Tom Anthony
Sr. Director, Product Strategy

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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of
Oracle.
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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On Wednesday, at two minutes and three seconds after 1:00 in the morning, the time and date will be:
01:02:03 04/05/06
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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• Procurement in General
• Enterprise SRM Update: 8.9, 9.0, and beyond
• Fusion Overview: A Procurement Perspective
• Activities between now and ‘08
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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Organizational Challenges
• Insufficient policy influence
• Fragmented processes
• Staff consumed by routine processing
Procurement
Organization
Increasing Savings Targets
• Same or greater % every year
• Resource constraints –
“save more with less”
• Inflation, currency fluctuation
Compliance Concerns
• Low visibility
• Contract leakage
External Pressures
• Outsourcing
• Regulatory
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

Drive 60% Higher Savings on Procurement
Investment
Performance
Indicator
Typical
Purchasing
Organization
World Class
Purchasing
Organization
Comparison Summary
FTE per $Billion of Spend
Total Cost of
Procurement
(as % of Spend)
Suppliers Per
$Billion of Spend
104
1.03%
7,805
54
0.72%
3,512
48% Less Staff
30% Lower Costs
More Buying Power
Technology
Investment per
$Billion spend
$1.1 Million $1.4 Million Better Information
Shift investment in procurement to higher-value activities
Reduce staff by swapping labor for technology
Source: Hackett Group
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

Procurement
Best Practice
• Maximize Self-Service
• Enforce approval and tendering policies
• Leverage Automated Sourcing Tools
• Control budgets via tolerance and exception notifications
• Establish and monitor spend objectives
•
Utilize Procurement Cards
Benefit
• Focus on strategic activities
• Gain visibility and control over spending
• Improve internal policy compliance
• Maximize contract spend
• Leverage supplier base
• Improve productivity
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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Payables
Best Practice
• Eliminate paper invoice (use
ERS, web-invoicing, XML/EDI)
• Enable supplier self-service
• Leverage auto-matching rules
• Enable duplicate invoice/vendor setup checking
• Limit non-PO invoices
Benefit
• Improve internal policy compliance
• Improve productivity
• Improve accuracy
• Take advantage of payment discounts
• Reduce supplier inquiries, increasing time analysts can spend on more value-added projects.
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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High
Low
Tactical Buying
Create Manual Orders
Answer Supplier Queries
Help Requesters
Manage Content
Cost Procurement
Touchless Buying
Policy Enforcement
Contract Negotiation
Spend Management
Low
Maturity
Strategic Procurement
Value Creation
Collaborative Procurement
Supply Optimization
All Categories, All Processes
High
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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automated and streamlined procurement process saved $120,000 per month with reduced payment times reduced prices by 10-30% buyers now focused on strategic activities saved 20% of spend in Food and Beverage category reduced inventory levels by 50% saved $1.5 – $2M annually, positive ROI < 3 years saved over $75M from contract consolidation increased productivity led to multi-million dollar savings
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

The Integrated Suite That Dramatically Cuts
All Supply Management Costs
Demand
Collection
Reduce Spend on Goods and Services
Spend
Analysis
Category
Management
Online
Sourcing
Supplier
Collaboration
Orders
Indirect
Goods
Services
Streamline Procurement Processes
Approval
Routing
Touchless
Buying
Automated
Payment
Supplier
Portal
Logistics
Engineered
Goods
Supplier
Network
Settlement
Direct
Materials
Budget-Based
Procurement
Contract
Management
Supplier
Performance
Enforce Policy Compliance
Profile
Management
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

Accelerate Self-service Adoption
•
3 step process simplifies requisitioning
•
Line Level Approvals
•
Mass approvals and email-based approvals
•
Redesigned pages provide more information with fewer clicks
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

Greater control and oversight
Capture More Spend,
More Efficiently
Extend Services Spend
Programs Across Globally
Improve Total Workforce
Management
•
Vendor-managed services
•
Skills matrix
•
Deliverable-based expense capture
• Multi-resource work order
• Multi-project work order
• Improved notifications
•
Global time and expense reporting
• Multiple time-based work order alerts
• Full rate sheet breakdown structure, including expenses
•
HCM Person ID integration
• Normalized terminology with HCM
• Integration to HCM
Talent Acquisition
Manager module
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

The Contract Lifecycle Management Release
Amend,
Renew, or Close-out
Exploit More Savings Opportunities
Source and Award
Contract
Convert Negotiated Savings into Real Savings
Monitor
Performance
Execute
Increase Procurement Process Effectiveness
Central Clause Library
Document Configurator
Collaborative Authoring
Online Negotiation
MS Word Integration
Approval Workflow
Agreement Management
Version Control
Contract Syndication
Now available for 8.8!
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

Extend Customer Investment
Contract Mgmt
Request for Contract
SLA Compliance
Contract and Library Upload /
Import
Misc. Customer Enhancements
Amount Only Requisitions
Shift and Assignment Support in
Services Procurement
Special Request, Favorites, and
Templates Enhancements
Greater Business Insight
Buyer Dashboard
Superior Ownership Experience
Archiving Documentation
Reopen Specific Closed
Requisitions and Purchase
Orders
XML upload for Sourcing event creation
Supplier Contract Management 8.8
"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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• Applications driven by business processes
– From implicit to explicit processes
• Business Intelligence is not an afterthought
– Good BI needs to be in the DNA of applications
• Applications that can be configured and integrated with ease
– Applications must increasingly fit in a heterogeneous environment
• Applications that are cheaper to deploy and operate
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

• Industry Relevance is a must
– We have too know and manage industry processes in minute detail
• Application customers want consolidation
• Standards always win
– At a business level (Rosettanet, HL7, SWIFT etc.)
– At a technology level (J2EE, WSI-*, XML etc.)
• Providing a full technology stack is an advantage
– Significantly reduces cost
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"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."

