Oracle Mdm Business Case

<Insert Picture Here>

MDM ROI Model and how Zebra Measures Implementation Payback


Program Agenda

• Introduction

• Why Build A Business Case For MDM?

• How To Build The Business Case For MDM?

• How Can Oracle Help?

– Insight Overview

• Zebra Case Study

Why Do Our Customers Engage in MDM Projects?

Revenue Generation /

Customer RetentionBetter

OperationsRisk

Management Compliance

Cross-Sell / Up-Sell 1st Time Accurate Deliveries & IT Costs

Data Loss Prevention Law Enforcement / Privacy

Differentiated Service Delivery

Advertising & Promotion Spend

Fraud Prevention Homeland Security

Scenarios: MDM as

A Foundation of CRM Plans

An Add-on toCRM

Rationalization of ERP Envt

Part of a Middleware

Architecture PlayA Standalone Application

1 2 3 4 5

3

MDM Delivers Value To Customers Across Four Domains

4

Growth Efficiency IT Agility Compliance

CUSTOMERS ON AVERAGE GENERATED 2%-5% INCREASED REVENUE FROM SALES WITH MDM

EFFICIENCY OF OPERATIONS INCREASE WITH IMPROVED PROCESSES AND DATA GOVERNANCE

EFFICIENCY OF IT OPERATIONS RESULTING IN GREATER AGILITY OF BUSINESS MODELS

EFFICIENCY OF IT OPERATIONS RESULTING IN GREATER AGILITY OF BUSINESS MODELS

Sources: Oracle Benchmarking, Oracle Insight analysis

Case Studies: Growth

Why:Why:Why:

What:What:What:

So what:So what:So what:

A single view of customer across the 100+ life and non-

life insurance policies, pension funds and employee pension schemes in Poland

Going live on Customer Hub with about 1.5 million customer

golden records

2 % increase in amount of insurance premium collected

12 % reduction in marketing reach costs

5% increase in cross-sell/up-sell*

Customer hub along with Siebel CRM

A large US Retail grocery chain

Enable loyalty program, drive up- sell and empower self service

Improved marketing response resulting in increased gift card

order sales by 5%Increased sales from loyalty

cards customers by 1%

* Expected benefits5

Case Studies: Efficiency

Why:Why:Why:

What:What:What:


Streamline GGB Global supply chain and provide an acquisition platform

Live on Oracle Customer and Product Hub integrated with

ERP systems with no disruption

Improved inventory levels by 5%Reduced order lead times by 2%Increased order returns by 15%

Support total customer satisfaction goals with single view of customer data for company’s mobile devices

division

Centralized B2B customer master in a single instance

Reduced sales cycle time (B2B) by 3%

Reduced sales order errors by 20%

A large telecom manufacturer

6

Case Studies: IT Agility

Why:Why:Why:

What:What:What:


Support KPN’s business transformation from product

to customer centric enterprise

Live on Oracle MDM with Informatica Power Center &

DQFoundation to CRM & BRM

$1.8 million savings in IT project costs

7

Streamline complex marketing & account management processes

Provide single view of its customers to every store

Oracle Customer Hub feeding to marketing application Dunnhumby,

SAP ERP & CRM

Improved marketing campaign response rate by 15%

Reduced maintenance costs by 10% by sun-setting legacy applications

Reduced sales order errors by 20%

A major big box retailer

http://www.nokiausa.com/index

Case Studies: Compliance

Why:Why:Why:

What:What:What:


