Unknown

[AUDIO LOGO] [MUSIC PLAYING] SPEAKER: Three routes of carbon emissions over targets. Please see suggested new rail routes to reduce emissions 14.6%. ANNOUNCER: Please welcome to the stage Steve Miranda. STEVE MIRANDA: Thank you very much. Good morning, everyone. It's great to be here with so much energy from all of our customers and our sponsors and partners. I'm going to go through a lot of content today. I'm going to go through three major announcements and applications. And more importantly, we're going to have three customer interviews. And what I hope, following on the lead that Safra started yesterday,

that you'll take away is a theme of how you can achieve lasting success, and in this case, lasting success with Fusion applications. Now before I get started, I think it's important to start with some level of context. When I had this discussion or gave this presentation four or five years ago, or even further back when we introduced Fusion applications, what we talked about was that in SaaS applications and in Fusion, what we really needed to provide our customers is the ability to adapt quickly to change so that their infrastructure wouldn't be an impediment, but actually

would be an asset to them so they can react to this change. And if you go back several years ago, there was a lot of talk about disruption. And if you remember 2018, 2017, people were worried about Amazon and people were worried about Uber and people were worried about, well-- or I want to become the next Amazon, I want to become the next Uber. People being disintermediated. They either wanted to defend or they wanted to change. And we built applications to help with that. But then 2020 came along and the world stopped. And all of

a sudden, the conversation talked about, we had to adjust to working from home. We had to deal with our customers digitally. We had to have a whole different supply chain or outlook on supply chain and deal with supply chain disruptions. And again, all of you had to-- have your businesses react to that very, very quickly. And then today, I don't know if you've heard, but we're talking about AI a lot. And we're talking about generative AI. Now six months ago, probably wouldn't have talked about generative AI. Last year I didn't talk about generative AI. Certainly

in 2018 I wasn't talking about generative AI. But the common thread and the common theme is-- and what I said in 2018 and in 2020 and now today in 2023, the only thing that we have for certain is the speed of change is only increasing. And by Oracle providing Fusion applications with quarterly releases with hundreds of new features for those quarterly releases, it is our job to partner with you to enable you to best adapt to that change whatever that change will be. So next year, it'll be something else we're dealing with. The following year,

something else. And together, Oracle, our customers, and our partners are going to achieve lasting success through that. And in the three customer interviews, that's what we're going to be talking about. But there's more than the three customers. So at this stage, we have over 14,000 customers on Fusion applications. Some of the largest, most well-respected industries-- companies in all industries around the world. In health care, you're going to hear a great update from Francis about Providence. But we have many other customers and partners around health care. I've been a long-term executive sponsor with the Cleveland Clinic,

one of the largest hospitals in the United States. And we just had a meeting. They've gone through their go-live, financial supply chain, they've done acquisitions, they've moved acquisitions to the platform, and now we just spent two days and it was just exclusively talking about how they're going to drive value in their business of this continual change and with our continual investments. In financial services, a who's who of financial services organizations. Last year, we had JPMorgan Chase on stage talking about their HR implementation. They went HR, they implemented learning, they implemented payroll, they implemented recruiting. And

now, in those steering committee meetings, the CHRO of JPMorgan Chase is talking to the team and it's all about, hey, those 100 new features Oracle delivered, how many have we adopted? And when are we going to adopt the others, and what business value are we driving from those? It's all about driving business value and investments drive business value. In telecommunication, again, a who's who of the largest, most well respected organizations in the world. You're going to hear from KPN and Tatiana later on in the presentation. We have those and professional services. Again, two steering committees

I sit on, have the pleasure to sit on from First Republic and Arcadis. Again, implemented multiple phases. Go-live, successful. And now talking about how do we continue to enable business change adopting new features and driving business value? In common in all of these customers, we're now talking about business metrics. What metrics matter to you? Is it cycle time? Is it converting leads? Is it days to close? Is it days sales outstanding? Is it automation of AP? And in every use case, driving business metrics, adopting new features, improvement. I can go on and on. In the

gaming and hospitality, we have a great tremendous partnership with all of our customers. Marriott, same thing. Adopting from core HR, adding payroll. Globally, again, through the ups and downs and changes they've had to go through the pandemic, and now it's all about adopting brand new features and implementing change. In industrial manufacturing, the third customer will have up is Cohu. So Cohu will tell you their story in semiconductors and semiconductor equipment and semiconductor equipment testing. Complete end-to-end suite implementation. Now talking about how to adopt AI, AI features, and improve their business. And then, really, a who's

who across logistics companies. If you ever had a package delivered to your home, it's very likely coming from a Fusion application. DHL, FedEx, UPS, and many, many more. So that just gives you a little bit of context for our customers. Now how do we do this and what do we really focus on? And this really hasn't changed. Our continual strategy is we want to provide you everything you need to run your business. Everything you need. Whether it's Oracle-provided, industry-specific applications, or, in fact, partner applications, and I'll cover all three in this presentation. We want to

drive innovation that matters. Again, going back to those steering committees, we're no longer talking about, well, what do I need to get go-live? We have many, many, many customers who've done that. It's driving what is your business problem, what business metrics matter to you, and how can we partner together to take the latest in technology and deliver business success? And then our commitment to customers, and I'm going to talk with our individual customer interview to explain what we mean by that. So what do we mean by everything you need? Well, it starts from the complete

suite of applications. The Fusion applications, everything from our Customer Experience application, sales, service, marketing, everything you need to touch the customer, to generate new leads, to bring new customers to your business. Through the supply chain, order management, supply chain, manufacturing, planning, inventory, warehouse management, and more in supply chain, on through to the billing and the financials. For HR, Including consolidations and EPM. And then with the backbone of HR. HR, payroll, benefits, complete end-to-end. But in addition to the end-to-end Fusion applications, more and more integration with industry applications. So we talked about last year integration between

