ERP Overview Implementation Methodology Oracle’s EBS R12 – Sarvesh Srivastava TCS Limited

Agenda ERP – Overview Architecture Functionality Methodology Oracle EBS R12 *

Enterprise Resource Planning Do we need it…

Modern Businesses Q Shared Interactive & Inter-related Info Base. Production Planning Q Business Analysis Business Plan Order Booking Production Purchase Shipping Design Fixed Assets Inventory Accounts Receivable General Ledger Accounts Payable Costing Receiving Inventory Shared Interactive & Inter-related Info Base.

Demands on the Industry… Aggressive cost control initiatives Need to analyze costs / revenues on a product or customer basis Flexibility to respond to changing business requirements More informed management decision making Changes in ways of doing business

Evolution of Business System ERP II ERP 2000 MRPII 1990 MRP 1980 Inventory Control Safety Stock EOQ Reorder Point Technique Manual Control MRP Bill of Material Processor End Item Demand Netting & Batching Time phasing Custom S/w Batch Processing MRP - II Shop Floor Capacity Master Production Schedule Distribution System Product Costing Closed Loop MRP On-Line Transaction Processing Packaged S/W Enterprise Resource Planning (ERP) Integration of entire Enterprise Activities Engineering, Finance, Human Resources, Assets, Project Accounting Best Practices in Industry Complete Packaged Solution Inventory Control 1970 1960

ERP utilizes ERP software applications to improve Definition of ERP ERP utilizes ERP software applications to improve the performance of organizations resource planning, management control and operational control. While the primary goal of ERP is to improve and streamline internal business processes, CRM attempts to enhance the relationship with customers and SCM aims to facilitate the collaboration between the organization, its suppliers, the manufacturers, the distributors and the partners.

What does ERP do? Facilitates Company-wide integrated Information Systems covering all functional areas. Performs core Corporate activities and increases customer service augmenting Corporate Image.

Basic Five Reasons for Having ERP Integrate Financial Information Integrate customer order information Standardize and speed up manufacturing processes Reduce inventory Standardize HR information

Stakeholders in an ERP project Product Knowledge, Best Business Practices Technology, Products, Updates, Tools Consultants Vendors Sponsor Product Knowledge, Process Knowledge, Implementation Methodology, Tools Usage Enterprise Vision & Goal, Process & Workflow Knowledge, Infrastructure System Integrator End Users Project Co-ordination, Resolution of strategic issues, Knowledge in Technology, Systems Knowledge Implementers

ERP II – Leap towards future ERP II is the iteration that adopts ERP to the Internet- based world of today, and tomorrow, through changes in functionality, Technology and architecture Functionality - Deeper and more specific to industry domain requirement. Technology - To Leverage the Internet for both inter-enterprise connectivity and unification of the end users experience. Architecture - Allow easier integration & interoperability. Introduction: What ERP II Is, and What It Is Not  According to the “natural selection” and “survival of the fittest” theories of evolution in the natural world, things that do not adapt to changes in their environments do not survive. The same is true of the evolution of ERP. ERP II is the iteration that adapts ERP to the Internet-based world of today, and tomorrow, through changes in functionality, technology and architecture. Functionality changes to become deeper and more specific to industry domain requirements. Technology evolves to leverage the Internet for both enterprise connectivity and a unification of the end-user experience. Architecture changes to allow for easier integration and interoperability. These changes will also cause vendors and user enterprises to evolve: Vendors will focus more specifically on domain requirements, providing feature-rich applications that emphasize complete process integration. Enterprises, freed from the monolithic architectures of ERP, will create ERP II deployment strategies that best fit enterprise needs — without relying on a single vendor to deliver all application components. Misconception 1: ERP II implies a single vendor solution. The scope of functionality required is more than any single vendor can provide, given the requirement for both domain specificity and the enablement of all enterprise-centric commerce processes. Misconception 2: ERP II and best-of-breed application approaches are mutually exclusive. For the reasons stated above, the deployment decision does not boil down to simple choice between purely single-vendor vs. best-of-breed approaches. Instead, the decision concerns the degree of single-vendor-centricity that is appropriate for the enterprise. Misconception 3: ERP users executing a c-commerce strategy are not required to migrate to ERP II. All c-commerce efforts will rely on a robust, integrated, enterprise-centric suite of applications that are based on open architectures and capable of real-time information exchange — key elements of ERP II. Misconception 4: ERP II is only for internal enterprise processes. This last point is the largest of the misconceptions, as ERP II is the enabler of all enterprise-centric commerce processes — in other words, all commerce processes that keep the enterprise at the center. This includes private e-marketplaces and direct connections to key business partners. If a process is in place for the commercial good of the enterprise above all others, it will be enabled by ERP II.

