Value Chain Planning Overview and Directions & Sony CEA Customer Story

2. Value Chain Planning Overview and Directions &Sony CEA Customer Story Roger Goossens- Vice President Value Chain Planning Development Sony Computer Entertainment America: Robert Wood Jr, Director S&OP Americas SreeVaidyanathan, Director Business Applications

3. Safe Harbor 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, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4. Introduction to Value Chain Planning • Key topics important to our customers • Why speed matters – In-Memory Applications • Recent updates and upcoming releases • Sony Computer Entertainment America story Topics

5. Introducing Value Chain Planning

6. Value Chains fluctuate more than ever before Cannot be handled with outdated disconnected systems Faster product cycles Fewer people Outsourcing Value chains have expanded globally Lead Times Global Competition Increased risk Reduced inventory CHANGE Less capacity Demand Volatility Instantly Connected Less IT spending Increased demand and supply variability, and dependency on contract manufacturers More choices Instantly Connected Increased risk Reduced inventory Less capacity Increased Innovation Faster product cycles

7. Oracle Value Chain Planning enables implementation of new strategies to address the new business challenges CHALLENGES STRATEGIES • Demand volatility and uncertainty as a result of fluctuating economic conditions and segmentation • Lack of responsiveness to sudden supply chain problems • Increasing supply chain complexity and risk • Lack of business insight and need for continuous improvement • Global coverage requiring short plan run times • Sense demand more quickly and shape for revenue growth • Improve agility and quickly respond to events • Incorporate risk and postponement strategies in the Sales and Operations Planning process • Continuously monitor value chain performance • Deploy engineered solutions

8. Known benefits, but many hurdles to implement • Common problems • No formal S&OP process • No ability to capture the reality of the supply chain • No ability to quickly simulate and compare • No ability to solve for multi-echelon • No ability to expose metrics to other decision makers • No ability to enforce planning decisions top down • Unreliable input resulting in poor plan quality • Unable to capture variability and design for agility

9. Oracle Value Chain Planning Solution Customers Retail Stores COLLABORATION SERVICES Suppliers Distribution Centers Contract Manufacturers Carriers Demand Sensing Value Chain Networks • Common foundation • Single source of truth • Centralized services • Start anywhere, redo nothing Planners Analysts INTEGRATION SERVICES Planning Data Management Scenario Planning & Analytics Engineered Systems & Solutions Planning and Optimization Asset Intensive and Parts Planning Strategic Planning and Postponement Hyperion Legacy Systems Supply and Distribution Planning Siebel Demand and Trade Management Sales and Operations Planning E-Business Suite PeopleSoft JD Edwards

10. Value Chain Planning – Modular, Integrated Focus on your most important problem first Network Design Start anywhere Event Driven Simulation Risk Management Production Scheduling Inventory Postponement Supply Planning Collaborative Planning In-Memory Consumption Driven Planning In-Memory Performance Driven Planning Sales and Operations Planning VMI Demand Management Global Order Promising Distribution Planning Trade Management Service Parts Planning Planning Analytics Demand Signal Management User Roles Workflow • Common foundation • Single source of truth • Centralized services • Start anywhere, redo nothing Oracle Database Web Services Collections Menus WLS Security

11. Value Chain Planning – Broad Partnerships Engagements at various levels with many consulting partners • BPS Services, examples: • Inspirage, Avata, EnrichIT, CROC, Bristlecone, TEKSystems • Co-Development • Fusion – Infosys, Inspirage and ASM • Demand Signal Management – TEKSystems • In-house beta testing • User groups (OAUG, Quest – Demantra and VCP SIGs) • Openworld event sponsorship – Trinamix and Avata

12. Key topics, important for our customers

13. Our customers focus on key planning problems Focus on your most important problem first Customers Retail Stores COLLABORATION SERVICES Suppliers Distribution Centers Contract Manufacturers Carriers Demand Sensing Value Chain Networks • Demand sensing and consensus • Plan for profit and execute to plan • S&OP and Integrated Business Planning • Supply chain agility • Event driven simulation • Predictive trade planning and optimization • Collaboration with trading partners • Service and maintenance planning • Planning performance analysis • Key topics and processes Planners Analysts INTEGRATION SERVICES Planning Data Management Scenario Planning & Analytics Engineered Systems & Solutions Planning and Optimization Asset Intensive and Parts Planning Strategic Planning and Postponement Hyperion Legacy Systems Supply and Distribution Planning Siebel Demand and Trade Management Sales and Operations Planning E-Business Suite PeopleSoft JD Edwards

