Retek Global Business Unit Product Strategy Sales Kick Off FY 2006 Joe Polonski

Retek Global Business Unit Product Strategy

Sales Kick Off FY 2006

Joe Polonski

2

Agenda

Solution Breadth

Audience

Competitive Landscape

Retail Spearheads

Integration Update

Strategic Initiatives

3

Solution Breadth

supply chain

call center

webstore

customer

merchandising finance

HRreal estate

planning

smart end-to-end customer centric processes

multi-channel retailingagile supply chaincorporate operations

Technology Infrastructure

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Co-ManagedInventory

Merchandise Planning & Optimization

MerchandiseFinancial Planning

Assortment Management Allocation

Regular PriceOptimization

Item Planning

Visual SpacePlanning

CustomerSegmentation

Supply Chain Planning & Optimization

Demand Forecasting CPFR®

Advanced InventoryPlanning

InventoryOptimization

Supply Chain Execution

Merchandise OperationsManagement

Store & Multi-Channel Retailing

PromotionPlanning

Space Optimization

Collaborative ProductDevelopment

InvoiceMatching

Price & PromotionsManagement Sales Audit

Point ofSale

Store InventoryManagement

Multi-Channel:Customer

WarehouseManagement

LaborManagement

MarkdownOptimization

MerchandiseData Management

Purchase OrderManagement

Inventory Mgmt &Stock Ledger

Global Sourcing &Import Management

PromotionalForecasting

Multi-Channel:Operations

Multi-Channel:Inventory

CampaignManagement

CorporateAdministration

FinanceManagement

CorporateOperations

IndirectProcurement

CorporatePerformance Mgmt

CustomerHub

CustomerIntelligence

Real EstateManagement

Store ConstructionProjects

LeaseManagement

EnterpriseAsset Management

Human Resources

Payroll Benefits Recruiting Training IncentiveCompensation

CRM & Marketing

Vendor FundsTracking

eCommerce ServiceBusiness-to-Business Sales

AssociateIntelligence

Associate HRSelf Service

Enterprise Infrastructure

Portal Workflow &Alerts

10g: Application Server & Database

DataWarehouse

ApplicationIntegration

Manufacturing

Solution Breadth

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Joint GTM Oracle | Retek

Industry Driver Challenges Spearhead Enablers

To comply with increasingly onerous corporate governance requirements, retailers and trading partners must generate and manage unprecedented levels of data.

Dual pressures of financial performance and delivering differentiated customer experiences requires retailers to utilize a single demand plan to drive assortments and maximize returns on inventory assets.

To increase competitive edge, retailers and their suppliers must set collaborative goals, participate in shared programs, monitor and validate effectiveness in shared plans and execution.

The exploding choices of channels and retailers is elevating the importance of consumer experience. Now, more than ever, service and experience drive consumer loyalty.

Because retailers and trading partners operate information silos, they must gather and analyze data from many conflicting sources before discerning what is accurate and true.

Consumer demand fluctuates dramatically from market to market depending on competition, events, weather, pricing, promotions — you name it. Retailers need to orchestrate all functions around one demand plan.

Supply and demand issues, constraints and costs require retailers to collaborate with trading partners for instantaneous reactions.

The retail workforce is increasingly more transient and often ill-equipped to personify a retailer’s brand promise.

Information Integrity for the Extended Retail Enterprise(Better information, better decisions)

Planning Driven Enterprise (Better agility, tailored customer experiences, better results)

Supply Chain Collaboration (Optimal inventory controls, better ROI)

Workforce Excellence(Better service, better retail.)

Merchandise Operations Management, Data Hub, Tech Stack, Financials, ICM, Retek Syncra Exchange

Merchandise Financial Planning, Demand Forecasting, Assortment to Space Optimization

Retek Syncra Exchange, Oracle CPFR, Advanced Inventory Planning, Inventory Optimization,Demand Forecasting, Warehouse Management

Human Resources, Advanced Benefits, Payroll, Self Service, iLearning, iRecruitment, Store Retailing

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Agenda

Solution Breadth

Audience


Retail Spearheads

Integration Update


7

Retail Industry Sub-Segment Focus Areas:

Sub-Segment Sample Type Retailers Size

Hard Goods Best Buy, AutoZone, Home Depot

>$250M

Quick Serve Restaurants IHOP, McDonald’s >$250M

Food / Drug / Convenience

Walgreen’s, Tesco >$500M

Specialty Apparel Ann Taylor, Gymboree >$250M

Department Stores Dillard’s, Sears, Federated Group, Mervyn’s

>$500M

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Now empowering global merchandising and the extended value chain for…

