Oracle Trade Management Presenter Pankaj Tiwari Manager

Oracle Trade Management Presenter: Pankaj Tiwari , Manager Enterprise Applications A Kumar Acharya, Business System Analyst Eswar Vadya, Business Architect (Vibrant Infotech) Norcal OAUG - Jan 17, 2008 Marvell Confidential

Agenda • Introduction – History of Marvell – Marvell’s Journey • • • Milestones Problem Statement Objectives Implementation Lessons Learnt Q & A Marvell Confidential

History of Marvell • • • Founded 1995 Fabless semiconductor Global operations – – • Annual Revenue ($MM) – – – • Marvell Confidential Israel Europe (Germany, Italy, Switzerland) Asia Pacific (Singapore, India, Japan & China) USA FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 288. 8 505. 3 819. 8 1, 224. 6 1, 670. 3 2, 095. 2 5000+ employees across US, Europe and Asia

Marvell’s Journey AUG 2001 DEC 2001 JAN 2002 MAY 2002 OCT 2002 AUG 2003 DEC 2003 JAN 2004 FEB 2004 APR 2004 SEP 2004 DEC 2004 JAN 2005 JUL 2005 AUG 2005 JAN 2006 FEB 2006 APR 2006 MAY 2006 OCT 2006 NOV 2006 FEB 2008 Marvell Confidential Galileo Go-live on Oracle Apps 11. 0. 3 Upgrade Oracle Apps 11 i (11. 5. 4) Convert Oracle Apps to Multi-Org and Fiscal Calendar Migrate North America to OM/FI to Oracle Apps 11 i Go-live OSFM Implement Rosettanet PIP 3 D 8 with 10 Sub Contractors Install Oracle 10 G i. AS for Rosettanet Upgrade Oracle Apps to 11. 5. 9 Migrate Sys. Konnect Gmb. H from BAAN to Oracle Apps 11 i Migrate RADLAN IL to Oracle Apps 11 i (New Company) Install UTF 8 to accommodate multi-byte characters Implement Basic HRMS Implement WEB based Employee Expense System for North America Implement Compensation Work Bench Implement Phase 1 ASCP (Wafer Buy Plan) Upgrade Oracle Apps to 11. 5. 10 Integrate Q-Logic Acquisition Integrate UTStarcom Acquisition Integrate National Semiconductor Acquisition Integrate Avago Acquisition Implement Marvell Penang Ltd (New Company) Implement Marvell Switzerland Ltd (New Company) Integrate Intel Acquisition Implement Marvell DSPC IL (New Company in Israel) Implement Trade Management for Avenet and Nu Horizon

Milestones Task # Mile Stones Major Tasks Planned Start Date Remarks 1 Requirement Analysis Process Flow Mapping Feb-15 -2007 Identified gaps July-15 -2007 Applied multiple patches. Oracle should come up with RUP Oct-10 -2007 Build 4 extensions and discoverer reports, modified account generator and enabled various business events 2 3 System Readiness Configuration Apply patches Setups and Identification 4 Data Conversion Ending Inventory Oct-20 -2007 Identified cut off date and populated inventory 5 Functional Testing Process Flow Testing Dec-13 -2007 Jan-15 -2007 Started receiving 867 and 846 from Nu Horizon 6 7 8 Marvell Confidential B 2 B Configuration POS and Inventory data load User Acceptance Testing Feb-2 -2008 Personalization of user interface and Web. ADI. Identified few key issues Go Live Feb-18 -2008

Problem Statement • Marvell acquired more than 25 distributors through acquisition • Contracts based on individual distributors • Pricing and Discounting are manual and maintained by marketing on Excel • Distributor Revenue and COGS are tracked on Excel and transfer to oracle in GL • Knowledge to recognize revenue limited to individual person and maintained in Excel sheets for Distributors • Custom software for Financial Planning to do analysis on distributor revenue and inventory Marvell Confidential

Objective of Trade Management Marvell wanted to ensure that the following key objectives were met by implementing Oracle Trade Management. • Implement Oracle Trade Management is to eliminate manual process in Claim, Inventory tracking and POS data reconciliation. • Weekly tracking of distributor revenue , claims and cogs • Use EDI/Rosetta net to exchange information with distributors • Automate the reconciliation process to reduce the burden on Revenue group. Marvell Confidential

