Oracle Lifecycle

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Oracle Lifecycle

  1. 1. April 12-13, 2011 Lifecycle Services for Oracle Applications a.k.a. “Oracle Lifecycle” Global General Awareness Webcast
  2. 2. Contents <ul><li>History of Application Lifecycle Services </li></ul><ul><li>Oracle Specific Offering for Application Lifecycle Services </li></ul><ul><li>NL Launch of Oracle Lifecycle </li></ul><ul><li>Other Application Lifecycle Services offerings in the portfolio </li></ul><ul><li>Zoom on Wide-Angle Application Rationalization Program (WARP) / Value Management </li></ul><ul><li>Zoom on Oracle Run & Host </li></ul><ul><li>Zoom on JDE Run & Host </li></ul><ul><li>Zoom on Menu Cards </li></ul><ul><li>Zoom on Subscription Based Pricing </li></ul><ul><li>Zoom on Upgrade offering </li></ul><ul><li>Oracle’s Application Management suite and how to leverage Oracle to grow opportunities </li></ul><ul><li>Marketing Assets to leverage </li></ul><ul><li>Sample customers and funnel opportunities </li></ul><ul><li>Links to more information </li></ul><ul><li>Who to Contact </li></ul><ul><li>Call to Action </li></ul><ul><li>Q&A </li></ul>
  3. 3. History of Application Lifecycle Services
  4. 4. Capgemini launched Application Lifecycle Services <ul><li>Aiming for a leadership position in the fast-growing application lifecycle segment </li></ul><ul><li>Creation of a new global Application Lifecycle Services capability to help clients manage the entire lifecycle of applications </li></ul><ul><li>Combination of application development and outsourcing capabilities to help clients revitalize IT as a source of business innovation and differentiation and be more competitive </li></ul><ul><li>Support 15,000 specialists across the globe, including half of Capgemini 20,000 strong workforce in India (we now have 30K+ in India) </li></ul><ul><li>Train 5,000 application consultants , engineers, architects and managers </li></ul><ul><li>Development of a powerful Application Lifecycle Service Framework resulting from hundreds of best practices, </li></ul><ul><li>Offer services in all major geographies and for all mainstream technology platforms. </li></ul><ul><li>Global centralized governance, dedicated go-to-market teams </li></ul><ul><li>Partnership with major alliances </li></ul>Launched December 2009 Building new city in the old city
  5. 5. The Oracle Specific Offering
  6. 6. Lifecycle Services for Oracle Applications <ul><li>Challenges for the CIO: </li></ul><ul><li>Rationalization of the application landscape </li></ul><ul><li>Simultaneously enable new business demands </li></ul><ul><li>Building “a new city in the old one” </li></ul><ul><li>Innovate while reducing TCO </li></ul><ul><li>Facing Oracle Developments: </li></ul><ul><li>Oracle Product Strategy and Applications Portfolio </li></ul><ul><li>Timing and availability of Fusion Apps Components </li></ul><ul><li>Co-Existence, Upgrade and Migration Policy </li></ul><ul><li>Our proposition: </li></ul><ul><li>Shift focus from IT to business perspective </li></ul><ul><li>Commoditization of AD & AM </li></ul><ul><li>Provide a pro-active, sustainable relief from systems management ‘burden’ </li></ul><ul><li>Provide guidance with future proof roadmapping </li></ul><ul><li>Added value: </li></ul><ul><li>Provide continuous, value driven, business and application improvement </li></ul><ul><li>Leverage Oracle Applications strengths to improve business value </li></ul><ul><li>Subscription based pricing to provide predictable TCO </li></ul>
  7. 7. Capgemini’s Lifecycle Services for Oracle Applications Synergy: the total is more than the sum of its parts Subscription pricing Moving CAPEX to OPEX with a monthly fixed rate over a (rolling) period of 3 to 5 years. Choose & Pick Menu Card Menu Card of Commoditized Business Functions supported by application components, pre-developed implementation and pre-determined costs, including affected KPI’s. Your Fusion Applications Co-Existence Roadmap Oracle’s new, evolving Fusion Applications suite co-exists with current applications, e.g. E-Business Suite, PeopleSoft, Hyperion, JD Edwards and Siebel. The Roadmap can be complex: when to upgrade, how to migrate, how to integrate. Creates a clear business focused, continuously improving target architecture. Oracle-Sun Hosting ‘Application to Disk Integration’: consolidate on Oracle-Sun stack through Virtualization. Value Management Includes all components across the entire lifecycle focused on value generation and cost reduction. To drive Continuous Business Improvement through a series of Value Workshops. Oracle Run Application Management, leveraging Oracle Enterprise Manager and our industrialisation models, covering technical and functional applications as well as database management.
