Agile PLM Overview

Agile PLM for Process GC FY11 PlanJason ChiuApril 2010

DRAFT1

AgendaChina Food & Beverage MarketPLM for Process in ChinaSWOT AnalysisSelling Recap & Lesson LearnFY11 Plan

2APAC Food & Beverage MarketMarketsASEAN, GC, ANZ primary focusIND, KOR secondary focusForecast CAGR over 5 years *Packaged goods & meats : 4.9%Juices : 2.5%Cereals : 6.5%Confectionary : 3%Ice cream : 5.8%Ready meals : 4.5%Prospects134 prospects, revenue > $500mOpportunistic market (< 5 prospects)Retail private labelQuick serve restaurants Based on 288 APAC F&B companies* Primary source : Business Monitor International Supplemented by Agile team dataSales $USANZASEANGCINDKORTotal$5-$15B1124$2-$5B61382130$0.5-$2B1243221013100Total1957321214134Source: Chee-Sing PLM for Process APAC FY11Plan3Top F&B Companies in ChinaSlF&B Accounts1Shineway Group2Wuliangye Group3Hangzhou Wahaha Group Co., Ltd4Tsingtao Brewery Co., Ltd5VV Food & Beverage Co., Ltd6EastOcean Oil & Graine Indutrial 7Yili Industrial Group Co., Ltd.8Jinluo9Shanghai Bright Dairy10Dalong11Sanlu Food12Hualong13Mengniu 14Southseas olis & fats industrial 15Heilongjiang Jiusan Oil & Fat Co16Yihai Group Goldensea Industry17Dahailianyou18Tiens Group19JIANLIBAO Co., Ltd.20Moutain Winery4

Why Food & Beverage Companies Need PLM?However, innovation cannot compromise food safety the last thing that your company wants is to be in the newspapers for the wrong reasons. 5Why Oracle PLM?PLM in food & beverage is an emerging marketGrowing retailer requirements and regulatory complexityManual product management unsustainable for most F&B companiesAt least a decade behind in PLM knowledge cf. High TechDedicated F&B PLM software #1 in Feature Functionality for Process PLMOpportunity to corner marketTarget of 20 to 30 new APAC customers over 3 yearsWedge application into SAP customers

6#1 in Feature Functionality for Process PLM

Converting the vendor capability comparison to a total score (strongly validated = 3, functional and evolving = 2, formative = 1, blank = 0), here is how the scores would come out: Oracle 25 pts (5 Areas Strongly Validated)SAP 19 pts (1 Areas Strongly Validated)Infor (Optiva) 19 pts (2 Areas Strongly Validated)Selerant 18 pts (3 Areas Strongly Validated)

Gartner (Feb 2008)7

AgendaChina Food & Beverage MarketPLM for ProcessSWOT AnalysisSelling Recap & Lesson LearnFY11 Plan

8PLM4P SWOT AnalysisStrengthsFood & beverage focusExcellent F&B software productGood customer storiesSuzhou Development centreExperienced Agile sales, pre-sales team in selling PLM

WeaknessesSlow build of pipelineLimited implementation expertise & experienceNo local referenceLimited F&B knowledge internallyPLM team lacks F&B experienceNo integration to Oracle ERPCant sustain interest of prime AMs

OpportunitiesSAP install baseChina, potentialEBS, JDE install base

ThreatsSAP improving PLM capabilityCHIC lost to UGSProspect readiness lowPLM low priority, no approved project

Strengths (internal focus)Very good product for food & beverage, specifically focused on that industryExcellent customer case studies, with lots of detailSuzhou development centre is new and we now have nearly 20 developers for Prodika based thereAgile team, sales & pre-sales consists of experience people who know PLMF&B companies often do not realise that there is a software package that does PLM; hence no planned budget, which in turn slows sales cycle

Weaknesses (internal focus)Pipeline only now showingNo sales CP Foods did not clos Q2Only implmentation partner with experience is Kalypso; rest have only trainingOnly McDonalds and Heinz in Australia have done reference visit/calls and only a limited basis; no other referencesLimited people with F&B background in Agile team, and MRDAIA being developed for EBS or JDE; still work in progress

Opportunities (external focus)SAP install base have limited functionality, difficult to use; have 4 SAP customers (Heinz, Tysons, Con-Agra, Coke) using ProdikaChina is growing market; lots of ASEAN companies identified, but not yet qualifiedEBS and JDE install base in F&B; note : AIA currently in development

