3 oracle apps day mi global keynote

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The Amazing Journey of an Order Line

Paolo Prandini

Master Principal Sales Consultant

Oracle Italy

Russia & The Beatles

• Art Troitsky, Russia’s leading rock music writer and

self-proclaimed “radical young man” during the

Beatles era, describes just how important the band

was, behind the Iron Curtain. “In the big bad West,”

he says, “they’ve had whole huge institutions which

spent millions of dollars for undermining the Soviet

system. And I’m sure that the impact of all those

stupid Cold War institutions has been much, much

smaller than the impact of the Beatles.”

Moscow, 1967

• Dimitri loved the

Beatles secretly

• His friend Hans in the

DDR had access to

their Records / Tapestheir Records / Tapes

• Hans was expected

in Moscow later that

year... For the yearly

Cultural change

“Cultural Exchange”

“Orchestration”

Place Order

• Dimitri wrote to Hans

• Sgt Pepper Album “ordered”

Orchestration

• Hans lived in East Berlin

• He “managed” to get the Album Orchestration • He “managed” to get the Album

Deliver

• Hans went to Moscow

• Dimitri was so Happy

A changing world...

45 years later.... In Moscow...

• Olga, 40 years old

• Looking for “The

Colour of Death” by

Michael Cordy

• Orders through

• Oxana, 23 years old

• Looking for “The Colour

of Death” by Michael

Cordy

• Orders through Web • Orders through

traditional Shop, 3

days delivery

• Orders through Web

Reseller ‘Bookstore.ru’,

Overnight delivery

Two Order Lines, One Destiny

Place Order

•• OOxana Orders via Web

Orchestration

• Distributor Places Order

• Editor Receives the Order

Place Order

•• OOlga Orders in the Shop

Orchestration

• Shop Places Order

• Distributor Places Order

• Editor Receives the Order

Deliver

• Distributor Receives the Order

•• OOxana can pick this at a Pick Up point in MoscowDeliver

• Distributor Receives the Order

• Shop Receives the Order

•• OOlga can pick this at the Shop

Today’s Order Lines live on Multi-Channel

PRICINGPRICING PRICING PRICING PRICING PRICING

DATA

LOGIC

ORDER CAPTURE

PROMOTIONS

DATA

LOGIC

ORDER CAPTURE

PROMOTIONS

DATA

LOGIC

ORDER CAPTURE

PROMOTIONS

DATA

LOGIC

ORDER CAPTURE

PROMOTIONS

DATA

LOGIC

ORDER CAPTURE

PROMOTIONS

DATA

LOGIC

ORDER CAPTURE

PROMOTIONS

Siloed Channels Dramatically Increase

Integration Expense

• Integration of end-to-end processes spanning multiple systems

• Replication of business logic, business process and data across channelsacross channels

• Replication of business planning and management across channels

• Investment in multiple middleware systems and technology stacks

The Customer Relationship is not Leveraged

by Today’s Customer Journeys

WebWeb

ContactCenterContactCenter

In-StoreIn-Store

Comparison Site

Visit Retail Store

Chat

Local Store

Buy Online

Kiosk

Place Order

Research Shop Buy ServicePickup

Buy Online

Call to Research Accessory

CatalogCatalog

MobileDeviceMobileDevice

eMaileMail

SocialSocial

GoogleSearch

FacebookFan Club

Email Order Confirm w/Rec

Share Experience on

TwitterRead Reviews

TroubleshootOn Community

Product Info

Kiosk

BeginCatalogOrder

Browse Catalog

• Leverages customer information from all channels and systems

• Manages interactions across all channels

• Unifies commerce, merchandising, marketing, and service across all channels

Companies Want a Single-Provider

Solution That@

channels

• Provides personalized, choreographed consumer journeys across all channels

• Integrated to supply chain management, and order orchestration and fulfillment

Multi-Channel Retailing

Reta

il

REGIONAL DC

NATIONAL DC

VENDOR

Buy / Order Fulfill Cross Channel Demand & OrdersAcquire

STORES

STORES

Channel

Dir

ect

Changing Order Fulfillment Business NeedsNeed for a New Approach

• 49% of customers use multiple

ordering channels

• 61% companies sell through indirect

channels

• 32% of companies sell/plan to sell

partner products or services

• Average of 5.1 order capture and 4.3

• Order accuracy is below 85%

• Delays in new product introductions

• Falling customer satisfaction

• Order cycle time up from 1 to 3 days

Resulting ChallengesResulting Challenges

More Complexity, Faster Changes, Failing Systems More Complexity, Faster Changes, Failing Systems

