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Timothy Hughes – Business Development Director – VCP - EMEA
Sean Monahan – Senior Director, Oracle Insight Global ScalabilityThursday 5th March 2009
The Value of the Oracle Demantra Benefit AnalyzerTool (BAT) for EMEA Sales, Specialty Sales & Pre-Sales
2Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Agenda
• What is a Benefit Analysis Tool (BAT)?– Business Case Capabilities
• How to use the BAT
• BAT Process
• Value Chain Planning (VCP) – Business Drivers– VCP – Best in Class Vs Laggards
• Case Study – Volvo Penta
• Final Thoughts– Criticality of the Business Case Showing a Quick ROI in a Down Turn
– Other Ideas on Getting the Total Project Cost Down
• Next Steps
• Questions and Answers
3Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
The Oracle Insight Benefit Analyzer Tools (BAT’s) Will Help You and Your Sales Teams to, …
• Qualify Target Companies Better and Faster
• Accelerate Your Sales Cycles
• Grow (or Hold) Your Deal Sizes
• Minimize Your Price Discounting
• Increase Your Win Rates
4Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
How to Access the 12 Oracle Insight BenefitAnalyzer Tools (BAT’s) & the CPT
Over 5,700 cases
in CY2008 alone!
http://insight.oraclecorp.com,then select BAT & CPT Quick Links
(top upper-right-hand side)
Direct Links (For Bookmarking):
BAT: http://tools-insight.oraclecorp.com/bat
CPT: http://tools-insight.oraclecorp.com/cpt
Available BAT’s (12):
•Business Intelligence
•Customer Relationship Mgmt
•Financial Mgmt
•Human Capital Mgmt
•Master Data Mgmt
•On Demand
•Oracle Demantra
•Oracle Process Manufacturing
•Oracle Transportation Mgmt
•Procurement
•Product Lifecycle Mgmt
•RGBU
5Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
The Benefit Analyzer Tool (BAT): Value Information and Business Case Capabilities
• What is it?– Web-enabled solution pillar and module
specific value calculator– Reference tool for value messaging at any
stage of the deal
– Available for 12 areas today• Most effective for:
– Demand Generation– Quick ROI estimate (budgeting)– Full collaborative business case
• Success metrics:– 5,700+ uses since Jan ’08– 2,000+ users globally– Usage by SC, Specialty Sales, OD, ASM,
IBU, Insight and others• Field feedback:
– “Great encyclopedia of value info”– “Very credible and efficient with customer”
6Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
How the Sales & Sales Support Field Uses the Oracle Insight Benefit Analyser Tools (BATs)
• With Upsell Customers and Prospective Customers
– Demand generation, for example, Forensic Accounting
– Preliminary benefit analysis
– Proving our Supply Chain Credentials
– Full-scale return-on-investment (ROI) analysis
• Industry Best Practice Metrics and Bench Marking
• ROI Tied to Oracle Solution
• Transformation Plan
– Partners Willing to Commit to Payment on Benefit
• Work with Partner and Oracle Finance to Smooth Payment Profile to Benefit Realisation Model.
• Even When No ROI Has Been Requested
– Discovery-question preparation – Link Benefit to a $Value
– Justifying Scope Increase
– Show value of implementing software licenses already purchased or implementing upgrade
7Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Each BAT allows the customer/prospect to assess the value of the chosen application in collaboration with the Oracle team, based on market-proven value levers, independent third-party benchmarks and Oracle application benefits, while easily and quickly generating the corresponding business case/ROI along with the supporting presentation materials.
