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Oracle Enterprise Product

Lifecycle Management
Addressing the Challenges of Product-Oriented Businesses
2 ABOUT ORACLE

With more than 380,000 As part of its commitment to providing Today, Oracle has Enterprise PLM
customers in 145 countries, the most complete, most integrated development sites in the United
and most industry-oriented range of States of America, Canada, Germany,
Oracle is one of the worlds
applications available, Oracle in 2007 India and China. Our Enterprise PLM
largest vendors of enterprise acquired Agile Software Corp., a solutions are used by more than 2,000
software applications and leading provider of Product Lifecycle companies around the globe, across
a global leader in database Management (PLM) software multiple industries.
technologies, middleware, solutions worldwide.
operating systems and
Since that date Oracle has extended
server hardware.
and further developed its PLM
applications portfolio to create the
industrys most comprehensive suite
of applications for full, enterprise-scale
PLM throughout the product value
chain. Oracles Enterprise PLM market
leadership is supported and enabled
by a large global team dedicated to
developing the solutions our
customers need.
CONTENTS 3

4 The Challenges for Product-Oriented Businesses

5 Oracle Defines Enterprise PLM

6 Enterprise PLM as a Strategic Initiative

7 The Risks of Poor Product Lifecycle Management

8 Oracles Enterprise PLM Solutions

10 Integrating Product Innovation and Supply Chain Management to Deliver Incremental Value

11 A Global Network of Implementation Partners

12 Industry-Specific Solutions

12 Pharmaceutical (Case Study: Bayer Healthcare)

14 Medical Devices (Case Study: Stryker Corporation)

16 Retail (Case Study: 7-Eleven)

18 High-Tech Electronics (Case Study: Sun Microsystems)

20 Consumer Packaged Goods (Case Study: Herbalife)

22 Industrial Manufacturing (Case Study: ZF Friedrichshafen AG)

24 Food and Beverage (Case Study: Tyson Foods)

26 Recommended Next Steps


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TOTYPE & PILOT
From industrial manufacturing To thrive in these conditions, product A new, streamlined approach to
to pharmaceuticals and retail, businesses need to be efficient, agile managing the product lifecycle is
and innovative while ensuring quality, needed. Drawing on our extensive
todays product-oriented
traceability and safety. Delays in work with product-oriented businesses
industries face a unique set bringing new products to market have across multiple industry sectors, Oracle
of challenges: a severe business impact. Failures has developed the expertise and the
to comply with industry standards technology solutions to enable this
++ Complex design and supply chains
damage reputations and incur new approach. We call it Enterprise
require many different organizations
expensive fines, rework and write-offs. Product Lifecycle Management
to work together to design,
Time and money spent on innovation (Enterprise PLM).
manufacture and service existing
products and bring new products is wasted when someone else gets
to market to market first.

++ Globalization has increased A common problem for businesses On average, about 20%
competition, created downward
pressure on prices and accelerated
today is that product development of projects are over time
and commercialization processes or budget, and more
the pace of innovation
are disjointed and inefficient. Cross-
++ Market demand is creating the functional collaboration is rare. than one-third of
need to customize products Different divisions and supply chain product companies have
ever more closely to specific
partners use their own systems, experienced at least
or individual requirements
processes and ways of handling
++ Economic uncertainty has made product data, making it hard to share one runaway project.
it more important than ever for information and collaborate effectively. Overall, nearly 50% of
product businesses to be agile and Any weak points in the value chain will
responsive to fluctuating market the resources allocated to
cause problems and delays and in
conditions, including the creation
fast-moving industries, those problems product development and
of joint ventures and mergers
and acquisitions
and delays can be fatal for business. commercialization
++ Industry regulations are becoming
are wasted.
more stringent and more complex, IDC, The Product Value Chain in
with businesses having to comply Manufacturing, December 2011
with regulatory obligations in
multiple jurisdictions
ORACLE DEFINES
ENTERPRISE PLM
5

Oracle defines Enterprise


PLM as a strategic approach POS
AL
to managing the lifecycle DIS IDE
AT
I ON
of a product throughout its
full value chain: from initial
requirements gathering
T
OR

through to design,
P
UP

prototyping, obtaining

DE
&S

SIG
certification, production,
ICE

N
customization, service
S E RV

and retirement.