• Average of 5.1 order capture and 4.3

fulfillment applications per company

• 60% have limited or no integration

• 50% have limited or no data

standardization

• 40% of companies outsource a large

part of fulfillment

• 43% of companies make an

acquisition each year

• Increasing customer service complexity

• Inventories have increased 15%

• Fulfillment now accounts for 50% of

supply chain

Requires a new architecture that natively supports multi-system, rules-based

fulfillment orchestration

Requires a new architecture that natively supports multi-system, rules-based

fulfillment orchestration

The Challenges in Delivering Multi-Channel

35%

51%

56%

58%

We don't have a solid definition of how consumers cross our channels

Coordinating pricing and promotions with other channels

Managing fulfillment across channels

Real-time inventory visibility/ management

Top 3 Challenges Bringing eCommerce Functionality Across Channels

16%

19%

23%

35%

Managing returns across channels

Online carries a wider assortment than other channels

Assigning sales and performance metrics across channels

Optimizing inventory deployment to speed delivery and minimize holding costs

Source: RSR 2011 Cross-Channel Survey Results

Resulting ROI Opportunities Current Environment

• 45% of customers place orders through multiple channels

• Avg. company has 5.2 order capture applications

• Avg. company has 4.3 order fulfillment applications

– 60% have partial or no integration

– 50% have no or limited data standardization

Indirect Partner OtherDirect

DirectDirect

Customers

Services

• Inventories have increased 15%

• Order cycle time has tripled from 1 to 3 days

• Order accuracy is below 85%, often near 70%

• Fulfillment costs now >50% of supply chain

• High inefficiencies in creating, tracking & expediting fulfillment

• Increased volatility

Current Order Management Environment

ERP CRMERP CRM

ERP

ERP CRM

Partner Products

• 61% of companies sell through indirect channels

• 32% of companies sell or plan to sell partner products or services

• 40% of companies outsource a large part of fulfillment process

• 43% of companies make an acquisition each year

WMS / MFG

WMS / MFG

WMS / MFGERP SCM

WMS

ERP SCM

WMS

ERP SCM

WMS

Drop-ship

vendors

• Increased volatility

• Declining return on sales

• Lower customer satisfaction due to unmet promises

ERP

ERP CRM

SCM ERP

ERP

SCM ERP

ERP

SCM ERP

Logistics

• Inventory Mgt

• Warehouse Mgt

• Shipping / Receiving

• Transportation Mgt

Manufacturing

• Discrete MFG

• Process MFG

APS

• Advanced Planning

Quote / Order Capture

• Create Transaction

• Select & Configure Products

• Create Shipment Expectations

• Check / Reserve Inventory

• Negotiate Terms

• Determine Tax

• Capture Payment

• Validate and Submit Order-Ch

an

nel

Orchestrate Orders

• Order Decomposition

• Order Orchestration

• Distributed Inventory

• Order Workbench

• Data Transformation

Re-Defining Order ManagementHeterogeneous Environment

ORCHESTRATECAPTURE FULFILL

Oracle Confidential – covered under NDA

Internal

Network*Internal

Network*Internal

Network*Partner

NetworkPartner

NetworkPartner

Network

SCM

• Advanced Planning

• Global Order Promise

Field Service

• Scheduling & Dispatch

• Dispatch

Finance

• AP / AR / GL

• Billing / Invoicing

• Validate and Submit Order

Manage Order

• Order Status Inquiry

• Modify Order

• Cancel Order

• Return Order

• Renew Order

Mu

lti-

Dropship

NetworkDropship

NetworkDropship

Network

Business Process Mgmt. & Business Activity MonitoringCRM SCM

Multi-Channel Challenge

TelesalesDirect MobileWebStore

Warehousing

(Legacy)

ERP

(Legacy)

Store Picking Logistics

(Partner)

Billing

(Oracle)

Multi-Channel Challenge - Orchestration


BusinessBusinessFinish Line

Store PickingWarehousing

(Legacy)

ERP

(Legacy)

Logistics

(Partner)

Billing

(Oracle)

BusinessBusiness

RulesRules

Finish Line

In Store

eCommerce

Our Multi-Channel Challenge - Orchestration


OrderOrder


(Legacy)