Threats (external focus)Lost to Selerant (total deal $300k!!) at Pernod Ricard

9GC Selling RecapCHICLevel I and Level II demo by Chee-Sing and Jason ChiuDiscovery workshop by Chee-Sing, supported by James & Jason ChiuLeverage Heinz case study. CHIC COO appreciatedSpend long time to query the implementation resource. UGS penetratedCHIC-Oracle relationship crackingKalypso involvement.CHIC-Oracle relationship brokenLost deal to Siemens-UGSWant-WantLevel I demo by Chee-Sing and Jason ChiuLevel II demo by Chee-Sing and James & Jason ChiuDisocvery workshop by Chee-Sing and James & Jason Chiu AIC delivered the implementation proposalR&D Director agreed the proposalIT stop the project because of the SAP implementation issueOrganization changedPendingUni-President (Taiwan)Level I demo by AICLevel II demo by AIC and Chee-SingCustomer said PLM4P does not meet their requirement because they are focused on Market promotion type project management.Sales wants to switch to a9 (PPM), but sales left. No actionPendingViatsoy (HK)Level I demo by JamesLevel II demo by Jason (James left)Customer felt Agile and SAP have no differenceLooking for the implementation resource. We also contact KalypsoCustomer wanted to discuss the implementation, but shut-down the project 2 hours after they invited us to discuss the implementationPendingNo implementation resourceDifficult sell value (differentiation)PLM is not the Top priorityPLM is not the Top priorityDifficult sell value (differentiation)No implementation resourceLessons learntPLM deals bundled with larger ERP deals showed early promise in FY08, FY09, but have failed to deliver; Agile team have limited influence on these dealsDemantra have been put into higher priority than PLM in 3 dealsF&B companies often do not realise that there is a software package that does PLM; hence no planned budget, which in turn slows sales cycleOCS had a budget 3+ times license at Pernod Ricard; over charged for an inexperienced (no PLM, no Prodika) consultant; lost credibility with customerOCS did not attend implementation training, not willing to invest in ProdikaThe capability of partners is extremely variable and need to be monitoredInternally and among partners, knowledge of the food & beverage industry is limitedNeed time and effort to build infrastructure people with product and F&B knowledge and experience10Lessons LearnPipeline slow to build, convertNo food & beverage networkPLM is not top priorityNo planned budgets for PLMIts difficult to sell value to Chinese local vendorsThe R&D team is smallThe regulation compliance is not the major issue because they are focusing the domestic market (one regulation)Poor IT infrastructure and IT management readinessDisjointed partnersCapability variableAIC with no sales successAIC product knowledge goodAd hoc recruitmentNot implementation experienceLimited food & beverage knowledge internally, partnersOCS not investingOCS Agile (a9) consultants gone, only 1 remainsLost CHIC FoodsMass webcasts not effective

PLM4P FY11 PlanNeed Outside SupportDomain Expert supportImplementation practice supportSupport from DevelopmentChee-Sing support PipelineQualify all 32 F&B prospectsConvert to multi-year pipelineActively monitor, drive pipeRecruit F&B networkers

Build InfrastructureNeed F&B domain experts locallyBuild SC capability internally & ExternallyLevel 2 product trainingTargeted F&B trainingSales (co-prime, targeted prime) pre-salesNominated people only (not mass webcast)Focus on key partnersAgreed specific partnersProvide implementation trainingWork out the GTM plan with the partnersImprove business developmentBuild F&B network to open doorsSkill up partners to do business development

12Plan ActivitiesActivityPlanned PeriodOwnerResource RequiredRemarkLevel I Product Training to Sales2nd Half MayJason ChiuJason ChiuEven Edge Apps Sales do not know PLM4PReview the current F&B prospect in Pipeline2nd Half May

Sales Team

Jason ChiuWith Chee-Sing supportLevel II Product Training to Oracle and Partner SC1st Half JunJason ChiuTBCPartnerDeliver the value proposition and differentiation to sales1st Half JunJason ChiuTBCEdge Apps Sales/Account SalesMeeting with the prospects1st Half JunEdge Apps SalesTBCEdge Apps Sales/Account SalesImplementation Training in China1st Half JulyJason ChiuTBCChannel Team/DevelopmentShanghai is betterCo-work with key partners for GTM plan 1st Half JulySales TeamPartnerSCKey Partners selectedHand/Hitachi Consulting (China)AIC (Taiwan)The pipeline generation1st Half JulyJason ChiuBDC/PartnersQualify the opportunities2nd Half JulySales TeamSales TeamNominated Prospects detailed workshop1st Half AugJason ChiuTBCSelected prospects (not more than 3) coverage2nd Half Aug- Selected prospects salesSCTBCThe plan activities is focused on 1st local reference building and local infrastructure enablementGC F&B PipelineVitasoyWant-WantTing Hsin international group (Kang Shi Fu) : #1 Instance Noodle Manufacturers)COFCO : #1 F&B Company in ChinaYili Milk(Top one in Chinese milk area)Sanyuan milk