14. Crawl, walk run Focus on your most important problem first Predictive Trade Planning Product Life Cycle Management Demand Signal Management Collaboration with trading partners Demand sensing and consensus Plan for profit and execute to plan Best In Class Typical approach Start Measure Evolve S&OP Planning Performance Analysis Integrated Business Planning Integrated Service Supply Chain Design for Agility Event driven simulation In-Memory engineered solutions

15. Start– Improve your forecast to plan process Remove Excel as the main decision making tool “We are experiencing significant swings in demand, complicating our planning and visibility across the value chain” Improve demand sensing and consensus • Integrated key data sources • Collect the right level of detail • Model unique data relationships (causals) • Everyone talks the same number Improve plan profitability and execution • Reduce planning cycle time by running fewer plans • Make better decisions faster by modeling constraints • Promise more accurately and manage allocations • Resolve production bottlenecks • Reduce managed inventory cost through automation • Reduce decision making latency

16. Measure – Understand where to improve Establish a continuous S&OP process “We constantly struggle with multiple disparate, departmental data sources and a lack of a holistic monitoring process and insight” S&OP • Operate a complete S&OP process • Interactively engage management • Collaborate securely on all required information • Evaluate alternative business scenarios • Drive decisions into planning execution Plan Performance Analysis – 360 degree view • Compare different planning scenarios • Provide insight to key decision makers on plan metrics and trends • Perform closed loop analysis and automate the process • Start quickly with prebuilt content and integration • Planners and other decisions makers share the same information • Scenario planning and analysis

17. Sales and Operations Planning Analysis Executive review Demand review Supply review Finance review Financial Review

18. Evolve – Expand to other key processes Improve demand signals, ROI on promotions, new product introductions, collaboration “We think we loose money on our promotions and have no good idea where to stock new products when we launched them” Predictive Trade Planning • Understand the true impact of promotion and marketing instruments • Simulate volume and profitability, understand impact of varying sales tactics • Implement feasible and profitable sales and marketing strategies Demand signal management • Analyze shopper behavior through daily store-level sell through • Improve promotion spend compliance • Address stocking problems New product introductions • Evaluate cannibalization of existing products on revenue and inventory • Determine optimal timing of product launches and align them to financial goals • Determine what price breaks and promotions to leverage for sell-off / ramp-up • Tie it back to the S&OP process

19. Become best in class SC agility, integrated business planning, service & asset planning, promotion optimization “We are always very slow to react to change, instead of being able to anticipate and respond quickly.” Design supply chains for agility • Decide on the right product mix and how to segment the value chain • Decide on your sourcing and inventory strategy • Simulate planned and unplanned events to mitigate supply chain risk • Quickly simulate short term fluctuations and events Integrated business planning • Connect finance and operations • Evaluate the operations impact of financial decisions and vice versa Integrated service and asset planning • Plan your assets, spare parts and maintenance schedules • Combine procurement for the forward and service supply chains Promotion optimization • Generate optimized promotions plans driven by goals, constraints, rules • Analyze budget allocations and exceptions • Holistic solution for all processes

20. Planner Workbench – Rapid Simulation Supply chain bill and material plan Mass edit and simulate in minutes Exceptions and related orders Performance and material plan

21. Planner Workbench – Make key decisions Cost and profit driven decisions Clear to build analysis Late demand root-cause analysis Demand pull-in and upside view

22. Why speed matters – In-Memory Applications

23. Business pressure – Reduce planning cycle time • Business does not want to compromise on the complexity of the model and constraints in the plan, and needs more timely information to make better decisions • With systems being deployed at global scale, there are no open windows for down-time during plan runs • Constant change drives planners to pose more frequent what-if scenarios instead of executing to a static plan • Business growth leads to increase planning scope and horizon as the business wants longer term visibility for a larger value chain • It is a hard problem to solve for IT “We need to run the plans in less time while continuing to grow and be more responsive in our business”

24. Why speed matters !Become more responsive – Change the business Americas plan • Fit plans within the window that you need to run them while increasing data loads • Move from daily or weekly planning cycles to intra-day planning • Increase your planning horizon (more buckets for supply planning, forecasting; more granular) • Increase your planning scope (more supply chain nodes, consolidate plans) • Collect the actual state from ERP more often • Planners can spend more time analyzing versus waiting for plans to complete - Responsiveness • Reduce planning cycle time value t scope value Wait less, analyze more

