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How Do Business Process Issues Create Opportunities for Action

Alex Anvari, Director of Business Development

Will Hutchinson, Master Principal Sales Consultant

July 17, 2014

Oracle Confidential – Internal/Restricted/Highly Restricted


A Doer, A Thinker and A Story Teller Met Here Today

I believe you have to be willing to be misunderstood if you're going to innovate (Jeff Bezos)– From Vision to Strategy to Execution

It is impossible to speak in such a way that you cannot be misunderstood (Karl Popper)– Especially when every corporate department has a separate analytics platform

Myth of Alignment teaches us there is always ripe low hanging fruit (Anvari)– Hit Sweet Spots for risk takers– Avoid Blind Spots for risk managers


Where

• Transaction

• Books

• Functions (Dept)

• Insights

The Journey

Destination

• Records

• Reports

• Processes

• Action

Vehicle

• Application

• System

• Metrics

• Analytics


History’s Notable Attempts: “Bring To Life”

Frankenstein

System Integration:Monster emergesFrom custom datawarehouse


In the BeginningKnow Your Source: KYS Defined

1. Speaking the language of an Oracle Applications owner2. Core Messaging on Prebuilt ELT, Conformant Data Model, Metadata

synch and library of 10,000 metrics3. Reporting Co-existence: OBIA fits into OLTP Reporting Strategy4. Source Application integration for Key Fields, Security etc5. Time To Value (TTV): Answer “What Does It Take To Implement OBIA?”6. Perpetual Apps Upgrade Cycle: It's always a good phase to add OBIA


• Multi-Source Adapters

• Reporting on 1 EBS App

• Transaction

• Metric

• KPI

• Process

• Manage By Objective

• Manage By Fact

• Manage by Exception

Match the Concept with the Example

• Oracle Business Intelligence Applications

• Endeca Extensions for EBS

• Inspection, Delivery or Movement

• Inventory Turns

• Qtrly License Software % Change YOY

• Plan To Build

• Set institutional targets

• Provide performance-based metrics

• Continuously Evaluate Performance


• Records, Reports, Processes and Action

• Metrics are summary measures of the math behind business processes

• Processes under scrutiny will uncover KPI’s

• Manage by Fact and Manage by Exception

• Analytics is the foundation for action where KPIs will impacted using

principles of performance improvement.

Recap from a Functional (Business) Point of View


“Metrics That Matter” Secret Decoder Ring

When you hear “Efficiency, effectiveness, process flow, quality, throughput, cycle time, bottleneck, cost control, growth, transformation, profitability”:

• Aligning HR and Finance• Aligning Supply Chain, Order Management, Procurement and Finance• Align Marketing, Sales and Service• 360 Degree View of Plan-To-Build Process

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 10

• Leadership’s targeted improvements are “metrics that matter”

• Industry benchmarks are “metrics that matter”

• Competitor results are “metrics that matter”

• Measurement of Cross Functional Processes are “metrics that matter”

• KPIs that engage and align your organization are “metrics that matter!”

Metrics That Matter: MTM Defined


Insight to Action

HR and Finance Partnership Strategy to

Serve the Institution

BenefitsBetter Decisions

Competitive AdvantageMitigate Risks

Control and MonitoringShareholder Value

Analytics ObjectivesWhat happened?

Why did it happen?What could happen?

ChallengesComplex OrganizationMultiple Data SourcesChanging Regulations

Changing MarketsCompetitive Pressures


HR and Finance Partnership

Strategy to Serve the Institution

BenefitsBetter Decisions

Competitive AdvantageMitigate Risks

Control and MonitoringShareholder Value

Analytics Objectives

What happened?Why did it happen?

What could happen?

ChallengesComplex OrganizationMultiple Data SourcesChanging Regulations

Changing MarketsCompetitive Pressures

Insight to

Action

Organizations Become AdaptableNew Domain / Reorg / Shared Svc / M&AChanging Requirements/RegulationsSystems Are More FlexibleHR/ERP/CRM Upgrades, SaaS and HybridConsistent User ExperienceDecision Process Is AgileTrack, Trend, Predict, ActReliable Collaboration on Process & Metrics


• Total compensation and cost analysis, e.g. total base pay, incentive pay, employer-

paid healthcare cost, taxes

• Correlate learning effectiveness with employee performance to secure budget for

training programs

• Combine recruitment, retention and performance metrics to impact new hire quality

• Optimize sourcing based on vendor AND candidate performance

• Correlate job design with (non-)productive time to control overtime usage/impact

HR and Finance Together


Finance Objectives

“CFOs today would like to provide forward looking, driver based analytics that make a direct contribution to decision making and the business’ ability to meet its performance goals.”

