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Copyright 2013, Oracle and/or its affiliates. All rights reserved.#1Procurement Cloud ServiceTom AnthonyVice President, Procurement Product Strategy

May 14, 2013

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#2

Copyright 2013, Oracle and/or its affiliates. All rights reserved.3Safe Harbor StatementThe 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 Oracles products remains at the sole discretion of Oracle.Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Transition: Weve always been proud of our customer successes, and this year we have something else to be proud of -- our Americas Cup Racing team.ORACLE TEAM USA is defending their title in the 34th Americas Cup in San Francisco in 2013. If youve ever seen world-class sailing, you know that the teams make navigating currents, tides and wind speeds look easy even at speeds up to 30 knots. The ORACLE TEAM USA boat itself is an engineering marvel built with the latest technologies and materials. Based on detailed analysis of weather patterns, wind speeds and other environmental conditions, it is designed to be in perfect balance while still being flexible enough to adjust to changing conditions.

3Oracle Fusion Procurement AgendaOverviewAdoption ChoicesCustomer ProfilesCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Introduce the agenda4Oracle Fusion ProcurementSmarter NegotiationSmarter BuyingSmarter Collaboration

Helps You Spend SmarterCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Procurement helps you spend smarter with smarter negotiation, smarter buying, and smarter collaboration

5Oracle Fusion ProcurementSmarter NegotiationSmarter BuyingSmarter Collaboration

Helps You Spend SmarterCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Transition slide to talk about Smarter Negotiation6Maximize the Value of ExpertsTeam Based Sourcing

Category ManagerProduct DevelopmentSuppliersOperations

Simplified Experience Guided Navigation, Intuitive Design, Negotiation Templates, Negotiation Styles

Easy Collaboration Multi-functional Teams, On-Line and Off Line Bid Submission and Analysis

Straightforward Oversight Negotiation Calendar, Activity Tracking, and Recommended Actions

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Sourcing allows you to leverage your experts with a team based solution approach to deliver on the value of tighter alignment with business needs.

Key Points:Fusion Sourcing is designed to leverage cross functional expertise to generate the most valueFusion sourcing was designed to simplify the experience of negotiating with suppliers. Features such as Negotiation Styles allow you to only capture the information needed for the type of negotiation you are performing.Fusion Sourcing allows teams to easily collaborate on requirements while the negotiation calendar, recent activities, and recommended actions allow for oversight of existing negotiations7Contract ExecutionContract Execution Create Enforceable AgreementsNegotiation MgmtAuthoring MgmtRepository mgmt

Compliance Analytics legacy

Universal Repository Mgmt

Master Agreement

Line ItemsPricingDeliverablesService LevelsTermsAmendments

Net 30

Integrated Contracts

Ver. 2.xStandardize Agreements Establish standard language, compliant drafts, redline and compare against standards

Improve Visibility Leverage a secure and searchable contract repository, renewals management, amendment tracking, and audit history

Ensure Compliance Deviations reporting, exception based approvals, and contract deliverables8Copyright 2013, Oracle and/or its affiliates. All rights reserved.Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Procurement Contracts allows you to capture negotiated savings \by creating enforceable agreements that ensure price and terms compliance

Key Points:You can leverage a standard clause library and rules to ensure contract compliance and minimize contract riskYou can improve contract visibility with a fully searchable contract repository and full contract lifecycle managementYou can ensure compliance with standards using deviations reporting and contract approvals

Transition: (lets take a look at contract deviations)8Oracle Fusion ProcurementSmarter NegotiationSmarter BuyingSmarter Collaboration

Helps You Spend SmarterCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Transition from Smarter Negotiation to Smarter Buying9Adaptive Shared ServicesLeverage Category and Process ExpertiseShared ServicesABC ConsumerABC IndustrialConsumer Specific Process

Consumer Categoriese.g. Packaging

Industrial Specific ProcessIndustrial Categoriese.g. Packaging

Centralized Categories

Supplies

HardwareTravelTelcoOffice SuppliesStandardized and Shared

ProcessesPricingCatalogs

AgreementsConsumer GoodsIndustrial SuppliesStandardize Supply-base and processes across your organization

Share Agreements, Catalogs, and Pricing

Exploit Spend, category experts, and clerical resources

Execute Locally and centrally

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Procurement simplifies the buying process to help you leverage the contracted pricing and terms that you negotiated.