It unites all the partners in


the value chain by providing a
single, collaborative software

ELOP
platform for the development
PRO

and management of products

DEV
throughout their lifecycle.
DU
CT
IO
N

T
LO
PI
LA E&
UN YP
CH OT
P ROT

Enterprise PLM streamlines operations throughout the product lifecycle


ENTERPRISE PLM
6 AS A STRATEGIC
INITIATIVE

Enterprise PLM is much Organizations that take an The Evolution of PLM


more than just a technology Enterprise PLM approach reap Product lifecycle management
many advantages, including:
solution. It represents a is not a new concept. It has been
new, strategic approach to ++ Higher product quality applied for many years in the
design and engineering divisions
the product value chain that ++ Faster time to market
of manufacturing businesses.
emphasises process efficiency, ++ A leaner, more efficient value chain
cross-functional collaboration Historically, designers and engineers
++ Faster and easier compliance
in the extended enterprise, with industry regulations have used CAD packages and
rapid innovation, rigorous collaboration software to produce
++ Increased profitability for
quality control, risk mitigation digital mock-ups and validate design
every product
options, in order to develop innovative
and cost-effectiveness. ++ Better management insight products as quickly and efficiently
into product-related processes as possible.
throughout the value chain
++ Better decisions based on accurate Such design-centric tools require
and comprehensive data specialist skills (and expensive
user licenses) to operate, and have
had limited uptake in the wider
organization. As a result, once outside
The Product Value Chain Maturity Curve
of engineering, product information
has tended to become fragmented
and scattered across the different
CAD Data Product Data Product Lifecycle
Management Management Management functions and systems in the extended
enterprise supply chain management,
Performance

production, service so that a single,


Product Value holistic view of the product gets lost.
Chain Management

Marginal Stable Advanced Best Practice

WIP Data CAD, BOM and Design thru Release Ideation thru
Management Change Management Centralization Commercialization

Fragmented Standardization, Integrated Product Integrated and


Silo-Based Foundational Processes Aligned Value Chain
THE RISKS OF POOR PRODUCT
LIFECYCLE MANAGEMENT
7

The loss of that single, In industrial manufacturing, The Bottom Line


consistent and comprehensive engineering change orders are hard to Enterprise PLM takes the principles
track and implement accurately when
product view has different of engineering PLM and expands them
different parties in the supply chain to support all product-related business
consequences in different are using different product information processes across the entire extended
industries, but all of them have definitions, resulting in wasted effort, enterprise. It provides a single platform
a significant, material bearing delays and rework. to view, access and share information,
on the business. Here are just collaborate on product-related
a few examples: In high technology, accurate product
projects, monitor and manage activity
data is difficult to find and grows more
throughout the product lifecycle, and
scattered, preventing companies from
produce accurate data for everything
profitably managing rapid product
from regulatory approval filings to
lifecycles and capturing first-to-market
management reporting.
price premiums.

In life sciences, a fragmented


approach to product management
can easily result in delayed regulatory
approvals, inaccurate product labelling
leading to regulatory fines, and
extensive rework for products that do
not meet mandatory quality standards.

In food & beverage, a safety alert on


an ingredient or a supplier may not
be processed quickly and accurately,
resulting in insufficient or excessive
product recalls and continuous leakage
of a problem for a significant period
of time.

In retail, fragmented and inconsistent


product information can lead to items
erroneously being recorded as out
of stock, slow introductions of new
product lines, and the inability to alter
merchandising on the fly in response
to changing business conditions.
8
ORACLES
ENTERPRISE
PLM SOLUTIONS

Oracle has pioneered the Based on the market-leading Agile With Oracle Enterprise PLM solutions,
concept and delivery of PLM suite, acquired by Oracle in 2007, companies can transform fragmented
Oracle Enterprise PLM also features engineering and design processes
Enterprise PLM, creating a
best-in-class software solutions for into information-driven product value
world-class suite of software customer needs management, project chains with outstanding development
solutions that together provide portfolio management, enterprise processes and capabilities, global
a single product record and a visualization, product data quality, 360-degree visibility into product
comprehensive platform for product serialization management information, and real-time cross-
complete product lifecycle and product lifecycle analytics. functional collaboration across the
entire product network.
management across the
value chain. Oracle Enterprise PLM solutions
Oracles PLM product suite enable product companies to:

has clear strengths and is ++ Accelerate innovation through


ideation management and
scoring significant successes collaboration, product portfolio
in the marketplace. We management and analytics, data
consolidation and cleansing, and a
expect to hear next year of
rich enterprise product record
continued growth for Oracle
++ Design for supply with product
and noteworthy successes cost management, outsourced
for their customers. manufacturing and product
collaboration, product supply risk
CIMdata, Progress of Oracles PLM analytics, and spend consolidation
Vision and Reality Evident at Oracle
OpenWorld 2011 ++ Rapidly commercialize through
integrated portfolio and business
planning, enterprise quality
management and analytics, accurate
and clean product data publishing,
and rapid product commercialization
AL
POS
DIS IDE
AT
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PO
Recipe Product