  8. 8. Key Principles of Oracle Lifecycle <ul><li>Full service (Cradle to cradle application management) </li></ul><ul><li>Proactive Relief </li></ul><ul><li>Continuous application improvement </li></ul><ul><li>Long-term commitment (5 year rolling contract): enduring relationship </li></ul><ul><li>Subscription rates: fixed monthly fees depending on complexity criteria </li></ul><ul><li>Shared risk: you’re no longer on your own! </li></ul><ul><li>Opex instead capex >> operational lease instead of financial lease </li></ul><ul><li>Standardization (best practices only) </li></ul><ul><li>Best practice user operations and processes </li></ul><ul><li>Industrialized application development and maintenance with processes Capgemini tooling </li></ul><ul><li>Vanilla process enablement at vanilla pricing (applying predefined reusables) </li></ul><ul><li>Allows for exceptional solutions at exceptional prices (justifiably unique) </li></ul><ul><li>Business value driven (we wont do it if it doesn’t make any sense) </li></ul>
  9. 9. NL Launch of Oracle Lifecycle
  10. 10. NL Launch of Oracle Lifecycle
  11. 11. Other Applications Lifecycle Services Assets to Leverage
  12. 12. Other Application Lifecycle Offerings to Leverage
  13. 13. Zoom on WARP / Value Management
  14. 14. Are you Struggling with A Sprawled IT Landscape?
  15. 15. … with many different destinies to be determined … Sustain Consolidate Extend / Enhance Migrate Re-platform Decommission Remediate Replace “ keeping the application fed and watered for the minimum effort and cost” “ reducing duplication, reducing overheads and driving efficiency by consolidation of platforms” “ improve integration and flexibility through service enablement” “ translate to a new language or re-use the code in a modern environment” “ mine the application for the essential rules and re-create in a modern language or package” “ moving the application to a more modern hardware / operating system “ retiring the application in a controlled manner, preserving essential data” “ re-factoring the application to a better structure to improve integration & flexibility”
  16. 16. … this can be kick-started by the Wide-angle Application Rationalization Program (WARP 1)..
  17. 17. … producing the 3 key deliverables that are needed to launch any rationalization effort… <ul><li>WARP 1 takes a bold, ‘hypothesis’-driven approach, combining hard fact-finding with deep business insight and sensitivity to the change landscape </li></ul>
  18. 18. WARP APPS CoE – Engagement Model Offering Name Engagement Delivery Model Duration Deliverables Application Inventory Analysis Delivered by Application Portfolio Analysts from offshore 1 Week 1. Landscape benchmarks study 2. High level recommendations on optimization opportunities based on data shared as part of RFP Application Portfolio Analysis (WARP0) Delivered by Portfolio Strategy Analyst and Portfolio Tool experts from offshore (Without direct client involvement) 3-4 Weeks <ul><li>Recommendations on individual application destiny aligned to hypothesis </li></ul><ul><li>2. Benchmarking analysis, Heat-maps, Health scan charts </li></ul><ul><li>3. High level ‘As Is’ technology and application landscape </li></ul>APPS Engine of WARP1 Delivered by Portfolio Strategy Analyst from India CoE travelling to client location and the Portfolio Tool Expert working from offshore. 6-8 Weeks 1. Detailed recommendations on application destiny aligned to business and IT strategy 2. Benchmarking analysis, Heat-maps 3. Transformation map & migration plan with impact analysis 4. Business-Case for select transformation recommendations Application Portfolio Strategy (Includes Enterprise Architecture) Delivered with two India CoE resources, an Enterprise Architect and a Portfolio Strategy Analyst travelling to client location and the Portfolio Tool Expert and additional portfolio strategy analysts working from offshore 10-12 Weeks 1. Detailed recommendations on application destiny aligned to business and IT strategy 2. Benchmarking analysis, Heat-maps 3. ‘As Is’ Landscape blue printing 4. Capability and Architecture Gap Assessment 5. ‘To Be’ Enterprise Architecture 6. Transformation Map & migration plan with impact analysis 7. Business-Case for select transformation recommendations
  19. 19. What is the Value Management component <ul><li>The Value Management component of Lifecycle for Oracle Applications is </li></ul><ul><li>A series of workshops over the full lifecycle of the lifecycle relationship </li></ul><ul><li>To discover and track benefit potential for the client </li></ul><ul><li>To identify opportunities for simplification, rationalization and innovation </li></ul><ul><li>To drive continuous Business Improvement </li></ul><ul><li>Shape, align and Realign the Oracle Roadmap in order to maximize value creation </li></ul><ul><li>Performed by a joint Capgemini/Client team </li></ul>
