1Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Oracle Integrated Operational PlanningAlign Operational Feasibility with Financial Goals

NameTitle

4Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Key Takeaways

• Align financial goals with operational feasibility

• Make faster and better business decisions

• Unlock the value of existing planning systems

5Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

<Insert Picture Here>

Agenda

• Business planning challenges

• Integrated business planning

• Oracle Integrated Operational Planning overview and benefits

• Customer success

6Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

The Business Planning ProblemThe Finance-Operations Disconnect

• Finance divorced from operational reality• Simplistic operational models and drivers• One way communication with operations• No way to calculate operational feasibility of the plan leading to…

missing the forecast

• Operations misaligned with financial goals• Detailed models to drive execution, not to dialogue with finance• Simplistic financial linkages• No way to evaluate financial impact of operational plan leading to…

adverse financial results

7Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Today’s Integrated Planning ProcessBlood, Sweat and Excel

ERP System

Functional Operational Planning

DemandManagement

CustomerManagement

Human Resources Planning

SupplyPlanning

ProductPerformanceManagement

LogisticsPlanning

Financial Planning

Long-TermFinancial Planning

TreasuryManagement

Financial Planning & Budgeting

WorkingCapital

Planning

ProfitabilityManagement

PerformanceScorecards

8Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Integrated Business PlanningBridging the Finance-Operations Disconnect

ERP System

Functional Operational Planning

DemandManagement

CustomerManagement

Human Resources Planning

SupplyPlanning

ProductPerformanceManagement

LogisticsPlanning

Financial Planning

Long-TermFinancial Planning

TreasuryManagement

Financial Planning & Budgeting

WorkingCapital

Planning

ProfitabilityManagement

PerformanceScorecards

IntegratedImpact

Analysis

FinancialPerformance

Modeling

StrategicOperational

Modeling

9Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Oracle Integrated Operational PlanningEnabling Integrated Business Planning

Financials SCM

Integrated Operational Planning

Human Resources

Long Term Planning

Corporate Development

Treasury Management

Value Management

Hyperion Strategic Finance

Integrated Revenue &

Profit Planning

Call Center Operations Planning

Key Materials & Capacity Modeling

Inventory Exposure Modeling

CRM Manufacturing

Only Oracle integrates…

• Operational planning to assess feasibility of financial plans

• Corporate finance to link operations to capital allocation and financing decisions

Annual Budgeting

Periodic Forecasting

Capital Expense Planning

Workforce Financial Planning

Hyperion Planning

10Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

What is Integrated Operational Planning

Business planning layer complementing functional planning systems• Rough-cut modeling appropriate for business decision making• Replaces patchwork of spreadsheet models

Integrated cross-functional planning models• Captures financial targets and operational constraints in a single framework• Integrated business impact analysis

Interactive what-if scenario analysis• Transparent planning models with business user control• Enables iterative planning and decision making

1

2

3

1 2 3

11Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Review Plan Exceptions Evaluate Alternatives

Assess Business ImpactUpdate Plan of Record

Marketing Sales

Finance

Supply Chain

• Create what-if scenario’s on plan revisions

• Rough-cut modeling

• Resolve constraints

Enabling An Iterative Planning Process

Manage collaboration

Assess cross-functional impact

Enable fast decision-making

Perform interactive scenario analysis

• Approve plan revisions

• Submit plan changes back to planning and execution systems

• Analyze critical gaps between financial and operational plans

• Compare impact of alternatives on key financial and operational metrics

12Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Integrated Planning Drives Key RequirementsNeed for Core Technology Innovation

1. Modeling of operational constructs• Rich expressiveness in modeling & calculation logic

• Complex dependencies, relationships, transformations

• Declarative calculations, not scripted

11

2

33

1

22

33

2. Rapid analysis of cross-functional impact• “Change anywhere, analyze everywhere”

• Evaluate financial desirability & operational feasibility

• Interactive response times

3. Robust analytic transaction framework• Scenario management & change isolation

• Reconciliation of concurrent plan changes

• System of record for plan changes: audit trails

13Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Oracle’s Change-Based Data ModelingUnique IP Delivers Powerful Capabilities

Scenario analysis does not require copies of data

Calculations proportional to changes, not data set size

Change isolation for robust scenario management

Reconcile concurrent plan changes with overlapping impact

14Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Solution ArchitecturePurpose-Built for Integrated Planning

ERP / Functional Planning Applications

Change-Based Data Modeling Engine

Impact Analyzer Scenario Manager Federated Modeling

Application and Process Layer

Planning, Analysis and Reporting

Data Feeds Plan Updates

15Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Analyze Financial and Operational ImpactPlan Revisions Supported by Fact-based Decisions

• Model plan revisions in familiar Excel environment

• Review financial metrics and operational constraints

• Assess impact of plan revisions interactively

16Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Manage Business Scenarios and Collaboration

• Create, submit and approve business scenario’s

• Include planning participants across business functions

• Manage planning workflow

17Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

High Tech andElectronics

Discrete and Industrial Manufacturing

Consumer Goods

Proven Value in Key Industries

18Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Move From Function-Centric Planning to Aligned Performance Across the Business

Before

Manual processes using hundreds of spreadsheets

Disconnected decision making within functional silos

Lack of alignment across sales, marketing and operations plans

Long planning cycle times due to batch oriented planning modules

Global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world

After

Integrated planning models across sales, marketing and operations

Operational decisions based on financial impact assessment

Improved alignment across demand plan, sales promotion plan, capacity plan and financial plan

Reduced planning cycle times in line with business needs

19Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Align Product Allocation Decisions with Business Priorities

Before

Hundreds of Excel templates with little consistency across planners

Lack of visibility and coordination in demand-supply alignment

Lack of business and financial impact analysis

Limited scalability to handle growing business volume & complexity

Seagate is the worldwide leader in the design, manufacture and marketing of hard disk drives

After

Consistent data and planning models shared across all planners

Proactive management of supply hot-spots in response to demand variability

Responsive decisions based on operational and financial impact analysis

40% gain in planner productivity leading to staffing efficiencies

20Copyright © 2008, Oracle and / or its affiliates. All rights reserved.

Key Takeaways

• Align financial goals with operational feasibility

• Make faster and better business decisions

• Unlock the value of existing planning systems

21Copyright © 2008, Oracle and / or its affiliates. All rights reserved.