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Organizational Transformation Opportunity
Glo Gordon, Vice President, Communications
Matt McFerrin, Sr. Industry Director, Oracle Communications
Initial Thought On Organizational Change
“Technological change is like an axe in the hands of a pathological
criminal.”-Albert Einstein, Really Smart Guy
AT&T Restructuring From regional to Consumer and Business LOBs
An interview with Jeff Weber , vice president of video products for AT&T
“CED: What’s AT&T’s approach to satisfying growing consumer desire for the convergence of services?
JW: We made an organizational change last year, and we’re implementing it now. Wireless and broadband and video have been brought together under Ralph de la Vega, who was in charge of wireless, and now is the CEO of the combination.
Sometimes organizational changes don’t matter. We think this one does. The change is significant. Product teams now report to one marketing manager. More conversations are now happening in the normal course of business on how to bring all this together, conversations that may not have happened before. It’s a competitive advantage for us if we continue to execute on it.”.”
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Oracle ERP Modular Applications
PROCPROC
SCMSCM
HCMHCM
CRM/CRM/MDMMDM
FIN/FIN/PROJPROJ
ATAT
• Analytics• Sourcing On Demand• Sourcing
• Demand Signal Repository
• Advanced Planning Command Center
• Service Parts Planning
• Manufacturing Operations Center
• Analytics• Incentive
Compensation• Learning
Management• iRecruitment
• Site Hub• PIM for Retail
• Projects Analytics• Federal Financials
Analytics
• UPK• Management Pack• Application
Integration
ProcurementProcurement
Supply Supply ChainChain
HumanHumanCapitalCapital
Customer &Customer &Master DataMaster DataManagementManagement
Financials Financials & Projects& Projects
ApplicationsApplicationsTechnologyTechnology
OracleOracleERPERP
SCMSCM
HCMHCM
CRM/CRM/MDMMDM
FIN/FIN/PROJPROJ
ATAT
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RetailRetailSupply ChainSupply Chain
Direct FulfilmentDirect FulfilmentSupply ChainsSupply Chains
Old World – Supply chain by business functionTactical approach, with specialized processes tied into core financials
• Retail focus vital to wireless growth
• Typically disparate from storefront systems and other customer channels (e.g. enterprise sales)
• Supply chains specific to channels - call center, self care and enterprises sales
• Typically disparate from each other and the retail supply chain.
A/CPayable
Fixed Assets
CapitalProjects
Planning
Fixed Assets
AccountPayable
CapitalProjects
GL
CoreFinancia
ls
Sto
re
Rep
len
Procurem
ent
Bill
ing
OrderMgmt
Wareh
ou
s
e
DeviceMgmt
Inventory
A/CPayable
Fixed Assets
CapitalProjects
Planning
Fixed Assets
AccountPayable
CapitalProjects
GL
CoreFinancia
ls
Sto
re
Rep
len
Procurem
ent
Bill
ing
OrderMgmt
Wareh
ou
s
e
DeviceMgmt
Inventory
Planning
Fixed Assets
AccountPayable
CapitalProjects
GL
CoreFinancia
ls
Reu
se
Mg
mt
Procure
m
ent
Ass
etTr
acki
ng
OrderMgmt
Wareh
ou
s
e
Asset
Discovery
Inventory
NetworkNetworkSupply ChainSupply Chain
• Ideally, network planning driven by Financial planning
• Network processes disparate from customer channel processes
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Oracle AIA delivers an open standards based framework for orchestrating cross-app business processes
SOA
New World : Consolidated Supply ChainExamples Of How Oracle Strategy Enables The Transformation
Fixed Assets
A/CPayable
CapitalProjects
GL
Fixed Assets
A/CPayable
Oracle EPM links management strategy to execution and applies analytics to drive enterprise-wide supply chain performance improvement.
