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Speaker Slide Subtitle

Presenter’s Name Presenter’s Title Organization, Division or Business Unit Month 00, 2015

Oracle Project Procurement Strategy and Roadmap

Paulo Back Vice President Oracle Applications Development June 24, 2015

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Safe Harbor Statement

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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Program Agenda

Product Update

Development Strategy

Project Procurement

Strategy and Roadmap

1

2

3

4

4


Customer Engagement Program Oracle E-Business Suite Model

Enhancement Requests - My Oracle Support Support Communities

Special Interest Groups (SIGs)

eForums Surveys/Feedback

Customer Advisory Boards (CABs)

Strategy Councils

CIO

Advisory

Board

Customers

High

Low

Customer Commitment &

Investment

5


Enhancement Request & EBS Support Communities Collaboration with User Groups – i.e. OAUG

• Submit and share enhancements yourself – and rally peers around it

• Gain insights into all ERs and discussions/status

• Collaborate with others on the ER and discuss alternatives or available workarounds

• Influence releases by voting

• Interact directly with product management through ER comments

Customer Value Oracle E-Business Suite Procurement Community

6


Applications Unlimited - Continuing Innovation

Oracle E-Business Suite – Strategy and Roadmap

1. User Experience Innovation 2. Functional Innovation 3. Operational Efficiency

Ongoing Investment Priorities

12.2 12.2.3 12.2.4 12.2.5 12.2.6 12.2.7 12.x.y

Sep’13 Dec’13 Aug’14

12.1 12.1.2 12.1.3 12.1.3+

May’09 Dec’09 Aug’10

12.0 12.0.6

Jan’07 Dec’08

New Releases For 12.1.3 & 12.2+

EBS Information Management

Mobility Applications

In-Memory Applications


Oracle Projects & Procurement

Best in Class Solutions business processes – across multiple industries

Scaleable – for small and very large organizations

Global – managing globally while operating locally

Complete, Open, Modern ERP Solution

Oracle eBusiness Suite

EBS

8

Projects & Procurement

Financials

Human Capital

Manufacturing

Asset Lifecycle &

Service

Logistics


Enterprise Project Performance Management

Project Management and Operations

Business Operations

Application Foundation

Billing & Invoicing Earned Value Management

Planning and Scheduling Costing Project Procurement

Human Resources Time and Labor Supply Chain

End-to-End Industry Processes

Master Data Management

Comprehensive Security

Enterprise Analytics

Project Portfolio Management

Project Financial Management

Project Resource Management

Contract Management Change Management

Budgeting & Forecasting

Financials

Project Analytics

Oracle E-Business Suite Projects


Modular Portfolio for Value Driven Transformation For Moving Beyond Transactions & Spend Reduction

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. 11

The Digital Age Why now?

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly

12

around-the-

clock availability big data change at the

speed of business

customer

engagement immediate

information

mobile personalized

service

social user experience

digital changes everything

real-time

fulfillment

zero errors


Differentiate Your Business Through Technology

• Operational performance and value creation may represent a paradox of competing goals

– Inside Out: Drive efficiencies across the processes and organizations to reduce transactional cost

– Outside In: Drive effectiveness to the supply chain to provide competitive advantage to the organization

Data is the lifeblood for designing compelling system of differentiation with great scalability and great customer experiences.

Empowering Automating

Innovating Controlling

Informing Orchestrating

Creating Exponential Value – Data Driven Insights

System of Records System of Differentiation

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 14

Companies risk falling behind

Infrastructure

Business Model

Skills

Regulations

Technology Innovation

Competitive Landscape Pace of Change

Ability to Respond

2016 2015

2014


Project Management Why they still fail?


Challenges

84% of companies are unable to adjust and realign their budgets with their business needs Data from the US Bureau of Economic Analysis Data


The Innovation Challenge

Innovation

Expectations Delivery

The Execution Gap

72% CEOs identify the ability to manage projects as critical to the growth of the business

11% Are confident of their ability to manage business critical projects

Source: IPMA Study Sept. 2010


Customers Unclear expectations

Scope changes Unrealistic timelines

Talent Inadequate skills Resource competition Staffing requirements Conflicting priorities

Innovation Greater risk Poor communication Ambiguous contingency Poor estimating

Why Do Plans Fail?

