Doing Business in China : a 360° view of how Oracle E-Business Suite enables your success

Frederic DuboisDirector,

Supply Chain Globalization

Rick JewellSenior Vice President,

Supply Chain Management

Jin DuanfengCTO and Vice President

Aisino

Yang HuipingGeneral Manager

Aisino

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.

Safe Harbor Statement

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Agenda• Introduction : Rick Jewell, Sr. VP• Aisino : : Jin Duanfeng, CTO and VP

• The China Economy - Key Trends • Taxation Best Practices and Initiatives • Aisino : leading the market for VAT tax compliance• Golden Tax : Aisino’s Solutions for Taxation Practices

• A 360° view of EBS functionality for China• R12, The Global Release• Internationalization : multi bite, NLS and MLS• FMS : Golden tax Adaptor & CNAO• SCM : enhance manufacturing capabilities and a new

outsourcing model• HCM : breath of locale support• CRM : PBX integration with Huawei

• Q&A

404

326

240

163

101

1994 1998 2001 2002 2003

China industrial export valueUS$ billions

China: Global Competitor (36% cost advantage) and Untapped Marketplace (40% growth)

US vs China Manufacturing CostsPercent

*Manufacturing example

Source:Company financials; China manufacturer assessments

41%

36 %

101

163

240

326

404

CHINACHINA

GREATER CHINAGREATER CHINA

MAJOR METROSMAJOR METROS

BeijingBeijing

ShanghaiShanghai

GuangzhouGuangzhou

ChengduChengdu

Hong KongHong Kong

•World’s 4thth largest economy largest economy• GDP has been 9-10% in

the past 20 years

(’06 forecast 9.5%) (World

Bank)

• Per capita annual income

has gone up to $1,500

•Attracted $60B in direct $60B in direct

foreign investment in ’05foreign investment in ’05 with

its foreign exchange reserves reserves

at $875Bat $875B

Release 12: The Global Business ReleaseIncrease Competitiveness Through Streamlined, Global Operations

Release 12 Enables You To…Release 12 Enables You To…

Think GloballyThink Globally

Work GloballyWork Globally

Manage Systems GloballyManage Systems Globally

Think GloballyThink Globally

Work GloballyWork Globally

Manage Systems GloballyManage Systems Globally

Increase productivity with global processes that cross applications, divisions, and regions

Agenda

• A 360° view of EBS functionality for China• R12, The Global Release• Internationalization : multi bite, NLS and MLS• FMS : Golden tax Adaptor & CNAO• SCM : enhance manufacturing capabilities and a new

outsourcing model• HCM : breath of locale support• CRM : PBX integration with Huawei

• Q&A

Internationalization

• Oracle EBS is I18N-Ready :• Supports 31 languages including Simplified Chinese and

Traditional Chinese• Supports all countries supported by Oracle Database• Supports all major character sets including Unicode

through UTF8 encoding

• NLS – National Language Support • Ability to run Oracle Applications in any supported

language other than US English • Requires Internationalization and Translation

• MLS – Multi-Lingual Support • The ability to run Oracle Applications in 2 or more

languages on the same instance.

Chinese Date format

• ICX : Date format support for RRRR-MM-DD

• NLS & MLS Support

Internationalization

Financial Management for China FMS

Golden Tax Adaptor – New in R12

Receivables

VAT processing

Golden Tax Adaptor

Transfer

XML Reports

Workbench

Tax Authorities

Customer

Golden TaxGolden Tax• Seamless integration with

Aisino

• Legal compliance

• Flexibility & Control

• Audit & Reconciliation

• CNAO : China National Audit Office

• Background :• Set of Legal standard on accounting data reporting to the

government• Mandated since January 1st 2005• Apply to state owned companies & public sector• Might extend to all commercial operation in the future • Requirement to export the financial statements and

accounting data into either xml reports or flat files in a LEGAL format

• Yearly certification by CESI :

CNAO -

CNAO

General Ledger

Payables

Etc…

Certificated by CESI

Audit

Convert & Export Flat Files

(legal forma)China

Localization

Receivables

• Extract from sub ledgers and GL

• Generate extract FILE per government standard

• Oracle EBS certified by CESI since 11i10

Supply Chain Management for China SCM

Discrete Manufacturing – Use Oracle on the Shop Floor Discrete WIP, CTO, Flow/Lean, ETO, Lot-based

Oracle Mfg As The MES

In-houseManufacturing

Shop Floor

• Enterprise-wide quality management

• Configurations management – as designed, as sold, as built & as maintained

• Compliance to regulations & complete serial/ lot genealogy with traceability

• Decision making through enterprise manufacturing intelligence

Whatever way you choose to leverage Oracle Manufacturing, we will enable ….

Oracle Mfg

Shop Floor

Legacy/3rd Party MES

Use Directly With 3rd Party MES

Oracle Manufacturing

OutsourcedManufacturing

You Mfg Partner

Oracle/3rd Party/Legacy MES

Shop Floor

ModelShop Floor

CommunicateInformation

MES APIs

Chargeable Subcontracting Process Overview

Place Order fo

r Outsource

d Assembly A

B C

Place Order for B&C

OEM

RMS

B C

A

MP

B

A

C

Outsource assembly

Components

• Take advantage of Chinese manufacturing capacity and cost

• Track component allocation to subcontract orders

• Plan for Outsource assemblies & components

• Extend supply chain visibility

• Adjust for over & under component consumptions

• Streamline payment process

Chargeable Subcontracting Key Capabilities

• Track component allocation to subcontract orders

• Plan for Outsource assemblies & components

• Extend supply chain visibility

• Adjust for over & under component consumptions

• Streamline payment process

• Document creation and allocation FULLY automated

Human Capital Management for China HCM

China HCM Localization

• Designed for local business practices• Includes stylized information for China • Allows managers and staff to perform Self-Service

transactions using the localized SSHR module

• Meets HR legislative requirements:• includes legislative information for person, employer and

employment

• Performs taxation and Social Insurance deduction calculations according to China legislation

• Provides earnings and payroll legislative reporting

Chinese Localized Pay slip

Localized Chinese deductions

What our customers say :

• Panasonic Electric Works China :• Offices in Beijing, Chengdu, Dalian, Guangzhou, Shanghai, and

Shenzhen• Operation in China since 1999• HCM modules installed – HR, Payroll and SSHR

“We have achieved 180% ROI and efficiency in the HR department’s operations”

- Hiroyoshi Maruyama, General Manager, Information System Dept.

“The company has improved greatly. I believe we could not have kept pace

with the market speed if we didn't have Oracle” - Masaaki Kuwayama,

General Manager, Financial Dept.

Customer Relationship Management for China CRM

• Huawei is the leader in the Chinese market for telephone PBX switches

• The Adaptor facilitates your call center implementation in China

C&C08-Q PBX/ACD/VDU

LAN

CO trunk or E1 Link

hotline

PSTN

CTI Server

HUAWEI IVR

Oracle ICSM Server

EBS

UIS

Business Group 1

Business Group n

CCS

INtess/ICD

…

Oracle Telephony Adaptor for

Oracle Telephony Adaptor for

Features

Advanced IntegrationScreen pop

Screen pop based on data from ANI, DNIS, IVR/PBX application Data

CTI Functionality

• Answer/Release/Hold /Retrieve/Transfer/Conference, Send DTMF, Route Point Monitoring

Softphone

Full Softphone

Call Routing • PBX-based Routing Classification based on: ANI/DNIS, IVR Data and PBX App Data

Call Classification

Full Interaction History:• Abandoned calls

Interaction History

• Life cycle segments (IVR, in queue, with agent)

Customer references

AQ&