Factors driving ERP II User Disillusionment With Traditional ERP: Traditional ERP’s technical focus on resource optimization and transaction processing is insufficient to support new inter enterprise-focused strategies for improving enterprise competitiveness. ERP II is emerging to address these needs. The Emergence of the “Net-Liberated” Enterprise: Businesses are transforming themselves from vertically integrated organizations into multi-enterprise recombinant entities executing core-competency-based strategies. This will render the vast majority of today’s ERP applications not only obsolete from an architectural standpoint, but also inadequate from a business relevance perspective. Collaboration and the Rise of C-Commerce: The “glue” of virtual enterprises and the emerging model for e-business is c-commerce. C-commerce is networked, technology-enabled collaboration motivated by commercial benefit. It requires systems that enable enterprises to share information and collaborate in communities of interest: requirements that will be met by ERP II.

ERP II – Defined ERP II is an application and deployment strategy that expands out from ERP functions to achieve integration of an enterprise’s key domain-specific, internal and external collaborative, operational and financial processes ERP II is an application and deployment strategy that expands out from ERP functions to achieve integration of an enterprise’s key domain-specific, internal and external collaborative, operational and financial processes ERP II starts as an application strategy, setting a vision for integrating all enterprise-centric, commerce-oriented business processes without requiring a single-vendor approach. As a deployment strategy, ERP II allows users to determine the degree of vendor centricity required to fulfill the enterprise’s process requirements and, via the integration capabilities native to ERP II, include best-of-breed components. ERP II includes capability specific to the enterprise domain while also including capability to connect the enterprise to key business partners directly or via a private e-marketplace. Again, the process footprint of ERP II includes all collaborative, operational and financial processes that have the enterprise at the center.

ERP II as Process Enabler Along with the new domain focus, ERP II functionality will be streamlined and cross enterprise boundaries in support of specific processes. Gartner has defined six process areas for ERP II functionality: Prospect to Cash and Care: This area encompasses the sales-order-to-cash process, bracketed by sales opportunity (i.e., prospect) management and post-sales service (i.e., care). Requisition to Payment: This area encompasses the procurement process and includes e-procurement capabilities. Planning and Execution: This area includes processes for planning related to resources (e.g., materials, cash, labor, transportation, personnel and maintenance), executing plans and controlling the resources used in plan execution. Plan to Performance: This area includes financial processes that go beyond payables and receivables, to include consolidation, budgeting, treasury and financial reporting. Design to Retirement: This area encompasses processes associated with the product/service life cycle, from conception to retirement. Human Capital Management (HCM): HCM processes support workforce-related issues for both human resources (HR) and non-HR business processes. The critical element of the ERP II vision is that these functions must be seamlessly integrated, so that processes will be executed in a seamless manner. This seamless execution will raise the expectation of users that all application-enabled processes should operate in a seamless manner. Once this expectation is set, users will not accept superficially integrated systems. Process integration will provide faster cycle times, enabling a more responsive and nimble enterprise. Without tight integration, enterprises will depend on batch transfers of data between multiple applications, putting them at a competitive disadvantage. A key differentiator for vendors will be the degree to which they can enable that integration — whether they assemble and integrate these components, develop them natively or both. The process integration delivered by ERP II goes well beyond traditional, internal enterprise processes. ERP II process integration includes all processes — both internal and external — that connect an enterprise to a specific partner or community of partners One-to-one (1:1) processes are extensions of traditional ERP processes that provide direct links to the most important partners in the supply chain. Past 1:1 automation efforts, including electronic data interchange, have been hampered by high costs, minimal standards, lack of native ERP integration and reliance on batch processing. ERP II changes this by reducing deployment costs (leveraging the Internet), utilizing standards (e.g., XML), integrating communication and enabling real-time processing. One-to-many (1:M) processes are a different type of process extensions, which still rely on core ERP capabilities but also require an e-marketplace or exchange construct that allows for greater levels of supply chain visibility and collaboration between multiple partners. These e-markets/exchanges would be private in nature, keeping the hosting enterprise at the center of activities. Public e-marketplaces, and other types of consortiums involving many-to-many interactions, will not be in the scope of ERP II. Recommendations: Enterprises should place emphasis on integrating the user experience, processes and the underlying data models rather than individual application components. Failure to integrate these three aspects will place the enterprise at a competitive disadvantage. Enterprises should utilize ERP II to integrate all enterprise-centric business processes, which include processes intended to bring the enterprise’s key partners together for collaboration.