Key Points:You can drive the business to your negotiated catalogs to reduce off contract spendYou have the flexibility to centralize or decentralize procurement activities based on category expertise.You can leverage agreements and catalog content across lines of business

10Show Users Whats Important to Them Role Based DashboardsCategory ManagersRequestersBuyersSuppliers

SourcingContractsSelf Service ProcurementPurchasingPayablesRole Based Dashboards

Intelligent Watchlist

Context Sensitive Alerts

Personalized Worklists

Dynamic Summary of Key Actions

What do I need to know? What do I need to do? How do I do it? Who do I need to work with?

Consolidates all relevant information

Brings key tasks to the user and directs attention to hot-spots

Increases both efficiency and effectivenessFor the Way People Really Work

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Procurement shows users what they need to know, what they need to do, and who they need to work with.

Key points:Fusion directs people to take action based on their role(s) making them more efficient using key actions, alerts, worklists and watchlistKey information is consolidated across applications to make people more effective

11Which is the best choice?

Help Them Understand What to DoConsumer-Based User ExperienceHow do I?

Embedded LearningWhere can I find?

Simplified SearchWhat do I need?

TelcoTravelServicesOffice Supplies

SuppliesCatalog Super Store

HardwareSoftware

Copyright 2013, Oracle and/or its affiliates. All rights reserved.Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Procurement has a consumer based design that allows people to quickly find the goods and services they need

Key Points:Fusion leverages embedded learning to show users how to perform tasks and minimize training costsFusion Procurement simplifies the search process so that users can quickly find what they need12Oracle Fusion ProcurementSmarter NegotiationSmarter BuyingSmarter Collaboration

Helps You Spend SmarterCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Transition from Smarter Buying to Smarter Collaboration

13Secure. Intuitive. Real Time.Interactive CollaborationImprove Supplier CommunicationBid ResponsesContract NegotiationActive MonitoringShipments & DeliverablesPayables Collaboration

Order Collaboration

Suppliers

End-UsersMaximize supplier self service with a browser-based approach for supplier enablementExpedite invoice processing with invoice presentment and paymentReduce catalog administration costs with supplier catalog authoringDrive suppliers to action with the supplier work center

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion Procurement expands the concepts of improving self service and collaboration beyond the 4 walls to suppliers

Key points:Suppliers also benefit from the concepts of what they need to know, what they need to do, and who they need to work withFusion supports transactional collaboration across the source to settle business process including online invoice presentmentSupplier can also manage their own content such as descriptions and pricing with controls in place for review and approval14Social CollaborationAccelerate Knowledge TransferWhohowwhatwhere

End usersfinanceCategory Managerssuppliers

A

Copyright 2013, Oracle and/or its affiliates. All rights reserved.15Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Collaboration across your internal organization and your suppliers can drive additional value

Key Points:Collaboration is occurring informally today, but typically is not captured in context with your transaction systemsFacilitating and capturing social collaboration accelerates knowledge transfer for both the short tem and the long term

15Oracle Fusion ProcurementSmarter NegotiationSmarter BuyingSmarter Collaboration

Helps You Spend SmarterCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Recap how Fusion Procurement helps you spend smarter with smarter negotiation, smarter buying and smarter collaboration.16Oracle Fusion Procurement AgendaOverviewAdoption ChoicesCustomer ProfilesCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Transition to Adoption Choices17Complete Choice

Select The DeploymentThats Right For You

Upgrade On Your ScheduleChoose The Solutions You NeedYou Decide When, You Decide What, You Decide HowCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion gives you choice with respect to upgrades, solutions, and deployment approach.