Globalization Increasing complexity

Permanent Volatility Multinational teams

Bad plans

PROJECT EXECUTION PRESSURES

!


Project Management – Organizational Issues Horizontal vs. Vertical – flow of information and execution

19

Management Gap

Operations: Work Force

Top Management:

Policy

Middle Management:

Planning

Supervisors: Scheduling

+ =

Functional Gaps Departmentalization

Operational Islands Siloed


employees are not actively engaged

7 10 out of

of CEOs concerned about talent

60%

79% 50%

Collaboration

72%

Conducting Analysis Work Away From Office

Modern Work Requires Modern Technologies


Project Procurement Your biggest bang for the buck


Pharmaceuticals 56%

Semiconductor 56%

Utilities 39%

Other Industries 48%

Financial Services 22%

Indust. Mfging. 55%

Metals & Mining 44%

Petroleum 43%

Aerospace & Defense 47%

Chemical 53%

DOE/NNE Contractors 46%

Eng. & Const.53%

Source: CAPS Research

Procurement is a fundamental part of the Project

Manage the Project Supply Chain Procurement Spend as % of Revenue


Challenges in Procurement Intensive Projects

Communication Communication between disciplines/departments

Systematic transfer of critical information Alignment of extended team to objectives (in sync)

Reduce impact of unexpected problems

Planning & Decision-Making Accurate requirements and budget impacts Each group/person knows the expectation

Coordinating procurement plan and workplan Vendor ability and performance communication

Execution, Monitor and Control Collaboration/communication with vendors

Shared information between participants Coordination of project and procurement plans

Single source of truth plans

Change Management & Re-Planning Change management

Changes in vendor abilities to provide Schedule, requirements or dependency changes

Tactical planning for logistics


Impact of Operational Fragmentation

24

Abnormal wastage and decision latency Undermanaged and misallocated risk

Inappropriate distribution and management of supply base

Ineffective supplier management for logistics

Inadequate spend analytics and compliance

Segregated processes and disciplines Lack of Procurement involvement in

forecasting and planning requirements

Outdated technology and segregated systems

Inadequate control of project and design changes

Project Management Procurement

Sourcing

Purchasing

Planning

Resource Management


0

25

50

75

100

Before After

Profit

Payroll, Tax, & Other Expenses

Purchases

Spend -5%

Profit +50%

Procurement’s Disproportionate Margin Impact Small Changes. Big Difference.

5% Reduction in Spend Increases Profit by 50%

In order to obtain an equivalent impact, a firm

would have to...

• Increase Sales by 50%

• Cut Overhead by 20%


Traditional approach: Is There a Better Way? Disconnected plans, long planning cycles, high latency in decision making

Tier 2 Tier 1

Paper

Delivery

Acquisition Plan

Mfg plans

Project Plan

Actuals

SUPPLIERS

Budget & Forecast

PROJECT MGR BUYER

CUSTOMERS

?

Marketing Forecast

Sales Forecast

Response 1: Maintain excess inventory Response 2: Reserve production capacity Response 3: Expedite everything!

Supply Chains built on

INVENTORY

Unpredictable Project Delivery


Oracle Project Procurement Command Center Instantaneous Information for Differentiation


Project Procurement Command Center Collaborative Planning, Integrated Execution & Strategic Alignment

• Align acquisition strategy for project success

– Shared procurement plan unifies the stakeholders

– Shared execution strategy on budget, product specification, quality and schedule drives consistent decisions

• Make the right decisions to realign

– Quickly find the best suppliers, materials and services

– Align procurement decisions to shared critical success factors for the project

• Deliver your projects according to plan

– Sync up material specification, quality, budget, need by date requirements to delivery

– Sync up project schedule to material availability – and track supplier performance on the fly

