CON9461: Improve Supply Chain Execution with Oracle Supply Chain and Order Management Analytics

1. CON9461: Improve Supply Chain Execution with Oracle Supply Chain and Order Management Analytics Ashwin Warrier Oracle BI Applications, Product Management • Donna EnrightBI Systems Manager, DJO Global, Inc.

2. 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.

3. Program Agenda • Oracle BI Applications Overview • Oracle Supply Chain and Order Management Analytics • DJO Global BI Applications Deployment • Q&A

4. Oracle Analytic Applications Product Family • Transactional BI • Single Source, single function • Part of the Cloud application • Real-time analysis • Configurable • Built on BI Foundation Suite • Available for Fusion Applications • Planned: Taleo, RightNow, Eloqua • BI Applications • Multi-source and cross-functional • Independent Deployment • Warehouse-based analysis • Configurable and customizable • Built on BI Foundation Suite • Available for on premise Oracle Apps • Planned: Connectors to Cloud Apps

5. Oracle BI Applications Product Family Rapid Performance Insight CRM ANALYTICS ERP ANALYTICS ORACLE BUSINESS INTELLIGENCE FOUNDATION AND OTHER OPERATIONAL AND ANALYTIC SOURCES SOURCE ADAPTERS:

6. Oracle BI Apps: Deeper than Dashboards 1. 2. Pre-Built Analytic Warehouse Certified Application Integration • Business Analytics Warehouse • Over 300 star schemas • Designed for analysis and reporting • Pre-mapped integration • Fusion, EBS, PSFT, SEBL , JDE, IBM • Role-based Security 3. 4. Best Practice Metrics Role-Based Dashboards • Over 10,000 metrics • Additional pre-defined calculations • Based on best practices • Over 500 Dashboards and Pages • Over 3,000 reports • Across Lines of Business

7. Total Economic Impact of Oracle BI Apps Based on Commissioned Study Conducted by Forrester Consulting Validated Benefits • Lower Procurement Spend - 5% lower procurement costs in Year 1 of the study and increased to 7% in Year 2. • Accounts Payable Savings - Savings of more than $1 million per year by the third year of the study • IT and business labor savings - Apps created efficiencies in both the IT and business sides of the organization. • Lower Inventory Working Capital – 15% reduction in inventory for the affected product categories • Increased gross sales and prices- 0.3% increase in average sales price and 0.4% lift in sales at affected parts of the organization 97%ROI with a 20 Months Payback Period* *Composite Organization Three-Year Risk-Adjusted ROI Source: The Total Economic Impact of Oracle BI Applications," commissioned study conducted by Forrester Consulting on behalf of Oracle, October 2012.

8. Summary of Release BI Applications 11.1.1.7.1 Price Analytics for EBS • Financials: Fixed Assets, Budgetary Analysis • HR: Time & Labor, Payroll Analysis • Projects: Resource Management, GL reconciliation • CRM: Service Contracts, Price Analytics for EBS • Procurement & Spend :Sourcing • Supply Chain: Costing, Inventory Aging & Cycle Counts Student Information Analytics New Applications & Adapters New Content Enhancements Oracle Data Integrator Oracle GoldenGate • GUI Based Configuration • Functional Setup Tool New TCO Tools New OBIEE 11.1.1.7 New Data Integration

9. Next Generation Data Integration BI Apps 11.1.1.7.1 with Oracle Data Integrator and Golden Gate Oracle Data Integrator provides • In-database E-LT Transformation vs. E-T-L • Best in class performance, scalability, availability • Lightweight deployment for lower TCO • Faster time-to-value through declarative design Oracle Golden Gate option for BI Apps • Reduce load on source system by streaming data continuously into persistent store in the DW • More reliable change data capture and delete support • Enables near real time DW refresh

10. Supply Chain and Order Management Analytics Overview

11. Companies Struggle to Improve Supply Chain and Order ManagementPerformance KEY CHALLENGES EXAMPLES Lack of visibility into order to cash process to help eliminate bottlenecks • Poor understanding of variances across the process • Little visibility into cycle times and process bottlenecks • Limited information on payments, outstanding balances, etc. • Poor visibility of products that often result in returns • Lack insight into reasons for order cancellations • Unable to identify reasons for customer returns No insight into revenue lost due to cancellations and returns • No knowledge of critical orders that are stuck • Poor visibility into customers with greatest overdue balance • No insight into fulfillment stage that is most troublesome Unable to identify top orders in backlog to improve revenue recognition • Need to deliver “perfect” orders while minimizing inventory • Inability to anticipate stock-out & excess inventory situations • Lack of visibility into enterprise-wide inventory status Lack of Inventory Visibility to Improve Return on Assets

