January 17, 2007F I N I S A R C O R P O R A T I O N Integrating Oracle Quoting with Trade Management and Pricing Holli Lien – Finisar Joanne Nettleblad – OAC Services, Inc.

F INISAR C ONFIDENTIAL 2 Agenda Introduction to Finisar & Business Drivers Process & Architecture Quoting & Customer-Specific Price Lists Quoting & Distribution Ship & Debits Overview of One Process for both Applications Lessons Learned

F INISAR C ONFIDENTIAL 3 Finisar Digital Fiber optics for Enterprise, Access, & Metro Networks Founded in 1988 Headquartered in Sunnyvale, CA 4,000+ employees worldwide FY06 Revenue ~$364 Million

F INISAR C ONFIDENTIAL 4 Global Sales Channel Finisar Facilities Distributors Reps

F INISAR C ONFIDENTIAL 5 Sales Channel Finisar Mfg Finisar RSMs Mfg Reps Distributors Contract Mfgs End Customers

F INISAR C ONFIDENTIAL 6 Business Drivers Acquisition of Infineon business  Inherited two large Distributors Continue increasing Finisar’s current distribution business Shifted some distributors from a POP model to a POS model in Apr’05  Allows for better sales/inventory incentives

F INISAR C ONFIDENTIAL 7 Business Drivers Limited business rules and processes in place No quoting system Every region had their own unique manual process No formal approval process  SOX compliance concerns Pricing done on , spreadsheets, or verbally  no controls, tracking or visibility

F INISAR C ONFIDENTIAL 8 Finisar’s Quoting Process before Oracle Distributor Quoting Phone 3 rd Party Reps Phone RSM Maintains Customer Price Lists Customer Service Pulls Information from spreadsheets to book orders Marketing Maintains Standard Price List Excel Consolidation Debit Memo Process POS & validate approved S&Ds from consolidated quoting spreadsheets POS Create Credit Memos

F INISAR C ONFIDENTIAL 9 3 rd Party Reps. Internal RSM Distributor Quoting Special Price Request Partner Page Create Offer Trade Mgt (Process batch & claim) Manually Update Price Lists Partner Page Approvals Trade Management Quoting Oracle Process & Architecture

F INISAR C ONFIDENTIAL 10 Business Requirements One user interface and business process for either Ship & Debit authorizations or direct customer quotes One approval process and application to support for quoting process Manual price list creation and maintenance must be minimal Direct customer quotes will result in pricing for a specific time period (multiple purchase orders)

F INISAR C ONFIDENTIAL 11 Internal RSM Quoting Disti End Customers Direct End Customers Offer Trade Mgt Process POS / Claims Approvals Ship/Debit Special Price Request Approvals Direct Cust. Custom Inter. Pricing Update/Create Customer Price Lists Customized Process & Architecture 3 rd Party Reps. Partner Page Custom Inter.

F INISAR C ONFIDENTIAL 12 Oracle Quoting and Customer Price Lists PRICING Create Quote List Price & Approval from Price Lists CUSTOM INTERFACE Create/Update Price List Quote Type & Status is the Trigger FNSR CUSTOMER XX FNSR CUSTOMER AA FNSR CUSTOMER BB FNSR CUSTOMER YY

F INISAR C ONFIDENTIAL 13 Standard & Customer Price Lists On a Customer-Specific Price List: Can have both standard and customer-specific part numbers One price for specified period Has the Standard Price List as secondary

F INISAR C ONFIDENTIAL 14 Price Lists linked to Customers DATABASE CUST ACCT# 111 CUST A CUST ACCT# 222 CUST B CUST ACCT# 333 CUST C CUST ACCT# 777 CUST X CUST ACCT# 888 CUST Y CUST ACCT# 999 CUST Z CUST ACCT# 444 CUST H CUST ACCT# 555 CUST M CUST ACCT# 666 CUST R PRICE LISTSCUSTOMERS FNSR CUSTOMER AA FNSR CUSTOMER BB CUST J CUST K CUST O FNSR CUSTOMER XX FNSR CUSTOMER YY

