© 2008 Oracle Corporation – Proprietary and Confidential …opnpublic/... · Matt Johnson, Senior Director, Consumer Goods Industry Strategy Demand

© 2008 Oracle Corporation – Proprietary and Confidential-1-


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.

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Matt Johnson, Senior Director, Consumer Goods Industry Strategy

Demand Signal Repository


Objectives

• Introduce the new Oracle Demand Signal Repository (DSR) application

• Explain Oracle’s go-to-market approach, differentiators and proof points.

• Identify opportunities for partner engagements related to an Oracle DSR implementation


Agenda

• Introduction to Oracle Demand Signal Repository

• Oracle DSR Go-To-Market Approach

• Partner Opportunities


Key Consumer Goods Challenges

• How do I leverage store level data to improve demand planning, allocation and replenishment?

• How do I monitor distribution and sell through at retail to identify and mitigate store/SKU level execution issues ASAP?

• How can I conduct more timely and accurate pre and post promotion analysis and optimization?

• How can I enable attribute-based new product development and demand forecasting?

• How can I improve in-store execution of product introductions and promotions?

• How do I reduce the number of fragmented POS data marts and solutions in my environment?

• How do I extend and scale my current POS solution to meet the current and future needs of the business?

Reduce lost sales

due to out of stocks

Improve effectiveness

of promotions and new

product introductions

Reduce IT complexity

and cost

Supply Chain

Marketing

IT

• How do I deliver timely, fact-based customer-specific brand and category growth strategies?

• How can my sales teams spend more time on value added activities and less time dealing with retail data issues?

Provide differentiated

products & services to

key customers

Sales & Category

Mgmt


Availability of Data Is No Longer The Issue

Data

Sources/Types

Data Frequency

Data Granularity

Application

Availability

Internal Data

Direct From Retailers

Syndicated Data

Ad Hoc Weekly

Market/ Category Level

Daily/SKU Level

Weekly/ RDC Level

MS Office, Custom

Enterprise AppsNiche

Daily

Yesterday Today


Demand Data Management Today

Retailer 1 POS

Retailer 2 POS

IRI

ACN

Distrib. 1

Distrib. 2

Other

Capture + Cleanse

Capture + Cleanse

Capture + Cleanse

Capture + Cleanse

Capture + Cleanse

Capture + Cleanse

Capture + Cleanse

• High latency of demand data

• Increased probability of inconsistencies across applications

• Significant manual effort and cost

Downstream Demand DataTPM

TPO

APS

S&OP

DRP

SNO

PLM

Data sources cleansed and managed independently


Solution Approach

• More timely data - to better sense, shape and respond to demand

• More consistent data - usable across teams and applications

• Reduced manual effort and cost

• POS sales

• Price

• Store inventory

• Promotional plans

• Store replen. rules

• Store forecasts

Retail Store Data

Demantra

Sales & Operations Planning

Demand Management

Retail DC/

Distributor Data

Other

External Data

• Retail loyalty

• IRI/AC Nielsen

• Demographics

• Causal (weather, etc.)

• RFID/EPC

• DC shipments

• DC inventory

• DC replenishment rules

Predictive Trade Planning

Retail Execution

Product Lifecycle Management

Enterprise Performance Mgmt

Trade Promotion Management

SO

A-B

ase

d I

nte

gra

tio

n

Front Office Applications

Pre

-Bu

ilt

Inte

gra

tio

n

Demand Signal Repository

• Data sources centrally cleansed, harmonized and aggregated

• Pre-built dashboards and reports

• Powerful BI capabilities

• “Sense & Respond” event management

Capture

Manage

Analyze

Respond

Integrate


Key DSR Capabilities Capture

Manage

Analyze

Respond

Oracle Demand Signal Repository

Integrate

Systematically capture, manage and prepare/store large volumes of disparate external data

1

Analyze and report on data at the lowest level of detail2

Expose clean, harmonized, aggregated demand data to external applications

3

Applications

Oracle

DSR

External Data Applications

Oracle

DSR

External Data


Extensible, Retail-Oriented Data ModelManage Large Volumes of Complex, External Demand Data

• Unified and optimized for intelligence and integration

• Maintains data at lowest level of detail – SKU / location / day

• Enables reporting according to manufacturer or retail hierarchy

• Over 200 entities, 1000 attributes

• Anticipates future DSR requirements (loyalty data, market basket data, …)

Based on a Proven

Oracle Retail Data Model

…Enhanced to Meet

Manufacturers’

Requirements


DSR Category Management Dashboard

• Multiple KPIs in a single dashboard

• Track performance relative to pre-defined thresholds

• Drill-down to view supporting data

• All reports viewable in retailer hierarchy or manufacturer hierarchy

• Reports can be automatically delivered via MS Office tools


DSR Pre-Built ReportsStart Quickly to Accelerate Time to Value...

