Oracle Business Models OBM Oracle Business Models The OBM Business Model Overview Release 5.0

Business Process Model What is OBM? Oracle’s Business Process Model Communicates information about Oracle’s E-Business Applications... Links Oracle Applications to the common language of business process models Preconfigured models reduce time & risk Improves Training & Control during implementation What is OBM? OBM is a language. It is a vocabulary of basic business processes which can be used to establish common ground between IT professionals and business professionals. By using the language of business process, it is possible to create a dialog which can be effective in describing how to run an organization with a software application. This dialog is then useful for communicating an application’s purpose and scope, and for managing the effort involved in marrying the way people do their jobs with how an application functions. The dialog is facilitated by the use of business process models as a tool which can provide the basis for mutual understanding. Finally, OBM improves our customers’ ability to train their people and control their business processes during implementations of Oracle Applications

Oracle Application Server What do Oracle’s customers want? Approvals Purchase Orders Accounts Payable Manage Requisitions PR1180 Manage Non Production Requisition Vision Corporation needs new monitors for their desk tops. A requisitioner in the creates a requisition defining the needs. PR1182 Issue A Purchase Order The buyer creates a purchase order for the selected supplier of the monitors. The department manager approves the requisition. PR1016 Generate Payments The invoice is approved by the accounting manager. The accountant sends the check to the supplier. Receiving and Inspection MM1136 Receive Material The monitors arrive at the receiving dock. MM1135 Accept or Reject Deliveries The received material is inspected and approved. Supplier Invoices PR1010 Supplier Invoice The AP Clerk receives the invoice. The invoice is matched against the purchase order. The invoice is approved for payment. PR0129 Authorize The buyer approves the requisition. Procure to Pay PR0128 Requisitions Purchase Agent Purchase Mgr Vision Corporation Dispatcher Accountant Business - NOT just Product / Technology Stack Oracle’s customers are competing in ever tightening marketplaces and are looking for solutions to manage their business more effectively. Solutions which support the end-to-end flow of their business activity. Oracle is more effective in communicating to customers when we sell a solution based on the business processes it supports Do our client decision makers care about the various modules? No. They care about how their business is supported. How do we best describe what can be achieved by putting the various components together? How can we best describe the key Oracle advantage, our integrated business suite? How do we best approach our customers? - by communicating with them in their terms - the neutral language of business processes. Once agreement is reached that we understand how they manage their business , then we can win them over by showing them how to manage their integrated business processes on Oracle. Oracle Application Oracle Application Oracle Application Oracle Application Server Oracle 9i

What is OBM? Models Oracle Business Flows OBM Business Model Oracle Tutor Procedures for OBM Methods OBM Process Library OBM Standards AIM for Flows Business Flow Accelerators Let’s focus on OBM OBM is an Oracle Consulting Program which is designed to improve our ability to communicate applications intent to customers, and to improve our ability to implement our applications through business process modeling. It consists of business process models, methods, tools, and linkages to other Oracle tools such as AIM, FastForward and Tutor.

Oracle Business Model Plan Sell Market Source Make Support Supplier Collaboration Back Office Mfg/Supply Chain Enterprise (Back Office) CRM Value Chain Product Development Human Resource Management Enterprise Management Financial Management Project Management Planning & Forecasting Procurement Operations Mgt Materials Order Fulfillment Marketing Sales Customer Interaction Service Collaborative and Marketplace Services Requisitions (PRS03) PR1180 Manage Non Production Requisition PR1026 Production Requisitions PR1181 Select Suppliers Supplier Contracts Management Requisitions Approvals Non Product Receiving Invoices Purchase Orders Accounts Payable

The Source: OBM Process Library One sheet per Functional Area Processes defined by level: Functional area, Summary Process, Business Process Over 750 Business Processes Business Reference Library The OBM Process Library is the core of OBM. It is like a Data dictionary of business processes, and identifies all of the business processes in the Oracle Business Model. Primary business model is of the discrete mfg / distribution industry - industry variants are being developed. However, the model is flexible enough to be used for different types of industries. All models developed using OBM are based on the process library There are 14 functional areas in the process library - this is a part of the HR model. Those who know the old OBM structure can see that this has been revised to 3 levels (see the level column), functional areas (FA) supported by summary processes (SP) containing business processes (BP).

