Agile PLM for Process GC FY11 Plan

Jason Chiu

April 2010DRAFT

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Agenda

• China Food & Beverage Market• PLM for Process in China

• SWOT Analysis• Selling Recap & Lesson Learn• FY11 Plan

APAC Food & Beverage Market

• Markets• ASEAN, GC, ANZ primary focus• IND, KOR secondary focus• Forecast 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%

• Prospects• 134 prospects, revenue > $500m• Opportunistic market (< 5 prospects)

• Retail private label• Quick serve restaurants

• Based on 288 APAC F&B companies• * Primary source : Business Monitor International• Supplemented by Agile team data

Sales $US ANZ ASEAN GC IND KOR Total

$5-$15B 1 1 2     4

$2-$5B 6 13 8 2 1 30

$0.5-$2B 12 43 22 10 13 100

Total 19 57 32 12 14 134

ANZ ASEAN GC IND KOR

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

F&B Revenue US$B

Source: Chee-Sing PLM for Process APAC FY11Plan

Top F&B Companies in ChinaTop F&B Companies in China

Sl F&B Accounts

1 Shineway Group

2 Wuliangye Group

3 Hangzhou Wahaha Group Co., Ltd

4 Tsingtao Brewery Co., Ltd

5 VV Food & Beverage Co., Ltd

6 EastOcean Oil & Graine Indutrial

7 Yili Industrial Group Co., Ltd.

8 Jinluo

9 Shanghai Bright Dairy

10 Dalong

11 Sanlu Food

12 Hualong

13 Mengniu

14 Southseas olis & fats industrial

15 Heilongjiang Jiusan Oil & Fat Co

16 Yihai Group Goldensea Industry

17 Dahailianyou

18 Tiens Group

19 JIANLIBAO Co., Ltd.

20 Moutain Winery

Why Food & Beverage Companies Need PLM?

Why Oracle PLM?

• PLM in food & beverage is an emerging market• Growing retailer requirements and regulatory complexity• Manual product management unsustainable for most F&B

companies• At least a decade behind in PLM knowledge cf. High Tech

• Dedicated F&B PLM software • #1 in Feature Functionality for Process PLM

• Opportunity to “corner” market• Target of 20 to 30 new APAC customers over 3 years• Wedge application into SAP customers

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Agenda

• China Food & Beverage Market• PLM for Process

• SWOT Analysis• Selling Recap & Lesson Learn• FY11 Plan

PLM4P SWOT Analysis

Strengths• Food & beverage focus• Excellent F&B software product• Good customer stories• Suzhou Development centre• Experienced Agile sales, pre-

sales team in selling PLM

Weaknesses• Slow build of pipeline• Limited implementation expertise &

experience• No local reference• Limited F&B knowledge internally

• PLM team lacks F&B experience

• No integration to Oracle ERP• Can’t sustain interest of prime AMs

Opportunities• SAP install base• China, potential• EBS, JDE install base

Threats• SAP improving PLM capability• CHIC lost to UGS• Prospect readiness low• PLM low priority, no approved

project

GC Selling Recap• CHIC

• Level I and Level II demo by Chee-Sing and Jason Chiu• Discovery workshop by Chee-Sing, supported by James & Jason Chiu• Leverage Heinz case study. CHIC COO appreciated• Spend long time to query the implementation resource. UGS penetrated• CHIC-Oracle relationship cracking• Kalypso involvement.• CHIC-Oracle relationship broken• Lost deal to Siemens-UGS

• Want-Want• Level I demo by Chee-Sing and Jason Chiu• Level II demo by Chee-Sing and James & Jason Chiu• Disocvery workshop by Chee-Sing and James & Jason Chiu • AIC delivered the implementation proposal• R&D Director agreed the proposal• IT stop the project because of the SAP implementation issue• Organization changed• Pending

• Uni-President (Taiwan)• Level I demo by AIC• Level II demo by AIC and Chee-Sing• Customer 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 action• Pending

• Viatsoy (HK)• Level I demo by James• Level II demo by Jason (James left)• Customer felt Agile and SAP have no difference• Looking for the implementation resource. We also contact Kalypso• Customer wanted to discuss the implementation, but shut-down the project 2 hours after they invited us to discuss the implementation• Pending

No implementation resource

Difficult sell value (differentiation)

PLM is not the Top priority

PLM is not the Top priority

Difficult sell value (differentiation)

No implementation resource

Lessons Learn• Pipeline slow to build, convert

• No food & beverage network

• PLM is not top priority• No planned budgets for PLM

• It’s difficult to sell value to Chinese local vendors• The R&D team is small• The regulation compliance is not the major issue because they are focusing the domestic

market (one regulation)• Poor IT infrastructure and IT management readiness

• Disjointed partners• Capability variable

• AIC with no sales success• AIC product knowledge good

• Ad hoc recruitment• Not implementation experience

• Limited food & beverage knowledge internally, partners• OCS not investing

• OCS Agile (a9) consultants gone, only 1 remains• Lost CHIC Foods

• Mass webcasts not effective

PLM4P FY11 Plan

Need Outside Support• Domain Expert support• Implementation practice support• Support from Development• Chee-Sing support

Pipeline• Qualify all 32 F&B prospects• Convert to multi-year pipeline• Actively monitor, drive pipe• Recruit F&B networkers

Build Infrastructure• Need F&B domain experts locally• Build SC capability internally &

Externally• Level 2 product training

• Targeted F&B training• Sales (co-prime, targeted prime) pre-sales• Nominated people only (not mass webcast)

• Focus on key partners• Agreed specific partners• Provide implementation training• Work out the GTM plan with the partners

• Improve business development• Build F&B network to open doors• Skill up partners to do business development

Plan ActivitiesActivity Planned Period Owner Resource Required Remark

Level I Product Training to Sales

2nd Half May Jason Chiu Jason Chiu Even Edge Apps Sales do not know PLM4P

Review the current F&B prospect in Pipeline

2nd Half May Sales Team Jason Chiu With Chee-Sing support

Level II Product Training to Oracle and Partner SC

1st Half Jun Jason Chiu TBC Partner

Deliver the value proposition and differentiation to sales

1st Half Jun Jason Chiu TBC Edge Apps Sales/Account Sales

Meeting with the prospects

1st Half Jun Edge Apps Sales

TBC Edge Apps Sales/Account Sales

Implementation Training in China

1st Half July Jason Chiu TBCChannel Team/Development

Shanghai is better

Co-work with key partners for GTM plan

1st Half July Sales Team PartnerSC

Key Partners selected1. Hand/Hitachi Consulting (China)2. AIC (Taiwan)

The pipeline generation 1st Half July Jason Chiu BDC/Partners

Qualify the opportunities 2nd Half July Sales Team Sales Team

Nominated Prospects detailed workshop

1st Half Aug Jason Chiu TBC

Selected prospects (not more than 3) coverage

2nd Half Aug- Selected prospects sales

SCTBC

The plan activities is focused on 1st local reference building and local infrastructure enablement

GC F&B Pipeline

• Vitasoy• Want-Want• Ting Hsin international group (Kang Shi Fu) : #1

Instance Noodle Manufacturers)• COFCO : #1 F&B Company in China• Yili Milk(Top one in Chinese milk area)• Sanyuan milk