Industry specific cover image

The Value of the Oracle Demantra Benefit Analyzer

Tool (BAT) for EMEA Sales, Specialty Sales & Pre-Sales

Timothy Hughes Business Development Director VCP - EMEA

Sean Monahan Senior Director, Oracle Insight Global Scalability
Thursday 5th March 2009
Agenda

What is a Benefit Analysis Tool (BAT)?

Business Case Capabilities
How to use the BAT
BAT Process
Value Chain Planning (VCP) Business Drivers
VCP Best in Class Vs Laggards
Case Study Volvo Penta
Final Thoughts
Criticality of the Business Case Showing a Quick ROI in a Down Turn
Other Ideas on Getting the Total Project Cost Down
Next Steps
Questions and Answers

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Oracle Internal Confidential and Proprietary. 2
The Oracle Insight Benefit Analyzer Tools (BATs)
Will Help You and Your Sales Teams to,

Qualify Target Companies Better and Faster

Accelerate Your Sales Cycles

Grow (or Hold) Your Deal Sizes

Minimize Your Price Discounting

Increase Your Win Rates

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Oracle Internal Confidential and Proprietary. 3
 How to Access the 12 Oracle Insight Benefit
s
Analyzer Tools (BATs) & the CPT a se
00 c one!
r 5, 7 8 al
e 0
Ov Y20
C
in

Available BATs (12):

http://insight.oraclecorp.com,
then select BAT & CPT Quick Links Business Intelligence
(top upper-right-hand side) Customer Relationship Mgmt
Financial Mgmt
Human Capital Mgmt
Master Data Mgmt
Direct Links (For Bookmarking): On Demand
Oracle Demantra
Oracle Process Manufacturing
BAT: http://tools-insight.oraclecorp.com/bat
Oracle Transportation Mgmt
Procurement
CPT: http://tools-insight.oraclecorp.com/cpt Product Lifecycle Mgmt
RGBU

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Oracle Internal Confidential and Proprietary. 4
 The Benefit Analyzer Tool (BAT): Value
Information and Business Case Capabilities

What is it?
Web-enabled solution pillar and module
specific value calculator
Reference tool for value messaging at any
stage of the deal
Available for 12 areas today
Most effective for:
Demand Generation
Quick ROI estimate (budgeting)
Full collaborative business case
Success metrics:
5,700+ uses since Jan 08
2,000+ users globally
Usage by SC, Specialty Sales, OD, ASM,
IBU, Insight and others
Field feedback:
Great encyclopedia of value info
Very credible and efficient with customer

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Oracle Internal Confidential and Proprietary. 5
How the Sales & Sales Support Field Uses the
Oracle Insight Benefit Analyser Tools (BATs)

With Upsell Customers and Prospective Customers

Demand generation, for example, Forensic Accounting
Preliminary benefit analysis
Proving our Supply Chain Credentials
Full-scale return-on-investment (ROI) analysis
Industry Best Practice Metrics and Bench Marking
ROI Tied to Oracle Solution
Transformation Plan
Partners Willing to Commit to Payment on Benefit
Work with Partner and Oracle Finance to Smooth Payment Profile to Benefit Realisation
Model.
Even When No ROI Has Been Requested
Discovery-question preparation Link Benefit to a $Value
Justifying Scope Increase
Show value of implementing software licenses already purchased or implementing upgrade

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Oracle Internal Confidential and Proprietary. 6
BATs Value and Process for Customers/Prospects

Each BAT allows the customer/prospect to assess the value of the chosen
application in collaboration with the Oracle team, based on market-proven
value levers, independent third-party benchmarks and Oracle application
benefits, while easily and quickly generating the corresponding business
case/ROI along with the supporting presentation materials.

