Oracle Business Models

Introduction to OBM

E-Business Strategy Group

Fall, 2002

Oracle Internal Only

 What you will learn today…

Why OBM?
What is OBM?
The Oracle Business Flow Selector
Using OBM in Sales & Implementation
Value of OBM

OBM: Think like a Customer

 Why Should I use OBM & Flows in a sales situation?

Establish credibility by engaging the customers on

their ground, in their terms
Flows address the customers’ issues
Easy to recognize content leads to agreement more
quickly
– Yes, that is what our company wants to do…
Focus on automating THEIR business processes
– Don’t get caught in feature/function “shoot outs.”
Change the game in competitive deals
– SAP, PeopleSoft, Siebel talk about processes & flows, but “where’s the
beef?”
– Oracle’s got it cooked and ready to serve!

OBM: Think like a Customer

 Characteristics of Today’s Applications Market

• Complex
• Global
• Rapid Time to Market
• Value required now
• External & Internal Suppliers & Customers must
be linked
• Consistent cross organizational information required

OBM: Think like a Customer

How we sell:
The Oracle Integrated Application Solution
Customer Supply
Relationship Develop Chain
Management
Sell Management
Plan
Enterprise Management
Market
Finance Projects Procure
HR
Service
MaintenanceManufacture
Fulfill

Data Applications
Server Server

Transitioning from tech stack/feature function to business case

What Customers Want:
Application Solutions which Manage the Business

Question: “How do I do my job?”

In v e n to ry M g r A c c o u n tin g M g r

R e c e iv in g C le rk M a te ria l H a n d le r In s p e c to r A P C le rk A c co u n ta n t A R C le rk
 What do Oracle Customers really want?

Executive:

How do I manage the business?

How do I measure performance?

In ve nto ry M gr A ccou n tin g M gr

How do I manage multiple lines
R e ce ivin g C le rk M a te ria l H a n d ler In spe ctor A P C le rk A cco u nta nt A R C le rk of businesses consistently?

How do I communicate business

expectations to my subordinates?

Performance Mgt
OBM: Think like a Customer
 What do Oracle Customers really want?

Managers:

How do I manage my business

In ve nto ry M gr A ccou n tin g M gr
operations?
R e ce ivin g C le rk M a te ria l H a n d ler In spe ctor A P C le rk A cco u nta nt A R C le rk What are my KPI based
objectives?
What are my key processes?
How can I ensure that my workers
will do the right job?

Operations Mgt
OBM: Think like a Customer
 What do Oracle Customers really want?

In ve nto ry M gr A ccou n tin g M gr

R e ce ivin g C le rk M a te ria l H a n d ler In spe ctor A P C le rk A cco u nta nt A R C le rk Line Worker :

How do do my job?
How do I meet management
objectives?

Work Mgt

OBM: Think like a Customer

 How can Oracle address what customers want?
Answer: Oracle Business Models
Plan Source Make Market Sell Support
Opportunity to Global Forecast Campaign
To Results Call to
Plan to Resolution
Forecast to Plan Call to Order
Campaign
Click to
Click to Order Resolution
Design to Build for Discrete Manufacturing

Order to Dispatch
Delivery to Repair

Depot

FLOWS
to Repair

Performance Mgt
Negotiate to Receipt Contract to
Renewal
Internet Incentive to
Expense Payment
To Payment
Back Office
People to Paycheck Project to Profit

Accounting to Financial Reports

Operational Mgt BUSINESS PROCESS

Work Mgt PROCEDURES

Develop
Develop
Sell
Sell
Plan
APPLICATIONS
Plan
Enterprise
Enterprise
Enterprise
Market Management
Management
Management
Finance
Procure
Procure
Finance Projects
Projects
Finance
Finance
HR
HR
Service
Service
Projects
Projects HR
Manufacture
HR
Manufacture
Fulfill
Maintenance
Maintenance

OBM: Think like a Customer

What is OBM?

Oracle Business Models communicate Oracle

Application leading practice business process
management through flows, business processes, and
procedures.

