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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
10 Integrating Product Innovation and Supply Chain Management to Deliver Incremental Value
12 Industry-Specific Solutions
ID
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PRO
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
through to design,
P
UP
prototyping, obtaining
DE
&S
SIG
certification, production,
ICE
N
customization, service
S E RV
and retirement.
ELOP
platform for the development
PRO
DEV
throughout their lifecycle.
DU
CT
IO
N
T
LO
PI
LA E&
UN YP
CH OT
P ROT
WIP Data CAD, BOM and Design thru Release Ideation thru
Management Change Management Centralization Commercialization
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:
RT
PO
Recipe Product
UP
Management Collaboration
DE
&S
SIG
Materials Customer
ICE
& Equipment Needs
N
Data Hub
S E RV
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
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Pro t
duc en
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olio Mana
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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
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.
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
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
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
HERBALIFE 21
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:
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
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.
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:
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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