Cerner, and this year, in all the keynotes from HR, CX, supply chain, and financials, we talked about the integration and brand-new features we've delivered between Fusion and Cerner. And that'll be a continual theme for all of our industry applications delivering between what is traditionally a horizontal application set to give you end-to-end business processing that's the top of the stack. The bottom of the stack is Oracle is the only application vendor that is both in the application business and in the technology business. And you can hear-- for those of you who are technical, Clay Magouyrk and

Juan Loayza are on later on today, and they will give you all the latest innovations in technology. For you, the SaaS customer, in your SaaS application, the good news is, you don't need to worry about that. You get it automatically. You get it for free. You get it included. What do I mean by that? Every single one of our application customers, except for our US federal, which is a federal regulation, all of our commercial application customers have now migrated 100% to our OCI infrastructure. What does that mean to you? That means you have a brand-new

data center, you have brand-new networking, you have brand-new storage, you got a brand-new version of the database, you got a brand-new version of the operating system, you got a brand-new version of the tools that underlies that. You get a faster application, you get a more secure application. And what you used to deal with in terms of technical debt if you run an on-premise application, you don't have to worry about that anymore. You are on the latest and greatest. And so everything, when you hear autonomous databases getting better and faster, when you hear OCI is getting

better and faster, when you hear about, hey, we have security updates at a variety of layers to ensure, that all comes automatically to the SaaS customers, and we built and we engineer it that way, and-- for all of our customers, all of those 14,000 I talked about. Now we're extending everything you need, and we're extending that leverage of the technology stack into AI and artificial intelligence. Now a couple of years ago, I talked about Fusion applications, and we had things called AI apps. And in fact, we've been using AI or machine learning in the application

for several years. You've had applications like IoT and supply chain, you had supply chain planning, which is effectively an AI application in itself. We use it for document image scanning. So if you scan images, we do character recognition. And we use machine learning to improve the character recognition. We have machine learning on audit capability, to detect suspicious transactions in finance to help and facilitate your audit. But at this conference, we're announcing a brand new set of generative AI capabilities. And Larry talked a lot about how different this is and how differentiating this is. And again,

what we're announcing today is not a partnership, it's not a roadmap, it is over 50 new features across the suite available to 100% of our customers in the modules you already have and you use today, which will be available over the next two releases. Let me give you some examples. And when I say across the suite, CX, HCM, financials, and supply chain. In CX, we use generative AI to assist authoring. So whether that's be in service agents to respond to questions from clients, it could be to generate knowledge articles for service, it could be in

terms of field service recommendations, we can use it for sales reps to help generate proposals. Automatic AI generation, press the button, the AI generates the text on your behalf, human-reviewable, and go forward. This is some of the 50 use cases. These are in CX. In ERP, we use what we call a whole host of AI capabilities and generative capabilities around summarization. So features we call management reporting and narrative reporting. You can take reports, financial reports, balance sheets, income statements, AP trial balance reports-- any report and you can have gen AI summarize that report for you.

Summarize it in text form. So you have your report that the Fusion applications produce, but now gen AI can supplement that report with a textual summary including areas that you should look out for to make your job in terms of reviewing reports, in terms of getting the importance reports that much easier. In supply chain, we've added generative AI in terms of item descriptions, and also in terms of suggestions for supplier negotiations. So having generative AI take your items, and as you write the item description, we'll write that for you-- or rather, the computer will write

that for you, taking human labor out of the equation. In HCM, we've had a number of areas to have an gen AI. In recruiting, you could have gen AI that will have the qualification. So if you do a job post and you want to put, well, what's the job about and what is the qualifications? You need three years of experience, you need a college degree, you need to be able to have certain-- gen AI can generate that for you. Oftentimes, we have survey questions in terms of HCM. You generate surveys going forward. So that's a

sampling of the 50 use cases that are going to be delivered today over the next two releases. 100% of our customers get them automatically through your SaaS updates, included in the products you already own. Now, what I'm most excited about gen AI is, I think this is just the beginning. We get, today, 80% of our features come from ideas that our customers post to us. And what I see happening already is now that we've given you a sample in different areas, hey, here's what we can use gen AI for. Here's what it's good for, here's

how you can use it. What's happening is, all of you and all of your constituents back home are sending us ideas. And again, because we have that quarterly release and that speed, we're going to add those ideas to the product very quickly, and as gen AI improves, we'll improve the applications, and as you give us ideas, we improve the applications. And that's how we change and be dynamic and enable you to not only not behind technically, but to keep up functionally so that, again, no matter what the change brings over the next two or three

years, we're going to work together and bring that to you. OK, so enough of me talking about that. Let me introduce first-- it's my pleasure to introduce Frances Chao. Frances is a Group Vice President of Enterprise Business Applications at Providence. [APPLAUSE] FRANCES CHAO: Hi, Steve. It's good to see you. STEVE MIRANDA: Thank you for joining us. FRANCES CHAO: Thank you. STEVE MIRANDA: So Frances, maybe you can start off by telling the group, what is Providence, a little bit about your mission, and then your role at Providence. FRANCES CHAO: Sure. And first off, Steve, thank you

so much for inviting us to speak today. It's really exciting to be here and to talk about Providence and our journey here. Providence is a Catholic not-for-health-- not-for-profit health organization that health-- we truly believe that health is a human right. And we believe that everyone should have the access to health care regardless of their ability to pay. In our legacy of 165 years of investing in our communities, we invested $2.1 billion into community benefit programs last year alone. We focused on free and low-cost uncompensated and subsidized care. In our mission to serve everyone, Providence has

