Oracle Application Integration Architecture Sue Watkins Principal Solution

Oracle Application Integration Architecture Sue Watkins, Principal Solution Consultant January 19, 2010 © 2009 Oracle Corporation – Proprietary and Confidential 1

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. © 2009 Oracle Corporation – Proprietary and Confidential 2

What is Application Integration Architecture (AIA) • Oracle AIA reduces cost and complexity by enabling companies to create business process integrations across heterogeneous applications. • AIA enables business process integration with prebuilt integrations and a “starter kit” for companies to build their own integrations. © 2009 Oracle Corporation – Proprietary and Confidential 3

Today’s Enterprise Environment Business performance is enabled by a mix of diverse Applications Customers Business Challenge: Disjointed, unreliable information flow that hinders performance Employees Partners Analytics Applications Collaboration Customer Relationship Management IT Challenge: Incompatible systems limit business agility and ROI Enterprise Resource Planning Content & Sear Order Management Supply Chain Management Legacy Applications Industry Applications Transportation Management High Cost in supporting Data Integration © 2009 Oracle Corporation – Proprietary and Confidential 4

Oracle has experience building process integrations across it’s best-in-class applications Composite Business Processes 3 rd Party Apps TOGETHER BRING IT ALL ISV Partners Legacy Apps With Oracle Application Integration Architecture (AIA) © 2009 Oracle Corporation – Proprietary and Confidential 5

Business Process Integration What we are doing at Oracle with our best-in-class apps • • We model business processes… We build business processes using these models… We deliver these processes as complete solutions! We developed extensible solutions for business agility! Application Integration Architecture © 2009 Oracle Corporation – Proprietary and Confidential 6

Application Integration Architecture Components • Reference Process Models Best Practice Business Processes • Process Integration Packs Pre-built, out of the box, integrations across Oracle Applications • Foundation Packs Build business processes across any of your applications utilizing a standardized approach and methodology • Powered by Oracle Fusion Middleware Leverage Oracle’s best-in-class, standardsbased SOA Middleware platform © 2009 Oracle Corporation – Proprietary and Confidential Complete. Open. Integrated. 7

Reference Process Models: Business Process Approach IT and business stakeholders collaborating for better alignment around requirements 1 Cross-Industry Reference Process Models • • 2 Marketing Sales Order Fulfillment Customer Service Supply Chain Planning Product Management Procurement • • Materials Management and Logistics Project and Grant Management Financial Control and Reporting Cash and Treasury Management Asset Lifecycle Management Enterprise Information Management Workforce Deployment • Business User View • 20+ Enterprise Processes • Based on Fusion Activity flows • Mapped to Service artifacts Industry Reference Process Models Utilities Retail Communications • Product Lifecycle • Product Management • Sales Management • Billing & Revenue Mgt • Procurement • Fulfillment • Sales • Inventory Management • Assurance • Order Fulfillment • Financial Control & • Billing • Customer Service Reporting Insurance Financial Services • Claims • Financial Control 3 • Industry Specific versions • Pain Point Focused • Drive Solution Sets Composite Business Flows • • • Order to Cash Design to Release (AIA for SAP) Lead to Order Product Master Data Management Financial Operations Control © 2009 Oracle Corporation – Proprietary and Confidential • • • Customer Master Data Management Sales and Operations Planning Transportation Order Management* Driver Management* Financial Management* • PIP Specific • Task Level * New in AIA RV 2. 4 8

Process Integration Pack (PIP) Connect People, Processes and Systems with Pre-Built Business Process Business Benefits IT Benefits ü Richer functionality ü Quick and detailed customer information ü Faster time to value than building yourself ü More reliable and less risky ü Faster process execution; less errors ü Extensible and upgradeable to protect ü Increased individual and corporate efficiency customizations to end-points and processes ü Easier to optimize and evolve Siebel CRM Integration Pack for Oracle E-Business Suite Order Management Integrated Order to Cash Process Oracle E-Business Suite Create Quote/Order Siebel Synchronize customer Check Availability Sales: Customer Relationship Management • Cust Svc Reps • Inside Sales © 2009 Oracle Corporation – Proprietary and Confidential Configure Product Payment Pricing Order Management System Application Integration Architecture Process Integration Pack 9

