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Agenda

Oracle Trade Management Presenter: Pankaj Tiwari , Manager Enterprise Applications A Kumar Acharya, Business System Analyst Eswar Vadya, Business Architect (Vibrant Infotech) Norcal OAUG - Jan 17,2008. Agenda. Introduction History of Marvell Marvell’s Journey Milestones

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Agenda

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  1. Oracle Trade Management Presenter:Pankaj Tiwari , Manager Enterprise Applications A Kumar Acharya, Business System Analyst Eswar Vadya, Business Architect (Vibrant Infotech)Norcal OAUG - Jan 17,2008

  2. Agenda • Introduction • History of Marvell • Marvell’s Journey • Milestones • Problem Statement • Objectives • Implementation • Lessons Learnt • Q & A

  3. History of Marvell • Founded 1995 • Fabless semiconductor • Global operations • Israel • Europe (Germany, Italy, Switzerland) • Asia Pacific (Singapore, India, Japan & China) • USA • Annual Revenue ($MM) • FY 2002 288.8 • FY 2003 505.3 • FY 2004 819.8 • FY 2005 1,224.6 • FY 2006 1,670.3 • FY 2007 2,095.2 • 5000+ employees across US, Europe and Asia

  4. Marvell’s Journey AUG 2001 Galileo Go-live on Oracle Apps 11.0.3 DEC 2001 Upgrade Oracle Apps 11i (11.5.4) JAN 2002 Convert Oracle Apps to Multi-Org and Fiscal Calendar MAY 2002 Migrate North America to OM/FI to Oracle Apps 11i OCT 2002 Go-live OSFM OCT 2002 Implement Rosettanet PIP 3D8 with 10 Sub Contractors AUG 2003 Install Oracle 10G iAS for Rosettanet DEC 2003 Upgrade Oracle Apps to 11.5.9 JAN 2004 Migrate SysKonnect GmbH from BAAN to Oracle Apps 11i FEB 2004 Migrate RADLAN IL to Oracle Apps 11i (New Company) APR 2004 Install UTF8 to accommodate multi-byte characters SEP 2004 Implement Basic HRMS DEC 2004 Implement WEB based Employee Expense System for North America JAN 2005 Implement Compensation Work Bench JUL 2005 Implement Phase 1 ASCP (Wafer Buy Plan) AUG 2005 Upgrade Oracle Apps to 11.5.10 JAN 2006 Integrate Q-Logic Acquisition FEB 2006 Integrate UTStarcom Acquisition APR 2006 Integrate National Semiconductor Acquisition MAY 2006 Integrate Avago Acquisition MAY 2006 Implement Marvell Penang Ltd (New Company) OCT 2006 Implement Marvell Switzerland Ltd (New Company) NOV 2006 Integrate Intel Acquisition NOV 2006 Implement Marvell DSPC IL (New Company in Israel) FEB 2008 Implement Trade Management for Avenet and Nu Horizon

  5. Milestones

  6. Problem Statement • Marvell acquired more than 25 distributors through acquisition • Contracts based on individual distributors • Pricing and Discounting are manual and maintained by marketing on Excel • Distributor Revenue and COGS are tracked on Excel and transfer to oracle in GL • Knowledge to recognize revenue limited to individual person and maintained in Excel sheets for Distributors • Custom software for Financial Planning to do analysis on distributor revenue and inventory

  7. Objective of Trade Management Marvell wanted to ensure that the following key objectives were met by implementing Oracle Trade Management. • Implement Oracle Trade Management is to eliminate manual process in Claim, Inventory tracking and POS data reconciliation. • Weekly tracking of distributor revenue ,claims and cogs • Use EDI/Rosetta net to exchange information with distributors • Automate the reconciliation process to reduce the burden on Revenue group.

  8. Continued… • Ensure that the automated reconciliation process generates adequate audit trail to meet the SOX compliance requirements • Ensure that the solution implemented is both scalable and low maintenance • Use oracle standard APIs and Business events to build extensions and discoverer reports for reporting needs.

  9. Implementation Team MIS Team • 1 Manager • 1Sr Business System Analyst • 1 Consultant • 2 Programmer Analyst User • Senior Sponsor (VP of Finance) • Senior Management from various functional areas • 4 Key Users

  10. Approach Implement Oracle Trade Management as solution for Distributor revenue reconciliation process. This implementation was broken down into different phases • Phase1 – Feb 08 • POS Processing • Claim Process • Indirect Inventory Tracking • Distributor Part Number Mapping • Offers • Phase2 • Partner Management • Advance Pricing • Special Pricing Request • Quoting

  11. GAP Analysis • Split of revenue into Deferred Revenue and reserve • COGS Processing • Deferred COGS • COGS Recognition • Link between Item cross reference and Distributor Cross reference • Calculate the average sales price • Standard Reports • User interface

  12. Processes – Ship and Debit • Distributor Shipment • Orders will be booked in OM with Order type Distributor • Revenue will be split into two. Distributor price list will hit deferred revenue account. Difference between Booking Price and Distributor price will hit reserve account. • Revenue and COGS will hit Deferred revenue and Deferred COGS at the time of Shipment • Price List and Item Cross reference • Oracle distributor price list will be loaded in oracle as Offers • Revenue users will do quarterly distributor price update • Item cross reference between Marvell part no and Distributor Part no will be maintained in Trade Management • POS data can be loaded using ADI( Application Desktop Integration) or via B2B

  13. Processes – Ship and Debit • AR Process • Claim will be created based on the claim amount provided by distributors • Revenue amount will be created by Selling price provided by distributors • Claims will split in two portion • Difference between Marvell Booking Price and Distributor Price will hit deferred revenue account • Difference between Distributor Price and BCN Price will hit reserve account • Distributor provided purchase price will be recognized as revenue ( GL Journal Entry) • Costing Process • Based on POS data , Deferred cogs will be transferred to COGS ( GL Journal Entry) • For Quarterly cost update , Discoverer report will calculate the cost adjustments. Users will do manual journal entry in GL for cost adjustment.

  14. POS and Claim Processes Account Receivable General Ledger Enter Disti Order Shipping to Disti Start End Offers POS & Claim Data Claim Creation Claim Approval CR Memo Create Upload POS and Claim Verify and Process POS Inventory Update COGS & Revenue

  15. High Level Design Extension design

  16. Offers Upload • Upload Quarterly Distributor Price List • Used oracle standard API to upload offers

  17. Point Of Sale (POS)

  18. Continued…

  19. Revenue and Cost • Automate adjustment journal creation for Revenue and Cost • Used oracle standard interface to create journals • Used oracle standard account Generator workflow modification

  20. Continued…

  21. Discoverer Reports

  22. Claim Process

  23. Claim Split

  24. Claim Details

  25. Continued …

  26. Inventory Tracking

  27. Continued…

  28. Results Marvell derived the following key benefits • Weekly Deferred Revenue and Disti Inventory Tracking • Centralized POS and Claim Process • Common Discounting rule and exception process • Auto journal for Revenue adjustment and COGS adjustment • Centralized reporting for Revenue, Marketing and costing team • Auditing is much easier after establishing the process

  29. Lessons Learnt • Planning is a key to success. • Identify the Key Users for detail information and make sure they are engaged from start to finish • A phased implementation approach. • Open to Extensions and report customization. • Open to Patches and Oracle TARs; • Good and effective communication between process changes

  30. Q & A

  31. Contact Details Name : Pankaj Tiwari E-Mail : ptiwari@marvell.com Name : A Kumar Acharya E-Mail : aacharya@marvell.com Name : Eswar Vadya E-Mail : evadya@vibrantinfotech.com

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