Analytics
A Leading, global carrier is transforming business by consolidating network and retail supply chains and tying all to core financials
Oracle’s Demantra Demand Management lets you sense and respond to demand from multiple data sources
Oracle Transportation Management automates logistics for all processes, modes, and geographies
Planning
Fixed Assets
AccountPayable
CapitalProjects
GL
CoreFinancials
Reu
se
Mg
mt
Procure
ment
Ass
et
Tr
acki
ng
OrderMgmt
Wareh
ou
se
Asset
Discovery
Inventory
BT transforming to a foundational supply chain - wrapped with edge applications - in support of next generation services strategy across customer channels
DeviceMgmt
Sto
re
Rep
len
Planning
Procu
rem
ent
Inventory
OrderMgmt
Wareh
ou
se
Bill
ing
Sprint Creates BMGFrom CDMA and iDEN to Consumer and Business LOBs
Sprint Forms Standalone Business Markets Group with Singular Focus -- Business and Government Customers
“OVERLAND PARK, Kan.--(BUSINESS WIRE)--Mar. 31, 2009-- Sprint (NYSE: S) announced today the formation of a new unit dedicated solely to business and government users of communications services. Composed of more than 4,000 sales, support, marketing and operations personnel, the Sprint Business Markets Group enables a sharpened focus on the needs of enterprise, general business and public sector customers.”.”
To remain competitive, Sprint announced a number of related organizational changes focused on streamlining operations, reducing labor costs and achieving greater
efficiency.
Multi-Channel Strategy Impacting Field Channel Process - Lead to Oppty to Contract to Order
Contact Center Retail Web PartnersMobile
Financials
Customer Business IntelligenceInfrastructure
Supply Chain
Customer Foundation
Field
Oppty Mgmt
Bid Mgmt
Ordering
DealGovernance
Operational efficiencyOperational efficiency
Integrated financial Intelligence Integrated financial Intelligence improves deal governance processes improves deal governance processes
Order Management Billing
Retail/Network TransformationRetail/Network Transformation
Demand driven network planning Demand driven network planning improves deal margins improves deal margins
Enhance Service DeliveryEnhance Service Delivery
Real time provisioning dramatically improves Real time provisioning dramatically improves order process for key transactions order process for key transactions
Improve Customer ExperienceImprove Customer Experience
Master system of record improves Master system of record improves all customer business process all customer business process
BT 21CNFocused on improving processes across organization lines
An interview with Karsten Lereuth, President Global Telecom Markets, BT Global Services
“For the business world, history shows that organisations constantly adapting to the changing environment have more chance of being competitive and a better chance of assuring their futures.
In the carrier world today, survival also depends on adapting. Specifically, it means being willing to transform…”.”
As part of their transformation, BT and Oracle focused on 3 overarching business processes on Concept to Market,
Lead to Cash and Trouble To Resolve
Slide 8
…ends with
Note: The order of the steps will change in some cases, depending on the nature of the customer journey.
Manage Escalation
Keepcustomer informed
Manage exceptions and
jeopardy
Monitor Progress
Present and Change
ServiceOptions
Execute Service Options
Configure Service
Manage Escalation
Keep customer informed
Manage exceptions
and jeopardy
Monitor Progress
Manage Progress
Lead to Cash
Trouble to Resolve
Commission Customer
Solution
Implement Customer Solution
Plan Solution Tasks
Produce Solution Design
Accept Contract and Place
Order
Identify and
Propose Solution
Understand and Validate
Needs
Concept to MarketStarts with…
Trouble to Resolve – from problem identification to resolution
Lead to Cash – from contact initiation through to customer acceptance and payment made
Concept to Market – from idea to service launch or withdrawal
Manage and review portfolio
Manage in-life
Project ClosureLaunch / Beta
releaseTesting and
TrialDesign and implement
Concept Evaluation
Opportunity identification. Insight & idea
generation
Specify & Plan
Note: Whilst C2M is a critical enabler to the Customer Experience, the experience capabilities are delivered through L2C and C2M
ChooseServiceOption
Establish and
Register Customer
Identify and
Validate Customer
Open customer interaction
Manage Contact Sell Service Supply Service
Collect Events
Confirm and close
customer interaction
Manage Payment
ExceptionsReceive Payment
Produce Invoices
