Oracle 11 i 10 Applications Financial Management Don

Oracle 11 i 10 Applications Financial Management Don Gruesu Application Specialist

Agenda Ÿ Ÿ Ÿ Ÿ Key Takeaways Product Family Footprint New Products Highlighted New Functionality Cross-Sell Up-Sell Analyst Remarks & Competition Customer Stories

Key Takeaways

Key Takeaways • New Products Enterprise Planning & Budget Bill Presentment Architecture i. Assets • Corporate Governance Spend is over $1 B; Oracle remains the solution leader; integration w/ Projects added in 11 i 10 Ÿ Receivables Integration w/ Trade Management Ÿ Stronger Credit Management with Advanced Collections Ÿ Better Cash Management and Forecasting added to Cash Management Ÿ Significant enhancements to Lease Management and Property Manager Ÿ Customer Data Management is a focus

Product Footprint

Oracle Financial Product Families Analytic Applications Pull-Through Apps Enterprise Asset Mgmt, Enterprise Install Base, Service Contracts, Enterprise Project Management, Tutor, Scripting, i. Survey, Trade Mgmt, Demand Planning, e. Commerce, Advanced Collections Lease Management Real Estate Management Cash and Treasury Mgmt Payables and Expense Mgmt Revenue & Receivables Management Core Financials Marketing Applications Financial Intelligence Corporate Performance Management

New Products

New Products Enterprise Planning & Budgeting (EPB) An application for Planning, Budgeting, Forecasting, Reporting, Monitoring and Analysis Bill Presentment Architecture A template-based configuration of bills for online presentment and printing; billing data can come from non-Oracle AR sources i. Assets Allows non-Financial users to manage asset transfers, asset ownership and location tracking in a self service manner

Enterprise Planning and Budgeting Ÿ Manage your business processes and each process run Ÿ Control each plan’s time frame and level of detail Ÿ Pick process tasks from a library Ÿ Define process schedule and versions to retain Ÿ Integrate to all data sources using open interface tables Ÿ Create multidimensional crosstabs and graphs, covering historical, current and projected data Ÿ Rotate, drill, apply formatting and color coding, analyze by exception, insert calculations, annotate cells Ÿ Budget at corporate, divisional, and operational levels Ÿ Generate worksheets automatically Ÿ Cascade distribution of worksheets down the hierarchy, setting targets at each level Ÿ Spread and grow with built-in functions Ÿ Monitor status of submissions Ÿ Approve or reject worksheets before consolidation Ÿ Set automatic exception alerts based on the budget or actuals Ÿ Request explanations from those accountable

Integrated Business Processes Streamline the Planning and Budgeting Cycle Define Distribute Submit & Approve • Identify KPIs • Develop plans based on corporate strategy • Streamlined automated process • Budget lines by Org • Notify managers • Adopt budget • Notify managers • Document / post Planning Process Management Define Create Distribute Analyze Submit Create Analyze • • • Run multi-dimensional what-if scenarios • Calculate variance • Determine profitability • Add user-defined annotations Identify organization Map plans to budget lines Develop hierarchies Build financial models Monitor & Improve • • Create budget book & monthly pack reports Analyze variance Examine exceptions Re-forecast Approve

Example of tasks This shows the tasks for the Annual Budget business process 11

Automated Planning Process Mgmt Simplify Administration and Auditability • Clearly Define the Planning Process - Rules - Schedules - Tasks - Owners • Automate Tasks - Set calendars Distribute worksheets Solicit & validate submissions Communicate assumption changes Route for approval • Track Actions and Status

Consistent Plan and Budget Definition Ensure Agreement with Corporate Strategy Business Unit 1 Plan 5 Year Plan Fiscal Year Plan Corporate Strategy Business Unit 2 Plan Business Unit 3 Plan Quarterly Plan for Rolling 18 Months Share business drivers, constraining models, and allocation rules across the enterprise to ensure consistency… • at various time scales • at multiple levels of detail • between business units

Comprehensive Analysis Validate New Plans with Historical Information • Integrate Financial & Operational Data from Multiple Sources - Data warehouses Spreadsheets Legacy / proprietary systems Oracle sources • Perform Analysis Tools Insights - Business calculation templates - Industry templates - Standard reports and graphs - Ad hoc analysis - Trends - Variances - Cause & effect relationships - Impact on profits • Share Analyses via Briefing Books

How is EPB different than OFA/OSA? Feature Installation/ maintenance OFA & OSA EPB Oracle 9 i Database Express E-Business Suite 11 i Server Client VB, Java HTML Graphics Text commentary Workflow Process management Exception alerts Data processing set up End user calculations Good Text FDI None Manual Outstanding Express expressions Business calculation templates Cell-level annotations Built in feature Automated

New Functionality

New Functionality q q q q q General Ledger Globalizations Receivables i. Receivables Advanced Collections Payables i. Payment Internet Expenses Cash Management Treasury Management q q q q Assets i. Assets Property Manager Lease Management Corporate Performance Management Corporate Governance Customer Data Management Public Sector Financials