grown to a $28 billion organization across seven states, 51 hospitals, and over 1,000 clinics with 117,000 caregivers. I've been entrusted to run our enterprise business applications across finance, supply chain, HR, and also workforce management systems. And for the last four years, I've led our ERP and HCM cloud transformation with a lot of our business leaders that are here today with me. STEVE MIRANDA: That's great. Now I talked a little bit about the change, and obviously we saw the change that everything stopped in 2020 pandemic. You guys were literally on the front line of that. Can

you tell us, in spite of that or included through that, Providence dealt with a lot of stress to some-- helped us all. Why did you decide to change business processes? What type of changes were you looking to make? What were you hoping to achieve from that? And why did you decide to go forward even with a lot of other things happening in the world? And obviously, more important things going on in terms of what you were trying to do as you're caregiving, but what was really the push to change processes and what were you hoping

to gain? FRANCES CHAO: Well, like a lot of health care organizations, we grew a lot through mergers and affiliations, and that resulted in disparate processes, disparate technologies. Our technology was outdated, so we had really limited ability to scale quickly. But also, take on innovation. So when I think about our manual workflows with limited controls, sometimes no controls at all, it really hindered our productivity. So our organization had to take a step back and think about where we wanted to go. We didn't know where we were going to go, but we knew that change was coming.

And I think that's what I'm most excited about where we are today, is we took on this program-- it was three years. It was a long program, but pretty quick for what we put together across-- we implemented all financials, all supply chain, all HCM-- EPM over three years, and where we are today is exciting. Because when I look at it, our ERP technology is no longer a hindrance to where we're going to go, it's now really an enabler for us to look at our business processes more closely, our practices, our policies, and really focus on

that for optimization. So it's pretty exciting for us right now. STEVE MIRANDA: So let's rewind history a little bit because there are some in the audience that are in the same spot as you. There are other in the audience that are maybe even at the beginning or maybe even deciding, do I want to move to the cloud? So can you take us back to the beginning? And what were some of the things that you looked for and why did you choose Oracle at the beginning? FRANCES CHAO: I remember this journey when we were looking at

our systems and where we wanted to go. And I remember thinking, when I looked at these vendors, knowing that we wanted to innovate and modernize our cloud ERP, I was thinking, which vendor do I want to marry? Because this is a commitment. We don't change ERPs often. The reason we looked at Oracle and where Oracle really differentiated itself from other vendors was, you guys had beyond just the core functionality. It was a completeness of your solution. So as we look at core ERP functionality, whether it's GL or fixed assets, we wanted a vendor that truly

had a complete solution that looked at stuff like demand planning or supply planning, grants management, talent management. So that was a huge differentiator for us. I think the other thing that really stood out for us with Oracle was-- I think you said it, well, earlier. Not only were we looking at a software vendor, we knew that we were going to get technology innovation pretty quickly going with Oracle. And so we actually were a part of that OCI Gen 2 move, and one of the most impressive stats that we had is a lot of our extracts,

our processes reduced processing times by 25% to 70% with simply this Gen 2 migration. STEVE MIRANDA: Yeah. I wish I would have known a little bit about that background-- I'm going to go off script for a minute here. Don't panic. FRANCES CHAO: You promised me you wouldn't. STEVE MIRANDA: Well, just for context, I think it's important for context. So I wish I knew this three years ago. So a few years ago when they were making the selection process, I flew up-- we had a demo day, I entered the demo day. There was a bunch of

people in the room. And in the very front row on the right side, I still remember it like it was yesterday, it was Frances Chao. And Frances, I gave my pitch, and she grilled me. So it was-- yes, it was a little bit like a marriage a long-term partnership, but boy. So we've gone from that-- that intense conversation to the success today. So in that intense conversation, large implementations, there's always some challenge. Whether it's data from the old systems, whether it's controls, whether it's process change, the system or the software, a variety of challenges. Can

you just describe what was it like? How did the relationship work between Providence, your partners, and Oracle? In the tough times. Not when things are going great. But when, hey, we've got a problem, we've got to work it out. FRANCES CHAO: Yeah. I'm not going to lie, Steve. Oracle is a big company. It's extremely difficult to navigate for your customers. And so, yeah, at the beginning, figuring out who we needed to go to for what was challenging. But I know, as we got closer to go-live and we started facing a lot of our problems, what

I really appreciated the most is everyone came together and you could not differentiate who was Oracle or who was our SI from Deloitte or the business or IS, and it was truly an army that Oracle brought. I think what was important for me at that moment was everyone was committed to our success. And I'm not sure if we decided to take on this ERP program during an unprecedented pandemic, which really drove our organization to come together and unite, and I appreciated our vendors understanding that. And so our partnership with Oracle was great, our partnership with

