The Adaptive, Intelligent Supply ChainOracle’s Digital Supply Chain Cloud for the Digital Age

Jon S. ChorleyCSO & GVP, SCM Product StrategyOracle

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.

Top Trends in Manufacturing & Supply Chain

• 1. Supply Chain DX: By 2019, 50% of manufacturing supply chains will have benefited from digital transformation with the remainder held back by outdated business models or functional structures.

• 2.Cognitive/AI: In 2020, 50% of mature supply chains will use cognitive computing/AI and advanced analytics for deployment-based planning and to eliminate sole reliance on short-term demand forecasts.

• 3.B2B Commerce: By the end of 2018, 90% of manufacturing supply chains will use B2B commerce networks as the dominant collaboration tool for demand, supply, service and new product development.

• 5.Consumer Direct: In 2020, 50% of all manufacturing supply chains will have the capability, either in-house or outsourced, to enable direct-to-consumption and home delivery. Source: IDC Futurescape: Worldwide Manufacturing Supply Chain

Predictions for 2017,

new and constantly evolving Business Models

supported and driven by

new and constantly evolving Technology

and 2020 is just three years away

Top Goals• Drive business process

improvement

• Reduce costs and improve asset efficiency

• Leveraging supply chain to drive growth

• Faster process innovation

• Improved customer service

Top Impediments• Inability to orchestrate end-to-end

processes

• Forecast accuracy and demand visibility

• Lack of cross-functional collaboration

• Supply chain complexity

• Poor visibility across supply chain

What are Top Supply Chain Goals & Impediments?

Source: Gartner Supply Chain Survey 2015/2016

Top Supply Chain Priorities

1. Improve Business Processes

2. Reduce Costs/Improve Efficiency

3. Drive Growth

4. Increase Innovation

5. Improve Customer Experience

these are not Choices, they are a PathSource: Gartner Supply Chain Survey 2015/2016

... and Cloud is the

natural choice for the new Digital Supply Chain

$52 billion

$133 billion

2013

2020

SaaS Market

Reduce your Current Costs or Create a Platform for Change?

INNOVATE AT THE EDGE(Tactical Addition)

COMPLETETRANSFORMATION(Strategic Change)

CONSOLIDATION & HOSTING(No Change)

DIVISIONAL MODERNIZATION(Tactical Change)

Ability to Change

(Leadership, Personality,

Regulations, …)

Pressure to Change(Internal: Restructuring, Acquisitions, Burning platform, Loss of skills, …

External: Digital disruption, Competitive pressures, New business models, ….)

Higher Risk/Effort but Higher Reward

Quicker win, but not Strategic

Buy time

Strategic Shift

The Cost of not Changing …

• Failing is not new:–Only 12% 1955 Fortune 500 companies were still on the list in 2014

• But failing is getting easier:–50 years ago the life expectancy of a Fortune 500 company was 50

