Presenter’s Name: Presenter’s Title - Oracleopnpublic/... · “Lean is reducing the time from customer order to… delivering products by eliminating non-value added waste in

Heavy Equipment & Machinery SolutionsPresenter’s Name:Presenter’s Title:

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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement


• Leadership in Heavy Equipment & Machinery

• Innovation in Industry Solutions

• Results Achieved by Oracle Customers

Agenda


9 of the top 10 Fortune’s industrial and farm equipment manufacturers run Oracle Applications

8 of the top 10 Industry Week’s leading machinery manufacturers run Oracle Applications

7 of the top 10 construction equipment manufacturers run Oracle Applications

10 of the top 10 oil & gas equipment companies run Oracle Applications

Oracle in Industrial ManufacturingDid You Know?


The Challenges We’re Hearing

Revenue Growth:With the much of the cost-cutting already done, how can I increase profits?“80% of the world's top corporate CEOs declared that their primary objective has shifted from cost-cutting to revenue growth.” – IBM BCS, The Global CEO Study

!

Aftermarket Growth:How can we expand high margin aftermarket support opportunities?“Many discrete industrial organizations are finding great value in aftermarket services…Yet many other organizations fail to recognize the potential benefit this business can bring in revenue growth, profits, customer intimacy, and operational excellence.”

– Jane Barrett, AMR, January 2007

!


The Challenges We’re Hearing

Rapidly Changing Customer Demands:How can we build a more responsive supply chain in a rapidly changing market?“Market leaders all have supply chains that are more responsive to customer demand.”

– Yossi Sheffi, MIT, The Economist, June 17, 2006

!

Eroding Margins:How can we implement Lean more effectively to improve margins in a complex environment?“Lean is reducing the time from customer order to… delivering products by eliminatingnon-value added waste in the production stream. A lean manufacturer is continuously improving in the direction of that ideal.” – James Womack, “Lean Thinking”

!


“Oracle is building industry strength around key verticals such as… industrial manufacturing... (and) critical mass in the lean manufacturing area.”

“Oracle is building a one-stop for ERP, EMI and MES. In contrast to SAP’s acknowledged need of manufacturing extensions and heavy focus on partner certification programs.”

“Oracle has continued to increase the number of its Configurator reference customers worldwide, offers deep integration with other Oracle applications (such as manufacturing), has demonstrated an easy-to use rule maintenance environment, and has strong business viability.”

“With Demantra’s proven demand chain solutions, and Oracle’s leading technology infrastructure and existing ERP and supply chain applications, Oracle plans to provide a seamless solution for the lean enterprise.”

“Oracle’s strong middleware platform and greater support of standards make it a better choice than SAP for customers who will rely on custom development as well as packaged apps.”

Analyst Quotes





Agenda


Simplify Order Capture and Fulfillment

Enable a Flexible and Responsive Supply Chain

Optimize and Increase Aftermarket

Service Offerings

Oracle Solutions in Heavy Equipment & MachineryMaximize Profits by Effectively Managing the Entire Order Lifecycle


Requirement Oracle Capability The Oracle Difference

Integrated best-of-breed configurator with a single set of rules for all user interfaces across all channels

Improve channel performance through enhanced collaboration

Partner Relationship Management with Configurator / Guided Selling

Manage complex configured products throughout the order cycle

Most complete suite of capabilities to optimize configure to cash flow

Configure to Cash

Optimize delivery of complex products with high transportation cost

TransportationManagement

World-class transportationplanning & execution



• Validate configurations at point-of-sale• Order promising based on: material availability,

mfg / supplier / transportation capacity

• Creation of BOMs and routings• Materials allocation & option-

dependent sourcing

Automated

SelectMfg Source

In-House?Outsource?Drop Ship?

Auto CreateMfg. BOM &

Routing

Plan Production &

TransportationQuote, Capture & Validate

Unique Configuration

Global ATPand Pricing

Availability, Price

Order Status, Shipping Status

Invoice

ComponentInventory

Online, Self-Service Customer Visibility to:• Configurations, pricing/quotes, availability• Order status, shipping status

Production& Shipping

Configure to CashManage Complex Configured Products Throughout the Order Cycle


SOLUTIONS• Configurator• iSupplier Portal

CHALLENGES / OPPORTUNITIES• Market trends towards globalization and meeting

demands of customers on a worldwide basis• Rapidly growing markets with various product

needs in emerging areas• Requirement for standardization with consistency

on sales orders• Directions to offer a Total Solution for complete

coverage with lower TCO

CUSTOMER PERSPECTIVE“With Oracle EBS, we will make each employee around the world as much a part of the brand as our products… We are committed to investing actively in our future growth with improving results.”2006 Annual ReportHitachi Construction

