SCM-EDGE Business Update for FY12 Kickoff Greater China Keith Ip

SCM-EDGE Business Update for FY12 KickoffGreater China

Keith Ip

Copyright © 2009, Oracle and / or its affiliates. All rights reserved.

Objectives

• To Share Knowledge

• To Learn from the past

• To Plan for Future

• To Collaborate

• Everyone has a say

• Everyone has right to express

• Everyone respect everyone

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Agenda

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9:30 – 9:45 Opening9:45 – 10:30 Ben’s Q1&Q2 Review update10:30 – 11:15 Roger’s Q1&Q2 Review update11:15 – 12:00 Michael’s Q1&Q2 Review updateLunch2:00 – 2:45 Jessica’s FY12 Plan update2:45 – 3:30 Individual 1 on 1


BIG THANK YOU & WELCOME!

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How has SCM-EDGE done so far?

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RevRow Labels FY05 FY06 FY07 FY08 FY09 FY10 CAGR%PVC - PLM/PIM/PDQ 1,645 107,262 1,704,028 1,200,470 2,834,947 544%VCE 53,012 87,369 397,872 275,199 922,908 232,000 34%VCP 328,148 442,124 438,673 1,605,099 790,646 813,989 20%Grand Total 381,160 531,137 943,807 3,584,327 2,914,024 3,880,936 59%

Growth %Row Labels FY05 FY06 FY07 FY08 FY09 FY10 CAGR%PVC - PLM/PIM/PDQ 6421.7% 1488.7% -29.6% 136.2% 544.3%VCE 64.8% 355.4% -30.8% 235.4% -74.9% 34.3%VCP 34.7% -0.8% 265.9% -50.7% 3.0% 19.9%Grand Total 39.3% 77.7% 279.8% -18.7% 33.2% 59.1%

FY11: 19% GrowthCat.

FY11 Budget

VCP 1,135VCE 325PLM 2,750PIM 390Total 4,600


FY11 Q1 to Q3 so far

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FY10 Q1 Q2 Q3 Q4 FY10 Actual

VCP 97 24 139 554 814VCE 0 117 39 76 232PLM 345 -7 218 1,931 2,487PIM 3 233 87 24 348

445 367 483 2,586 3,881

Cat. Q1 Actual Q2 Actual Q3 Actual

VCP 492 390 454VCE 0 136 21PLM 79 214 126PIM 0 21 92Total 571 761 693


Achievements

• Recruit new partners for Agile & Demantra

• Largest Apps deal at ZTE

• Real solid Agile deals

• More MRD reps selling Agile

• Some ASCP bundle deal happening

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Areas for Thoughts

• How to own the sales cycle from end to end to increase deal size?

• For bundle deal (i.e. ASCP), how to increase the deal amount

• How to capture inflow leads and mature them?

• How to grow the business (Large deal vs volumne)

• Support required from upper management and other LOBs

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Agenda

Scope

FY11

Our Focus

Positioning

Team

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1

2

3

4

5


Product Lifecycle Management

• Agile PLM• Agile PLM for Process

(F&B)• Agile PLM for Pharma

(emerging)• Product Data Quality• Product Information

Management

Oracle Value Chain Solutions

Value Chain Planning

• Demantra (Demand Management, S&OP, Predictive Trade Planning)

• Adv Supply Chain Planning• Rapid Planning• Inv Optimization• Global Order Promising• Adv Planning Command

Center• Collaborative Planning• Production Scheduling• MOC

Product Lifecycle Management

• Transportation Management (G-Log)

• Landed Cost Management• Global Trade Management• Warehouse Management• Mobile Supply Chain


Focused Accounts(1/2)

Huawei ZTE Mindray Sunctec SanDisk

HighTech

Haier Midea Gree Hisense TCL

Consumer Electronic

Yun Nan Pharma; Bei Jing Pharma

Pharma

Qing Dao Beer MasterKong

Food & Bev SAIC Group BYD

Auto Ind

us

try: G

row

th, R

evenu

e

Acco

un

ts: Bran

d, S

KU

, IT m

aturity

Oracle VCM competency


Accounts will be focused (2/2)