  20. 20. Why does Lifecycle for Oracle Applications include Value Management <ul><li>The purpose of the Value Management workshop is to </li></ul><ul><li>Ensure value creation of the Lifecycle engagement for the client </li></ul><ul><li>Understand current external drivers and internal issues caused by them </li></ul><ul><li>Discover benefit areas and promising solution components (e.g. new relevant Menu Card Items) and improve existing menu catalogue components </li></ul><ul><li>Develop, share and document a deeper understanding of how the solution components create value, often by simplification, rationalization and innovation </li></ul><ul><li>Perform top-down quantification of the benefit areas </li></ul><ul><li>Decide on next steps to implement new solution components </li></ul><ul><li>Ensure that the client is in control of value creation throughout the lifecycle of the engagement </li></ul><ul><li>Help the client to select and prioritize menu items and other parts of the catalogue </li></ul>
  21. 21. Who is involved in the Lifecycle Value Management engagement <ul><li>A typical Value Management workshop team has the following players: </li></ul><ul><li>Capgemini </li></ul><ul><ul><li>Value Management expert </li></ul></ul><ul><ul><li>Lifecycle for Oracle Applications expert </li></ul></ul><ul><ul><li>Client sector/industry expert </li></ul></ul><ul><ul><li>Client business and IT landscape expert </li></ul></ul><ul><ul><li>Account Manager </li></ul></ul><ul><li>A Client team that can: </li></ul><ul><ul><li>Report-out on benefits tracking </li></ul></ul><ul><ul><li>Identify drivers, issues and solutions </li></ul></ul><ul><ul><li>Perform top-down qualifications </li></ul></ul><ul><ul><li>Select and prioritize Menu Card items or other new components of Lifecycle </li></ul></ul><ul><ul><li>Decide on next steps </li></ul></ul>
  22. 22. Continuous Business improvement <ul><li>Create the fusion of the business value in relation with: </li></ul><ul><ul><li>Business Model (core business and value proposition) </li></ul></ul><ul><ul><li>Process Model (optimization using Services and LEAN) </li></ul></ul><ul><ul><li>Information Model and services and data consolidation </li></ul></ul><ul><ul><li>Application Landscape </li></ul></ul><ul><li>Business Analysis </li></ul><ul><ul><li>Subject Matter Expertise (in depth process knowledge) </li></ul></ul><ul><ul><li>Information Analysis (Information gathering) </li></ul></ul><ul><ul><ul><li>Services definition and recognition </li></ul></ul></ul><ul><ul><li>Business Process Management (Apply leading practice BPM (Business Process Management) to match identified improvement areas to applicable Lifecycle Services) </li></ul></ul><ul><li>Identify application solutions to meet Application Lifecycle improvements </li></ul>
  23. 23. Zoom on Oracle Run
  24. 24. Oracle Run & Host <ul><li>Oracle Run & Host build by a core team from AO and IO. </li></ul><ul><li>Capgemini provides its own flexible cloud hosting platform optimized for Oracle products </li></ul><ul><li>Based on the SAP Run concept on technical and procedure aspects </li></ul><ul><li>We keep continuously improving the cloud platform and the offering in a true ALS fashion for all customers </li></ul><ul><li>Providing a lower TCO to customers </li></ul><ul><li>Providing a higher margin for Capgemini </li></ul>
  25. 25. Traditional Oracle Hosting Database & Application Operating system Storage Hardware System A System B System C System D Traditional customer landscape setup is commonly diverse, grown over time, difficult to monitor, costly and difficult to maintain, inflexible, and hard to transform to meet new business requirements.
  26. 26. Oracle Run & Host Cloud Solution Database & Application Operating system Storage cloud Hardware cloud System A System B Virtualization layer Shared Oracle Run & Host cloud solution is build to be; flexible, extremely stable, easy to maintain, easy to monitor, open, future ready, continuously improved, lower in costing.
  27. 27. Why Oracle Run <ul><li>Menu card options results in customer pay-per-use costing </li></ul><ul><li>Options to reduce license costs towards Oracle </li></ul><ul><li>Reduce time (money) needed to setup new systems </li></ul><ul><li>Save the state of a machine and only pay storing costs </li></ul><ul><li>Options to reduce storage costing </li></ul>
  28. 28. In Conclusion <ul><ul><li>Helping your customer to plot a future roadmap on business and not on IT </li></ul></ul><ul><ul><li>Roadmap towards technology simplification and improvement by both Oracle and Capgemini </li></ul></ul><ul><ul><li>Options to provide customers quicker and more flexible hosting tuned for Oracle Applications </li></ul></ul><ul><ul><li>Hosting as a utility solution in a pay per use model </li></ul></ul><ul><ul><li>Helping your customer lower it’s TCO </li></ul></ul><ul><ul><li>Be able to offer a lower total price than our competitors </li></ul></ul>
  29. 29. Zoom on JDE Run & Host
  30. 30. Service Model JDE ® Run & Host JDE Functional Application Maintenance JDE Technical Application & Dba Maintenance Computer Processing & Networking Storage Backup Integrated Service Desk Integrated Monitoring Service Management JDE ® Run Utility Based Computing On Demand Request Utility & Subscription Charging JDE Application Management JDE Application Hosting Capacity on Demand JDE ® Run SAS70
