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A project report on orgniziation study of oracle

  1. 1. Organisational StudyIT INDUSTRY PROFILEIntroductionCompanies in and outside the information technology (IT) industry employ informationtechnology workers. While one might think of the typical IT worker as employed by a majorsoftware company or systems developer, the reality is that nine out of ten IT workers are found inbanks, insurance companies, manufacturing plants or other non-IT businesses. A new survey bythe Information Technology Association of America (ITAA) shows that not only are IT workersfound mostly outside the IT industry, but that the outlook and prospects for the two groups islikely to be far different. In previous years, characterized by double digit growth and anxiousinvestors betting on the next new thing, careers inside the IT industry appeared to be the way togo—at least for those on the professional fast track. Much has changed since 2001, even as theeconomy slowly recovers and the overall size of the IT workforce approaches its historic highpoint of 10.4 million. The employment footing outside the IT industry seems surer, less turbulent.Non-IT companies are more likely to hire according to plan, far less likely to move jobs overseas,more apt to increase—not cut—compensation.Whether non-IT companies offer IT workers long-term career advantages or just a temporary“port in the storm” remains to be seen. IT companies are hard pressed by customers to field costeffective solutions. The pressure on IT companies to cut costs is clearly reflected in this survey.This survey is a continuation of the ITAA series of reports on the IT workforce. Since 1997,ITAA has tracked employer demand for IT workers. In the run up to the year 2000, IT talent wasscarce and demand exceeded supply. Because of the talent crunch, ITAA focused on the skillsmost demanded by employers and the education and training alternatives for gaining those skills.With job market conditions changing, ITAA’s survey has evolved to explore how trends likeoffshore development may be changing the employment landscape.This survey reports findings in nine areas:• Total IT workforce size• Future demand for IT workers• Demand in specific job categories• Hiring and layoff activity• Success at hiring to planBabasabpatilfreepptmba.com 1
  2. 2. Organisational Study• Skills attainment• Recruitment• Offshore development• CompensationMAJOR PLAYERSIBM strive to lead in the invention, development and manufacture of the industrys mostadvanced information technologies, including computer systems, software, storage systems andmicroelectronics.http://www.ibm.com/ibm/us/Computer Associates International, Inc. (NYSE: CA), one of the worlds largest managementsoftware companies, delivers software and services across operations, security, storage, life cycleand service management to optimize the performance, reliability and efficiency of enterprise ITenvironments. Indeed, our solutions touch many areas of everyday life, from ATM transactions toairport security to online sales, customer service and medical information. http://www.ca.com/As the worlds third-largest independent software provider, SAP delivers business solutions tomore than 28,200 customers in more than 120 countries around the world. We owe our success tothe experience and expertise of our employees and the quality and effectiveness of our solutions.Its no wonder the best-run businesses run SAP.http://www.sap.com/company/index.epxBabasabpatilfreepptmba.com 2
  3. 3. Organisational Study http://www.microsoft.com/traincert/. Founded in 1975, Microsoft is the worldwide leading software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device. The Oracle Corporation is the worlds largest enterprise software company. For more than 25 years, Oracle has worked on ways to help its customers manage critical information. The company has built the only unbreakable database, with 15 international security evaluations. Oracle was the first software company to move its business application products to the Internet (www.oracle.com).Siebel offers 23 industry-specific applications and more than 100 industry-specific solution sets.These pre-built solutions contain best practices and business processes to address the uniquebusiness needs and challenges of your industry.Siebel industry solutions minimize customization, enable rapid deployment, and significantlyreduce total cost of ownership. http://www.siebel.com/Babasabpatilfreepptmba.com 3
  4. 4. Organisational StudyCisco Systems is the worldwide leader in networking for the Internet. Cisco is committedto working with educational institutions around the globe to ensure that todays students masterthe necessary skills for success in the Internet economy. http://www.cisco.com/edu.Dice Inc. (Nasdaq: DICE, http://about.dice.com) is the leading provider of online recruitingservices for technology professionals. Dice Inc. provides services to hire, train andretain technology professionals through dice.com, the leading online technology-focused jobboard.The ITT Technical Institutes are leading providers of technology-oriented postsecondarydegree programs, serving approximately 31,000 students. The 70 campuses located acrossthe U.S. offer the information technology disciplines of Computer Network Systems,Multimedia, Software Applications and Programming and Web Development, TechnicalProject Management for Electronic Commerce is offered online (http://www.itt-tech.edu).SRA is a leading provider of information technology services and solutions - includingstrategic consulting; systems design, development, and integration; and outsourcing andoperations management - to clients in national security, health care and public health, and civilgovernment markets. (www.sra.com).Babasabpatilfreepptmba.com 4
  5. 5. Organisational StudyTRENDSStudy FindingsThe total IT workforce peaked in size in 2000. The economy shed 500,000 IT jobs in 2001,caused largely by the stock market reverses and consequent investor flight, the elimination ofmany dot.com and telecom firms (and the high tech businesses supporting those firms), large-scale capital expense reductions, the Year 2000 “overhang” of new systems and softwareimplemented to replace older, date vulnerable assets and the recession.The IT workforce appears to have bottomed out at the start of 2002, with small but steadyquarter to quarter gains since then (See Figure 1). Figure 1 Workforce 10.4 10.3 10.2 10.1 10 9.9 9.8 9.7 Baseline 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 The U.S. economy begins 2003 with 10.3 million IT workers, up 4.2 percent from the start of 2002 (but less than one percent from last quarter). ITAA calculates workforce size by netting out the total number of IT workers hired and dismissed in the survey period from its baseline year measurement. Comparing quarter to quarter, the economy added 86,406 IT workers in the first three months of the year. While that is good news, the net gain in jobs is actually smaller than year-end 2002, where employers hired 97,118 more people than they released. The picture presented by these numbers is a marketplace slowly reapportioning its human resources (Figure 2). Gains have been made not so much in response to companies adding new workers but to a slow down in the rate at which workers have been let go.Babasabpatilfreepptmba.com 5
  6. 6. Organisational StudyINDIAN IT INDUSTRY PROFILEThe Indian software Industry has grown from a mere US $ 150 million in 1991-92 to astaggering US $ %.7 billion (including over $ 4 billion worth of software export) in1999-2000. No other Indian industry has performed so well against the globalcompetition.The annual growth rate of India’s software export has been consistently over 50% since1991. As per the projections made by the National Association of Software and serviceCompanies (NASSCOM) for 2000-01 (April 1, 2000 – March 31, 2001), India’s softwareexport would be around $ 6.3 billion, in addition to $ 2.5 billion in domestic sales.Today, India exports software and services to nearly 95 countries around the world. Theshare of North America (US & Canada) in India’s software export is about 61%. In 1999-2000, more than a third of Fortune 500 companies outsource their software requirementsto India.NASSCOM’s survey during 1999-2000 indicates a reversal in the mode of servicesoffered by India. In 1991-92, offshore services accounted 5% and on-site service 95% ofthe total exports. However, during 1999-2000 offshore services contributed over 40% ofthe total exports.INDUSTRY INFRACTUREANNUAL TURNOVER NO. OF COMPANIESAbove Rs. 1000 Cr. 5Rs 500 – Rs 1000 Cr. 5Rs 250 – Rs 500 Cr. 15Rs 100 – Rs 250 Cr. 27Rs 50 – Rs 100 Cr. 55Rs 10 – Rs 50 Cr. 220Below Rs 10 Cr. 2483The NASSCOM – McKinsey report on India’s IT IndustriesBabasabpatilfreepptmba.com 6
  7. 7. Organisational StudyAccording to NASSCOM-Mckinsey report, annual revenue projections for India’s ITIndustries in 2008 are US $ 87 billion and market openings are emerging across fourbroad sectors, IT Services, Software Products, IT Enables Services and e-Businesses thuscreating a number of opportunities for Indian Companies. In addition to the exportmarket, all of these segments have domestic market components as wellOther key findings of this report are: • Software & Services will contribute over 7.5% of overall GDP growth of India. • IT export will account for 35% of the total exports from India. • Potentials for 2.2 million jobs in IT by 2008 • IT Industry will attract FDI of US $ 4.5 billion. • Market capitalization of IT shares will be around US $ 225 billion.PROJECTED REVENUES – 2008($ US Billion) India India Sub-Total Domestic Total 1998 Based Centric (International )ITServices 23 7* 30 8.5 38.5 2.1SoftwareProducts 8 2 10 9.5** 19.5 0.6IT-enabledServices 15 2 17 2 19 0.4e-Business 4 1 5 5 10 0.2Total 50 12 62 25 87 3.3Exports of $50 billion in 2008* Legacy/Client server, ERP and Package work and Internet all have differentproportions of work outside India where revenue are not export revenues.Babasabpatilfreepptmba.com 7