years, now it’s 15 and getting smaller all the time

• Why?:–As technology change accelerates, so does business change – and this

has the biggest impacts on supply chains

• Conclusion:–Change or become irrelevant

Source: Forbes & AEI

leverage innovative processesand technology advancements

to transform your supply chain

Oracle SCM Cloud

People

Comprehensive Suite

supporting broad best practice

SCM business flows

Plan to Produce

Idea to Commercialization

Source to Settle

Order to Cash

BroaderFast, Modular Implementation

Configurable & Extensible

Automated Upgrades

Platform

Faster

User Experience

EmbeddedAnalytics

Rules & Workflows

Exceptional

User Experience

Digital by Design

Better

ConsistentData

Guiding Principles

Oracle SCM CloudArchitected for the Digital World

Modern User Experience

Architectural Flexibility

Best Practice Processes

Full Lifecycle, Integrated PLM

Integrated Logistics

Omni-Channel Order to Cash

Modern, Flexible Manufacturing

Next Generation Planning

Global Trade Management

Transportation Management

Warehouse Management

Orchestration

Extensibility

Services

+

+

Oracle SCM CloudComprehensive, Digital, Built-for-the-Cloud

Plan-to-Produce

Order-to-Cash

Source-to-Settle

Ideate to Commercialize

OptimizeMakePlan

Planning Central Manufacturing Inventory & CostingSupply Chain Orchestration

CommercializeDevelopInnovate

Innovation Management Project Management Product Development Product Hub

SettlePurchaseContractSource

Sourcing & ContractsSupplier Qualification

ManagementPurchasing

Self-Service & Supplier Portal

Payables

Unified PLM solution for Ideas to Commercialization on common MDM Platform

Best in Class Breadth and Depth with ERP Integration and Flexible Deployment Options

Comprehensive built-in Capabilities on Omni-Channel Orchestration Architecture

Integrated demand & Supply Planning, Orchestration-driven Manufacturing

Deliver & BillOrchestratePromiseCapture

Order Management

Configurator & Pricing

Global Order Promising

Inventory & Shipping

Transportation & Receivables

Oracle SCM CloudConnecting the Digital Thread across the entire Supply Chain

Voice of the ProductVoice of the

CustomerVoice of the

Factory

Service & Depot

(Service & Depot Repair )

Engineering& Design

(PD/PDH/ Ideation)

Real World Field Use

IoT-Enabled

Shipping & Logistics

(WMS/OTM/GTM)

Voice of the Digital Twin

Voice of the Customer

Materials Planning

(SCM/ IBP)

CX, CPQ & Order Mgmt

(CX/CPQ/ OM/GOP)

Facebook / Twitter

Prototype & Manufacture

(ERP/SCM/ MES)