Potentials

CGP●

●

QingDao Beer, Dem

Huawei Terminal

Huawei Tech, SPP, MOC

HiTech & Consumer Electronics●●● ●

ZTE, Dem, ASCP Mindray, Agile

●● Haier

Hi-Sense

● Master Kong

●●

Foxconn BYD, Agile

● Natural resource

China Shenhua●

TCL Konka

China Source, ask daniel

Shang hai GM

Changan Auto

Auto, IM & Heavy Industry●

●

●

●

●●

●

YunNan Pharma

SunTech●

Midea Gree BBK

Da Chang Jiang

WORKING ON

COMMITTED


SWOT

Strengths:• Large install base in TW• Complete

Weaknesses:• Lack of ref in CN• Not enough coverage in

CN

Opportunities:• New industries F&B,

Pharma• PDQ/PIM

Threats:• Matured establishments

of PTC & UGS• Some locals like CASA

are up and coming

Product Lifecycle Mgmt

Strengths:• OTM- Head start in China• Agility, IDS, Huawei, NTL

Weaknesses:• Lack of WMS ref• Less matured market

Opportunities:• MNC• Large enterprise

Threats:• Local competitors like

Boke

Value Chain Execution

Strengths:• Ref in TW• Complete

Weaknesses:• Lack of implementation

resources• Early of adoption cycle• Large MFGs are SAP IBOpportunities:• Big growing companies in

HT & CPG maturity• S&OP, Trade Prom., SPP

Threats:• JDA/i2 is rebuilding their

business CN• Timing

Value Chain Planning


Sales Strategy by Product

• Focus on Large Enterprises with advanced thinking and maturity

• Companies with pressure to grow bigger and go global

• Leverage Global SI – Accenture, Deloitte

• High Tech & CPG

• Work with MRD Named and be part of ULA

All Products - Big Companies Big Problems Big People

• Upsell & Upgrade in TW

• Rebuild the CN PLM business

• Focus on building Prodika customer

• Leverage end-to-end PLM

• Penetrate PTC & UGS

PLM – Tackle & Grap

• Need to recruit WMS partner (Sell to EBS)

• Enterprise logistics vs. Logistics enterprise

• Need to have more BD works

VCE – OTM vs. WMS

• Position ASCP replacing MRP in the ERP deals

• ASCP as differentiator to compete against SAP

• Sell through MRD sales team

• High Tech & CPG

VCP - ERP Bundle


Key deals

Client Product Deal size Closing date

Mindray PLM 300K Q4

Huawei Terminal VCP 1.5M Q4

Huawei SPP 300K Q4 / FY12

QingDao Beer Demantra 80K Q3


Collaboration with MRD

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Partner Map & Readiness

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Partner Loc VCP VCE PLM PIM

IBM CN,TW ○

OCS CN,TW ● ○ ●

Hitachi CN ● ● ○

EII GC ●

AMAX CN ●

AdvTek CN,TW ●

Acconsys CN,TW ●

UFC CN ○

SIE CN ○

Infosys CN ○ ○

JOS HK ○ ○ ●

RJ TW ●

○ To Be Ready

● Relatively Ready


How is it so far?

What’s Working

• Improved relationship with MRD sales

• Run rate PLM business in TW

• Reconstructing the team

What to be Improved:• TW – Need large deals by

replacing PTC and tapping into SAP install base

• CN – Need to quickly revamp PLM business

• VCE – need to speed up the pipe maturation in order to ensure the growth

• MORE PIPE!!!

• More new products (PDQ, Prodika)

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Q2 Outlook

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Comments

• Pipe building is critical

• PLM Sales replacements (BJ & SH) are important to get enough coverage

• Get the South China PLM Sales up to speed

Cat. Q2 BudgetQ2

won+fcst Budget %YTD

BudgetYTD

won+fcstYTD

Budget %24% 0

VCP 272 623 229% 420 1,115 266%VCE 78 0 0% 120 0 0%PLM 660 277 42% 1,018 356 35%PIM 94 0 0% 144 0 0%Total 1,104 900 82% 1702 1,471 86%