Continued… • Ensure that the automated reconciliation process generates adequate audit trail to meet the SOX compliance requirements • Ensure that the solution implemented is both scalable and low maintenance • Use oracle standard APIs and Business events to build extensions and discoverer reports for reporting needs. Marvell Confidential

Implementation Team MIS Team • • 1 Manager 1 Sr Business System Analyst 1 Consultant 2 Programmer Analyst User • Senior Sponsor (VP of Finance) • Senior Management from various functional areas • 4 Key Users Marvell Confidential

Approach Implement Oracle Trade Management as solution for Distributor revenue reconciliation process. This implementation was broken down into different phases • Phase 1 – Feb 08 • • • POS Processing Claim Process Indirect Inventory Tracking Distributor Part Number Mapping Offers • Phase 2 • • Marvell Confidential Partner Management Advance Pricing Special Pricing Request Quoting

GAP Analysis • Split of revenue into Deferred Revenue and reserve • COGS Processing – Deferred COGS – COGS Recognition • Link between Item cross reference and Distributor Cross reference • Calculate the average sales price • Standard Reports • User interface Marvell Confidential

Processes – Ship and Debit • Distributor Shipment – Orders will be booked in OM with Order type Distributor – Revenue will be split into two. Distributor price list will hit deferred revenue account. Difference between Booking Price and Distributor price will hit reserve account. – Revenue and COGS will hit Deferred revenue and Deferred COGS at the time of Shipment • Price List and Item Cross reference – Oracle distributor price list will be loaded in oracle as Offers – Revenue users will do quarterly distributor price update – Item cross reference between Marvell part no and Distributor Part no will be maintained in Trade Management – POS data can be loaded using ADI( Application Desktop Integration) or via B 2 B Marvell Confidential

Processes – Ship and Debit • AR Process – – – • Claim will be created based on the claim amount provided by distributors Revenue amount will be created by Selling price provided by distributors Claims will split in two portion Difference between Marvell Booking Price and Distributor Price will hit deferred revenue account Difference between Distributor Price and BCN Price will hit reserve account Distributor provided purchase price will be recognized as revenue ( GL Journal Entry) Costing Process – Based on POS data , Deferred cogs will be transferred to COGS ( GL Journal Entry) – For Quarterly cost update , Discoverer report will calculate the cost adjustments. Users will do manual journal entry in GL for cost adjustment. Marvell Confidential

POS and Claim Processes Start Enter Disti Order Shipping to Disti Account Receivable General Ledger Offers POS & Claim Data Claim Creation Claim Approval Verify and Process POS Inventory Update CR Memo Create Upload POS and Claim Marvell Confidential COGS & Revenue End

High Level Design Extension design Marvell Confidential

Offers Upload • Upload Quarterly Distributor Price List • Used oracle standard API to upload offers Marvell Confidential

Point Of Sale (POS) Marvell Confidential

Continued… Marvell Confidential

Revenue and Cost • Automate adjustment journal creation for Revenue and Cost • Used oracle standard interface to create journals • Used oracle standard account Generator workflow modification Marvell Confidential

Continued… Marvell Confidential

Discoverer Reports Marvell Confidential

Claim Process Marvell Confidential

Claim Split Marvell Confidential

Claim Details Marvell Confidential

Continued … Marvell Confidential

Inventory Tracking Marvell Confidential

Continued… Marvell Confidential

Results Marvell derived the following key benefits • • • Weekly Deferred Revenue and Disti Inventory Tracking Centralized POS and Claim Process Common Discounting rule and exception process Auto journal for Revenue adjustment and COGS adjustment Centralized reporting for Revenue, Marketing and costing team • Auditing is much easier after establishing the process Marvell Confidential

Lessons Learnt • Planning is a key to success. • Identify the Key Users for detail information and make sure they are engaged from start to finish • A phased implementation approach. • Open to Extensions and report customization. • Open to Patches and Oracle TARs; • Good and effective communication between process changes Marvell Confidential

Q & A Marvell Confidential

Contact Details Name : Pankaj Tiwari E-Mail : ptiwari@marvell. com Name : A Kumar Acharya E-Mail : aacharya@marvell. com Name : Eswar Vadya E-Mail : evadya@vibrantinfotech. com Marvell Confidential