  8. 8. Organisational Study** Resale of imported products included.Promotion of IT – Government Incentives:With the formation of new ministry of IT, Govt. of India (GOI) has taken a major steptowards promoting the domestic industry and achieving the full potential of the Indian ITentrepreneurs. Constraints have been comprehensively identified and steps taken toovercome them and also to provide incentives.Thus for example, venture capital has been the main source of finance for the softwareindustries around the globe. However, the majority of the software units in India are inthe small and medium enterprise sector and there is a critical shortage of venture capitalkind of support. In order to alleviate this situation and to promote the Indian IT industry,the GOI has set up a National Task Force on IT and Software Development to examinethe feasibility of strengthening the industry. The Task Force has already submitted itrecommendations, which are under active consideration. Norms for the operations ofventure capital funds have also been liberalized to boost the industry. The GOI is alsoactively providing fiscal incentives and liberalizing norms for FDI and raising capitalabroad.Recently, an It committee was set up by the Ministry of Information Technology, GOI,comprising of non-residential Indians (NRI) professionals from the United States to seekexpertise and advice and also to step up U.S. investments in India’s IT sector. Thecommittee is chaired by Minister of Information Technology,GOI, and the membersinclude Secretary, Ministry of Information Technology and a large number of importantIndian American IT entrepreneurs.The group will:Babasabpatilfreepptmba.com 8
  9. 9. Organisational Study • Monitor global IT development and refine Indian IT policy to meet global requirements. Specifically, this will help angel investors, venture creators and incubation • Promote the growth of human resource development in the IT sector with the aim of creating quality-based education. • Promote R&D in the sector by identifying thrust areas and drawing up a blueprint for action.India’s most prized resource in today’s knowledge economy is its readily availabletechnical workforce. India has the second largest English-speaking scientificprofessionals in the world, second only to U.S. It is estimated that India has over 4million technical workers, over 1832 educational institutions and polytechnics, whichtrain more than 67,785 computer software professionals every year. Government of Indiais stepping up the number and quality of training facilities in the country to capitalize onthis extraordinary human resource. It is the knowledge industry that will help take theIndian economy to a sustained higher rate of growth and the policy makers are full awareof this.Babasabpatilfreepptmba.com 9
  10. 10. Organisational StudyHISTORY OF ORACLE CORPORATIONBabasabpatilfreepptmba.com 10
  11. 11. Organisational StudyAlmost thirty years ago, Larry Ellison saw an opportunity other companies missed whenhe came across a description of a working prototype for a relational database anddiscovered that no company had committed to commercializing the technology. Ellisonand his co-founders, Bob Miner and Ed Oates, realized there was tremendous businesspotential in the relational database model--but they may not have realized that they wouldchange the face of business computing forever.Today Oracle (NASDAQ: ORCL) is still at the head of the pack. Oracle technology canbe found in nearly every industry around the world and in the offices of 98 of the Fortune100 companies. Oracle is the first software company to develop and deploy 100 percentinternet-enabled enterprise software across its entire product line: database, businessapplications, and application development and decision support tools. Oracle is theworlds leading supplier of software for information management, and the worlds secondlargest independent software company.Oracle has always been an innovative company. It was one of the first companies to makeits business applications available through the internet--today, that idea is pervasive. NowOracle is committed to making sure that all of its software is designed to work together--the suite approach--and other companies, analysts, and the press are beginning toacknowledge that Oracle is right. Whats in store for tomorrow? We will continue toinnovate and to lead the industry--while always making sure that were focused onsolving the problems of the customers who rely on our software.Time ChainBabasabpatilfreepptmba.com 11
  12. 12. Organisational StudyVISION STATEMENT:Principles of the Information-Driven EnterpriseBabasabpatilfreepptmba.com 12
  13. 13. Organisational StudyAdhering to three principles has saved Oracle more than US$1 billion in operating costs—so far. With these principles, which are incorporated into the design of our software,we have coordinated and streamlined all our business processes worldwideSimplify: Speed information delivery with integrated systems and a single databaseStandardize: Reduce cost and maintenance cycles with open, easily availablecomponents.Automate: Improve operational efficiency with technology and best practicesAt Oracle, we believe that our customers get more from their information by usingOracles software and services and applying these principles. Many have alreadyimproved their ability to use information and IT as strategic assets and are now able toshare data and processes, measure results for continuous improvement, alignstakeholders, and communicate a single truth to all their constituents.SUMMARY OF ORACLE BUSINESS VALUESCertain core values are essential to Oracle’s business:INTEGRITY: Oracle employees demonstrate honesty and sound ethical behavior in allbusiness transactions and personal integrity in all dealings with others.MUTUAL RESPECT: Oracle employees consistently treat individuals with respect anddignity.TEAMWORK: Oracle employees work together as a team for the collective interestsOf Oracle.COMMUNICATION: Oracle employees share information widely and effectively witheach other, except when confidentiality is required.Babasabpatilfreepptmba.com 13
  14. 14. Organisational StudyINNOVATION: Oracle employees seek innovative and creative approaches to problemsolving.CUSTOMER SATISFACTION: Oracle employees consistently treat customersatisfaction as a top priority.QUALITY: Oracle employees make excellence and quality a part of day-to-day workprocesses and seek continuous improvement in all that they do.FAIRNESS: Oracle employees are committed to dealing fairly with customers,suppliers,and one another.COMPLIANCE: Oracle employees comply with all laws and regulations that governOracle’s business.BUSINESS CONDUCT: Oracle employees observe the standards that have beenestablished by Oracle and act ethically in their approach to business decisions.Oracle in the Community Mission StatementOracle as a corporation, and Oracle employees as individuals, works actively to improvethe quality of life for people and address community needs. By preferring to solveproblems, rather than managing their consequences, we take action to effect positivechange in our communities.Babasabpatilfreepptmba.com 14
  15. 15. Organisational StudyAbout Oracle DiversityOracles diversity vision starts with cultivating an environment that is inclusive of allemployees. Individual differences present us with opportunities to examine businessissues from varying perspectives. Incorporating these different viewpoints gives usgreater agility and creativity.To effectively compete on a global scale, we believe it will take the strength of a unifiedworkforce fully engaged in meaningful work. Valuing diversity -- by using effectivecommunication skills and demonstrating mutual respect -- is simply good business. AtOracle, we can make our diversity vision the way we do business every day, world-wide.Oracle believes in a workforce comprised of qualified individuals with ample supportopportunities. To this end, we promote our Equal Employment Opportunity and diversityrecruitment programs, and provide continuous training and mentoring to our employees.Corporate Governance at Oracle CorporationThe Board of Oracle Corporation has throughout its history developed corporategovernance practices to fulfill its responsibility to Oracle Corporation stockholders.Although recent events involving corporate accounting fraud has brought much attentionto corporate governance principles, having good practices in place is not novel at Oracle.The composition and activities of the Companys Board of Directors, the approach toBabasabpatilfreepptmba.com 15
  16. 16. Organisational Studypublic disclosure and the availability of ethics and business conduct resources foremployees exemplifies the Companys commitment to good corporate governancepractices, including compliance with new standards.As part of these practices, the Board has adopted the following Corporate GovernanceGuidelines to help ensure that it has the necessary authority and procedures in place tooversee the work of management and to exercise independence in evaluating OracleCorporations business operations. These guidelines allow the Board to align the interestsof directors and management with those of Oracle Corporations stockholders. Theseguidelines are subject to future refinement or changes as the Board may find necessary oradvisable for Oracle Corporation in order to achieve the above objectives.Oracle continually applies good corporate governance principles to multiple areas of theCompany. In addition to these guidelines Oracle has had a Code of Ethics and BusinessConduct since 1996, which was recently modified in 2001. The Board has also adoptedcharters for each of the following standing Board Committees: Finance and AuditCommittee, Independent Committee, Committee on Compensation and ManagementDevelopment, and Nomination and Governance Committee.Oracle ExecutivesLawrence J. Ellison has been Oracles Chief Executive Officer and a director since he co-foundedthe Company in June 1977. Mr. Ellison served as Chairman of the Board from May 1990 untilOctober 1992.Babasabpatilfreepptmba.com 16
  17. 17. Organisational StudySafra A.Catz has been a member of Oracles Board of Directors since October 2001, serves onOracles Executive Management Committee, and is responsible for global operations.Gregory B. Mafei has been a member of Oracles Board of Directors since June 1995 serves onOracles Executive Management Committee and is also an Executive.Charles E. Phillips, Jr. has been a member of Oracles Board of Directors since January 2004,serves on Oracles Executive Management Committee, and is responsible for field.Oracle Board of Directors • Dr. Michael J. Boskin: Professor of Economics at Stanford University • Jeffrey Berg: Chairman and Chief Executive Officer of International Creative Management. • Joseph Grundfest: Professor of Law and Business at Stanford Law School • Donald L. Lucas: Venture capitalist since 1960 • Jack F. Kemp: Co-director of Empower America and former member of the US Congress. • Hector Garcia-Molina: Professor of computer science engineering, Stanford University • H. Raymond Bingham: Executive Chairman of Cadence Design Systems, Inc.Babasabpatilfreepptmba.com 17
