This document discusses integrating Salesforce.com and Oracle Demantra for strategic planning. It describes how Power Integrations, a semiconductor manufacturer, uses Demantra to create a detailed sales forecast incorporating opportunities from Salesforce. This integrated forecast is used for production planning, sales goals, and financial projections. Key implementation points include manually flagging Salesforce opportunities for inclusion, defining an "opportunity window", making the process simple, and ensuring transparency. The benefits to Power Integrations are forecasting new business from Salesforce and building correct inventory levels.

1. Putting the “S” in S&OP
Integrating Salesforce.com and Oracle for
Stronger Strategic and Tactical Planning
October 7, 2015

2. Welcome
• Presenters
› Mark Gouldsberry, Sales Operations Manager
Power Integrations
› Ferguson Neal, Principal Consultant
AVATA
www.avata.com

3. Su p p ly Ch ain P rac titio n ers
Coupled with Deep VCP Expertise
Gartner Recognized as Industry Experts
Oracle Demantra Specialized
Fusion Co-Development Partner
#1 Oracle VCP Cloud/BPS Partner
Partner Award for Excellence in VCP
Specialized by Oracle Preferred by CustomersRecognized by Industry
The AVATA Difference: Domain Expertise

4. The Challenge
• Companies have difficulty bringing in quality
information from Salesforce.com (and other CRM
tools) into their Supply Chain planning process.
• There is untapped value in bringing the “best of
what’s in Salesforce” into your Demand picture –
and enabling true analysis of the impact of Big
Deal shifts on your revenue forecasts and
Operations.
• Integrating these systems often creates questions
around the line between automation and human
decision making.
www.avata.com

5. Perceived Obstacles
• “We can’t bring in sales data – it will
overwhelm our forecast with data we
can’t use.”
• “The sales forecast is biased – they
don’t look at things from an
operations point of view!”
• “I can’t use a Demand Planning tool to
track Exceptional Demand/Deals.”
www.avata.com

6. Customer Case: Power Integrations
• Leading Edge Manufacturer of Proprietary High Voltage AC/DC
Semiconductor Chips.
› Founded 1988; $350M revenue.
› 600 Employees worldwide.
• We plan for the global entity at great detail: Geography, Region,
Customer, Part.
• Main IT Applications:
› Oracle ERP
› Demantra, SNO
› Salesforce.com
• Minimize In-house IT resources.
www.avata.com

7. Markets and Channels
• Wherever there is a plug:
› Cell Phone Chargers, Appliances, LED Lighting, Tools,
Meters, Computers.
• High Voltage:
› Windmills, Electric Trains, Electrical Transmission,
Solar Power.
• Demand Channel:
› Contract Manufacturers, Design Houses,
Distributors, OEMS, Resellers.
www.avata.com

8. Detailed Sales Forecast Drives Planning
• Using Demantra we create a forecast by SKU/end customer/month
by quantity & ASP – Every month for 12 months out.
› For all parts; all customers.
• Inputs driven by SFDC opportunities (New Deals), Field Sales (Key
Customers), and Demantra statistical engine.
• Meet with marketing/production/finance and tweak and adjust.
• From Demantra, produce a detailed MRP input and a detailed
financial forecast.
• Production lead times are months, Order lead times are days or
weeks.
www.avata.com

9. 3 Constituents of the Forecast
www.avata.com
• No “over-the-wall” mentality – we drive a true
consensus forecast.
› Operations: Units – drives supply planning.
› Sales: “Are we meeting our sales goals.”
› Finance: The forecasts we give the street.
• Demantra as “One Source of Truth.”
› It brings together all forecast data into one view.
› It allows us to forecast at any level of detail.

10. Salesforce.com Pipeline is Critical
For a large percentage of our business, past sales cannot determine the future!
• Vast majority of our revenue is driven by “Design Wins.”
› Proprietary products: Once we win the business, we win it for the life of that product.
› We get a forecast from the customer – but actuals can change dramatically.
• Many customer design cycles are yearly or less.
› You are then either in our out for the next few months or years.
• Part-volume can be driven by only a few customers.
• We innovate!
› Data in SFDC drives forecasts for new products.
› Creating new products, expanding our markets and cannibalize existing products.
www.avata.com

11. www.avata.com
“Design Win” “Design Production”
• Sales Flags Opportunity in SFDC.
• Opportunity Visible in Demantra
(Reference Series, Unit Detail).
• Human: Checks reasonableness of Design
Wins and updates Demantra forecast.
• SFDC Captures point when Opportunity
moves to Production.
• Visibility of move to Production.
• Human: Removes from Demantra
Reference Series.
• Forecast now driven by either Demantra
Statistics or Field Sales.
Consensus
Demand Meeting
• Design Win Forecast
• Statistical Forecast
• Sales Forecast
Leverage the “Best of What’s in Salesforce”

12. Keys to Success
• We don’t data dump everything.
› In SFDC: A human flags an opportunity for inclusion into Demantra.
› In Demantra: A human validates what the quantity in the forecast should
be.
• Sales must be accountable for their forecast (both good and bad).
› We make the Demantra forecast available to Sales team directly through
Salesforce.com.
• Data from SFDC must be fresh (need a methodology to
review/update/close).
• Master data strategy for integrating the two systems.
www.avata.com

13. Benefits to Power Integrations
• We forecast everything, so the statistical engine is great for
long term business and the long tail.
• However a significant part of our business is for high margin
new business with a limited customer base.
› The only effective way to forecast this is through Salesforce.com.
• We’re building the correct inventory before new orders and
capture the business.
www.avata.com

14. AVATA: 4 Key Implementation Points
www.avata.com
• At Power Integrations, it’s a manual flag.
• At other clients, Demantra data can be segmented into “Exceptional” or “Deal Demand” vs. Run-rate.
Define Opportunity Criteria
• The window within which Salesforce data can be relied on to make better decisions.
Define SFDC “Opportunity Window”
• Make it easy for everyone to contribute.
• Demantra access through SFDC important for Sales contribution.
Make it Simple!
• Ensure everyone understands the inputs and resulting impact on the final forecast.
Be Transparent

15. Q&A Session
Jim Heatherington
Vice President of Sales
(C) +1 412-337-4642
jim.heatherington@avata.com
Email
connect@avata.com
www.avata.com
Contact us to know more.