Demand to Deliver - Value Chain Innovation Oracle High Tech Summit, May 10 th, 2011 Jon S. Chorley Vice President, Supply Chain Applications

Meeting the Challenges in Supply Chain 76% of Companies do not have comprehensive flow of information across their Supply Chain Spreadsheets still dominate 1 in 3 companies find that Information flow is slower than production flow 88% have been unable to respond to demand peaks 1 in 2 report fragmented information has resulted in missed sales opportunities 87% believe that they can reduce inventory by 22% or more if they understood risks in their multi-tiered supply chains Dynamic Markets Survey

ROI Maximized by Improving Value Chain Performance From Inside-Out (Supply-side) to Outside-In (Demand-Driven) Best PracticeLaggardAverage Operating Performance High Low Medium Adoption Transformational “Internal / Past Focus” “External / Future Focus” Financials ERP Supply Chain Planning Multi-Enterprise Orchestration Managed Innovation Innovation of product and processes is the best long term differentiator Aligning the extended value chain is required, not just optimizing the parts Predicting future outcomes is more important that reporting on the past Demand Driven Sharp Change in ROI through moving to an Outside-In focus

Copyright © 2010, Oracle and/or its affiliates. All rights reserved. “We are experiencing significant swings in demand--complicating demand and supply planning and visibility across the value chain” TODAY’S REALITY Demand Volatility and Uncertainty

Predict & Shape Demand Demand-driven leaders outperform the competition Oracle’s Approach: Sense demand closer to the point of consumption Improve forecast accuracy Simulate to predict impact of risk Shape demand with optimized promotions and effective New Product Introduction Oracle’s Approach: Sense demand closer to the point of consumption Improve forecast accuracy Simulate to predict impact of risk Shape demand with optimized promotions and effective New Product Introduction Key Oracle Innovations: Demantra Demand Management Predictive Trade Planning Demand Signal Repository Key Oracle Innovations: Demantra Demand Management Predictive Trade Planning Demand Signal Repository Source: PRTM 2010 Sources: PRTM 2010 Global Supply Chain Trends Top 4 Supply Chain Challenges “Supply Chain Volatility and Uncertainty Have Permanently Increased” 74% 33% 31% 30% Demand volatility / poor forecast accuracy Lack of visibility to current market demand Increasingly demanding customers Lack of integration between SCM and Prod. Dev

TODAY’S REALITY “We are always very slow to react to change, instead of being able to anticipate and respond quickly.” Supply Chain Complexity

Adapt to a Dynamic Environment Respond quickly to supply chain events Oracle’s Approach: Manage global collaboration & visibility Sense & respond to events Rapidly simulate and evaluate alternate plans Implement process changes quickly Oracle’s Approach: Manage global collaboration & visibility Sense & respond to events Rapidly simulate and evaluate alternate plans Implement process changes quickly Source: PRTM 2008 Key Oracle Innovations: Rapid Planning Integrated Logistics (inc. WMS, TMS, Fleet and GTM) Fusion Distributed Order Orchestration* Key Oracle Innovations: Rapid Planning Integrated Logistics (inc. WMS, TMS, Fleet and GTM) Fusion Distributed Order Orchestration* COO Agenda For 2010: Top 4 Priorities 14.1% 9.0% 8.8% Increase Supply Chain Flexibility Improve delivery performance (On-time in full) Accelerate globalization of supply chain Reduce order fulfillment lead time

Copyright © 2010, Oracle and/or its affiliates. All rights reserved. “How can I innovate faster than my competition with my products and supply chains getting more and more complex?” TODAY’S REALITY Accelerating Cost-effective Innovation

Accelerate Profitable Innovation Reduce Time to Market, Minimize Costs and Risk Oracle’s Approach: Shrink time-to-market, mitigate risk Understand customer needs Design for Supply, Manufacturing, Cost, Compliance Drive design collaboration Manage New Product Introductions and changes Oracle’s Approach: Shrink time-to-market, mitigate risk Understand customer needs Design for Supply, Manufacturing, Cost, Compliance Drive design collaboration Manage New Product Introductions and changes Source: Aberdeen Group Top Drivers For PLM Key Oracle Innovations: Comprehensive Product Value Chain approach to PLM Customer Needs Management Key Oracle Innovations: Comprehensive Product Value Chain approach to PLM Customer Needs Management 49% 43% 34% 31% Demand For Shorter Product Lifecycles Globalization of Markets / Supply Chains Design complexity or distributed design environment More complex products

Copyright © 2010, Oracle and/or its affiliates. All rights reserved. TODAY’S REALITY Alignment between Demand, Supply, Product “We constantly struggle with multiple disparate, departmental data sources and a lack of a holistic planning process. This is negatively affecting our competiveness and profitability.”

Align Supply Chain with Goals Link LOB’s, Operating and Financial Plans for Better Performance Oracle’s Approach: Common view of financial and operational plans Collaborate in real-time across LOBs Respond efficiently to changes Make operationally realizable budgets Improve revenue forecast accuracy Oracle’s Approach: Common view of financial and operational plans Collaborate in real-time across LOBs Respond efficiently to changes Make operationally realizable budgets Improve revenue forecast accuracy Key Oracle Innovations: Real-Time Sales &Operations Planning Integrated Business Planning Advanced Planning Command Center Key Oracle Innovations: Real-Time Sales &Operations Planning Integrated Business Planning Advanced Planning Command Center Best-in-ClassAverageLaggards Companies That Excel At S&OP Outperform Their Competition Source: Aberdeen Group

TrendsTrends Demand volatility Supply Chain Complexity Time-to-Market, Product costs & risks StrategiesStrategies Enterprise profitability & performance Better predict demand Value Chain Performance Managing for Change & Innovation Build adaptive supply chains Accelerate profitable innovation Align operations with goals

Darker = Better Only Oracle delivers a comprehensive, state-of-the-art DDSN solution * AMR Research Ranked solutions on ability to address DDSN Requirements * In every area, Oracle out-performs SAP Stage 1 – Reacting Stage 2 – Anticipating Stage 3 – Collaborating Stage 4 – Orchestrating

How Oracle SCM Delivers Complete, Best-in-Class, Modular, Integrated Predict Market Requirements Demand Management Value Chain Planning Adapt To Dynamic Environment Rapid Planning Transportation Management & GTM Fusion Distributed Order Orchestration* Innovate Products & Processes Product Lifecycle Management Product Data Management Enterprise Visualization Align Across Value Chain Sales & Operations Planning / IBP APCC & Embedded BI/Analytics Fusion Middleware AIA Information-Driven Value Chain