According to IBM’s C-suite study, COOs of the most successful organizations are making fundamental business strategy and operating model changes. They are redesigning their operating model to be closer to the point of demand, innovating their ecosystems for speed to market and introducing cloud and digital technologies to enable business agility, real-time insights and process automation. IBM has been working with Oracle to develop unique industry solutions based on Oracle Cloud (SaaS/PaaS) to leapfrog your digital transformation. One of our innovative solutions is the Supply Chain Control Tower for Oracle applications which provides end to end supply chain visibility, enriched data for supply chain insights and informed decision making using artificial intelligence (AI). In the sourcing and procurement area, IBM can help you transform a traditional and linear source-to-pay solution by applying industry best practices, digitizing operations, reducing procurement costs and increasing supplier performance. IBM’s RPA (Robotic Process Automation) solutions for Oracle SCM Cloud can monitor and manage processes to increase supply chain effectiveness and speed while reducing manual intervention.

1. Oracle Modern Supply Chain Experience 2018
Get a competitive edge with IBM and
Oracle Supply Chain Management
January 30, 2018

2. 2 Oracle Modern Supply Chain Experience 2018
IBM’s Global C-suite Study series draw on
more than a decade of research with over
39,500 interviews
2,314
North
America
773
South
America
2,039
Western
Europe
711
Middle East
and Africa
876
Japan
1068
Asia-Pacific
567
Central and
Eastern Europe
1147
Greater China
2018
12,500+
1. Disruptors & responses
2. Innovative technologies
3. Intelligence + IoT +
Automation
• Real-time visibility
• Integrated digital
operations
• Operational efficiency

3. 3 Oracle Modern Supply Chain Experience 2018
Disruptors and Responses
IBM C-Suite Study
say competitors use innovative technologies or
approaches to deliver a more compelling value
proposition
56%
Many business models are under pressure from competitors with
more compelling value propositions
6 out of 10
participants
anticipate that industry
convergence will drive the
enterprise to develop new
strategies & operating models
IoT
Mobile
Cloud
REAL-TIME
VISIBILITY
INTELLIGENT
AUTOMATION
57%
92%
83%
95%
AI and machine learning
Robotic process automation 39%

4. 4 Oracle Modern Supply Chain Experience 2018
Real-time Visibility meets AI
IBM C-Suite Study
“Our biggest opportunity is to
understand our business models
not only as 'business-to-business,'
but also as 'business-to-business-
to-customer' and even 'business-
to-business-to-society.”
Tetsuji Ohashi
President and CEO, Komatsu Ltd.
Japan
Improve quality and operational efficiency, with less
human and financial risk
Enable new services, business models and revenue
streams
Applying AI to vast amounts of data from IoT will enable
new patterns, opportunities and actionable insights
Enable new classes of IoT products and services that
sense, reason and learn
70%
68%
63%
60%
Intelligent IoT and visibility will enable business model reinvention
leading to new services and revenue streams

5. 5 Oracle Modern Supply Chain Experience 2018
Intelligent Automation: Industry 4.0 and beyond
IBM C-Suite Study
Appreciation for these technological advances even includes people talking with machines:
over half of those surveyed anticipate that natural language processing will allow human-to-
device and device-to-human understanding. What’s more, many executives expect to rapidly
improve their organizations’ cognitive automation capabilities – and to realize substantial
business value – in the near future. In fact, 75 percent indicate intelligent machines will have a
meaningful impact on their business performance within the next three years.
will have a positive impact on
operational efficiency
75%
of operational executives
surveyed say intelligent machines
will meaningfully impact their
business performance in the
next three years
70%
of executives surveyed expect
intelligent machines to lead to
higher-value work for employees
Figure 1
Executives are seeing the positive impact intelligent machines can have on their businesses
Question: To what extent do you agree with the following statements about human-machine interactions? “Agree” and
“Strongly agree” responses.
Increasing automation will have a positive impact on operational efficiency
76%
Natural language processing will allow human-to-device and device-to-human understanding
Increasing automation will have a positive impact on quality
Intelligent machines will provide new catagories of insight that enhance decision-making
Intelligent machines will have a meaningful impact on my business performance in the next three years
Increasing automation will reduce financial risk
70%
46%
57%
69%
75%
The results of our study show that these technologies are moving toward the mainstream, and
that executives are recognizing their potential to provide ongoing value. Seventy-six percent of
respondents agree that increasing automation will have a positive impact on operational
efficiency (see Figure 1).
Appreciation for these technological advances even includes people talking with machines:
over half of those surveyed anticipate that natural language processing will allow human-to-
device and device-to-human understanding. What’s more, many executives expect to rapidly
improve their organizations’ cognitive automation capabilities – and to realize substantial
business value – in the near future. In fact, 75 percent indicate intelligent machines will have a
meaningful impact on their business performance within the next three years.
76%
of executives surveyed report
that increasing automation
will have a positive impact on
operational efficiency
75%
of operational executives
surveyed say intelligent machines
will meaningfully impact their
business performance in the
next three years
70%
of executives surveyed expect
intelligent machines to lead to
higher-value work for employees
Figure 1
Executives are seeing the positive impact intelligent machines can have on their businesses
Increasing automation will have a positive impact on operational efficiency
76%
Natural language processing will allow human-to-device and device-to-human understanding
Increasing automation will have a positive impact on quality
Intelligent machines will provide new catagories of insight that enhance decision-making
Intelligent machines will have a meaningful impact on my business performance in the next three years
Increasing automation will reduce financial risk
70%
46%
57%
69%
75%
2 The human-machine interchange
Executives are seeing the positive impact of
intelligent automation on business
performance and higher value work

