April 21, 2023

c t i m o l e c u l a r i m a g i n g c o m p a s s i o n > t h a t i n s p i r e s a c t i o n i n n o v a t i o n > t h a t i m p r o v e s p a t i e n t c a r e t e c h n o l o g y > t h a t d e l i v e r s r e s u l t s c t i m o l e c u l a r i m a g i n g Oracle at

CTI Molecular Imaging, Inc.

March 19, 2004

April 21, 2023

CTI has been in business since 1983 and employs over 900 people. We are headquartered in Knoxville, TN and listed on the Nasdaq: CTMI,Web Site: http://www.ctimi.comGrowing ~ 50% annually

CTI enables providers, physicians and their patients to discover real life answers

through innovative molecular imaging solutions that improve the diagnosis and treatment of

cancer, heart disease, and neurological disorders. 

Who is CTI?

April 21, 2023

there’s a cancer cell with a distinct molecular signature

Before her x-ray would show a shadow

Before her CT could reveal a mass

Before she ever feels a symptom

What is Positron Emission Tomography & How Does it Work?

April 21, 2023

Positron Emission Tomography (PET)

April 21, 2023

What Is PET & How Does It Work?

FDG Molecule PETNETDistribution

Scanners

Cyclotrons

4

April 21, 2023

The PET Advantage

5

April 21, 2023

PET / CT Aids Diagnosis And Therapy Management

6

CTCT

PET

PETPET /

PET /TIME Magazine’s “Medical Invention of the Year” in 2000.

Society of Nuclear Medicine Conference’s “Image of the Year” in 2003.

April 21, 2023

CTI Provides AllProducts And Services For PET

Scanners

Molecular ProbesMolecular Probes

Detector MaterialsDetector Materials

14

Cyclotrons

Services

April 21, 2023

Why Oracle?

• Existing systems would not support our expansion

• They were:– Client / server– Non-existent– Out of business!

• Information was – Unavailable– Inaccurate– Managed in Excel

April 21, 2023

We had a Runaway Architecture

April 21, 2023

Conceptual Solution:Virtual Enterprise

• Internet centric

• Common data model architecture

• Scalable

• Secure

Oracle Technology

Patients

Customers

Insurers PET Providers

Employees

Stockholders

Investors

Suppliers

Distributors

Service

April 21, 2023

Phase I - PETNET Phase II – CTI, CPS, & PETNET 10/1/0

1200

4

Phase III200

3•Financials•General Ledger•Purchasing•Accounts Payable•Invoicing•Advanced Pricing•Project Costing

•Financials•General Ledger•Purchasing•Accounts Payable•Invoicing•Advanced Pricing•Project Costing•Project Billing•I-Procurement•Oracle Time &

Labor•I-Expense•Order

Management•Sales Tax

Interface

•Financials•Shipping Manifest•Globalization

•Discrete Manufacturing•Bar coding•PETNET•LEAN / Kanban•Electronic Device

History•Process Manufacturing

•DIS & CIS Interface•CRM

•Quoting•Service Contracts•Spares Management•Call Center•Field Service•Depot Repair•Sales Force Automation•Marketing

Project Timeline and Modules

•Discrete Manufacturing•Master Production

Schedule•MRP•Bills of Materials•Inventory•Agile Interface•Costing•WIP•Quality

April 21, 2023

Project Resources

• Outside consulting used to provide project management and Oracle knowledge

• CTI business staff for CTI business knowledge

• CTI IT developed an Oracle team as the project progressed

• When phase 1 began on June 15, 2001, CTI IT did not have any Oracle people on staff

• The CTI IT Oracle staff now consists of – Three Oracle DBAs (shared with other projects)– Two Oracle applications developers– Three Oracle applications specialists

April 21, 2023

CTI Project

• Advantages– Employees aren’t in love with the current system– Good software– Good people– Available funding– Business project

• Disadvantages– High growth environment– Separation requirements between units– Heavy matrixed resource plan– Competition with other high importance projects– Hard to get good data from legacy systems