Order 2 Cash PIP Processes • Pre-built integrations include Data and UI : • New Order Creation • Order Status Update • RMA orders • Synchronization of • ATP Check • Customers (2 -way) • Credit Check • Products • Payment Authorization • Assets • Shipping Cost Calculation • Pricelists • Siebel CRM Integration Pack for Oracle E-Business Suite Order Management • Oracle E-Business Suite • Create • Siebel Quote/Order • Synchronize • Sales: • Cust Svc Reps • Inside Sales © 2009 Oracle Corporation – Proprietary and Confidential Product • Check Availability • Customer Relationship Management • Configure customer • Payment • Pricing • Order Management System • Built on Foundation Pack 2. 3 10

Pella Aims to Give Sales a Lift with Integrated CRM On Demand Solution COMPANY OVERVIEW • Pella Corporation is a leader in designing, manufacturing, and installing quality windows and doors for businesses and homes worldwide • Industry: Industrial Manufacturing • Employees: 8, 600 CHALLENGES/OPPORTUNITIES • Introduce disciplined, high-efficiency sales processes for the • • • trade and commercial sales teams Provide visibility into sales interactions with multiple customer stakeholders, including architects, building contractors, and installers Ensure a rapid rollout to a diverse sales force on a variety of computer systems Minimize up-front capital costs Allow for integration with existing applications, including Oracle E-Business Suite Allow users to easily configure the system to match individual needs and evolving business processes SOLUTIONS • Oracle CRM On Demand • Oracle Application Integration Architecture © 2009 Oracle Corporation – Proprietary and Confidential CUSTOMER PERSPECTIVE “Oracle Application Integration Architecture allowed us to quickly integrate Oracle CRM On Demand with our quoting system and other business applications, so salespeople spend less time tracking down information and more time selling. ” Teri Lancaster, CRM On Demand Project Manager RESULTS • Enabled fast rollout using softwareas-a-service approach • Boosted sales force efficiency with automated activity tracking and reporting • Extended solution by integrating with existing applications, including Oracle E-Business Suite, quoting system, and Microsoft Outlook June 2009 11

Foundation Pack: “Starter Kit” Jumpstart Custom Integration Development Management Deployment 30 - 40% Reduction Cost/Complexity Testing Coding Management Deployment Technical Design & Architecture Functional Design Business Process Design Requirement Analysis Custom SOA Integration © 2009 Oracle Corporation – Proprietary and Confidential Testing Coding Technical Design & Architecture Functional Design AIA TCO Factors: • Pre-defined Process Models • Enterprise Objects & Service • Service Catalog • Test Utilities & Validation Business Process Design Requirement Analysis AIA FP Integration 12

Building Blocks of AIA & SOA Enterprise Business Objects & Services CRM ERP Enterprise Business Service & Enterprise Business Objects Billing Shipping • Standardized semantic representation of business objects e. g Invoice, Customer, Sales Order, Payment, etc • Standards compliant, adopting OAGIS, UN/CEFACT and • ISO standards • Rationalized against Oracle Applications and Fusion Apps • Extensible and Upgradeable © 2009 Oracle Corporation – Proprietary and Confidential 13

Enterprise Business Service • Self-contained • Standardized businesslevel service definitions: CRUD • Application agnostic • Implemented by various Oracle and non-Oracle applications Query Customer Information Siebel Query Customer Info ABC Service Siebel CRM E-Business Suite Query Customer Info ABC Service E-Business © 2009 Oracle Corporation – Proprietary and Confidential 3 rd Party Query Customer Info ABC Service 3 rd Party 14

Foundation Pack Utilities to help you develop custom SOA Governance Oracle Enterprise Repository Composite Applications Validation System SOA Development B 2 B Security Integration Toolkit B 2 B Connector Service OWSM • Service Constructor • EBO Designer • PIP Auditor • Mapping Generator SOA Visibility SOA Quality • Composite UI Helper SOA Management Error Handling Framework Uniform Error Resolution Business Process Driven Lifecycle Workbench BAM Lifecycle Development Business Monitoring © 2009 Oracle Corporation – Proprietary and Confidential AI A Business Process Architect Reference Process Models 15