Major ERP Products Oracle Applications JD Edwards People Soft SAP Baan MAPICS MFG/PRO

Which ERP Product ? Functionality - Specific Environment Functional Spread - Mfg./ Finance / Sales/ HR Implementation Ease Ease of Customization Product Support & Upgrade Future Technology Compatibility Standard Open Interfaces (for integrating legacy systems) Similar Reference Sites Vendor Strength & Stability ROI Global Trend

To summarize… Optimum utilization of resources Customer satisfaction Seamless integration between Functions Reduced overheads & inventory Timely responsiveness Market share & image enhancement Faster design to manufacturability Keep up with technology changes Integrated systems for a client with multiple locations

So, the BOTTOMLINE is… ERP Helps !!!

An Introduction…

& Supplier Information The Architecture Integrated, Yet Modular - An Integrated Suite All Product, Customer, & Supplier Information Plan Order HR Finance Source Sell Service Projects Procure Market Fulfill Maintain Manufacture Develop Provide seamless integration between products Eliminate need for complex messaging and replication Perform enterprise-wide transactions Benefits increase as you add modules

The Architecture Integrated, Yet Modular Built on Open Standards Program in Java or PL/SQL APIs and database interface tables Support for current and emerging standards LDAP (Lightweight Directory Access Protocol)/single sign-on OAG – Open Applications Group RosettaNet (Development and Deployment of Electronic Business Interfaces) SOAP (Simple Object Access Protocol) Web Services Open portal access

Vendor X Human Resources The Architecture Integrated, Yet Modular Built on Open Standards Vendor X Human Resources Oracle Finance Oracle Marketing Vendor Y Planning Vendor Z Purchasing Legacy Environment Open Applications Solution Enables you to: Leverage investment in existing technology Eliminate disparate systems as needed

Project & Contract Mgmt Order Mgmt & Warehousing The Architecture Built on a Common Data Model - Provide Single Version of the Truth Asset Maintenance Project & Contract Mgmt Planning HR & Finance Purchasing Manufacturing Product Development Common Data Model Order Mgmt & Warehousing Sales & Marketing Service Single, complete data model Store all information in a single database Track all customer interactions

The Architecture Built on a Common Data Model - Accessible Any Way, Anywhere Common Data Model Executives Project Teams Corporate Staff Customer Service Mfg Personnel Java RF Device Excel PDA HTML

The Architecture Runs on a Single Global Instance Data Center Consolidation Eliminate IT costs associated with duplicate data centers, redundant hardware, multiple databases Reduce errors, simplify operations and speed transaction time with a single copy of data

The Architecture 30+ Languages Multiple Currencies Runs on a Single Global Instance Enabled via Global Capabilities 30+ Languages Multiple Currencies Customers in 100+ Countries All Languages Installable in Same Unicode Instance Support for Statutory and Customary Local Requirements

Access Electronic Content Analyze Spend & Develop Requirements The Functionality Automate all Business Processes End-to-End Business Flows – Procure to Pay Example Receive Goods or Services Receive Electronic Invoice Pay Supplier Send Electronic PO to Supplier Award Contracts/POs Access Electronic Content Approve Requisition/ Release Auto-Create Purchase Order Create Receive Bank Statement Record Transaction in General Ledger Auto-Reconcile Bank Statement Analyze Spend & Develop Requirements Qualify Suppliers Evaluate Bids Negotiate Contracts

The Functionality Automate all Business Processes Across All Functional Areas Finance Financials General Ledger Receivables Payables Assets Cash Management Activity Based Management Balanced Scorecord Collections Financial & Sales Analyzers Treasury Internet Expenses iReceivables Financials Intelligence Property Manager Customers Online Human Resources Payroll Self Service HR Training Administration HR Intelligence Time & Labor Advanced Benefits iLearning iRecruitment Service iSupport TeleService Service Contracts Field Service Wireless Option Advanced Scheduler Mobile Field Service Depot Repair Lease Management Sales & Marketing Configurator Marketing Trade Management iStore Sales Online TeleSales Sales Contracts Partners Online Incentive Compensation Quoting Customers Online Data Librarian Sales Offline Edition Projects Project Billing Project Costing Internet Time Project Contracts Project Resource Mgmt

The Functionality Automate all Business Processes Across All Functional Areas Product Development Project Contracts CADView-3D Order Fulfillment Order Management Configurator Advanced Pricing Release Management Mobile Supply Chain Apps Warehouse Management Transportation Maintenance Enterprise Asset Mgmt Interaction Center Advanced Inbound Advanced Outbound Scripting eMail Center Planning Demand Planning Advanced Supply Chain Plng Global Order Promising Manufacturing Scheduling Inventory Optimization Collaborative Planning Supply Chain Intelligence Procurement Purchasing Purchasing Intelligence Payables Sourcing iProcurement iSupplier Portal Exchange Marketplace Manufacturing Discrete Manufacturing Bills of Material & Engr. Work in Process Cost Management Inventory Quality Project Manufacturing Flow Manufacturing Shop Floor Management Process Manufacturing Production Management Process Costing & Quality Process Inventory New Product Development Formula Management Regulatory Management