Step 1: Preparation (typically 1-2 hours)

Step 2: Information Discovery (typically 2-4 hours)

Step 3: Benefit Validation (typically 4-6 hours)

Step 4: ROI and Final Presentation Validation

with Champion (typically 4-6 hours)
The Value of Oracle Transportation
Management (OTM) for McCain Foods

Friday, 15 February 2008

Step 5: Final Presentation to Board and C-Level

Executives (typically 1-3 hours)
Total Typical Customer/Prospect Investment: 12-25 hours

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Oracle Internal Confidential and Proprietary. 7
 <Insert Picture Here>

Value Chain Planning (VCP)

Best in Class vs Laggards

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Oracle Internal Confidential and Proprietary. 8
 Potential ROI - Example
Item # Assumptions ABC Company XYZ Company
1 a Quarterly cost of sales 715,250,000 247,500,000
Reduce b % of sales that are not direct ship 50% 50%
Days on c Days of inventory currently carried 262 367
Hand d Target days of inventory 261 366
e Annually non direct ship cost of sales 1,430,500,000 495,000,000
f 1 day of inventory 3,919,178 1,356,164
g $ carried 1,026,824,658 497,712,329
h Projected $ Inventory Carried 1,022,905,479 496,356,164
INVENTORY REDUCTION 3,919,178 1,356,164

2 h Current fill rate 95% 95%

Increase I Target increase in fill rate 1% 1%
Fill Rate j Target % of recovered sales 10% 10%
k Annual Sales 9762000000 3280000000
l $/point fill rate 10,275,789,474 3,452,631,579
REVENUE INCREASE 10,275,789 3,452,632

Increase 3 m Projected $ Inventory Carried 1,022,905,479 496,356,164

Direct n Target increase in direct shipments 1.0% 1.0%
o INVENTORY REDUCTION 10,229,055 4,963,562
Ships
4 q Obsolete Inventory 1000000 1000000
Reduce r Target reduction in obsolete inventory 60% 60%
Waste INVENTORY REDUCTION 600,000 600,000

5 s Monthly finance charge to hard commit inventory 200,000 200,000

Reduce t Target reduction 10% 10%
Finance REDUCE FINANCE CHARGES 20,000 20,000
Charges
TOTAL One Time Inventory Reduction $ 14,148,233 $ 6,319,726
TOTAL 1st Year Cost Savings $ 620,000 $ 620,000
TOTAL 1st Year Revenue Increase $ 10,275,789 $ 3,452,632

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Oracle Internal Confidential and Proprietary. 9
 S&OP What Value?

Challenge Drivers S&OP Impact

Customer Collaboration Reduce Stock-outs up to 15%
Drive Top-Line
Initiatives, VMI, Improve Increase order fill rates up to 40%
Revenue forecast accuracy Increase forecast accuracy by 45%

Improve Improve service levels and Reduce Inventory up to 8%

Customer reduce inventory, logistics Reduce logistics cost up to 65%
Service costs Reduce returns up to 25%

Increase Target promotions to local

Improved revenue and profit growth
Promotion demographics, predict
Reduce price protection claims by 40%
Effectiveness sales volume increases

Enable Consensus demand statement cutting

Balance Supply & Demand,
Sales & Ops across organizational boundaries,
Operate to a single plan
Planning shaping demand to supply constraints

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Oracle Internal Confidential and Proprietary. 10
 Best in class vs. Laggards
Demand-Oriented Value Chains Deliver Superior Performance

Best-in-Class Average Laggards

Demand Driven Leaders Are Efficient

.And Outperform Their Competitors:
15% less inventory Increased gross margin
17% stronger order fulfillment Higher customer retention
35% shorter cash-to-cash cycle times