Foundation Pack: Example of Custom Integration Siebel Service to EBS Depot Repair: Returns Management AIA (Process Flows) Process Flow • Reuse Enterprise Objects & Services Create Customer • Customer Create Svc Request • Products • Service Request Create Svc Order* Siebel Service Create RMA EBS Depot • Price List • Utilize Oracle’s Development Coding Examples for “where to begin” Update RMA status Upd Svc Order status Update SR • Leverage Oracle’s existing testing and validation tools for faster development (Non/Process - Data Flows) Data Flow Customer Product Siebel Price List Assets © 2009 Oracle Corporation – Proprietary and Confidential EBS • View Service Catalog to see what objects/services are used in what integration when making changes 16

AIA Powered by Fusion Middleware PIPs/Composite Business Processes AIA Foundation Pack Enterprise Business Services/Objects AIA Lifecycle Management Workbench © 2009 Oracle Corporation – Proprietary and Confidential Reference Process Models EBO Designer Developer Productivity Tools CAVS Error Handling Framework 17

KPN Drives a Customer-centric Approach and Simplifies IT Systems COMPANY OVERVIEW • A leading provider of telephony, internet, and television services, serving The Netherlands, Germany, Belgium, and other areas of Western Europe • Industry: Communications • Employees: 43, 500 • Revenue: US$16. 18 billion CHALLENGES/OPPORTUNITIES • Attract new customers, retain more than 30 million existing customers, and remain competitive as a multi-play provider • Create a more customer-centric business, aligning IT systems to meet this objective • Increase customer satisfaction by ensuring customer service representatives have accurate and consistent data in the call center SOLUTIONS • • Oracle Application Integration Architecture for Communications Siebel CRM Oracle Communications Billing and Revenue Management Oracle Financials Oracle Human Resources Oracle Portal Oracle Database © 2009 Oracle Corporation – Proprietary and Confidential CUSTOMER PERSPECTIVE “Customers should be able to specify for themselves, via a selfservice model, what services they want to receive. Oracle helps us achieve this, with an integration platform and applications, but above all, with a good understanding of the telecommunications market. ” Jan Muchez, Chief Information Officer RESULTS • Saved time and costs by using Oracle’s standard integration • Accelerated time to market for new products and services by 30% • Simplified IT landscape, thus reducing administration costs • Avoided risks and costs in requiring the provider to build integrations August 2009 18

AIA Drives Savings through the Entire Integration Lifecycle AIA Case Study Results* Implement Traditional custom integration 20% Cost reduction Application Integration Architecture Upgrade 55% Cost reduction Maintain 50% Cost reduction *Source: 5 year TCO Oracle Study with Telco Customers, 2008 © 2009 Oracle Corporation – Proprietary and Confidential AIA Case Study Results* Average Initial Implementation Time & Effort Average Upgrade Time & Effort 10 Months 7 Months 30% 3 Months 1. 5 Mos 50% 19

AIA Delivers Increasing Levels of Value while Lowering TCO • Unify your application portfolio through packaged integrations • Pre-built integrations reduce your development cost and risk • Extensible and upgradable to protect customizations to end-points and processes Levels of Value Do it yourself Out of the Box Buy PIPs Instead of Building Them Jump-start your Integration with AIA Foundation Pack • Best practice integration methodology reduces delivery risk • SOA lifecycle management ensures control and visibility • Pre-built services and common object model speeds time to value $$$ Use SOA Fusion Middleware - Tool. Kit • Comprehensive and integrated suite, best for integration with Oracle Applications • Greatest ease-of-use supporting all SOA Patterns: Batch (ODI), Real Time (ESB), Business Process (BPEL Process Manager), Event Management (BAM) $$$ • Mature SOA platform with market leading interoperability, security, reliability, scalability, governance © 2009 Oracle Corporation – Proprietary and Confidential 20

Nucleus Research June 2008 "With its relatively low initial cost, rapid time to deploy, and pre-built integration, Oracle CRM On Demand AIA reduced the risk of the integration project for Rackable. It also offered relative ease of use compared to more complex inhouse systems and could be easily customized, with end users adding fields or populating the screen with data as needed. " © 2009 Oracle Corporation – Proprietary and Confidential 21

