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Oracle Product Lifecycle Management

Oracle Product Lifecycle Management. Accelerating New Product Introductions. Michael Ger Director Business Development Hardeep Gulati Director Product Management. Your Company. Analyze & Rationalize. Prototype & Test. Production. Maintenance. Retirement. Concept. Develop. Release.

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Oracle Product Lifecycle Management

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  1. Oracle Product Lifecycle Management Accelerating New Product Introductions Michael Ger Director Business Development Hardeep Gulati Director Product Management

  2. Your Company Analyze & Rationalize Prototype& Test Production Maintenance Retirement Concept Develop Release New Product Development & Introduction (NPDI) Post-Release Suppliers Customers Product Lifecycle Mgmt At-a-Glance “Managing a product over its lifecycle means having access to a central and secure source of product information and a comprehensive set of collaboration tools. Because of our complex product configurations, we require an integrated system that brings together all areas of a business including SCM, CRM, finance and HR, so that product information is managed and leveraged across the enterprise.” -- Ken Bettger, Director, Advanced Product & Process

  3. “70% of the organizations surveyed admit to making short-sighted IT decisions to meet their users’ immediate needs.” – IT Spending and Demand Survey Operational ChallengesEvolution and Change are Persistent… • Islands of Data Created by: • Mergers and Acquisitions • Going Global • Rushing to Market • Departmental Priorities and Politics • IT Quality Gaps Occurring from: • Supplier / Customer Mandates(e.g., GDSN*) • New Government Regulations • Isolated Business Processes • Best-of-Breed Applications • Self-Service Systems *Global Data Synchronization Network

  4. Information Flow Challenges Multiple Definitions, Limited Collaboration, Linear Product Life Product Lifecycle Flow Corp. Planning Design / Engineering Marketing / Sales Manufacturing Service ProductDefinition A ProductDefinition B ProductDefinition C ProductDefinition D ProductDefinition E Company 1 ProjectPlan 2 ProjectPlan 3 ProjectPlan 4 ProjectPlan 5 ProjectPlan 1 CollaborationMethods Phone Mail Fax E-mail ProductDefinition F ProductDefinition G ProductDefinition H ProductDefinition I ProductDefinition J Company 2 ProjectPlan 7 ProjectPlan 8 ProjectPlan 9 ProjectPlan 10 ProjectPlan 6 Corp. Planning Design / Engineering Marketing / Sales Manufacturing Service Product Lifecycle Flow

  5. Data Transfer (PDM to Enterprise) Manufacturing/ERP/CRM Design System • Transfer ECR/ECO • Release to Mfr/ Co-Mfr • Receive changes Prototype & Test Concept Develop Release Sell Support Retire Product Introduction ChallengesDisconnected, Inaccurate and Slow What are the impacts on design? What are the impacts to manufacturing? • Impact on design/quality? • Impact on customer requirements? • Total cycle time • Partial change rollout errors • Impact on resources? • Impact on mfr processes? • Impact on purchase orders? • Impact on sales orders? • Impact on installed base?

  6. Product Development Cause: Low visibility of new product info across teams Effect: Delays in time-to-market and time-to-volume Marketing & Sales Cause: Inaccurate product information to channels Effect: Weak market penetration and product launch delays IT Cause: Maintenance of ever-proliferating data sources Effect: Resource consumption at an exponential growth rate Operations / Manufacturing Cause: Inability to share master product information Effect: Redundant sourcing and manufacturing processes, lower quality, and increased waste Corporate Governance Cause: Poor product visibility and history Effect: Costly adherence to regulatory standards (RoHS, WEEE, 21 CFR Parts 820 & 11) Service Cause: Lack of clear relationship between products and spare parts Effect: Service inefficiencies and customer dissatisfaction …and their Cost

  7. Typical life-cycle curve for a Product 1 • Typical price/margin erosion 2 • Reduced time to market will shift this curve to the left, and reduced time to volume increases gradient 3 • Allowing a period of sale at higher margin. 4 • . . .or a period of sales with no competition or erosion 5 • Reduced time to market also provides the opportunity for increased volume/market share through early entry 6 The value of shifting the curve Sales Time Margin

  8. Revenue $500m Rev from NPI $104m NPI Cycle time 12 months NPI Cycle improvement 6 weeks Projects impacted 75% Margin 15% $104m/52 = $2m $2m * 6 = $12m $12m *75% = $9m Example TTM Revenue acceleration $1.35m Bottom line profit improvement