- Any retail format - Any assortment or SKU - Any channel - Anywhere

No matter how diverse

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Agenda

Solution Breadth

Audience


Retail Spearheads

Integration Update


10


Stores & Order Mgmt

Merchandising/Enterprise

MerchandisePlanning & Optimization

Inventory Planning & Optimization

WMS

Roll-ups

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Point Solution Competition

● It’s important to take notice of point solution competitors– We encounter point solution competitors across our retail

solution groups

● Best-of-breed point solutions or enterprise system– Oracle | Retek is the only point solution provider to offer a modular

approach to invest in and implement an enterprise retail system– “Xi changes the game with applications that compete individually

in store operations, retail planning and supply chain, but deliver as a tightly integrated, consistent platform with demand intelligence at the core – exactly what a retailer needs to achieve profitable differentiation.”

● Only to offer back office solutions– Oracle | Retek is the only retail solution provider to offer retail point

solutions for HR and finance

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Only Oracle | Retek

Advantage Oracle | Retek Disadvantage SAP Leading provider of proven scalable solutions for multi-segment and multi-channel retailing

● SAP does not have the tech stack nor the full functionality of Retek’s suite. SAP started in manufacturing, not Retail

Powerful solutions for any size retailer. ● SAP offering is only suited for the big Retailers, with large capacity for full deployment.

Leading provider of technology and full enterprise suite to run any retail enterprise regardless of financial method of accountability

● SAP does not support Retail Stock Ledger

Always built on standards ● SAP Proprietary ABAP & SAP NetWeaver do not adhere to industry needs

Proven demand analytics and forecasting. ● SAP claims to have analytics, but question what is installed and being used.

Leading provider of solutions built for the full retail enterprise, including store operations

● SAP does not have store operations.

Widely adopted merchandise planning for retail. ● SAP has weak merchandise planning.

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SAP: Selling to IT to Hide the Gaps

“With significant functionality gaps, SAP has been targeting the CIO or CFO for its retail wins. One CIO admitted business users actually preferred the functionality of other retail application vendors over SAP.”

AMR

Janet Suleski, Robert Garf, Alexi Sarnevitz

AMR, May 24, 2005

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SAP: Areas of Weakness Abound

SAP…could be hampered by exposed gaps in its retail product depth and breadth. SAP must focus its financial and development efforts immediately on those areas where its weaknesses are most evident to retailers:

– Store technology

– Demand Intelligence

– Merchant-centric usability

– Core retail execution AMR

Scott LangdocAMR, April 7, 2005

NOTE: In a few discussions, Langdoc has said that SAP has “functional holes that you could drive a semi truck through.”

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JDA Confusion Stalls Growth

Confusion about its new product roadmap and timing is causing an overall slowdown for JDA’s products.

Only four customers to date implementing .NET -- and none are expected to be referenceable until the end of the year.

“This is not surprising given the messaging during last year’s third quarter earnings call when CEO Brewer stated that this initial .NET release would haveless functionality than the legacy products.”

AMR

Alexi Sarnevitz and Janet Suleski

May 4, 2005

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Agenda

Solution Breadth

Audience


Retail Spearheads

Integration Update


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Retailers and trading partners have silos of information, making planning, management and execution difficult, resulting in inaccuracies in orders, and reconciliation.

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Executing from the same data through collaboration and/or synchronization within retailers and extending to their trading partners, all users enjoy the benefits of data integrity such as order/invoice accuracy and reduced supply chain disruption.

supply chain

call center

webstore

customer


HRreal estate

planning

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Co-ManagedInventory





Item Planning










PromotionPlanning

Space Optimization


InvoiceMatching


Point ofSale



WarehouseManagement

LaborManagement









CampaignManagement


FinanceManagement

CorporateOperations

IndirectProcurement


CustomerHub




LeaseManagement


Human Resources


CRM & Marketing








DataWarehouse


Manufacturing


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Retailers need to understand and leverage all of the complex factors that impact the forces (market demand, pricing, positioning, inventory levels, seasonality)

dem

and

influencers

With separate demand planning engines, retailers suffer from inconsistent forecasts, which can lead to mismatched supply, demand, space allocation, etc.

dem

and

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Causal factors are used along with demand history to give retailers all the relevant data points and derived lift factors to accurately predict future demand.