8

Customer Hub as a foundation to CRM , Supply Chain Mgmt

Improve relationships and service to its customers in an ever changing

organizational environment

2% reduction in credit risk costs75% reduction in annual

compliance costs

A leader in electricity transportation & distribution

CIS legacy inflexible and too expensive to maintain & evolve

Live on Customer Hub with 14,000 users and 400k tx /day

peak operations

Anti money laundering compliance

A large bank in Asia- Pacific region


Program Agenda

• Introduction






10

Companies Want IT to Deliver More Business Value Do More With Less

Source: Accenture IT Spending Survey

Today’s IT Desired IT

New Capability

Sustaining & Running Existing

Capability

New Capability

Existing Capability

30%

70%

55%

45%Increases Value Creation

Decreases Maintenance &

Delivery

$ $

11

MDM Initiatives Deliver ROI By Reducing Spend And Enhancing Revenue

Income Statement

% of Rev

$1B Company

Reduce IT by 10%

Reduce Non-IT

SG&A by 10%

Increase Revenue by 10%

Revenue 100% $1,000M $1,000M $1,000M $1,100M

CGS 50% $500M $500M $500M $550M

Margin 50% $500M $500M $500M $550M

Non-IT SG&A 30% $300M $300M $270M $300M

IT 4% $40M $36M $40M $40M

R&D 5% $50M $50M $50M $50M

Subtotal 39% $390M $386M $360M $390M

EBITDA 11% $110M $114M $140M $160M

$ Change $4M $30M $50M% Change 4% 27% 45%

Source: Forrester Research and Oracle analysis

4.1%

IT SPENDING(% OF REVENUE)


Program Agenda

• Introduction






13

High Level Approach To Develop The Business Case Link The Value To Current Business Pains And Gaps

Assess Process

Performance & MDM Maturity

Identify Benefit Drivers, Costs &

Calculate ROI

Develop Solution

Footprint & Implementation

Plan

Step 1: Assess Process Performance & MDM Maturity

Analysis Framework Capability Maturity Models

Assess Process

Performance & BPM

Maturity

Identify Benefit

Drivers & Calculate

ROI

Develop Solution


Plan

14

15

Step 2: Develop Solution Footprint & Implementation Plan

Assess Process

Performance & BPM

Maturity

Identify Benefit

Drivers & Calculate

ROI

Develop Solution


Plan

Impact on architecture Implementation Roadmap

16

Step 3: Identify Benefit Drivers, Costs & Calculate ROI

Assess Process

Performance & BPM

Maturity

Identify Benefit

Drivers & Calculate

ROI

Develop Solution


Plan

Benefit Drivers and Costs ROI and Payback

Copyright ©2009, Oracle. All rights reserved. Oracle Confidential 26

$8M$6M$4M4. Improved Customer Retention

$20M$15M$12M5. Reduced Data Management Costs

$16M$12M$8M6. Reduced Sales Order Errors

$10M$8M$4M7. Reduced Sales Cycle Time (B2B)

$8M$5M$2M8. Improved Campaign Response Rate

$11M$8M$6M9. Reduced Integration Costs

$8M$5M$3M10. Reduced Time to Take New Application/Project to Market

$27M$25M$22M13. Reduced Report Generation Costs

$166M$126M$88MTotal Annual Steady-State Benefits

$11M

$6M

$5M

$2M

$3M

CONSERVATIVE

$17M

$8M

$15M

$10M

$8M

AGGRESSIVE

$15M12. Reduced Non-Compliance Risk Costs

$7M11. Reduced Credit Risk Costs

$10M3. Reduced Marketing Mailing costs

$5M2. Improved Call Center Productivity

$5M1. Increased Cross-sell/Up-sell

PRAGMATICBENEFIT OPPORTUNITY

MDM Benefits

Source: Customer discussions and discoveryNotes: Numbers show undiscounted benefits. NPV of these benefits are shown elsewhere

SAMPLE


$M$6M4. Implementation of New Software

$M$1M3. Implementation of Existing Software

Implementation*

Other Costs**

$0.1M$1M6. Training/Change Management

Software*

$0.2M$0.5M7. Other (travel, administrative, etc.)

$2.9M$20.5MTotal

$2M

$10M

ONE-TIME

$0.4M5. New Hardware/Infrastructure

Hardware/Infrastructure*

$2.2M2. Annual Maintenance

1. Application Licenses

ANNUALCATEGORY

Estimated MDM Associated Costs

Source Oracle & Customer Estimates

Notes:• * Costs are provided as estimates• ** Cost estimates are based on customer data• Does not factor in fixed costs of employees assigned to project• Implementation estimates are provided by customer

SAMPLECopyright ©2009, Oracle. All rights reserved.

