Oracle Fusion Applications Webinar

Oracle Fusion Applications Release 1.0 Scope and Cross/Up-Sell

Opportunities, March 11 t h , 2010
Presenter: Group VP Chris Leone

MR. CHRIS LEONE: Good morning everyone. This is Chris

Leone, group President of Applications Development. You're
here today in a series of events around Fusion Application.
Today we're going to be going through release 1 scope and
some cross-sale and up-sale opportunities. This presentation
is just one in a series of presentations that we will be
doing. As I go through version 1 scope or release 1 scope, I
will touch on all the families. But recognize that we will
have individual deep dives into each one of the families that
I'll touch on today. So you will get plenty of more detail
as we progress in this series of Fusion Application
presentations.
So with that, welcome aboard and let's get started. Today
we're here to talk about Fusion Applications and one of the
key things that we set out to do when we're developing Fusion
Applications was to think about what we can change to develop
this next generation of software. And if you think about how
applications were developed, and most of the applications
that are out on the market today, their data models, their
infrastructures, their tool sets, were designed in the '90s,
late '80s. And they were really designed to enable the
automation of business processes. They were really designed
for the transaction worker. Most of them were built on
proprietary technologies. Really what we set out to do was
to really change the game and how we were developing and
brings a next generation suite of applications to market and
really focus on first, the knowledge worker.
So a lot of things have changed. Obviously, BI and analytics
have come to the forefront in the majority of organizations
are leveraging. Those solutions today, to get better
information out to all of their knowledge workers as well as
with the onslaught of the internet and all the Web 2.0
capabilities, the knowledge worker has really changed. One
of the things that we have really tried to do and design in
from the ground up is how we take advantage of these
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capabilities and really take a step back in our user design

and our user experience to encapsulate business intelligence,
Web 2.0 collaboration. And do that in context to the
business flows or the transaction flows throughout Fusion
Applications. And I will talk more about that as I go
through this session.
Second is recognize that many of the systems out there like
SAP are very, very hard-coded, rigid applications and rigid
business processes that are very difficult to tailor to the
specific needs of a particular industry or particular
business process within a particular industry. One of the
things that we're really focused on was around how we can
provide a level of business user extensibility. As well as
the ability to change or configure business process flows in
our applications to make it easier not only to do that from a
business user prospective, but also easier to maintain and
support and upgrade over time. So another critical area that
we focused on was business agility, recognizing that many
organization's business model changes every few years . They
go through mergers and acquisitions. So a level of business
agility just built natively in was critical to our design
principles.
And then finally part of Oracle's mantra is build a design
based in open standards. And you will see that as a critical
component of our Fusion Applications. Really from the ground
up we designed and built these applications on our standardsbased, Middleware technology. I will go through some of the
details of about what we have done and how we have done that.
But at least I will say, all standards-based technologies
platform leveraging the latest and greatest in the Middleware
technology stack. And I will give you more details as we
move forward.
One of the things that I do probably two or three CVCs a
week. And one of the things that I always go back to is when
we talk to our existing customers, Oracle customers, whether
they're running E-Business Suite or Siebel or PeopleSoft or
JD Edwards or one of our Edge applications, is to continue to
reiterate our message around our continued investment in
Applications Unlimited. It is critical that customers know
that their investments are protected. We will continue to
invest going forward. All of these product lines have a
general manager in place; someone that leads a development, a
QA and support organization that is dedicated to the
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continued investment and innovation in all of these product