  18. 18. Organisational StudyThe Oracle in India storyThe BeginningMore than fifteen years ago, before India became recognized as the dynamic force ininformation technology that is known to be today, Oracle was one of the firstmultinational software companies to set up operations in India. Beginning with adistributorship through Tata Consultancy Services in 1987, the company establisheddirect operations with a liaison office in 1991, and in 1993 formed Oracle India PrivateLtd., a wholly-owned subsidiary of Oracle Corp., focused on the sales and marketing ofOracle software in India. In recognition of the significant pool of highly educatedsoftware development engineers based in India, Oracle opened its India DevelopmentCenter (IDC) in Bangalore in 1994. This early commitment to the country markedBabasabpatilfreepptmba.com 18
  19. 19. Organisational StudyOracles vision for India as both a domestic market and a center for research anddevelopment. The company became the first multinational company to establish coresoftware development operations in India to support its global product developmentstrategy and to address the needs of the local market. Initially, the India DevelopmentCenter took on development work on a project basis for different development divisionsas determined by the companys headquarters in Redwood Shores, California. As wordspread throughout the company of the India teams record delivery time of developmentprojects that met the highest standards of quality, the IDC was tasked with more strategicprojects and increasingly demanding requirements. Today Oracle has its IndiaDevelopment Centre located at Bangalore and Hyderabad and sales and marketing officesacross six Indian cities.A Turning PointIn 1996, the India development team was challenged with taking on a strategic researchand development project. Ultimately the teams success on the project would propel theIDC into the development spotlight at Oracle. The India team was given three months todevelop the first version of what would become the basis of Oracles Internet computingtechnology, driving the shift to simplified, low-cost computing machines which couldaccess information stored on larger, professionally managed servers.With no additional resources, the IDC, having been asked only to show version one of thetechnologies, delivered instead a second-generation version three months to the day fromthe start of the project. Concurrently, the team also met all deadlines and qualitystandards for the other 16 projects with which the IDC was tasked with at that time. Theworld-class development abilities of the India development team were impressed uponthe highest levels of the company, garnering praise and recognition from Oracle founderand CEO, Larry Ellison. This became a turning point for the India organization,transforming the India Development Center into a growth engine, integral to the futureand vision of the worlds largest enterprise software company. From that point forwardthe India Development Center was integrated into Oracles global software developmentBabasabpatilfreepptmba.com 19
  20. 20. Organisational Studyorganization, working on the latest technology for Oracle customers around the world. Atthe same time, Oracles increasing success in the country established the company as thedominant provider of database and enterprise software to the government and corporatesectors in India.Oracle India Factsheet 1. Oracle has been operating in India for more than 15 years. 2. Oracle is one of the largest multinational employers in India with over 6,700 employees. 3. India is Oracles fifth-largest market in Asia in terms of revenue. 4. India accounts for Oracles largest research and development investment outside the United States. 5. India also hosts several of Oracles global divisions and services including global consulting, global support, Oracle On-demand, Internet sales and financial accounting and analysis. 6. The entire Oracle product family - Oracle Database 10g, Oracle Application Server 10g, Oracle Collaboration Suite and Oracle E-Business Suite are available in India. Oracle Database 10g supports transactions and interfaces in 13 major Indian languages including Assamese, Bengali, Gujarati, Hindi, Kannada, Malayalam, Marathi, Oriya, Punjabi, Telugu and Tamil. 7. Oracle is committed to the Indian market through its extensive network of more than 200 channel and alliance partners in India under the Oracle PartnerNetwork, including iflex Ltd., Infosys, Satyam, Sonata, Tata Consultancy Services and Wipro. 8. Oracle currently has more than 6000 technology customers and 400 applications customers 9. India is home to more than 220,000 members of Oracles online developer community, Oracle Technology Network.Oracle India Milestones1987 Oracle Corp. begins operations in India through a distributorship with a localpartner.1991 Oracle establishes a liaison office to better serve customers.1993 Oracle forms a wholly owned subsidiary focused on the sales and marketing ofOracle software in India.1994 Oracle opens the India Development Center (IDC) in Bangalore, becoming one ofthe first multinational software companies to set up a development center in India.Babasabpatilfreepptmba.com 20
  21. 21. Organisational Study1996 IDC successfully delivers the first version of Oracles Internet computingtechnology.1998 Oracle India establishes a second development center in Hyderabad dedicated todeveloping enterprise business applications2002 Business Today- Hewitt survey recognized Oracle as one of the best employers inIndia.2003 Oracle and HP launch an "E-Governance Centre of Excellence" in Gurgaon tosupport E-Governance initiatives by central, state and local government bodies in India.2003 Oracle India launches Oracle Collaboration Suite, Oracle E-Business Suite SpecialEdition and Oracle Database Standard Edition One.2004 Oracle India grows to more than 6,700 employees. Recognized among the top 25best employers in the Hewitt - CNBC Best Employers AwardORNAGIZATION STRUCTUREBabasabpatilfreepptmba.com 21
  22. 22. Organisational Study MANAGING DIRECTOR HUMAN PUBLIC E BUSINESS CONSULTING RESOURCE SERVICE Sr Director - Director - Consulting Director – HR Director – Public eBusiness Srvice EDUCATION FINANCE FSI CC & R Director - Education Admin. General Manager- Director – CC & R Sales SUPPORT SERVICE MARKETING Sr Director - OSS Director - Marketing TELCO ORACLE DIRECT General Manager- Sales SALES INTERACTION LEGAL CENTRE Legal Councel & Co. Genaral Mannager Secretary MANUFACTURING General Manager-Sales PRE SALES SALES CONSULTING Developer Sales Consulting GENERAL BUSINESS Manager, Oracle Direct General Manager-Sales ALLIANCE & CHANNELS Director- Allc. & ChannelsBabasabpatilfreepptmba.com 22
  23. 23. Organisational StudyOracle India Organization Culture: Oracle promotes a culture that can be best described by the following behaviour • Achievement focused • Humanistic and valueing diversity • Collaborative • Innovative and flexible • Taking responsibility • Accountability (doing what customer say customer’ll do) • Working with on going change and ambiguity • Committed to ongoing self learning • Underpinning and embedded within these cultural trait are our core value of Trust, Respect, Integrity, Innovation, Customer Centricity and Value Creating Organization.Babasabpatilfreepptmba.com 23
  24. 24. Organisational StudyOracle people management processes are designed to support and reinforce our valuesand culture. Oracle’s Selection, Induction, Performance & Recognition processesincorporates and reinforces its value and culture. Its professional and managementdevelopment programmes and tools support the ability to individualy lead and championour values and culture. At an organizational level Oracle Corporation has a number ofprograms in place to develop its culture and measure the extent to which OracleCorporation are “living our values”.Oracle India Values and Human ResourceValues at Oracle CorporationThe reputation of an organization can be its greatest asset or its greater liability. OracleCorporation’s reputation is largely determined by how it does business. How OracleCorporation does its buseiness, is a reflection of values inportant to them. Having sharedcorporates values that act as a filter, or provide a framework to guide employee in makingdecisions. Understanding Oracle Corporation’s corporates values will assist bothpersonally and professionally align employees with the corporate direction. Everyindividual has his or her own personal values, without having shared values (thecorporate filter) Oracle Corporation would be missing that overall framework to guideour responses, behaviour and decisions.Let’s look at our individual values and explore each further: • RespectBabasabpatilfreepptmba.com 24
  25. 25. Organisational Study • Trust • Customer Centricity • Integrity • Innovation • Value Creating Organization • Training programs at Oracle Corporation.Human Resource development is a part of the company’s overall business strategy andlinks employee’s development with the company’s continous improvement efforts.Training gives employees the skills to continue their learning and transfer of knowledgeor skills from one work situation to another.Objectives of training activities: • To delelop knowledge and skills of employees • To help employees perform productively and effectively in their current job assignment • To prepare employees for challenging work involving higher responsibilityAll trainings will be based on need identified either during the annual performanceassessment or recommendation by the Functional Head / Manager. Training could be fortechnical, professional or personal development of employees. Employees may also benominated for employees and management development programs run by Corporate HRat various locations in the world based on identified needs.Oracle Corporation offers the following training programs:Internal TrainingThe company organises internal programs to address the needs of the employees.Includes formal training and development programs, vendor training or any other trainingfor the purpose of acquiring skills and knowledge. Various In-House training will beBabasabpatilfreepptmba.com 25