UP
Management Collaboration

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Materials Customer

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& Equipment Needs

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9
Product Engineering
ENTERPRISE
Cost Collaboration
PRODUCT
RECORD

ELOP
Product Enterprise
Quality Da Visualization
t a Q u a lit y
PRO

DEV
Product Pedigree/
DU

Governance Serialisation
Variant
CT

Compliance Management
Management
IO
N

Pro t
duc en
t P o rtf g em
olio Mana
Pro T
d u ct tic s LO
L if e c y cl e A n al y PI
LA E&
UN YP
CH TOT
PRO

Oracle Enterprise PLM is a ++ Customer Needs Management: ++ Product Quality Management:


modular suite of applications, Enables companies to capture ideas Drives improved product quality and
and requirements, and design, customer satisfaction by integrating
allowing customers to conceptualize and collaborate customer, product, quality and
choose and implement the globally with Engineer to Order regulatory information within a
combination of modules and Idea Management closed-loop corrective action system
that best suit their business ++ Engineering Collaboration: ++ Product Cost Management:
model, existing systems and Integrates PLM with all leading Enables companies to manage
MCAD and ECAD packages and product costs through early and
needs. Oracle Enterprise PLM
ensures engineering processes real time cost visibility
provides fully integrated are fully leveraged throughout the
++ Materials and Equipment
modules for the following product lifecycle, driving engineering
Management: Organizes and
PLM processes: best practices across the enterprise
manages product design assets
++ Enterprise Visualization: Provides to support globally distributed
++ Enterprise Product Record: Provides native document visualization across engineering teams
secure, timely, and accurate visibility a global enterprise for over 450 file
and control of product information ++ Recipe Management: Ensures
formats, including all leading ECAD
and processes to every stakeholder at quality and traceability by providing
and MCAD packages
each stage in the product lifecycle full control of ingredients, formulation
++ Pedigree and Serialization optimization and a complete
++ Enterprise Product Data Hub: Management: Enables companies compliance screening engine
Enables companies to centralize all to implement and manage mass
product data and create a single view ++ Product Portfolio Management:
serialization of drug products and
of product information across all Provides tightly synchronized
share serialized product data across
functional departments program and product information,
the supply chain
maximized resource utilization,
++ Data Quality Management: Enables ++ Variant Management: Provides a and cross-program visibility and
companies to create consistent best-practice approach to managing decision support throughout the
and reliable product data by quickly portfolios of related products and product lifecycle
identifying and applying standards product variants across the lifecycle
across systems, repositories, ++ Product Lifecycle Analytics:
and processes ++ Product Governance & Delivers preconfigured, yet flexible
Compliance: Enables organizations dashboards and reporting facilities
++ Product Collaboration: Helps users to manage product, substance and for the production of accurate,
share product data and structure and material compliance against standards detailed reports covering every
manage change across the global and regulatory requirements aspect of the product lifecycle
product network
10
INTEGRATING PRODUCT
INNOVATION AND SUPPLY
CHAIN MANAGEMENT TO
DELIVER INCREMENTAL VALUE

To get maximum value In PRTM (PwC)s 2011 Global Supply Better Customization: With combined
from Enterprise PLM, it Chain Trends survey, half of the and tightly integrated PLM and SCM
respondents reported an increase in processes, the time lag between
is important to integrate
investments focused on achieving integrating the product development
product lifecycle management better operational flexibility. PRTMs process with the configure-to-order
with a companys overall report on this research emphasizes the model process can be whittled down
Supply Chain Management importance of tearing down the wall from months to days.
(SCM) process. that divides applications and teams in
supply chain and product development Improved Quality: By establishing
processes. The report reveals that, a consolidated, continuous view of
by integrating these processes and quality information that extends across
activities from the outset, leaders in the enterprise, organizations can
supply chain flexibility have learned to reduce risk and effectively manage
accelerate ramp-up and ramp-down quality processes from insight which
of products while defining life-long could come from any point along a
product requirements and planning value chain to efficient problem
for significant shifts in demand and resolution and corrective action.
supply variability.
Secure and Timely Delivery: PLM
The benefits of an integrated and SCM integration helps companies
approach include: to streamline the flow of capturing
customer needs, converting those
++ Better Customization
needs to product requirements,
++ Improved Quality feeding these into the bill of materials
++ Secure and Timely Delivery and releasing to manufacturing all
the while noting the final delivery
location to ensure compliance with
local regulations. The high level
of operational agility offered by an
integrated PLM and SCM approach
is key to helping manufacturers
achieve a faster time-to-market.
A GLOBAL NETWORK OF
IMPLEMENTATION PARTNERS
11

Organizations choosing to When a customer chooses to work


deploy Oracle Enterprise with an Oracle partner certified with
our Enterprise PLM solutions, they
PLM solutions can find the
have the reassurance of knowing
specialist implementation they are combining world-class Oracle
services they need among products with the extended capabilities
Oracles global network of of a partner that works hand-in-hand
business partners. with Oracle to provide for specific
functional area, market, or
industry needs.

