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PeopleSoft Supplier Relationship ManagementProduct User Group

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

A look back to 2001…

By 2005, because of a move to virtualize operations, more than 45 percent of the value produced by Fortune 500 companies will be purchased. Downward price pressures are the norm on the revenue generating side of businesses. Increased profits can only come through a reduction in supply chain costs. Competitiveness is dependent on improved supplier relationships to reduce supply chain and operational costs.

“About 50% of costs for most businesses are associated with purchases, what’s spent on basic materials. If you can go after your

supply chain and these costs, you can possibly avoid layoffs. In many ways, it is free money and it’s fairly easy to make happen.”

Managing in Uncertain TimesToday’s Decisions are Critical

Mark Gottfredson, Senior Partner, Bain & Co.

Fortune, December 2008

Mark Gottfredson, Senior Partner, Bain & Co.

Fortune, December 2008

Procurement’s Direct Impact on Margin

Other Costs

Profit

Purchases

100% 100%

45

50

45

47.5

57.5

-5%

• Increase sales by 50%

• Reduce overhead by up to 20%

• Significantly reduce headcount

A 5% reduction in purchase cost can result in a 50% increase in profit margin

A 5% reduction in purchase cost can result in a 50% increase in profit margin

In order to obtain an equivalent impact, a firm would have to...

Costly Spend Management Leaks

Immediate High-Impact Opportunities

ReturnReturn

CostCostEconomic

Value Economic

Value

MaterialsMaterials

SG & ASG & A

InventoryInventory

Invested Capital

Invested Capital

Assets & EquipmentAssets &

Equipment

How can we collaborate with Finance & suppliers improve both margin &

working capital?

How can we collaborate with Finance & suppliers improve both margin &

working capital?

How can we eliminate unnecessary expense

and spending?

How can we eliminate unnecessary expense

and spending?

How can we exploit commodity price

volatility?

How can we exploit commodity price

volatility?

IncreaseMargin

DecreaseSG&A

OptimizeCash Flow

Create Immediate Impact on Net Income

Increase Margin

Increase Margin

Cut SG & A

Cut SG & A

Optimize Cash FlowOptimize

Cash Flow

Sourcing Challenge Average Improvement Through E-Sourcing

High material costs 14.3% cost savings

Avg sourcing cycles 3.3 - 4.2 mo Cut sourcing cycles in half

High transaction & admin costs Reduce sourcing admin costs by over 60%

Long time to market cycles Shrink time-to-market cycles by 10-15%

“E-sourcing technologies deliver information visibility and global infrastructure to enhance and accelerate strategic sourcing.”

Biggest Opportunity for Immediate Impact

Drive Immediate Price ConcessionsWith Strategic Sourcing

Increase Negotiation Efficiency &

Effectiveness

Increase Negotiation Efficiency &

Effectiveness

Accelerate Time-to-Value

Accelerate Time-to-Value

Eliminate Technology Inhibitors

Eliminate Technology Inhibitors

Source more spend in less

time

Go live rapidly

Build end-user expertise

Ensure proper application

usage

Meet & exceed IT audit

requirements

Eliminate ongoing maintenance

Avoid Infrastructure

expenseSource for lowest total cost

Create immediate & long term

savings

Create Immediate Impact on Net Income

Increase Margin

Cut SG & A

Cut SG & A

Optimize Cash Flow

Source: Hackett Group

Performance IndicatorTypical

Purchasing Organization

World Class Purchasing

Organization

% of Long-Term Contracts 37% 75%

Number of Suppliers per $B in Spend 322 10

Cost of Procurement as a % of Spend .96% .24%

Cost per Purchase Order $10.35 $1.52

Purchase Orders in Electronic Form 17% 80%

Cycle Time from Request to PO (hrs.) 50.2 1.4

Cut Transaction Costs by Swapping Labor for Technology

Create Visibility Into Employee Spending Patterns

Goal: Eliminate All Unnecessary CostsWorld-Class Procurement Drives Improvements in Effectiveness and Efficiency

Procurement to Payment Flow

Global Agreement

Business Unit B

Business Unit A

• Pricing and spend commitments

• Specifications• Deliverables

• Signatures• Compliance status

(e.g., supplier barred)

• Terms & conditions• Regulations and

reporting requirements

• Payments and account status

• Projects and budgets

Enforce Negotiated DiscountsWith Embedded Pricing and Terms Enforcement

Profile and Banking Details

eRFx & Auctions

VMI & Consigned Inventory

Supplier Performance

Mgmt

Contract Negotiation & Binding

Purchase Order Execution

Offload Data Entry to SuppliersSecure Web-Based Supplier Self-Service

• Real-time access

• Seamless integration

• Simple, single point of contact for suppliers

Create Immediate Impact on Net Income

Increase Margin

Cut SG & A

Optimize Cash FlowOptimize

Cash Flow

Purchasing/ Payables

Suppliers

eSettlements

• Validate invoices

• Match invoices to purchase orders

• View available line items

• Enter invoicing information

• Track payment status

• Enter non-PO invoices

Drive Efficiencies to Accounts PayableWith Self-Service Invoice Entry and Payment Tracking

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PeopleSoft Applications & Investment Strategy

PeopleSoft 9.0The Extended Value Release

PeopleSoft 9.0 Enables…A Superior

Ownership ExperienceBest-in-Class

Business Processes

Release 9.0 ThemesRelease 9.0 Themes

Extended Value Through Technology

Supplier Relationship ManagementInsight-Driven Business Processes

BusinessInsight

• Expanded KPIs for buyers and managers• Summary metrics at business unit level• Supplier performance analytics pagelet