  26. 26. Organisational Studyavailable to suit the training needs of various lines of business. Information regarding in-house course is usually dessiminated through the Head of Deapartment and/or HumanResource. Employes who would like to attend the in-houseproduct training need to obtainapproval from their managers and the Head of the Department.Overseas TrainingEmployees may be nominated to attend training overseas with dues approval.Public Scheduled CoursesEmployees could attend the local short courses for some specific specialized skills.Mandatory Training Programs • Data Privacy Awareness Training. • Code of Ethics & business Conduct Course • Oracle Corporation Acceptable Usage PolicyEEO/AAOracles Equal Employment Opportunity: We believe in treating each employee andapplicant for employment fairly and with dignity. We base our employment decisions onmerit, experience, and potential, without regard to race, color, national origin, sex,marital status, age, religion, disability, veteran status, or sexual orientation. Our EqualOpportunity policy is founded on the philosophy that our employees and applicants foremployment must be treated equitably. We do not discriminate based on personalpreference or physical characteristics, and our experience confirms that supportingpolicies and practices with a strong commitment to equal employment opportunity is agood business practice.Recommended TrainingOracle offers a suite of training products to enhance the personal development of allemployees within a diverse work place. Tailored to meet the needs of our distributed,global organization, this program is presented through various media, includingBabasabpatilfreepptmba.com 26
  27. 27. Organisational Studyfacilitated workshops as well as multimedia self-study courses. Because we viewdiversity as a business reality, diversity concepts and values are integrated into allemployee and management development training.MentoringOracle actively supports the practice of mentorship. We see mentoring as a business toolto grow and transfer skills and knowledge among employees. Mentoring relationshipsand programs range from formal and structured to informal information sharing andnetworking.RecruitingOracle has embarked on an aggressive recruitment strategy and conducts an average ofmore than 50 recruitment fairs per year. With the excellent pool of talented IT skills inIndia, Oracle prospective employees undergo a competitive evaluation process. Thecompany extends employment offers only to those candidates that meet rigorous qualitystandards and have excellent qualifications, skills, aptitude and passion. Oracle receivedapplications from more than 200,000 candidates over an average 18-month period.Seeking the best the industry has to offer, Oracle hires less than one percent of theapplicants. Ensuring a challenging and rewarding environment, Oracle India offers anunparalleled opportunity to define the next wave of technology and business innovation.New recruits are inducted into Oracle India with comprehensive technical and soft skillstraining, including team building and managerial effectiveness. Committed to employeedevelopment, Oracle India makes every effort to make employees successful through arange of innovative programs including professional development, internal focus groups,work-life balance initiatives, and employee focused health programs. Through theseinitiatives and a continuing focus on the latest technology and learning, attrition rates areless than half the industry average.Babasabpatilfreepptmba.com 27
  28. 28. Organisational StudyOracle Diversity identifies job fairs, recruiting events, community and professionalorganizations, which target women, minorities, people with disabilities and other under-represented groups to recruit qualified applicants nation-wide.Employment RelationshipOracle makes no express or implied commitment that your employment will have aminimum or fixed term, that Oracle may take adverse employment action only for cause,or that your employment is terminable only for cause. Either you or Oracle may terminatethe employment relationship at any time for any reason. Additionally, Oracle may takeany other employment action at any time for any reason. No one at Oracle may make,unless specifically authorized in writing by the Board of Directors, any promise, expressor implied, that employment is for any fixed term or that cause is required for thetermination of or change in the employment relationship.Steps to hiring a candidate:Regular Employee • Post your open position internally on Oracle iRecruitment. The position must be posted internally for 14 days before an offer can be generated. • To hire a candidate from an external recruiting firm you must submit a requisition to pay for the placement fees. • Interview consistently and fairly by asking similar questions of each applicant • Candidates should fill out the Offer Letter Request, via the Web Offer Letter Generator under Candidate Offers in Self Service Applications. • A Background check will be initiated at this time. Background checks are required for all new and rehired employees, unless they have a completed favorable background check with Oracle within the previous 12 months or have a valid Government Issued Security Clearance issued within the previous two years.Babasabpatilfreepptmba.com 28
  29. 29. Organisational Study • HR will generate an offer letter once HR Offers receives all of the following: completely approved offer request, valid jobpost number (in offer request), and complete applicant tracking paperwork • Once the offer letter is sent to the candidate, you will receive an ‘Offer Sent’ notification via email. • If your candidate accepts, go to your Notifications in Self Service Applications and select the "Accept" decision button to complete the workflow. The new hires can start employment with Oracle. Hiring managers should respond to the "New Hire Start Date" email sent by the HRSSC, Please respond with his/her official Oracle start date, so that we may complete the hiring process. • If your candidate declines, go to your Notifications in Self Service Applications and select the ‘decline’ decision button to complete the workflow.Oracle Temporary • Submit Applicant Tracking paperwork: an Applicant Tracking Form and resume(s) to your HR Representative. • Obtain appropriate approvals through the Workflow. • Once the final approvals reach HROFFERS, a Temporary Hire Packet will be sent to the hiring manager for their temporary employee. The hiring manager is responsible for making sure the packet is filled out and returned to Oracle HR • If your candidate accepts, HR Operations will enter your Oracle Temporary into the database, assign an employee id number, and generate an Oracle Alert.Internal Transfer • Minimum Time In Position Guidelines Role Minimum Time in Position Individual Contributor & 12 months Management India 24 months* • *India has a 24-month requirement until further notice.Babasabpatilfreepptmba.com 29
  30. 30. Organisational Study • It is the hiring managers responsibility to discuss the following areas with the releasing manager before completing the "Transfer/Internal Job Offer" form in Oracle Self Service HR: o Employees performance o Effective Date of Transfer o Transfer Process Details Transferring employees may not begin work in their new positions until the transfers have been fully approved. The manager is to release the employee within thirty days from the initiation of the "Transfer/Internal Job Offer" form.International Transfers • An international transfer is a "permanent" transfer to an Oracle entity outside of the employees’ home country. Please log into Self Service Applications, click on Candidate Offers, and complete the template. Before an International Transfer is complete all required approvals must be obtained.BUSINESS CONDUCTS • General GuidelinesOracle sets moral standards and upholds ethical business practices. • Ethical StandardsAt Oracle Corporation one must understand and conform to law, to custom, if within thelaw, and to human values. Oracles values of integrity, mutual respect, teamwork,communication, and innovation are the overriding principles that guide us in our businessBabasabpatilfreepptmba.com 30
  31. 31. Organisational Studyconduct. Because one’s behavior on the job and in conduct of Oracle business is a directreflection on the company, one should avoid or correct any situation in which youractions might adversely affect, publicly embarrass, or discredit Oracle. • Insider TradingExecutive Officers of the Company continue to be prohibited from engaging in anyspeculative transactions, such as short sales, puts, calls, straddles or similar transactions. • Extending/ Receiving Business CoutesiesOracle recognizes that accepted business practice and common courtesy sometimesrequire you to extend entertainment, favors, and small gifts to prospects and customers. • Export CoplianceFederal controls regulate exports of products and technical data from the U.S. and the re-export of these items from one foreign destination to another. Oracle products are subjectto these controls. • Protecting Confedential InformationBesides its people, Oracles most important assets are its intellectual property: copyrights,patents, trademarks, and trade secrets. When you joined Oracle, you signed a ProprietaryInformation Agreement obligating you to safeguard company and customer confidentialinformation and trade secrets. The agreement precludes you from directly or indirectlyusing or disclosing, except as necessary in the ordinary course of business, confidentialinformation obtained during the course of your employment. These obligations continuethroughout your employment and after you leave. • Conflict of InterestA conflict of interest describes any circumstances that could cast doubt on your ability toact with total objectivity regarding Oracles interests. You should avoid financial,Babasabpatilfreepptmba.com 31