• Step 1: Preparation (typically 1-2 hours)
• Step 2: Information Discovery (typically 2-4 hours)
• Step 3: Benefit Validation (typically 4-6 hours)
• Step 4: ROI and Final Presentation Validationwith Champion (typically 4-6 hours)
• Step 5: Final Presentation to Board and C-LevelExecutives (typically 1-3 hours)
Total Typical Customer/Prospect Investment: 12-25 hours
The Value of Oracle TransportationManagement (OTM) for McCain Foods
Friday, 15 February 2008
BATs’ Value and Process for Customers/Prospects
8Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
<Insert Picture Here>
Value Chain Planning (VCP)Best in Class vs Laggards
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Potential ROI - Example
Reduce Days on
Hand
Increase Fill Rate
Increase Direct Ships
Reduce Waste
Reduce Finance Charges
I tem # ABC Company XYZ Companya Quarterly cost of sales £715,250,000 £247,500,000b % of sales that are not direct ship 50% 50%c Days of inventory currently carried 262 367d Target days of inventory 261 366e Annually non direct ship cost of sales £1,430,500,000 £495,000,000f 1 day of inventory £3,919,178 £1,356,164g $ carried £1,026,824,658 £497,712,329h Projected $ Inventory Carried £1,022,905,479 £496,356,164
INVENTORY REDUCTION £3,919,178 £1,356,164
h Current fill rate 95% 95%I Target increase in fill rate 1% 1%j Target % of recovered sales 10% 10%k Annual Sales 9762000000 3280000000l $/point fill rate £10,275,789,474 £3,452,631,579
REVENUE INCREASE £10,275,789 £3,452,632
m Projected $ Inventory Carried £1,022,905,479 £496,356,164n Target increase in direct shipments 1.0% 1.0%o INVENTORY REDUCTION £10,229,055 £4,963,562
q Obsolete Inventory 1000000 1000000r Target reduction in obsolete inventory 60% 60%
INVENTORY REDUCTION £600,000 £600,000
s Monthly finance charge to hard commit inventory £200,000 £200,000t Target reduction 10% 10%
REDUCE FINANCE CHARGES £20,000 £20,000
14,148,233$ 6,319,726$ 620,000$ 620,000$
10,275,789$ 3,452,632$
4
5
TOTAL 1st Year Cost SavingsTOTAL 1st Year Revenue Increase
TOTAL One Time Inventory Reduction
Assumptions1
2
3
10Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
S&OP – What Value?
ChallengeChallenge S&OP Impact S&OP Impact DriversDrivers
Improved revenue and profit growthImproved revenue and profit growthReduce price protection claims by 40%Reduce price protection claims by 40%
Increase Increase Promotion Promotion
Effectiveness Effectiveness
Target promotions to local Target promotions to local demographics, predict demographics, predict sales volume increasessales volume increases
Drive Top-Line Drive Top-Line RevenueRevenue
Customer Collaboration Customer Collaboration Initiatives, VMI, Improve Initiatives, VMI, Improve forecast accuracyforecast accuracy
Improve Improve Customer Customer
ServiceService
Improve service levels and Improve service levels and reduce inventory, logistics reduce inventory, logistics costscosts
Reduce Inventory up to 8%Reduce Inventory up to 8%Reduce logistics cost up to 65%Reduce logistics cost up to 65%Reduce returns up to 25%Reduce returns up to 25%
Enable Enable Sales & OpsSales & Ops
PlanningPlanning
Balance Supply & Demand, Balance Supply & Demand, Operate to a single planOperate to a single plan
Consensus demand statement cutting Consensus demand statement cutting across organizational boundaries, across organizational boundaries, shaping demand to supply constraintsshaping demand to supply constraints
Reduce Stock-outs up to 15%Reduce Stock-outs up to 15%Increase order fill rates up to 40%Increase order fill rates up to 40%Increase forecast accuracy by 45%Increase forecast accuracy by 45%
11Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Demand Driven Leaders Are Efficient…
• 15% less inventory
• 17% stronger order fulfillment
• 35% shorter cash-to-cash cycle times
….And Outperform Their Competitors:Increased gross marginHigher customer retention
Demand-Oriented Value Chains Deliver Superior Performance
Best-in-Class Average Laggards
Sources: AMR Research 2005-2007; Aberdeen Group 2006-2008; Oracle Insight
Best in class vs. Laggards
12Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Volvo Penta Oracle Confidential and Internal Use OnlyCOMPANY OVERVIEW
• Volvo Penta supplies Marine engines produces in Sweden, China and the US to global commercial and leisure market
• Volvo Group has got a SAP strategyBusiness Objectives:
•Shorten lead time, increase product availability, improve cash flow.•Implementation of a global, integrated and optimised supply chain process based on a standard software solution
Related Business Strategy:•Create a new and globally centralised planning function •Automate business processes as much as possible.•Growth objectives•Cost and capital efficiency•Customer satisfaction
THE DEAL• Date Won: May 2008
• Oracle Solution – Sales and Operations Planning (S&OP).• $1.0 Million• Customer came to us in April and said they want a smaller
scope to the project and to make this commitment in June.• Business Case enabled us to hold the deal value Vs the proven
business case. We showed that if they delayed the project it will cost them more.
