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An Oracle White Paper March 2013 Oracle Value Chain Planning on Oracle Engineered Systems Performance Sensitive Applications Disclaimer The following is intended to outline our general product direction.
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An Oracle White Paper March 2013 Oracle Value Chain Planning on Oracle Engineered Systems Performance Sensitive Applications Disclaimer The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle. Executive Overview... 2 Oracle Value Chain Planning Solution... 3 Introduction to Oracle Engineered Systems... 6 Oracle Exalogic... 6 Oracle Exadata Database Machine... 7 SPARC SuperCluster... 8 Oracle Engineered Systems for Oracle Value Chain Planning Solutions 10 Example #1: Supply Planning on Oracle Engineered Systems Example #2: Demantra Applications More source data More granular models Improved work sheet performance Example #3: Service Parts Planning and Forecasting Example #4: Advanced Planning Command Center Example #5: In-Memory Consumption Driven Planning (IMCDP) Example #6: Oracle In-Memory Performance Driven Planning (IMPDP) 19 Improved scalability Improved user experience Key Benefits: Increased User Satisfaction, Lower Total Cost of Ownership, Faster Time to Value, Increased Application Availability and Transaction Scalability Lower total cost of ownership Faster time to value Increased user satisfaction Increased Application Availability and Transaction Scalability Conclusion... 23 Executive Overview Planning value chains has always been challenging and as these value chains have become more global and more complex, the degree of difficulty in managing them has also increased. Trends in business and economic conditions as well as emerging technology have added to the complexity. Planners are under increased pressure to plan these more complex value chains faster and more frequently, to a greater level of detail, and to make better decisions and share them with more decision makers in the company. Oracle Value Chain Planning is the leading solution of planning applications for the value chain, with brand name customers successfully running their complex value chains and achieving significant benefits. Oracle Value Chain Planning enables companies to sense demand quickly; shape it for revenue growth; improve value chain agility at strategic, tactical, and operational levels; supports a company-wide sales and operations planning process that incorporates risk mitigation and postponement strategies; enables profitable service operations and optimized planning for maintenance; and offers complete enterprise visibility and continuous monitoring of key value chain performance indicators. As value chain networks grow in complexity, planners deal with increased data volumes, increased need for near-real time responsiveness to sudden problems in the supply chain, and simulate changing business models that continuously adapt to the competitive and customer landscape before they actually happen. Planning solutions must meet the highest standards of mission critical enterprise systems in terms of availability, performance, scalability, and security. This whitepaper describes the benefits of deploying your existing Oracle Value Chain Planning solution on Oracle Engineered Systems, and how that can provide the optimal solution for today s planning challenges. 2 Oracle Value Chain Planning Solution Oracle Value Chain Planning consists of many products that each has their own role in the planning process: Demand Signal Repository: Integration with point-of-sale systems, syndicated data systems, retailer and distributor systems, and other systems for the purpose of sensing demand. Oracle Value Chain Planning can analyze demand data at various levels to understand the detailed behavior of demand. Such detailed understanding of origin and relative contribution of various demands improves the ability to predict the detailed behavior of the demand and enables demand-shaping activities programs and events designed to stimulate sales and grow market share for individual products or groups of products. Demantra Demand Management: Better real time demand insight is only useful if you can translate it into a more accurate forecast. Demantra Demand Management improves forecast accuracy by using industry-standard and best-in-class proprietary forecasting models. Causal correlations can be leveraged to model influencing factors and capture behavior in your demand data. It is key that all constituents in the demand management process agree on the demand number and have visibility to the associated accuracy metrics. It also provides a robust workflow driven collaboration paradigm across all constituents in the demand management process. Each participant receives the information tailored to their needs to enable them to make key decisions quickly. The system keeps an audit trail of all changes, planner notes that capture key decisions and assumptions, and generates exceptions where required by the process. Demantra Predictive Trade Planning and Trade Promotion Optimization: Promotion planning and optimization helps companies understand the financial and operational impacts of promotions and marketing instruments. Oracle Value Chain Planning helps companies to interactively plan promotions and perform what-if analysis to understand the impact of varying promotional tactics; perform detailed analysis of their impacts and profitability; optimize the right promotion tactics for each product or product category along with detailed analysis of the promotion budget allocations; model the effect of price changes on demand and profits; simulate volume and profitability of future promotions and optimize promotional events. Demantra Real-Time Sales and Operations Planning: Sales and Operations Planning (S&OP) is often the first step to facilitate an enterprise-wide process that helps align the business objectives of Sales, Marketing, and Operations. Oracle Value Chain Planning supports a comprehensive S&OP process that enables monitoring of key S&OP metrics for demand, supply, product, and service. It drives demand-shaping decisions, enforces allocation and postponement strategies, and, when used effectively, provides scenarios to assess the risk in the supply chain and how to mitigate it. Strategic Network Optimization: Companies that deal with frequently changing supply networks, often as a result of mergers and acquisitions or as a result of global expansion, require network optimization tools to help them design the most agile value chain network. Inventory