RESULTS• Improved sales information availability

configurations and availability• Reduced product time-to-market• Out-of-the-box integration of back and

front office • Single model deployed in the Order

process for consistency and standardization on configurations

COMPANY OVERVIEW• Sales, manufacturing, and service for construction

machinery and transportation• Largest mfgr of hydraulic excavators in the world• 50 models; ½ ton to 500+ ton ultra-large lines• HQ: Tokyo, Japan; 13,000+ employees;

84 companies

Hitachi ReducesProduct Time to Market

• Order Management





Service Offerings




Support diverse and complex production requirements

Mixed Mode Manufacturing

Only enterprise software provider with integrated flow manufacturing capabilities

Real-time, multi-level global order promising of material and resource constraints

Provide accurate order visibility and customer delivery schedules

Global Order Promising and Collaborative Planning

Balance global supply and demand in a complex multi-tiered environment

Best-in-class integratedsales & operations planning capabilities

Advanced Planning and Scheduling Solutions

Enable a Flexible & Responsive Supply Chain


Lot / Serial Genealogy Tracking

Quality Mgmt

Project Tracking

Manufacturing Execution

ProductLifecycle Mgmt

Warehousing / Transportation

Service

AssetLifecycle Mgmt

Planning & Scheduling

Flexible, Mixed Mode Manufacturing

ETO / Project Flow / Lean

Standard Discrete Lot-Based

SeibanATO / CTO

MTS

Shop Floor Sys

PartnerCollaboration and VisibilityContract Mfgrs Suppliers

Manufacturing Intelligence

Visibility from Shop Floor to

Top Floor

S95-Based Data Integration

AnalyzeAnalyze AdjustAdjustSampleSample

Support Diverse and Complex Production RequirementsComplete Lean Manufacturing Solutions


CHALLENGES / OPPORTUNITIES• Complex, mixed-mode production• Inventory build-up due to “push” mfg

CUSTOMER PERSPECTIVE“1st Year benefits are attributable to Lean, but every year after from Y+1 to infinity are attributable to the system by enforcing and maintaining the lean processes.”Mike Macrie, Global Director, Back Office Apps

RESULTS• Increased plant production and capacity

by 30%• Reduced inventory by 23% and pull

sequences by 20%• Achieved 66% reduction in vendor

transactions, receiving activity, and managed stock locations

• Transitioning major manufacturing operations from push-based MRP topull-based lean manufacturing

• Supports mixed manufacturing methods including engineer-to-order, build-to-order, assemble-to-order, configure-to-order, and build-to-stock

COMPANY OVERVIEW• Leading mfgr of transport temperature control• Business unit of Ingersoll-Rand Company, Ltd.,

founded in 1938• Products include heating, cooling and ventilation

systems for trailers, trucks, buses, shipboard containers, light rail, and railway cars

• Operates 10 manufacturing plants in 7 countries

SOLUTIONSOracle E-Business Suite• Discrete Manufacturing• Flow Manufacturing• Order Management• Purchasing

• iProcurement• iSupplier Portal• Financials

Thermo King Reduced Inventory by 23% and IncreasedCapacity by 30%





Service Offerings




Improve customer service levels with optimum spare parts management

Spares Planning and Field Service

Most robust spares planning and field service functionality

Best- in-class service offering with ‘as-maintained’ serial number traceability for complex configured products

Proactively track and maintain asset /product configurations

Asset Lifecycle Management

Accelerate revenue growth with expanded service offerings

Most complete service capabilities with world class analytics and technology

Service, Embedded Technology and Analytics

Optimize and Increase Aftermarket Services


Complete Customer Service SolutionImprove Customer Service Levels

Shipping /Receiving

Orders &Cases

Invoices &Payments

MarketingOffers Inventory

IntelligenceCustomer/Prod Info,Knowledge Base

SecureAccessSecureAccess

Self-Service

Depot RepairAgent Assisted

Field Service

AnalyzeAnalyze DebriefDebrief Close& BillClose& Bill

Repair /ResolveRepair /Resolve

Identify & VerifyIdentify & Verify

Workflow AutomationWorkflow Automation

PrioritizePrioritize

DeliveryOptions

Plan &Schedule

Plan &Schedule

Service Parts LogisticsSelf-

Service

Email

Phone

In Person

Channels Users

Agents

Analysts

Customers

Proactive ServiceRapidResolution

Contract Entitlements / WarrantiesContract Entitlements / Warranties

Partners


SOLUTIONS• Standardize with a single CRM service platform

with integrated parts and support• Field Service, Spare Parts, Trunk Stock / Inventory• Handheld with Wireless Messaging