25. How to solve the problem ?Different approaches yield different results Less IT staff Infiniband More data Global Database 12c Fail safe • Upgrade to newer releases – Faster plan runs • Fast intra-day simulation on a sub set of the constraints – Leverage Oracle Rapid Planning • Reduction of plan scope, or segmentation of plans and data – Advanced Supply Chain Planning hub and spoke, multi-instance planning, Demantra subset forecasting • Faster processing of the existing plans with the ability to scale out in size and number of users – In-memory products, faster hardware • Any combination of the above • Different approaches possible SPEED More users PCIe Exabus Growth Smart Flash More processing Less IT spending More buckets Exadata Exalogic Supercluster

26. Value Chain Planning In-Memory ProductsExtreme performance. Fastest deployment. Lowest cost. Oracle VCP In-Memory Applications Hardware and Software engineered to work together Database VM Server Solaris 11 Linux ZFS Oracle Engineered Systems Real Application Clusters Hybrid Columnar Compression Oracle In-Memory Software

27. Oracle Engineered Systems BenefitsPre-built. Pre-tuned. Pre-tested. Exadata Database Machine Exalogic Elastic Cloud • Deploying EBS and VCP on the same faster hardware yields 40-50% improvements in Collections time • Copy production instance to test instance to test scale-out of data volumes for future growth of the supply chain • Enable more users to access the system simultaneously and leverage increased memory to run more simulations, for example in Rapid Planning • Spread the forecast run over more processor cores to complete it much faster • Reduce down time for planners as processes complete much faster – Faster time-to-analysis • Faster, more efficient systems Infiniband VCP Server EBS Server Plan runs, Analytics Concurrent Manager Database VM Server Solaris 11 Linux ZFS Hybrid Columnar Compression Real Application Clusters Oracle In-Memory Software

28. Going beyond – In-Memory Value Chain Planning applications are engineered to take better advantage of the In-Memory Software running on Oracle Engineered Systems, translating in significant benefits for the business and the end-users

29. Value Chain Planning In-Memory ApplicationsDesigned, tested, and pre-configured for Oracle Engineered Systems VCP 12.1.3.9 Demantra 7.3.1.5 In-Memory Performance Driven Planning In-Memory Consumption Driven Planning • Business is changing • Shrinking planning cycles • Expanding supply chains • More simulations and analytics (archiving) • Data growth is exploding • Global operations • Longer plan horizons • More frequent changes • High volume data sets require improved data visualization for faster analysis of problems • Key drivers Advanced Planning Command Center* Service Parts Planning Demand Management* Global Order Promising Rapid Planning Trade Management Sales and Operations Planning Inventory Optimization Advanced Supply Chain Planning

30. In-Memory Consumption Driven Planning Released with Demantra 7.3.1.5 – Special session on Wednesday SOLUTION • Utilize high-volume POS consumption data to compute sell-in forecast and create global demand plan as well as a single-echelon daily store replenishment plan – Leverage the power of Exadata and Exalogic for scalability • Improvements for high volume scale-out of the existing Demantra forecasting and trade planning processes BUSINESS VALUE • Drive down inventory costs, improve forecast accuracy and responsiveness to consumer demand, and improve order fill rates • Reduce forecasting and trade optimization cycle time while increasing scope • Summary

31. In-Memory Performance Driven Planning Released with VCP 12.1.3.9 – Special session on Wednesday SOLUTION • Dramatically accelerate collection of data, sharply reduce plan run time, and improve time-to-analysis of plan metrics • Improve end user interaction speed with large data sets • Leverage advanced graphical visualization to improve analysis of large data sets • Extend to near real-time analysis and comparison of plan scenarios using enhanced Advanced Planning Command Center BUSINESS VALUE • Run plans faster for improved responsiveness • Improve financial and operational performance, customer service level, and inventory turns through closed loop, near real-time, forward-looking insight • Summary

32. Groundbreaking performance improvements, not possible with conventional hardware How Value Chain Planning leverages Oracle Engineered Systems Forecast Node Forecast Node Supply Plan Node Supply Plan Node Models Models Models Models Up to 3x faster Collections Up to 5x faster plan run times Up to 10x faster UI & Analytics VCP ERP Output Stream Output Stream Output Stream Output Stream Input Stream Input Stream Input Stream Input Stream Collect Snapshot, Flush, Save Archive Analyze Exalogic Exadata Improve data movement between ERP and Planning Server Improve data movement between Db and in-memory Planning Engines; scale via clustering Improve archive process and UI interaction with [large] worksheets