  31. 31. JDE Run-Host Benefits <ul><ul><li>Business Benefits </li></ul></ul><ul><ul><li>Direct Access to JDE Competence Experienced and competent JDE support teams to think with you to best utilise the system for your business </li></ul></ul><ul><ul><li>Flexibility in IT costs Transfer from capital expenditures (capex) to operational expenditures (opex), </li></ul></ul><ul><ul><li>Growing and Shrinking with your business capacity needs Flexibility in quickly up and downscaling to support your business needs </li></ul></ul><ul><ul><li>Focus on supporting innovation in stead of supporting technology refresh. No more hardware refresh needed with much testing effort </li></ul></ul><ul><ul><li>Scalable JDE costs Transparent and predictable costs on a utility basis (pay-as-you-use ) </li></ul></ul><ul><ul><li>Reduced TCO By using Itil and ASL processes, best practices, tools, shared resources shared Utilities, virtualisation delivered with Rightshoring®. No more hardware refresh and much testing effort. </li></ul></ul><ul><ul><li>Strong Alliances Enabling innovations through Capgemini’s eco system </li></ul></ul><ul><ul><li>IT benefits </li></ul></ul><ul><ul><ul><li>Possibility to save IT costs with more than one third comparing to in-house operations </li></ul></ul></ul><ul><ul><ul><li>Using Standard (rchitectures </li></ul></ul></ul><ul><ul><ul><li>Single or dual datacentre setup </li></ul></ul></ul><ul><ul><ul><li>Virtualised setup, no hardware refresh needed </li></ul></ul></ul><ul><ul><ul><li>No infrastructure investments </li></ul></ul></ul><ul><ul><ul><li>All hardware owned by Capgemini </li></ul></ul></ul><ul><ul><ul><li>High Available, Scalable, Resilient, Reliable and Proven Service </li></ul></ul></ul><ul><ul><ul><li>24*7 controls </li></ul></ul></ul><ul><ul><ul><li>Industrial Approach and Compliant delivery (FDA, SAS70) Proven infrastructure and JDE operations </li></ul></ul></ul><ul><ul><ul><li>Temporary capacity for peak loads, one-off projects. e.g. new JDE software installations for upgrades or during implementation projects) </li></ul></ul></ul>
  32. 32. Zoom on Menu Cards
  33. 33. Current Menu Card Items <ul><li>Oracle eBS R12 Finance: </li></ul><ul><li>Global Consolidation Financial Reporting (GCFR) </li></ul><ul><li>Accounting Compliance - Multi Currency Ledger (MCL) </li></ul><ul><li>Accounting Compliance - Compliance with Accounting Board </li></ul><ul><li>Centralized Payables Management </li></ul><ul><li>Centralized Receivables Management </li></ul><ul><li>Asset maintenance - Revenue Taxation </li></ul><ul><li>Customer Collection Management </li></ul><ul><li>Customer Credit Management </li></ul><ul><li>Employee Expense Processing </li></ul><ul><li>invoicing XML </li></ul><ul><li>Rule Based Tax Derivation </li></ul><ul><li>Financial Analytics </li></ul><ul><li>Oracle eBS R12 Logistics: </li></ul><ul><li>Margin Master Buyers Workbench </li></ul><ul><li>Integrated Procurement Contracts And Compliance </li></ul><ul><li>Procurement For Complex Services </li></ul><ul><li>Online Sourcing Collaboration and Negotiation </li></ul><ul><li>Online Buyer and Employee Procurement </li></ul><ul><li>On-Line Supplier Collaboration </li></ul><ul><li>Warehouse Management Efficiency </li></ul><ul><li>Landed Cost Management </li></ul><ul><li>Inventory Data Management Attributes </li></ul><ul><li>Customer Portal </li></ul><ul><li>Integrated Customer Contracts and Compliance </li></ul><ul><li>Commercial Electronic Exchange </li></ul><ul><li>Oracle eBS R12 Projects: </li></ul><ul><li>Budgetary Tracking and Proprietary Accounting </li></ul><ul><li>Supplier Cost Management </li></ul><ul><li>Project Resource Planning </li></ul><ul><li>Project Billing </li></ul><ul><li>Project Analytics </li></ul><ul><li>Subcontractor Payment Management </li></ul>
  34. 34. Menu item LOG02: Margin Master Buyers Workbench <ul><li>What is it </li></ul><ul><li>The Margin Master Buyer’s Workbench is a new solution from Capgemini that is based on leveraging the market leading Oracle applications - along with multiple, customized propriety components - to give the buyers and planners within an organization the real-time information needed to maximize margins for their organization and improve the value in supply chain. </li></ul><ul><li>Margin Master Buyer’s Workbench has been created to automate the forecasting, netting, and purchase order review/creation into a streamlined process flowing into a primary workspace where buyers and planners will have access to all relevant data to make accurate purchasing decisions. </li></ul><ul><li>The Margin Master Buyer’s Workbench is an extension to Oracle EBS application. Its design is based on the leading practices to manage buyers/planners workbench. It leverages Oracle standard applications ASCP/Demantra/ Inventory recommendations and applies specific business rules to place and manage purchase orders. This Buyer's Workbench is a central desktop from which buyers can efficiently perform