F INISAR C ONFIDENTIAL 15 Price Lists linked to Customers DATABASE CUST ACCT# 111 CUST A CUST ACCT# 222 CUST B CUST ACCT# 333 CUST C CUST ACCT# 777 CUST X CUST ACCT# 888 CUST Y CUST ACCT# 999 CUST Z CUST ACCT# 444 CUST H CUST ACCT# 555 CUST M CUST ACCT# 666 CUST R PRICE LISTSCUSTOMERS FNSR CUSTOMER AA FNSR CUSTOMER BB CUST J CUST K CUST O FNSR CUSTOMER XX FNSR CUSTOMER YY Only customers with Account Numbers can have their own price list Not all customers have an Account Number (ie. Disti end customers) Not all customers with Account Numbers will have a price list

F INISAR C ONFIDENTIAL 16 Price Lists linked to Customers DATABASE CUST ACCT# 111 CUST A CUST ACCT# 222 CUST B CUST ACCT# 333 CUST C CUST ACCT# 777 CUST X CUST ACCT# 888 CUST Y CUST ACCT# 999 CUST Z CUST ACCT# 444 CUST H CUST ACCT# 555 CUST M CUST ACCT# 666 CUST R PRICE LISTSCUSTOMERS FNSR CUSTOMER AA FNSR CUSTOMER BB CUST J CUST K CUST O FNSR CUSTOMER XX FNSR CUSTOMER YY All Customers are linked to the Standard Price List

F INISAR C ONFIDENTIAL 17 Business Rules for Entering Quote Part Number MUST:  Be on either the Standard price list or the Customer-Specific price list  Have a current price on a price list the price is valid (or not expired) the day that you enter your quote

F INISAR C ONFIDENTIAL 18 Entering Quote: Will I be able to quote? Scenario 1: I’m trying to enter a quote for customer ZZ for FO55LF-ZZ. Today is 11-Dec Assume these are the only parts on the Standard Price List. FO55LF-ZZ is on the ZZ price list, however there is no price in effect as of 11-DEC-2006.

F INISAR C ONFIDENTIAL 19 Entering Quote: Will I be able to quote? Scenario 2: I’m trying to enter a quote for customer ZZ for FO44LF-ZZ. Today is 17-Jan Assume these are the only parts on the Standard Price List. FO44LF-ZZ is a customer-specific part# and is not currently on the ZZ price list. Because it’s a customer-specific part#, FO44LF-ZZ would not be on the standard price list either.

F INISAR C ONFIDENTIAL 20 Entering Quote: Will I be able to quote? Scenario 3: I’m trying to enter A quote for customer ZZ for FO22LF. Today is 17-Jan Assume these are the only parts on the Standard Price List. The Std Price List is linked to a customer- specific price list as the secondary. So even though FO22LF is specifically not on the ZZ price list, FO22LF is still a standard part on the standard price list

F INISAR C ONFIDENTIAL 21 Custom Interface for Price Lists How does the Custom Interface know when to Update or Create a Customer-Specific Price List? Sales Rep Enters Quote Select Customer have Account#? Standard Price List Customer- Specific Price List Cust-Specific Price List? YES NO Approved Quote Approval Process No Price List; Quote Only Custom Interface Oracle Quoting Update Price List Create Price List Pricing Change Status on Quote to “Order Received” Using Customer’s Name

F INISAR C ONFIDENTIAL 22 Business Rules for Pricing Interface Update Existing Customer-Specific Price List:  Quote has to be entered with the correct customer and price list Price list will default based on the customer & acct#  Quote has to be in Order Received status Create New Customer-Specific Price List:  Customer on the quote has to have an account#  Customer-specific price list name will be created using the Customer Name  Quote has to be in Order Received status

F INISAR C ONFIDENTIAL 23 Setting up Custom Interface (Pricing API) Standard Pricing API used Pricing API logic built around the price list line start/end dates Descriptive Flexfields utilized in Quoting for Pricing Effective Start and End Dates Concurrent process runs every 30 minutes Assumptions:  No logic built in to look at price – new quote price overrides existing (even if same)  Null end date treated as infinite date (aka. 12/31/2099) in logic  Null start date on quote will use system date for price list line start date