• Color coded Color coded Color coded Color coded threshholdsthreshholdsthreshholdsthreshholds

• One button drill One button drill One button drill One button drill down to view down to view down to view down to view supporting datasupporting datasupporting datasupporting data

Continue drill down to the Continue drill down to the Continue drill down to the Continue drill down to the lowest level to understand the lowest level to understand the lowest level to understand the lowest level to understand the root causes of variancesroot causes of variancesroot causes of variancesroot causes of variances

Complete set of Tabs Complete set of Tabs Complete set of Tabs Complete set of Tabs for All Category for All Category for All Category for All Category Management Report Management Report Management Report Management Report TemplatesTemplatesTemplatesTemplates


DSR Trading Partner Scorecard

Monitor Results Monitor Results Monitor Results Monitor Results vsvsvsvsGoals over timeGoals over timeGoals over timeGoals over time

Drill down to view Drill down to view Drill down to view Drill down to view supporting datasupporting datasupporting datasupporting data


DSR Ad Hoc Reporting Capabilities

Expand to view detailed Expand to view detailed Expand to view detailed Expand to view detailed data. data. data. data. ““““Drag, drop and Drag, drop and Drag, drop and Drag, drop and clickclickclickclick”””” to create a report.to create a report.to create a report.to create a report.

Available catalog of Available catalog of Available catalog of Available catalog of measures, measures, measures, measures, hierarchies, and hierarchies, and hierarchies, and hierarchies, and attributesattributesattributesattributes


Capabilities and Benefits by DSR User

• Periodic and ad hoc review of key category, operational and financial measures

• Leverage exception-based alerting to monitor key store and RDC level supply chain KPIs for promotions and NPIs

• Weekly review of key supply chain/ operational performance measures of baseline products

• Weekly review of category performance measures

• Daily review of select promotions or item introductions at a day/store/SKU level

• Analyze performance related to your own items only, competitors only or all items

• Exception-based alerting to monitor sales related KPIs at a day/store/SKU level

• Analyze and communicate performance data in your retailer’s own views

• Quickly create ad hoc reports in response to ad hoc requests from retailer and internal stakeholders

DSR Capabilities

• Reduce working capital via improved inventory management

• Increase revenue via improved service levels/retail customer satisfaction

Customer

Logistics/

Supply Chain

• Improve accuracy and timeliness of reporting on key drivers of shareholder value

Executive

Management

• Increase revenue and brand equity via more effective category and brand growth strategies

Category

Managers

• Increase revenue/reduce lost sales due to poor store/SKU level visibility

• Increase sales team efficiency -allocate more time to analysis vs. preparation of retailer-facing analysis

Customer

Sales

Sample BenefitsUser


Agenda





Oracle DSR Go-to-Market Approach

• Transition DSR from an “under-the-radar” field sales application to an enterprise solution.

• Support the data model requirements of multinational corporations (multiple customers, organizational structures, currencies, units of measure)

• Support evolution (slowly changing dimensions) and mapping of diverse retail sources to a harmonized manufacturer view.

• Leverage existing Oracle DBA and BI skills, rather than require a one-off infrastructure for DSR (Teradata, Netezza, DB2…).

• Link DSR into core consumer goods processes (e.g., demand planning, trade management,…)


DSR Value PropositionThe DSR is Focused on Driving Profitable Growth

Increase

Operating

Income

Increase

Capital

Efficiency

Increase

Revenue

Increase

Shareholder

Value

Reduce Operating Costs

Reduce Working Capital

Increase Market Share

Increase Volume

�Reduce data cleansing,

harmonization and integration

costs

�Reduce excess safety stock

� Improve on shelf availability

� Improve category management

� Improve promotional planning

and execution

� Improve new product

development and introduction


DSR Customer ProgramsTwo Customer Programs Have Been Launched

• DSR Focus Group• Provide key Oracle customers the opportunity to provide input in the

current and future requirements and design

• Kick-Off session held Feb 19-20 in Redwood Shores

• Participants included LOB and IT executives representing 8 companies: Cadbury, Clorox, Constellation Brands, Handleman, Hormel, Leapfrog, Reckitt-Benckiser, Smuckers

