Retail SolutionsPresenter’s Name:Presenter’s Title:
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• Leadership in Retail
• Innovation in Industry Solutions
• Results Achieved by Oracle Customers
Agenda
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Oracle in RetailDid You Know?
9 of the top 10 North American retailers useOracle Applications to run their business
16 of the top 16 global grocers use Oracle Applications and Technology
20 of the top 20 global retailers depend onOracle Retail Applications and Technology
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
The Challenges We’re Hearing
Accurate Customer Demand Information:How do we ensure we have the right products on the shelf?Out-of-Stocks are the single greatest pressure retailers face.
!
Customer Loyalty:How do we continue to satisfy the needs of today’s demanding customers?More retailers are using science to support the art of the customer relationship.
!
Global Expansion:How do we prepare our organization for sustainable growth?As retailing becomes increasingly consolidated and global, there is a growing feeling of exposure inthe supply chain and in staffing.
!
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Analyst Quotes
“Oracle Retail took a strong early stance on standardizing on a Java platform. This results in a product that is more mature than other Java solutions on the market, and is a strong offering in the overall market. For retailers with heavy cross-channel requirements, Oracle Retail scored top marks.”
“Oracle received the highest cumulative rating across seven categories of merchandise management functionality.
“From the proportion of private label in its overall mix to the brand of its inventory software (Oracle), is one key to the company’s (Nordstrom) success.”
“Oracle’s #1 ranking in RIS News’ 2006 Software LeaderBoardprovides true validation of what Oracle set out to accomplish with its major focus on the retail industry.”
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• Leadership in Retail
• Innovation in Industry Solutions
• Results Achieved by Oracle Customers
Agenda
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Optimize Planning and Merchandising Decisions
Improve Localized Assortments
Enable Rapid Expansion
Oracle Retail SolutionsTransform the Economics of Retail
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Optimize Planning and Merchandising Decisions
Requirement Oracle Capability The Oracle Difference
Ranked #1 retail software company
Develop better store /SKU level merchandising plans
Integrated Merchandise Planning & Execution
Increase store promotion profitability
Most innovative solutions in retail promotions planning
Promotional Planningand Optimization
Make better markdown decisions Retail Price Optimization Fastest ROI for retailers
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Integrated Merchandise Planning and ExecutionLink Strategic and Merchandise Planning
• Plan using either unit volume or sales values and convert where necessary to support role-based views
• Utilize pre-defined templates to create top-down, middle-out, or bottom-up plans
• Develop, reconcile, and approve pre-season and in-season plans
• Evaluate KPIs on sales, inventory, gross margin, open-to-buy, etc.
• Support cost or retail accounting methodsDC / Store and Item
Retail Channel
Product Category
Corporate Plan(Sales, Inv & Margin goals)
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Nexcom ImprovesProduct Availability
SOLUTIONS• Oracle Retail Merchandising Solutions
CHALLENGES / OPPORTUNITIES• Needed to upgrade its supply chain operations
• Getting the right inventory in the right stores
CUSTOMER PERSPECTIVE“Last fiscal year, the Oracle Retail Merchandising System resulted in an improved product availability of 5.5% points – that high level of availability translated into an improvement in cumulative retail sales totaling 5.2% growth.”Richard GarzaChief Information Officer
RESULTS• Product availability improvements• Better cumulative retail sales• Improved ability to forecast more
accurately at the location/item level
COMPANY OVERVIEW• Retail operation direct operations US $2.3B
• 50 stores and 8 DC’s
• Multiple business operations and formats
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Optimize Planning and Merchandising Decisions
Improve Localized Assortments
Enable Rapid Expansion
Oracle Retail SolutionsTransform the Economics of Retail
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Improve Localized Assortments
Requirement Oracle Capability The Oracle Difference
Build localized store assortments
AssortmentOptimization
Unique industry-leading statistical models
Most proven solution for soft and hard lines retailers
Build store level detail into central buy plans
Store / SKU Level Forecasts
Allocate and replenishby store
Rated #1 in functionality by AMR Research
