The OBM Business Model Overview Release 5.0

2. OBM Oracle Business Models The OBM Business Model Overview Release 5.0

3. What is OBM? Oracle’s Business Process Model • Communicates information about Oracle’s E-Business Applications... • Links Oracle Applications to the common language of business process models • Preconfigured models reduce time & risk • Improves Training & Control during implementation

4. Procure to Pay Manage Requisitions Approvals Purchase Orders Approvals PR1180 Manage Non Production Requisition PR0128 Authorize Requisitions PR1182 Issue A Purchase Order PR0129 Authorize Purchase Order • Vision Corporation needs new monitors for their desk tops. A requisitioner in the creates a requisition defining the needs. • The department manager approves the requisition. • The buyer approves the requisition. • The buyer creates a purchase order for the selected supplier of the monitors. Receiving and Inspection Supplier Invoices Accounts Payable MM1136 Receive Material MM1135 Accept or Reject Deliveries PR1010 Manage Supplier Invoice PR1016 Generate Payments Vision Corporation Purchase Agent • The monitors arrive at the receiving dock. • The received material is inspected and approved. • The AP Clerk receives the invoice. • The invoice is matched against the purchase order. • The invoice is approved for payment. • The invoice is approved by the accounting manager. • The accountant sends the check to the supplier. Purchase Mgr Dispatcher Accountant What do Oracle’s customers want? Business - NOT just Product / Technology Stack Oracle Application Oracle Application Oracle Application Oracle Application Server Oracle 9i

5. What is OBM? • Models • Oracle Business Flows • OBM Business Model • Oracle Tutor Procedures for OBM • Methods • OBM Process Library • OBM Standards • AIM for Flows • Business Flow Accelerators

6. Plan Source Make Market Sell Support Product Development Operations Mgt Sales Mgt Customer Interaction Mgt Requisitions (PRS03) PR1181 Select Suppliers PR1180 Manage Non Production Requisition PR1026 Manage Production Requisitions Procurement Marketing Mgt Value Chain Planning & Forecasting Materials Mgt Order Fulfillment Customer Service Mgt Supplier Contracts Supplier Management Requisitions Purchase Orders Financial Management Human Resource Management Back Office Approvals Non Product Receiving Supplier Invoices Accounts Payable Project Management Enterprise Management Collaborative and Marketplace Services Collaboration Mfg/Supply Chain CRM Enterprise (Back Office) Collaboration Oracle Business Model

7. The Source: OBM Process Library • One sheet per Functional Area • Processes defined by level: Functional area, Summary • Process, Business Process • Over 750 Business Processes • Business Reference Library

8. Tutor Procedures for OBM Mapped to OBM business processes Text Based Task Lists Automated Flow Diagrams Oracle Application Navigation Can be customized and linked into Oracle Applications as help text

9. Requisitions (PRS03) Approvals (PRS05) Purchase Orders (PRS04) PR1180 Manage Non Production Requisitions PR0128 Authorize Requisitions PR1933 Issue a Non Production Purchase Order • Create a requisition defining the non production, service, administrative, items needed. • Requisition may be for Fixed Assets or non catalog items or one time purchases. • Requisitions may be maintained, modified, or canceled. • Requisition approved via Workflow based on Hierarchy, Job/ Supervisor Setup. Approvals can be controlled using amount or account code. • PO can be automatically created via Workflow from Requisition. • PO can be auto-created manually from a Requisition. Approvals (PRS05) Non-Production Receiving (PRS06) PR1029 Authorize Purchase Orders PR1935 Receive Non Production Goods & Services Roles Supervisor • PO’s approved via Workflow based on Hierarchy, Job/ Supervisor Setup. Approvals can be controlled using amount or account code. • The non-production goods arrive at the requisitioner/receivers desk. • Two-Way or Three-Way Matching. • Ability to control Receiving Routings. • Receive using express transactions for fast data entry. Requisitioner Purchasing Flows: Getting down to the business…

10. What is new in OBM (12/02)? • 115 Certified Oracle Business Flows • 550 Tutor Procedures built for OBM Business Processes, replacing Visio Swimlane diagrams • 1200 Business Processes • Industry Models • All Business Flow Accelerators Reference OBM Business Processes – BP.080; many new business processes support these

11. Using OBM and Flows Business Insight Business Solutions Business Processes • Consensus Building • Scope Definition • Prescriptive Flows • Custom Flows • Client Business Model • Long lived procedures • Use OBM as the baseline for modeling business processes • Capture issues and actions on processes • Assemble Business Flows to define overall solution • Implementation approach: • AIM for Flows

12. Using OBM: Implementation Successful Implementations of Applications On Time & Within Budget Objective: Means: • Flow based • implementations • 2) AIM Current to Future • State Mapping • 3) Training • 4) Procedures Process Gaps & Issues List 1. mmmm 2.mmm mmm 3. mm m mm

13. These business flows clearly explain how Oracle APS would manage my planning! Why OBM? • Improves Customer / Applications Provider commumication • Helps Oracle think in the customer’s terms • Addresses Business Management, not just feature/function • Provides a structured approach to managing a business with Oracle • Business Flows can be used in any business as a prescriptive model • Preconfigured models reduce time & risk of implementation • Provides the tools to develop a Customer specific Process Model • Procedures integrated into Oracle Applications can become living documentation