SRM Dashboard

BusinessProcesses

• Request for contract creation

• SLA compliance tracking and non-compliance alerts

ContractManagement

• New time reporting functions & flexibility

• Expanded service coordinator capabilities

ServicesProcurement

• Amount-only requisitions

• Off-catalog request enhancements

Requisitioning

Supplier Relationship ManagementThe Right Tools to Drive Value

CentralContract

Repository

CentralContract

Repository

Contract & Clause Upload / Import toCentral Repository

Supplier Contract Management

Back-Port to R8.8

Favorites and Template

Enhancements

Re-Open andAdjustment of

Closed Purchase Orders / Requisitions

The Current ReleasePeopleSoft 9.0 Current Upgrade “Plus” Paths

ReleaseRelease

Au

tom

ate

d,

On

e-S

tep

Up

gra

des

8.98.9

8.88.8

8.48.4

9.0 MP59.0 MP5

Current ReleaseCurrent Release

Upgrade Scripts Available on Customer Connection

< 8.4< 8.4Multi-Step

Technical Upgrades

What Today’s Customers Are Saying Differing Needs for Different Constituents

““I need easy to use applications and tools that I need easy to use applications and tools that

allow me to do my job the way that is best for allow me to do my job the way that is best for

me.”me.”

““Ensure the solution is functionally complete to Ensure the solution is functionally complete to

meet the needs of my business and my industry.”meet the needs of my business and my industry.”

““Help me address my internal stakeholders’ needs Help me address my internal stakeholders’ needs

more quickly at a lower cost.”more quickly at a lower cost.”

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Navigation Menu Only Appears When Pulled Down

Includes Search

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Related Content:

Threaded Discussions

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Analytics in Context

Deploy New Capabilities at a Low Cost PeopleTools Backwards Compatibility

PeopleTools 8.46

Q1 2005 GA

PeopleTools 8.47

Q4 2005 GA

PeopleTools 8.48

Q3 2006 GA

PeopleTools 8.49

Q2 2007 GA

PeopleTools 8.50

Target GA, 2009

Applications Release 8.4

Applications Release 8.8

Applications Release 8.9

Applications Release 9.0

Applications Release 9.1

TotalOwnershipExperience

FusionMiddlewareCertification

ServiceOriented

Architecture

PlatformCompliance

ContinuousInnovation

Delivering Upgrade Flexibility and Planning Options

Execute End-to-End Business ProcessesPeriod-End Close and Monitor

Plan

Transform

Record

Close

Analyze Focus Resources on Business Growth Initiatives

Measure

Business Driven CollaborationBusiness Driven Collaboration

Receive & Reconcile

Review / Approve

Source & Contract

Create & Route PO Pay Supplier

Achieve Sustained Cost ControlSRM Enhancements

Requisitioning

Planned for 9.1• Improved Contract Defaulting

Controls• Greater Usage of XML Publisher• SOA Integrations

Planned for 9.1• Improved PO Management• Enhancements to Return-

to-Vendor Processing

Planned for 9.1• Expanded Integration of

Approval Workflow• Supplier Side Contract

Integration• Complex Work Time Reporting

in Services Procurement

Planned for 9.1• Event Notification Integration and

Enhanced Supplier Selection• PO Sourcing Enhancements• Contract Authoring Integration with PO

Planned for 9.1• Automated and

Configurable Requisition Change Processing

• Additional Onboarding Controls

Planned for 9.1• Track Vendor Name

Changes• Dynamic Discounting

Contract Transaction

Contract Document

Notifications, Inquiries, &

RenewalApprove Contract

Purchase Order

Releases

Enforce Negotiated Terms and Operational Compliance

Efficiently Execute Supplier ContractsIntegrated Contract Lifecycle Management

Purchase Orders

Buyer SupplierContractAdmin

FinanceLegal

Delivery Update on PeopleSoft 9.1Release Progression

Identify and Define

Requirements

Identify and Define

Requirements

Create Release Plan

Create Release Plan DesignDesign CodeCode

TestTest

Requirements From:• User Groups• Direct from Customers• PeopleSoft Customer Advisory Boards• PeopleSoft Strategy Councils• Industry & Global Product Strategy• Support• Market Factors

DeliverDeliver

In Progress

2008 2009

Planned Release Timeline

PeopleSoft Release 9.1and PeopleTools 8.50

Target Rollout

Working with Customers to Deliver ValueCustomer Interactions for PeopleSoft SCM/SRM 9.1

• Customer Site Visits / Remote Meetings: 7373

• Oracle Corporate Visit Center Meetings: 4242

• User Group Meetings: 3333

• Focus Group Meetings: 3030

• Customer Advisory Board Meetings: 88

Future Upgrade OptionsPlanned Upgrade Options for PeopleSoft 9.1

ReleaseRelease

Au

tom

ate

d,

On

e-S

tep

Up

gra

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9.09.0

8.98.9

8.8*8.8*

Upgrade Scripts Available on Customer Connection After GA

< 8.8< 8.8

Next ReleaseNext Release

Multi-Step

Technical Upgrades

9.19.1

*With Extended Support

PeopleSoft Investment StrategySummary

Drive User Productivity with…Drive User Productivity with…• Web 2.0 PeopleSoft User Experience

• Enabling Native Work Environments

• Collaboration Tools

Deliver Complete Solutions with…Deliver Complete Solutions with…• Functionally Deep Applications

• End-to-End Business Processes

• Industry Tailored Solutions

Enable IT to Impact the Business with…Enable IT to Impact the Business with…• Low Cost Capability Deployment

• SOA Enabled, Sustainable Integrations

• Reduced Cost of Maintaining Applications

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Enable organizational success by addressing the unique needs of different constituents

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