For Both 12.1.3 and 12.2

Project Procurement Plan

Main Point

Procurement Documents

Project Schedule and Budgets

Suppliers and Items

Purchasing Project

Management

28

12.1.3 / 12.2.4


Oracle Project Procurement Integrated Command Center Actions

Create and Manage Negotiations

Initiate Requisitions

Monitor and Measure Procurement

View and Update Project Information

• Know when to create requisitions to ensure items are received on-time

• Select multiple plan-lines and add them to the shopping cart

• Track downstream activity of requisitions based on plans

• Measure supplier performance on a project over the duration

• Measure spending based on supplier status or type

• Measure unplanned spend

• Measure delivery and quality to project objectives

• Initiate negotiations

• Use document builder to create new negotiations

• Track negotiation status

• Compare and award

• Link negotiation outcome as a source of supply

• View tasks and schedules for a project

• Identify tasks affected due to exceptions

• Select multiple tasks and update their status, schedule etc. in one step

• Initiate updates to financial plans

Implement decisions through integrated EBS application actions

12.1.3 / 12.2.4

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential 32

Digital Assets Wealth of Information Available Today

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Project Information

Vendor Information

Resource Information

Customer Information

DATA CAPITAL • Connect And Govern

Any Data

• Simplify Access To All Data

• Discover And Prescribe, Fast

• Accelerate Data-Driven Action


Procurement Operations Dashboard Proactively resolve issues before they impact business. Manage workload effectively.

• Prioritize work, discover and resolve problems with a dashboard that offers a 360° view of your activities

• Take corrective action on exceptions before business is affected

• Use powerful insights to drive timely and well-informed decision-making

• Search across documents and update multiple documents with one click

12.1.3 / 12.2.4


Item Analysis Dashboard Select Items / Services That Best Meet Specifications and Performance Requirements

• Align item selection to business needs using insights from procurement history

• Quickly access procurement history of both inventory items and one-time items and services

• Make an informed item choice by comparing procurement history and performance attributes for each item

12.1.3 / 12.2.4


Supplier Analysis Dashboard Match Business Needs With Supplier Capabilities

• Find the right suppliers meeting organizational objectives and business needs

• Align supplier accountability for

common business outcomes

• Manage overall supplier relationship

12.1.3 / 12.2.4


Mobile Project Manager

Click icon to add picture




Project List Overview Summary Team Overview

12.1.3 / 12.2.4


Mobile Project Manager





Customer Details Supplier Payments

Customer Invoices

Issues

12.1.3 / 12.2.4


Requester Checks Delivery Status On The Go Mobile iProcurement Smartphone Application

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View requisitions with alerts requiring attention

View requisition, approvers, and lines

View line detail, receipts, and open shipments

Collaborate in context with buyer

12.1.3 / 12.2.4


Manager Approves On The Go Mobile Approval Smartphone Application

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View pending and past approvals and filters

Quickly act on pending approvals

Drilldown to view and act on document

Approve, Reject, or Request Information

12.1.3 / 12.2.4


Time Cards, Expenses Mobile Apps





Enter expenses, including project related expenses

Enter, submit, view, and approve expenses

Enter, submit, view, and approve project expenses

Time Entry for Payroll/Projects

12.1.3 / 12.2.4


Oracle Project Procurement Real Time Strategy, Planning and Execution

41

Collaborative Planning

Tier 2 Tier 1

Acquisition Plan

Forecast & Delivery

Project Plan

Actuals

SUPPLIERS

Budget & Forecast

PROJECT MGR BUYER

CUSTOMERS Project Specification

Customer Drivers

Portal

Supplier commit

SOV

Operations Forecast

Collaboration

Benefit 1: Reduced planning cycle time Benefit 2: Faster and better decision making Benefit 3: Closed-loop planning and execution Benefit 4: Enables best-in-class processes