Oracle Confidential 28

A 5-Year Analysis of Both MDM Costs & Benefits Shows a Strong Return for Company X

$28$10M$5M$5M$5M$3M-3. Reduced Marketing Mailing costs$20$6M$4M$4M$4M$2M-4. Improved Customer Retention$57$15M$12M$12M$12M$6M-5. Reduced Data Management Costs

$12M$8M$8M$8M$4M-…

Benefits

300%ROI$NPV

$$$$-$-$Net Benefits

$$2.2$2.2$2.2$2.2$5.2$14.4Total$$$$$0Other Costs (travel, admin., etc.)

$$$$$0Training/Change Management$$$$$0New Hardware/Infrastructure

$$$$$3M$2MImplementation of New Software

$$$$$0Implementation of Existing Software

$2.2M$2.2M$2.2M$2.2M$2.2M$2.2MSoftware: Annual Maintenance$$$$$$10MSoftware: Application Licenses

Costs$NPV of Benefits

$212$79$49$49$49$26$Total$16$5M$3M$3M$3M$2M-13. Reduced Report Generation Costs

$29$8M$6M$6M$6M$3M-12. Reduced Non-Compliance Costs$12$5M$2M$2M$2M$1M-11. Reduced Credit Risk Costs$22$8M$4M$4M$4M$2M-10. Reduced Time to Market

$12$5M$2M$2M$2M$1M-2. Improved Call Center Productivity

$16$5M$3M$3M$3M$2M-1. Increased Cross-sell/Up-sell

TOTALYEAR 5YEAR 4YEAR 3YEAR 2YEAR 1YEAR 0CATEGORY

SAMPLE


Annual Cash Flows and Payback Analysis Demonstrate Clear Value to Company X Over the Life of the Project

Payback: ~24 mo.Payback: ~24 mo.

Note: Numbers in $ Millions; WACC =10%, as provided by Company X

$M 5-Year Total Benefits

INVESTMENT COSTS AND BENEFITS$ Millions

NPV: $M, ROI:300%

NET PRESENT VALUE$ Millions

-$1.5

-$1.0

-$0.5

$0.0

$0.5

$1.0

$1.5

$2.0

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

-$1.0

-$0.5

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

BenefitsCosts

Payback: ~12 mo.

SAMPLE


Program Agenda

• Introduction






Oracle InsightTM Helps Customers Realize Value Throughout The Technology Investment Lifecycle

PLAN

MEASURE

TRANSFORM

OPTIMIZE

Accelerate Business Transformation by Aligning

Project & Business Objectives

Align and Measure Business Initiatives Against Planned

Objectives

Establish the Business Case and Roadmap for Technology

Investment

Continuously Unlock More Value from Technology

Investments

18

Leveraging Skilled Business Strategist Working Collaboratively With You To Enable Greater Business Value

A proven methodology leveraged by thousands of customers globally to:•Drive business impact by helping view technology as enablers of business value

•Help build a compelling value proposition

•Assist with alignment with executive team

Industry Experience

Solution Knowledge

Value Analysis

19

We Understand That Achieving Business Objectives Means Addressing Different Challenges

Business Issues

“ Given global growth opportunities and acquisition strategy, how is the business positioned to leverage such opportunities?

“ How well can our business processes support these objectives?

“ What is the business value in transforming our processes?

“ How do we transform in alignment with our strategic vision?

“ How do we measure progress of such transformation with a few key metrics?

Oracle Insight is a methodology tailored to assist you in answering such business challenges

IT Issues

“ Does our IT strategy / roadmap align with the business priorities and objectives?

“ What are the new IT enablers for these best practices and how do they impact us?

“ How can we enable and sustain business value realization?

“ How do we enable business processes and the required capabilities while also

reducing business risk?

“ How do we enable the business with the right information to measure its progress?

http://www.oracle.com/insight

20

21

Insight Offers Tools & Services Tailored To The Needs of The Customer

Insight TeamIndustry Strategy

Business Strategy

IT StrategySales Team Pillar Insight (Certified SC’s)

Pillar Analysis (SC’s & ASM’s)Partner Offering

Consultative

BenefitAnalyzer

Tool


Program Agenda

• Introduction






The right asset. In the right place. At the right time.

Eva LarsonZebra Technologies CorporationData Quality/Data Management

10/14/2009

MDM = T + P + P

“Changing Zebra’s Stripes…”

The GoalIssues, and Solutions• Technology• People• Processes

The Benefits

24

Zebra Technologies

o Zebra helps identify, locate and track assets, transactions and people with specialty printing and automatic identification solutions including barcodes, RFID and GPS technologies.

o Lincolnshire, Illinois HQ [Chicago Suburbs]

25

The Goal

Simplify end to end business process integration and accelerate ROI through technology, people and processes.