April 21, 2023

Phase 1 - PETNet

• PETNet produces the radiopharmaceutical (FDG) used in PET scans– FDG has a half-life of 112 minutes– Typical dose has 10~15 mCi activity

• Project started 6/15/01 and system was live 10/1/01 with 11.5.4

• Independent pharmacy management system at 35+ sites was integrated to Oracle through OM open interface – changed the game from monthly upload of field data to a daily upload

• Advanced Pricing was implemented – eliminated time consuming, error prone manual pricing and review process

• Projects was implemented to track costs of capital and R&D efforts better

• About 50% reduction in billing time and monthly closing

April 21, 2023

Since the Go-Live for PETNet

• We’ve implemented– iProcurement for all PETNet employees and all PETNet

facilities globally– Cash Management– Added a UK subsidiary – new books and consolidation– Added joint ventures– Setup additional inventory organizations– Completed two successful upgrades and now run 11.5.7+

April 21, 2023

Phase 2 – Everybody Else!

• Started 5/6/02

• Business driven project

• Extends system to 3 more operating units with about 12 inventory organizations

• Six functional teams:– Procure to Pay– Plan to Produce– Financial– Order to Cash– Projects– Cost

• Heavily matrixed project organization

• Big bang implementation

April 21, 2023

A Complex Project

• 200 people to train• 250 Tutor Documents• 500 Business Processes• 22 Test Case Scenarios and Scripts• 24 Data Conversions• Rapidly growing company• FDA controlled• Over 100 Custom Extensions

• 1,100 employees• 100 people directly involved• Over $8,000,000

April 21, 2023

Supply Chain TransactionsA Simple Overview

CTI Pet Systems (CPS)

Unique Supplier

ManufacturingReceiving

Shipping

CTI Cyclotron Systems (CCS)Unique Supplier

ManufacturingReceiving

Shipping

OutsourceManufacturer

OutsourceManufacturer

OutsourceManufacturer

Distributor

Customer

Common Supplier

PETNet Pharmaceuticals, Inc. (PPI)

Unique Supplier"Manufacturing" -

28+ Nuclear PharmaciesReceivingShipping

Customer

Advanced Crystal Technologies(ACT)

Unique Supplier

ManufacturingReceiving

Shipping

CTI Detector Materials (CDM)Unique Supplier

ManufacturingReceiving

Shipping

CTI Sources,

ManufacturingReceiving

Shipping

CTI Services

ManufacturingReceiving

Shipping

CTI Distribution Company

ReceivingShipping

?

April 21, 2023

SLT

SteeringCommittee

John SharpProject Director

*Larry MillsProject

Administrator

Newell LanePlan to Produce

Team Mgr.

Habibi AndreProcure to Pay

Team Mgr.

Tom CrossOrder to Cash

Team Mgr.

Tanya PackG/L to Fin. Rptg.

Team Mgr.

Monica GallagherCost & Project

Acctng. Team Mgr.

Walter CromerIT Director

Te

chn

ica

l Te

am

Rusty CrispDevelopment

Manager

Sean WoodDatabase Mgr.

Dav id Gill - Project SponsorClif f reda Gilreath

Stev e Hile

Walter CromerJohn SharpRich Daniels

*JimStuart

*AnilTomar

*DustyBy ers

ElizabethWard

TundeBode Sentil T. Kathy

Freeze

Dav idDudley

JohnKnight

Ray mondBlackson

Robby VincillAdam Kuhn

Beth HartfordTransition Mgr.

Elithe Carnes, Karla McMaster, Matthew Solis, *Arun Tipingiri

Jan McAlpin

*John MorrisEngagement

Mgr.*Sunil K.

*Dav e Tipping *Sharon Howard *Mike Wilson*Ambrose W. *Tim Buzzelli *Chris Romac

*Sunil K. Tita

nC

onsu

lant

s

Mike LasaterProductionSy stems

TroyStaton

*MarkFowler

ScottCannon

RameshAyyagari

Integration Mgr.