  32. 32. Organisational Studybusiness, or other relationships, which might oppose Oracles interests or might conflictwith the performance of your duties. • Expenses Reporting and AccountingOracle adheres to the highest standards of financial reporting and disclosure, and weexpect the same of you. All information and reports you submit-such as timesheets,vacation reports, product order or shipment reports, expense reports, purchaserequisitions-should be accurate to the best of your knowledge. False, misleading, ordishonest reporting inside or outside the company is strictly prohibited. • Records Retention PolicyThe Oracle Records Retention Policy and Schedule sets forth the guidelines governingyour retention and disposal of Oracle records. This policy and schedule is intended toensure that Oracle maintains company records in accordance with applicable legal,regulatory and business requirements. You are responsible for understanding andcomplying with the Records Retention Policy and Schedule, which is located on Legalswebpage. • Travel and EntertainmentOracle Travel (managed by Carlson Wagonlit Travel) provides Oracle employees withcomplete business travel services, including agent-assisted reservations and e-Travelsupport and fulfillment.WORK ENVIRONMENT • Workplace SecurityOracle cares about your safety. We maintain security services at most of our facilities andlimit vendor and visitor access within the company. Security personnel can assist you inmost emergency situations, report incidents, and resolve lost-and-found issues. • Workplace SafetyBabasabpatilfreepptmba.com 32
  33. 33. Organisational StudyOracle supports an active health and safety program. We expect you to support theseefforts by reporting any unsafe conditions or practices, helping to minimize hazards andaccidental injuries and responding to directives and procedures in an emergency. • No SmokingThe use of tobacco products in the workplace is prohibited at all facilities. Employeesmay smoke in designated outdoor areas only. • Substance AbuseOracle is concerned about situations where the use of alcohol or drugs interferes with anemployees health or performance, adversely affects the health, safety, or performance ofothers, or becomes detrimental to Oracles business. • Flexible Work hoursEach of us runs on a different internal clock. Flexible work hours enable you to workwhen you are at your best when you can produce your highest quality and quantity ofwork. This flexibility, available to most full-time employees, allows you to efficientlyschedule personal business, commute time, and volunteer commitments around yourwork responsibilities. Your manager must review and approve any flexible work-hoursarrangement you propose. • TelecommutingOracle supports telecommuting, on a part- or full-time basis, with your managersapproval. Your ability to telecommute depends on the nature of your job and whethertelecommuting promotes departmental goals as determined by your manager.Telecommuting may be a temporary or long-term work option or used for a specifiedtime to accommodate a special project. • Transportation ProgramYou can take advantage of vanpool and carpool options, daily shuttles that operatebetween Oracle buildings and CalTrain stations, transit ticket sales, and bike lockers. Wealso offer Transportation Hotline and supply transportation information in the lobbykiosks. • Oracle in the CommunityBabasabpatilfreepptmba.com 33
  34. 34. Organisational StudyOracle believes in upholding its responsibility to the communities and environments inwhich we work. As part of this responsibility, Oracle sponsors programs that allowemployees and the company to contribute time and resources to a variety of socialinterests.BENEFITS • ORACLEFlexOracle offers a comprehensive benefits plan, called Oracleflex that enables eligibleemployees to choose the benefits and coverage levels that best meet their needs and thoseof their eligible dependents. • Employee Stock Purchase PlanOracles Employee Stock Purchase Plan lets you purchase Oracle common stock at adiscounted market price. By enrolling in the plan prior to any offering period, you maycontribute up to 10% of your cash compensation (salary, bonus, and commission) throughpayroll deductions. • Employee Assistence ProgramEAP services may help with stress, depression, and difficulties with children, divorce,alcohol abuse, drugs, job worries, marital, financial, or legal problems. • Life Solution ProgramA free employee benefit designed to help you balance your work, family, and personalresponsibilities. The LifeSolutions Program is an easy way for you to receive practicaladvice, useful materials and referrals, including: o Information on a variety of topics, such as becoming a parent, understanding the process of adoption, caring for elderly relatives or relatives with disabilities, managing your time effectively, or creating a living will; o Customized referrals to confirmed openings at child and elder care programs; o Personalized reports about public and private schools, colleges and financial aid; and o Practical advice on a variety of topics.Babasabpatilfreepptmba.com 34
  35. 35. Organisational Study • Workers CompensationThis insurance is provided to protect you if you are injured or become ill and the injury orillness arises out of and in the course of your employment. Workers Compensationinsurance provides benefits including medical care and wage-loss reimbursement whichis paid by Oracle. • VacationsEmployees working at least 35 hours per week accrue 13 days of vacation a year (whichcalculates to approximately 4.33 hours per pay period) for your first three years ofemployment, and 18 days a year (6 hours per pay period) after three years. • HolidaysOracle offers seven paid holidays a year. They are: • New Years Day • Memorial Day • Independence Day • Labor Day • Thanksgiving (2 days) • ChristmasCOMPENSATIONS • Pay ScheduleOracle pays you semi-monthly, on the 15th and the last business day of the month.Applicable deductions, including federal, state, and local income and payroll taxwithholdings are taken out of each payment. If your employment terminates, you are paidthrough the last day you work. • TimesheetAll Non-exempt employees are required to record all hours, including starting and endingwork time and meal periods in order to be properly compensated. They also must reportBabasabpatilfreepptmba.com 35
  36. 36. Organisational Studyall exception time including, overtime (if any), vacation taken, jury duty pay, militarypay, and shift premiums each week. • OvertimeAn employee works in a nonexempt position; he or she is eligible for overtime pay. Theemployees manager must authorize overtime work in advance. • Focal Salary ReviewThis process facilitates compensation budgeting, accurate competitive analysis, andtimely review of all employees. Salary increases are based on your productivity andcontributions, company performance, market comparisons with competitor companies,and other factors Oracle may wish to consider at its sole discretion. • Performance Bonus ProgramTwice a year, in June and December, Oracle management reviews all eligible employeesperformance for possible cash bonus rewards. Bonuses are not considered entitlements.Bonuses are discretionary. They are included as earnings in your paycheck. • Patent Award o Oracle maintains an active Patent Award Program. Report potentially patentable developments to Patent Operations in the Legal Department for evaluation as soon as practical. Information on patents and the patent program can be found at http://legal.us.oracle.com. • Employee Referral ProgramOracles Referral Bonus program pays the following amounts to those who refer peoplewho are hired for work at Oracle: Salary Amount for new hire Amount of Referral Bonus $0-$39,999 $500 $40,000 and up $1000The referral bonus amount may be different if the new hires division is running a specialreferral bonus program.Babasabpatilfreepptmba.com 36
  37. 37. Organisational StudyEMPLOYMENT POLICIES • Employment EligibilityAs a new employee, you must submit a completed, verified Form I-9 within threeworking days of your starting date, or you cannot continue to work. Any Oracle Manageror Human Resources employee may review your identity and work eligibility documentsand sign your form • Employment CatagoriesMost positions at Oracle require full time commitment. Some jobs, however, are bettersuited for part time or temporary employment. • Open CommunicationTo enhance open, honest, and regular communication, we encourage one-on-onemeetings between you and your manager. These meetings are an opportunity for mutuallearning and information exchange, and they provide a chance to explore ideas andissues. Feel free to discuss candidly complaints and concerns with your manager toprevent or quickly resolve them. • Equal Employment OpportunitiesWe believe in treating each employee and applicant for employment fairly and withdignity. We base our employment decisions on merit, experience, and potential, withoutregard to race, color, national origin, sex, gender, marital status, age, religion, disability,or sexual orientation. • HarassmentOracle is committed to providing a work environment that is free of discrimination.Oracle does not tolerate harassment of any kind, including harassment based on sex,gender, race, color, religion, age, mental or physical disability, national origin, maritalstatus, veteran status, sexual orientation, or any other characteristic protected underfederal or state law or local ordinance. Unlawful harassment may take many forms,including verbal, visual, or physical conduct that creates an offensive, hostile, orintimidating work environment.Babasabpatilfreepptmba.com 37
  38. 38. Organisational Study • Personal Relation In Work PlacePersonal relationships between employees, although not encouraged, are acceptable aslong as the employees maintain workplace conduct consistent with effective and efficientwork performance. Personal relationships in the workplace should be mutuallyconsensual and should not affect Oracles business in any way • Non-Oracle EmploymentWe strongly discourage you from seeking additional employment outside of Oracle.Before accepting outside employment, review the Proprietary Information Agreementyou signed when you joined the company. • Personal InformationYour personnel file contains personal and job-related information about you. We use thisinformation for internal purposes only. We will not release it, except as required by law,to any external person or agency without your written permission. • International Transfers and AssignmentsInternational assignments are Company initiated and may be short or long term,extending from three months to three years, with a possible extension to four years. Allinternational assignments require the appropriate senior management approvals. • RelocationOracle pays for certain relocation expenses if they are included as part of your writtenemployment offer. Relocation benefits are generally specified in the offer letter ortransfer approval. All relocation reimbursement are subject to current IRS eligibilityguidelines. You should consult your tax advisor about the potential tax implications ofyour move.Babasabpatilfreepptmba.com 38