  9. LMW has used an unified information architecture and a large footprint of Oracle E-Business Suite to automate its complete production, sales and product development cycles… we have already seen positive results from the implementation of Oracle. -- Sanjay Jayavarthanavelu, Director One of the key features of Oracle PLM is the extensibility of the software. It’s a configurable software that will meet our vision: The cross-functional usage of an integrated Bill of Materials. Also, the fine-grained security model is going to go a long way toward meeting our requirements to share information but also to make sure that we protect the information. -- Mark Routson, Head of Information Technology What Customers are Saying…

  10. What Customers are Achieving… Consolidated onto a single product definition system for engineering, sales, and manufacturing Enables 6,000 North American stores to access key information necessary for product selection Expects to reduce part search times and change order cycle times to shorten product development time by 75% We will be adopting UCCnet standards using Oracle's product catalog as our data repository. Organizing these disparate data elements will pay huge dividends, beyond compliance with customer needs. It will streamline our product development process and offer huge process improvements throughout sales, marketing, and product engineering.-- Jim Johnson, Director, Information Services

  11. A Few More Customers . . .

  12. How OracleDelivers

  13. Oracle Product Lifecycle Management Portfolio Management * Enterprise Integration Procurement Advanced Collaboration Tools Project Management Internal Finance /Costing Engineering Develop Service InventoryManagement Market Requirements Specifications Drawings Schedules Defects Orders Marketing Manufacturing ProductData Hub Fulfill Plan Marketing& Sales External Manufacture Sell Customers Service Procure Sourcing Configuration XML Suppliers Product Intelligence Registry Product Info Confirm Msgs * Coming in a future release

  14. Oracle Product Lifecycle ManagementEnables You To… • Consolidate and Centralize All Product Data • Securely Collaborate with Extended Enterprise • Standardize and Control New Product Introduction • Drive Better Product Management Decisions

  15. * Oracle Product Data Hub Solution Other Apps / Systems Consolidation CAD / Engineering ERP Manufacturing CRM Access& Search Import & Synchronization ProductData Repository Online Catalog Customers / Suppliers Data Quality & Change Control Data Pools Syndication & Publication UCCnet / GDSN** Output(print catalogs,data sheets, etc.) XML *Or other third party middleware **Global Data Synchronization Network

  16. Structured & Unstructured Data MgmtSupport All Types of Information Related to an Item • Capture operational info and specifications • Manage product configurations Structured Data Attributes Bill of Materials • Attach documents to an item, BOM, or change order • Check-in / out documents withversion history • Search documents based on content or its attributes Unstructured Data Item Word documents Spreadsheets Images,CAD drawings PDF documents(data sheets)

  17. Category Electronic Components Category H i e r a r c h y Part # ____ Manufacturer ____ Price ____ Attribute N ____ Category Attributes Category Resistors Category Capacitors Part # ____ Manufacturer ____ Price ____ Attribute N ____ Ohms ____ Part # ____ Manufacturer ____ Price ____ Attribute N ____ Microfarads ____ Inherited Attributes Unique Attributes Item Master CatalogClassify All Products and Components • User-defined category hierarchy • User-defined attributes for each category • Attribute inheritance for easy maintenance • Assign products and components to categories

  18. Item Master • Extensible Attributes • Define to meet enterprise needs • Form / fit / function • Sales and Marketing • Create as many as required • Support multiple formats (e.g., number, date, string, multi-row) • Tie to user-defined functions • Add easily via intuitive UIfor business process administrators Attribute 1 Attribute 2 ERP OperationalAttributes Base attributes for inventory, planning, distribution, sales, etc. Attribute N Attribute N+1 Attribute N+2 Attribute N+3 Extensible Category AttributesAdd User-Defined Attributes to Capture All Product Info

  19. Item Operational AttributesStreamline Management of Operational Systems Update attribute values Example: Planning View pre-populated information fromPlanning system Single UI to manage all operational attributes

  20. Browse Category Hierarchy Category Search Attributes Search Components by Specification Values (and compare search results) AttributeValues Choose Best Fitting Component Best Component Unified Product Catalog SearchQuickly Find the Best Component for Re-Use