lines. So it is one thing that we need to continue to
reiterate and it's a key part of our value proposition going
forward.
On top of that, we have also made investments leveraging our
Fusion Middleware technology stack. And what we have done
here is try to drive innovation into all of our Application
Unlimited releases. We have done that by up taking a lot of
the Fusion Middleware or providing the opportunity for
customers to uptake components of the Fusion Middleware
technology stack to add value in their current installations.
Just a couple of examples, simple examples are all of the
product lines that you see here are leveraging our standard
for production report writing, BI Publisher. It is embedded
in all of these product lines and we ship that as a part of
the standard releases of all the product lines that I have
just mentioned.
We go beyond that. We have integrations a common set of
functional and industry specific data models in our OBIA
applications. We have integrations from those to all of
these product lines as well. And then we have gone far
beyond that to integrate capabilities in Enterprise Manager
and Identity Management and Web Center. So all of our
application families have up taken and built integrations or
packs to, the majority of the Fusion Middleware technology,
to drive value and drive innovation into all of those product
lines. And on top of that, we are investing in a next
generation suite of applications. The question that I get
asked most, or I get asked a lot from customers, is there is
a lot of confusion as to what this suite of application is.
Is it just leveraging the Middleware technology stack and
potentially AIA and maybe stringing together, through
technology, all of these applications? No, Oracle Fusion
Applications is a suite of applications built from virtually
the ground up to take advantage of not only a standards-based
technology stack, but really bring forward the user
experience, a lot of innovation form a products perspective
and really incorporate some of the latest and greatest
capabilities around. Embedding analytics or intelligence
throughout out applications and as you get some
demonstrations throughout this series, you will see how we
have tried to add a significant amount of intelligence to
help the knowledge worker, the business user, across all of
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our applications. And take advantage of intelligence or

extra information as they go and perform their day-to-day
activities.
We have also taken advantage of many of the Web 2.0
capabilities that you will see. We did not just slap these
capabilities on the side and do it as an afterthought. We
really decomposed our business processes and our task flows
and tried to inject our assess feeds where it made sense, in
context to a business activity or a business process or a
business task flow. The use of wikis and collaborative group
spaces are put in specific areas within our applications to
add value to that particular process or that particular
business flow. Contextual help is another critical thing
that we have done to really drive value and lower the cost of
adopting Fusion Applications.
So when you think about Fusion Applications, it's a suite of
applications built form the ground up to take advantage of
the Middleware technology stack as well as drive additional
innovation, leveraging a lot of the capabilities that I just
described.
Let us get into the scope. So at a very high level our focus
on scope was to cover the 80/20 of applications in a release
1 timeframe. So when I talk today, this is all about release
1. What I get asked a lot: is this the entire scope for ever
or is this just release 1? I am going to be talking about
release 1 scope today. So everything you se e is related to
the first release of Fusion Applications. And I will get
into the details in the next slide.
So financial management will be there and we will have human
capital management, sales and marketing and CRM. We are
really focused on the sales and marketing aspect and I will
talk about some of the innovation's new capabilities we have
in this area that we are bringing to the forefront. In
supply chain, Steve Miranda mentioned, as well as I will
mention, we focus on a couple new innovative areas in supply
chain. Core manufacturing, core work in process, MES, all of
these is not in version 1. We did not target manufactures
for the first release. However, we do have solutions that I
will talk about in the next slide where we can help enable
drive value for customers that are running our manufacturing
solutions or other manufacturing solutions today. So I will
talk about supply chain management.
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In the project portfolio management area, there is a big

release. I will talk about what we are delivering there.
Procurement is part of version 1 and of course governance
risk and compliance full suite there will be delivered as
part of version 1. And let me get into the next level of
detail. I will walk you through some of the modules in this
release. Again, we will have members of the strategy
organization come back and deliver more detail sessions
around each one of these families. So as they appear on the
slide, we will have a deep dive hour session in financials
and human capital management and so forth. So stay tuned for
more sessions to come.
Let me go through at a high level what we targeted. Again,
the target was trying to get to 80% core functionality in a
release 1 timeframe. So when you think about financial
management we focused on core general ledger, AP, AR, fixed
assets, some cash managements, so things around bank
reconciliation and capabilities there. Obviously, the common
modules are there for things like inter-company and tax.
Those capabilities are all part of version 1. And then each
area should list KPIs and dashboards. Not only will we have
a series of embedded analytics throughout all of these
applications, we will also have a suite of OBI applications
that are designed and built for Fusion. It is a set of VTL
maps for BI applications.
As I get into human capital management, again, core HR, core
benefits, total compensations that will have a compensation
statement. Incentive comp will be in version 1 whether you
look at it from a CRM perspective or in human capital
management an incentive comp module will be there. Work
force management, we will have pallet management in version
1, primarily focused around the performance, goal setting,
worker directory capabilities. But that will be delivered in
version 1 and again, a suite of KPI's and dashboards as well.
As we get into Oracle Fusion supply chain management, the
product information data hub will be delivered in version 1.
Global order promising and distributed order orchestration
will be sold and combined together, for the most part, for
customers. I will go through the details, really trying to
connect multiple capture and multiple fulfillment systems.
We will have cost management and logistics around shipping,
receiving and inventory in version 1. Again, most of what we
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use inventory for will be for direct inventory related to