Technology - The Issues

Technology• Hundreds of disparate applications

– 10 acquisitions– 140 applications (and counting)

• Resources– 90% of IT time spent on integration and maintenance

• Where to begin

• Time to implement

Page 7

Where’s our customer data today?

UCM – A single source of truth for customer data?

Before: Zebra’s 140+ “Islands-of-Automation”…

After: Zebra’s AIA Enabled Oracle Solutions

29

Technology – The Solutions

TechnologyUse a phased approachConsolidate all applications to a single global system.Increase data visibility and accuracyAvoid customization

Goal: Simplify end to end business process integration and accelerate ROI

RELEASE MANAGEMENT SCOPE

R1 R2 R3 R4

2007 [PRE‐RELEASE] 2008‐2009 2009‐2010 2010‐2011

ORACLE ‐

AGILE PLM ORACLE ‐

EBUSINESS

•

Product Collaboration • Global Financials •

Accounts Receivable / Collections • Service (back‐office)

• Web Portal [for CM] • Global Human Resources • Credit

• CM Enablement •

Procure‐to‐Pay [MRO] • Mfg

• Global HR • WMS

• Payroll •

Shipping

• ASCP • Data Collection [Zebra]

• Demantra • Remote Printing [Zebra]

• OBI

ORACLE CUSTOMER HUB

•

Accounts ‐

Contacts •

Expanded ‐

Sales

Attrbs •

Expanded ‐

Service

Attrbs

ORACLE / SIEBEL ‐

CUSTOMER RELATIONSHIP MANAGEMENT

• Partner Portal ‐

Registration • Partner Portal ‐

Shopping Cart • Service

• Campaign Management • Campaign Management • Partner Portal ‐

Service

• Lead Management • Lead Management •

Mobile Applications

• Customer Master • Order Capture

• OBI • Pricing & Concessions

•

Configuration

• Sales Hierarchy

• Warranty Contracts

•

Opportunity Management

• Install Base [Asset Mgt]

• Point of Sale Capture

Zebra’s Success Card

31

Live Liv

e

Live

Live

Deployed in-house, on-time & under budget







Zebra – Staying Current

Siebel CRM 8.0.0.2 + => moving to 8.1.1 [2009]Oracle Customer Hub

Oracle eBusiness 12.0.5 => moving to 12.1 [2009]Oracle SOA 2.1 => moving to 2.5 [2009]Oracle AIA / PIP – Customer Party EBO – Live Nov 2008 - expandingOracle Demontra & Oracle Advanced Supply Chain Planning 7.2.0.2Oracle Agile 9.2.2 => expanding to Oracle Product HubOracle Business Intelligence [OBI]10.1.3.3Oracle 10g RAC => moving to 11g RAC [2009]

Supporting Tools:EDI: GenTran / Sterling Integrator 4.3.10 Data Profiling & Cleansing: Dataflux 8.1

Zebra CIO: “Time to Break the Cycle”…

Evolve IT staff…. from being primarily technologists to well-rounded business managers – assigned competency leads

Upgrade organizational capability … with experience in Oracle delivery

Develop higher contribution to the business… by leading strategic projects to conquer complex operating challenges that have presented themselves as a result of Zebra’s market place successes

ToNew Project

Effort

From…

Support

10%90%

90% 10%

35

People – The Issues

People• Siloed/Independent

– Thinking– Communicating– Decision Making

• Change– Acceptance– Adaptation

• Ownership (vs Stewardship)• Resources

People – The Solutions

People“Herding Zebra’s”ConsumersContributorsData Governance and Data Stewardship


Processes – The Issues

Processes• Redundant• Customized• Uncontrolled

Zebra TechnologiesCorporationZbra Tehcnolgies CorpZEBRA TECHNOLOGIESZebra TechZebraZebra Technologies Corp dbaZebra Technologies Corp

Processes – The Solutions

ProcessesConsolidate master data“One stop shopping” for master data’s metadataCRUD and workflowsData cleansing and enhancementsQuality check-ups