AIA Available and Roadmap Products PIPs & Foundation Packs CY 2010 CY 2009 AIA For Communications 2. 0 Released April 2007 Dec 2007 May 2009 Introduced AIA Foundation Pack 2. 1 Mar 2008 Aug 2008 Sep 2008 AIA Release 3. 0 • Banking & Wealth Mgt FP • Insurance FP (more EBOs) Industry Foundation Packs • Utilities and Insurance • BEA FP Certification AIA Launched ! 1 st set of PIPs Released AIA Release 3. 1, 3. 2 Certification on 11 G and More PIPs Jan 2009 AIA Release 2. 2 • Order to Cash V 2 (Siebel & Ebiz) • Design to Release (Agile & Ebiz) • Trade Promotions (Dem & SEBL) • Quote to Order (CRM OD to SEBL) • AIA for Comms - Updated AIA Release 2. 4 • AIA for Communications • PIM for Design to Release • Logistics Fleet Mgmt (3 PIPs) • Demantra to Hyperion • New Certifications • Order to Cash • Design to Release AIA Release 2. 3 Foundation Packs • Communications Foundation Pack • Introduced AIA Composite App New PIPs • Oracle Financial Accounting Hub to People. Soft GL • CRM On Demand to JDE • Retek to People. Soft GL • Agile PLM to SAP • Customer MDM PIP (Siebel UCM) • Product MDM PIP (Oracle PIM) AIA Release 2. 5 New PIPs & Direct Integrations • People. Soft HR Person, Profile, Job Data • Financial Ops: Retail Merchandising to EBusiness Suite • Utilities Field Work: CC&B to MWM and WAM • PLM Variant Management: Agile PLM to EBusiness Suite • Lead to Order: CRM On Demand to JDE World • Lead to Order: CRM On Demand to EBusiness Suite • Order to Cash for SAP • Customer MDM for SAP • Project Mgt: Primavera to E-Business Suite • Project Mgt: Primavera to JD Edwards E 1 • Design to Release: Agile PLM to JDE E 1 • Oracle Value Chain Planning to JDE E 1 (DI) • Siebel CRM to Incentive Compensation (DI) • Demantra Mgt to People. Soft SCM (DI) *Timeframes are subject to change at any time and not a commitment to deliver. © 2009 Oracle Corporation All capabilities and dates @ 2009 Oracle Corporation –-Proprietary and Confidential are for planning purposes only and may not be used in any contract 22

Why Customers Choose AIA $ Value Open Ecosystem ê Pre-built integrations ê Lower TCO ê Designed for Fusion Apps compatibility ê Reusability ê AIA Centers of Extensibility ê Loose coupling of apps through SOA ê Focus on configurations not rebuilds ê Successfully deployed in Methodology ê Best practices ê Prescriptive methodology Excellence ê AIA Partner Codevelopment ê ISV Plug ability Model ê Proven by Oracle complex, high-volume environments © 2009 Oracle Corporation – Proprietary and Confidential 23

Only Oracle Delivers Synchronized Advantages across Applications and Technology Best in Class Applications Industry Leading Technology Best Practice Expertise Extensive Partner Ecosystem © 2009 Oracle Corporation – Proprietary and Confidential 24

Oracle Application Integration Architecture Reduce Complexity and Accelerate Delivery Customer Goal: Integrated Business Process • Best Practice Processes Reference Process Models Composite Business Flows Foundation Pack • Standardized Composition Framework 100+ Objects, 1000+ Services Cross Industry and Industry Objects Business Process Composition Framework Canonical Layer (EBO/EBS) Pre-Defined Reference Patterns Integration Architecture FMW Methodology Integration Governance Tools Developer Utilities… • Pre-built Composite Process Integration Packs Pre-built Composite Application Processes 30+ PIPs To Date AIA For Communications © 2009 Oracle Corporation – Proprietary and Confidential Order to Cash Design to Release Oracle to SAP Order to Bill Cust. MDM Prod. MDM Others… 25

AIA: Summary • Oracle AIA reduces cost and complexity by enabling companies to create business process integrations across heterogeneous applications. • Customers can reduce cost and risk by implementing prebuilt integrations or use a starter kit to build their own integrations. © 2009 Oracle Corporation – Proprietary and Confidential 26

Q&A © 2009 Oracle Corporation – Proprietary and Confidential 27 27