The New Paradigm – Digital Supply Chain & Industry 5

The New Paradigm –Digital Supply Chain & Industry 5.0

Michael Lim

Director / GTM Leader ERP & Digital SCM, ASEAN & North Asia

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 decisions. The development, release, timing, and pricing of any features or functionality described for Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

Statements in this presentation relating to Oracle’s future plans, expectations, beliefs, intentions and prospects are “forward-looking statements” and are subject to material risks and uncertainties. A detailed discussion of these factors and other risks that affect our business is contained in Oracle’s Securities and Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q under the heading “Risk Factors.” These filings are available on the SEC’s website or on Oracle’s website at http://www.oracle.com/investor. All information in this presentation is current as of September 2019 and Oracle undertakes no duty to update any statement in light of new information or future events.

Safe Harbor

http://www.oracle.com/investor

3

Evolution of Digital Supply Networks

Develop Plan Source Make Deliver Support

DigitalDevelopment

SmartFactory

Dynamic Fulfillment

Synchronized Planning

IntelligentSupply

ConnectedCustomer &Aftermarket

Digital Core

Sensor-driven Replenishment

Model Based Mfg

Cognitive Analytics

Concurrent Planning

*Source: Deloitte

The Cost of Not Changing…

5

50 years ago the life expectancy of a Fortune 500 company was

50 years, now it’s 12 and getting smaller all the time

But Failing Is Getting Easier

As technology change accelerates, so does business change - and this has the biggest impacts on supply chains

Why?

Only 12% of 1955 Fortune 500 companies were still

on the list in 2014

Failing Is Not New

Conclusion Continually innovate or become irrelevant

Financial Services

Professional Services

High Technology

Communications

Media, Hospitality & Entertainment

Transportation, Automotive & Manufacturing

Retail & Consumer Goods

Higher Education, Healthcare & Public Sector

6,500+ CXOs in Asia Pacific & Globally on Oracle ERP & SCM SaaS

Copyright © 2019 Oracle and/or its affiliates.8

WITH ORACLE

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Extensibility & Integrations

Analytic KPIs & Dashboards

Mobile, Chatbots, Blockchain

Social Collaboration

Predictive Analytics

LogisticsManufacturingOrder ManagementProcurement Maintenance

& Service

Supply Chain Planning

Collaboration, Visibility And IoT

Inventory & Cost Management

Globalizations & Localizations

Product Lifecycle Management & Product Master Data Management

B R EA DT H D E P T H I N N OVAT ION

The Oracle Digital Supply Chain Platform

Intelligent Supply Chain Applications

Unified Data Store

BusinessEcosystem

Execute

DigitalSignals

Real-Time Monitoring & Predictions

Supply Chain & Manufacturing

Analytics &Deep Learning

Supply ChainPlanning

Global Visibility & Deeper Insight

DecideDetect


Digital Thread across Departments

DecideDetect


Global Visibility

Unified Data Store



DigitalSignals

BusinessEcosystem

Execute

Real-Time Monitoring & Predictions[IOT Applications]

Trends & Anomaly Detection

Asset, Fleet, ProductionMonitoring

Digital Twins

Equipment Diagnostics &

Recommendations

Industrial Gateways

SCADA,OPC-UA

MQTT,HTTP, etc.

Historians

Digital Signals

Causal Analysis

Analytics & Deep Learning[BI & AI /ML Applications ]

Supply Chain Analytics

Insights & Predictions

External Systems

Business Networks

Data Pools

Market Intelligence

Business Ecosystem

Global

VisibilityDashboards Mobile Apps

AugmentedReality

DigitalAssistants


BlockchainTrack & Trace

Supply Chain Planning[Planning Applications]

Supply Planning

Integrated Business Planning

Demand Management

`

Supply Chain & Manufacturing[Business Applications]

Product Innovation

Sourcing & Procurement

Manufacturing & Costing

Maintenance& Service

Order Management

Inventory & WMS

Quality Management

Transportation& Global Trade

Supply Chain Collaboration

Unified Data Store

Context ContextUnstructured Data

Social, Audio, Video, Image FilesStructured/Relational Data

Business IT Systems

Semi-Structured/Time Series Data

Machine / Sensor Data


Unified Data Store

BusinessEcosystem

Execute

DigitalSignals






DecideDetect

IoT Applications

Asset intelligence and performance monitoring

Factory performance and equipment prognostics

Cargo and fleet monitoring

Worker health and safety

Asset Monitoring

Production Monitoring

Fleet Monitoring

Connected Worker

Differentiated service experience

Service Monitoring

Copyright © 2019 Oracle and/or its affiliates.