Industry-Specific Solutions
Recognizing that different industry
sectors have unique pressures and
concerns, Oracle has developed
dedicated Enterprise PLM solutions
for a range of industries, including
Pharmaceuticals, Medical Devices,
Retail, Industrial Manufacturing, High-
Tech Electronics, Consumer Packaged
Goods and Food & Beverage.

You can read more about Oracles


industry-specific Enterprise PLM
solutions and discover how major
global organizations are reaping the
benefits in the remaining sections
of this report.
12
PHARMACEUTICAL
ENABLING BUSINESS
TRANSFORMATION

With patents for large-scale, But when many organizations are Pharma-specific business
flagship products expiring, involved in the drug discovery and processes enabled by Oracle
development cycle, business risk Enterprise PLM include:
pharmaceutical businesses
increases. Those risks include
must re-focus their business ++ Drug development program
compromised patient safety, regulatory execution
model around identifying and fines, and wasted time and money
addressing more specialized caused by process inefficiency and ++ Structure Electronic Development
Record (eDR)
market opportunities. That poor collaboration.
means creating lean, global, ++ Integrated clinical supply
Oracle Enterprise PLM for Pharma is development and management
development and supply
an integrated suite of product lifecycle
networks to allow new ++ Technology transfer and collaboration
management technologies for efficient
products to be developed and compliant drug development, ++ Integrated quality and risk
and commercialized faster. manufacturing and commercialization. management
++ Comprehensive packaging and
It enables access to a centralized collateral management
source of accurate product data for all
++ 80% of new drug ++ Global product registration
parties in the value chain, and joined-up
introductions fail to processes across the entire discovery-
Pharmaceutical companies using
achieve their predicted ROI to-commercialization cycle from Lab
Oracle Enterprise PLM bring new
to Launch.
++ Limited patent protection products to market faster,
can be worth $1M per day more safely and at lower cost.
Powerful collaboration features enable
researchers, designers, developers,
++ 67% of branded
suppliers, manufacturers, distributors,
pharmaceutical product clinicians, prescribers and retailers to
launches are unsuccessful work together effectively, while its
audit and compliance technologies
++ $880m in fines handed Implementation Partners
ensure every stage is conducted in
out to three global line with worldwide regulations. Oracles key implementation
manufacturers in 2010 partners in Pharma include:

(Source: AMR Research) Oracle Enterprise PLM for Pharma ++ Business & Decision
also includes pedigree and serialization
++ Deloitte
management features to ensure
watertight product labelling and ++ HCL
complete traceability throughout ++ IBM
the supply chain, to avoid regulatory
penalties and the risk of counterfeit ++ Kalypso
products entering the legitimate market. ++ Vialis
CASE STUDY:

BAYER 13
HEALTHCARE

Bayer Healthcare is one of the With production and distribution


largest manufacturers of over- information spread across a variety
of systems and locations throughout
Agile [now Oracle] has
the-counter drugs in the world.
It has production facilities in
the globe, the company wanted to
increase the visibility of product,
helped us to achieve
Europe, North America, Latin packaging, labelling and ingredients our goal: an integrated
America, and Asia and sells data to ensure regulatory compliance,
its products in over 100 improve supplier collaboration and approach to manage all
reduce overall production costs while
countries worldwide.
expediting time-to-market. the relevant data and
Rapid deployment of Oracle processes around our
Enterprise PLM solutions helped
Bayer Healthcare to:
products formulas,
++ Reduce cycle times for packaging labelling information,
by 1/3
++ Reduce packaging labeling errors
and packaging
by 50%
specifications .
++ Consistently track ingredient
Craig Morgan, Sr. Director,
data per country
Packaging Operations, Bayer Healthcare
++ Improve quality and compliance
++ Attain a global visibility of data

Following deployment, Bayer Healthcare


have gained a comprehensive global
overview of the relevant data and
processes needed to cut cycle times,
improve product consistency, reduce
costs and simplify compliance.
14
MEDICAL DEVICES
SUPPORTING INNOVATION,
ACCELERATING COMPLIANCE