  39. 39. Organisational StudyMARKETING & FINANCIALSTRATEGIESOracle Corporation Marketing Strategy for SMBsBabasabpatilfreepptmba.com 39
  40. 40. Organisational StudyThe biggest challenge for Oracle Corporation is to tap the SMB segment, where thereseems to be an enormous growth potential and the segment not being tapped well by themajor players. Oracle has formed strategies for entering this segment and the same can bediscussed as below:Oracle into SMB SegmentE-Business Suite Special Edition of the Oracle Corporation will be a channelonlyproduct. The vendor being applications-focused company and key element of its SMBapplications market on its ability to mobilize the channel. The company’s commitment toSMB partners rests on the foundation built over the past few years.Challenges: • The development of a more comprehensive partner road map that definesrewards and commitments at each level of the partner program specific to thisinitiative. • Greater emphasis on mentoring new partners in the sales consulting andimplementation processes via training and the creation of close working linksbetween new partners and its consulting group.New SMB Application StrategyOracle has made significant structural and procedural shifts in its partnering strategy andchannel field practices, that include broader partner access to Oracle’s product line andhigher levels of accountability for field execution. Oracle is making commitments topartners in the success of specific partner initiatives meaningful to the company’sstrategic direction. That’s what makes the company’s E-Business Suite Special Editionchannel strategy so important.How Does It Work?When defining channel versus direct sales territory, most application vendors use a"hard deck" defining channel territory as the ability to sell to any company below aBabasabpatilfreepptmba.com 40
  41. 41. Organisational Studypreset annual revenue threshold (e.g., SAP defines the territory for small businesspartners as any company having less than $75 million in annual revenue).The bases of this initiative are: • Partners have exclusive access to the E-Business Suite Special Edition implementation tools and supporting collateral. Direct sales reps cannot sell the product and must work with partners to sell and implement the product. • Partners have exclusive access to customers with less than $75 million in annual revenue (considered one of the target audiences for the offer). If partners find an opportunity with a customer above that revenue threshold, they can either attempt to position/sell the Special Edition version with an Oracle field sales rep or provide the lead to an Oracle rep to position the full product (the more likely scenario). In providing the lead to Oracle, the partner qualifies for a referral fee and can position it to fulfill the related services. • Partners are provided access to Oracle Accelerators (OAs), a set of implementation best practices built around specific business processes that partners can use to speed deployment.Benefits for Partners: 1. Benefit from having access to an open market, with no competing partners or interference from the Oracle direct sales force in accounts under $75 million. 2. Each partner is assigned a dedicated account manager that is tasked with and compensated for helping partners close deals. 3. The brand and tools to help partners enter new markets and win more clients, specifically smaller ones that would not have previously been prospects for E- Business Suite Special Edition. 4. Allows a partner to reduce traditional implementation processes to a level that supports SMB customer expectations around time and cost.Babasabpatilfreepptmba.com 41
  42. 42. Organisational Study 5. Allow partners to refocus resources on winning new accounts and expanding customer footprints through upselling and cross-selling additional Special Edition modules. 6. Smaller customers make decisions fast; still smaller accounts are unaccustomed to the more formalized sales and implementation approach of multifunctional, businesswide applications. Partners will point out that these customers don’t have the same rigor as larger ones in evaluating and implementing software to their specific needs. 7. The partner must educate the customer at each stage with strong project management skills.Oracle is also making its Application Demonstration Services (ADS) available to partnersfor support in running demos out of its Redwood Shores facility. This is somethingpartners have been after for years and will allow them to perform a wider array of demosmore quickly in order to improve close cycles.SMB Market Segmentation: Oracle has segmented the SMB market into three tiers: thelower tier (companies with less than $100M in annual revenue), mid-tier (companiesfrom $101M to $500M in annual revenue), and upper tier (companies with more than$500M in revenue). The SMB products sold to each of these Segments are as follows: • Oracle E-Business Suite Special Edition will be available to the low end through the growing Special Edition Partner Channel. • Oracle’s newly acquired EnterpriseOne product will be available to companies in the low and mid-tiers through the former J.D. Edwards Partner Channel. • Oracle E-Business Suite will be available to companies in the mid- and upper tiers through the Oracle direct sales force.Babasabpatilfreepptmba.com 42
  43. 43. Organisational StudyConclusion: SMBs should certainly consider Oracle when they are looking for newapplications. The products and associated tools and services are very competitive onfunctionality and price, but the marketing and channels are still a work in progress.In the field, Oracle is likely to struggle with selling, supporting, and positioningoverlapping products. This is never easy, and Oracle’s salesforce and field managementhave grown accustomed to direct selling a single product line. Choosing which productand which channel are best for a particular opportunity, and then explaining it to theprospect, can be difficult.Oracle marketing has a major hurdle. In order to help grow theSMB and midmarket business, it has to address the following issues: • The perception that Oracle’s applications and technology are designed for very large enterprises • The lack of market visibility of its SMB products and channels • The confusion associated with positioning multiple product lines and channels in overlapping size and vertical segmentsE-MarketingEnterprises are recognizing e-marketings role in their businesses, and they are lookingfor solutions that will integrate online marketing with other marketing activities, insteadof approaching the Internet as a "siloed" business segment. Theres a greater emphasis onaddressing e-marketing as part of an integrated marketing solution, and less focus on e-marketing-related functionality — for example, affiliate marketing and onlineadvertisement management — which is more-frequently addressed by function-specificpoint solutions. Therefore, several vendors that are not traditionally considered e-marketing players, but have their e-channel functionality transparently woven into theirmultichannel marketing solutions.With Siebel Systems and Oracle well-positioned to enter this quadrant in the next 12months. Market leadership requires not only the ability to execute, but also a compellingvision that drives the market, supports customer demand for competitive differentiationand forces other vendors to seek to match what leaders are doing.FINANCIAL SUMMARYBabasabpatilfreepptmba.com 43
  44. 44. Organisational StudyOracle has consolidated its financial systems into a single instance supported by fourshared service centers, initially as part of a much-publicized cost-reduction drive. As aresult of this project, Oracle also improved corporate governance by standardizing itsfinancial processes.Oracles transition from 52 separate financial systems to a single global instancesupported by shared service centers has been a challenging and, at times, painful projectdue to the magnitude of the change to established systems and processes. Cost savingshave been realized and the intangible benefits have also been significant. ). Additionally,Oracles CEO was focused on the single-instance strategy and the optimal use of theOracle E-Business Suite. Other organizations without these advantages may faceadditional challenges to achieve the same benefits as Oracle when consolidating theirfinancial systems.ObjectiveOracle initiated a project in 1998 to rationalize its application infrastructure. A key partof this program was to consolidate the financial systems into a single instance of OracleApplications 11i with a global chart of accounts, implement standardized financialmanagement processes and centralize financial functions into shared service centers. Inthis project, Oracle hoped to realize significant economies of scale by reducinginfrastructure and staff costs, while at the same time improving control of financialprocesses, reducing close times and improving data integrity. This would also give seniorexecutives better visibility into business performance.ApproachOracles approach to consolidating its financial management systems and processes hadthree main elements. 1. Design and implement a global chart of accounts in a single instance of the Oracle E-Business Suite. 2. Standardization of all financial management processes.Babasabpatilfreepptmba.com 44