Optimization: When designing and optimizing value chain networks it is key to look at the risk and variability in that network. Oracle Inventory Optimization provides comprehensive 3 what-if scenario planning for planned and unplanned supply chain events, helping companies to assess how much insurance they need to buy to protect them from disruptions in their network. For example, the cost of having a contract for a secondary supplier of a critical component can be weighed against the loss of revenue when using a single source introduces potential risk. Postponement analyzes how demand, supply, manufacturing and lead time uncertainty impact service levels across the entire echelon and helps determine the most profitable channels, products, and customers while managing key commitments. The use of scenario planning and optimization helps companies determine the most optimal buffer stock needed to hedge against increased supply chain variability. Combined, risk management and postponement drive key strategic and tactical decisions in the value chain network and Oracle Inventory Optimization, combined with Oracle Strategic Network Optimization, provides a unique value proposition for this. Advanced Supply Chain Planning and Rapid Planning: Oracle Advanced Supply Chain Planning and Oracle Rapid Planning offer a comprehensive set of tools to plan the manufacturing, procurement, and movement of supplies across the value chain. To provide the best possible recommendations to planners based on the input data from the ERP source systems, it uses constraint modeling and scenario simulation. For most companies this is the core process that ties forecasting and execution together, and it is the process where most critical disruptions can have an immediate impact on top and bottom line performance. Companies can decide to operate a holistic global plan, or break the problem up into multiple independent or dependent plans - for example, component manufacturing plans feeding end assembly and distribution plans. Either way, the amounts of data processed and the number of decisions made is always large and planners continuously strive to provide answers in the shortest amount of time possible. Rapid Planning: No matter how well the above planning processes are executed, companies will always face sudden intra-day or intra planning cycle disruptions that need immediate resolution. In addition, with more pressures on financial quarterly performance, there is a need to evaluate options on how to improve business performance in the short term. This simulation requires similar complex constraints and large data sets, yet needs to complete in minutes to provide responsive actions that most positively impact the business. Oracle Rapid Planning offers a complete set of best-in-class tools for this problem. Collaborative Planning: Oracle Collaborative Planning also provides tools to facilitate collaboration with various trading partners (suppliers, contract manufacturers, customers). Collaboration with key trading partners translates into reduced planning cycle time as well as shared accountability, typically reducing cost in the value chain. Advanced Planning Command Center: Deploying the various planning tools is only as effective as they help key decision makers improve their supply chain metrics. Oracle Advanced Planning Command Center offers a 360 degree view of key metrics that directly operate on the output of the planning tools. Only Oracle provides the unique combination of rear-mirror view and forward prediction while examining different business scenarios to deal with supply chain problems and seamless interaction with the underlying planning tools in near real-time. 4 Global Order Promising and Production Scheduling: After the tactical planning cycle has released its recommendations to the execution system, the operational phase of planning starts. Customer orders are booked and sophisticated order promising capabilities help quickly provide answers on availability; manufacturing orders are executed and comprehensive scheduling capabilities help resolve problems with bottleneck shop floor resources or material shortages. Service Parts Planning: Many companies that operate reverse supply chains face challenges in determining the most optimal replenishment and redistribution against set budgets for spare parts. Oracle Service Parts Planning, combined with Oracle Demantra Demand Management and Oracle Inventory Optimization, offers a comprehensive solution for service parts planning, enabling customers to transform their service operations from cost to profit centers more effectively. Figure 1 Oracle Value Chain Planning Solution Additional reference materials: Oracle Value Chain Planning 5 Introduction to Oracle Engineered Systems Oracle Engineered Systems combine best-of-breed hardware and software components with gamechanging technical innovations. Designed, engineered, and tested to work best together, Oracle Engineered Systems power the cloud or streamline data center operations to make traditional deployments even more efficient. The components of Oracle Engineered Systems are preassembled for targeted functionality. They are then configured as a complete system and are optimized for extreme performance. By taking the guesswork out of these highly available, purpose-built solutions, Oracle delivers a solution that is integrated across every layer of the technology stack a simplicity that translates into less risk and lower costs for your business. Only Oracle can innovate and optimize at every layer of the stack to simplify data center operations, drive down costs, and accelerate business innovation. Oracle Exalogic Oracle Exalogic is an Engineered System on which enterprises deploy Oracle business applications, Oracle Fusion Middleware or third-party software products. Exalogic comes pre-built with compute nodes, memory, flash storage and centralized storage, all connected using InfiniBand in a high redundancy architecture delivering five-nines availability, with fault tolerance and zero-down-time maintenance. Exalogic dramatically improves the performance of Oracle Applications, Fusion Middleware and third party applications without requiring code changes and reduces costs across the application lifecycle, from initial set-up to on-going maintenance, as compared to conventional hardware platforms. Oracle has made unique optimizations and enhancements in Exalogic firmware, Exalogic software, and in Oracle Fusion Middleware and Oracle Applications. These include on-chip network virtualization based on near zero latency Infiniband fabric, high-performance