• Ongoing program

• DSR Strategic Implementation Program• Provide a controlled number of strategic customers with a high level

of commitment, attention, and support from Oracle thru initial implementation/go-live

• Scope: ~2-3 customers

• Limited duration


Oracle DSR DifferentiatorsThe first DSR from a major software vendor

• Enterprise strength - open, flexible and extensible based a proven retail data model

• Best-in-class analytics and BI

• Integration to key Oracle and non-Oracle applications to enable demand-driven operations

“Oracle is showing thought leadership…[all CG manufacturers] should consider Oracle DSR… whether they are existing Oracle database and application users or not”

Oracle’s Demand Data Breakthrough

(March 17 2008)


Agenda





DSR-Related Engagements

• Strategic assessment / benchmarking / business case for use of customer demand signals

• Implementation• Design and configuration of data sources, hierarchies, maps

and measures

• Retail adapter development

• Dashboard / analytics extension and development

• Integration of demand signals into enterprise applications

• Technical systems sizing / implementation / tuning

• System administration / business process outsourcing

• Organizational design / user training and upskilling


DSR Integration Scenarios

Store/Distr.On-hand

Sales

Returns/Unsaleables

ConsumerEvents

StoreOrders

Trade

Promotion

Mgmt

Predictive

Trade

Planning

Demand

Management

Distribution

Requirements

Planning

Product

Lifecycle

Management

Retail

Execution

Retailer

Distributor

Syndicated

Store/Distr.On-hand

Sales

Returns/Unsaleables

ConsumerEvents

StoreOrders

Trade

Promotion

Mgmt

Predictive

Trade

Planning

Demand

Management

Distribution

Requirements

Planning

Product

Lifecycle

Management

Retail

Execution

Retailer

Distributor

Syndicated

Oracle DSR

Monitor sell-

through of in-flight

promotions

Incorporate impact

of consumer events in

promotion forecasts

Forecast based on

cleansed, detailed

point-of-sale data

Incorporate

retailer inventory

in order plans

Address quality

issues in design

and packaging

Base delivery

and merchandising

on current sales

Store/Distr.On-hand

Sales

Returns/Unsaleables

ConsumerEvents

StoreOrders

Trade

Promotion

Mgmt

Predictive

Trade

Planning

Demand

Management

Distribution

Requirements

Planning

Product

Lifecycle

Management

Retail

Execution

Retailer

Distributor

Syndicated

Store/Distr.On-hand

Sales

Returns/Unsaleables

ConsumerEvents

StoreOrders

Trade

Promotion

Mgmt

Predictive

Trade

Planning

Demand

Management

Distribution

Requirements

Planning

Product

Lifecycle

Management

Retail

Execution

Retailer

Distributor

Syndicated

Oracle DSR

Monitor sell-

through of in-flight

promotions

Incorporate impact

of consumer events in

promotion forecasts

Forecast based on

cleansed, detailed

point-of-sale data

Incorporate

retailer inventory

in order plans

Address quality

issues in design

and packaging

Base delivery

and merchandising

on current sales


Integration Data Flow

• POS sales• Price• Store inventory• Promotions• Replenishment rules• Store forecasts

Retail Store Data

Retail DC/

Distributor Data

• Retail DC shipments• Retail DC receipts• Retail DC inventory• Retail DC replen. rules

Other

External Data

• IRI/AC Nielsen• 3rd party demographic• Causal (weather,etc.)

ERP

DemandPlanning

Demand SignalRepository

• Data sources centrally

cleansed and harmonized

• Aggregation and derived

measure calculation in

terms of retailer and

manufacturer hierarchies

• Pre-built dashboards and

reports

• Integration with enterprise

applications

CAPTURE

MANAGE

ANALYZE

RESPOND

INTEGRATE

• Manufacturer Items• Brands/Categories• Style/Color/Size/Pkg

• POS (unit) sales• Store + RDC inventory• Retailer forecasts• Retailer promotions• Retailer replen. rules

Retail Master Data

• Retailer items*/stores/DCs• Retailer categories/classes• Style/color/size/pkg

*Including competitor items (in category captain scenario)

• POS ($) Sales• Retail item margin• Retail receipt quantities• Retailer promotions• Average retail price

© 2008 Oracle Corporation – Proprietary and Confidential

© 2008 Oracle Corporation – Proprietary and Confidential

Documents

© 2008 Oracle Corporation – Proprietary and Confidential …opnpublic/... · Matt Johnson, Senior Director, Consumer Goods Industry Strategy Demand