Product Design

Maintenance

Planning & Order Mgmt

Manufacturing

Logistics

Detect production & quality anomalies

Predict Work orders at risk

Manufacturing

Recommend segmentation criteria

AI based forecasts for New Products

Planning

Predictive maintenance schedule

Optimize parts inventory & procurement

Maintenance & Service LogisticsTransportation & Warehouse Management

ETA predictions & Leadtime refinement

Automated Warehouse dock scheduling

IOT and Machine Learning in Supply Chain

Titan International: IOT Production Monitoring in Action

.

Making data from machines and devices actionable


Unified Data Store

BusinessEcosystem

Execute

DigitalSignals






DecideDetect

Copyright © 2019,Oracleand/or its affiliates. All rights reserved. |

Actionable Intelligence – AI Apps for Manufacturing

Operational/Standard BIReport

‘”What”Analysis

Actionable

Intelligence “Why”

Analysis

68% of Batches of Chocolate Cakes made between Jan 1 and Jan 28 had Excessive Cracks after Baking Operation.

68% of Batches of Chocolate Cakes made between Jan 1 and Jan 28 had Excessive Cracks after Baking Operation and:

• Eggs were added after sugar @ Mixing Step• Batch was made in the afternoons• Sugar Quantity usage between .5 and .7 lbs• Sugar Lot Number = LT-PG-0001• Blender Max. Speed = 590 RPM @ Mixing Step• Oven Average Temperature > 350 F @ Baking Step

ITData(ERP, MFG,SCM,MES, Extsystems)

OTData(machine/sensor)

Current Functionality Available Today

Copyright © 2019 Oracle and/or its affiliates.

CX• Optimized Marketing

Orchestrations• Lead Optimization• Personalized Content

Recommendations• Personalized Commerce Search• Deal Acceleration• Smart Smart Talking Points• Product Recommendations for

Business• Automated Answers• Similar Service Request

Recommendations• Customer Sentiment Analysis• Digital Sales Assistant• Virtual Service Assistant• Lead Enrichment • TAM Expansion• Account Prioritization• Account Enrichment

ERP• Intelligent Account Defaulting• Automated Expense Approvals• Expenses Chat Bot • Automated Invoice Matching• Automated Receipt Matching• Inventory Level

Recommendations• Team Mix Modeling• Smart Supplier Management• Merchant Intelligence• Order-to-Cash Customer Data

Management• Intelligent Invoice Imaging• Expenses Audit

HCM• Intelligent Employee Assistant• HR Bias Checks• Anomaly Detection: Time Entry and

Absences • Intelligent Home Page Nudges • Automated HR Approvals• Recommended Employee Mix and

Risk • Candidate to Job Matching • Recommended Placement • Recommended Requisitions• Prospect Marketing

Recommendations• Intelligent Screening

SCM• Predictive Maintenance

Recommendations• Proactive Asset Performance

Management• New Product Forecasting• Product Segment Optimization• Optimal Resource Assignment• Maintenance Program & Schedule

Optimization• Expected Shipment Arrival Time• Optimal Fleet Capacity Planning• Automated Quality Exception

Management• Maintenance cost optimization

Industry SolutionsStudent Cloud• Student Dropout Predictions

Government Cloud• Recommended Permit Checks

GRC• Invoice Fraud Detection• Unusual Expenses• Split Purchase Orders• Payroll Fraud• High Risk User Access

EPM• Conversational EPM Bot• Intelligent Performance

Management• Autonomous Consolidations• Intelligent Tagging

AI Apps Intelligent UX Conversational Agents

Social Mobile Analytics Security Process

Multi-tier planning for sourcing, inventory, delivery and in-house or outsourced manufacturing

Accelerate Innovation Shape Business OutcomesImprove Profitability

Unified planning Empowered planners

Better Results FasterDemand Management

Sales & Operations Planning Supply Planning

Supply Chain Collaboration

Oracle Supply Chain Planning Cloud

Constraint-Based Supply Planning

Recalculate Action

Local impact of demand and supply changes

Intuitive Insights

Across the entire supply chain

Diagnostic Capability

Easy root cause analysis

Resolve Capacity

Constraints

Fulfill demand on time

Focus on solving core usability issues with constraint-based planning

25

Supply Chain Analytics

OAC Data Lake / Warehouse

• Part of comprehensive Oracle Analytics for Applications

• SCM subject areas to be organized in hierarchy with full drill-down

• Combined with IOT and SCM/Mfg. AI applications

Next: Procurement Spend, OTM/GTM, and Fulfillment

Future: All remaining SCM areas

CSCO Executive Focus

Planning & Collaboration

ProcurementInventory

ManagementOrder

ManagementMfg. &

MaintenanceCost

Management

Transportation, Trade and Warehouse

Management

Procurement

Fulfillment

Transportation

Import Subject Area Content

OTBI Views


Unified Data Store

BusinessEcosystem

Execute

DigitalSignals






DecideDetect

Process & Mixed-Mode Manufacturing

Mixed Mode

Discrete and Process Manufacturing in the same Organization

Intelligent

Leverage AI/ML insights and connected IOT

Built-in Quality

Integrated closed loop quality best practices

Responsive

Flexible planning, sourcing and manufacturing options

Now: Fixed-Formula Manufacturing

Next: Constrained and Process Planning (19D)