Push andPull Optimization
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Assortment OptimizationAchieve the Ideal In-Store Product Mix
• Leverage rules-based allocation to align store merchandise by department or category
• Use unit-driven demand to tailor assortments and space allocation at store/ shelf level
• Plan receipt flow andpre-pack configurations
• Drive replenishment flow by aligning receipts with available resources
• Reconcile allocation to merchandise plan
Outlets
10 Units
50 Units
50 Units
50 Units
Specialty Stores
30 Units
10 Units
20 Units
40 Units
Shoes
Ready-to-Wear
Item-Level Merchandise Plans
Distribution Center
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CHALLENGES / OPPORTUNITIES• In stock positions on key selling items were low• Needed to improve financial controls• Improve customer experience by having the right
product at the right price available
CUSTOMER PERSPECTIVE“Perhaps the system that had done the most to boost Nordstrom’s performance is a perpetual inventory system the retailer put into place in the first quarter of 2003. The solution from Oracle gave us a level of visibility into location-specific SKU data that was unprecedented. Additionally, the solution brought new markdown-management and replenishment capabilities to Nordstrom. The rollout kicked off 32 consecutive months of same-store sales growth and expanded our gross margin by 300 base points.”Allen O’Neal, Manager, Logistics Systems
RESULTS• SG&A improved 3.1%• Pre-tax earnings 7.5% growth since 2001• Stock price nearly quadrupled since 2002• Gross margin 300 basis points higher• In-stock percentage up 500 basis points
COMPANY OVERVIEW• Leading Specialty retailer with over 185 stores • Revenue $7.6B • Multiple format stores
SOLUTIONS• Retail Merchandising • Retail Optimization• Retail Replenishment• Financials• Human Resources
Nordstrom ImprovesGross Margin
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Optimize Planning and Merchandising Decisions
Improve Localized Assortments
Enable Rapid Expansion
Oracle Retail SolutionsTransform the Economics of Retail
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Enable Rapid Expansion
Requirement Oracle Capability The Oracle Difference
Control brand consistency360 Views,Workforce Mgmt, Digital Asset Mgmt
Most complete brand management solutions to deliver consistent customer experience
Most complete support for complex business models
Adapt to new formats and acquisitions
MultipleOrganization Support
Rapidly scale for newstore growth
Used by 17/20 largest retailers
Integrated Merchandising andFinancials
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Comprehensive Workforce ManagementControl Brand Consistency
• Develop and enforce associate hiring profiles• Create effective training content, deployment and measurements• Manage store behaviors and compensation
Plan, Recruit& Hire
Review& Reward
Develop& Retain
Exit /Retire
BrandConsistency
• Align recruitingwith the needs of the organization
• Plan, budget, and forecast headcount
• Track applicants from recruit to hire
• Streamline on-boarding process
• Track employeecompetencies
• Deliver access to blended learning content and community
• Manage career development
• Automate review processes
• Communicate performance metrics real-time
• Measure and reward store behaviors
• Integrate compwith associate development
• Provide access to retirement benefits
• Maintain ex-employee data for archive / compliance
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
CHALLENGES / OPPORTUNITIES• Growing sales through repeat customers with
excellent service
• Drive consistent programs across all HR functions
CUSTOMER PERSPECTIVE“We’ve already had a decline in turnover since we implemented PeopleSoft Enterprise and Authoria. We are confident that PeopleSoft Enterprise can help us strengthen our employee relationships and make us an employer of choice in our industry.”Nancy Miller, VP of Employee Services
RESULTS• Provide self service functionality to it’s
133, 000 users• Standardized processes across all HR
functions• Ability to process over 120,000 weekly
time entries
COMPANY OVERVIEW• Over 1300 restaurants, across multiple brands
• Employees: 133,000 employees
• Revenue: US$5.7B
SOLUTIONSPeopleSoft Enterprise
• Human Capital Management
• Benefits Administration
• Payroll
Darden Serves in Multiple Brands
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• Real Time Visibility to Retail Back-office Corporate Administration, including Financials and Real Estate
• Scale without Losing Customer-Centric Focus
Enable Rapid Enable Rapid ExpansionExpansion
• Provide the Right Products all the Time
• Differentiate Store Assortments by Customer ProfileImprove Localized Improve Localized
AssortmentsAssortments
• Accurate Demand Information for Better In-Stock Positions
• Business Intelligence behind Every Planning Decision