Sources: AMR Research 2005-2007; Aberdeen Group 2006-2008; Oracle Insight

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Oracle Internal Confidential and Proprietary. 11
Volvo Penta
Oracle Confidential and Internal Use Only
COMPANY OVERVIEW
Volvo Penta supplies Marine engines produces in Sweden,
China and the US to global commercial and leisure market
ORACLE SALES TEAM PERSPECTIVE
Volvo Group has got a SAP strategy
Business Objectives: The CIO and project team are hard-line
Shorten lead time, increase product availability, improve negotiators that operate in an industry that is
cash flow. known for low margins. The attitude of
Implementation of a global, integrated and optimised management is, every Krona saved goes
supply chain process based on a standard software directly to the bottom line which gives the
solution company additional money to spend on our
Related Business Strategy: manufacturing operations. The Demantra
Create a new and globally centralised planning function Business Case helped us hold our pricing
Automate business processes as much as possible. with Volvo Pentas executive management.
Growth objectives After Volvo told us that they would slip the
Cost and capital efficiency decision to June we were able to show
Customer satisfaction them that the delay would cost them 450K
Swedish Krona each month they delayed.
THE DEAL The cheaper situation was to buy the
Date Won: May 2008 software. All of my selling situations from
Oracle Solution Sales and Operations Planning (S&OP). now on will use a Business Case.
$1.0 Million Ernst Stegwee, Oracle ASM
Customer came to us in April and said they want a smaller
scope to the project and to make this commitment in June.
Business Case enabled us to hold the deal value Vs the proven
business case. We showed that if they delayed the project it will
cost them more.

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Oracle Internal Confidential and Proprietary. 12
 Final Thoughts

Given current economic downturn and customer/prospect

requirements, we are seeing at least two buying processes
on every deal:
Business Case / Capital Expenditure (Capex) and Opex Process
Software Evaluation Process

BATs can help you (proactively) deliver the Business Case

Keeping the Deal Size Up
Limiting Cancelled or Delayed Projects Compelling Reason
Provides a Discussion Ground for Up and Cross Sell
BUT Keep your Powder Dry This is Wasted Below C-Level!

In the Current Economic Climate

It Is Usual to Show a
Demonstrable ROI of 12 - 24 Months

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Oracle Internal Confidential and Proprietary. 13
 Speed to Value - Business Accelerators

Provide the foundation to

packaged solutions Accelerators Education
Audio
Package the right flows with the
right bundle of applications for How To
midsized organizations Guides

Partners extend Business Business Flow

Accelerators to create industry and Models & Videos
region-specific application
configuration packages
Setup Tools

Test Scripts

Reports &
Templates

Reduce the cost of the Implementation

Speed to Benefit Quick Win
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Oracle Internal Confidential and Proprietary. 14
Where Do we Go From Here?

Sean Monahan and the VCP Team to

Offer Training over the web
Hand-hold you on your FY09 Q4 ROI Outcomes
(Even if the customer is paying an SI to do the ROI, we can still assit both
the prospect and SI.)

Support can be over the web or onsite through the EMEA VCP team.

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Oracle Internal Confidential and Proprietary. 15
Final Request
For existing and new Edge opportunities

Add the Co-Prime Rep to the Sales Team

Add the relevant product as a Product Line

Copyright 2009 Oracle. All rights reserved.

Oracle Internal Confidential and Proprietary.
 Value Chain Planning (VCP) Organisation Chart
Roger Turner- VP
VCP EMEA

Andy Robertson Glen Campbell Timothy Hughes

UK, Ireland, Israel & Senior Sales Consultant Bus Dev Director
Benelux VCP EMEA VCP EMEA

Recruiting Vikram Singla

Italy, Spain, Portugal & Senior Sales Consultant
France VCP EMEA

Klaus Mehr Joachim Schulte

Germany, CH & Senior Sales Consultant
Nordics VCP EMEA

Tamer Farouk Cyril Lacroix

VCP / OTM / PLM Senior Sales Consultant
MEA TPM EMEA

Janos Jahola Sharon Eliasi

VCP / PLM Senior Sales Consultant
EE VCP EMEA

Recruiting Marcin Podwojski

VCP / PLM Senior Sales Consultant
CIS VCP / PLM EE

Correct as of 19th January 2009 Copyright 2009 Oracle. All rights reserved.
Oracle Internal Confidential and Proprietary. 17
 Contacts

Name Role & Expertise Email

Bus Dev Dir Value Chain Planning (VCP),
Timothy Hughes Timothy.Hughes@oracle.com
EMEA
Senior Director, Oracle Insight Global
Sean Monahan sean.monahan@oracle.com
Scalability & IBU

For Oracle Demantra Benefit Analyser Tool (BAT)

Training, Assistance and Deal Support Anytime!

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Oracle Internal Confidential and Proprietary. 18
Questions

Questions

Q&
A
Finish

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