FY11 Q2 ForecastM1 100.28M2 77.1M3 723Total 900.38

Scenarios Close Location Cat. Account Opp # Size Win% CommittedForecast Q2 M3 CN VCP ZTE 3-GJ8XP4 409 40% YForecast Q2 M3 HK VCP Meadville 3-G5K91Z 34 40% YForecast Q2 M3 HK PLM VIA 3-N9GSGV 100 40% YUpside Q2 M3 HK PIM Man Yue 3-7KZNMQ 80 20% NUpside Q2 M3 HK VCP Astec 3-10RIGX2 60 30% NForecast Q2 M3 HK VCP Vitasoy 3-F3I0K7 80 40% NForecast Q2 M1 TW PLM Lanner (LiDuan)3-SYH447 44.28 60% YForecast Q2 M1 TW PLM TaiDoc 3-117QQV6 56 60% YForecast Q2 M2 TW PLM Chilintech-奇菱科技3-S4LXYL 77.1 30% NUpside Q2 M2 TW PLM CCPC 3-10CLXZJ 80 20% NUpside Q2 M2 TW PLM Oasistek 3-UPK1K5 41 40% NForecast Q2 M3 TW VCP MTI-台揚科技 3-KXX9W9 100 30% N


Q2 Action Plan & Strategies

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Critical Req’ts to Deliver Forecast• Work out the LJE for ZTE• Negotiation with ZTE prior to CFO’s visit

to CVC

Additional Plans to Achieve Budget• Continue working with MRD sales• Having an agreeable review schedule

with Edwin and Gao

Cat. Q2 BudgetQ2

won+fcst Q2 Best Budget %Commit

Pipe VarianceYTD

BudgetYTD

won+fcstYTD

Budget %24%

VCP 272 623 683 229% 443 -180 420 1,115 266%VCE 78 0 0 0% 0 0 120 0 0%PLM 660 277 398 42% 200 -77 1,018 356 35%PIM 94 0 80 0% 0 0 144 0 0%Total 1,104 900 1,161 82% 643 -257 1,702 1,471 86%


Q2 Action Plan & StrategiesMarketing

• Replicate the VCP SZ event to BJ• Propose to have 1 PLM event in South China once the new sales is on

board• Leverage MRD’s events

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Category *Program Name DateCity/Terri

tory *Industry

CN_Mid Size Apps Industrial Manufacturing Industry Online Campaign_11Q2_FM Online Industrial Manufacturing

CN_Mid Size Apps Phamaceutical Industry Online Campaign_11Q2_FM Online Pharmaceutical

CN_Mid Size Apps High Technology Industry Online Campaign_11Q2_FM Online High-Tech

CN_HCM_Position HR as Delivering Strategic Business Value Roundtable for MRD Shanghai_11Q2_FM Shanghai AutomotiveCN_HCM_Position HR as Delivering Strategic Business Value Roundtable for MRD Shenzhen_11Q2_FM Shenzhen High TechnologyCN_SCM_Value Chain Planning Roundtable_11Q2_FM TBD Non-Industry Specific

CN_Mid Size Apps ERP Replacement Online Campaign_11Q2_FM Online X-IndustryCN_Mid Size Apps Oracle Accelerate Event Shenyang_11Q2_FM Shenyang Industrial Manufacturing

CN_Mid Size Apps Oracle Accelerate Event Xian_11Q2_FM Xian Manufacturing

CN_Mid Size Apps Oracle Accelerate Event Xiamen_11Q2_FM Xiamen Apparel

CN_Mid Size Apps Oracle Accelerate Event Wenzhou_11Q2_FM Wenzhou Mechanical Manufacturing

CN_Mid Size Apps Oracle Partner Led Accelerate Event Wuhan_11Q2_FM Wuhan Manufacturing

CN_Mid Size Apps Oracle Partner Led Accelerate Event Guangzhou_11Q2_FM GuangzhouReal Estate

CN_Mid Size Apps Oracle Partner Led Accelerate Event Hangzhou_11Q2_FM Hangzhou Manufacturing

Industry Focused

Product/Solution Focused

GB (also leverage named accounts in the region)


Q3 Outlook

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Comments

• Need to convert from Upside to Forecast

• Get new hires (PLM) up-to-speed

• Get the CN MRD sales to have focus on VCM

Cat. Q3 Budget Q3 fcst Budget %YTD

BudgetYTD

won+fcst Budget %

22%VCP 250 0 0% 670 1,115 167%VCE 72 0 0% 192 0 0%PLM 605 450 74% 1,623 806 50%PIM 86 0 0% 230 0 0%Total 1,012 450 44% 2714 1,921 71%

