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Agile Product Lifecycle Management (PLM) OverviewFebruary 22, 2008
Sarvesh Jagannivas – VP, PLM Marketing
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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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
3
15 14.5 15.1 15.5 15.9 16.9
11 11.4 12.2 13.2 14.415.7
4 4.24.9
5.76.4
7.3
5 5.25.7
6.2
6.7
7.2
6 5.5
5.8
6.1
6.4
6.8
2 2.1
2.3
2.6
2.8
3.0
0
10
20
30
40
50
60
2004 2005 2006 2007 2008 2009
$B
Source: AMR Research, 2005;
CAGR (2004-2009)
%
Total 4.7
SRM 9.0
SCM 5.0
HCM 7.0
PLM 13.3
CRM 6.0
Core ERP 3.0
Total Enterprise applications forecast(in order of size by 2009) • PLM is 3rd largest segment
in enterprise applications by 2009 with double digit growth (13%)
• PLM is the key enabler for product innovation, at the heart of growth strategies for product-centric companies
• PLM is influencing enterprise application suite deals
PLM = Enterprise Software Imperative
4
PLM = Innovation
“You can only win the ‘war’ with ideas, not with spending cuts.” -- Klaus Kleinfeld, President & CEO, Siemens AG
“To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it
requires a lot of disciplines.” -- Steve Jobs, CEO of Apple Computer, Inc.
“The world is changing very fast. Big will not beat small anymore.It will be the fast beating the slow.”
-- Rupert Murdoch, Chairman& CEO, News Corporation
“Innovate forever, in other words, is neither a slogan nor an aspiration; it is a requirement.”
-- Geoffrey Moore, Author; Managing Director, TCG Advisors; Venture Partner, MDV
6
Why PLM?PLM Mission is to Maximize Profitability at each Lifecycle Phase
7
ChallengeChallenge PLM Impact PLM Impact DriversDrivers
Reduce costs and increase Reduce costs and increase efficiencies thru global efficiencies thru global engineering and outsourced engineering and outsourced design & mfging collaborationdesign & mfging collaboration
Enable Globalization & Outsourcing
Low Cost Design Centers, Low Cost Design Centers, Outsourced Design & Mfg, Outsourced Design & Mfg, AcquisitionsAcquisitions
Reduce cycle time -- 10-20%Reduce cycle time -- 10-20%Improve productivity -- 20-40%Improve productivity -- 20-40%
Accelerating Time To Market
Faster innovation Faster innovation cycles, NPI explosioncycles, NPI explosion
Reducing Costs & Increasing
Profits
Intense pressure to reduce Intense pressure to reduce costs and supply risk, costs and supply risk, improve profit marginsimprove profit margins
Reduce material costs -- 2-5%Reduce material costs -- 2-5%Reduce new part adds -- 10-30%Reduce new part adds -- 10-30%Reduce Waste / Rework by 30-40%Reduce Waste / Rework by 30-40%
Managing Risk& Ensuring Compliance
Increased Quality Increased Quality and Regulationsand Regulations
Managing risk across Managing risk across financial, regulatory and financial, regulatory and international complexityinternational complexity
Why PLM?The PLM Value Proposition – Quantifiable ROI
8
What is PLM?