Deloitte was great. And everyone worked together that when we got on calls, we didn't even know who was from what organization. So I joked sometimes where a lot of folks say, it takes a village to raise a child-- I just had a daughter recently, I think it takes a village to go live with an ERP successfully, and so that's what we had. STEVE MIRANDA: Great. OK, so I don't want to miss anything. So you're live, full suite, financials, projects, assets, grants, procurement, inventory, core HR, including benefits, payroll, talent management. In that suite, pick some of

it or pick all of it, what are some of the benefits you've seen so far? FRANCES CHAO: So I knew you were going to ask me this question, and I thought about it a lot, and there are a lot of different operational metrics that we do see that were trending positively because I think we talked about it. It's like, what did you trend prior to go-live, what do you trend now? And I've had a lot of these conversations. And we do see improvement when we look at time to recruit, time to start. Well, one of

the things that we're most focused on is I don't want to compare us to before we went live because that's too easy. Where we came from, it's too easy to look at those metrics. What I think is most exciting now is to look at our metrics now, and as we take on new functions and features, especially with AI and ML, is to start measuring those metrics and seeing whether we optimize our process, change our policies, change our data, and to start measuring those metrics now. So I'm more excited about challenging us to improve upon our

baseline now than where we started three, four years ago. STEVE MIRANDA: Great. And so, again, you were there from the very beginning in this selection process. I talk a lot about the speed of change and speed of innovation. From your perspective, if you can give-- I don't how you score it or how you compare it. For example, software then versus a software now. FRANCES CHAO: I was so skeptical when we met. You guys kept convincing me supply chain would work for health care. So-- I know, it was a challenging conversation, but when we started, I

would say that the financial product was really mature. I think HCM was mature. I think supply chain for health care we were really, really nervous. I think we identified over like 60 critical go-live gaps. Through the course of the three-year implementation, almost every one of those was roadmap. And that was pretty amazing to us. But I will be honest. I am still shocked today on how quickly some of our fixes are coming in, the features, the functions. I never thought today we would actually be at Oracle CloudWorld and taking on AI features as of last

week. That is really cool for us. So yes, you have kept your commitment that it was going to work. STEVE MIRANDA: Any advice that you have then for-- at any stage the customer, the beginning, middle, coming through, at post, go-live, advice you'd have for the audience? FRANCES CHAO: So yeah, I actually have a lot, but I think the one thing that resonated with me that's really evolved me as a leader on my journey is, my leader, the CIO, when I first met him, he always said, you know what? If you're going to fail, fail fast.

Lean into it. And I think that is one of the biggest things that I learned, is don't be scared of change. Lean into it. If you're going to fail, fail fast and try again. And I think that was really important. And the last thing I would leave everyone with is, as you're embracing this change, when you're trying to get ready for go-live, you're never going to get perfection. There's always going to be issues when you go live, so don't wait for perfection. Just be ready that when you go live that you're able to support your

organization, you're able to listen to the feedback that you get from the organization, you just gotta find that right balance of going live with some risk and being prepared to handle that risk. Because otherwise you're just going to keep pushing that go-live. And we were able to do it, and we stabilized, and now it's really, really exciting for us to take on all these functions and features. STEVE MIRANDA: Great. Thanks, Frances. It's a pleasure. FRANCES CHAO: Thank you so much. [APPLAUSE] STEVE MIRANDA: So when Frances says she was skeptical at the beginning, trust me, I

was there, she was very skeptical at the beginning. But, for those of you, I think it's a good representation. I meet with a lot of customers and say, hey, we're just starting, and one day, I'm going to be up on stage at CloudWorld. So Frances was one of those. We'll have many more of you next year. OK, next big announcement. An innovation that matters. Last year, we introduced a new concept called Oracle B2B. And the concept was very similar to what I talked about with industry applications, that we don't want to just stop in what

was traditionally in ERP, but we're going to extend to industry applications. Well, in this case, we don't want to just stop in terms of where the Oracle boundary stops because all of you use the ERP and you make payments or you receive payments and you deal with banks. You ship product and you deal with logistics providers or 3PLs. And all of those organizations are on the cloud with APIs, and all of you are on the cloud with Fusion applications. So last year, we announced a partnership with JPMorgan Chase and with FedEx. And we've delivered that

capability to do expense reporting, touchless expense report. In fact, if you see me afterwards, I'll show you the credit card. I don't think it's in the budget to buy everybody a drink, but I'll buy some of you drinks and I'll show you a real live demo of how it works, integrating directly to payments a complete touchless expense reporting system. We've got over 50 customers who are now adopting that in early adoption mode. We've completed a work with FedEx. But as I promised last year, we are extending that partnership. And I'm announcing today, we've extended that

partnership to now include Mastercard and HSBC. And the Mastercard-HSBC partnership will have all the same connections that we had with JPMorgan in terms of payments, in terms of expense reports, and in terms of touchless transactions. But one area that we're very excited about to have Mastercard and HSBC on board is something called a virtual card. So a virtual card, in simplest terms, essentially all of us today use our credit card. Very, very seldom are we writing checks. Those of you who are around my age, you're probably-- used to pay your bills with checks. Pretty much

has gone away, you're using the credit card for just about everything. Why do you do that? You do that for convenience, you use it for easy reconciliation. Why do your suppliers want that or why do you want consumers? They get immediacy of payment going forward. However, in our businesses, using a credit card or a virtual card is very, very seldom used. It used for expenses, but not really for B2B transactions. So why is that? Well, in business and for B2B, you don't just have a single credit card and a credit limit, you're buying things. You

have things that are more associated with a purchase order. So you have approval to buy something from a given supplier from a given amount, a given time period for a given good or service. And what you need to have, then, is that definition. And that is essentially what a virtual card is. It's an agreement with the financial services provider to provide you a very specific card for a very specific purchase, very specific supplier and a specific amount, so that can be approved. So what is the problem? Why aren't businesses using virtual cards more? Well, you

essentially then have to have this connection to the bank and give up a bunch of information. Well, what are you going to buy, who are you, what's your credit, what are you going to use it for, et cetera? If only there were a place that had all that information. That's Fusion ERP. So we've got the Fusion ERP information, we know what the purchase order is for. We know your suppliers, we know your credit limit, we know what you're buying, and we have a direct connection to HSBC and Mastercard from our cloud to their cloud, so