OBM: Think like a Customer

 OBM Key Terms
Business Flow: A sequence of related business
processes designed to achieve a critical objective,
incorporating leading business practices. A flow can
also be a series of flows.

Business Process: A planned series of work activities

with defined inputs and results.

Procedure: A set of role based work instructions

required to perform a business process.

OBM: Think like a Customer

What is an OBM Business Flow?
 A comprehensive set of integrated business processes that
span the Enterprise
 Intended to achieve a specific objective
 Measurable
 Crosses organizational boundaries

Plus…
 Aligned with corporate business goals
 Measurable and can be continuously improved
 Incorporates leading practices
 Implementable

OBM: Think like a Customer

A word about Leading Practice

 OBM developed in a collaborative fashion by Oracle

Consulting working with customers and Oracle Development

 Based on many years of OC experience in many

implementations globally

 OBM Flows and Procedures developed in conjunction with

Test Scripts

 Based on effective use of Oracle Applications at clients to

manage business activity

OBM: Think like a Customer

Requisition to Receipt - Direct: Business Flow
Requisition to Receipt

Analyze to Agreement
YES

PF2063
PF2063 PR0126
PR0126 PR0128
PR0128
Purchase Release
Release Manage
Manage Authorize
Authorize
from Agreement? Forecast to Plan Supplier
Supplier Production
Production Requisitions
Requisitions
Schedules
Schedules Requisitions
Requisitions

• Manage the supplier • Manage and review • Requisition approval

NO
scheduled purchased automatically or based on Company
components and manually created Organizational
determine if requisitions for Hierarchy or Job/
requisition should be completeness, Supervisor Structure.
released. approvals, etc. Approvals can be
controlled using
amount or account
code.

PR1182
PR1182 PR0129
PR0129 PR0153
PR0153 MM1136
MM1136
Issue
Issue aa Authorize
Authorize Distribute
Distribute Receive
Receive
Purchase
Purchase Purchase
Purchase Issued
Issued Material
Material –– Inspect to Disposition

KPI Order
Order Orders
Orders Purchase
Purchase Orders
Orders Supplier
Supplier

• The buyer creates a • The purchase • Distribute Purchase • Receive materials

purchase order for the manager approves Order to Supplier.
selected supplier. the purchase order. Distribution is done
via email, fax, mail or
other electronic or
manual means.
Enterprise Roles
from suppliers, either
into inventory or into
an inspection area. Planner
Purchasing Manager

KPIs tied to Flows Buyer

Receiving Clerk

OBM: Think like a Customer

What is a Procedure?
It’s the tasks required to perform a business process:

 Role Based Oracle Tutor

 Task list
 Sequential tasks
 Oracle Application Navigation
 Form/Program level
 Diagram (automated)
 Ties generic business process to Oracle Application
 Customizable & links to Applications help

OBM: Think like a Customer

 Manage to Production
Requisition
Negotiate to Receipt
Receipt Requisitions: Procedure Text Tasks

OBM: Think like a Customer

 Manage to Production
Requisition
Negotiate to Receipt
Receipt Requisitions: Procedure Task Diagram

OBM: Think like a Customer

OBM Content
• Critical Oracle Business Flows
100 + Flows
• OBM Selector
Interactive Flow Demo
• Library of Business Processes
Over 1200 BPs
• Library of Procedures
Over 500 Oracle Tutor Procedures
• Methods Material

OBM: Think like a Customer

OBM Business Process Content
• Horizontal: • Vertical:
• Marketing • Discrete Mfg
• Sales • Process Mfg
• Service • Property Mgt
• Financials • Public Sector
• HR • In Development:
• Project Mgt •Content Mgt
• Procurement • Property Mgt
• Planning • Public Sector
• Inventory Mgt • Treasury
•

OBM: Think like a Customer

 What they are saying about OBM…
Gary Simler, SVP NAC: “We use OBM in almost every
proposal and as a key selling point. I guarantee you, it
helps us sell software and consulting.”
Tim Meehan, GVP NAC: “NE teams use OBM in 75-80%
of their engagements.”
Toshiaki Takeuchi, Oracle Japan: “We think OBM and
Tutor is the most important information for E Business
Suite.”
Peter Laier, SPD EMEA: “OBM is unique in terms of
completeness and detail.”