their daily tasks, such as viewing and acting upon demand, creating purchase orders, managing excess inventories, managing investment purchases. </li></ul><ul><li>What are the benefits </li></ul><ul><li>The key benefit is to AUTOMATE the forecasting, netting, and purchase order review/creation into a streamlined process. </li></ul><ul><ul><li>Integrated workbench for Planners and Buyers </li></ul></ul><ul><ul><li>Improving Inventory Management and Order Management by the use of forecasting tools and other advanced supply chain features. </li></ul></ul><ul><ul><li>Easily integrates with all Oracle Application modules such as Supplier Management, Inventory, Sales Orders, Demand Planning, Transportation Management, Warehouse Management, Financials and Purchasing. </li></ul></ul>
  35. 35. Menu item FIN11 Employee Expenses Processing <ul><li>What is it </li></ul><ul><li>This function provides an automated streamline processing of employee expenses. With Oracle Internet Expenses, employees can enter and submit expense reports using a standard Web browser or a Web-enabled mobile device. Oracle Approval Management Engine automatically routes expense reports for approval to the concerned approvers based on configurable conditions like Project/Non-Project related expenditures, Expense Amount approval limits etc. Further, reimbursement policies are enforced at the time of creating expense reports. Oracle Internet Expenses integrates with Oracle Payables to provide quick processing of expense reports for payment </li></ul><ul><li>Oracle Payables provides a feature that is specifically intended for employee expenses, and by combining that with the Oracle Payments and Oracle Projects functions, an integration is established that charges your employee expenses directly to a project or cost center and requires only the approval of an appropriate manager to have the expenses reimbursed following a specific time schedule and approval amount limit. </li></ul><ul><li>What are the benefits </li></ul><ul><li>Complete Audit Trail from Expense Report Creation till Payment </li></ul><ul><li>Employee expenses are integrated with Master Card or Visa Credit Card providers </li></ul><ul><li>Expense Report can be created offline in an Excel template and then it can be imported into I-expenses </li></ul><ul><li>Automatic auditing of Expense Report that are complying with organization policies without having to Audit all Expense Report thereby resulting in saving of time </li></ul><ul><li>Automatic routing of Expense approvals and notification to cost centre owners etc. as per the hierarchy existing in Oracle </li></ul>
  36. 36. Menu item FIN12: eInvoicing XML import <ul><li>What is it </li></ul><ul><li>The procurement invoice is one of the most used documents in today’s business. Every organization has to deal with incoming invoices. However in most of the cases it is still treated as a few hundred years ago, it is printed and send via normal postal routes. The last couple of years there has been some progress but it has not led to one optimized efficient solution which is always applied. There are a lot of different processes which are used. </li></ul><ul><li>Capgemini’s invoicing solution holds a generic adapter which can be applied to several ERP systems such as the Oracle E-Business Suite, SAP and JD-Edwards. It offers an integrated set of applications that are engineered to work together. </li></ul><ul><li>The bulk processing will be done by the use of an adapter that will process XML files with the use of Oracle’s XML Gateway. </li></ul><ul><li>XML Gateway is a set of services that allows easy integration with the E-Business Suite to support XML messaging. The Oracle E-Business Suite utilizes the Oracle Workflow Business Event System to support event based XML message creation and consumption. A business event that can occur is the receiving of a invoice. This will result in the automatic processing of the file. </li></ul><ul><li>What are the benefits </li></ul><ul><li>The key benefit is to automate processes that are otherwise performed manually: </li></ul><ul><ul><li>Invoice processing improves through automatic purchase order matching </li></ul></ul><ul><ul><li>Just in time invoice payments increase cash forecast efficiency </li></ul></ul><ul><ul><li>Paper invoices reduced </li></ul></ul>
  37. 37. e-Invoicing Menu Item <ul><li>Electronic invoice processing with Oracle eBS. </li></ul><ul><li>Menu Item with unique </li></ul><ul><li>Business Case! </li></ul><ul><li>3 processing channel solution: </li></ul><ul><li>XML </li></ul><ul><li>Portal </li></ul><ul><li>Scanning & Processing </li></ul><ul><li>It’s helping the clients payables process in terms of cost reduction, efficiency and compliancy. </li></ul><ul><li>Ingredients available: </li></ul><ul><li>* BP080 Future Proces Model </li></ul><ul><li>* BR100 Setup Documentation </li></ul><ul><li>* MD050 Functional Design </li></ul><ul><li>* TE020 Unit Test Scripts </li></ul><ul><li>* XML Mapping Explained </li></ul><ul><li>* XML Messages (examples) </li></ul><ul><li>* XML Transaction Maps </li></ul><ul><li>It’s waiting for you to be eaten! </li></ul>Does your appetite kick in and you are hungry for more? contact Jeroen Sprangers or check the wiki page (wiki search invoicing)