we removed all of the friction in getting a virtual card. And then by having a virtual card, you as the buyer get all the benefits that you as a consumer get for using a credit card. You get automatic card payment runs, you have credit flow, you have better fraud protection, you have the ability to have financial rebates from the card companies. If you're the seller, you get an early payment for straight-through processing, automatic remittance reconciliation. And all of this transactions that are automated today-- or if you're a Fusion customer and you issue a PO to

another Fusion customer that then has an AP invoice that goes to a bank and a bank statement, and then it has it-- gets shipped through FedEx or through another logistics provider and you have a tracking number. And then you have a bunch of people that do that reconciliation. All of that end-to-end through integration and automation is part of the Oracle B2B Network. We announced JPMorgan Chase and FedEx last year. We announced HSBC and Mastercard this year. In between, we've had tax providers, we have other financial service providers, logistics providers. And we're going to continue on

this pattern. Because just like in industries, we are-- yes, we are an ERP application and a CX application, HCM. We're going to expand that into industries. But also, we live in a cloud ecosystem, and all of those 14,000 customers on the exact same cloud, and they leverage the exact same connection to all of the partners. Full end-to-end automation. OK. That's the second announcement. Now, is my great pleasure-- the most fun that I have is talking to the customers, so let's go to one more. Let me introduce Craig Halterman. Craig is the CIO of Cohu. [APPLAUSE]

Thanks for joining us, Craig. CRAIG HALTERMAN: Thank you. STEVE MIRANDA: So Cohu is a manufacturer. In fact, the world's leading manufacturer in the semiconductor industry. Can you give a little description of Cohu does and your role there? CRAIG HALTERMAN: Sure. The CIO role is what I joined for in 2016. Now the role that was 2016 is not what I'm doing now. The digital transformation that we've gone through for the last three to four years has actually changed what I do in the composition. So when I joined the company, I spent more time dealing with operational

issues, I dealt with application support. Now I'm actually a part of the business more. And I actually spend a lot of time trying to work on the strategy and actually aligning to what the business is doing instead of what maybe I would have been doing in 2017 and '18. So Cohu is a global leader in producing high-tech products for the semiconductor manufacturers, and also, the large companies that consume and use semiconductors. So what that means is that you have to have a product, a physical product. Our products are designed and engineered in the United States,

Europe, Asia. And then we actually manufacture our products, too. So our production facilities are in the United States, Germany, Japan, Philippines, Malaysia, Singapore. So I think everyone understands that semiconductors are used in many products and many industries. So you think about what the volume is and the increase that's happening, the auto industry is now consuming the most semiconductors or chips. And that's being driven by not only the sensors, but the potential to have autonomous vehicles and the IOV and-- but also the compute. Everything that we've been talking about for the last few days here in

Oracle CloudWorld is something that's probably going to consume more chips, whether it's AI or whether it's the fact that wearable technology, medical devices. So we are a highly engineered and highly configured to order for our customers. And what we have to do is focus more on having the products aligned to what our customers' innovations are so that we have to do that. So instead of spending our time doing Oracle Cloud, we were doing a lot of things to support the old system. So now we've digitally transformed, we are supporting more of our customers. STEVE MIRANDA:

So you're a manufacturer, you're a manufacturer of high-tech equipment, and your customers are some of those technical companies as well. So extremely technical company. What made you move-- decide to move to the cloud? Or what was the driver behind it? And why Oracle in that move? CRAIG HALTERMAN: It's a pretty easy answer now that I'm sitting here in the chair. At that point, it was a matter of, we couldn't align our strategy as a business to actually complete and do the things we wanted to do. We had grown through acquisitions, and our acquisitions, our strategy

was simple-- we integrated. Well, that meant that we changed the sign on the building and changed our business cards. Nobody did anything with all those systems. What that meant was that we had five and six and seven of everything. We had five supply chains, we had different legal structures, org chart of accounts. Everything was complex. And it meant that the local sites, whatever the entity was, whatever the acquisition was was going to actually be supporting and sustaining everything in that ecosystem or business functionality. So what we wanted to do was be able to grow, and

we couldn't grow through acquisitions. We had to grow through this process of elimination, and we were being impeded on our growth strategy because of that. The second thing we really looked at was, we didn't want to go through customizations, we didn't want to go through another on-premise integrations. It was basically impossible for us to do that. So we wanted to replace the DNA of our overall business and we wanted to do that by eliminating the legacy systems of SAP and GLOVIA and SYSPRO. We also wanted to build for the future, that foundation of having the

systems be able to be flexible and scale for the next acquisition. So we had to do something to eliminate and put that flexibility and scalability in, and we really wanted to become unified as one cohort. So that was one of our overall strategies. We also-- we wanted to buy into the most comprehensive cloud-based platform that we could actually get because that technical stack was going to be important for us as we grow forward. We wanted to have the end-to-end data flow, and Oracle presents that. STEVE MIRANDA: Now when you say end-to-end, it's end-to-end. You start

from Fusion CX and Sales, Service, Marketing, you go on through the supply chain-- again, a very high-tech manufacturing supply chain-- through to Financials, HR, end-to-end implementation. What was it like-- you heard Frances earlier talking about-- when she couldn't tell who was on the call, whether it's SI or the partner or development, which is great. How was it-- what was your experience like working with Oracle and working with the partner-- how did such an end-to-end implementation come to light? CRAIG HALTERMAN: Yeah. We opted the first round of implementation for us as a big bang, and we

did that because we talked ourselves into not doing a big bang at first. And the answer kept coming back to the same message, which was, if we're going to be able to deliver this and if we're actually going to be able to get out of all these customizations and integrations, if we don't do a big bang, we're going to go build more and we're going to have to sustain more and our budget is going to double. We're going to elongate the schedule, and we add more risk. And that's what we didn't want to do. So