The Functionality Automate all Business Processes Across All Industries Chemicals Consumer Packaged Goods Life Sciences Process Mfg Aerospace & Defense Automotive Consumer Products High Technology Industrial Products Discrete Mfg Engineering & Construction Financial Services Professional Services Retail Service Communications Energy Travel & Transportation Utilities Asset Intensive Education Government – Defense Government – Civilian Healthcare Public Services

The Functionality Extend, don’t customize Automate all Business Processes Tailorable, Workflow-Driven Extend, don’t customize Configure without programming Graphically depict entire process Modify processes as your business needs change Make changes that survive all upgrades Automatically capture exceptions and take action

The Functionality Collaborate with Trading Partners Examples of Collaboration Your Company Suppliers Customers Sell / Order Plan Finance / Procure Manufacture Fulfill Service Outsourced Manufacturing Negotiations, Contracts, Execution, Payments Orders, Prices, Promise Dates, Billing, Payments Drop Ship, Carrier Mgmt Service Requests, Warranties Spares Replenishment Sales and Order Forecast, Supply Commits Status Projects Bill Presentment and Payment Schedule, Status, Cost Schedule, Contracts

The Functionality Collaborate with Trading Partners Leverage Multiple Collaboration Methods Your Company Customers & Suppliers Messaging Mobile / PDA Email Portal

The Functionality Deliver Integrated Intelligence Make Better, Faster Decisions Built to Answer Critical Business Questions Enable management by fact, objective, and exception Monitor performance and answer questions in real-time For Use by All People Executives, managers, and all employees;customers, suppliers, and partners Access consolidated information through role-based portals with pre-built content Spans All Areas of the Business

The Functionality Deliver Integrated Intelligence Portal Management Links Reports Performance Measures Real-Time Results Graphs Flexible Time Periods Comparisons

& Supplier Information The Functionality Summery Architecturally… Integrated, Yet Modular Built on a Common Data Model Runs on a Single Global Instance Functionally… Automate All Business Processes Collaborate with Trading Partners Deliver Integrated Intelligence …Available in a Hosted Environment Outsource IT Administration All Product, Customer, & Supplier Information Plan Order HR Finance Source Sell Service Projects Procure Market Fulfill Maintain Manufacture Develop

Oracle E-Business Offerings THINK BUILD OPERATE SOLUTION ACCELERATORS PROCESS DOMAIN TOOLS ERP Assessment and Health-check Product Selection System Performance Tuning Upgrade Assessment CONSULTING Business process study Business process Mapping Gap Analysis Configuration Go-Live Support IMPLEMENTATION Requirement Study Design & Development Integration Integrate Legacy systems to OA Develop Custom APIs CUSTOMIZATION Roll-out support Enhancements to Customizations Product support System Administration System/Application Tuning and patching SUPPORT Upgrade to R12 and Fusion Maintenance upgrade UPGRADE Center of Excellence Rollout Assessment Functional and Regression Testing SPECIAL OFFERINGS

Standard Methodology New 11i end to end Implementations or module add-ons in existing implementations or up gradations to new versions Project management Schedules Deliverables Quality Management Requirement Analysis Solution Function design Gap Fitment Analysis Customization Development Conference Room Pilots (CRP) - Iterative approach Comprehensive User Training Production Instance Setup & Deployment with proven successful Go-live strategies Production Readiness Assessment, Cut-over Activities, Data Migration & Go – live Post implementation Support & Maintenance

AIM Process

AIM Processes Business Process Architecture (BP) Business Requirements Definition (RD) Business Requirements Mapping (BR) Application and Technical Architecture (TA) Module Design and Build (MD) Data Conversion (CV) Documentation (DO) Business System Testing (TE) Performance Testing (PT) Adoption and Learning (AP) Production Migration (PM)

Release 12 • Significantly Enhanced Functionality Advanced Accounting Best Practices Improved support for Centralized Services More User Friendly Open & Adaptable Enhanced Applications Management and Security

Significantly Enhanced Functionality

Significantly Enhanced Functionality

Advanced Accounting Best Practices

Improved support for Centralized Services

Improved support for Centralized Services

Improved support for Centralized Services

More User Friendly

Open & Adaptable

Open & Adaptable

Open and Adaptable

Enhanced Applications Management and Security

Enhanced Applications Management and Security

Thank You.