IDC Positive Perspective of Value Chain Summit 2014
By Stephen Slade on Mar 15, 2014
Executive Summary: This IDC Perspective summarizes the 2014 Oracle Value Chain Summit, February 3~5, 2014 : "For us at IDC Manufacturing Insights, the Oracle Value Chain Summit is a superb event...At Oracle OpenWorld, only a small percentage of the conversations are really valuable because the coverage is so broad — here, all the conversations are really valuable." Key event takeways include:
- Supply Chain
- Oracle continues to progress its capabilities in supply chain. Though there were many good presentations on the breadth and depth of Oracle's supply chain offerings, the real testament to the company's success comes from the manufacturers in attendance.
- Rick Jewell framed the event very nicely with his keynote address. In his keynote, Jewell adopted a term to describe 21st century supply chains: modern supply chains. Further, he highlighted a number of key principles, including, notably, customer centricity and responsive networks.
- Four notable topics of discussion:
- Bringing production/assembly closer to demand via nearshoring.
- Emerging market growth remains the primary growth strategy for many manufacturers, and we are seeing a significant uptick in interest in global trade management (GTM) tools.
- The connection of innovation to growth and profitability goals is clear, and we see manufacturers spending more time and effort in developing a more productive innovation funnel.
- The role of customer service, and being "customer centric," has reasserted itself as the top priority for many manufacturers.
- Product Value Chain
- Oracle's Innovation Management addresses the process from ideation to funding, with a handoff to Oracle's Agile PLM for development and commercialization.
- John Kelley, Oracle's VP of Product Value Chain, expanded on Oracle's vision for supporting product life-cycle management and how manufacturers could use Oracle Product Value Chain offerings to reduce cycle times from design to introduction and take 3–5% out of product cost. Those metrics are certainly critical to manufacturers, and they are trying to measure and increase the value they receive from their PLM investments.
- At the event, examples of successful Oracle PLM implementations and use cases came from customers that included Cisco, ConAgra Foods, Dell, HP, Motorola Solutions, McDonald's, SGI, and Zebra Technologies.
- Four notable topics of discussion:
- Integration-Most of the examples referenced the value of integration from Oracle's Agile PLM to other systems including ERP, CAx, and LIMS. The importance of facilitating handoffs, such as product ingredients to labels or engineering to manufacturing, was also valued.
- Analytics-In the exhibit area, one of the largest crowds that gathered was for PLM analytics. Besides getting easy access to information and dashboards that are relevant to the user and specific roles, we believe some of the interest also relates to security and compliance.
- Security-It's fair to say that security starts with unique identification for access to Oracle's Agile PLM but must include processes, such as holding managers responsible for notifying IT with changes in personnel immediately or educating employees on secure access.
- Regulations-With RoHS, WEEE, REACH, and now conflict minerals regulations, most manufacturers are looking for ways to ensure compliance is documented and in place, scalable, and manageable, with the least disruption to the business as possible. Most referenced working through (or implementing) Oracle's Agile Product Governance and Compliance for those capabilities.
Action: Share this favorable report with as a third-party perspective on the Oracle Value Chain Summit, and to pass along positive comments about Oracle's Supply Chain offerings, Oracle Agile customers and capabilities and Oracle Innovation Management.
More Information: The IDC Perspective is available in its entirety here.