procurement. But that is Oracle supply chain management.
As we get into Fusion project portfolio management, we will
have project costing, a lot of the back office capabilities
related to costing. Billing, budgeting and forecasting will
be part of release one. Significant investment and
performance reporting and you will see we are leveraging a
lot of the great technologies on the BI side where we have
embedded EssSpace for specific project performance reporting,
project control. I will talk about some of the integrations
here that we have, but project integration gateway is really
designed to integrate to market leading scheduling and
project solutions out there like Primavera, one of our own,
and for the lesser used project management or project
scheduling tools out there like Microsoft Project. Project
integration gateway is that interface to integrate to Fusion
project portfolio management.
As we get into procurement, pretty much the entire suite of
procurement is in version 1. Significant investments in
sourcing, purchasing, self-service procurement and you will
see some unique capabilities as we get into the deep dives
here. Self-service procurement, obviously this solution is
used on occasion by users within an organization. This is a
great example where we are able to move the ball forward
leveraging capabilities like contextual help. So if it is a
self-service procurement flow and you have not been in
ordering a Dell laptop in a while, we can actually walk you
through a video to explain, in very simple terms, how you can
go order a laptop using our self-service procurement
solution. But procurement contracts is available in version
1 and I will say that one of the big advancements that was
made around contracts is we have a single centralized
contract module for managing broader contract terms and
conditions. Obviously, this has been targeted for
procurement contracts as well as project contracts for the
specific needs of the buyer working with their supplier. So
procurement contracts is in version 1 as well as supplier
portal.
And then we will have spend analytics as part of this release
as well. Obviously, that is a definite need to understand
your spend within the organization. I will go into some more
details as we go forward. As we get into Fusion sales and
marketing, we are really focused on the sales optimization
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aspect of CRM in the first release. So the customer mass or

customer data hub will be delivered. Sales, light marketing,
mobile will be delivered in version 1. Obviously, Outlook
integration is critical for a sales person. And then we have
some innovations, some new capabilities around territory
management. So the assigning is from both a t op down and
bottom up perspective of quota. I will give you some
coexistence scenarios or use cases around territory
management, which is an innovation in sales and marketing.
Finally, we have Oracle Fusion governance risk and
compliance. So we would deliver the full suite of GRC with
release 1. Actually, it will come in two components. The
first component is really around process orchestration, the
ability to document your key controls and to associate those
key controls or those key risks to key controls within your
organization and make sure that the process owners are
signing off on those key controls. That relates to financial
compliance, IT risk, risk management, issue management. That
solution called GRC manager is on the Market today, built on
the 11g tech stacks. So it is available and shipping today.
And the rest of this suite as far as automating controls,
whether they're access controls related to segregation of
duties, or transaction controls or configuration controls,
looking for ways to automate policies or controls within your
ERP system, will ship with the Fusion applications and be
tightly integrated when Fusion version 1 ships.
So that is a quick walk through of scope and again, we will
have more details in all of this in the sessions to come. So
when we talk about Fusion applications, the high-level themes
that we talk about are really next generation productivity.
I have given you a number of examples of the user interface,
leveraging analytics as well as Web 2.0 capabilities. But
one of the key things that we have really tried to drive in
the Fusion applications is this concept of delivering what
you need to know and bringing that to the forefront, very
exception based, into your work list. Bringing all the
information that you need to know and then driving to what
you need to do, or who you need to collaborate with, to get
that priority done in your day to day activities. So a huge
investment in productivity, user experience and user design
when into Fusion version 1.
Adaptability is another key investment area. I spent some
time early on but really adaptability is how we support the
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ability to adapt to changing business processes, business