FY11 Q3 ForecastM1 220M2 80M3 150Total 450

Scenarios Close Location Cat. Account Opp # Size Win% Committ edUpside Q3 CN VCE-OTMSandisk 3-121NQAD 120 10% NUpside Q3 CN VCE-WMSBaimao (Whitecat)3-NX5ZZH 60 10% NForecast Q3 M3 HK PLM Shangri-La 3-XQP0M2 150 20% NUpside Q3 HK PLM SMT 3-KCRCEG 40 20% NUpside Q3 TW PLM 杏輝 3-K6C2D3 74 10% NForecast Q3 M2 TW PLM Zyxel 3-12FL6VI 80 10% NForecast Q3 M1 TW PLM Ofuna 3-S4VBZT 100 10% NForecast Q3 M1 TW PLM Everlight-億光電子3-JDM-2616 120 30% NUpside Q3 TW PLM 晶技 3-GU6HT4 75 20% NUpside Q3 TW PLM Chicony-群光-Upgrade3-IVDHHJ 80 20% NUpside Q3 TW PLM Eturbo Touch-宇辰光-Upsell3-EK1AW9 60 20% NUpside Q3 TW PLM Celxpert-加百裕3-HDQOLP 67 30% N

Q3 TW PLM Fuhsing-福興 3-11G8PNR 95 20% N


Q3 Action Plan & Strategies

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Critical Req’ts to Deliver Forecast• Need to build up the WMS business by

hand holding a partner• Need to resolve the NTL OTM

maintenance issue (no disruption to our OTM brand in local market)

• Work on Shangri-La PLM for penetrating the emerging industry

Additional Plans to Achieve Budget• Move the PLM volume deals from

upside to forecast• Focus on the large Q4 deals and see if

we can pull ahead (China Mobile)• Ensure Huawei Terminal’s positioning

being competitively well in Q3 so that we can make it as upside or ready for Q4

Cat. Q3 Budget Q3 fcst Q3 Best Budget %Commit

Pipe VarianceYTD

BudgetYTD

won+fcst Budget %

22%VCP 250 0 0 0% 0 0 670 1,115 167%VCE 72 0 180 0% 0 0 192 0 0%PLM 605 450 846 74% 0 -450 1,623 806 50%PIM 86 0 0 0% 0 0 230 0 0%Total 1,012 450 1,026 44% 0 -450 2,714 1,921 71%


Close Plan for ZTEFacts:• Met with VP Xu (procurement) who indicated that we need to pre-

negotiated the price prior to CFO’s CVC visit• CFO Mr. Wei is visiting CVC on 28th Sept• EVP Tian and VP Chen (SCM) want to go with us• CIO Ni was not too convinced but got neutralized• VP Chen visited our ref (Cabot Electronics) in July• Hitachi completed the POC with satisfactory result• Fulfillment partner is identified by ZTE

Actions:• 9/27 - We need to finalize the price negotiation before his visit• 9/15 - LJE needs to be submitted NOW!• 9/22 - Submit 1st offer to start off negotiation by next week with

agreement with Gao• Fulfillment partner is identified by ZTE• 9/22 - Start having ZTE to review OLSA

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Overall FY11 Outlook

• The team is new due to reconstruction (Currently, our team is 1 + 3; bottoms up quota GC quota!!)

• Pipe needs to be further strength

• Heavily reply on ZTE, Huawei, and TW PLM

• Strength the VCE in China

• Racing against time to get the PLM Sales up to speed.

• Need reference on WMS, Prodika, PDQ, and GTM

• Get PR out on all new Wins and Go-Lives

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Team

Sales• Eddy Wong – VCE for China and All EDGE for HK

• Need to drive more OTM in China and improving• Ben Lin – All EDGE for TW

• Need to cook large PLM deal replacing PTC• Larry Du – VCP in China• 1 Offer in progress for PLM in South China• 2 HC TBH for PLM in North and Central China

Sales Consultants• Jason Chiu – SCM EDGE SC Lead / PLM• Oliver Peng – PLM• Jason Chang – PLM TW• Alex Yap - VCP

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Support Required

• Sales HC approval

• Sales Consulting support – 1 travel based VCP SC & 2 PLM SC for China are not sufficient the business (UGS has 35 Sales and 20+ SC)

• Include SCM-EDGE Forecast in MRD/GC GM Plan

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Copyright © 2009, Oracle and / or its affiliates. All rights reserved. 29

Documents

SCM-EDGE Business Update for FY12 Kickoff Greater China Keith Ip