“Fixing Finance: Advice from Experts” by APQC


Cost to “Recruit, Source & Select Employees” per New Hire

Top Performers Median Bottom$456 $1,181 $2,294

“2013 Recruiting Metrics Survey Results” by APQC


HR departments see finance’s disciplined approach to problem-solving as a way to improve their organizational standing. For

example, HR departments could apply techniques learned from financial modeling to better predict future workforce

shortfalls.

Bringing the Discipline of Finance to HR

CFO Magazine May 23, 2008


The Scope of AlignmentSupply Chain, Order Management, Procurement and Finance

Party Supplier’s Supplier to Customer’s CustomerTransaction Customer Order to Paid InvoiceExchange Physical Material and Services DeliveryDesired State Aggregate Market Demand to Order Fulfillment


Customers Distribution Manufacturing Suppliers

Industry’s Best-in-Class Footprint

Financials / HR Transactional Integration

SUPPLY MANAGEMENTPurchasing

Settlement

Supplier Mgt

Contract Mgt

SUPPLY MANAGEMENTPurchasing

Settlement

Supplier Mgt

Contract Mgt

SUPPLY PLANNINGSales & Operations Planning

Planning & Scheduling

Order Promising

Network & Inventory Opt.

Service Parts Planning

SUPPLY PLANNINGSales & Operations Planning

Planning & Scheduling

Order Promising

Network & Inventory Opt.

Service Parts Planning

DEMAND MANAGEMENTForecasting

Promotions Mgt

Demand Collaboration

VMI

DEMAND MANAGEMENTForecasting

Promotions Mgt

Demand Collaboration

VMI

PRODUCT LIFECYCLE MANAGEMENTNew Product Introduction, Quality, Cost, Compliance, Design for Supply

PRODUCT LIFECYCLE MANAGEMENTNew Product Introduction, Quality, Cost, Compliance, Design for Supply

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MANUFACTURINGMixed-mode

MANUFACTURINGMixed-mode

LOGISTICS & DISTRIBUTIONWarehouse, Transportation

LOGISTICS & DISTRIBUTIONWarehouse, Transportation

SERVICEPlanning & Execution

SERVICEPlanning & Execution

Business Intelligence: Visibility / Analytics

Collaboration

Collaboration


• Mitigate Supply Chain Risk:– Visibility and drill to transactional flows (sourcing, inventory, returns, orders, cash)– Analytical framework for scenario planning and loss estimations– Disaster Response to Business Continuity to Business Resiliency

• Supply Optimization– Supplier Management Cost and Quality– Sourcing Integrated with Demand

• Investment in Innovation– Accelerate Design to Delivery to Market– Continuous Improvement for inventory, bottlenecks, quality and compliance– Means of engaging workforce and partners.

Bottom Line Impact: Align Supply Chain, Order Management, Procurement and Finance


FINANCE INTERNAL KPI’s

• Workforce Utilization

• Inventory Accuracy

• Inventory Carrying Cost

• Inventory Turns

• On-Time Deliveries

• Perfect Orders

• Order Cycle Time

• Order Entry Accuracy

• Order Fill Rate

• Shipping Accuracy

• Customer Satisfaction

PROCUREMENT SUPPLIER KPI’s

• On-Time Deliveries

• Inbound Cost/Order Value

• Lead Time

• Fill Rate

• IT / Technology Resources

• Service Flexibility

• Attitude

• Returns Policy

• Value Added Services

• VMI Capabilities

• Ease of Doing Business

• Ethics / Compliance

SUPPLY CHAIN CUSTOMER KPI's

• Order Frequency

• Profitability

• Sales Volume

• Growth Potential

• Credit / Payment History

• Shared Strategic Vision

• Return Rate

• Customer Viability

• Loyalty

• Cost to Serve

• Competitive Pressure

• Hassle to Serve


• Revenue generated from new services;• Revenue generated from contacts made at innovation showcases (presentations

for customers that include current services, offerings in development, and third party innovation from around the world)

• Cost savings generated from new services, systems, or technology as a result of innovation initiatives;

• Cost avoidance resulting from ideas submitted by employees through its new ideas scheme;

• Number of ideas fed into the pipeline from companies that went through an innovation showcase; and

• Number of ideas progressing to each stage of idea development process, with a goal of 5% improvement in cycle time for each stage over prior year.

Global Telecom Licenses and Adapts Existing Technologies Rather than Investing in Technology DevelopmentKPIs for an Innovation Strategy


Your Oracle Analytics Team would appreciate the opportunity to discuss how you can become a better Analytics Competitor

Champion Analytics from the TopAcknowledge and endorse the changes in culture, processes, and skills that analytics competition will mean for much of your workforce. And prepare yourself to lead an analytics-focused organization: You will have to understand the theory behind various quantitative methods so you can recognize their limitations.