33. VCP In-Memory Applications - BenchmarkEnables improved decision making – Customer sample data set IMPDP IMCDP • IMCDP – End to end forecasting cycle: from 819 to 71 minutes • IMPDP – End to end planning cycle (excluding APCC archive): from 166 to 51 minutes (data I/O from 96 to 10) • Snapshot phase from 90 mins to 7 mins • Flush to db from 6 mins to 3 mins • Plan calculation from 70 to 41 mins • IMPDP APCC archive: from 200 to 63 minutes • Dramatic reduction in cycle time REDUCED PLANNING END TO END CYCLE REDUCED FORECAST END TO END CYCLE 3-4x Faster 11x Faster Runtime (minutes) Runtime (minutes) 819 166 51 71 8 Hardware: Exadata X3-2 ½ rack; Exalogic ¼ rack, OS: OEL6

34. Recent updates & Upcoming releases

35. Recent Updates and Future Plans 12.1.3.7 and Demantra 7.3.1.3 VCP 12.2.3.1 12.1.3.9 and Demantra 7.3.1.5 • Asset intensive planning GA • Rapid Planning enhancements • Inventory Optimization enhs. • JDE E1 9.1 integration • ADF UI in Advanced Supply Chain Planning • … and more • In-Memory CDP new product • In-Memory PDP new product • Inventory Optimization enhs. • Rapid Planning enhancements • ASCP shelf life enhancements • Mobile improvements for iOS • Dem 64-bit forecasting engine • In-Memory applications R2 • .. In-Memory DB option • .. Visualization enhancements • Front port of 12.1.3.9 • Front port of Dem 7.3.1.5 • Technology upgrades • PTP enhancements • Upcoming • tech stack • certifications • Safari 7 • iOS 7 • OBIEE 11.1.1.7 • DB 12c • Java 7 Available Available 2014 2012 2013 Available Available • ASCP enhancements • .. Process MFG recipe validity • .. Order queries & Excel outp. • IO enhancements • .. Warehouse capacity • .. Cycle stock in safety stock • Demantra improved UI • Support aggregate WOs CMRO • … and more • Rapid Planning enhancements • Demantra BAL upgrade utility • Demantra multi-languages in 1 • Dem DM – APCC integration • Demantra improved Excel int • ASCP DRP plans to APCC • S&OP cost simulation enhs • Technology upgrades • … and more • Customer enhancements • UI enhancements • In-Memory applications R3 • Process Mfg enhancements • Demantra DM enhancements • Demantra PTP enhancements • PS synchronous make-pack • … and more 12.1.3.8 and Demantra 7.3.1.4 VCP 12.2.2 (General Available) VCP 12.2.4

36. Improved Demantra User Interfaceplus embed Demantra Anywhere Worksheets in APCC

37. Improved ASCP User Interface – Embed into APCC Mass edit item attributes for simulation Analyze resource requirements Analyze material requirements View and release orders

38. Improved IO User Interface – Embed into APCC Postponement analysis Profitability analysis Budget analysis Safety stock level analysis

39. Evolve – Involve other key decision makers Review revenue impact of unplanned disruptions Review costs of mitigation strategies INVENTORY POSTPONEMENT RISK MANAGEMENT Evaluate time to recover Identify affected customers and products

40. VCP 12.2 deployment options against ERPNot supported: EBS 11i10, EBS 12.0, JDE E1 9.0 PIP Flat files Legacy system AIA 11.4 E1 9.1 VCP 12.2 DISTRIBUTED INSTANCES 12.2 tech stack EBS 12.2 12.2 tech stack EBS 12.1 12.1 tech stack VCP + EBS 12.2 instance SINGLE INSTANCE 12.2 tech stack