we opted for that. We went live with everything from-- we even take our CAD and mechanical drawings and pump it to the front side on the PLM and it goes through the whole supply chain, ERP, all your accounting, like your EPM, your CX, and all the other things that support the business. That was probably one of the bigger things. We also expanded our-- we had an HCM, but it was a single site, and now we're a global HCM solution throughout the organization. But the success of the projects basically only because Oracle and Inspirage brought talent

and technical skills to the solution and provided that for us. We would have never been able to do this by ourself, and it became a marriage, a relationship that we will sustain and will continue. STEVE MIRANDA: It is rather ironic that the fact that you're a very technical company, you have a lot of technical talent. It was almost harder, you had to self-discipline a little bit more. Don't build things, let's get out of the box going forward. Now across that broad portfolio, similar to what I asked Frances at the beginning, you guys have been on

a long journey with us, it's been live for quite some time, but what are the changes you've seen in the product? Either at purchase time or maybe go-live, what's been important to you as far as the evolution from the product perspective and delivery? CRAIG HALTERMAN: I think the strongest message that I would say or tell anyone here is the fact that when we started in 2018, the second half, and then we went live in 2020, we went through some early releases of the Fusion products. And there were some challenges and gaps. And the gaps were

both also driven because of our business model, but also the fact that there were things on the roadmap that Oracle was working on they just hadn't delivered. And through those challenges or maybe those early releases, the way I would say it actually straightened strengthened our partnership because we learn to listen to the ideas, the technical options, and ultimately, solutions have happened. And the continuation and the maturity of all the products continues every 90 days. You're getting a upgrade release. Those features and functions have now been deployed. We've now taking advantage of some of the AI

and ML-type capabilities. It's just a matter of, it's a strong relationship. You need to not necessarily think of perfection. But if I look back whether I could have integrated, built, or customized the solution, the answer is no. And that's why I'm going to relate all my answers to the future for Oracle because I'm going to get out of that business of building, and I just want to be an integrator. I want to get my people focused on business, not on spending time worrying about the next upgrade or the next customization that we're going to have

to support. STEVE MIRANDA: Yeah. One last person building the accounting systems, one more person building chip-testing systems in manufacturing. So been live for three and a half years now with that full scope. Business benefits you've seen or business benefits you hope to come forward? CRAIG HALTERMAN: Oh, there are a lot of them. I think that there are things that just hit you immediately, is the fact that-- what we talked about in scalability and flexibility as far as being able to acquire the next company, we've done that multiple times since we went live. And each time

we've brought in and been able to integrate the business into the core platform of all of our transformation in Oracle Fusion. It's going to continue. We're going to continue to buy and acquire. And because of that, we want to make sure that they're bringing in. We're going to assimilate them. If you're a Star Trek fan, maybe the Borg, we're going to assimilate you whether you like it or not. But it really is about keeping people focused on their core capabilities of being a product company, not being a back office accounting, designing, software company. We now

have people out of the hunting-and-gathering phase. They've actually spent time doing their job, doing strategic and operational decisions, not being the hunting and gatherer of Excel files. Those things continue as far as we now have the ability to be flexibility and scalability. If the business changes, we're ready for that. There's no opportunity for us to really expand our market in the core business. We want to retain our customers, so we're going to bring our customers and our supply chain closer, and we've done that, too. STEVE MIRANDA: And then advice you'd have. So you've gone, again,

you're at the very much three and a half years, full suite, big bang, but advice for customers who are anywhere along that journey? CRAIG HALTERMAN: I think Frances said it right on a lot of things. I think I will only add to the fact that self-awareness, know what you are as a company, do not have a false impression that you're going to be able to do anything different than what you were in the past. Or know your data. Understand what your processes are. We had to use the system to be a catalyst to actually change

and align and do things. Work to the capabilities and strengths of Oracle Fusion. Don't believe that you have to support status quo and contain all of your systems of past product of records or whatever you might want to call them. Move it forward. Look for the future in the success. STEVE MIRANDA: Great. Craig, thank you very much. CRAIG HALTERMAN: Thank you. STEVE MIRANDA: Appreciate it. CRAIG HALTERMAN: Thank, Steve. [APPLAUSE] STEVE MIRANDA: I mean, Craig just kept on the theme. Moving forward, and again, to steal from Safra's presentation, leadership, risk-taking, being courageous, and going forward. I

think Craig's a perfect example of that. I kind of laughed. When he talked about acquisitions, I could just imagine that-- I don't think Cohu, when they're talking about acquiring a product, is trying to figure out, well, should we acquire this company? I wonder how they do their financials, I wonder how they supply chain. Just don't do that. They acquire best-in-class product companies and they use Fusion applications to bring those together. So, let me give you my last announcement. So we are proud to announce another new set of features. And again, continuing the theme, we have

a brand new Fusion Data Intelligence Platform. Now what is a Fusion Data Intelligence Platform? We've had for quite some time the Fusion Analytic Warehouse, an end-to-end data warehouse that would automatically integrate with Fusion from HCM, Finance, Supply Chain, and CX applications. So by integrate, I mean extract the data, giving you real-time dashboards, giving you flexible report-building, and a classic or a traditional data warehouse in reporting-style fashion. Now we've taken the Analytic Warehouse and we've added on top of that. And we've expanded it with AI and ML capabilities to not only make it a reporting warehouse,