The medical device industry is driven by twin pressures: the Medical device manufacturers taking
need to innovate rapidly to meet demand for new therapeutic an enterprise PLM approach have
gained the following advantages:
equipment, and the need to ensure absolute patient safety by
complying with quality standards set by the US Food and Drug ++ 50% increase in projects launched
on time and to budget
Administration (FDA) and other regulatory bodies.
++ 40% increase in revenue and profits
There are major advantages for device Life sciences companies need to from new products
manufacturers that can design and automate compliance and quality ++ 35% increase in projects meeting
develop innovative new products processes to address regulatory revenue and profit objectives
and bring them to market faster requirements while improving business
++ 20% increase in R&D labor efficiency
than competitors. However, for process performance and compliance
many manufacturers, new product integrity. This requires a platform that ++ 15% reduction in product costs
introductions are hampered by can automate and synchronize business
inefficient internal processes and the processes across the enterprise.
inability to ensure that new products
meet the required quality standards Oracle Enterprise PLM for Life 35% of Class II devices and
before filing for regulatory approval. Sciences enables manufacturers of
medical devices to streamline product
22% of Class III devices are
The result is that many products development, quality and compliance. denied regulatory approval
are initially rejected by the FDA It provides a single source of accurate at initial filing
and other bodies for failing to comply product data, in-built controls and
with standards, representing wasted compliance procedures, robust (Source: US Food and Drug
Administration)
money and effort and major delays Corrective Action Preventative Action
to market entry. (CAPA) capabilities, management
reporting on product-related issues,
and a fully collaborative environment
spanning research, design,
development, regulatory approval,
and commercialization. And if there Implementation Partners
is a catastrophic event or recall, the Oracles key implementation
real-time visibility and enterprisewide partners in Medical Devices include:
quality management processes
enabled by Oracle Enterprise PLM help ++ Logica
a company respond instantly. ++ MahindraSatyam
++ PCO Innovation
++ Systematics
++ Vialis
CASE STUDY:

STRYKER 15
CORPORATION

Stryker Corporation is Faced with a cumbersome reporting


one of the worlds leading system and a lack of product process
unity across its many departments,
Oracles Agile
medical technology
companies. Its endoscopy
the division was looking for a way
to simplify reporting and streamline
PLM applications
division produces surgical compliance with US Food and Drug have helped us
devices for visualization and Administration requirements.
documentation systems, drive significant
Oracle PLM enabled Strykers
arthroscopy, laparoscopy,
gynecology, and urology.
endoscopy division to: improvements in our
++ Introduce a single repository for
the companys endoscopy device
quality management
quality data processes, and we
++ Streamline and unify product
process workflows anticipate even greater
++ Increase transparency and provide
key metrics to drive operational
results as we continue
improvement the project rollout.
++ Move toward a closed-loop
Chris Van Wert, Director, Quality Assurance
quality system and expanded and Regulatory Affairs, Stryker Endoscopy
report automation

Following the introduction of Oracle


Enterprise PLM, the division has
accelerated preparation for regulatory
audits it can now provide two years
of manufacturing change history
data in just 30 minutes. In addition,
it has reduced the average number
of corrective and preventive actions
open at any given time by over 40%,
cut change cycle time by 50% and
improved first-pass yield of change
by 90%.
16
RETAIL
GET CONTROL OF
PRODUCT INFORMATION

Retail in the digital, global The pace of change and the economic Oracle Enterprise PLM for Retail
age is a complex and rapidly- uncertainty means retailers are looking enables retailers to centralize
for ways to protect margins, improve and manage product information,
changing industry. Retailers
customer service and customer collaborate securely across the global
are grappling with multiple experience, reduce product returns product network, and keep full track
channels to market, extensive and recalls, develop closer working of private label goods throughout
worldwide supplier networks, relationships with suppliers, and their full lifecycle.
economic factors affecting introduce profitable, own-brand goods.
buyer behavior in unpredictable World-class retailers including Ahold,
Getting control of product information Tesco and 7-Eleven use Oracle
ways, quality assurance of
is critical. Poor data quality and rigid Enterprise PLM to control and manage
private label goods, and information structures are barriers to product data, collaborate with suppliers,
product ranges that are profitable business, slowing down and manage outsourced design,
moving faster than ever. product introductions, creating manufacturing and recovery partners.
confusion across channels, and
making it hard to monitor shrinkage The end result is improved product
or implement agile pricing and control, better quality, more responsive
merchandising strategies. merchandising, fewer returns, reduced
time to market and better customer
For retailers of own-brand goods, service both online and offline all
meanwhile, the ability to track and leading to greater profitability.
manage every product efficiently,
from design and production through
to delivery, merchandising, sale and
aftercare, can make a significant
difference to the bottom line.

Implementation Partners
Oracles key implementation
partners in Retail include:
++ Accenture
++ Fluid-e
++ Infosys
++ Kalypso
++ Tieto
CASE STUDY:

7-ELEVEN 17

7-Eleven is the largest The company wanted a central


convenience retail chain in repository to enable a common new
SKU introduction process for corporate
the world, with 25,000 stores
and store-specific SKUs. It selected an
worldwide in 19 countries. integrated suite of applications from
It builds upwards of 1,500 Oracle, including Oracle Product Data
new stores every year. Hub to manage product information
across the organization.