  38. 38. e-Invoicing Whitepaper
  39. 39. Zoom on Subscription Based Pricing
  40. 40. Philosophy of the Oracle Lifecycle Services offering <ul><li>Oracle Lifecycle – a new breed of productized services … </li></ul><ul><ul><li>Catalogue-based, off-the-shelf service </li></ul></ul><ul><ul><li>Complete lifecycle thinking: with standardized Value Management and innovation components </li></ul></ul><ul><ul><li>Simple & appealing commercial model: Subscription-based pricing and flexible contracting </li></ul></ul><ul><ul><li>Highly standardized and highly industrialized, yet flexible offering </li></ul></ul><ul><ul><li>Clearly defined scope : Out-of-scope services are not part of the fixed subscription fee, but will be delivered at extra charge as FP or T&M service </li></ul></ul>… Moving away from one-off projects/implementations to investments mutualized across multiple clients
  41. 41. There is a clear market trend and a strong Capgemini response – “Application Lifecycle Services” and “Oracle Lifecycle” There is a clear market trend identified by analysts, new models are asked for by our clients and our competition has partially picked up on this trend. We have a holistic answer “Application Lifecycle Services” Application Lifecycle Services Oracle Lifecycle Services classical classical current current new new TREND TREND <ul><li>Following the trend towards value based pricing, lifecycle concepts and productized services is essential to survive in the market and it clearly offers new chances: </li></ul><ul><li>Moving away from pressures on rate cards </li></ul><ul><li>Chances to improve margin through standardization & re-use </li></ul><ul><li>Value based pricing as an opportunity to improve margins </li></ul>Pricing Schemes  Engagement Types  (i) Time & Material (ii) Fixed Price (iii) Use based (iv) Value based (a) Resourcing - (b) Build (on requirements) (c) Run (maintain) - (d) (Run) / Build / Run (e) Run / RaIn / Run (Run, Rationalize, Innovate, Run) (f) Productized Services (from a catalogue) -
  42. 42. Commercial Model for Oracle Lifecycle Services: Subscription Pricing & Rolling Contracts <ul><li>Subscription Pricing </li></ul><ul><li>Fixed fee for a defined service scope (productized service as described in the catalogue) </li></ul><ul><li>AM and AD components are combined into one monthly fee paid over 3-5 yrs. Lifecycle contract term </li></ul><ul><li>Standardized pricing approach (fixed formula and parameters) based on an NPV-break-even calculation </li></ul><ul><li>Subscription pricing involves vendor financing (by spreading initial AD costs across the deal term  CAPEX to OPEX for clients) </li></ul><ul><li>Central Apps team is working with group Finance to build a “template” for vendor financing involving external financing facilities </li></ul><ul><li>This means moving away from effort/cost based pricing towards a market price for a package </li></ul><ul><li>Flexible Contracting (”Rolling Contracts”) </li></ul><ul><li>Targeting ROLLING CONTRACTs for Oracle Lifecycle reflects the true lifecycle thinking of the ALS philosophy by </li></ul><ul><ul><li>Institutionalizing value discussions and formalizing a (bi)annual roadmap creation </li></ul></ul><ul><li>Instead of engaging with a client in a 5+ year contract and only thinking about renewal when the final year of the term has arrived, </li></ul><ul><li>a rolling contract aims at shorter overall contract durations (e.g. 3 yrs.) and at instant renewals of the relationship with the client after the first year already. </li></ul><ul><li>This approach is seamlessly integrated with our mandatory Value Management component. </li></ul><ul><li>As a result of annual or bi-annual value creation meetings with the client, CG aims to renew the client relationship for a new (e.g.) 3-yr. term annually. </li></ul>
  43. 43. Cost determination (explained) Product impact on run Product maintenace Product developement Client implementation Cost of capital Product costs per month Interest compensation for deferred income Creating the ultimate reusable Mutualized costs Complexity dependant implementation costs More sales lower the investment costs Expected contract duration Annual interest rate = monthly rate at compund interest Menu item investment f or a specific client Interested monthly menu item costs Decoupling effort from payment Monthly operational costs Generic + specific maintenance Total cost per month != commercial price! Keeping the solution current, fresh and attractive Making sure the solution is working For the client
  44. 44. Upgrade Offering