*contractedpersonnel

Debbie TaitHeather Clay borneLaura DanielsDonna DerrickCTI Cost Acct.

Heather AdamsGinny RammMike McLeanGina Bolz

Joan deMarcusLisa HudsonKenda Ly nchSid BoothLy nn WallHeather AdamsSam Cole

Juel HensleyAlice JohnsonKent MannGary TerricianoGary FleenorHank Johnson

Ramesh Ay y agariDanny VesserKathy HelmboldtRichard CarlsonJonathan RaulstonEd GrahamJoey MooreDav id SmithJim O’HatnickHank JohnsonSid BoothMatthew Solis

Project Organization Structure

April 21, 2023

Phase 2 Key Process Improvements

• Automated the transfer of released items and bills of materials from the PDM system to ERP

• Automated material sourcing

• Improved material planning capabilities

• Intercompany requisition and supply processes

• Automation of expense report, time and labor and requisition processes

• Elimination of 28 Lotus Notes applications

• Use of workflow notifications, alerts and approvals

• Implementation of better controls

April 21, 2023

Vanilla vs. Customization Issues

• Project accounting used to collect product service costs and bill out-of-warranty and non-contract support labor, materials, etc. – substantial effort

• Basic changes to approval routings for iExpense and iProcurement to allow shared services to buy for other units

• Intercompany supply chain – could not accomplish the way we wanted to

April 21, 2023

Phase 2 Status

• In production Feb 2nd, 2004

• Over 500 classroom hours of user training completed

• Very few major issues encountered– Notifications of backordered spare parts orders– Startup of integration with the product data management

system– Document printing hiccups– E-mail approvals of iExpense, OTL and iProcurement didn’t

work at first – e-mail configuration issue

April 21, 2023

Technology Overview

• Sun hardware and O/S

• EMC storage area network

• 10/100 mbs ethernet network

• 99% Windows-based PCs for users

• Extensive wireless networking in place

• Oracle used in a multi-node environment

April 21, 2023

Testing Strategy

• CTI is an FDA governed company – testing is very formal– Unit –> System -> Business process– Business people owned testing– Tutor was used to define the procedures– Test scripts were developed from Tutor procedures– Business process testing was conducted in small teams with

cross-functional representation– Results were clearly documented and signoffs were

required– Documentation was reviewed for completeness– Management signoff was required before go-live

April 21, 2023

Communicating for Success

• Regular steering committee updates

• Daily “tidbits” to all employees via e-mail in the last three months

• Monthly employee newsletter stories throughout the project

• Live “Orientation to Oracle” sessions

April 21, 2023

Training Overview

• CTI team managers were responsible for planning training

• CTI and consultants were the instructors

• Most classes were hands on the software

• Three types of courses– Orientation

• General overview of Oracle and the project, processes, etc.

– Navigation• Basic “How to Navigate” class – required before taking other

classes

– Functional and Detailed• Detailed module and process training

April 21, 2023

Patch Management

• Process was clearly defined due to FDA requirements

• Requests and approval formalized

• Encountered problems with ability to patch an instance without impacting anyone else – created some delays

• Typical patch problems– Dependencies and pre-requisites– Need for one-off’s vs. family packs– Patches breaking something else

April 21, 2023

Summary

• Phase 1 went well– Tight scope– Resources were committed– No competition with other initiatives

• Phase 2 was much harder but successful so far!– Resources unavailable – caused delay– Competition from IPO, LEAN initiative, growth– Much more consensus building required– Larger scope – more learning – more innovation

• On to Phase 3!

April 21, 2023

“Life is full of obstacle illusions.”- Grant Frazier

April 21, 2023

c t i m o l e c u l a r i m a g i n g c o m p a s s i o n > t h a t i n s p i r e s a c t i o n i n n o v a t i o n > t h a t i m p r o v e s p a t i e n t c a r e t e c h n o l o g y > t h a t d e l i v e r s r e s u l t s c t i m o l e c u l a r i m a g i n g