With a common demand planning engine across the retail enterprise, retailers can ensure that all demand-related processes are synchronized.

Merchandise

Financial

Planning

Item

Planning

Assortment

Planning

Allocations

Order

Planning/

Replenishment

Space

Planning

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Co-ManagedInventory





Item Planning










PromotionPlanning

Space Optimization


InvoiceMatching


Point ofSale



WarehouseManagement

LaborManagement









CampaignManagement


FinanceManagement

CorporateOperations

IndirectProcurement


CustomerHub




LeaseManagement


Human Resources


CRM & Marketing








DataWarehouse


Manufacturing


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Supply Chain Collaboration(Visibility and Agility to Match Supply to Demand Cost Effectively)

When each node of the supply chain does not have forward visibility to aggregated demand they must maintain higher safety stocks or risk lower service levels.

ImportSupplier

National DC

Regional DC’s

CustomersCustomers

Consumer Insight in all Demand

& Supply Decisions

ReceiptsDemand

S M T W T F S200150300275225190300

100125160120150195180

S M T W T F S0 85 55 60 80 95 750 30 75 88 50 60 88

S M T W T F S0 13 0 7 0 17 107 5 6 3 4 6 11

S M T W T F S290350600875525490500

250350340550450385480

24


Through forward looking demand and order planning, all members of the supply chain can anticipate inventory requirements and work around constraints to avoid disruption.

ImportSupplier

National DC

Regional DC’s

CustomersCustomers

Consumer Insight in all Demand

& Supply Decisions200150300275225190300

100125160120150195180

0 85 55 60 80 95 750 30 75 88 50 60 880 13 0 7 0 17 107 5 6 3 4 6 11

S M T W T F S290350600875525490500

250350340550450385480

ReceiptsDemand

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DataWarehouse


Co-ManagedInventory





Item Planning










PromotionPlanning

Space Optimization


InvoiceMatching


Point ofSale



WarehouseManagement

LaborManagement









CampaignManagement


FinanceManagement

CorporateOperations

IndirectProcurement


CustomerHub




LeaseManagement


Human Resources


CRM & Marketing








Manufacturing


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Agenda

Solution Breadth

Audience


Retail Spearheads

Integration Update


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Integration Update – Media Coverage

“ Industry watchers said it was impressive that (Oracle-Retek) is already showing co-developed products to customers.”

“ SAP’s biggest cut on the Oracle-Retek marriage was that it would take too long for the combined entity to address the integration issues…specifically tying the retail software to other enterprise applications. By getting a release out the door so quickly, Oracle may be able to eliminate some of those doubts, or at lease get people to sit down with both companies before buying, according to experts.”

CNET Blog

Matt Hines

June 2 2005

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Integration Update

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Integration Update

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Agenda

Solution Breadth

Audience


Retail Spearheads

Integration Update


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Strategic Initiatives - new development areas

supply chain

call center

webstore

customer


HRreal estate

planning

smart end-to-end customer centric processes

multi-channel retailingagile supply chaincorporate operations

Technology Infrastructure

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Technology Roadmap

● Leverage Oracle Technology– Standardize and consolidate on Oracle in next major release– Roadmap assumes validation that all business function and non-functional

requirements will be appropriately met– Add new technology to fill gaps in next major release

● Current GA Products– Support existing technology stacks on current GA releases through balance of

release life cycle– Might opportunistically add Oracle option (where 3rd party exists now) to current

Retek Xi to accelerate Oracle sales channel enablement

● Customer Upgrade Plan– Oracle | Retek is acutely aware of both customer implementation and 3rd party

technology investment issues around upgrading to subsequent Oracle based releases, so is considering tools and licensing options that may provide some customer relief, details are still to be determined

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FY06 Technology Upgrades

● Application Servers– IBM WAS OAS– BEA OAS

● Integration– SeeBeyond JMS Independent on OAS, Oracle AQ default

● Operational Reporting– Business Objects Oracle Reports

● Wireless– Wavelink Oracle Wireless

● Oracle Identity and Security Management– NAV/RSM on WAS OAS + Oracle Based Solutions (OID,etc.)