12. Oracle Supply Chain & Order Management Analytics Complete Solution for Insight into the Order to Cash Process Order Management Foundation application module that provides insight into critical Order Management business processes and key information, including Orders, Invoices, G/L Revenue, sales effectiveness and customer scorecards Order Fulfillment Provides complete analysis of every step in the back-office sales processes from Order to Cash, enabling companies to respond more quickly to customer issues and resolve them before they become problems Inventory Incorporates analysis of the inventory held by an organization, bill of materials, inventory movements in, out and through production or storage location, and understand customer and supplier returns. Optimized inventory levels, maximize customer sales through product availability

13. Role-Based Best Practices Provide Relevant and Actionable Insight for Everyone

14. Oracle Supply Chain & Order Management Analytics Sample Metrics • Inventory • Inventory Turns • Overall Inventory Value • Overall In transit Value • Blocked Quantity • Available Consignment Quantity • Inventory Below Safety Stock • Actual Issue Quantity • Actual Receipt Quantity • Customer Returned Amount • Supplier Returned Amount • Extended Item Usage Quantity • BOM Quantity per Assembly • Order Fulfillment • Operational Backlog Amount • Financial Backlog Amount • Blocked Backlog Amount • Delinquent Backlog Amount • Unscheduled Backlog Amount • On Time Ship Quantity • On Time Ship Performance • Actual Shipped Quantity • Ship Late Quantity • Order to Ship Days Lag • Order to Invoice Days Lag • On time Pick Rate • Order Management • Ordered Amount • Qtr Ago Ordered Amount • Return Amount • Discount Amount • Cancelled Quantity • Average Order Size • Average # of products per order • Total AR Overdue Amount • Days Sales Outstanding • # of Active Customers • # of New Customers • # of Lost Customers Benefits • Accelerate the order to cash process through more effective order fulfillment • Identify product flaws to reduce returns and cancellations • Increase customer satisfaction through on-time delivery • Better manage sales cycle for faster revenue recognition • Spot troubled orders in backlog

15. Business Function:Order Fulfillment • Role: Fulfillment Manger • Objectives: • 1) Improve Service Levels • 2) Streamline fulfillment costs Decision Workflows – Supply Chain & Order Management Business Objectives / Issues Improve Service Levels Drill to Detail Is On Time Ship Performance above threshold? Which location has the highest Order fulfillment backlog? Gain Insights What is the inventory available to meet the fulfillment backlog at that location? What is the inventory for this Product at other locations? Evaluate the trade-off between On time shipments and increased Fulfillment cost Take Action

16. Order Fulfillment Sample Dashboard Summary level KPI’s Backlog and Shipping Performance Trend

17. Oracle BI Applications Current Releases and Roadmap • For Applications Unlimited customers • ETL with Informatica • New Manufacturing Analytics • New Enterprise Asset Management Analytics • New SLA support for EBS R12 (patch) • For SAP customers • ETL with ODI • Fin, Proc & Spend, Supply Chain Analytics • For Application Unlimited customers • ETL with ODI • New Student Information Analytics • New Golden Gate option • New content in all major products • Fusion & AU: release alignment • ODI and Informatica : release alignment • New content: Talent Management, PLM Analytics integration, EAM enhancements, Student Analytics enhancements, EVM • New adapters: Procurement & Spend Analytics for JDE, Manufacturing Analytics for JDE, Supply Chain & Order Management Analytics for PeopleSoft • New cloud adapters: Adapters to Fusion CRM, HCM & ERP Cloud Services, Taleo adapter • Cost of Ownership Improvements: Data Lineage, ETL Validation, platform support • Endeca Extensions • BI Applications as Oracle Cloud Service • New content/modules: Continue to fill key content gaps based on customer demand • New cloud adapters: RightNow adapter, Eloqua adapter • Unstructured/big data analytic applications e.g. Customer 360 • Continue user experience redesign by leveraging BI Foundation Suite platform developments incl Mobile App Designer • Additional cost of ownership improvements What’s Next 0-12 month planning cycle Future DirectionsPost 12 month planning cycle BI Apps 7.9.6.4January 2013 BI Apps 7.9.7.2 September 2012 BI Apps 11.1.1.7.1 May 2013

18. Oracle Cloud to BI Applications Connector Overview OBIEE • Replicates hosted data from cloud environment to on-premise • Operates identically to all other data sources (via OBIA SDS) • Loads data into OBIA SDS tables to support standard OBIA ETL processing into OBIA Data Warehouse • Planned availability • Fusion Sales, HCM, ERP • RightNow & Taleo • Eloqua OBIA DW ODI FusionSDS EBS Fusion JDE PSFT Customer On-Premise Environment Oracle Cloud

19. Analytic Apps Evolution – Scope Expansion SCM domain as example Customer Sentiment (unstructured analysis of customer product returns, product reviews, complaints etc) • Endeca Extensions • Why are sales order returns high for certain customers and geography? Predictive Metrics (smarter KPIs) • Advanced Analytics Extensions • What is the likelihood of supply disruption from a certain supplier base and what will be the total supply chain impact? Future SC&OM Analytics (historical analysis on structured metrics) SC&OM Analytics (historical analysis on structured metrics) Today OTBI (real-time operational analysis & reporting) OTBI (real-time operational analysis & reporting)