models. There is a lot of flexibility. All of our workflows
was built on a very flexible SOA suite based on people
technology to be able to extend, configure, change our
business process flows very, very easily. Not only is it
easy to change, it is easy to manage and support and upgrade
over time. On top of that, in the adaptability category, we
spent a lot of time on extensibility of our application and
configurability. So not only have we made significant
investments in the install and set up, we have a set of
significant processes that are around setting up the
applications. We have the ability to walk through a pre defined verbal script to ask you, is this a multicurrency
application? Is this designed for one or multiple business
units or operating units? It helps you walk through the set
up process, as well as a lot of extensibility and
configurability of the UI. This is a significant investment
that we're making not only in CRM to compete with the sales
forces of the world, but all of the applications in Fusion
can take advantage of this extensibility and personalization
framework that we're bringing in version 1 around
adaptability.
And then finally, one of the things that we hear a lot from
all of the CIO's or people within the IT organization, that
their role and their job is to maintain and manage these
applications, is around manageability. How are you going to
support, configure, and upgrade our applications? So we have
made a significant investment in manageability around
capabilities like performance or enterprise manager. The
components of enterprise manager we will be shipping with
version 1 so we can easily understand if there is a
performance bottleneck. We will be supporting all of the
availably capabilities to make sure that we support RAC and
fail over on the middle tier as well as capabilities to
diagnose issues. We have a standard diagnostic framework to
really help support, troubleshoot, for customers, issues that
are arising. So it is a significant investment in
productivity, adaptability and manageability cross Fusion
applications.
So they start to think about some of the recommended actions
and one of the things that I like to highlight is: do nothing
is not an option for our customers. When we talk about the
recommended actions is when we say stay current. We want all
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customers to upgrade to the latest releases of Applications

Unlimited. So it is do something, upgrade, significant value
in all of the latest releases. And as you are upgrading,
look to build a future-proof ready foundation. Take
advantage of the SOA suite and AIA or look at Web Center to
start your journey around collaboration or identity
management to externalize your access and provisioning and
the roles within your enterprise or a host of other
capabilities on the Middleware technology stack to really add
value to your current Application Unlimited release. But
also future-proof your roadmap because these are all the
technologies that Fusion applications are leveraging natively
in the stack that we will be shipping with.
So we get you, what are your next steps. When I talk t o
customers, we have done a lot of SI updates. Obviously, we
have updated OCS. A lot of customers that we talk to, we
really talk to them about three scenarios or three things
that they need to consider. Oracle has a portfolio of
applications and when customers are doing three to five year
road mapping activities, which many of them are undertaking,
we talk to them in these context. First is, continue on your
current path. I will give you examples of what we are doing
and how we are investing in all of these areas. But
continuing on your current path is the most important thing
that we can communicate to customers. Upgrade to the latest
release. Take advantage of the latest capabilities. Stay as
current as possible so you do not get behind on the
technology side and you continue to add value within your own
organization based on what we are delivering and all of the
AU releases.
We are going to spend a significant amount of time, or a
little bit of time talking about how customers can begin to
move to Fusion in a step-by-step manner. So one of the
things that when we talk about how Fusion applications can be
deployed, we have a number of deployment options. In fact,
we have a session where we will talk in detail about the
different deployment options in a later part of the series.
But suffice to say, we will be able to deploy similar to how
Oracle EBS deployed today in a single global instance, so
running HR and financials in the same instance. We will be
able to deploy in a pillar deployment strategy similar to how
PeopleSoft and Siebel deployed. So CRM in a separate
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physical instance form HR or HCM as well as financials and