Obtain Payment
Monitor Usage and
Present Alerts
Monitor Service Performance and
Present Alerts
Execute Component Tests
Implement and
Commission Resolution /
Release
Execute E2E Tests
Plan Resolution /
Change
Analyse Problem Incident
ChooseServiceOption
Establish and
Register Customer
Identify and
Validate Customer
Open customer interaction
Manage Contact
Collect Events
Confirm and close
customer interaction
Manage Payment
ExceptionsReceive Payment
Produce Invoices
Obtain PaymentResolve Problem
Monitor & Assure Manage Progress
High Level Architecture - Process Blueprints
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•Improve demand visibility with inputs from multiple sources of demand: Customer, channel, order and shipment history
•Use statistical analytics to improve the forecast
Sense Demand
Analytics
at the
Core
Respond To Demand
•Align demand plan with business goals
•Enable collaborative planning process for consensus one number plan
•Monitor plan to budget against KPIs
•Automate exception process
ShapeDemand •Use new product
introductions to capture demand
•Model promotions and sales incentives to shape demand
Demand Driven Adaptive Planning
The demand driven company runs on real-time information
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MTN Functional RestructuringRevised sales, service, marketing, and strategy
As part of the increased focus on improving capacity to deliver on the business strategy, MTN South Africa has been restructured into a functional organisational design. This has resulted in revised sales and service, marketing, and strategy and business development departments being implemented. This structure has been supported by a number of senior appointments
Extended Store POS & CRM operations with Supply Chain Planning, Demantra, and Demand Signal Repository
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Retail Business Information Model
Sell-SideSell-Side
Distributors
Partners
Suppliers
Customer & Consumer InteractionCustomer & Consumer Interaction
In-SideIn-Side
• POS (Point-of-Sale)• Web stores & Catalog• Order Management• Inventory Optimization• Advertising & Promotions• Customer Service• Workforce Scheduling• Personalized Marketing
• Manufacturing/Sourcing• Sales Forecasting• Inventory Optimization• Distribution & Logistics
Effectiveness• Financial Management• Human Resources & Training• Corporate Governance
Buy-SideBuy-Side
DataDataWarehouseWarehouse
SalesKnowledge
ConsumerKnowledge
SourcingKnowledge
DemandKnowledge
InventoryKnowledge
ForecastingKnowledge
ProductKnowledge
• Strategic Sourcing• Advanced Planning &
Scheduling (Demand Driven)
• Inventory Optimization• Pricing Strategy• Cost Forecasting• Purchase Order Mgmt.• Retail Partnerships• Warehouse Mgmt.
RetailerKnowledge
MarketingKnowledge
Mfg Perf.Knowledge
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Retail Store Supply Chain Logistics
Receiving
Collaboration Workflow Integration Visibility
Store Operations
StoreOutbound
• New Orders • Shipments• Supply
Availability• Stock Counts • Serialized
Tracking• Merchandise
Requests?
• Store-to-Store Transfers
• Returns / Reverse Logistics
• Transfers• Receipts• POs/ASNs• Inbound
Cartons / LPNs
• Demand Management
Store Inbound Shipping
Store
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EBS R12+ Demand Signal Repository
• More timely data - to better sense, shape and respond to demand• More consistent data - usable across teams and applications• Reduced manual effort and cost
• POS sales• Price• Store inventory• Promotional plans• Store replen. rules• Store forecasts
Retail Store Data
Demantra
Sales & Operations Planning
Demand Management
Retail DC/ Distributor Data
OtherExternal Data
• Retail loyalty• IRI/AC Nielsen• Demographics• Causal (weather,
etc.)• RFID/EPC
• DC shipments• DC inventory• DC replenishment
rulesPredictive Trade Planning
Retail Execution
Product Lifecycle Management
Enterprise Performance Mgmt
Trade Promotion Management
SO
A-B
as
ed
In
teg
rati
on
Front Office Applications
Pre
-Bu
ilt
Inte
gra
tio
n
Demand Signal Repository
• Data sources centrally cleansed, harmonized and aggregated
• Pre-built dashboards and reports• Powerful BI capabilities • “Sense & Respond” event
management
Ca
ptu
re
Ma
na
ge
An
aly
ze
Re
sp
on
d
Inte
gra
te
Final Thought On Organizational Change
“Twenty years from now you will be more disappointed by the things you didn't do than
by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails.
Explore. Dream. Discover.”-Mark Twain, Humorist, Author, Occasional Cynic
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