Create a Single Analytics InitiativePlace all data-collection and analysis activities under a common leadership, with common technology and tools. You’ll facilitate data sharing and avoid the impediments of inconsistent reporting formats, data definitions, and standards.

Focus Your Analytics EffortChannel your resources into analytics initiatives that most directly serve your overarching competitive strategy.

Establish an Analytics CultureInstill a companywide respect for measuring, testing, and evaluating quantitative evidence. Urge employees to base decisions on hard facts. Gauge and reward performance the same way—applying metrics to compensation and rewards.

Hire the Right PeoplePursue and hire analysts who possess topnotch quantitative-analysis skills, can express complex ideas in simple terms, and can interact productively with decision makers. This combination may be difficult to find, so start recruiting well before you need to fill analyst positions.

Use the Right TechnologyPrepare to spend significant resources on technology such as customer relationship management (CRM) or enterprise resource planning (ERP) systems. Present data in standard formats, integrate it, store it in a data warehouse, and make it easily accessible to everyone.

Excerpted from Harvard Business Review December 2006 “Competing on Analytics” by Thomas Davenport


• Larger data sets, faster computational power, and more advanced analytic techniques spur progress on lean-management priorities

• Sophisticated modeling identifies waste

• Workers opening frontiers of problem solving for continuous improvement

• Analytics can solve previously unsolvable (and even unknown) problems that undermine efficiency in complex manufacturing environments– hidden bottlenecks,

– operational rigidities, and

– areas of excessive variability.

• Data powers improvement efforts in quality and production planning as companies get better at storing, sharing, integrating, and understanding their data more quickly and easily.

Fast Forward to 2014McKinsey: “When Big Data Goes Lean”


Alignment of Marketing, Sales and Service

Anticipate needs and

trends

Measure effectiveness for ads and campaigns

Analyze history and behavior to

propose best offer in real time

Product availability

Customer and product history

Sentiment and brand reputation

Prevent and repair product problems

Sustained customer

satisfaction


Impactful Q&A: Cross Functional Analytics

How is our brand recognized?

How efficiently do we take orders,

fulfill and invoice?How do we reduce our cost of sales by driving more usage on our self service

channels ?

Do we differentiate product, place,

promotion, price?

Are we meeting market demand

quickly?

How do we improve on inventory & delivery

performance?

Can we improve customer service?

How do we keep customers engaged to nurture loyalty?

How do we encourage social advocacy among

loyal customers?

Do we have a strong enough connection with customers

to drive innovation?


“The Truth About Customer Experience”Harvard Business Review September 2013

Routine service event• Company receives millions of calls about the product and must handle each one well• Customer, asked about the experience, never describes the call as a “product question.”

Understanding context is key• Customer might need uninterrupted service after moving, understand renewal options or fix a problem• Company that manages complete journeys would do its best with the transaction AND understand the broader reasons for the call, address root causes, and create feedback loops to continuously improve interactions upstream and downstream from the call

Organizations able to manage the entire experience reap enormous rewards Enhanced customer satisfaction, reduced churn, increased revenue, greater employee satisfaction and they discover more-effective ways to collaborate across functions and levels, delivering gains throughout.


Mobile

SocialIn Store Contact Center

Field Service

Direct Sales

Channel SalesWeb Oracle Marketing

Oracle Commerce

OracleSales

Oracle Service

Oracle CX Foundation

2: Oracle Cloud Infrastructure and Platform Services

1: Oracle Business Intelligence, Decisioning Tools and Mobile

3: Oracle MDM, Integration and BPM/SOA Tools

Oracle Social

4: Oracle Portal and Content Tools

Leader in CRM Lead Management

Leader in E-Commerce

Leader in Sales Force Automation

Leader in CRM Web Customer Service

Leader in CRM for Large Organizations

Leader in CRM Customer Service Contact Centers

Leader in CRM Suite for Customer Service Solutions

Oracle connects every engagement your customer has with your brand


Align AND DriveBlind Spot OR Sweet Spot


Where Does the Oracle BI Bridge Take You?

Deploy Prebuilt Analytics for ERP, HCM

& CRM systems that drill ‘beyond the warehouse’

into the source for taking action

Get the data you need In-Memory, in Real-Time

with Data Warehouse views

Deploy Complete Systems vs. Building & Supporting it all

yourself

Get Enterprise-wide cross functional

visibility deployed in weeks combining Front Office, Back

Office and Operations

See Big Data, Multi-

Dimensional & Unstructured data Side-by-

Side

View Historical, Real-Time and Predictive Content on the same

screen

Blend Multiple Data Sources (including On-Premise and Cloud) in the same report

Write Analysis Once & Consume

Anywhere Immediately


AQ&

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 31