OBM: Think like a Customer

 What they are saying about OBM…
John Hutchison, Oracle Australia: “We are trying to
align the consulting practice along the OBM framework.”
David Conway, Sales Consulting Manager, Public
Sector: “OBM 4.5 is the best tool I have seen Oracle
produce in a long time.”
Scott Workman, Customer, Director of Material,
Cummins: “This is the first time that I’ve understood how
APS will manage my planning activity.”

OBM: Think like a Customer

 How is OBM Being Used Today?
 Sales
– Up-level conversation from feature/function to business process
– Conversation starter with LOBs to shorten sales cycle
 Consulting
– Implement by business flows
– Packaged offerings (Business Flow Accelerators)
 Development
– Now part of testing & release process
– Being built into iSetup product strategy
 Marketing
– Flows based messaging being pushed across EBS and supported by Technology
 ADS
– Demo scenarios being developed to map to the flows
 Support
– Flow based support scripts

OBM: Think like a Customer

Oracle Business Flow Accelerators

 Next evolution to FastForward Flows

– But much improved and more complete
 Use as a starting point in proposals
– Accelerated implementation approach
– Based on highest priority business flows
– Pre-configured/Pre-tested
– Start Conference Room Pilot in days not months
 Fixed price available, not required
– Flexible flows that can be changed to meet customer’s
differences
 Targeted to all companies
– Most OCS implementations will soon be flows based

OBM: Think like a Customer

 Using OBM: Sales
Engaging the Decision Makers:
Tell me about your business environment.
What are your competitors doing?
What do your customers need?
What are your business problems?

Let me show you how Oracle can address your business problems

OBM: Think like a Customer

 What is the Flows Selector & how do I use it?

 Engage the customer in a conversation about their business

issues
 Demonstrate understanding of business & leading practices
 Use during discovery process to get feedback on
CUSTOMER’S processes
– Selector developed as horizontal model
– Vertical models are being developed
– Make changes to base flows to match customer’s requirements
 Shortens sales cycle  Faster time to proposal
– Recognition, Comprehension, Agreement
– Quickly understand where customizations may be needed

OBM: Think like a Customer

 Using OBM: Sales
Objective: Sell Oracle Apps & Svcs

Means:

A) Consensus on Business B) Consensus on Oracle

Issues “Yes, Oracle can do it for my
“Yes, this is how My company company…”
does it…”

Recognition Comprehension Map App to Process Comprehension

Agreement Agreement

OBM: Think like a Customer

 Using OBM: Implementation
Objective: Successful Implementations of Applications
On Time & Within Budget

Means:
1) Flow based
implementations

2) Base line to Future

State Mapping

3) Training
Process Gaps
4) Procedures & Issues List
1. mmmm
2.mmm mmm
3. mm m mm

OBM: Think like a Customer

 Flows allow your customers to:
 Focus on business issues
 Focus on business process improvement
– Automate using leading practice business flows
 Implement fast, cheap, mitigating risk
– Pre-configured, pre-tested end-to-end flow implementation approach
– Fixed Price available
– Starting point to include in proposal
 Get everything working together
– Single vendor
– “Unbreakable technology”
 Measure effectiveness of IT spend
– KPI’s available for each: Business Flow, Business Process
– Business Intelligence built by flow

Now more than ever your customers need Business Flows

OBM: Think like a Customer

 Online Access to OBM
 OBM on GlobalXchange
– Knowledge Areas: Business Practice Knowledge Areas : Oracle
Business Models
 Oracle Business Flow Selector
– Flow Selector
 Business Flow Accelerator Sales Kit on GlobalXchange
– Knowledge Areas : BFA Sales Kit folder
 Oracle Business Flow Portal
– Go Flows
– Email: goflows_us@oracle.com

OBM eMail chuck.jones@oracle.com

OBM: Think like a Customer