PLM enables companies to accelerate product innovation and maximize product
profitability…
…through the management of the information, processes and decisions
about their products…
…throughout the product lifecycle and across the global product network
9
What is PLM?Product Information is Fragmented, in Disparate Global Systems
MARKETING
Enterprise
Value Chain
Enterprise
Value Chain
ProjectProject
PRODUCTION
MESMESERPERP SCMSCM
PROCUREMENT
ERPERP
ExcelExcel
LEGAL & CA
AccessAccessEDMSEDMSNotesNotes
R&D (EUROPE)
R&D (ASIA) R&D
(US)
SUPPLIERS
REGULATORY BODIES
OUTSOURCED PARTNERS
ARTWORK DESIGN
CUSTOMERS
ExcelExcel
MCADMCAD
Recipe Mgmt
Recipe Mgmt CADCAD
Spec DB
Spec DB
QuarkQuark AdobeAdobeCADCADERPERP SCMSCM
Formulas
Design Briefs
Audits
Artwork Files
Specifications
Package Designs
Ideas
Submission
Files
CADModels
Samples
Formulas
Design Briefs
Audits
Artwork Files
Specifications
Package Designs
Ideas
Submission
Files
CADModels
Samples
Formulas
Design Briefs
Audits
Artwork Files
Specifications
Package Designs
Ideas
Submission
Files
CADModels
Samples
10
Manufacturing Information- Bills of Materials- Mfg. Instructions- Revisions
Service Information-- Corrective ActionsCorrective Actions-- Field instructionsField instructions-- Service Service BOMsBOMs
Purchasing Information- Pricing- Part/ BOM Costs- Price History
Compliance Information- Regulatory- Standards- Audits
Design Information-- Schematics & DrawingsSchematics & Drawings-- CAD ModelsCAD Models-- Software/ FirmwareSoftware/ Firmware-- Design ReviewsDesign Reviews
Portfolio Information- Programs - Schedules- Resources- Deliverables
Supplier Information- Approved Vendors- Preference/ Status- Availability
Customer Information-- RequirementsRequirements-- ConfigurationsConfigurations-- Quality IssuesQuality Issues
What is PLM?PLM enables the Enterprise Product Record
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What is PLM?PLM enables Streamlined Processes, Better Product Decisions
Operational/SC Data
Program Data
Design/Engineering Data
Part Data
Quality DataProductRecord Data
Environmental Compliance Data
ConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecutionConceptConcept Plan DevelopDevelop ValidateValidate LaunchLaunch SustainSustain EOLEOLProgramExecution
PRODUCT
LIFECYCLE
MANAGEMENT
Failure Analysis & Corrective Actions
Eng & MfgProduct Operations BusinessProcesses
Cost Management
Engineering Collaboration
Engineering Change Processes
Environmental ComplianceEnvironmental Compliance
Ch
a n g e
Col l aboration
Failure Analysis & Corrective Actions
Eng & MfgProduct Operations BusinessProcesses
Cost Management
Engineering Collaboration
Engineering Change Processes
Environmental ComplianceEnvironmental Compliance
Ch
a n g e
Col l aboration
Ch
a n g e
Col l aboration
Ch
a n g e
Col l aboration
Decision SupportDecision SupportDecision Support
15
Agile PLM Industry Leadership & Focus
• PLM leadership in key strategic, growth markets• High Tech
• Dominant market leader
• Life Sciences• Market share leader
• Consumer Packaged Goods • Early PLM leader
• Industrial, Automotive, Aerospace
• Strong & loyal customer base
• Emerging leader in electronics segments
16
1,300+ Enterprise PLM Customers
Cisco Apple
GSK
PhilipMorris
International
TysonFoods
Coca Cola
17
Open Enterprise PLM Leader
Sample Agile/Oracle Apps Customers
Sample Agile/SAP Apps Customers
Cisco Apple
Philip MorrisInternational
TysonFoods
Coca Cola
18
Example Customer PLM Imperatives
• Corporate foundation for engineering & supply chain
• Secure IP management & product portfolio management
• Comprehensive compliant dataset for regulated products
• Global product quality and compliance
• Global PLM standard to streamline worldwide operations
• Collaboration & visibility across global product network
• Nutritional content from recipe to label and NPDI
• PLM standard, recent quality add-on
• Wire line infrastructure enablement to leading customers
• Global pack management
19
Value Proposition for Key Stakeholders
• VP Operations/COO – Better manage product launch and the complex global supply chain
• VP R&D/Engineering – Better manage the global design chain and improve DFX
• VP Quality/Compliance – Better manage quality incidents and complex global regulatory issues in EHT (RoHS) and Life Sciences (FDA)
• CIO – Reduce the number of disparate, non-integrated solutions managing product data
20
Agile @ Harris
RFCD (PDM)RFCD (PDM) MCD (PDM)MCD (PDM) BCD (PDM)BCD (PDM) GCSD (PDM)GCSD (PDM)RFCD (PDM)RFCD (PDM) MCD (PDM)MCD (PDM) BCD (PDM)BCD (PDM) GCSD (PDM)GCSD (PDM)
Define Common Data & ProcessesDefine Common Data & ProcessesDefine Common Data & ProcessesDefine Common Data & Processes
Agile Product Lifecycle Management (PLM)Agile Product Lifecycle Management (PLM)
Product Interchange
AnalyticsProduct Portfolio
Management
Product Cost Management
Product Collaboration
Product Service &
Improvement
Product Governance &
Compliance
Engineering Collaboration
Agile Product Lifecycle Management (PLM)Agile Product Lifecycle Management (PLM)
Product Interchange
AnalyticsProduct Portfolio
Management
Product Cost Management
Product Collaboration
Product Service &
Improvement
Product Governance &
Compliance
Engineering Collaboration
ComponentInsight
PartminerDistr.