Optimize Planning Optimize Planning and Merchandising and Merchandising
DecisionsDecisions
Oracle Retail Solutions Summary
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Oracle’s Retail Footprint
CustomerDemand &Enterprise
AnalyticsAnalytics CRM & MarketingCRM & Marketing Loyalty Call Center Sales Field ServiceMarketing Order Mgmt Pricing CTOWeb Store
Supply ChainPlanning
Supply ChainExecution
Business OperationsBusiness OperationsMerchandise Planning
& OptimizationMerchandise Operations
Store Operations
InfrastructureInfrastructureIntegration and Collaboration
Enterprise Infrastructure
Corporate AdministrationCorporate Administration
Indirect Procurement Projects
EPM Financials
Compensation
Human Resources Real Estate
ITITHRHRHelpdesk
Store Inventory Mgmt
Point-of-Sale
Workforce Scheduling
Learning Mgmt
Store Helpdesk
Workforce Comms
TransportationManagement
ReplenishmentOptimization
Sourcing
Warehouse Management
Home Delivery
Advance InventoryPlanning
Supply NetworkOptimization
Value Chain Allocation
Value ChainCollaboration
PIMMerchandiseFinancial Planning
Assortment Planning
Item Planning
Category Mgmt
Price Optimization
Promotion Planning& Optimization
Trade Management
Invoice Match
Merchandise Management
Price Management
Sales AuditDemand Forecasting
Returns Management
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
The Only Complete Retail Solution
PartnersPartners PeoplePeoplePeople
PlatformPlatform
ProcessProcess
ResultsResults
Oracle Uniquely Delivers a Competitive Advantage by Leveraging People, Partners, Process, and Platform
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
People: Oracle’s Ecosystem Creates Advantage
950 customers participating in Customer Advisory Boards
500 Industry & Product strategy council members
35 Fusion strategycouncil members
1,300 participants in early customer adoption programs
425 user groups
30,000 applications customers
220,000 database customers
5,000 middleware ISVs
1,700 application ISVs
9,000 database ISVs
30,000 middleware customers
29,000 developers, support engineers
and consultants275,000 275,000
Customers Customers Benefiting Benefiting
from Shared from Shared InnovationInnovation
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
DatabaseDatabase
MiddlewareMiddleware
ApplicationsApplications
ConsultingConsulting
TrainingTraining
SupportSupport
Process: Top to Bottom Support for Retail
#1 Enterprise Software Vendor• ERP, CRM, SCM and more• Most scalable, reliable, secure infrastructure• Most complete range of on-demand and on-premise
deployment options
Built-In Retail Capabilities• Integrated merchandise planning and execution• Item planning for store / SKU level forecasts• Localized assortment planning• Optimized store level allocations & replenishments• Globally scalable human resources management
including temporary labor scheduling
Largest Software Support Team• 21,000+ development and support engineers • 145+ countries
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Platform: Oracle Fusion Middleware Leads the MarketBestBest--SellingSelling
• 32,000+ Customers Deployed • 70% of World’s 50 Largest Firms• $1B+ Business
Oracle 55%
Oracle 55%
Others 45%
Others 45%
Source: Gartner’s Market Share Application Integration & Architecture
Source: Gartner’s Market Share Application Integration & Architecture
40%
30%
20%
10%
0%
39.6%
6.7% 7.1%
Oracle IBM Total Mkt
Growth Rates
#1 Middleware By Share
Fastest Growing Middleware
Highest RatedHighest RatedOnly Vendor in Gartner and
Forrester Leader Quadrants for All Middleware Components
Source: Forrester Research Ranking of Application Platform Servers
Oracle
IBMSAP
Microsoft
0% 5% 10% 15% 20% 25% 30%
SOA Vendor of Choice
Oracle Leads the Pack
IBMSAP
SUN Microsystems
Microsoft
Novell
LeadersStrongPerformersContenders
Strong
StrongWeakWeak
Strategy
Market Presence
CurrentOffering
Oracle
Most ComprehensiveMost ComprehensiveIndustry's Most Comprehensive
Platform for Developing, Deploying& Integrating Enterprise Apps
Rich Functionality
Integrity Management
Business Intelligence
SOA Management
Business Rules Engine
Activity Monitoring
BPEL Process Management
Portal, Collab,Content Mgmt
EnterpriseService Bus
J2EE Server & Dev Tools
SAPSAPIBMIBMORCLORCL
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
• Leadership in Retail
• Innovation in Industry Solutions
• Results Achieved by Oracle Customers
Agenda
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Recently, 8 publicly traded companies across the globe cited results from Oracle Retail projects to their shareholders as reasons to invest in their stock
What Customers are Achieving
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Retail Customer Results
“The combination of Oracle, Retail, and ProfitLogic is appealing on many levels, but for me the real standout is the ability to integrate planning, optimization, and execution on one common platform.”