Supply Chains built on

INFORMATION

REDUCED LATENCY, FULL VISIBILITY


Deliver Value to your Customers and Partners

Sub point

• Align Decision Making / Collaboration

• Provide Context of Customer and Objectives

• Always know where you are at - Progress and Provide Course to Objectives

• Change -> Constraints -> trade off’s = Results

• Bring everyone’s expertise together

Resource Utilization

Expertise

Customer Information

Contract Information

Budget & Schedule

Supplier Relationship

Digital Assets

Drive Customer Loyalty • Customer Renewal • Increase Share of Customer • Manage the Relationship Efficient Project Execution. • Operational Efficiency

Achieve Project Objectives • Within time • Within cost • At the desired

performance and technology levels

• While utilizing assigned resources effectively

• Accepted by the customer

Business Outcomes

Social

Big Data Mobile

Cloud

Decision Driven Solution

Supplier Relationship • Optimized sourcing • Contract Management

Internet of Everything

Technology

Strategy – Taking an Outside in Approach Leveraging Your Current Digital Assets


Oracle Enterprise Project Portfolio Management Strategy and Roadmap


Information Management

Oracle Advanced Project Planning & Control

Project Integration Management

Instant Intelligence – Information sharing – Intelligent decision making – Leverage expertise across the organization Coordinates and unites all the other areas. Collaborates to

proactively resolve issues before they impact business

Customer Delivery Management

Guides & Aligns the deliverables with the Contractual Agreement

Cost Management

Budget and understanding of cost deviations (Where?, Why?

& How?)

Quality Management

Project is fulfilling requirements, meeting defined

needs, obligations

Procurement Mgmt.

Manage procurement of materiel and services for a

project

Stakeholder Management

Identify those impacted, analyze needs, and engage in

decision making

Scope Management

Focus on requirements, scope, and developing work

breakdown

Resource Management

Resource requirements, availability, usage, and rate

analysis for a delivery

Risk Management

Risk analysis, identify, quantify risks, and risk responses

Time Management

Schedule, dates, activity, and activity resources


Improved Project User Experience

• Simplified Project Creation

– Single Page Creation

– Copy options (attachments, attributes, team members, transaction controls) post-creation

– Consistent user experience to funding screens

• Improved navigation, alignment, and precision on budgeting & forecasting pages

• Single view of work plan and financial plan

• Move task(s) across top tasks

NEW IN 12.2

46

12.2.4


Labor Costing with Projects & Payroll Better Cost Control, Improved Cash Flow

• What – Costing Using HR Rates

– Rate by Criteria

– Prevailing Wage Support

– Costing using Payroll Actuals

– Calculate & bill accruals prior to payroll run

– Costing reversals for error correction

– Support non-Oracle time and payroll systems

– Total Time Reporting for Exempt Employees

• Benefits – Increased accuracy for reporting and billing labor costs

– Improved cash flow by billing prior to payroll run

– Compliance with industry standards for labor cost reporting

NEW IN 12.2

47

12.2.4


Changes are Inevitable Success or Failure Depends on How You Manage the Trade-offs

Within allocated term period and budget? ?

Time

Cost

Lowest Cost

Highest Quality

Shortest Time

Most common Primary Objectives in

Project Management

Resolve constraints without impacting overall results!

Image/ Reputation

Risk

Time Cost

Scope At the proper specification ?

With acceptance by the customer / user ?

Without disturbing main flow of org ?


Schedule of Value

• Capture the Cost, Schedule, Scope at each deliverable line item of the contract

• Align the work plan to customer requirements and the contractual deliverables

• Actual, budget, and forecast cost and revenue reported against work plan, schedule of values, and cost breakdown structure

• Integrating progress and invoicing to work plan and delivery commitments

• Forecasting based on the progress of the deliverable

• Unit based resource requirements for quick, consistent & reusable resources allocation for each deliverable


Advanced Project Planning & Control

• Outcome Driven – Aligns your organization to your customer deliverables

• Information Centric– Combines data from across your enterprise in one place

• Manages Constraints – Resolves issues without impacting results

• Transparency – Drive accountability across organization with visibility

• Empowers – Allows you team to take action to resolve

50



Value Driven Procurement Strategy and Roadmap


Procurement Command Center Solution Overview

Operations Management

Proactively resolve issues before they impact business, and manage workload effectively