Partners
ContractMfr
Plexus
IndirectProcurement
Ariba
TransMgt
DHL
SupplierInsight
D&B
InternalDevelopment
Tactical Proc.
SupplierRegistration
SupplierMgmt.
Commodity Insight
SupplyChain Anal.
ComponentInsight
PartminerDistr.
Partners
ContractMfr
Plexus
IndirectProcurement
Ariba
TransMgt
DHL
SupplierInsight
D&B
InternalDevelopment
Tactical Proc.
SupplierRegistration
SupplierMgmt.
Commodity Insight
SupplyChain Anal.
Harris PortalHarris PortalHarris PortalHarris Portal
“The combination of Agile PLM solutions with Oracle’s enterprise applications, middleware, and technology solutions offers a best-in-class, enterprise solution for
product lifecycle management. We foresee this combination as a major force in helping companies lower costs and at the same time increasing the profitability of
new product development. This is good news for customers.” - Leon Shivamber, VP Supply Chain Management & Operations, Harris Corporation
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Agile Enterprise PLM Solutions
Agile PLM - Industry leading, best-in-class, flagship enterprise PLM solution for High Tech & Electronics, Life Sciences, Industrial, Automotive, A&D, and CPG (Discrete)
Agile PLM for Process - CPG and Retail solution for product recipes and specification management, Food & Beverage is sweet spot
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Agile ProductAgile ProductCollaborationCollaboration
Engineering, Engineering, Operations & Operations & Supply ChainSupply Chain
Enterprise product record visibility, management & collaboration
Agile Enterprise Agile Enterprise VisualizationVisualization
Native document collaborative
visualization across the global enterprise
Cross-EnterpriseCross-Enterprise
Agile Agile Engineering Engineering
CollaborationCollaborationEngineering desktop
integration & collaboration
DevelopmentDevelopment& Engineering& Engineering
Agile Product Cost Agile Product Cost ManagementManagement
Product sourcing and lifecycle cost & risk management
Procurement Procurement ProfessionalsProfessionals
Agile Product Portfolio Agile Product Portfolio ManagementManagement
Integrated product, program, resource & portfolio
management
Executives & Program Executives & Program OfficeOffice
Agile Product Agile Product Governance Governance
& & ComplianceCompliance
Product & program compliance against
standards & regulatory
requirements
Compliance Compliance OfficeOffice
Closed-loop product quality management
across the extended enterprise
QualityQualityProfessionalProfessional
ss
Agile Agile Quality Quality
ManagemManagementent
Agile PLM
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Agile PLM for Process
Prototype, evaluate and optimize formulations and BOMs
Manage packaging and labeling development process and data
Manage supply chain entities and sourcing relationships, and collaborate with suppliers
Ensure quality, safety and complianceSynchronize product
data with internal systems and external data pools
Create, manage and approve product data, from raw materials and components to finished products
Manage cross-functional innovation portfolios, projects and activities
26
Why Oracle Agile for PLM?
44• Customer Success
• Best track record for customer success & referenceability in PLM• Fastest TTV, Lowest TCO, Lowest Risk
55• CAD & ERP Agnostic; 100% (Enterprise) PLM Focused
• MCAD, ECAD, SW Integration Breadth; CAD & ERP agnostic approach
22• Broadest Enterprise PLM Solution Footprint
• Broadest footprint, strongest adoption outside mechanical engineering• Supply chain, electronics, cost, quality, compliance, portfolio, decision support
33• Industry Domain Expertise & Best Practices
• PLM market leader with focus & presence across key EHT segments (computers, communications, consumer electronics, semiconductor, EMS/ODM)
• Deep domain expertise & best practices developed working with 800+ EHT customers
11• Business Ready Applications
• Out-of-the-Box, Configurable Applications• Fastest Time-To-Implement & Lowest Overall TCO
66• Product Network Built & Proven
• Built for collaboration across enterprise & product network since inception• Mature, out-of-the-box network capabilities; 100s of live ‘product network’ customers