● Data Warehouse*– MicroStrategy Oracle Discoverer + 10g OLAP– Retek ETL Warehouse Builder

* assumes Server Tech collaboration + retail data volume validation

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FY06 Technology Additions

● Planned– RFID and Sensor Based Services

» Edge server» Automatic data collection technologies

– Product Data Hub

● Possible (R&D investigation active or planned)– Customer Data Hub– BPEL– Oracle 10g BAM to augment ARI Alerting– Daily Business Intelligence to augment Reports and Portal– Retek Predictive Application Server

» Acumate Oracle

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The Power of Oracle | Retek – 3 Key Takeaways

● Opportunity– The market is ready to buy

● Retail Expertise– We have the solution breadth and depth, and the strategy to

beat SAP● Proven

– Some of the world’s leading retailers are Oracle | Retek customers

– Proven success

Retek Global Business Unit


Vince Beacom

Retek Global Business Unit Sales Engagement


Greg Donnelly

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Direct Sales Alignment

There will be a standard alignment model for North America

● Sales Management from both groups will collaborate on a “Named Account” target list and assign either an Oracle | Retek or Oracle Apps Sales Executive as “Team Lead” to facilitate a single point of contact with the customer

● The Oracle Apps group will assume an overlay revenue quota of the Oracle | Retek quota by region

● Individual Oracle sales representatives will not carry a specific Oracle | Retek quota

● Oracle Team Lead’s will be receive a 2.5% commission payment on Retek deals sold in their accounts

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Direct Sales Alignment

Example Commission Payouts

Mid Market Point Solution Deal

Tier 1 Point Solution Deal

Mid Market Enterprise Deal

Tier 1 Enterprise Deal

Average Selling Price $1,000,000 $2,000,000 $2,500,000 $5,000,000

Payment Rate 2.5% 2.5% 2.5% 2.5%

Dollar Payment $25,000 $50,000 $62,500 $125,000

Customer Example Whole Foods Best Buy HUB Distributing

AAFES

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Qualification Rules

1. Size of prospect

– Greater than $1B in revenue

– Greater than 1000 POS Clients for Store Solutions

(Small Business packaging to be released in 2007)

2. Core Industry Fit

• General Merchandise

• Hard Goods & Soft Goods (Big Box & Small Box)

• Grocery & Convenience Store

3. Approved Project

• Budgeted

• Qualified RFP / RFI Project Process

• Existing Oracle customer - “Executive Level” sponsor

Note: Oracle customers will be more closely scrutinized for qualification exceptions

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Account Planning & Tracking

1. Submit a completed “One Page” qualification questionnaire (72 Hr. Response)

● All leads are logged and tracked (Qualified or Not)

● Questionnaire to be published Friday, June 24th

2. Qualified leads are logged into Oracle l Retek contact management system

3. Qualified leads assigned to an Oracle l Retek “Sales Executive” for opportunity alignment

4. Oracle l Retek “Sales Executive” initiates Account Planning Process

● Team lead defined based on published “Named Account List” and/or Client Relationship

● Team lead disputes elevated for executive decision (72 Hr. Response)

● “Account Planning Template” to be published July 1st

5. Prospects making the Global Top 20 “Focus Report” require Oracle Sales participation in weekly Oracle l Retek Sales Meetings

* Comprehensive planning and tracking process to be published on-line July 1st

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Next Steps: Retail Selling Resources● Retek Solution Education

– Webinar on July 21 will deliver the features and functionality of Retek solutions

● Updated Field FAQ

– To be delivered by the first week of July

– Field FAQ will be available on InsideRetek and Oracle Dashboard

● Selling Tools

– Brand transition complete in September, in time for Oracle OpenWorld

– Some updated and new retail collateral delivered in September

– Retek solution content incorporated into Oracle.com in September

– Now Available: Demo tool that allows navigation between Retek and Oracle Financial applications

– New demo featuring data integration will be available in Q3, FY06 when data integration between Oracle and Retek applications is complete

● Pre-Sales (Global Solution Unit Resources)

– Ramping capacity, however will be more strict in the short term on qualified opportunities

– Building out GTM Enterprise Sales Strategy Team (Beat SAP)

» Technology, Applications & Business Commercials

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Positioned for Profitability

● 1 company, 1 retail team, 1 retail message

● Oracle + Retek = a compelling, differentiated offer for retail– Best-of-breed point solutions or enterprise retail system– Back office solutions, scalable infrastructure, functionality to

run day-to-day retail operations

● The domain expertise, tools, functionality and strategy to beat SAP

●The Result: Better Positioned to Sell Into Retail

Documents

Retek Global Business Unit Product Strategy Sales Kick Off FY 2006 Joe Polonski