  45. 45. Organisational Study 3. Development of shared service centers to centralize transaction processing.ResultsOracle identified a possible staff reduction of 25 percent and a potential 30 percentreduction in costs in the financial function. The increased emphasis on value-addedservices, governance and compliance means that Oracle has achieved a substantial part ofits target but not the full goal of 30 percent cost reduction in finance.In addition to the tangible cost savings, Oracle realized many intangible benefits,including: • Global visibility into financial information, giving managers a clearer understanding of their performance and reducing their demands for information from the finance function. • Data quality and consistency has significantly improved through the combination of a single instance and self-service applications (for example, employees enter all their expenses online, and consultants enter their time sheets via the Internet). • The definition and implementation of standardized financial processes meant that audit costs were reduced and operating reviews were conducted more effectively, making operating reviews and audits easier • Oracle increased the value provided by the finance function. Once the shared service centers were live, Oracle realized there was an opportunity to create value-added services in certain process areas. For example, staffing in the general ledger area has actually increased because Oracle added more qualified staff to focus on higher-value activities, such as balance sheet management (this includes proactively managing cash flow and treasury positions.Balance Sheet for Oracle Corporation for the last 3 yearsFINANCIAL SUMMARY 2002 2003 2004Babasabpatilfreepptmba.com 45
  46. 46. Organisational Study USD inUSD inUSD in thousands thousands thousandsNet Sales 9,673,000 9,475,000 10,156,000EBITDA 3,885,000 3,767,000 4,103,000EBIT 3,506,000 3,423,000 3,869,000Net Profit 2,224,000 2,307,000 2,681,000Intangibles 446,000 345,000Long Term Invest. 406,000 233,000 60,000Fixed Assets 987,000 1,062,000 1,068,000Current Liabilities 3,960,000 4,158,000 4,272,000Long Term Debt 298,000 175,000 163,000Total Shareholder Eq 6,117,000 6,320,000 7,995,000Cash 3,095,000 4,737,000 4,138,000KEY RATIOS 2002 2003 2004Net Profit Margin 22.99 24.35 26.40ROE 35.89Cur. Ratio 2.2000 2.2200 2.6500Debt/Capital 0.0300 0.0300 0.0100Babasabpatilfreepptmba.com 46
  47. 47. Organisational StudyPRODUCTSANDSERVICESOracle Corporation Products and Services 1. ORACLE DATABASE 2. ORACLE APPLICATIONS 3. ENTERPRISE MANAGEMENT 4. MIDDLEWAREOracle DatabaseBabasabpatilfreepptmba.com 47
  48. 48. Organisational StudyWith Oracle Database 10g, the first relational database designed for Grid Computing,your information is always available and secure. Oracle Database 10g lowers the cost ofownership through automated management while providing the highest possible qualityof service. And with Release 2, Oracle builds on Release 1s foundation to furtherimprove efficiencies and reduce the cost of information management. Oracle is the bestchoice for large enterprises, small and midsize businesses, and departments alike.Enterprise EditionOracle Database Enterprise Edition offers industry-leading scalability and reliability inclustered as well as single-system configurations. It provides comprehensive features foronline transaction processing (OLTP) and business intelligence and delivers the lowesttotal cost of ownership.Standard EditionOracle Database 10g Standard Edition is a full-featured database for small to midsizebusinesses and departments that require performance, availability, and security in a low-cost package. Available on single or clustered servers (up to four processors in total),Oracle Database 10g Standard Edition offers fast installation, simple configuration, andautomated management.Standard Edition OneOracle Database Standard Edition One is a full-featured database packaged for small tomidsize businesses and departments. As part of the complete Oracle Database family,Oracle Database Standard Edition One offers full compatibility and scalability to tackleyour biggest challenges and is available for only US$149 per user (minimum five users).Lite EditionBabasabpatilfreepptmba.com 48
  49. 49. Organisational StudyOracle Database Lite is a complete, integrated, secure database for building, deploying,and managing mobile applications for a broad range of mobile devices.Real Application ClustersOracle Real Application Clusters (Oracle RAC), an Oracle Database option product, canrun packaged or custom applications unchanged in a cluster of low-cost servers.Oracle ApplicationsOracle’s business is information — how to manage it, use it, share it, protect it. Oracleapplications deliver the information foundation and complete functionality you need togrow your information-driven business. Oracle applications enable information-drivenbusiness processes that connect and automate your organizationCorporate Performance Management SolutionsOracle’s Corporate Performance Management and applications enable organizations toachieve world-class performance by aligning the right information and resources tostrategic objectives. Oracle’s integrated solutions provide a complete understanding ofthe business and communicate business metrics throughout the organization to driveaccountability for performance at all levels. Built-in business intelligence deliverspersonalized, relevant information that allows business leaders to evaluate risk and makeadjustments to minimize risk.Customer Relationship Management SolutionsOracle offers three, best-in-class CRM solutions that are specific to your businessesindividual requirements. Regardless of your industry focus, your size of business, or yourindividual selling model, Oracle has just the solution you need for leveraging and usingenterprise information for maintaining focused and profitable customer relationships.Oracle Financial Management SolutionsBabasabpatilfreepptmba.com 49
  50. 50. Organisational StudyOracle Financial Management applications empower finance organizations to driveenterprise value with better information for targeting growth and a platform forsustainable compliance. Oracle Financial Management provides:VisibilityImprove transparency of business, financial, and compliance performance. Drive businessperformance and enable better management decisions through more accurate forecasts,visibility into relevant and timely management information, and a closed-loop plan-to-measure process.ControlStrengthen financial discipline and governance best practices. Confidently and efficientlycomply with company and regulatory policies using control-based business andcompliance applications.EfficiencyImprove business processes, sustain compliance, and reduce costs. Reduce complexity,risk, and costs by consolidating information and streamlining and standardizing globalprocesses.Oracle Human Capital Management SolutionsAchieving workforce excellence requires HR to transform from a predominantlyadministrative department to a function that develops and delivers programs to improveworker efficiency, effectiveness, and productivity. HR transformation requires adoptionof a comprehensive Human Capital Management (HCM) strategy to drive programsdevelopment, process redesign, and technology implementations. Oracle HCM Solutionsenable effective HCM strategy execution to align the workforce with strategic objectivesand achieve workforce excellence.Oracle Procurement SolutionsBabasabpatilfreepptmba.com 50
  51. 51. Organisational StudyOracle offers integrated suites of procurement applications that can dramatically cut allsupply management costs. Oracle applications enable organizations to reduce spend onall categories of goods and services, streamline procurement processes, and enforcepolicy compliance.Oracle Project Management SolutionsOracle applications for enterprise Project Management enable project-centricorganizations and departments to establish core operational processes that support fullproject lifecycle management—across operations and finance—from project selection,planning and staffing, through execution, charging, and analysis. Oracle provides asingle, accurate view of all project-related activities so you can choose and prioritize theright projects, assign the right resources, proactively streamline execution, and trackprofitability via accurate budgeting, forecasting, and billings/chargebacks.Oracle Supply Chain Management SolutionsRegardless of your industry focus-high technology, automotive, aerospace and defense,life sciences, etc.-your type of business, or your individual supply chain model, Oraclehas just the right supply chain management solution for youOracle Enterprise ManagerOracle Enterprise Manager with Oracle Grid Control provides a single, integratedinterface for administering and monitoring applications and systems based on the Oracletechnology stack. Enterprise Manager includes complete monitoring, performancemanagement, distributed database and application server administration, enhanceddiagnostics, automated tuning, and an architecture that allows administrators to managefrom anywhere.MIDDLEWAREBabasabpatilfreepptmba.com 51
  52. 52. Organisational StudyOracle Fusion Middleware is a family of standards-based, customer-proven productsincluding Oracle Application Server and related tools and options, Oracle CollaborationSuite, and Oracle Data Hubs. Oracle Fusion Middleware enables organizations to getmore out of their existing investments and more out of middleware—delivering thebroadest and most tightly integrated infrastructure software offering available.Oracle Fusion Middleware FamilyApplication Server (All Editions) Developer Suite JDeveloperBPEL Process Manager Files PortalBusiness Intelligence Forms and Reports TopLinkCollaboration Suite Identity ManagementData Hubs IntegrationOracle Application ServerOracle Application Server 10g offers a comprehensive solution for developing,integrating, and deploying your enterprises applications, portals, and Web sites, all basedon a powerful and scalable J2EE server, complete business integration and businessintelligence suites, and best-of-breed portal software. As the only platform designed forgrid computing and providing full Service-Oriented Architecture (SOA) lifecyclesupport, Oracle Application Server gives you unmatched scalability, availability,manageability, and security.Oracle IntegrationOracle Integration provides everything you need to integrate data, enterprise applications,and business processes within your organization and with trading partners. Built onOracles grid infrastructure, it delivers enterprise-strength performance, scalability, andmanageability. And with tight integration with the Oracle E-Business Suite, it is the bestproduct for integrating Oracle applications with third party applications, B2B protocols,and Web services.Oracle ServicesBabasabpatilfreepptmba.com 52