Since implementing the Oracle


applications, 7-Eleven has enabled
6,000 North American stores to access
key information necessary for product
selection and supported electronic
POS-driven inventory replenishment
of 1,500 products per store.
HIGH-TECH
18 ELECTRONICS
ACCELERATE INNOVATION
IN A FAST-MOVING INDUSTRY

As a globalized industry Vendors must develop new


engaged in relentless products and product versions Oracle Enterprise
quickly and continuously, within the
innovation, high-tech
constraints of downward pressure
PLMs rich, collaborative,
electronics is one of the on prices and increasingly stringent product content-based
most complex and fastest- regulations governing electrical and process management has
moving sectors in the world. electronic equipment.
improved communication
That means finding ways to accelerate with our internal divisions
and improve the product design and supplier network, by
and development process, get new
products into production faster and
ensuring that all product
more cost-effectively, and manage content information is
the whole product lifecycle to centrally aggregated in a
keep customers happy and ensure
compliance with WEEE, ROHS and
single global system and
other regulations. that all product changes
are instantly disseminated
Oracle Enterprise PLM for High-Tech
Electronics is a complete and industry-
and tracked across the
proven suite of applications that enable global supply chain.
electronics and high-tech equipment
Glenn Neland, VP Worldwide
manufacturers to regain control over Procurement, Dell
every aspect of the product lifecycle.

With a single source of product


data, powerful product portfolio
Implementation Partners
management capabilities and Oracles key implementation
clear visibility across every stage partners in High-Tech Electronics
in the product development and include:
commercialization cycle, Oracle ++ Infosys
Enterprise PLM solutions are already
++ Logica
helping industry leaders like Dell,
QUALCOMM and Oracle itself to bring ++ MahindraSatyam
world-class products to a global market
++ PCO Innovation
quickly, profitably and efficiently.
++ Systematics
++ Wipro
++ Zensar
CASE STUDY:
SUN 19
MICROSYSTEMS

Oracle acquired Sun At the time of acquisition,


Microsystems in January 2010. Sun Microsystems was managing In just nine months, and under
product data within its engineering
Oracle has since developed
division, but the wider processes
budget, we standardized the
the companys hardware of the product value chain processes across all hardware
and software components, were characterised by a lack of platforms and centralized
producing such pioneering standardization and a reliance on
access to product data across
engineered systems as the aging and manual systems. Data
SPARC SuperCluster T4-4. sharing was difficult, keeping costs the value chain. We decreased
high and preventing the realization the average change cycle
of process efficiencies.
time by 25% and were able to
By extending Oracle Enterprise PLM to process a 38% higher number
its new acquisition, Oracle was able to: of production Engineering
++ Create a single version of truth for Change Orders
product information
David Burton, Director, PLM, Applications
++ Replace legacy Product Data Development IT, Oracle
Management systems with Oracle
Enterprise PLM
++ Standardize processes and centralize
access to product records
++ Consolidate design specification
management and access
++ Integrate PLM processes throughout
the Supply Chain
++ Implement automated supplier
package generation
++ Cut time to update from CAD to ERP

As a result, Oracle has reduced or


eliminated manual data entry in many
areas, lowered development costs
and accelerated time to market for its
new products, instigating true Art-
to-Part production from concept in
CAD to the finished product on the
manufacturing floor.
20
CONSUMER
PACKAGED GOODS
MORE EFFICIENT, MORE COMPETITIVE

In todays tough economic But when product development and


environment, raising prices delivery relies on collaboration between Oracle Agile PLM has
numerous teams and organizations,
is a dangerous game. To
each with its own data, systems and
enabled us to provide
remain competitive, Consumer review processes, finding these gains higher-quality products
Packaged Goods (CPG) and complying with regulations in compliance with
companies are increasingly is a major challenge.
stringent government
looking to internal productivity
gains to drive innovation Oracle Enterprise PLM for CPG regulations.
enables companies to standardize
and growth. Vince Viviani, Vice President of
and optimize the performance of Quality Systems, Playtex
and visibility into product lifecycle
processes, achieving new levels of
efficiency and compliance.
With the creation of a single,
80% of new product centralized source of product
With a complete suite of solutions
introductions in the addressing every stage from
information, it enables companies to
consumer goods industry take full control of the materials used
concept to commercialization, it
throughout the product lifecycle to
fail to meet expected delivers enhanced process visibility
evaluate and consolidate suppliers,
supporting streamlined packaging
performance levels. and specification management, faster
enhance product quality and reduce
manufacturing costs.
(Source: IDC Manufacturing Insights, regulatory reporting and accelerated
Good Ideas Are Not Enough: times to market.
Execution Is the Key to Sustained Oracle Enterprise PLM helps
Product Success, December 2011) Consumer Packaged Goods
Oracle Enterprise PLM has helped
companies to implement the robust,
Consumer Packaged Goods
transparent and efficient processes
companies to:
they need to remain competitive,
++ Reduce project cycle times innovative and compliant.
by up to 70%
++ Increase material reuse by 20%
Implementation Partners
++ Improve product margin at launch
Oracles key implementation
by 5-15%
partners in CPG include:
++ Accenture
++ Kalypso
++ PCO Innovation
++ Reply
CASE STUDY:

HERBALIFE 21

Herbalife is a global nutrition Herbalife needed to effectively


company with products manage the global development of
thousands of products. Previously,
Oracles Enterprise PLM
designed to help weight
management, deliver targeted
the companys extensive product
data containing complex formulas
applications are vital to
nutrition and enhance energy, and histories had not been unified, our ability to achieve
fitness and personal wellbeing. making it difficult to share product
information both internally and with our number one goal
regulators. The company wanted
to accelerate time to market for its consistently delivering
new products and speed delivery
to a network of over two million the best nutrition and
independent distributors.
weight management
Oracle Enterprise PLM enabled
Herbalife to:
products in the world.
Mark Schissel, CIO, Herbalife
++ Create a single, unified source
of truth for product information
++ Improve collaboration and
accountability across its
global operations
++ Clearly log, track and respond to
any manufacturing defects and
distributor complaints
++ Introduce timely, standardized
and secure reporting

As a result, the company has enhanced


efficiency and visibility throughout
its product development and product
change processes, supporting better
informed decisions and regulatory
compliance while increasing the
speed with which development
issues are resolved.
INDUSTRIAL
22 MANUFACTURING
BRING BETTER PRODUCTS
TO MARKET, FASTER

As globalization continues to create increased competition and downward pressure on prices,


manufacturers of industrial products, for example in the automotive, aerospace & defence or
machinery industries, must seize every opportunity to design, develop, produce and sell
innovative products faster and more cost-effectively than competitors.

However, product development and Oracle Enterprise PLM for Industrial At its core is a single source of master
product quality is often hampered Manufacturing is an integrated suite product data, enabling all parties in
by siloed divisions, globally dispersed of software applications that work with the value chain to access consistent,
teams, inefficient collaboration with your existing design and ERP systems accurate information ranging from
value chain partners, and different to create a single, enterprisewide requirements documentation, CAD
IT systems managing different management platform for every stage designs, Bills of Materials and rules
parts of the development and in the product lifecycle, from initial for configuring variant products. As a
introduction process. concept to after-sales service. result, critical communications such
as engineering change orders can be
passed quickly and accurately to the
Comprehensive responsible team or division.
With Oracle Enterprise Enterprise Product
Lifecycle Management
PLM, we can base our Oracle Enterprise PLM provides full
++ Document Management project and portfolio management
product development
functionality, while its AutoVue module
on a single source of ++ Product Data Management
enables all parties to view and annotate
data, which speeds ++ Configuration Management CAD documents created in most
leading ECAD and MCAD packages
up and improves all ++ Product Catalog
for easier collaboration with product
related processes. ++ Custom Engineering designers and engineers.
Alejandro Conesa, Product Lifecycle ++ Extensive Change Management
Management System Manager, Georg Implementation Partners
Fischer Piping Systems
++ Real Multi-CAD Support and
comprehensive integration Oracles key implementation
++ Supports distributed working with partners in Industrial
workflows and optional workspaces Manufacturing include:

++ High configurability and flexibility ++ CSC


++ Dr. Maier CSS
++ ICP Solution
++ Infosys
++ TD-IS
++ USB Management Consulting
++ xPLM Solution
CASE STUDY:
ZF
FRIEDRICHSHAFEN 23
AG

ZF Friedrichshafen AG is a To support the expansion of its


leading global automotive business, ZF Friedrichshafen AG [Oracle Enterprise PLM
wanted to unify its IT systems and
supplier, whose driveline and
processes, consolidate product data
component] Agile provides
chassis technologies promote and simplify communications with a unified, enterprise wide
safety, comfort and reduced suppliers and OEMs. platform for innovative product
fuel consumption. It is also
Oracle Enterprise PLM helped
development and manufacture.
one of the top ten patent
applicants in Germany. ZF Friedrichshafen AG to: The interactive connection of
++ Integrate development and ZF-facilities with customers
production processes with and suppliers allows efficient
multi-CAD support
collaboration and thus, big
++ Create a globally networked IT
system for close to 7,500 users potential savings. We are very
++ Introduce harmonized master pleased with Oracle
data management Dr Gregor Hberle, Head of IT Engineering
Systems, ZF Friedrichshafen AG
++ Standardize data quality and meet
data encryption regulations