Tutor Procedures for OBM Mapped to OBM business processes Text Based Task Lists Automated Flow Diagrams Oracle Application Navigation New to OBM 4.5, Tutor built Procedures for OBM Business Processes, replacing the old Visio Swimlane diagrams About 220 of the primary business processes in the OBM model have had procedure material built for them using Oracle Tutor. These are in the areas of financials, HR, Projects, Order Fulfillment, and Supply Chain. The procedures were built for the processes used in FastForward Flows, and Consulting Subject Matter Experts used FF test Scripts as the basis for the procedures. The procedures identify the activity required to execute the business process using Oracle Applications. Tasks which are performed with the Apps have navigation identified. The procedures are presented in text based task lists which are then automatically converted into diagrams. Both reference the roles responsible for the task and the navigation. Policy issues, which can be addressed by Tutor, are left blank in OBM Tutor Procedures, on the assumption that all policies are unique to the organization. These can be modified by Oracle Consulting in an implementation. They can also be customized by the client, if Tutor license is acquired. Tutor built procedures for OBM are available as word docs (the primary source), which are then converted into HTML files. These can be linked into the Oracle Application help system, where they become living procedure documents. Can be customized and linked into Oracle Applications as help text

Flows: Getting down to the business… Approvals (PRS05) Purchase Orders (PRS04) Requisitions (PRS03) PR1933 Issue a Non Production Purchase Order PO can be automatically created via Workflow from Requisition. PO can be auto-created manually from a Requisition. PR0128 Authorize Requisitions Requisition approved via Workflow based on Hierarchy, Job/ Supervisor Setup. Approvals can be controlled using amount or account code. Non-Production Receiving (PRS06) PR1935 Receive Non Production Goods & Services The non-production goods arrive at the requisitioner/receivers desk. Two-Way or Three-Way Matching. PR1180 Manage Non Production Requisitions Create a requisition defining the non production, service, administrative, items needed. Requisition may be for Fixed Assets or non catalog items or one time purchases. Requisitions may be maintained, modified, or canceled. Roles Supervisor Requisitioner Purchasing Ability to control Receiving Routings. Receive using express transactions for fast data entry. PR1029 Purchase Orders PO’s approved via Workflow based on Hierarchy, Job/ Supervisor Setup. Approvals can be controlled using amount or account code. The Orale community can best address the area of interest which customers are able to focus on by using business flows. This allows us to concentrate on a particular area of pain or opportunity. What is a business flow ? A business flow describes the way companies line up resources to meet objectives. Defines real-world business processes Depicts smooth flow of information across functional areas in the business Maps the way business are run Flows are good for Oracle because Departments don’t exist in vacuums They illustrate Coordination, Cooperation, Collaboration traditional product-oriented presentations don’t necessarily illustrate the smooth flow of information Illustrate Integrated Software which is Engineered to Work Together In particular, FastForward Flows from the AGSL are Based Best of Breed Flows No Modification Focus On What You Need Get Benefits Fast No long, expensive integration projects

What is new in OBM (12/02)? 115 Certified Oracle Business Flows 550 Tutor Procedures built for OBM Business Processes, replacing Visio Swimlane diagrams 1200 Business Processes Industry Models All Business Flow Accelerators Reference OBM Business Processes – BP.080; many new business processes support these All swimlanes eliminated, new Tutor Build procedures mapped to FastForward Processes visio simplified, condensed, files reduced Significant integration of OBM business Processes with FastForward Deliverables New Process Manufacturing model – 80% reuse of existing model with Process Mfg processes replacing those for discrete

Using OBM and Flows Business Insight Business Processes Business Solutions Consensus Building Scope Definition Prescriptive Flows Custom Flows Client Business Model Long lived procedures Use OBM as the baseline for modeling business processes Capture issues and actions on processes Assemble Business Flows to define overall solution How can OBM & Flows be used by consulting? Here is a flow based approach. Implementation approach: AIM for Flows

Using OBM: Implementation Objective: Successful Implementations of Applications On Time & Within Budget Means: Flow based implementations 2) AIM Current to Future State Mapping 3) Training 4) Procedures FastForward Approach Fixed, base flows, leading practice AIM Process mapping current to future leading practice flows as baseline Further, the material can be used after implementation as training material, and with the Tutor procedures, become living reference material. Process Gaps & Issues List 1. mmmm 2.mmm mmm 3. mm m mm

Why OBM? Improves Customer / Applications Provider commumication Helps Oracle think in the customer’s terms Addresses Business Management, not just feature/function Provides a structured approach to managing a business with Oracle Business Flows can be used in any business as a prescriptive model Preconfigured models reduce time & risk of implementation Provides the tools to develop a Customer specific Process Model Procedures integrated into Oracle Applications can become living documentation These business flows clearly explain how Oracle APS would manage my planning!