but to help drive actions, actions and recommendations. So you have your data from Fusion applications, integrate it to a data warehouse, out-of-the-box reports and dashboards, but now with AI and ML, recommendations and actions for you to take, whether that be in CX, supply chain, HCM, and finance. And because it's not a standalone data warehouse, but integrated, allowing you to drive those actions and drive and push transactions into the transactional system. In addition to that, the common piece of feedback we have from customers is that while Fusion is a large part of their ecosystem, and in

the Cohu example, really an end-to-end part of their ecosystem, you have other applications as well. Whether It's whether it's demographic data or third-party data or other data that you need for your business, be it in a system in-house or externally. And it's important to be able to bring that external data in and model it. And with the Fusion-- the new offering, Intelligent Data Platform, you're allowed to not only have that integration with Fusion, but incorporate third-party data, have the same reports, have the same AI, and generate actions going forward. And if you think about the

three areas that I talked about today, from B2B and from FIDM, the integration of the data platform, and extending the industry applications, it's all about taking what is traditionally a flow and really making it end-to-end flow. Expanding what you do today, providing more and more capabilities to enable you to automate more and more of your business functions. Now before I introduce our final customer, I also want to say is, we produce hundreds of new features every quarter in every product area. I gave you three. Please attend and listen to-- in Financials, there's been great work

in terms of financial reporting, a lot more details around B2B transactions, they've done a tremendous work in health care. In supply chain, a lot of advancements in procurement, brand-new UI in procurement. Again, more health care capabilities and other industry capabilities. And tremendous progress in manufacturing, including process manufacturing. In HCM, last year, we announced a host of new features. This year, we have HCM Grow and HCM Celebrate. And continue to drive efficiencies in payroll and automation. And in CX, end-to-end marketing generation going forward. And all of those-- meaning marketing to sales to generate leads and attract

those leads into actual sales activity. Not just tracking marketing activities, but end-to-end engineered selling process. So I just touched the surface of all of those, but you should really, if interested, dive in, and we have sessions for all of those. Now, with that, it's my pleasure to introduce Tatiana Sumina Tatiana is the Executive Vice President and Program Director of Oracle Cloud at KPN. [APPLAUSE] TATIANA SUMINA: Hi, Steve. STEVE MIRANDA: How are you? TATIANA SUMINA: Good to see you. STEVE MIRANDA: Tatiana, welcome. TATIANA SUMINA: Thank you. STEVE MIRANDA: So KPN-- and KPN we'll get into a

little bit later, is your second goal with Fusion applications. But let's talk about KPN. They're the largest telecommunication provider in the Netherlands. You've been there a couple of years, two and a half, three years now as a program director. Maybe tell us a little bit more about KPN and your role. TATIANA SUMINA: Yes. So KPN is telecommunication provider number one in Netherlands. We serve B2B customers, consumers, wholesale markets as well. We deliver a variety of services. Netherlands is relatively small country, but it carries the title of being one of the most connected countries in the

world. And we have a dream. We want to make it the most digital country in the world. And I oversee transformation of internal processes enabled by Oracle Cloud, and this contributes to our digital agenda. We really want to be digital for our customers, but we need to be digital inside. STEVE MIRANDA: And so the digital speaks to some of the challenges of this strategy. Can you give a little more context into what are the business challenges that KPN faces has faced and really drove this move to the cloud and move to Oracle? TATIANA SUMINA: Yes.

So as technology industry, we deal a lot with the future solutions and technologies. We discuss the things which will happen in a few years today. It takes time to build all of them. And for sure, we look ahead, and at certain stage, it becomes clear that complexity or legacy might hold you in the pace how fast you can catch up on technologies, how fast you can innovate and deliver the services. And it might also bring unneeded costs, which can be optimized in the future perspective. It was clear for us that we need to start changing

to be ahead of the curve, and we've been looking for cloud-based solutions that's the future. We've been looking for dynamic solution which can change, evolve relatively fast. End-to-end platform to bring as much as possible process into one seamless experience and one transparency. And also, that helped us to support innovation domain because we really wanted to make sure that we can grab best practices from the globe and bring them into a company and leverage them. STEVE MIRANDA: So it's interesting. Very similar to what Cohu said, just making sure that, as you needed to change, you need

to innervate, the systems couldn't be an impediment, had to be an asset for you, not a blocker for you. And why Oracle was part of that? What were the driving factors that had you choose Oracle? What stood out at the time? TATIANA SUMINA: As I mentioned, cloud for us is not a discussion, it's out of the table, it's defined. We've been comparing various suites, and our strategy was to have as much as possible end-to-end coverage of our processes. Maybe to give indication, we brought 2.5 billion spent into one platform. That's the resources, what we manage

annually. And we wanted to make sure that this can be brought into a seamless experience that is end-to-end traceability and there is a solid data background for AI. We are betting on AI as well. STEVE MIRANDA: Yeah. Now let's go back. And let's go back even before KPN, because as I mentioned at the beginning, you've actually done two implementations now at two very large telecommunication companies, KPN being your second. When we started, or when maybe we first met, what was your view-- or what do you think the software was then? What's the software like now?