ORACLE SALES TEAM PERSPECTIVE
“The CIO and project team are hard-line negotiators that operate in an industry that is known for low margins. The attitude of management is, ‘every Krona saved goes directly to the bottom line which gives the company additional money to spend on our manufacturing operations.’ … The Demantra Business Case helped us hold our pricing with Volvo Penta’s executive management. After Volvo told us that they would slip the decision to June we were able to show them that the delay would cost them 450K Swedish Krona each month they delayed. The cheaper situation was to buy the software. All of my selling situations from now on will use a Business Case.”
Ernst Stegwee, Oracle ASM
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Final Thoughts
• Given current economic downturn and customer/prospect requirements, we are seeing at least two buying processes on every deal:
– Business Case / Capital Expenditure (Capex) and Opex Process
–Software Evaluation Process
BAT’s can help you (proactively) deliver the Business Case–Keeping the Deal Size Up
–Limiting Cancelled or Delayed Projects – Compelling Reason
–Provides a Discussion Ground for Up and Cross Sell
–BUT – Keep your Powder Dry This is Wasted Below C-Level!
In the Current Economic Climate –
It Is Usual to Show a
Demonstrable ROI of 12 - 24 Months
14Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Accelerators• Provide the foundation to
packaged solutions
• Package the right flows with the right bundle of applications for midsized organizations
• Partners extend Business Accelerators to create industry and region-specific application configuration packages
EducationAudio
Business Flow Models & Video’s
Reports &Templates
How ToGuides
Test Scripts
Setup Tools
Speed to Value - Business Accelerators
•Reduce the cost of the Implementation
•Speed to Benefit – Quick Win
15Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Where Do we Go From Here?
• Sean Monahan and the VCP Team to – Offer Training over the web
– ‘Hand-hold’ you on your FY09 Q4 ROI Outcomes
– (Even if the customer is paying an SI to do the ROI, we can still assit both the prospect and SI.)
– Support can be ‘over the web’ or ‘onsite’ through the EMEA VCP team.
Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
For existing and new Edge opportunities
Add the Co-Prime Rep to the Sales Team
Add the relevant product as a Product Line
Final Request
17Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Klaus MehrGermany, CH &
Nordics
Roger Turner- VPVCP EMEA
Glen CampbellSenior Sales Consultant
VCP EMEA
Vikram SinglaSenior Sales Consultant
VCP EMEA
Joachim SchulteSenior Sales Consultant
VCP EMEA
Andy RobertsonUK, Ireland, Israel &
Benelux
RecruitingItaly, Spain, Portugal &
France
Tamer FaroukVCP / OTM / PLM
MEA
Timothy HughesBus Dev Director
VCP EMEA
RecruitingVCP / PLM
CIS
Correct as of 19th January 2009
Cyril LacroixSenior Sales Consultant
TPM EMEA
Janos JaholaVCP / PLM
EE
Marcin PodwojskiSenior Sales Consultant
VCP / PLM EE
Sharon EliasiSenior Sales Consultant
VCP EMEA
Value Chain Planning (VCP) Organisation Chart
18Copyright ©2009 Oracle. All rights reserved.Oracle Internal Confidential and Proprietary.
Contacts
Name Role & Expertise Email
Timothy HughesBus Dev Dir Value Chain Planning (VCP), EMEA
Timothy.Hughes@oracle.com
Sean MonahanSenior Director, Oracle Insight Global Scalability & IBU
sean.monahan@oracle.com
For Oracle Demantra Benefit Analyser Tool (BAT)
Training, Assistance and Deal Support – Anytime!
AQ&
Questions
Questions
Finish
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