  45. 45. Component Offers Fixed Price Assessment for Technical Upgrade to R12 (1:1) <ul><li>Objectives of Fixed Price Assessment Service </li></ul><ul><li>Evaluate impact on existing customization due to the upgrade – Amount of retrofitting required during the upgrade (Quantity & Efforts) </li></ul><ul><li>Findings and recommendations of Assessment – get buy-in on recommendations of the assessment especially on the technical efforts required for Upgrade </li></ul><ul><li>Focused on building detail Project Plan for Upgrade: Offers Fixed Price offer for the technical Upgrade to R12 (1:1) </li></ul><ul><li>Based on best practices and Lessons Learned </li></ul><ul><li>Reduce Risks during Upgrade – Minimal interruption to business with Proper Project planning </li></ul>
  46. 46. What we cover in Upgrade Assessment? <ul><li>Focuses on what’s important to you </li></ul><ul><li>Identify customization that would require retrofitting to work in R12 environment. How many of the current customizations will fail working on R12 and what is effort required to fix them? </li></ul><ul><li>Future Design Process: How will the current Business process be mapped to R12 and the new changes that impacts the business process? </li></ul><ul><li>Define R12 Technical Upgrade Approach. How will the Technical Upgrade to R12 be implemented with minimal impact to the business? </li></ul><ul><li>Perform Technical Infrastructure and Hardware Needs Analysis. Will additional hardware (or less) be required to support Oracle R12? </li></ul><ul><li>Develop a detailed project plan for the Upgrade: Detail project Plan with Timelines and resource requirements. </li></ul><ul><li>Propose a fixed price offer for the Upgrade: Fixed price for the actual upgrade </li></ul>
  47. 47. Upgrade Assessment Mobilize and Kick-off Business and Technology Review Conduct Work Sessions & Interviews Prepare, Finalize Present Findings 6 to 8 weeks of Assessment with 2 weeks for each phase with some overlap <ul><li>Validate project plan, logistics, and schedule </li></ul><ul><li>Schedule resources and work-sessions / interview schedules </li></ul><ul><li>Conduct project kick-off and align project team </li></ul><ul><li>Review existing work products and/or current documentation </li></ul><ul><li>Conduct informational sessions to understand existing systems and processes, key stakeholders, and project critical success factors </li></ul><ul><li>Compile an inventory of the current state technology to use in the R12 Upgrade Approach development. </li></ul><ul><li>Conduct sessions to demonstrate changes and events that need to be addressed and planned for in the R12 Upgrade. </li></ul><ul><li>Analyze impact on the current customizations using Capgemini Proprietary Tool: Custom SpotLighter </li></ul><ul><li>Consolidate findings and analyze results </li></ul><ul><li>Present R12 Business Upgrade Approach </li></ul><ul><li>Develop detailed project plan for the upgrade </li></ul><ul><li>Fixed Price proposal for the R12 Upgrade </li></ul><ul><li>Present findings and facilitate next steps and approach discussion </li></ul>1 2 3 4
  48. 48. Key Deliverables – Assessment <ul><li>The key deliverables along with Specific accelerators and corresponding benefits derived from these accelerators are shown below. </li></ul><ul><li>Detailed Upgrade Approach </li></ul><ul><li>Customization Impact Report </li></ul><ul><li>Interface Impact Assessment </li></ul><ul><li>Infrastructure Readiness </li></ul><ul><li>Detailed Project Plan </li></ul><ul><li>Fixed Price Proposal for Upgrade </li></ul><ul><li>Impact Analysis Tool Kit </li></ul><ul><li>Key facts to plan the upgrade </li></ul><ul><li>Effort estimates for customization </li></ul><ul><li>Analysis of future state readiness </li></ul><ul><li>Low Risk Execution Plan </li></ul>Deliverable Accelerator Benefit
  49. 49. Working with Oracle
  50. 50. Oracle is very interested in Partnering with Capgemini <ul><li>Oracle Application Management Suite in Enterprise Manager is good fit for our Oracle Run & Host offer and Oracle is very interested in engaging with Capgemini around this area </li></ul><ul><li>With our Fusion Co-Existence Roadmap offer, the Oracle PTS is very interested in us helping clients with Fusion Middleware and preparing for Fusion applications </li></ul><ul><li>House of Oracle Lifecycle covers almost all products in scope and engagement can be made with various organizations with Oracle to generate demand and leads and grow the install base </li></ul>
  51. 51. Unique Business Value Only Oracle can Manage Oracle © 2011 Capgemini. All rights reserved. <ul><li>Oracle owns the stack </li></ul><ul><ul><li>In-depth management (from just monitor to prompt diagnostics) </li></ul></ul><ul><ul><li>Single, Oracle-based management platform </li></ul></ul><ul><li>Simplified, integrated platform to Manage Oracle </li></ul><ul><ul><li>Builds Manageability within each layer of stack </li></ul></ul><ul><ul><li>Beyond generic bolt-on tools: Designed to work together: manage as one, automated! </li></ul></ul><ul><ul><li>Complete Business & IT visibility Understand real-user experience, business transaction flows and application artifacts </li></ul></ul><ul><li>Operational Excellence: Margin, Quality </li></ul><ul><ul><li>Automate manual, repetitive, error prone tasks in Application Management processes </li></ul></ul>Why Oracle for Capgemini ALS for Oracle clients?