  21. EngrBOM MultipleCAD Systems SalesBOM SalesConfigurations IntegratedBOMRepository MfgBOM GlobalMfg Plants ServiceBOM ServiceOrganizations Integrated BOM* ManagementCentralize Product Structures from Multiple Systems • Integrate product structures from all systems in one central place • Manage complex attributes and documents associatedto product structures • Support collaboration on product configurations with extended product team • Single place to manage changes to all the product configurations *Bill of Materials

  22. Third-PartyApplications Product DataRepository LegacyApplications Customers /Suppliers Multi-System SynchronizationDrive Accurate Information to Your Extended Enterprise • Integrate synchronously or asynchronously with other systems • Create single blended record from multiple sources and then synchronize from product data repository to other systems • Connect via embeddedintegration services, suchas rich set of public APIsand business events • Store and managecross-reference mappingfor ongoing synchronization* *Coming in a future release

  23. Syndication to GDSN / UCCnetShare Standardized Data with Trading Partners (1) Build product data to GDSN / UCCnet specs Registration & Syndication (2) Upload data (5) Request data (3) Receive confirmation ProductDataRepository (Supplier) TradingPartner (Customer/ Retailer) (4) Send list of authorized partners / GDSNData Pool (6) Receive data (8) Upload changes (7) Update product data • Ensure product data is properly formatted and complete via pre-packaged, data pool-specific attributes and validation • Accurately transfer data via certified, pre-packaged messages with acceptance / exception handling and status notification

  24. Oracle Product Lifecycle ManagementEnables You To… • Consolidate and Centralize All Product Data • Securely Collaborate with Extended Enterprise • Standardize and Control New Product Introduction • Drive Better Product Management Decisions

  25. Centralized Data Components& Structures Documents Issues &ChangeOrders Projects The Dilemma of Centralized Information Centralizing Data Introduces Risks and Challenges The Balancing Act… Providing Easy Accessfor many internal / external users while Enabling High-Speed Searchesacross huge volumes of data while Protecting Intellectual Capitalfrom unauthorized users

  26. ProductData Repository Solution: Role-Based Access via BrowserProvide Stakeholders with Easy, Secure Access to Info Your Company Design Marketing Sales Purchasing Service Finance Mgmt • Secure Access Based on • Job function • Product responsibility • Data type (e.g., summaryvs. detail) • Global Access • Office and home • Customer & supplier sites • Airport terminal • Other Customers Partners OEMs Consumers Distribution Service Mfg • Browser-based for fast roll-out and user adoption • Streamlined, configurable UIs for higher utilization

  27. Advanced Collaboration Services Internal Web-BasedAccess Mfg Engineering All Other Depts • Project Data • CAD Designs • Specifications • Docs / Files • E-Mails • Voice Messages Integrated E-Mail, Fax, Voice Mail CAD Review External Suppliers Customers Partners Web-BasedAccess Scheduling, Web Conferencing Document Mgmt Role-Based Security Oracle Advanced Collaboration Share the right information, with the right people, at the right time by automating & optimizing collaborative business processes.

  28. Online CAD Sharing and Markup Securely Share Drawings and Designs • Streaming-BasedCAD View & Mark-Up • Product data queries • Mark-ups • Perspective views • Sectioned views • Animations • CAD format neutral • Spontaneous access without download • Web Conferencing • File sharing • Desktop sharing • Application sharing • Co-browsing • White boarding Project Mgr., E & C Contractor There’s plenty of clearance over the decking Assure “single source of truth” via central hosting

  29. Person A Person B ElectronicRouting Person C Person D Document Tracking, Sharing, Approvals Improve Efficiency and Reduce Review Time • Establish shared document repository forproject team • Use Oracle Files with PLM document management • Integrate with legacy enterprise document repositories via WebDav protocol • Organize via foldering and versioning • Control documents with secured check-in and check-out • Route documents for review and approval • Collaboratively review CAD data in real-time via CADView-3D streaming

  30. Workflow-Driven Product Change ProcessEliminate Errors and Delays with Process Automation ID Issue Assign& Notify AssessImpact Review Approveor Reject • User-Defined Change Types • Streamline Review and Approvals • Facilitate Multi-Company Collaboration Create Change Request Cost Schedule Alerts &Notifications Product Manager Dispositions Workflow Driven ImplementChange Test &Approve Review CreateWork Pkg Create Change Order Org 1, Org 2, …