Customer Collaboration Aligning procurement towards fulfilling the needs of a dynamic business environment

Supplier Management Enable effective collaboration through electronic networks and portals

Indirect Procurement

Have catalogs that are tailored to meet requester’s needs

Contract Management

Monitor / track contract risk

Strategic Sourcing Collaborate with business to drive effective negotiations

Contract Negotiation Structure relationships

based on strategic needs

Supplier Analysis Match business needs with

supplier capabilities

Item Analysis Manage items / services that best meet specifications and

performance

Strategic Initiatives Define, measure and achieve

business goals by driving targeted initiatives

Direct Procurement Leverage supplier partnership to

drive efficiency and responsiveness in multi-level supply-chains

Services Management

Make high-quality workforce available to all contractor requests

Supplier Relationship Align supplier qualifications and

performance assessments to business needs









Contract Management








performance





Services Management





Significant Time Spent on Routine Activities Not anymore…

The Present & Future

Outside in – Shifting the

center of gravity to the

customer

Operational decisions have

been streamlined and

automated

Focus on improvement of

services, catalogs, risk

management and value

creation

Has enough time to interact

with his customers and

understand their needs

better

The Past

• Bogged down with non-value added, routine, operational decisions

• Spends significant time on Demand Workbench – worried about non-catalog requests

• Slow to react to exceptions


Shop Across All Catalogues and All Stores at Once

Consumer Shopping Experience 12.1.3 / 12.2.4


Guided Navigation Automatic Filter Choices

• Configurable filters and refinements

• Add and remove filters in any sequence

• Filters show total count

58

Filtering

Refinement









Contract Management








performance





Services Management





Indirect Procurement Dashboard Tailor catalogs to meet ongoing requester needs

• Outside In – Align material / services sourcing with the internal customers needs to improve catalogs, spend under influence, policies and supplier relationship.

• Leverage expertise of the Requesters to improve sources of supply

• Gain insights into catalog usage and refine catalog content

• Review off-contract spend (including iExpense) and identify opportunities to increase contracted spend

63


Procurement Operations Dashboard Proactively resolve issues before they impact business. Manage workload effectively.

• Workload Management - Prioritize work, discover and resolve issues before they become problems

• Take corrective action on exceptions before business is affected

• Cycle time management - Use powerful insights to drive timely and well-informed decision-making

• Exponential operational efficiency – know what to work on, bulk updates, more automation – empowering the customer

64


Buyer Manages the Purchase Orders On The Go Mobile Procurement Smartphone Application

65

Easily view purchase orders requiring attention

Search orders by supplier, item, requestor, and more

View the order, approvals, lines, and exceptions

Review shipment exceptions and

contact the supplier









Contract Management








performance





Services Management





Project Procurement: Services Procurement

• Key Metrics to track procurement of services for the project

• Exceptions to highlight important issues

67

• Charts to analyze cash flow of services

• Review progress of the services

• Track deliverables of the sub-contracts (e.g., insurance, certifications)


In Closing Strategy and Roadmap









Contract Management








performance





Services Management





Oracle Advanced Project Planning & Control

Project Integration Management

Coordinates and unites all the other areas. Collaborates to proactively resolve issues before they impact business

Communication Management

Bring information from across enterprise together, bring people to the information, provide transparency

Cost Management

Budget and understanding of cost deviations (Where?, Why?

& How?)

Quality Management

Project is fulfilling requirements, meeting defined

needs, obligations

Procurement Mgmt.

Manage procurement of materiel and services for a

project

Stakeholder Management

Identify those impacted, analyze needs, and engage in

decision making

Scope Management

Focus on requirements, scope, and developing work

breakdown

Resource Management

Resource requirements, availability, usage, and rate

analysis for a delivery

Risk Management

Risk analysis, identify, quantify risks, and risk responses

Time Management

Schedule, dates, activity, and activity resources