Support for Industry Specific Processes Manufacturing • High Technology • Industrial Manufacturing • Life Sciences • Chemicals • Aerospace & Defense • Automotive • Consumer Goods Asset Intensive • • Communications T&T: Airlines Utilities Oil & Gas Service • Financial Services • Professional Services • Eng & Construction • Retail & Real Estate Mgmt Public Services • Public Sector • Healthcare: Provider • Education & Research: Hi-Ed

Analyst Remarks & Competition

Market Opportunity AMR Research predicts that Sarbanes-Oxley spend in 2005 will be $5. 5 billion with 20% of that ($1 b) on technology to automate that process. - Section 404 requires tighter controls

Corporate Governance Sarbanes-Oxley Section 404 Required Capabilities Oracle KPMG Paisley Consulting People. Soft Protiviti SAP Documentum Hyperion RCTS Workflow Management Tools P NO NO P P P P Document Management Tools P NO NO P System Configuration Tools P NO NO NO Survey Tools P NO NO Procedure Documentation Tools P P P NO NO NO P Process Control Limits P P NO NO NO P NO Sampling and Statistical Tools P P P NO NO NO Project Management Tools P NO NO NO

Market Opportunity Spending on planning and budgeting software will be $597. 5 M in 2005, rising to $832 M by 2008. Planning and budgeting software is 38% of the CPM market. 53% of that market is in North America , 34% in EMEA, and 8% in APAC. –IDC, 2004 Worldwide Financial, Analytic and Business Performance Management Market

Competitive Attack Points for Enterprise Planning & Budgeting (EPB) Enterprise Vendors Niche Vendors

Cross-Sell, Up-Sell

Corporate Governance Segment Financials, HR Technology Customer Key Pains / Business Issues ØHigh cost of compliance (30 -50% increase in audit fees; 15, 000 hours (avg. ) to comply with Section 404) ØOverlapping requirements (IFRS, Basel II, SAS 70, 21 CFR Part 11, SEC 17 a-4) ØRisk of non-compliance due to lack of employee training Message / Value Proposition ØReduce people cost of compliance with streamlined financial and operational risk management ØReduce audit cost with audit project management ØMeet shared requirement of information integrity with auditable records management ØEnforce policies and procedures Next Likely Purchase ØInternal Controls Manager ØProjects ØCollaboration Suite Øi. Learning ØRapid disclosure of material events ØNo real-time visibility into compliance exposure ØRisk of not meeting financial objectives ØMonitor financial and operational ØBalanced Scorecard exceptions in real-time ØDaily Business Intelligence ØMonitor actual vs. target variances to predict performance and compliance risk ØEnterprise Planning and Budgeting ØToo many manual controls ØNo confidence in the numbers (only 27% Finance Execs trust numbers) ØDifficulty meeting accelerated filing requirements (40% multinational companies unable to) ØSecure access and application controls (segregation of duties, Workflow) ØSingle source of truth ØConsolidated information ØE-Business Suite

Oracle Financials Cross-Sell Messaging for Existing Oracle Customers If Customer has Sell them… Why – What is the Benefit General Ledger Global Intercompany System streamlined I/C trading & reconciliation; Global Consolidation System multi-source consolidation and rapid close Internal Controls Manager for monitoring and certifying compliance Receivables Credit Management i. Receivables Bill Presentment Architecture Customers Online Customer Data Librarian Advanced Collections Trade Management i. Payment for intelligent credit decisioning support for online bill presentment, payment & history for flexibility in bill presentment for accurate customer insight and faster bill routing for cleaner customer data for streamlined deliquency and dispute resolution for automated deduction resolution for electronic payment processing Payables Internet Expenses i. Procurement i. Supplier Portal for travel and spend management for streamlined procure to pay processing for online self service supplier invoice entry & inquiries

Oracle Financials Cross-Sell Messaging for Existing Oracle Customers If Customer has Sell them… Why – What is the Benefit Lease Management Credit Management For intelligent credit decisioning support Advanced Collections For streamlined deliquency & dispute resolution Service Contracts For usage based billing and All in one contracts Property Manager Enterprise Asset Management Enterprise Project Management For facilities management and asset maintenance For new construction and leasehold improvements management / capitalization Corporate Management Activity Based Management Balanced Scorecard Enterprise Planning & Budgeting For improved profitability and resource allocation For management by exception using tolerances For planning, monitoring and controlling Budgets Multinational Financial Operations Cash Management for managing liquidity and controlling cash Treasury Management for improved visibility to and efficiency of treasury deal management Risk Management for managing financial risk w/ Treasury Ops

Customer Stories

Financial Management Customers… 13, 000 Financial Customers 8, 000 11 i Financial Customers

Financial Management Customers… High Tech Discrete Mfg Process Mfg Consumer Retail Asset Intensive Service Public Services

In Summary

Key Takeaways • New Products Enterprise Planning & Budget Bill Presentment Architecture i. Assets • Corporate Governance Spend is over $1 B; Oracle remains the solution leader; integration w/ Projects added in 11 i 10 Ÿ Receivables Integration w/ Trade Management Ÿ Stronger Credit Management with Advanced Collections Ÿ Better Cash Management and Forecasting added to Cash Management Ÿ Significant enhancements to Lease Management and Property Manager Ÿ Customer Data Management is a focus