CHALLENGES / OPPORTUNITIES• Market downturn after 9/11 caused margin erosion• Aging workforce and pending retirements• Need to develop alternative survival strategy• Paper based parts and spare stocking systems

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

CUSTOMER PERSPECTIVE“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

RESULTS• Service Productivity: Increased by

streamlining the handling of open service issues; drove 50% of requests to Web

• Service Effectiveness: Enabled the field techs to respond with the right parts

• Forecasting Visibility & Accuracy: Improved and minimized overstock / understock issues with parts inventory

• IT Cost Savings: Consolidated 40 after-hours call centers into 1

COMPANY OVERVIEW• Global supplier of heating, ventilating, air

conditioning and refrigeration equipment / services• Revenues: $4.5 billion, Employees: 23,600• 500 sales & service offices, 30 mfg plants in

120+ countries

YORK Optimizes Service Deliveryin the Aftermarket


Oracle Heavy Equipment Mfg Solutions Summary

• Integrated Install-Base to Track Complex Configurations• Best-in-Class Service, Technology, and Analytics• Complete Spares Planning and Field Service

Optimize and Optimize and Increase Increase

Aftermarket Aftermarket Service OfferingsService Offerings

• Multi-Level Order Promising and Collaborative Planning• Real-Time Sales & Operations Planning• Mixed-Mode Lean Manufacturing with Integrated Flow

Enable a Flexible & Enable a Flexible & Responsive Responsive

Supply ChainSupply Chain

• Best-in-Class Configurator for Complex Configured Products • Real-Time Global Order Promising • Most Robust Configure-to-Cash Capabilities

Simplify Order Simplify Order Capture & Capture & FulfillmentFulfillment

OracleOracle

ISV PartnersOracle’s Heavy Equipment Mfg FootprintOracleOracle

ISV Partners

InfrastructureInfrastructure

Technology (e.g., Database, Application Server, RAC, Oblix, TimesTen)

Hubs (Asset Hub, Product Hub)

Integration Framework (e.g., BPEL)

Corporate AdministrationCorporate Administration

Human Resources Projects

CPM Financials / Cash Mgmt

Compensation

Indirect Procurement Facilities Management

ITITHRHRHelpdesk

AnalyticsAnalytics Operations & ManufacturingOperations & ManufacturingMarketing Analytics

Sales Analytics

Supply Chain Analytics

Financial Analytics

Service Analytics

Pricing & Contract Mgmt

Project / Project Mgmt

Product Lifecycle Mgmt

Demantra / Supply Chain Planning

Transportation & Logistics

Manufacturing / MES

Global Trade Mgmt

Direct Procurement

Asset Lifecycle Management

Field Service / Depot

Customer & Distribution Channels Customer & Distribution Channels Customer & Distribution ChannelsCustomer & Distribution Channels

Marketing eCommerceSales

Order CaptureETO/CTOETO/CTO PRM e-Billing / Payment

Goods &Services Service

Export Compliance

Customer Data Hub



The Only Complete Heavy Equipment Mfg Solution

Oracle Uniquely Delivers a Competitive Advantage by Leveraging People, Partners, Process, and Platform

PartnersPartners PeoplePeoplePeople

PlatformPlatform

ProcessProcess

ResultsResults


People: Oracle’s Ecosystem Creates Advantage

950 customers participating in Customer Advisory Boards

500 Industry & Product strategy council members

35 Fusion strategycouncil members

1,300 participants in early customer adoption programs

425 user groups

30,000 applications customers

220,000 database customers

5,000 middleware ISVs

1,700 application ISVs

9,000 database ISVs

30,000 middleware customers

29,000 developers, support engineers

and consultants275,000 275,000

Customers Customers Benefiting Benefiting

from Shared from Shared InnovationInnovation


#1 Enterprise Software Vendor• ERP, CRM, SCM and more• Most scalable, reliable, secure infrastructure• Most complete range of on-demand and on-premise

deployment options

Built-In Heavy Equip & Machinery Capabilities• Configurator-driven product ordering• Mixed-mode manufacturing including flow and MES• Tracking of install base complex configurations • On-premise and in-house service / repairs• Integrated spares management

Largest Software Support Team• 21,000+ development and support engineers • 145+ countriesDatabaseDatabase