F INISAR C ONFIDENTIAL 24 Logic for Pricing API Price List Start Date Price List End Date  Existing Price List Line has start and end dates  New Price List Line has start and end dates

F INISAR C ONFIDENTIAL 25 Logic for Pricing API  Existing Price List Line has a start date but no end date  New Price List Line has start and end dates Price List Start DatePrice List No End Date

F INISAR C ONFIDENTIAL 26 Logic for Pricing API  Existing Price List Line has a start date but no end date  New Price List Line has a start date but no end date Price List Start Date Price List No End Date 1 2 3

F INISAR C ONFIDENTIAL 27 Logic for Pricing API  Existing Price List Line has a start date and end date  New Price List Line has a start date but no end date Price List Start Date Price List End Date

F INISAR C ONFIDENTIAL 28 Custom Interface Updating Price List How it works: Quote# 111 Customer: ZZ Type of Quote: BLANKET Part# F033LF Target Price: $37 Pricing Eff Start Date: 17-Jan-2007 Pricing Eff End Date: BEFOREAFTER Once the Quote is Approved and the status is changed to Order Received Custom Interface will… (1) End date existing line using the date before the new price’s start date (2) Create a new line with the new price and start/end dates.

F INISAR C ONFIDENTIAL 29 Oracle Quoting Screen Shot for Pricing FO55LF EA 1000$45 $37 $37000 Details

F INISAR C ONFIDENTIAL 30 Oracle Quoting and Ship & Debits PRICING Create Quote List Price & Approvals from Price Lists CUSTOM INTERFACE Generate S&D# for Disti FNSR CUSTOMER XX FNSR CUSTOMER YY TRADE MANAGEMENT Quote Type & Status is the Trigger Offer Special Price Request Validate against Disti Price List

F INISAR C ONFIDENTIAL 31 Distributor Price List Distributor Price List: Can only have standard part numbers One price for specified period

F INISAR C ONFIDENTIAL 32 Business Rules for Entering Quote Part Number MUST:  be on either the Standard price list or the Customer-Specific price list  has to have a current price on a price list the price is valid (or not expired) the day that you enter your quote

F INISAR C ONFIDENTIAL 33 Custom Interface for Ship & Debits How does the Custom Interface know when to Create a Ship & Debit? Sales Rep Enters Quote Is the Part# a std part? Is the Target Cost < the Disti Price? YES NO Approved Quote Approval Process Will Not Create Ship & Debit Custom Interface Is the Distributor specified? YES NO Create Will Create Ship & Debit Oracle QuotingTrade Management Create Offer Special Price Request Change Status on Quote to “Ship & Debit Approved”

F INISAR C ONFIDENTIAL 34 Business Rules for OTM Interface Quote must be in Ship & Debit Approved Status Sales Channel must be a POS Distributor  Mapped to Distributor Customer Acct# Requested pricing is lower than Disti book price Part# must be on Distributor Price List  Standard parts only, not customer-specific parts

F INISAR C ONFIDENTIAL 35 Setting up Custom Interface (OTM API) Leverage public Trade Management Offer API Direct table load for Special Price Request (SPR) creation  No public API at the time we implemented Scheduled concurrent background process runs every 5 minutes Ship & Debit expiration date is 6 months from creation date Ship & Debit number and quote name used in SPR and Offer creation Ship & Debit Number returned and stored in Quote sent upon Ship & Debit assignment

F INISAR C ONFIDENTIAL 36 Oracle Quoting Screen Shot for S&Ds FO55LF EA 1000$45 $37 $37000 Details

F INISAR C ONFIDENTIAL 37 Finisar Integrated Process One User Front-end One Business Process (Quoting) Effecting Two Applications  Pricing  Trade Management

F INISAR C ONFIDENTIAL 38 Lessons Learned Keep it Simple Design the business processes up front Know your user community Test, validate, test Know your Oracle Support and Development team Continuous improvement / enhancements

F INISAR C ONFIDENTIAL 39 Questions?

F INISAR C ONFIDENTIAL 40 Presenter Contact Information Holli Lien (408) Joanne Nettleblad (408)