Using Oracle’s Out-Of-Box Business Process Flows

Performance measures

n The solution should always allow customers to request changes to their details. nManual administration by Zebra employees should be minimized, but the integrity of customer data must be protected.nOnce Account is active the access to change is restricted to persons

responsible for Customer MaintenancenRules should determine what updates can be made to particular data fields by particular people and in particular systems.

nThe cost of executing a change in details (number of key strokes or man hours)nThe amount of time from the detail change request to completion

At any point in time, a customer may want to make a change to their details.

n Customer requests a change through a channel (portal, phone, email, post, call)

n Change details are captured in the system(address details, phone numbers, additions to Contacts Information)

n Change request is routed to proper individual

n Change is processed and records are updated in all systems

n Change not processed (due to incomplete or incorrect data) and customer contacted

n Account Namen Address detailsn Phone Numbersn Contact Email Addressesn Account Profile details

Key dataProcess activities

Parallel ProcessesParallel Processes

Best PracticesDefinition

Customer QueryCustomer Query

Query Check for Customer Query Check for Customer

Customer CreationCustomer Creation

Register New Customer Register New Customer

Customer AddressCustomer Address

Customer Address SetupCustomer Address Setup Customer UpdatesCustomer Updates

Sales/ Opportunity Processes

Sales/ Opportunity Processes

Credit Check/ Approval Credit Check/ Approval

Sales and M

arketing - Evolution of a

Customer

40

Canonical Model

Canonical Data Model

Initial Extract Records

Canonical Data Model

Cleansed, Standardized,

De-duped, Merged Records

ICDB Database

Data Trans / LOV Valid Step

SQL ScriptDataFlux Step 1 DataFlux Step n

PartnerFirst Data

BaaN NA

Siebel CRM

Siebel UCM

R2W2 CRM Integration & Conversion Approach using Canonical Model

Extract Transform Load

Data Cleansing / Matching StepsCon

vers

ion

Inte

rface

Zebra.com

Zebracard.com

Technology – The Benefits

2008• MDM solution/integrations purchased from Oracle - avoids 3 party connectors, new

proprietary skills to learn, compatibility issues = lowered costs• Estimated resource savings 60% - 2 resources, 2 months with small off-shore

augmentation vs 6-10 resources for 4-6 months

2009 phase• Same AIA/PIP reused in integrations and conversions = lowered costs• Upgraded Siebel, Oracle without integration rewrites

Future• All Oracle AIA/PIPs deployed for MDM• Zebra acquisition on-boarding becomes easier and faster• Compatibility of integration remains Oracle’s responsibility• MDM data remains protected, standardized, cleansed

Oracle MDM ROI Projections

43

IT Agility Risk/Compliance

CRM Booster Operational Improvements

People – The Benefits

IT concentration moving toward business’s strategic projects vs maintenanceGlobal understanding about the reality of our inter-connected data-driven world.Data Governance/Stewardship which sets the rules of engagement, defines global standards and processes and global resolution of conflictsMore information available for use in reporting and decision making

Processes – The Benefits

Reusable data - master data entered once for all vs once per # of applications = estimated savings of 139 per fieldSingle set of processesGlobal documentation for all fields, rules, standards and processes which is housed on global intranet siteReal time and batch deduplication

Zebra’s Transformation… in the news…

Zebra AccomplishmentsOracle 2008 Excellence Award Winner [AIA]

2009 Press Releases [AIA] – Reduces Cost

2009 Oracle Press Releases [AIA] - Expanding

2009 Customer Snapshot for Zebra on Oracle [AIA]

2009 May Oracle Profit Magazine – Zebra Transformation Story

2009 Program Reviewed in AMR Research, Forrester and Gartner

Oracle User Groups Presentations on MDM, data governance, AIA

Zebra Technologies Exhibitor Information

Booth Locations2423 Moscone South and Motorola Enterprise Mobility Pavilion, 3109 Moscone West

Event ProfileZebra’s got the Oracle connections you need for easy bar code and RFID label printing. Designed to streamline the printing process, Zebra’s Enterprise Connector solution provides an easy-to-implement way to print bar code labels directly from Oracle e-Business Suite including any Oracle application that invokes Oracle SOA Suites.

47

Documents

Oracle Mdm Business Case