  31. Collaborative Issue ManagementEfficiently Identify and Manage Product Improvements Disposition Capture Collaborate Track proper disposition for issues throughclosed loop system Collect product issues from different sources Build consensus onissue resolution • Assure capture of all issues via easy-to-access, enterprise-wide system • Provide secure accessfor customer andsupplier participation • Use advanced and keyword search to quickly find related issues • Build consensus via discussion threads andapproval routings • Track change implementation for issues that need to be resolved • Manage progress and status using flexible reporting

  32. Oracle Product Lifecycle ManagementEnables You To… • Consolidate and Centralize All Product Data • Securely Collaborate with Extended Enterprise • Standardize and Control New Product Introduction • Drive Better Product Management Decisions

  33. New Product Introduction Shorten Time to Market for New Product Launches New Product Definition & Approval Process Gather New Product Ideasand Requests • Capture ideas / issuesfrom multiple sources Evaluate Product Ideas toAssess Viability and Feasibility • Route for analysis • Capture evaluation details Enforce corporate best practicesfor repeatable processes and highest quality Provide audit trailto meet regulatory requirements Define Product with Input fromExperts in Cross-Functional Groups • Automatically route concurrent requests for definition & approval Execute Product Development Project • Manage tasks and deliverables • Coordinate progress andstatus reporting Prepare for Product Manufacturingand Launch • Capture all product informationin single repository • Share information with value chain

  34. Product Innovation ManagementCentrally Process New Ideas for Definition & Feasibility Manage and prioritize ideas via centralized system integrated with product information Enable product mgmt, engineering and other functional areas to collaboratively define ideas via streamlined workflow processes Ideas Easily capture ideas from extended enterprise with a flexible UI Products Collect Define Analyze Prioritize Route for approval of feasibility and viability analysis Time

  35. Projects Products Integrated Project and Product MgmtStreamline Project-Based Development Processes • View Impact of Projects and Products on Each Other • View all projects related to an item • Track projects to reduce product risk • Schedule slippage • Budget overruns • Control Items Over Entire Lifecycle • Define allowable transactions and changes by project phase • Enforce company-defined item policies by phase • Launch Attachment Views Directly from Project Environment • Attach technical documentsto projects • View 2D and 3Dtechnical documents

  36. Project-Based Process Management Sales Financials ResourceManagement Project Management Funded Research / Work HR • Plan Project • Manage Change • Manage Performance • Update Skills • Match Resources • Track Utilization Facility / Construction Mgt Procurement Asset Mgt Inventory GlobalProject Repository Research &Development Manufacturing • Update Progress • Review Documents • Resolve Issues • Track Effort/Costs • Manage Contract/Billing • Capitalize Assets • Cross-Charge Information Technology Sales / Contracts Marketing Asset Mgt Accounting & Operations Collaboration Other InternalProject Work DocumentRepository Portfolio Planning * Strategic Initiatives CAD / Product Info Demand Built-In Enterprise Integration Personalized Role-Based Views * Coming in a future release

  37. New Product Introduction with OracleEfficient, Fast and Collaborative NPI with Supply Chain Release Sell Support Retire Develop Prototype & Test Concept Co-Manufacturing w/ Oracle PLM/Mfg/SCM Oracle PLM Change Mgmt CAD System CAD System Oracle PLM Product Data Editor • Product Release to multiple orgs • Multi Org BOM Mgmt • Multi Org Change Propagation • Defining and Managing EBOM & MBOM • Validate/Collaborate on design information with extended product team • Phase Gate Approvals • Manage Release Configurations • Enforce Change control • Streamlined approvals of production changes across supply chain • CAD Publishing to EBOM/MBOM

  38. Integrated Multi-Org Change ManagementDesign Anywhere Build Anywhere Design Localization Design Organization Co-Mfr Organization #2 Dynamically Changing Product Definitions Contract Mfr Mfr Org #1 Sourcing sub-components Design Localization/Mfr Organization Mfr Org #3 Supplier of sub-components Mfr Org #4 Build everything

  39. Oracle Product Lifecycle ManagementEnables You To… • Consolidate and Centralize All Product Data • Securely Collaborate with Extended Enterprise • Standardize and Control New Product Introduction • Drive Better Product Management Decisions

  40. Consolidated Product PerformanceProvide Comprehensive View from Single Location Engineering & Mfg Supply Chain Mgmt Sales & Marketing • Bookings • Order backlog • Return value • Inventory • Unit cost • Part count • Mfg steps • Change orders • # of leads • Sales forecast • Open opportunities ProductPerformance Dashboard Service Finance • Service requests • Service contract value • Revenue • Expenses • Product margin