supply chain.
But also we have architected Fusion applications in more of a
modular way. Since it is built on a services oriented
architecture, we will give you some examples of how you can
take smaller pieces and integrate those back into Application
Unlimited releases. So the second component is moving to
Fusion step-by-step. And then finally, we will be producing
upgrades to delay the Fusion applications and I will spend
some time on this. But obviously, customers can look to
upgrade a broader business process. So I want to upgrade my
higher to retire process or my financial close and reporting
process. We will provide upgrades to the current release a nd
the current release minus 1 as well as customers might be on
older release. They might be on PeopleSoft, HCM 8.3 for
example, heavily customized, used that designer and over
customized the application, and they want to start clean.
That might be an opportunity to upgrade to a full hire to
retire business process into a release one Fusion
application.
So these are the three steps: continue on your current path,
this is probably most important, look to move to Fusion step
by step, and upgrade to Fusion applications a broader
business process. Let us go through each one of these in a
little bit more detail. Again, I will spend most of the time
on the middle box moving to Fusion step by step. We think
many of our early adopters will begin to take Fusion in a
step-by-step fashion.
Continue on your current path is the first section. One of
the things that we need to make sure that we reiterate to
customers is that we have invested in all of our Application
Unlimited releases. This investment will continue. Larry at
the last Open World reiterated that we would continue to
invest in all of these applications. It will be a choice for
customers if they choose to look at a fusion application. We
will invest in these for ten plus years. So it is not just
ten years, it is ten plus years. So it is really an
unlimited amount of investment that we have committed to
investing in these. You can look at our history. We have
pushed out a number of releases and we will continue these
roadmaps going off in to the future. So it is one thing that
we need to continue to reiterate to our customers.
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The next area is moving to Fusion step by step. I will be

spending a little bit of time here. Again, what we're going
to be going through here is opportunities for customers to
stay on their current core ERP, core HCM, deployments of a
PeopleSoft, of a E-Business suite, of a JD Edwards, and look
to take advantage of some of the innovative modules, some of
the new deployment methodologies like an on demand or SAS
deployment model. We will be providing integrations back to
those latest AU releases for some of these coexistence
scenarios that I will be going through in the next several
slides.
So first section I will go through is really what we are
calling enterprise resource planning but the three families
that we are bucketing into this is financial management,
procurement and project portfolio management. We will have a
section on early adopters and the type of early adopter
customers that we are looking at. We will have some
opportunities, and I will go through some of these
coexistence opportunities here, but many customers if they
are going to be looking at project costing or project
billing, they will probably deploy core financials along with
that. If they are looking at purchasing and self-service
procurement, they will probably be deploying financials along
with that. But let me go through some of the coexistence
opportunities in the next few slides.
This is the footprint for Fusion financials. I will not go
through this again but you can see what is available in
release 1. Here are a couple of the options. So the first
option is obvious a customer could run Fusion financial
stand-alone or Fusion financial and purchasin g, or PPM,
however they want to deploy it. But a lighter option,
coexistence option, is to deploy something called the Fusion
financials accounting hub. And the Fusion financial
accounting hub we will go into more detail has the ability to
bring in, at the transactional grain, information from one or
multiple ERP systems. So an opportunity for customers to
start to consolidate their ERP foot print and take advantage
of some of the capabilities in Fusion. So what you see here
is a blown out picture of the Fusion accounting hub and some
of the capabilities. What customers would do is plug this
into maybe one or multiple instances of EBS, just as an
example. They might have regional instances. They might
want to move more towards a shared services environment from
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an accounting prospective. They also might want to bring in

some transaction detail from a banking ledger. Maybe they
have a fatter ledger from some of their banking transactions,
some customer related information. They could bring this in
to the financial accounting hub. They could perform their
entire standard accounting entries. Because we will be
embedding some of the technology form our BI technology
EssBase, they will be able to have much more flexibility
around management reporting as part of the financial
accounting hub. So as they want to push out their cash flow
balance sheet or income statement reporting, they'll be able
to do that and have the tools on the front end to do ad hoc
analysis in Excel, to do PixoPerfect report writing or
financial report writing and some of the tools that are
available. So there is a lot more flexibility and again,
this is a replacement for some of the older technologies that
we had around InVision or ESG in prior releases. So there is
a lot more flexibility here.
On top of that, we will have integration to our Enterprise
Performance Management applications. As they bring out new
solutions to broaden the financial close process, it is a
great opportunity to take advantage of some of the disclosure
management or financial close process capabilities that are
coming out from the Enterprise Performance Managements
groups. There are great capabilities here in the financial
accounting hub as a stand-alone application. You can see
some of the fit because there is not a lot of verticalization
or localization that needs to be done here. This can be
rolled out virtually to any customer that is looking to
centralize this part of their business.
As we get into procurement, another key innovation or another
key capability here is obviously, you can deploy a procure to
pay process, integrate to financials. But let us talk about
some of the coexistence opportunities in procurement. Some
companies have, and there are some competitors out there
again, that only sell the procure to pay flow because of the
nature of Fusion procurement. We can certainly support
those. Those customers are companies like CitiGroup that
have a separate group, a separate instance of procure to pay.
It is a great example of potentially rolling out a
coexistence scenario that was related to procure to pay. But
the one I am going to be talking about here is more around
the Fusion secured services procurement deployment. A lot of
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companies, and we have our Fusion strategy CABs or counsels,