Future: Additional process capabilities

Project Driven Supply Chain

Create & manage projects

Automatically create tasks and set project budget and revenue from quotes

Plan by project

Plan supply for project-specific and pooled supplies

Project stripe all transactions

Buy, receive, store, use, manufacture , ship material, maintenance – all striped by project

Manage cost & revenue

Invoice from project, analyze cost & revenue, and track project progress and accounting

Now: Pooled Inventory

Next: Project-based Execution

Future: Project-based Planning

Oracle Transportation Cloud

Optimize shipments: mode, carrier, route, equipment, and consolidation

Collaborate with service providers and monitor in-transit shipments

Reduce freight costs andincrease product margins

Improve on-time delivery and supply chain reliability

Minimize profit leakage and improve cost visibility

Automate freight paymentand customer billing

Plan Execute Settle

Manage, optimize, and control transportation from source to destination

Copyright © 2019, Oracle and/or its affiliates. All rights reserved.

30


Oracle Logistics Network Modeling Cloud

Define, optimize, analyze & compare logistics scenarios• Perform what-if scenarios

• Network Design

Simulate performance with using real-world data• Carriers, rates, capacities, products, locations,

equipment, order history, etc.

Extensibility & Integrations

Analytic KPIs & Dashboards

Mobile, Chatbots, Blockchain


Predictive Analytics

LogisticsManufacturingOrder ManagementProcurement Maintenance

& Service

Supply Chain Planning

Collaboration, Visibility And IoT

Inventory & Cost Management

Globalizations & Localizations

Product Lifecycle Management & Product Master Data Management

B R EA DT H D E P T H I N N OVAT ION

The Oracle Digital Supply Chain Platform

OTM Cloud: Digital Assistant Use Cases

Status Inquiry

Rate Inquiry

Actions/Workflows

Entity Creation/Update

Help/How-To


What’s the status of my order?

I want to create an order.

Are there any shipments coming in this afternoon?

How much does it cost to ship …

Help me set an appointment

Which orders are late?

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.34

Unilever is one of the world’s largest and most successful “Consumer Brands” businesses with a turnover in excess of $60bn. From their 247 factories, Unilever sells 180 billion products every year in 170 countries.

Optimiseall assets and material

movements across the business

Simplifyand automate processes, reduce locations, minimise

3PL dependence and improve collaboration

Lesstransportation cost and CO2 emissions

CUSTOMER PERSPECTIVE

We needed to reach more customers in more places, which led to a 60% increase in volume and the need to re-design their global logistics network. Also, we wanted to Improve Customer service, reduce Costs whilst maintaining their 2010 Carbon footprint levels. So Oracle Logistics Cloud proved to be that solution, a single transportation for all modes – road, rail, barge, air and ocean, across all geographies

Why Blockchain for the Enterprise?

Trusted TransactionsWithout Intermediaries

Reduced Costs

Faster Processes

Real-Time Transaction Visibility=

SCM Applications using Blockchain & IoT


Product usage tracking for Rental, Warranty, Service, & Insurance for high-value assets

Comprehensive Track and Trace system for food and pharmaceuticals safety

Pedigree, Serialization and Genealogy of product components

Smart Contracts, Distributed Ledger on Blockchain Platform

Shipment Notifications, Bill of Lading, Manufacturing work orders

Purchase order, Sales order

Service records, Warranty information

Assets, Equipment and cargo conditions, Predictive Insights

ERP Customer Experience Internet of Things

Monitor transactions and movement of assets or goods across organizations

Lot Lineage and Provenance

Warranty and Usage Tracking

IntelligentCold Chain

HCM

IntelligentTrack and Trace

Supply Chain

37

Choose Your Path

Enterprise Transformation

Functional enhancements forimmediate value

Divisional Modernization

PLM

SCP

OTMWMS

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Thank You!

Michael Lim

Director/ GTM LeaderERP & Digital SCM, ASEAN & North Asia

[email protected]

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The New Paradigm – Digital Supply Chain & Industry 5