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Part of Oracle Public CloudEnterprise Resource PlanningERPSupply Chain ManagementInventory & Cost MgmtShipping & ReceivingProduct Data MasterSupply Chain Performance Reporting

FinancialManagementFinancialsExpensesFinancial Reports CenterRisk & Control MgmtPlanning & BudgetingProcurementPurchasingSelf Service ProcurementSourcingProcurement ContractsSupplier PortalProjectPortfolio ManagementProject Budgeting & ForecastingProject CostingProject Contracts & Billing Project Performance Reporting

Copyright 2012, Oracle and/or its affiliates. All rights reserved.Copyright 2013, Oracle and/or its affiliates. All rights reserved.19Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Recap that Fusion Procurement is part of the overall Fusion ERP Cloud Service Offering19

Procurement on Public Cloud ServicesPowered by Oracle Fusion Procurement

PurchasingCenter Driven ProcurementUnified ApprovalsBuyers Work CenterDocument Change Mgmt

Supplier PortalInteractive CollaborationSupplier Work CenterCatalog AuthoringElectronic InvoicingSourcingNegotiation StylesGuided Event CreationLive Negotiation MonitorSpreadsheet Automation

Procurement ContractsContract Lifecycle MgmtContract RepositoryContract SearchCompliance Monitoring

Self Service ProcurementConsumer ExperienceUnified ApprovalsCatalog ManagementEasy to BuyPredictable per-user-per-month pricing with no hardware to buy or set-up

Easy to AdoptConsumer-based user experience without IT bottlenecks, customizations, or complex provisioning

Easy to GrowPart of a modular suite that runs on public cloud, private cloud, on premise- or any combination that meets your needsCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Introduce Procurement Public Cloud Services and the solutions components available

Key Points: Cover the easy to buy, easy to adopt, and easy to grow messages20Fusion Coexistence Strategies

Sourcing and Procurement Contracts Oracle Fusion Procurement

SourcingContracts

SolutionStrategic sourcing and contract management

CapabilitiesOnline negotiation and collaboration, RFX, reverse auctionsContract authoring, universal repository, contract export, and compliance management

BenefitsPromote collaboration, create long term savings, and make sourcing easier for everyoneGain visibility to agreements, shorten cycle times and automate compliance legacy

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion procurement can provide a cloud based solution for the strategic side of procurement with Sourcing and Procurement Contracts.

Key Points:Transactional components for automating routine tasks include Purchasing & Self Service Procurement (SSP). Purchasing is an application for professional buyers. Self-service procurement is a desktop requisitioning tool used by employees who are only buying casually. Strategic applications focused on generating major savings are Sourcing and Contracts. Sourcing essentially moves supplier negotiation online which delivers efficiency and savings gains. And Contracts is part of Enterprise Contracts for negotiating and managing agreements online. The supplier portal and analytics cut across all elements of the suite so support both transactional and strategic processes. The supplier portal provides a secure, web based portal for suppliers to execute on procurement collaboration and order management. And analytics are a self explanatory concept, but have a very different set of use cases in Fusion as well see coming up.

By combining both kinds of applications with next generation technology, weve created new ways of using applications to address long standing procurement challenges. Fusion Coexistence StrategiesProcure-to-PaySolutionProcure-to-Pay

CapabilitiesSelf service requisitioning with consumer-based user experienceIntegrated purchasing and payables with pervasive analytics and role-based dashboards Interactive supplier portal and transaction delivery network

BenefitsBroader adoption, higher compliance, and increased employee satisfactionSimplified set-up & maintenance of center-led operations for global efficiency, consolidation, and tax benefitsFacilitate transaction-based and collaborative supplier enablement strategies

legacy

Oracle Fusion Procurement PayablesPurchasingSelf Service ProcurementSupplier Portal

Supplier Network

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Fusion procurement can also offer transactional components of supply management with Procure to Pay in the cloud

Key Points: Transactional components for automating routine tasks include Purchasing & Self Service Procurement (SSP). Purchasing is an application for professional buyers. Self-service procurement is a desktop requisitioning tool used by employees who are only buying casually. Strategic applications focused on generating major savings are Sourcing and Contracts. Sourcing essentially moves supplier negotiation online which delivers efficiency and savings gains. And Contracts is part of Enterprise Contracts for negotiating and managing agreements online. The supplier portal and analytics cut across all elements of the suite so support both transactional and strategic processes. The supplier portal provides a secure, web based portal for suppliers to execute on procurement collaboration and order management. And analytics are a self explanatory concept, but have a very different set of use cases in Fusion as well see coming up.