and one of the popular areas for customers around coexistence
was moving their sourcing, their procurement contract and
their spend into a central environment and integrating that
back to a stand-alone ERP system, whether it's PeopleSoft or
E-Business suite. So what's nice here is first, I can get a
handle on all of my spend by category so I can see where
spend is out of control, who I'm spending with suppliers that
aren't part of my global supplier network, where I have
contract and purchasing agreements with. I can set up
purchasing contracts and I can start to drive costs out of my
business by sourcing and breaking up RFP's to specific
sourcing events to drive costs out of the procurement or
buying with different vendors. So great opportunity, higher
ROI for customers to look to adopt, again, a step-by-step
component of Fusion and a Fusion shared services procurement
deployment.
General trick here and again, we think this can be available
for the majority of industry so I will not spend a lot of
time on this. It is straightforward. Oracle Fusion project
portfolio management, we will not go through scope again,
project cost and billing, budgeting and forecasting, it a big
release here. One of the key integrations that we will have
and I will get into the coexistence play on the next slide,
we will be able to coexist and have integrations to
Primavera. We have not targeted public sector companies in
version 1. We do not have a lot of the encumbrance
capabilities but we have been approached, even in this area,
to some of the national labs that are looking, very projectcentric organizations. They have Primavera for scheduling
and project management already in place. They are looking to
take advantage of some of the Fusion project portfolio
management capabilities that we have in version 1. So we
will have a very nice integration there, bidirectional
integration in release 1. It is a great opportunity to
connect with our GBU and we are working very closely with
them with their current release and we will have integration
when we ship version 1.
Again, geographic fit depending on, obviously, there are
dependencies here and we will get into more of those from a
localization perspective. Obviously, if it is a global
customer and their dependant on financials, there are some
differences in the localizations that well support. I will
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get into that in the next slide. So this is from a

localization perspective. We will be having more details as
we start to talk about the localizations that we support. I
am really targeting multinationals for a release 1. We will
have a roadmap at to the additional countries that we still
support. In some of these, as we get into areas like France
and Spain and Japan and China, we have some smaller gaps that
we need to close after release 1 for some integrations that
we've had in prior release like China had with some of their
releases in AU. We have integration for things like golden
tax. Those are things that we will be following up shortly
after release 1. But generally speaking, its broad coverage
from a global perspective in the release 1 time frame.
Let us get into human capital management. Human capital
management, again, we are still in the moving to Fusion step
by step, some of the coexistence scenarios that we will talk
through. Obviously, the deployment options are similar to
what I described on the first slide. You can deploy HCM as a
pillar, stand-alone pillar, or you could deploy it more as a
single global instance. So there is a lot of flexibility.
Let us talk about some of the coexistence opportunities. A
couple of those that come to the forefront first is Fusion
talent management either as an On-Demand or on premise type
solution integrating back to a release of PeopleSoft or EBusiness suite. We will talk about incentive compensation as
another opportunity as coexistence. So let us go through a
couple of those.
So first is talent management. There is a compelling
solution here. We have been brought in a few competitive
situations with some of the smaller needs competitors,
whether it is a talent competitor or a core competitor like a
workday where just the UI and the capabilities are
significantly advanced to where we have been in the past. It
really shows great against those competitors. So Fusion
talent management capabilities around talent review, goal
management, network at work, integrating back so exchanging
some of the core competencies, skills, employee person
information with core HR, whether its PeopleSoft or EBS,
we'll have that integration, which is always a concern for
customers. But the nice capability here is we will be able
to deploy this as an on demand or SAS environment or on
premise and integrate back without having to upgrade an
existing release of PeopleSoft or EBS. So there are some
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great capabilities to really sell back into the install base