  52. 52. IT Operations Challenges: Summary Oracle Application Management Suites © 2011 Capgemini. All rights reserved. Application Management Suites Better Quality of Service Cost of Downtime: 42,000/hour/87 Better Agility 40% of CIOs surveyed: lack of automation tools Lower Operational Costs 70% of IT budget to keep running User Experience Management Software Lifecycle Automation Configuration Management Systems Monitoring & Diagnostics
  53. 53. IT Operations Challenges: Summary Oracle Application Quality Management © 2011 Capgemini. All rights reserved. Application Quality Management Data Masking Lower Risk 75% of applications are deployed without testing Application Testing Suite Functional Testing, Load Testing, Test Management Real Application Testing
  54. 54. Marketing Assets to Leverage
  55. 55. Marketing Assets to Leverage © 2011 Capgemini. All rights reserved. Brochure / Fact Sheet Presentations Sales Battlecard Videos Direct Marketing / Mail Whitepapers
  56. 56. Sample Customers and Funnel Opportunities
  57. 57. A great market response TS shifting to Lifecycle WARP 1 targets * * * * * * * All deals not marked with are under Non Disclosure Agreement * * * *
  58. 58. 2011 Wins and Funnel <ul><li>WINS </li></ul><ul><li>Largest Sold Accounts in 2011 </li></ul><ul><li>UWV (NL) €29.9M </li></ul><ul><li>Fairpoint (NA) €15.1M </li></ul><ul><li>GM (NA) €3.6M </li></ul><ul><li>Manheim (NA) €3.2M </li></ul><ul><li>TeliaSonera (Sweden) €2.4M </li></ul><ul><li>KPN (NL) €2.1M </li></ul><ul><li>London Borough of Croydon (UK) €2.0M </li></ul><ul><li>NAV Arbeids- og velferdsetaten (Norway) €2.0M </li></ul><ul><li>TSF Broadband (Finland) €1.7M </li></ul><ul><li>AT&T (NA) €1.4M </li></ul><ul><li>FUNNEL </li></ul><ul><li>Navistar (NA) €59M </li></ul><ul><li>SNCF (FR) €59M </li></ul><ul><li>KPN (NL) €51M </li></ul><ul><li>Adecco (Spain) €45M </li></ul><ul><li>Sociedas Estatal Correos y Telegrafos (Spain) €28M </li></ul><ul><li>Dept. of Finance (India) €25M </li></ul><ul><li>Canon (NL) €25M </li></ul><ul><li>Smiths (UK) €18M </li></ul><ul><li>EMIX (Sweden) €16.5M </li></ul><ul><li>SNCF (FR) €22.1M </li></ul><ul><li>FT (FR) €15.1M </li></ul><ul><li>LNV (NL) €11.1M </li></ul><ul><li>Eneco (FR) €10M </li></ul><ul><li>Michelin (NA) € 9M </li></ul>© 2011 Capgemini. All rights reserved.
  59. 59. Links to More information
  60. 60. Links to More Information <ul><li>Application Lifecycle Services in 2011 Talent article </li></ul><ul><li>http://talent.capgemini.com/news/47214/ </li></ul><ul><li>Oracle Lifecycle landing page on Talent: </li></ul><ul><li>http://talent.capgemini.com/Infocenter/global_functions/global_services_lines/application_lifecycle_services/oracle_lifecycle/ </li></ul><ul><li>Application Lifecycle Services Hub on KM 2.0 </li></ul><ul><li>http://km20.capgemini.com/community/417080 </li></ul><ul><li>Oracle Lifecycle on the Capgemini Wiki </li></ul><ul><li>http://wiki.capgemini.com/index.php/Oracle_Lifecycle </li></ul><ul><li>Oracle Lifecycle on Capgemini.com </li></ul><ul><li>http://www.capgemini.com/oracle-lifecycle/ </li></ul>© 2011 Capgemini. All rights reserved.
  61. 61. Who to Contact
  62. 62. Governance © 2011 Capgemini. All rights reserved. THEO VAN ROEKEL MARY NIEMANN Henk Vermeulen ASHWIN YARDI Muralidhar Gidugu EXEC SPONSOR PRODUCT MANAGER DEVLOPMENT MANAGER INDIAN EXEC SPONSOR INDIAN DEV MANAGER KESHAV MITHAL SUNIL MUNSIF SUDHIR PAI EMIEL BOS OIVIND GLADSO / Carsten Velløv OIVIND GLADSO OIVIND GLADSO / Nina Rautelin OIVIND GLADSO / Christer Nordberg PHILIPPE ROQUES ALFRED AUE XXXX SAMUEL TUATI DIDIER GRIMALDI ELISABETTA SPONTONI Apps 1 Apps 2 Kevin Sullivan Paul Luckett Jan Richards Theo van Roekel Svein Frode Kristiansen Hannu Jarvi Johan Alpman Dominique Philippon Filip De Bruyn Andrea Martera Faisal Ghadially Marchel Tolboom Thor-Christian Lorange Ivar Aune Ari Vanninen, Annelie Barklind-Wranne KEVIN SULLIVAN PAUL LUCKETT (Oracle Alliance) Alexandra Fadin Sebastian Löw Edu Ortiz Geoff Swaffer
  63. 63. For More Information Contact © 2011 Capgemini. All rights reserved. Please contact: Mary Niemann Global Application Lifecycle Services Oracle Lead Capgemini Nederland +31 615030971 [email_address]
  64. 64. Call to Action
  65. 65. Call to Action <ul><li>Shift your paradigm and change your thinking. </li></ul><ul><li>Think big </li></ul><ul><li>Think global </li></ul><ul><li>Think multi-year </li></ul><ul><li>Think opex </li></ul><ul><li>Think Run </li></ul><ul><li>Think Host </li></ul><ul><li>Think full lifecycle </li></ul><ul><li>Think value </li></ul>© 2011 Capgemini. All rights reserved.
  66. 66. © 2011 Capgemini. All rights reserved.

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