6. 6 Oracle Modern Supply Chain Experience 2018
Business Process View (not incidents or detail) and IT Dashboard that provides executive view of critical
functions which measure and manage customers applications across disparate platforms and providers built
upon Oracle, Riverbed and IBM tools and services.
Supply Chain Control Tower
SFDC Cloud Oracle Cloud
Enterprise Application Visibility
IT
Mfg Ops
Sales Ops Finance
Custom 3rd Party Applications Oracle EBS
Globally Integrated View
XYZ Company Cloud
Predict and Prevent.
Detect.
Solve.
Learn – Self Healing
disturbances and create alerts
disturbances as they arise
issues based on history & analytics
and improve recommendations over time
Sales
Orders
Closing
Transactions
And Reports
Mfg Work
Orders
Technology
Avail
Sales/
Mfg/Fin
Ops/IT
Critical Function Availability
BPMON
-Applications
-Business Processes
TechMON
-Network
-Servers
-RDBMS
-End Users
Focused on
business
process, not
specific issue
Mobile enabled,
with embedded
collaboration
tool
Optionally, a
service provided
(Implicit Model to
monitor and
solve)
Business cycle
based
Key
Features
War Room/Online Resolution Room

7. 7 Oracle Modern Supply Chain Experience 2018
Procurement Transformation
M O N T H S
0
Process Automation, Transformation & Strategic Sourcing
Digitization & Automation, Catalog Management, Supplier Network. Contract Management
Risk Management
Blockchain
A W A R E
Low compliance, under 50%
spend analyzed, disparate
suppliers and limited data
visualization
L E A D I N G
Best-in-class Compliance,
80% spend analyzed,
Consolidated suppliers in most
categories
D E V E L O P I N G
Compliance in pockets,
55% spend analyzed,
Still fragmented suppliers,
High profile category spending,
Visualization & early
collaboration with
stakeholders
O P T I M I Z I N G
Above average compliance,
75% Spend analyzed,
Consolidated suppliers in key
categories, Full data
visualization
P R A C T I C I N G
Median compliance,
65% spend analyzed,
Fewer suppliers, Initial data
dashboard
Advanced Analytics & AI Enabled Insights
Demand Forecasting. Sourcing Intelligence. Cost Modeling & Scenario Analysis, Travel Insights
3 6 9 12
Buying Experience
10-15%
savings
10-15%
savings
18
Dynamic Discounting Market Place
The Path to AI - average is not enough

8. 8 Oracle Modern Supply Chain Experience 2018
Model for Procurement Transformation
Next Generation Source to Pay Solution
Advanced
Analytics/AI Risk Management
Blockchain
Process Automation
Classification &
Analytics
Contracting
Lifecycle Management
Requisitioning Review & Approve Create PO
Approval Policies
Accrue/Relieve Tax
Encumbrance
Pay
Collaboration
& Negotiation
Award Mgmt Catalog Management
Receive
Order Collaboration Invoice Collaboration
Matching Rules
Reconcile
Sourcing
#1
#2
#3
+

9. 9 Oracle Modern Supply Chain Experience 2018
AI Solutions for ERP
Artificial intelligence
Simulation of human
intelligence processes
Robotics
Conception, design, manufacture,
and operation of robots
Machine learning
systems
Ability to learn and improve
without explicit instructions
Natural language
processing
Ability to understand human speech as it
is spoken
Deep learning
Machine learning with artificial neural
network algorithms
Predictive analytics
Predicting outcomes using
statistical algorithms and machine
learning
AI Advisor
Analyze data and suggest
something as per user’s
interest
IoT
Offers advanced connectivity
of devices, systems, and services

10. 10 Oracle Modern Supply Chain Experience 2018
Robotic Process Automation
CAPABILITY DESCRIPTION
► Robotic Process Automation
develops & deploys automation
(virtual engineers) that executes
repeatable processes and provides
operational / ticket analytics
CLIENT BENEFITS
► Reduce process execution time
► Reduction of wait time & monitoring
hours
► Eliminates mistakes and improves
quality
SHOW CASES
► Services monitoring
► Customer event management
► 24X7 activities for Hyperion admin or
business processes
Consistency
of outcomes
Reduction of
error rates
Enhanced response
& remediation
times
Scalability to meet
peak workloads
Quality of serviceEnrichment of
inputs to human
engineers
Zero disruption to
client’s IT
environment

11. 11 Oracle Modern Supply Chain Experience 2018
Blockchain: A shared, replicated, permissioned ledger …
… with consensus, provenance, immutability and finality
Auditor
records
Regulator records
Bank records
Participant B’s
records
Blockchain
Insurer records
Participant A’s
records

12. 12 Oracle Modern Supply Chain Experience 2018
Benefits
1. Trust increased, no authority "owns” provenance
2. Improvement in system utilization
3. Recalls "specific" rather than cross fleet
What •Provenance of each component part in complex
system hard to track
•Manufacturer, production date, batch and even
the manufacturing machine program
How •Blockchain holds complete provenance details
of each component part
•Accessible by each manufacturer in the production
process, the product owners, maintainers and
government regulators
Supply Chain use case for Blockchain
Optimize Ecosystems
Streamline business
processes and the
exchange of value along
your ecosystem
Reduce Risk
Replace uncertainty
with transparency and
a trusted
decentralized ledger
Create New Value
Exploit new business
models and eliminate
inefficiencies

13. 13 Oracle Modern Supply Chain Experience 2018
Oracle Cloud Impact Assessment (CIA)
With over 15,000 Oracle eBS customers
globally
Initial target to help these organizations
move from eBS to Oracle Cloud
The roadmap to Oracle Cloud for these
customers can take different journeys:
- eBS to Oracle ERP Cloud and Oracle
EPM Cloud
- Artificial Intelligence and Robotic
Process Automation built for ERP
- eBS to Oracle cloud IaaS or a hybrid
approach