in one of these coexistence scenarios.
Here is the fit. I talked to you about this on the last
slide. We will have some integrations that will be
available. We will get more into the specific releases, but
it will be more closely aligned with the later releases of
PeopleSoft and E-Business suite. Again, thus pushing to
encourage customers to get on the latest releases, we will
give them more options on not only capabilities in AU, but
integration options back to a Fusion coexistence opportunity.
Fusion incentive comp, there is a significant investment
here. Fusion incentive comp is one of those modules that
Oracle will be deploying in release 1. Obviously, Oracle has
a more than average complex sales compensation model. We
have sales overlays and overlays on overlays and we have
geographic distribution and product line distribution. So
sales incentive comp is designed to handle that complexity.
We will have integrations with some of the current AU
products on the CRM side. So if they are running Siebel CRM
or PeopleSoft CRM and they are managing their leads and
opportunities in one system and they are managing and paying
people out of PeopleSoft or EBS, we will be able to have
integration and incentive comp will be able to be a standalone module. Again, this one of those modules that will be
something that Oracle will look to uptake when we ship
release 1. There are great opportunities of coexistence
opportunity.
The Fits here, I will not spend a lot of time on the Fits,
but, obviously, you can see a lot of fits here. In Fusion
version 1, these are the, when you think about localization,
and again, this is not translation. This is localization,
specific rules, reports, payroll rules for these countries.
This is what we will be supporting in release 1. There is a
significant investment in the payroll engine, moving what was
a lot of capabilities that were pushed out into specific
localizations in the core engine, so big investment there.
We will simplify building out payrolls dramatically going
forward. But these will be the payrolls and the core HR
localizations that we will have when we ship release 1. But
we will have a plan to follow this up quickly with additional
localizations. So as you are thinking and talking to
multinationals, we will be partnering with a field and our
partners to make sure that you have the latest on the go15

forwards statement of direction so you can best counsel

customers on what their implementation should look like.
Supply chain management, we will talk about some of the
opportunities here. There is a big investment in really this
is a great area that we can look to pinpoint this end. One I
did not touch on was work force lifecycle management, which
is the on boarding process in HCM. That is really another
coexistence scenario on HR but distribute order orchestration
is in a similar vein. It is, basically, a composite
application that was designed to really sit between capture
and fulfillment systems. This is something that we have
gotten a lot of traction with our early adopters to date. So
what have we done here? We have really broken up the order
flow process from order capture, so the capture of the order,
configuring of the order, pricing the order on the front end.
Many organizations have one or multiple capture systems that
they have within their organization today. And on the back
end, many organizations have multiple fulfillment systems.
They might have JD Edwards at all of their plants. They
might have one of the bad guy systems like SAP installed.
They may have EBS. A good guy system they may have is BPics.
So the key part of the value proposition here is we can start
to centralize they order visibility into a central
environment. So distributor order orchestration coupled with
global order promising as well as integration to the
information data hub is a great solution for customers to
centralize this order orchestration process flow and start to
standardize this within their organization. Significant
value here if you look at how organizations are doing this
today. Many of them are answering phone calls, they have
stickies on their desktop and they are calling around for the
different fulfillment systems to see how they can split an
order, make it available to promise, all of those things. We
have automated that process. We have put it into an
application and we are delivering it in a very configurable
way in version 1. So distributed order orchestration is a
great example of how we have leveraged our Middleware
technology but really made it an application for the order
manager to be able to do their day-to-day job significantly
easier than they have in the past.
Enterprise fit, we have really focused on most industries.
We have had a lot of traction across all industries. High
tech and manufacturing has been where some of our early
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adopters are. This is one where we've got a tremendous