MiddlewareMiddleware

ApplicationsApplications

ConsultingConsulting

TrainingTraining

SupportSupport

Process: Top to Bottom Support for Industrial Mfg


Platform: Oracle Fusion Middleware Leads the MarketBestBest--SellingSelling

• 32,000+ Customers Deployed • 70% of World’s 50 Largest Firms• $1B+ Business

Oracle 55%

Oracle 55%

Others 45%

Others 45%

Source: Gartner’s Market Share Application Integration & Architecture

Source: Gartner’s Market Share Application Integration & Architecture

40%

30%

20%

10%

0%

39.6%

6.7% 7.1%

Oracle IBM Total Mkt

Growth Rates

#1 Middleware By Share

Fastest Growing Middleware

Highest RatedHighest RatedOnly Vendor in Gartner and

Forrester Leader Quadrants for All Middleware Components

Source: Forrester Research Ranking of Application Platform Servers

Oracle

IBMSAP

Microsoft

0% 5% 10% 15% 20% 25% 30%

SOA Vendor of Choice

Oracle Leads the Pack

IBMSAP

SUN Microsystems

Microsoft

Novell

LeadersStrongPerformersContenders

Strong

StrongWeakWeak

Strategy

Market Presence

CurrentOffering

Oracle

Most ComprehensiveMost ComprehensiveIndustry's Most Comprehensive

Platform for Developing, Deploying& Integrating Enterprise Apps

Rich Functionality

ORCLORCL IBMIBM SAPSAPJ2EE Server & Dev ToolsEnterpriseService BusPortal, Collab,Content MgmtBPEL Process ManagementActivity MonitoringBusiness Rules EngineSOA ManagementBusiness IntelligenceIntegrity Management





Agenda


improved PO release efficiency over 700% and loaded 800,000 items in a unified corporate catalog with Oracle E-Business Suite Procurement

gained $6.2M in incremental sales 1st year, improved sales productivity through automated pricing and proposal generation with Siebel CRM

realized total productivity and growth benefits of $3.4M and reduced order processing time by 83% with Oracle E-Business Suite Order Management

increased Production of Plant by 33%, reduced pull sequences by 20% and reduced inventory by 23% with Oracle Flow Manufacturing

increased service productivity; drove 50% of service requests to Web; consolidated over 40 after-hours call centers into 1 with Siebel Service

reduced inventory cost by $26M, reduced costs and increased order accuracy with Oracle E-Business Suite

Heavy Equipment & Machinery Customer Results


What Customers Are Saying….

“In our business, projects are large and extremely complicated, so high quality project management is essential to earn our customers' trust. We focused

on finding a solution that provides the best business management capabilities and performance… that was the main reason we chose Oracle Projects.”

-- Mal-Ho Song, VP, Process Innovation Division

“As a result of Oracle E-Business Suite implementation,many processes have been streamlined. There is increased visibility, in real-time, into important business parameters.

This, in turn, is contributing significantly in cost reduction”-- S.S.Godbole, General Manager, Projects

“We have totally eliminated the complexity of integration from the process of expanding our IT infrastructure – thanks to the built-in integration of Oracle’s E-Business Suite.”

-- Chen Jun, IT Director


Configurator uses a single set of rules to manage the complex configurable product across all channels

Offers a complete integrated set of solutions for the lean enterprise to reduce costs and improve responsiveness

Provides real-time sales & operations planning and order promising to effectively plan supply and demand

Provides best-in-class service applications and technology to expand aftermarket support offerings and revenues

Only Oracle…

The Oracle Difference

Appendix

Additional Customer Success

Stories


SOLUTIONSSiebel CRM• Call Center• Order Configurator

CHALLENGES / OPPORTUNITIES• Manage sales and service through both direct and

reseller channels via one integrated solution• Share customer information across its 30 operating

units and 2,600 reps

CUSTOMER PERSPECTIVE“Sales reps can now configure a product while on-site with a customer. Our customer order managers can then quickly check the order and push it directly to our manufacturing system. This process saves a great deal of time and has resulted in improved order accuracy.”Robert Martens, Director of CRM

RESULTS• Increased revenues by $6.2 million in one

year from cross-selling• Improved sales process by automatically

pricing configured orders and generating proposals

• Improved sales productivity and speedof service

COMPANY OVERVIEW• $9B global diversified manufacturer, based in

Hamilton, Bermuda• Major brands include Bobcat, Club Car, Hussmann,

Dresser-Rand, Thermo King, Schlage, and Kryptonite

• Pricing• Partner Relationship Mgmt

Ingersoll Rand IncreasesCross-Sell Revenues by $6.2 Million


SOLUTIONSOracle E-Business Suite• Projects• Manufacturing• Financials

CHALLENGES / OPPORTUNITIES• Orders were not accurate, quotes were often

incorrect resulting in poor estimates and resource allocations

• Need for best practices to improve project mgmt• Lack of unified direction and consistent policies on