By combining both kinds of applications with next generation technology, weve created new ways of using applications to address long standing procurement challenges. Oracle Fusion Procurement AgendaOverviewAdoption ChoicesCustomer ProfilesCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Slide Purpose: Transition to customer examples and experiences23Company needed to improve procurement efficiency and implement a system to better manage contracts and track purchasing department performance.Oracle ERP:Fusion Procurement ContractsOracle WebCenterImproved contract management practices globallyImproved purchasing performance managementSimplified system access and dashboardChallengeSolutionResultRetail Customer

Copyright 2013, Oracle and/or its affiliates. All rights reserved.#Additional information for this customer can be found on the Win with Oracle Applications blog:

http://emeablogs.oraclecorp.com/oracleapps/2012/12/04/fusion-procurement-win-at-carrefour-enabled-by-our-partnership-with-atos-for-internal-use-only/

24Company needed to automate processes to handle rapid global growth. They also needed better tracking of Finance and HR activities for compliance purposes.Oracle ERP & HCM:Fusion ProcurementFusion Talent MgmtImproved auditingIncreased efficiency resulting from process automationIncreased employee adoption of talent management tools and leader effectivenessChallengeSolutionResult

Financial Services

LiveCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Manufacturing

Company had a decentralized application environment that resulted from M&A activities. The company wanted to centralize its data, improve its reporting, and begin the transformation of its IT infrastructure to a next generation shared service model.

Oracle ERP:Fusion FinancialsFusion Accounting HubFusion ProcurementFusion Inventory MgmtFusion Transactional Business IntelligenceProvided new generation usabilityEliminated manual workflowProvided enterprise visibilityPaved the way for its next generation ERP Shared Service modelChallengeSolutionResultDesigner and manufacturer of integrated circuits (ICs), semiconductors, and other electronic components. Copyright 2013, Oracle and/or its affiliates. All rights reserved.#26

Land OLakes wanted to centralize and automate its procurement processes, and needed a best in class architecture to support the desired change. Oracle Hosted Services:Fusion ProcurementFusion FinancialsFusion Transactional Business IntelligenceStreamlined process flow across the procure to pay cycleReduced costs through improved negotiation capabilitiesImproved visibility of spend across company categories and specific suppliersChallengeSolutionResultThe second-largest member-owned cooperative in the U.S. and leading marketer of dairy-based food products, handling 12 billion pounds of milk annually.

Land OLakes, Inc.

LiveCopyright 2013, Oracle and/or its affiliates. All rights reserved.#Additional information for this customer can be found on the Win with Oracle Applications blog:http://emeablogs.oraclecorp.com/oracleapps/2012/10/18/land_olakes_is_live_on_fusion_procurement/http://emeablogs.oraclecorp.com/oracleapps/2012/03/05/fusion_apps_win_at_land_o_lakes/

This customer was featured in external reference assets:

VideoLand O Lakes Excels with Oracle Fusion Applicationshttp://medianetwork.oracle.com/video/player/2036640257001

VideoFusion Procurement Improves Spend Visibility at Land OLakeshttp://medianetwork.oracle.com/video/player/2050258931001

VideoCFO Insights: Interview with Land O' Lakes CFO Dan Knutsonhttp://link.brightcove.com/services/player/bcpid62612523001?bctid=2016842056001

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Questions?Copyright 2013, Oracle and/or its affiliates. All rights reserved.#28Copyright 2013, Oracle and/or its affiliates. All rights reserved.#29