amount of traction with our early adopters almost to the
point where we have to get Aaron Shidler off the road and get
him back in the office so we can move on to other
applications. But there is a significant investment here and
a great opportunity with distributed order orchestration. It
is a lot of value for customers.
Sales and marketing, let us talk about what we are doing
here. So Fusion sales and marketing is a significant
investment. We really focused on the sales and marketing
aspect of this. It is really a significant step forward in
competing with Salesforce.com, a lot of extensibility,
capability, in version 1. Just to make sure that we are
clear, CRM on-demand, similar to all of our other Application
Unlimited product lines, will continue to be invested in.
This will be an option for customers. This will be deployed
in an on-demand or SAS environment as well as will be
deployed in an on premise environment. There are a lot of
innovations here. The one that I will tell you about from a
coexistence perspective is Fusion territory management.
Fusion territory management is a great innovation here,
really helping organizations optimize their account and
market coverage, managing territory assignment, quota
assignment, both from a top down and bottom up perspective.
It allows the organization to do white space analysis, making
sure that they're looking at their install base and assigning
territories based on the potential in that particular
territory versus just the number of accounts. So it is much
better coverage from a potential versus just the number of
accounts. So it is a significant step forward. This is
another module that Oracle will be looking at deploying
internally. Again, some of the targets here, whether it's
integrating into Siebel CRM where you're managing leads and
opportunities and using territory management for the
territory and quota assignment and having synchronization
between the two. It is a great opportunity from a
coexistence perspective.
I have talked about a number of these coexistence
opportunities and we will be going into more detail. Again,
this was a flyby so I do not expect you to have all the
details. I just wanted to make sure as we have the broader
audience, folks that represent the different families or the
different functional areas, able to see the different
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opportunities on the suite of Fusion applications that we

will be delivering.
So again to reiterate, we touched on current paths. That was
just move to Fusion step-by-step, a lot of the coexistence
strategies. The third component it upgrade to Fusion. So
this is when a customer, I'm not going to be going through
scenarios, they're pretty straightforward, but I'm going to
upgrade core HR, hire to retire to a Fusion core HR. It is a
choice for customers when and if they choose to upgrade. So
just quickly on the upgrade scenarios, so customers will be
able to upgrade in the simplest terms exactly the way they
have been able to upgrade based on the product line that they
have purchased today. So, what that means is if you are an
E-Business suite customer and you upgraded a single global
instance of 11.5.10 to 12.1, which all customers should be
doing, then you would upgrade similar to a Fusion if you
choose to do that and if the functionality and footprint and
all of those things are appropriate for you. You will
upgrade in the same fashion. Similar to PeopleSoft, we will
have a pillar upgrade as well as CRM; we will have a CRM
upgrade. But again, this is choice for customers. They can
continue on their current path or they can upgrade a module
to a Fusion application.
Okay? That was a walkthrough of scope and up sale
opportunities. In the last eight minutes, I am going to, and
we will take a couple of questions, walk you through the
knowledge repository quickly here. The knowledge repository
was put together. It is a development activity David
Kottcamp in strategy has really been driving this. But there
has been participation from the field as well as strategy and
development organization to populate a lot of the value
propositions in Fusion. What we set out to do was rather
than power point the field to death with all of the different
value propositions. We leveraged our development repository
internally. This is what we have used to develop and define
our applications to build out a series of differentiators at
the activity level. So Fusion was designed based on a
business process model and at the L3 or activity level, we
have defined a series of innovations or differentiators that
we will be producing for the field. So really what the
Fusion knowledge repository is meant to do in an encapsulated
way is to help educate the field, help enable the field and
help provoke the field and customers to understand what the
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value is, what some of the keys value statements are for
Fusion applications. It is not meant to be a tool that you
take to the board of directors with all of the well-defined
insights that we have out there. It is just an information
repository to help educate, enable and provoke internal.
This is a quick slide on what is in it for me. So if you are
a product strategy person, you can go to a central place and
get information and I will let you read this after the fact.
But there is a lot of opportunity here. We will talk more.
There is a whole section or presentation on the kno wledge
repository so we will not spend a lot of time going through
the bill schedule, but this will be a production application
based on our EDF technology and will be pushed out to the
field. You will have a continual update of capabilities in
release 1, release 2, all of those things as we go forward.
I am going to show you a quick demo of that. We have gotten
great support from the SWAT team as well as AGSS, fantastic
support across the board. The UX team, user assistance
documentation is helping us tremendously making sure that
everything is kosher, so great support there. Let me show
you before we end, a quick demonstration of the knowledge
repository and what we have available here.

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