDynamic adjustment of service plans based on Dynamic adjustment of service plans based on user-defined limits / controls / triggers / eventsuser-defined limits / controls / triggers / events

Predictive DiagnosticsDynamic adjustment of service plans based on Dynamic adjustment of service plans based on user-defined limits / controls / triggers / eventsuser-defined limits / controls / triggers / events

Enterprise Asset MgmtIntegrated service & production schedule Integrated service & production schedule for complete enterprise integrated viewfor complete enterprise integrated view

Enterprise Asset MgmtIntegrated service & production schedule Integrated service & production schedule for complete enterprise integrated viewfor complete enterprise integrated view

Complexity

Complexity

Self Service

Remote DiagnosticsAbility to assess performance on a remote basis

Disposable



Know your assets!

• Units of assets• Value• Classes• Depreciation• Tax credits• Unique id• Replacement• Disposal• Service



Market Drivers

• Globalization• New low cost markets• Cultural variations• Long supply chains

• Revenue and margin pressures• Competition• Energy and inflation• Disruption



Market Drivers

• Integration• Fewer IT platforms & applications• Improved communications• Support and upgrade

• Consolidation• Mergers and acquisitions • Deal with fewer suppliers• Higher value optimization



Market Drivers

• Customer Acquisition & Retention• CRM – customer relationship management• Customer loyalty• Analytics, Propensities

• Employee Acquisition & Retention• Shifting demographics• Training and certifications; re-skill• Knowledge management• Compliance



Market Drivers

• Digitization• Automating the process • 80-85% of activities considered non-value added• Use of Lean 6 Sigma principles



Sales Momentum

• FY06 sales consistent with overall apps sales• eAM Sales

• ~ 50% Manufacturing

• ~ 10% Utilities• ~ 10% Natural Resources• ~ 10% Public Sector• of note Education, E&C, Transp

• eAM Implementation• Growing consistent with sales• Tends to be second phase of implementation



Differentiators

• Integrated tech stack

- workflow, FOL, Tutor, Discoverer

• Embedded intelligence• Commitment to our market & industry• Long term viability



Messaging

• Oracle Asset Lifecycle solutions are the industries leading software applications that allow firms to increase their equipment reliability

• Better visibility • Improved scheduling• Higher predictability



Foundation: Global Asset RepositoryAchieve a Single Source of Truth About Your Assets

Eliminate Cost and Complexity of Multi-Vendor Systems

GlobalGlobalAssetAsset

InformationInformation

GlobalGlobalAssetAsset

InformationInformation

• Capital budget• Book value• Cost history• Leases• Ownership• Tag number

FinanceData

• Downtime / repair history• Failure & reliability analysis• Maintenance schedule• Asset configuration• Location

MaintenanceData

• Production schedule• Occupancy• Capacity• Regulatory and

compliance policies

OperationsData

“Operators”

“Maintainers”

“Owners”

Foundation: Global Asset Repository



What needs to be accomplished

• Convert transactions into interactions• Interactions become collaborations

• Doing more with less• Higher reliability at lower costs



What needs to be accomplished

• Capture the Knowledge (KM/KB) • Convert supply chain to value stream • Embark on a “Lean Journey”• Impact of a digitized world

• What this means to us



Case Study & References

• Case Study & References• York

• Dresser – Rand

• Pella



Customer Success Profile: Dresser-Rand

COMPANY OVERVIEW

• Manufacturers and Services

rotating operating equipments

in over 50 countries in energy markets

CHALLENGES/OPPORTUNITIES Facing Global competitions, margins

eroding Workforce retirements means loss of

knowledge base Need for single global instance to reduce

IT exposure Comply with regulatory and governance

issues

SOLUTIONS Standardize with a single ERP Supplier

Institute programs as Lean and Six-Sigma

Provide Staff with information and analytical tools to perform at a higher level

CUSTOMER PERSPECTIVE

RESULTS Project: Single Global Process Standardized on Oracle E-Business Apps Information available real-time on core decision

processes Connected partners, channels and stakeholders Auto-alert system of metrics out of range Supply Chain improves throughput over 25% Standardized metrics, benchmarks and business

rules across all locations

“We’ve implemented operational excellence, lean manufacturing and numerous process improvement projects, resulting in greater manufacturing productivity, reduced scrap and rework, shorter cycle times and lower material costs. We are on a continuing journey focused on driving operational excellence…..”

Source: 2005 Annual Report, letter to shareholders, Vincent Volpe, Pres & CEO



Customer Success Profile: Pella Windows and Doors

COMPANY OVERVIEW• Manufacturers wood and vinyl windows

and doors for residential markets distributed

through retailers, builders and local supply

firms, 10 plants, 7500 employees

CHALLENGES/OPPORTUNITIES Facing local competition from small and

global suppliers in lower cost regions (China)

Unstable local building markets New delivery channels thru big-box

stores causing margin erosion Lack of national service network

SOLUTIONS Standardize with a single ERP Supplier

Institute programs as Lean and Six-Sigma

Provide Staff with information and analytical tools to perform at a higher level


RESULTS

““The obvious benefit of Oracle across the organization

is seeing everything going on at the same time. Everybody's making decisions from the same data. The visibility allows us to optimize across the entire business.”

Stephen Printz, CIO, Pella Corp. Pella

RESULTS:

• Better understanding of the end customer

• Consistent data collection across the process

• Accurate and shared customer information

• Segmenting customer by value

• Work flow & accountability rules

• Seamless integration of Pella division’s customer service processes



Customer Success Profile: York HVAC

COMPANY OVERVIEW

• Manufacturers, supports and services

HVAC systems for hi-end building markets

CHALLENGES/OPPORTUNITIES Market downturn after 9/11 caused margins

to erode Aging workforce and pending retirements Need to develop alternative survival

strategy Paper based systems were consuming

inordinate amount of time Service and safety manuals not updated Missed sales leads and lost opportunities

SOLUTIONS Standardize with a single platform

Convert manuals to computer based knowledge centers for quotes, appraisals and asset histories

Provide laptops to all field employees


RESULTS Added competitive units to their service base Built new multi-million $$ pipeline for service offerings Connected all field employees with laptops in vans Information available real-time on core decision

processes for field quotes and appraisals Connected to suppliers, stakeholders and logistics Real time access to repair status information Reduced call center staff by 40% Standardized metrics, benchmarks and business rules

across all locations

“ Since launching Oracle, YORK increased service sales productivity by 20%, lowered service response time from days to minutes, identified 6,000 new service opportunities worth hundreds of millions in revenue, and reduced the time required to share asset site inspection data from six weeks to one day.”

-- Bob Wernly, VP of Total Quality Mgmt

Stephen Slade Sr. Director, Industrial Manufacturing September, 2006 Oracle Applications Marketing...

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