Design to Deliver

Design to Deliver

Genealogy & & Event

Management

Alerts & Advanced Analytics

Costing/Financial Planning &

Performance

Oracle SCM Cloud A Constantly Innovating Platform for the Digital Supply Chain

Supply Chain Collaboration Enterprise Quality

BROADER

Maintenance Management Quote to Cash with CPQ

Sales & Operations Planning Demand Management

DEEPER

Genealogy & Installed BaseSupply Planning

Infolet Navigation

BETTER

Shopping Cart Experience Mobile PLM IdeationCredit Card / Credit Check

leverage innovative processesand technology advancements

to transform your supply chain and

deliver simplicity and

adaptive intelligence

Five Dimensions of Visibility in the Digital Supply Chain

Market Visibility

Partner Visibility

Enterprise Visibility

Asset Visibility

Social Visibility

Demand Signal Management

Trading Partner Collaboration

Supply Chain Planning

Production & Asset Monitoring

Supply Chain Risk Management

Detect Analyze

IoT Device Signals

Syndicated Data

Social Sharing / News Feeds

Web APIs

B2B Transactions

External Data Sources

Supply Chain Planning

OrderManagement

Manufacturing& Maintenance

PLM& Quality

Procurement

Logistics

Act

Oracle SCM Cloud

The Evolution of Supply Chain Control Tower Capabilities

Detect Analyze

Oracle Cloud Technologies

BrandedData

Providers

Social/WebData

Sources

IoTDevices

& Sensors

EnterpriseApplications

Oracle SCM Cloud

MarketChanges

PartnerActivities

BusinessEvents

SupplyChainEvents

SocialAnalytics

Trading Partner

Networks

IoT Cloud

Data Cloud

Social Cloud

Integration Cloud

Messaging / Portal

Act

Oracle SCM Cloud

Insights

Disruptions

Issues

Ideas

Options

Risks

Supply Chain Planning

OrderManagement

Manufacturing& Maintenance

PLM& Quality

Procurement

Logistics

Oracle Internet of Things Applications

Detect Analyze

Oracle IoT Cloud Applications

Production Monitoring

Fleet Monitoring

Asset Monitoring

Monitor assets, utilization, availability and status from connected sensors

Monitor equipment to assess and predict manufacturing issues

Monitor position, route and status of service, delivery and passenger vehicles

MarketChanges

PartnerActivities

BusinessEvents

AssetEvents

SocialActivity

IoT Cloud

Data Cloud

Social Cloud

Integration Cloud

Messaging / Portal

Act

Oracle SCM Cloud

Supply Chain Planning

OrderManagement

Manufacturing& Maintenance

PLM& Quality

Procurement

Logistics

Trading Partner Collaboration – SCM Cloud Portfolio

Detect Analyze Act

Trading Partner Collaboration

SCCCloud

SupplierPortalCloud

ProductPortalCloud

Capture and approve supplier items and updates

Negotiate order forecast commitments and monitor contract manufacturing status

Manage the procureto pay process and monitor inbound logistics

MarketChanges

PartnerActivities

BusinessEvents

AssetEvents

SocialActivity

IoT Cloud

Data Cloud

Social Cloud

Integration Cloud

Messaging / Portal

Oracle SCM Cloud

Supply Chain Planning

OrderManagement

Manufacturing& Maintenance

PLM& Quality

Procurement

Logistics

Detect

Market, Enterprise & Social Visibility

DemandSignal Mgmt

Supply Chain Risk Mgmt

SupplyChain

Planning

Analyze

Oracle Cloud Technologies

BrandedData

Providers

Social/WebData

Sources

IoTDevices

& Sensors

EnterpriseApplications

MarketChanges

PartnerActivities

BusinessEvents

AssetEvents

SocialActivity

IoT Cloud

Data Cloud

Social Cloud

Integration Cloud

Messaging / Portal

Trading Partner

Networks

Act

Oracle SCM Cloud

Supply Chain Planning

OrderManagement

Manufacturing& Maintenance

PLM& Quality

Procurement

Logistics

Insights

Disruptions

Issues

Ideas

Options

Risks

Oracle Adaptive, Intelligent Apps?A Powerful New Category of Decision

Science and Data-Driven Cloud Apps

built on Oracle’s Data as a Service

Cloud and leveraging advanced

technology through a business user friendly interface.

COMING SOON! Adaptive Intelligent Apps turn big data into better decisions

Detect Analyze

Adaptive Intelligent Apps

PlanningSegment

Optimization

TransportationPlanning &

Bidding

SmartManu-

facturing

Analyze big data to uncover patterns and optimize decisions

Analyze big data to identify planning segments with similar behavior

Select the best carrier for the route, time and load, at the best price

MarketChanges

PartnerActivities

BusinessEvents

AssetEvents

SocialActivity

IoT Cloud

Data Cloud

Social Cloud

Integration Cloud

Messaging / Portal

Act

Oracle SCM Cloud

Supply Chain Planning

OrderManagement

Manufacturing& Maintenance

PLM& Quality

Procurement

Logistics

Internet of Things Applications Cloud

John Smith

Social

Customer

Sentiment Analysis

Discover customer sentiments about your products from User Forums, Twitter, Facebook, Social Blogs etc.

Factory Product

Current Status

Predictions & AnalysisProduct Returns

Analyze reasons and trends in Product returns from your Customers and warranty cost impact.

Remote Monitoring

Get real-time feedback and monitor your products deployed at customer sites and predict critical service request alerts.

Historical Performance

Access insights into historical performance of your products at customer sites and discover opportunity for new service offerings to your customers.

Welcome to IoT Applications Cloud!

Access real-time information about manpower, machines, materials, methods and management of shopfloor work orders and batches.

Access production quality, yield, cycle time, unscheduled machine downtime predictions and historical insights, genealogy and statistical quality analysis of products.

The Digital World Demands a new Digital Supply Chain …

Modern Applications + Cloud is the means …

Oracle SCM Cloud is the way.

… and over 1300 of your peers are already on that journey

SCM Cloud Adoption

Strategic, Phased Enterprise Deployment

Greenfield Full ERP/SCM

Full solution for future

Consolidate (and replace SAP)

New platform for new Division

Divisional Deployment

Additional Industries

For more information on the Adaptive, Intelligent Supply Chain:

cloud.oracle.com/scm