ERP

(Legacy)

Logistics

(Partner)

Billing

(Oracle)

OrderOrder

ProcessesProcesses

Multi-Channel Challenge - Availability


AvailableAvailable


(Legacy)

ERP

(Legacy)

Logistics

(Partner)

Billing

(Oracle)

AvailableAvailable

to Promiseto Promise

Multi-Channel Challenge - Exceptions


ExceptionException


(Legacy)

ERP

(Legacy)

Logistics

(Partner)

Billing

(Oracle)

ExceptionException

MgmtMgmt

Single Global Instance, Built for Multi-Channel Deployments from the Ground Up

Distributed

Web Services

Distributed

Order Orchestration

Web Services

Order OrchestrationSolution Architecture & Product

Order OrchestrationWorkbench

Decomposition Orchestration Global Order Promising

FulfillmentFulfillmentOrder

Capture Order

Capture

Distributed Order OrchestrationDistributed Order Orchestration

Task Layer Services

External Interface Layer

FulfillmentSystems

FulfillmentSystems

Capture SystemsCapture Systems

Oracle FusionOracle FusionFinancial ManagementFinancial Management

General Ledger

Accounts Payable

Payments & Collections

Asset Management

Accounts Receivable

Cash & Expense Management

Common ModulesKPIs, Dashboards,& Extensibility FW

Oracle Fusion Oracle Fusion Human Capital ManagementHuman Capital Management

Oracle FusionOracle FusionSupply Chain ManagementSupply Chain Management

Product Master Data Management

Distributed Order Orchestration

Inventory Management

Global Order Promising

Cost Management

Shipping & Receiving

KPIs, Dashboards,& Extensibility FW

Oracle FusionOracle Fusion Oracle FusionOracle Fusion

Oracle Fusion Applications 11g R1 Family Overviews

Global Human Resources

Workforce Management

Benefits

Compensation Management

Talent ReviewPerformance& Goal Mgmt

GlobalPayroll

Network @ Work

KPIs, Dashboards,

& Extensibility FW

Oracle FusionOracle FusionOracle FusionOracle FusionProject Portfolio ManagementProject Portfolio Management

Project Costing

ProjectBilling

Project Control

Project Performance

Reporting

Project Integration Gateway

Project Contracts


Oracle FusionOracle FusionSales & MarketingSales & Marketing

Customer Master

Sales Marketing

IncentiveCompensation

Mobile & Outlook Integration

Territory & Quota Mgmt


Financial Compliance

Issue & Risk Manager

Access Controls

Transaction Controls

Configuration Controls

KPIs, Dashboards, & Extensibility FW

Oracle FusionOracle FusionGRCGRC

Oracle FusionOracle FusionProcurementProcurement

PurchasingSelf-service Procurement

Sourcing

Supplier Portal

Spend & Performance

Analysis


Procurement Contracts

Order Lines of the Future

• Imagine you’re steaming across the Pacific Ocean on a

container ship on a great circle course to the SanFrancisco sea buoy

• Minutes later, the Chief Engineer calls to inform youthat

the PLS Dosage Pump supply valve has failed and your the PLS Dosage Pump supply valve has failed and your

ship is now dead in the water

• Your shipment will be delayed, money and resources will

be lost and the office will be calling soon on

the satellite phone asking for answersJ

• But what if you could make that replacement part

yourself?http://www.forbes.com/sites/gcaptain/2012/03/06/will-3d-printing-change-the-world/3/

Order Lines of the Future

• Imagine you’re steaming across the Pacific Ocean on a

container ship on a great circle course to the SanFrancisco sea buoy

• Minutes later, the Chief Engineer calls to inform youthat

the PLS Dosage Pump supply valve has failed and your the PLS Dosage Pump supply valve has failed and your

ship is now dead in the water

• Your shipment will be delayed, money and resources will

be lost and the office will be calling soon on

the satellite phone asking for answersJ

• But what if you could make that replacement part

yourself?

With engineers and scientists currently doing amazing things around the world with this technology, an endless article could be

written about the possibilities, but I think one thing is clear: 3D printing, while still just hitting its stride, will impact the future in

unimaginable ways.

http://www.forbes.com/sites/gcaptain/2012/03/06/will-3d-printing-change-the-world/3/

The Future is Great

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3 oracle apps day mi global keynote