Quoting and Budget Planning• Need for execution model for confirmed orders and

final settlement, acceptance and payments process

CUSTOMER PERSPECTIVE“Oracle E-Business Suite helped us introduce more efficient business management processes. The software also provided managers with access to accurate and timely business information. We believe the improved practices we put in place will strengthen our global competitiveness.”Malho Song, VP, Process Innovation Division

RESULTS• Improved efficiency by standardizing

business and management processes• Enabled more accurate cost calculation

and estimation• Cut business planning time from 90 days

to 30 days • Slashed month-end reporting time from

3 days to 1 day

COMPANY OVERVIEW• Geographies: Inchon, Korea• Revenues: US$ 3.1B• Employees: 4,800

… plus Oracle Consulting Services

Doosan Improved Efficiencywith Standard Processes


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

CHALLENGES / OPPORTUNITIES• Facing global competitions, margins eroding• Workforce retirements, loss of knowledge base• Need for single global instance to reduce IT exposure• Comply with regulatory and governance issues• Over 50% of revenues from aftermarket• Equipment has typical operating life of 30 years

CUSTOMER PERSPECTIVE“We’ve implemented operational excellence manufacturing & lean 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.”Vincent Volpe, President & CEO

RESULTS• Project: Single Global Process

Standardized on Oracle E-Business Apps• Connected partners, channels and

stakeholders • Auto-alert system of metrics out of range • Supply Chain improves throughput by 25%• Standardized metrics, benchmarks and

business rules across all locations• Sales per employee rise 40% to $250k/yr

COMPANY OVERVIEW• One of the largest global suppliers of rotating

equipment including centrifugal / reciprocating compressors, steam turbines, and expanders

• Builds and services equipment in over 50 countries• $14.B Revenues, 5,300 employees• HQ: Houston TX, founded 1840

Provide Real-Time Information for Lean Operations


SOLUTIONSOracle E-Business Suite• Product Lifecycle Mgmt• Discrete Manufacturing

CHALLENGES / OPPORTUNITIES• Needed to standardize enterprise engineering and

manufacturing processes to increase operational efficiency and product quality

• Needed to increase integration between engineering and manufacturing systems using a cohesive, integrated, global IT platform

• Needed to accelerate new product development and reduce manufacturing costs by standardizing components required across multiple divisions

CUSTOMER PERSPECTIVE“Our ability to innovate and bring new products to market is integral to our continued success in selling engines and motor compressors in more than 120 countries. Better Product Lifecycle Management is one of our top three priorities and we found Oracle to be the best choice to help us meet our customers’dynamic requests with quality products.”Todd W. HerrickChairman, President, and CEO

RESULTS• Implemented Oracle EBS to accelerate

processes spanning design through manufacturing, improving operational efficiency and product quality

• Reduced the number of duplicate parts, reducing complexity and improving efficiency

COMPANY OVERVIEW• Full-line, independent, global manufacturer of

compressors, electric motors and components,small engines, power-train products and pumps

• 2005 revenues US$1.8B; 19,100 employees

• Purchasing• Financials

Tecumseh ImprovesProduct Lifecycle Management

…plus Oracle Collaboration Suite, Content Services

• Projects


SOLUTIONSOracle E-Business Suite• Adv Supply Chain Planning• Inventory Optimization• Discrete Manufacturing• Order Management

CHALLENGES / OPPORTUNITIES• Low turnover parts, equipment leading to excessive

inventory • Inefficient order processing cycle leading to

additional inefficiencies • Growing IT expenses resulting from more demands

on information

CUSTOMER PERSPECTIVE"Not only has upgrading to OracleE-Business Suite helped Kvaerner Power integrate the applications, it's helped the internal processes of our company as well. Instead of working in stand alone silos, we now understand the big picture. And from a management perspective, we are able to see the status of the company on a daily basis." Woody Muth, Director of IT

RESULTS• $3.4M in productivity and growth benefit• Inventory turns up 43% • Order processing time reduced 83%• On-Demand saved $310K in annual IT

spend • Avoided $50K in annual hardware

expense

COMPANY OVERVIEW• Leading supplier of chemical recovery, power boilers

& evaporators for the pulp and paper industry• HQ: Oslo, Norway; parent revenues of $7B in 2005• US base: Charlotte N.C.; revenues of US$ 700M

• iProcurement• Purchasing• Projects• Financials

Kvaerner Power Improved Inventory and Productivity

Documents

Presenter’s Name: Presenter’s Title - Oracleopnpublic/... · “Lean is reducing the time from customer order to… delivering products by eliminating non-value added waste in