41. VCP integration to JD Edwards EnterpriseOne 9Integration specific enhancements (on top of VCP enhs.) AIA 11.4 AIA 1.0 AIA 2.5 AIA 3.1 Integration Releases 2009 2010 2011 2013 Future • R1 - Released • PIP based integration • Key products integrated • No support for CTO and select constraints • No support for GOP and SPP • Standalone VMI support • Separate installer from AIA • Oracle Data Integrator 10g • R2 - Released • Rapid Planning integration • Leverage AIA installer • R3 - Released • Oracle Data Integrator 11g • Shelf life support • Requires: • VCP 12.1.3.3 • Demantra 7.3.1 | 7.3.02* • E1 9.0 • AIA 3.1 • Tech stack upgrade ODI • R4 - Released • Configure-To-Order support • GOP integration • Requires: • VCP 12.2 (incl. Demantra) • E1 9.1 • AIA 11.4 • Tech stack upgrades • To be planned • Support add’l planning constraints • Integration to Fusion Planning • Customer driven ERs • Removal of setup mapping xls (move into UI)

42. Mobile – Enable the disconnected worker • Recent updates • iPad support for Advanced Planning Command Center (12.1.3.8) • Demantra Anywhere support for iPad (7.3.1.4) • Support ADF based screens (12.1.3.9) • Continued strategy to develop mobile process support

43. How to upgrade ? Make the upgrade decision based on what is key to the business • Go to 12.1.3.9 and Demantra 7.3.1.5 if … • You need the latest capabilities that have not yet been released in 12.2 • You have an immediate need for the VCP in-memory applications • If you cannot yet move off JDE E1 9.0, EBS 11i.10 or EBS 12.06 • Go to 12.2.2 GA if … • You are a JDE E1 customer and want to deploy CTO and Order Promising • You are a VCP or Demantra customer that needs key features in 12.2 • You are an EBS customer and are upgrading to EBS 12.2 (and are currently on 11i.10 or 12.0)

44. Key Takeaways • Complete – Best in class solution • Modular – Evolve at your own pace • Integrated – Designed to work together • Open – Designed to work with other systems • Proven solution with many successful customers • High degree of investment and innovation

45. Sony CEA’s story Greatness Awaits Launch Sony ppt

46. After the bell … recommended for VCP • VCP Demo pods – Moscone West 081, 083, 084 • VCP Customer sessions • Panel VCP in Consumer Goods: Monday 12:15am (Intercontinental Ballroom B) – Chicken of the Sea, PepsiCo, Massimo Zanetti Beverage • Panel Supply Chain Planning: Tuesday 10:30am (MW 2011) – Helen of Troy, Deckers Outdoor Corp, M-ISWACO, Red Dot Corp • Panel Demand Management: Tuesday 12pm (MW 2011) – Tektronix, SkullCandy, San Miguel Foods, Cabot Microelectronics • Panel Integrated Business Planning: Wednesday 10:15am (MW 2011) – Andrew Peller, HNI Corp, PL Developments • Panel VCP in Life Sciences: Wednesday 11:45am (St Francis Drake- Yorkshire) – Natus Medical, Pharmavite, ICU Medical, Biogen • Panel New options in Value Chain Planning: Wednesday 3:30pm (MW 2011) • Motorola Solutions: Thursday 11:15am (MW 2006 - 2008) • VCP Product specialty sessions • In-Memory Consumption Driven Planning: Wednesday 1:15pm (MW 2011) – Electronic Arts • In-Memory Performance Driven Planning: Wednesday 11:45am (MW 2011) – Oracle-SUN • Rapid Planning – Wednesday 5pm (MW 2011) – Sanmina SCI • Trade Promotion Management – Tuesday 5:15pm (MW 2011) – Chicken of the Sea • Service Parts Management – Thursday 12:30pm (MW 2011) – Oracle-SUN • Fusion Supply Chain Management Roadmap – Monday 16:45pm (MW 2003)

47. Value Chain Planning Reception Meet Value Chain Planning Customer Executives, Industry Analysts & Experts from Product Strategy, Development & Solutions in an Informative & Informal Environment • When: Monday, Sept. 23, 2013 • Time: 6pm – 9pm • Where: Bluestem Brasserie - 1 Yerba Buena Lane (one block from Moscone – across Mission St.) • RSVP: http://www.oraclepartnerevent.com/2013/oow-vcp-reception/email.html

48. Oracle Value Chain Summit Empowering the Modern Value Chain Explore How New Solutions Within Social, Mobile, Analytics & the Cloud are Helping Companies Transform Supply Chains into Modern Value Chains • February 3-5, 2014 – San JoseMcEneryConvention Center • Hands-on workshops, solutions demonstrations & more than 200 sessions on topics in 6 complementary solution areas: Product Value Chain, Manufacturing, Enterprise Asset Management, Logistics, Planning, and Procurement • Early bird registration opens soon – www.oracle.com/goto/VCS14