Can you describe for the audience a little bit of the speed of change and how it's been important to your organizations. TATIANA SUMINA: Yes. So we met first in 2018 year-- and when you meet Steve, you probably have trouble. And we were preparing for go-lives for this template. And I had in the pocket more than 50 blocking gaps, so it means you cannot go-live until you find something out. And we had a meeting and I was betting, OK, we will figure out three or five what we do. And you told, no, we go through all

of them to make sure that they are progressing within the organization. That says a lot. We went live with my previous employer, and now, five years down the road, we brought very big suit, very complex set of processes with only three customizations. The product have changed. I think that it became more flexible. Now there are some choices in configurations what you can make. It got more best practices. And here, in some cases, we even learned from Oracle, oh, that's the next bar how we should do the things, it's woven. And that's probably my personal observation,

it changed a lot. It's two different products. STEVE MIRANDA: Yeah. So 50 gaps initially. And for those of you in the audience who haven't gone live or haven't chosen Fusion, you don't have to be skeptical or bring me 50 gaps. I can still have you on stage just to be-- another rough meeting. So we had 50 gaps, we went through them, gone live. Actually gone over a couple very large multinational telcos around the world, very sophisticated businesses and supply chain. Now that you're live, supply chain, finance, some of the benefits you start seeing and some

of the benefits you hope to achieve at KPN. Business benefits. TATIANA SUMINA: Yes. I would say there is one benefit what people rarely recognize, but I want to bring it first, is a change of mindset of people who are now dealing with this processes. Here, I should compliment the team, which is sitting somewhere here. I think that they removed multiple boxes, so we are not thinking in the boxes anymore. And I think that now, they are the most precious asset to drive it further. For sure, beyond this, we have some pragmatic business-related benefits. Simplified IT

landscape. So we are retiring almost 80 applications. IT team fight it heavily to make the simplest possible set of integrations via half of integrations compared to what we started. And in business, we have much better insight on each and every euro-dollar we spend across the company. We have fantastic transparency and digital support to our employees, which are our core asset. And we get some forced benefits already. We are five months just after go-live, and first financial things start becoming visible. STEVE MIRANDA: So it's interesting. I mean, you pointed out something that I probably should have

included in my opening points, because it really is the key. Why is it that we want to extend these business processes? You have half the integration you used to have and you have better visibility to the data. And that is actually not two separate things. That's-- they go hand-in-hand. When you have these integrations, it's really difficult to get insight into data because you've got data here, you've got data there, you bring it together, it disagrees. You cut your integrations in half, implement a whole business flow, you get better visibility and better transparency. TATIANA SUMINA: And

there is enormous uplift in data quality because you forced us to look in what we have in all other applications. Now the data set in this new platform is much better, and we are open to discuss AI. It would be almost impossible to do it with the old legacy applications. We've been on time. STEVE MIRANDA: Yeah. And again, you've been now through this journey a couple of times from selection, you've gone through implementation, including, as you say, business process change and changing the boxes, if you will, even roles changing and responsibilities changing. Advice you give

to the customers at any part of the journey that you see? TATIANA SUMINA: So two critical points. The first one, use technology as a catalyst for your transformation. It's all about whether you transform. You cannot just bring technology, a product, and feel better and feel really good. You really need to rethink your business model together with this product. It will enable you to do much more in a different manner, and that's where the value comes. That would be one recommendation. And second, such programs never come as contractual relationship. So it's partnership. It's very easy to

say, oh, let's start in partnership, but usually, it starts with decent share of doubt, decent share of concern. But if all parties are focused to bring it into a partnership, then you will succeed. And for us, it was really true partnership between KPN. We looked pretty often in the mirror what we had to do differently. We had great support of Deloitte team helping us with the transformation, helping us with some choices what we need to make as a business. And we had Oracle team advising us how to use product better, how to do configuration. And

despite big concerns at the beginning how we will deal with global Oracle, that always scary, we had Lighthouse program we had customer success managers who knew how to find the right people and they were available for us. So that's a magic power of Oracle. When you get the right expert, you have your answers, and there is-- and you can find this right person via right channels. So that's probably the key advice. STEVE MIRANDA: Well, it's been a pleasure. When Safra has talked about courage and leadership and risk-taking and embracing that change, I've seen you in

action now a couple of times and it's just tremendous and we want to thank you again for joining us. TATIANA SUMINA: Thank you very much. Thank you. [APPLAUSE] STEVE MIRANDA: So similar to-- I talked about how I launched three of the features, there's hundreds more. You saw three customers. Well, in fact, there are thousands more customers. We now have over 5,000 customers. Could you go back-- over 5,000 customers who have moved from either EBS, PeopleSoft, Siebel, JD Edwards, Hyperion over to the Fusion Cloud and have achieved a success that you just heard today. And more

and more of my conversations, while it started off, how are we going to get there? When are we going to go live? What business process? Now we are definitely at an inflection point. We are at an inflection point of driving business value, driving the features for us to partner with you. And that's why I really wanted to end conclude with what I said at the beginning, well, what does it mean around customer success? And there's a few things that I want to call out. We have new roles. Tatiana mentioned customer success managers and center of

excellence. We have Lighthouse programs for when we have new features we have early customers adopt. We've worked very, very closely with all of our partners to deliver metrics and methodologies to have you go live to get rapid return on investment and rapid value. We've also introduced a new Customer Connect, which is an online community that has all of your users, all of the Oracle product managers, and all of our partners. And they contribute and talk about what we call ideas or what used to be called enhancement requests. There's also a brand new section around how-to

questions to enable you to share how do you implement things. And it gives direct feedback into our product managers to improve the product-- not just fix defects, but really, really improve the product. But beyond all of that, I just really want you all to understand the audience. When we say customer first, and I really wanted to make sure, particularly with Tatiana and with Frances coming because I knew them from the very, very beginning of the process, and we gave a personal commitment in that selection process that we would make them successful. And I want all

of you to understand that when you choose Oracle and Fusion Cloud, you have the top team anywhere in the world. And they are personally committed to your personal success. We take this very, very seriously. We understand the apprehension, or what Frances called skepticism, or what Safra called the courage needed to move forward. These are large projects that run large enterprises, and you are, generally speaking, the representative for your organizations. And know that you have the top organization in the world right behind you committed to your success now and going forward. Thank you very much. Enjoy

the rest of the show. [APPLAUSE]