  41. Product Performance • Profit Margin • Revenue • Costs • Sales Forecast • Number of Leads • Service Requests • Order Backlog • Inventory Value • Part Count • Change OrderCycle Times … View By: Product Customer Organization Sales Region Line of Business Time Periods Multi-Dimensional AnalysisDissect Performance for Decision Making • View performance summaries viaout-of-the-box KPIs, graphs, and charts • Drill-down to transactionlevel details

  42. Product Intelligence Delivers Answers Accelerate Product Management Decisions • What is my unit cost and is it increasing or decreasing? • How many unique parts are we using in our products? • How long are change orders taking to process? Engineering • What is the sales forecast for my products? • What is the open opportunity amount for my products? Sales & Marketing • How is my product fulfillment performance? • What is my product inventory value? • How many products are being returned and why? Supply Chain • How many service requests are open for my products? • What is the service contracts balance on my products? Service • Are my products profitable? • Which products are generating revenue? • What are my product-related expenses? Finance

  43. Summary View: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons Real-Time Results Links PerformanceMeasures Graphs Reports • Daily updates on key performance indicators • Actionable information on savings and incremental revenue opportunities

  44. Drill-Down: Product Profitability Choose Product Category Revenueand Costs Margins Drill-Down into Each Product Category

  45. Drill-Down: ECO Cycle Time Trends Count Cycle Time Distribution Details

  46. Oracle Product Lifecycle Mgmt Solution Single master repository,role-based access, unifiedpart search, data synchronization Consolidate and Centralize Product Data Multi-mode access, documentand CAD sharing, closed-loop issue / change management Securely Collaborate with Extended Enterprise Standardized process steps and deliverables, resource allocation, cost controls, status dashboard Control and Standardize New Product Introduction Complete view of product performance with real-time,accurate reporting and analysis Drive Better Product Management Decisions

  47. Product Lifecycle Mgmt: Key Products Portfolio Management * • Project Mgmt & Collaboration • Project planning & tracking • Budgeting & cost control • Change & issue management • Project Resource Mgmt • Resource availability & deployment • Resource skills matching • Project Costing & Billing • Cost consolidation & spend control • Invoice generation Advanced Collaboration Tools Project Management • Oracle CADView-3D • Multi-user review & mark-up • Change managementintegration • OracleCollaboration Suite • Integrated document management • Email, calendar, internet conferencing • Version control Develop Service & Maintain Market ProductData Hub Fulfill Plan Manufacture • Oracle Sourcing • RFx support • Multi-round negotiations • Bid analysis and awarding • Oracle Configurator • Manage configuration rules • Validate sales orders • Generate correct BOMs & routing Sell • Oracle Advanced Product • Catalog • Product Catalog • Multi Org BOM Management • Integrated Change management • Idea Management Procure Configuration Sourcing Product Intelligence Oracle Product Data Hub & Product Data Librarian Oracle E-Business Intelligence • UCCNet integration • New item definition & request • Product Catalog • Extensible Attributes • Engineering & Mfg • Manufacturing • Supply Chain Mgmt • Sales & Marketing • Service • Finance * Coming in a future release

  48. Support Global OperationsThink Globally, Act Locally • 30 Languages • Multiple Currencies • Customers in 100+ Countries • All Languages Installable in Same Unicode Instance • Support for Statutory and Customary Local Requirements

  49. Time Modular ArchitectureImplement Based on Your Business Priorities • Implement by Business Flow • Start with one flow, demonstrate initial success • Add more flows to expand business coverage • Support changing business needs • Flows are Seamlessly Integrated • Replace disparate systems • Eliminate data synchronization • Decrease time and cost to implement

  50. Oracle’s Experience with Linux Production Midtiers100% Linux Production DB RAC Cluster (Unix) Demo Environments 100% Linux Development 100% Linux Outsourced Customers 70% Linux Lower Total Cost of Ownership (TCO) Run on a Single Global Instance Consolidate Data Centersand Databases • 3x Faster, 5x Cheaper • Easy to Automate en Mass • Highly Reliable Low Cost Linux Hardware YouManage: OracleManages: Roles: Needs: Availability Security Performance Change Problems E-BusinessOn-Demand 50% Lower Cost 50% Better Svc Core Competence Predictable Cost App Admin DB/AS Admin Sys Admin HW Admin

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