Remote Direct Memory Access, workload management in Oracle Weblogic server and optimizations in Oracle Coherence and Oracle Traffic Director. Exalogic includes support for a highly optimized version of the Oracle VM, which significantly outperforms comparable virtualization solutions and is an ideal consolidation platform for Oracle Applications. There are templates available to simplify install, deployment and configuration of Applications on Exalogic. Oracle WebLogic Optimizations on Exalogic Oracle Value Chain Planning using WebLogic benefits from a number of optimizations for thread efficiency, faster interprocess communication and higher message throughput. An optimized work scheduler for Exalogic balances the number of threads per core available on Exalogic systems, providing better application processing efficiency. WebLogic Server has changed to use shared byte buffers instead of array copies when passing data, improving application interprocess communication performance and a 66% reduction in number of objects created. This reduces heap usage and results in fewer expensive garbage collections for Applications. WebLogic also optimizes socket calls to reduce lock contention on Exalogic, allowing fewer threads to process a larger number of message requests. 6 Oracle jrockit Optimizations on Exalogic On Exalogic, the JVM makes more efficient network I/O calls using collections of chunked data resulting in higher throughput for Java applications. The JVM optimizes object management with fewer copies resulting in reduced garbage collection and less heap size resulting in better Java application performance. Oracle Exalogic Exabus Applications running on Exalogic utilize Exabus, the underlying Infiniband fabric, which provides low latency and high throughput eliminating I/O bottlenecks in every application layer. Applications components are typically deployed in more than one server and Exabus provides low latency for I/O across nodes on same Exalogic rack. Access to ZFS storage device over Exabus greatly reduces latency for log file writes and other file access operations. For applications running on Exalogic and accessing database tier on Exadata, Exabus delivers faster I/O, reduces CPU usage on both the mid-tier and DBtier and provides higher connection pooling efficiency. Oracle VM for Exalogic Exalogic Oracle VM can be used to sub-divide a physical compute node into multiple virtual machines to increase application deployment efficiency while maintaining application performance. Oracle VM has been engineered for tight integration with Exalogic Exabus I/O backplane using a technique called Single Root I/O Virtualization (SR-IOV) ensuring Oracle VM significantly outperforms comparable hypervisors from other leading vendors. The benefit of this approach is unmatched application performance. In an Exalogic configuration, the impact of virtualization on application throughput and latency is negligible. Oracle Value Chain Planning and Oracle Value Chain Planning Demantra are available as Oracle VMs today. Oracle Exadata Database Machine Oracle Exadata Database Machine is Oracle s database platform delivering extreme performance for database applications including Online Transaction Processing, Data Warehousing, Reporting, Batch Processing, or Consolidation of mixed database workloads. Oracle Exadata is a pre-configured, pretuned, and pre-tested integrated system of servers, networking and storage all optimized around the Oracle Database. Because Oracle Exadata is an integrated system, it offers superior price-performance, availability and supportability. Oracle Exadata frees users from the need to build, test and maintain systems and allows them to focus on higher value business problems. Oracle Exadata uses a scale out architecture for database servers and storage. This architecture maintains an optimal storage hierarchy from memory to flash to disk. Smart Scan query offload has been added to the storage cells to offload database processing. Exadata implements Smart Flash Cache as part of the storage hierarchy. Exadata software determines how and when to use the Flash storage for reads and writes as well as how to best incorporate Flash into the database as part of a coordinated data caching strategy. A high-bandwidth low-latency InfiniBand network running specialized database 7 networking protocols connects all the components inside an Oracle Exadata Database Machine. In addition to a high performance architecture and design, Oracle Exadata offers the industry s best data compression to provide a dramatic reduction in storage needs. Figure 2 Engineered Systems: Exalogic, Exadata; Applications, and Database. The fastest, easiest path to unbeatable application performance SPARC SuperCluster Oracle s SPARC SuperCluster is the world s most efficient multi-purpose engineered system, delivering extreme efficiency, cost savings, and performance for consolidating mission critical applications and rapidly deploying cloud services. Oracle s SPARC SuperCluster represents a complete, pre-engineered, and pre-tested high-performance enterprise infrastructure solution that is faster and easier to deploy than a collection of individual database and application servers. The system combines innovative Oracle technology the computing power of Oracle s SPARC servers, the performance and scalability of Oracle Solaris, the Sun ZFS Storage Appliance, the optimized database performance of Oracle Database accelerated by Oracle Exadata Storage Servers, and a high-bandwidth, low-latency InfiniBand network fabric into a scalable, engineered system that is optimized and tuned for consolidating mission-critical enterprise applications Oracle s SPARC SuperCluster provides both the capacity for growth, as well as the fine-grained server virtualization needed to isolate individual application components. With multiple layers of enterprise application infrastructure consolidated onto a high-performance, highly available SPARC SuperCluster system, deployment speed, application performance, and availability can all be optimized. Designed as a pre-configured, pre-tested, and ready-to-deploy SPARC SuperCluster engineered system, the solution provides a complete and optimized infrastructure solution for applications, built around robust compute, networking, storage, virtualization, and management resources. The result is a system that is orders of magnitude easier to manage, and up to five times faster to deploy than alternatives, all while 8 occupying considerably less real estate requiring less power. Furthermore, t
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