The companys new approach to


PLM has dramatically shortened
product development times, while
the increased efficiency that comes
with process optimization has enabled
it to reduce the costs of development
and production.
24
FOOD AND BEVERAGE
IMPROVE COMPLIANCE
AT LOWER COST

As the demands of regulators The natural way to improve the Oracle Enterprise PLM for Food and
and consumers continue to traceability of ingredients and the Beverage helps companies to get new
accuracy of labelling is to unify and products to market faster, more cost-
grow, food and beverage
streamline the processes of the effectively, and in line with the most
companies must meet ever product lifecycle, from concept stringent regulatory requirements.
higher expectations without to delivery. From Heinz to Coca-Cola, it enables
increasing costs. some of the worlds biggest brands
But faced with the pressures of a to do what they do best.
volatile and competitive market, the
temptation to try to meet increasing
regulatory demands with existing
++ Over 80% of new processes can be intense and can As a result [of
products launched leave a company at even greater risk implementing PLM],
fail to meet their goals of errors, product recalls and damage weve seen reduced cycle
to the brand and bottom line.
++ 57% of customers, after a times in complex product
category recall, stop buying A complete suite of product lifecycle launches. The quicker and
the product for at least management technologies, Oracle
more accurately we can
a year Enterprise PLM for Food and Beverage
enables smart, compliant and deliver a product to market,
(Source: AMR Research,
March 2007 and April 2009)
efficient processes for food and drink the sooner consumers and
production and commercialization.
our customers can realize
It introduces a single, unified view of the value we bring, and the
all product and supplier data, promoting better partner we become.
transparency and accountability, and
Phil Wetherington, CIO, Sugar
simplifying the management of even Foods, quoted in Consumer Goods
the most complex global supply chains. Technology Magazine, February 2010

With an overarching, best-practice


approach to the entire product lifecycle,
Implementation Partners
it enables effective collaboration across
departments and organizations, driving Oracles key implementation
regulatory compliance and accelerating partners in Food and Beverage
product innovation while reducing include:
cycle times and costs. ++ Kalypso
++ PCO Innovation
++ Sinfo One
++ Verdant
CASE STUDY:

TYSON FOODS 25

Tyson Foods, Inc. is the worlds Tyson Foods wanted to accelerate time
largest processor of chicken, to market for new products, increase Tyson Foods is driven to create
productivity and optimize resources,
beef and pork, and also
by adopting a new approach to product
innovative food solutions and
manufactures prepared foods, information across thousands of SKUs, revolutionize the way we deliver
including soups, sauces, ingredients and packaging materials. products worldwide. Oracles
pizza crusts, and tortillas. It also wanted to improve its reporting
capabilities and meet increasing
Enterprise PLM solution is a key
audit demands. component to our corporate
strategy. We can attribute
Tyson Foods used Oracle PLM to:
several results to our Oracle PLM
++ Connect people, processes and
information in a single system
applications, which have made a
++ Improve visibility into product data
significant impact on our ability
to execute on our initiatives
++ Reduce errors involved in
data rekeying and surpass our customers
++ Automate product reviews expectations.
and approvals
Kim Glenn, Director Research & Development,
++ Improve the quality of supplier data Tyson Foods, Inc.

and the traceability of ingredients


++ Enhance supply chain
contingency planning
++ Identify areas in which existing
materials could be reused

The reforms have empowered


Tyson Foods to reduce cycle times
and increase productivity, while
minimizing risk in the supply chain,
lowering ingredient and packaging costs
and accelerating the auditing process.
The companys new visibility into
product data has enabled it to slash
specification creation time by
over 50%.
26 RECOMMENDED
NEXT STEPS

Oracle recommends that in order to start taking advantage of the benefits of Enterprise PLM,
supply chain technology leaders and CIOs should undertake a few key actions:

Take a purposeful, thoughtful Develop a complete Develop short-term and long-


1 and honest inventory of 2 understanding of Oracles 3 term roadmaps for Oracle
existing IT product value chain Enterprise PLM capabilities strategy and deployment to
operations and opportunities. and how they may be deployed optimize product value
to fulfil specific operational chain impact.
product value chain priorities.
27

Disclaimer
The foregoing 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 Oracles products remains at the
sole discretion of Oracle.
Oracle Corporation
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Worldwide Inquiries
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of Oracle and/or its affiliates. Other
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