"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
19

"This presentation is for informational purposes only, and may not be incorporated into any contract. The development, release, and timing of any features or functionality described in this presentation remains at the sole discretion of Oracle."
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Information You Can Trust
• Single data model for single source of truth, but set for heterogeneity
• Centralized data with additional data hubs
• Embedded analytics and management reporting
• Real-time operational analysis and ability to take related actions
• Industry specific KPIs
• Open to third party data

Information You Can Use
• Industry-based configuration
• Modularized services
• Broad API / web services support
• Enhanced interoperability through standards-based, open platforms
• User experience personalization
• Standards-based extensibility
• Tailored business process flows
• BPEL Certification

Information You Can Manage
• Automated, tailored installs
• Functional components for individual upgradeability
• Minimal downtime upgrades
• Active system and business monitoring
• Self-supporting, self-tuning
• In-place education
• Packaged integration… from server technology, middleware, to applications

Role for BP/Product
Procurement VP
Procurement Mgr
Buyer / Commodity Mgr
Supplier
Key Questions Sample Metrics
Is enterprise spend increasing/decreasing
?
How much automation is the procurement dept achieving?
% of automated Pos and sources; Average
Days to Approve REQ and PO; %Reduction of Cycle Time
What tasks need my attention?
How is my quality?
How is my on-time performance? How is my ship quantity performance?
% Spend Change vs
Sales Change; % Non-
PO Spend of total spend; %
Contract/Non-Contract
Spend
Overdue POs; Reqs to be sourced; Contracts
Expiring
% Receipts Rejected;
% Late Shipments; %
Qty Received = Qty
Ordered

Other
Apps
Oracle
SOA
ALM
Legacy
Purchasing
1
Requisition
PTP
Business
Process
1
Create
Requisition
3
Employee
Directory
Get Approver
List
Approve
Legacy
Inventory
4
Availability
Check
Source
3 rd Party
Tax
6
Calculate
Tax
Create
PO
Dispatch
PO
8
Oracle
SOA
2
Catalog
Punchout
5
Availability
Check
7
Electronic
PO/ACK
Supplier
Supplier
Websites
Inventory
Management
Order
Management
Legacy PO/ALM
9
Synch PO
Data
Receive
ASN
Logistics
Create
Invoice
10
Invoice
Billing

Procurement
• XML Publisher (including eText)
• Reduced number of batch processes
• Improved Blanket Orders
• Contract Budget Checking
• Retainage
• Streamlined change requests
• Transparent punch out
• Payment terms negotiation
• Sourcing Line Grouping

Procurement
• Graphical Hierarchies (Trees)
• Shared reference data (Setid)
• Streamlined Internal Orders
• Landed Cost
• Line Level Approvals
• Encumbrance Accounting
• Notes and Attachments
• Improved Auto-sourcing Logic
• Improved Sourcing Optimization
• Sourcing Project Management
• Word and Excel Integration

Why You Will be Successful…
•
Best in class intellectual property from
PeopleSoft, Oracle, and JD Edwards
•
Unparalleled level of investment, including applications and server technology divisions
•
History of successful migration across technologies

Next
Release
Current
Release
PeopleSoft Enterprise 8.8
8.9
9
JD Edwards EnterpriseOne 8.11
8.12
Oracle E-Business Suite 11 i .10
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• Ask “how do you”, “has anyone else”, …
• Take advantage of “lessons learned”
• Influence direction of Enterprise SRM
• Influence direction of Fusion

• What is it?
– Online functional usage questions
• Why participate?
– Provides a source of guidance and input into
Fusion process
• Where do I find them?
– http://www.iouc.org/index.php?mo=st&op=ld&sid
=s1_005_fusion&stpg=57

• What is it?
– Scripts that provide insight into the usage and customization profile of your PeopleSoft system for Oracle’s analysis
• Why participate?
– Provides one source of guidance and input into Fusion process
• Where do I find them?
– http://www.peoplesoft.com/corp/en/support/user_groups/index.jsp
Login to Customer Connection
Click on Support
Click on User Group
Look under other resources on the right hand side and you will find "SQR Script File and Instructions for Enterprise Customers”
• What have you found so far?

• 57 purchasing customers in database
• Industry breakdown for those customers
– Education and Research - 27
– Financial Services - 6
– Communications - 3
– Public Sector - 7
– Health Care - 4
– Life Sciences - 1
– Industrial Manufacturing - 2
– High Technology - 2
– Media and Entertainment - 1
– Professional Services - 1
– Consumer Products – 1
– Blank - 1

Key Volume Fact Feature Correlated
ObjectName
Purchase Order Price
Adjustments
Requisitions that average at least 3 schedules per line
PO_VAL_ADJ where number of rows > number of
PO_LINE_SHIP rows
REQ_LINE_SHIP /
REQ_LINE > 2
PO_LN_DISTRIB /
PO_LINE_SHIP > 2
Purchase orders that average at least 2 distributions per schedule
PO Approval
Workflow
PO_APPROVAL_ WL
Requisition Approval
Workflow
REQ_APPROVAL_WL
Customer
Usage %
22 (38%)
0
0
19 out of 57
(33%)
15 (26%)
Customers typically have one requisition schedule per line
Customers typically have one PO distribution per schedule
Between 10,000 and
165,000
Between 450 and
550,000

Q&A