“We are laying the foundation for the future of our business and our ability to provide customer and shareholder value.”
“The ability to make pricing decisions according to local customer preferences will enhance the shopping experience for our customers and contribute to our overall goals of improved store productivity.”
“In order to ensure fresh merchandise for our customers, we are making merchandising the heart of our operations, building upon the Oracle database.”
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
Has an unmatched retail install base with 17 of the top 20 global retailers
Is ranked #1 in Retail Software by RIS News, 2006
Delivers unparalleled speed-to-value with over 80 successful implementations at retailers in the last year
Only Oracle…
The Oracle Difference
Appendix
Additional Customer Success
Stories
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
CHALLENGES / OPPORTUNITIES• Limited cross and up-sell opportunities due to
disparate systems
• Customer information resided in four front-end systems
CUSTOMER PERSPECTIVE“Oracle brings unity to our entire customer interaction. That was clearly a differentiator. We also gained a certain comfort level by having a single vendor from the applications all the way through the technology stack.”Patrick PiccininnoVice President Information Technology
RESULTS• Complete integrated view of customer
data• Increased access to data so management
can resolve issues more quickly• Improved operational efficiencies for
franchisees
COMPANY OVERVIEW• More than 1,200 Restaurants
• Revenue: US$ 250M in revenue
SOLUTIONS• Customer Data Hub
• Tele-Service
• Database
• Middleware
IHOP Improves Efficiency for Franchisees
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
SOLUTIONS• Oracle Database 10g
• Oracle Application Clusters
CHALLENGES / OPPORTUNITIES• High maintenance costs
• Low system performance
CUSTOMER PERSPECTIVE“Our migration to Oracle Retail Application Clusters 10g from our legacy, single-instance fail-over model required minimal changes to our applications. Following or migration, we have improved the performance of our applications and user satisfaction.”Jim Meredith, IT Manager
RESULTS• Created a more reliable, scalable, & cost
effective data infrastructure• Reduced ongoing administrative support • Improved batch execution times and
significantly reduced performance complaints
COMPANY OVERVIEW• Retail and distribution
• Over 500 employees
• US$ 73M in revenue
Replacements Improves IT Performance and Reliability
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
SOLUTIONSJD Edwards EnterpriseOne Solutions
• Supply Chain Management
• Financial Management
CHALLENGES / OPPORTUNITIES• Needed to upgrade its legacy systems
• Needed to streamline core business processes
• Standardize on ERP system
CUSTOMER PERSPECTIVE“Ghirardelli’s goal is to be number one not only in terms of chocolate but also in terms of customer service – it’s having the right product at the right time to meet all our customer’s needs.”Margaret StrattonDirector of Logistics
RESULTS• 50% reduction in monthly close time• 99% inventory accuracy benchmark, and
increased visibility• Improved customer satisfaction, with
built controls and accountability
COMPANY OVERVIEW• Retail and distribution
• Revenue: US$130M
Ghirardelli Chocolate
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
SOLUTIONS• Oracle E-Business Suite
CHALLENGES / OPPORTUNITIES• Centralize sourcing and procurement operations for
the entire company
• Lower total cost of goods
• Optimize $7 billion annual spend
• Update existing financial system and reduce customizations
• Effectively track costs and avoid budget overruns
CUSTOMER PERSPECTIVE"We bought the entire Oracle E-Business Suite because it was pre-integrated, pre-tested, and pre-defined. We've gotten a lot of leverage and a lot of benefit from proceeding that way.”Keith Morrow, CIO
RESULTS• System-wide procurement solution to
create ‘significant' savings• Greater efficiencies cut closing times by
one-third• Timely access to project data allows tight
control over capital expenditures Proactive Construction Project Tracking
• Consolidated hundreds of individual business systems into an integrated, complete solution
COMPANY OVERVIEW• Convenience stores with 5,800 stores
• Revenue: US$ 1.1B
7-Eleven