20. Donna EnrightBI Systems ManagerDJO Global, Inc. Supply Chain and Order Mgt Analytics September 2013

21. Company History • DonJoy Founded in 1978 • 1987 purchased by Smith & Nephew • 1999 DonJoy Management team leveraged a buy out and became DJ Orthopedics. • 2001 company went public • 2002 – 2006 Introduction of new innovative products and acquisitions • 2007 acquired by Blackstone Group

22. Company Overview • Headquartered near San Diego, CA • Approximately 5,300 Employees in 27 countries • Leading orthopedic company with unique strategy focusing on injury prevention, conservative treatment and rehabilitation • Innovator with robust pipeline of products and solutions that are more cost effective and less invasive than most surgical or pharmaceutical alternatives • Solutions that keep people active – “Motion is Medicine”

23. Product Brand Offering • B & S with a combination of soft good and Rigid bracing • Electrotherapy • Bone Growth Stimulation • Surgical Implants • Diabetic Footwear • Pain Management • Vascular • Hot & Cold Therapy • www.djoglobal.com

24. Project Timeline

25. Order Management & Supply Chain • Out of box delivers the most content • Order-to-Cash cycle • Customer order status • Fulfillment, Backlog • Customer satisfaction • Territory Sales Performance • Would be First to support eBusiness Suite upgrades

26. Benefits to BI Analytics • Prebuilt mappings using industry best practices • 100+ predefined metrics and reports • Rapid deployment with a lower risk and cost of ownership • Validation tool for an ERP implementation • I will show you a few reports pertaining to a small subset of DJO data that demonstrate some of the benefits

27. SCOM Subject Areas Available Custom Fact

28. Order Fill Rate Report

29. Customer Performance • Is a select group of customers buying trend consistent? • Are we satisfying our customers?

30. Customer shipments

31. Time Comparison

32. Territory Performance

33. Sales Territory Scorecard

34. Custom Enhancements

35. Things to Consider • Enhancements are inevitable • Performance tuning required • Applying DB Hints • Indexing • Additional aggregate table • Partitioning of fact table • 10g Memory Limitations • 11g Large Temp space usage • Last minute Patches to apply

36. BI Apps Upgrade to 7.9.6.X Changes • Dimension W_ORG_D was replaced with W_CUSTOMER_ACCOUNT_D (customer accounts) and W_PARTY_D (customer) • Date/Time Dimension the tables and Column names changed. (%_MCAL_% replaced with %_ENT_%) and also has multiple calendar (%_ENT_%) support in 7.9.6 onwards • Source built in the ETL for defining time dimension no longer supported our 4,4,5 calendar. We turned to used EBS as source but it was missing the week level in the Hierarchy. We manually added week in the nightly update. • We had to make some adjustments on date formats to fix issues on pre-existing reports.

37. Lessons Learned • Challenges implementing BI App simultaneously with EBS • How much User Developer access do you want to give? • Removes BI team from much of the report development. Allows them to focus on other things • Fills up your catalog with a lot of unnecessary unused and duplicate reports. • Costly queries impacting performance due to un-skilled report developers • Suggest assigning a couple of key persons from each department to represents that departments reporting needs. • Training • Hands-on versus WebEx • I am a true advocate of ensuring hands on training to avoid repeated training to same persons • But if you are a global organization such as ours this can be costly • History Sales conversion • Required several full loads. • Additional Licensing costs on Upgrades • Be sure to review with your sales rep before finalizing your budget costs

38. BI Architecture • Obiee Version 11.1.1.6.7 • BI Analytics 7.9.6.3 • Supply Chain Order Management • Supplier Performance, Procurement & Spend • Informatica 9.0.1 • Noetix 3.4 • Environments Include • Production • UAT • Support • DEV • Hardware is hosted with Data Intensity

39. Project Staffing • Contracted with KPI Partners • Team • BI Architect / Project Manager • EBS/BI analyst • ETL Developer • OBIEE Developer • Additional ETL and OBIEE developers • DJO Team leads

40. BI Roadmap for DJO Global • Providing access to our external Sales reps • Approximately 300 plus more users • Oracle Essbase & Oracle OLAP • Mobile App • Spatial maps • Take advantage of other Subject areas we have not made use of yet

41. Questions Donna.enright@djoglobal.com

42. Who is KPI Partners? The most experienced Oracle BI & EPM Implementation Partner Winner of 2012 and 2013 Specialized BI Partner of the Year. Winner of 2013 Best Higher Ed BI Implementation Winner of 2011 Oracle Titan Award for Oracle BI Applications - $14m ROI ! Onsite, offshore and blended on-site/off-shore delivery model Exalytics and Endeca Expertise Oracle BI Apps Quick Start Packages Training through KPI University Many KPI consultants part of Siebel/Oracle BI Engineering team. www.kpipartners.com Quick Look: Financial Analytics Best Practices

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44. The preceding 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.