Industry specific cover image Oracle Insight & How To Drive Value From Your ERP Investment Simon Threlfall Senior Director, Industry Strategy & Insight Public Sector, North America Mar 2013

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 22 What is Oracle Insight? A consultative approach to helping customers resolve critical business issues that leverages Oracle’s deep skill set & experience Oracle Insight  A selective, free-of-charge program offered to strategic Oracle accounts  Reports to the President of Oracle as part of the Industries Business Unit (IBU)  Focuses on the identification, quantification, and communication of value to customer executives + + Industry Experience Solution Knowledge Project Mgmt Value Analysis + + Functional Knowledge

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. Oracle Insight Has Assisted Customers In All Stages Of The Technology Investment Lifecycle Accelerate Technology Transformation by Aligning Project & Business Objectives Align and Measure Technology Initiatives Against Planned Objectives Establish a Roadmap & Business Case for Modernization Effort Unlock More Value from Technology Investments 3

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 44 Full ERP Lifecycle Insight process designed to help customers progress through this lifecycle; thereby driving maximum value out of their investment in ERP Timeline Performance Baseline Go-Live Efficiency Effectiveness Solution Transformation Processes Stabilization Adding Functionalities Business Strategy = BI Implementation Stage 2 Source:Deloitte Consulting Stage 3Stage 4Stage 1 Most organizations report a decline from baseline performance during the initial stage after going live

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 5 Market Research Suggests Organizations Can Achieve Significant Benefits From Modern ERP Solutions “By moving to a single ERP system for Finance and at the same time implementing consistent data and technology standards, companies can cut the cost of finance operations by 23%.” Hackett Group “Research has found that adopters of e-Sourcing could negotiate a 14.3% avg reduction in goods & services costs, cut sourcing cycles in half and reduce sourcing administration costs by nearly 60%.” Aberdeen Group “World class purchasing organizations have 48% less staff and 30% lower costs than average purchasing organizations.” Hackett Group “Organizations can typically count on a 20% to 25% reduction in HR administration staff when they move to a modern, integrated, self-service HR platform.” Hackett Group

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. Benefits of Modernizing Time & Labor Functions 6 83% reduction 86% reduction 80% reduction Hackett Group: 2008 Book of Numbers - HR Transformation and the Quest for Strategic Enablement

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 7 The Impact on IT Support Organizations Source: CedarCrestone 2009–2010 HR Systems Survey: HR Technologies, Deployment Approaches,Value, and Metrics 12th Annual Edition 57% reduction in IT staff

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 8 1.Customizing ERP system to match legacy processes & procedures 2.Lack of continued governance & leadership after “Go-Live” 3.Inadequate focus on change management / end-user training & adoption 4.Only implementing core transactional systems 5.Moving down a “point solution” path to fill capability / functionality gaps 6.Lack of emphasis on measuring performance Common Mistakes Organizations Make That Inhibit Their Ability to Drive This Value From Their ERP Investment

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 9 Oracle has found that many organizations that heavily customize their ERP systems end up re-implementing with a mandate to “go vanilla” Therefore, organizations should do whatever they can up-front to minimize customizations to their ERP systems Organizations should re-engineer legacy processes & procedures (where legislatively possible) to match the pre-delivered, best practice processes in the ERP system The earlier organizations begin the change management effort the earlier they will achieve benefits promised by modern ERP systems “Going vanilla” enables organizations to more easily take advantage of best practices made available in future versions Solution: “Go Vanilla”

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 10 The mission of an ERP CC is to progress the organization through the ERP lifecycle & drive maximum value from investment in ERP Organizationally, an ERP CC is a permanent, stand alone dept., headed by a Director-level position, aligned under the CFO, COO or CIO Staffed with functional/business unit SMEs Gartner has found that…”companies with ERP CCs have shown dramatic decreases in consulting costs for each additional project and have the ability to support many more concurrent users per support FTE.” Solution: Transitioning to a Best Practice ERP Competency Center (CC) Support Structure

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 11 Solution: Invest in Change Management Services & Training Material & Delivery Technology Invest in change management & training consulting services Leverage training technologies that streamline the development & delivery of training material Many ERP vendors provide pre-built process flow content that can be leveraged during an implementation project to train SMEs, before “Go-Live” to train end-users, and at any time a new hire starts & needs get up to speed on how to do things

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 12 Solution: Focus on Administrative, Delivery, & Performance Excellence Impact Value Low High Low Drive Core Administrative Efficiency “Comply” Drive Workforce Efficiency “Align” Drive Organizational Effectiveness Through Analytics “Elevate” PERFORMANCE Analytics, Measurement, Performance Improvement Tools that fully bridge data to organizational strategy – serve to manage and improve performance and impact the core mission DELIVERY Self Service, Service Center, Portal Tools that directly connect employees and managers with the information and knowledge that they require ADMINISTRATIVE Core transactional systems Core Foundational Components for data management and process management Focusing on and achieving all three levels of excellence is imperative to the overall success of an ERP modernization effort Traditional ERP Business Intelligence

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 13 Solution: Fill Key Capability Gaps by Implementing “Pre-Built, ERP-Based” Solutions Over the years ERP vendors have made significant investments in advanced functionality/capabilities From a functionality perspective, many of these systems are on par with “best of breed” systems, but have the additional benefit of being pre-integrated to the ERP system Mainstay Partners (2004) 1 found that: –Consolidated systems drive faster implementation times of up to 50% –20% to 50% lower implementation and upgrade costs via consolidated infrastructure –20% to 70% reduced IT headcount by consolidating systems –25% increased uptime via consolidated infrastructure Gartner (2006) 2 found that…“running an integrated system usually costs less due to a single technology platform, lack of interface costs, easier support, and lower training costs for both IT and end-users.” Mainstay Partners ROI Study, Integrated Financial and Human Capital Management Applications Make Sense, but Not Always, Gartner Consulting, April 2006

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 14 Solution: Identify KPIs & Actively Measure Progress Before any organization implements an ERP system it should identify a set of standard KPIs for each area Baseline the organization’s performance & identify a set of realistic improvement targets for each line of business At periodic times after “Go-Live” measure organization’s performance Continually compare performance to baseline measures, and hold managers accountable

Insight information, including this Oracle presentation, is the confidential, proprietary information of Oracle, is intended solely for your internal business use and shall not be disclosed to third parties without Oracle’s prior written consent. 15 Questions?