  53. 53. Organisational StudyGlobalization. Simplification. Standardization. Automation. Innovation. These fiveprinciples underlie everything we do at Oracle.Oracle Services help you get the most from your technology investment. Working withyou every step of the way, Oracle provides a variety of services that span the completesolution life cycle. Whether you need consulting, financing, outsourcing, support oreducation, you can get it from the experts who know Oracle best.Oracle ConsultingOracle Consulting builds creative solutions for modern businesses. Drawing on industrybest practices and specialized software expertise, Oracle consultants help you assess yourcurrent infrastructure, create your enterprise computing strategy, and deploy newtechnology.Oracle UniversityLearn Oracle from Oracle. Oracle University delivers the expert-led training to benefit allour Oracle communities through their Oracle relationship.Oracle on DemandOracle on Demand delivers Oracle software as a service to Oracle customers around theworld. Your Oracle software is managed by Oracle experts—at Oracle, at your location,or at a third party—to improve the performance, reliability, scalability and security ofyour information. Increase the efficiency of your business processes and systems withOracles industry-leading technology and let Oracle On Demand handle your upgrades,patches and maintenance. Now you can focus staff on strategic projects, deployingresources and technology for better user productivity and satisfaction.Oracle SupportOracle Support is the largest and most advanced support organization in the world. Theglobal team of over 8,000 developers and 6,000 support professionals drives better resultsBabasabpatilfreepptmba.com 53
  54. 54. Organisational Studyfor our customers by ensuring that Oracle technology and applications deliver optimalperformance.No other support organization can match Oracles breadth and depth of technicalexpertise, advanced support technologies, or global reach. Ongoing updates andenhancements keep your products and systems up-to-date and running smoothly.Technical information and expert advice help you resolve problems quickly andeffectively so that your Oracle technology and applications are always available andalways running at peak performance. Ultimately, Oracles Support Services offer you asuperior ownership experience.Oracle FinancingOracle financing and leasing offerings are competitive, comprehensive—and one of theeasiest ways to affordably acquire the right solution for your business.We offer quick approvals and simple documentation, and you can buy your entiresolution of hardware, software and services from multiple vendors using a singlepayment structure from Oracle Financing.Oracle Corporation CustomersTop Organizations in India run Oracle softwareBankingICICI, HDFC Bank, State Bank of India, Punjab National Bank, UTI Bank, IDBI BankInsuranceGeneral Insurance Corporation, Life Insurance Corporation, National InsuranceCorporation, New India AssuranceTelecommunicationsBSNL, Bharti, Hutch, MTNL, Satyam Infoways, SpiceManufacturingCoates India, Cummins, Hindalco, Hindustan Levers Limited, Indal, Kirloskar OilBabasabpatilfreepptmba.com 54
  55. 55. Organisational StudyEngines Limited, Lakshmi Machine Works, Maruti Udyog Limited, MRF TyresGovernmentAirport Authority, Indian Airforce, Andhra Pradesh Government, Central Bureau ofInvestigation, Gujarat Government, Indian Railways, Police departments, West BengalGovernment, Coimbatore Municipal CorporationMajor Customers - WorldWideOracle DatabaseAmazon.com Ohio Savings BankColgate-Palmolive Roman, Inc.Dell Eurostar Southwest AirlinesEastman Chemical Talk AmericaCompanyMainstream USGS Water ResourceTechnologies DisciplineOracle ApplicationsAtari LG.Philips LCDC-COR Corp OTEEMC) PellaGE Energy POSCOJohn I. Haas USDOTBabasabpatilfreepptmba.com 55
  56. 56. Organisational StudyOracle Enterprise ManagerBT Group plc. Student Loans CompanyDell GEDIS Swiss Federal RailwaysDeutsche Bank TelstraElectronic Arts TUSCFannie Mae USGS Water Resource DisciplineSWOT ANALYSISSTRENGTHS 1. A well known global brand in software technology. 2. It’s the world’s second largest software company after MicroSoft and world’s leading supplier of software for information management. 3. It is one of the first companies to make its business application available through internet. 4. It has strong finincial position, with $ 9 Billion as its revenue in the last finincial year. 5. It is the number one brand in the database market.It is the market leader with 39.1% of the market share. 6. It is the biggest ‘Enterprize Brand‘in the world market. 7. It has managed to cut its IT cost by almost 80% in the next fiscal year. 8. Oracle Corporation technology can be found in nearly every industry around the world and in offices of 98 of the fortune 100 companies. 9. It has been the market leader in Relational Database 10. Oracle brand is strong enough to drive sales beyond the core database system, even through database sales represent 70% of Oracles revenue. Business applications represent 20%, middleware 8%, and other software products such as tools 2% 11. In the area of database scalability and reliability, Oracle is leading the market with its Real Application Clusters, Gartner analyst Donald Feinberg said. RAC letsBabasabpatilfreepptmba.com 56
  57. 57. Organisational Study customers use Oracle on large clusters or grids of low-cost servers, gaining reliability and scalability at a reasonable cost. 12. "They have their hands on the tiller, they understand what market segment they are selling into, and they are executing with strong financial management" of the company.WEAKNESS 1. Brand Image of being an ‘Enterprize Organisation’ is making it hard for Oracle Corporation to penetrate into the small and medium businesses. 2. It depends heavily on North America market. 3. Oracle Strong in Databases, But It Must Execute On Applications. - Oracle, arguably the dominant database vendor, is bent on expanding its sales in middleware and applications. But any stumbles in its plan to merge three sets of business applications will benefit its chief competitor, SAP. 4. The sometimes-disjointed air of Oracles initiatives is reflected in the fact that the 11i series of its E-Business application suite hasnt yet been certified internally to run on the Oracle 10g database system, which has been out for a year, Comport pointed out. 5. While Oracle is consistently strong in database sales, its application revenue has been "up and down, erratic," 6. Oracle products apply the patches to supported versions. If older editions are in use, such as 7.x or 8.0x, they advised companies to either upgrade immediately or switch to a rival database. 7. Oracle Needs To Come Clean On VulnerabilityBabasabpatilfreepptmba.com 57
  58. 58. Organisational Study - Although keeping mum is Oracles standard policy, the analysts took the company to task for not spelling out the consequences of not applying the patch, and more important, whether the vulnerabilities affect older, non-supported versions of Oracles Database Server, Application Server, and Enterprise Manager. "At worst, [this means] records in every Oracle database you own could be vulnerable," . "System administrators dont have enough information to decide which servers to prioritize or which data is most vulnerable."OPPORTUNITIES 1. Small and Medium Businesses(SMBs) market is the biggest opportunity for Oracle, because this market is untapped and recent studies shows that SMB’s will be increasing their IT spending more than any other business sector. 2. There would be 20% increase in the demad for ERP and SCM products in the World Marke. Oracle Corporation has plans to capatalise on these opportunities. 3. "The challenge for Oracle is to move from individual products into an overall message" that sums up what it does for the customer, Comport said. That message hasnt emerged yet as Oracle engages in acquisition battles, such as the hostile takeover of PeopleSoft Inc. and the bidding war for retail software supplier Retek Inc. 4. "The challenge for Oracle is to move from individual products into an overall message," one that sums up what Oracle does for the customer.THREATS 1. IBM is the biggest competitor of Oracle Corporation in Large Business Sector., especially in Database and Application Server market. 2. In SMB’s, Oracle Corporation is facing still competition from Microsoft, the leader in the market space.Babasabpatilfreepptmba.com 58
  59. 59. Organisational Study 3. Misconceptions like Oracle are expensive and not user friendly is the biggest threat for Oracle Corporation in SMB market. 4. Oracle remains the dominant database vendor, but will face challenges as it tries to expand its middleware and applications sales. The slightest misstep when trying to merge its recent acquisitions will only serve to benefit its key competitor, SAP.RECOMMENDATIONS / SUGGESTIONS A) SMB market is a highly upcoming market, thus Oracle Corporation can leverage on this opportunity. B) Oracle Corporation should partner with more ISV’s (Independent Software Vendors) for better distribution of its product. C) Oracle Corporation must extensively promote awareness programs to clear the misconcepetion about its Product, which it is only for big enterprises. D) Oracle Corporation’s image in the large business segment can be used to influence small and medium businesses that have large business as their clients. This will help Oracle Corporation penetrate in small and medium business segments. E) Oracle Corporation should device schemes and strategies to tackle competitors in both large and small business segments. F) Industries in the various territories that have not yet been penetrated must be looked with appropriate marketing strategies and captured. G) The price perception of Oracle Corporation’s products must be removed from the minds of SMB market through various activities such as mass media, journals, technology fest, i-seminar, etc.Babasabpatilfreepptmba.com 59
  60. 60. Organisational StudyCOMPETITORS ANALYSISOracle Corporation being the leaders of database vendors of the world, the biggestcompetition comes in when there is a competition with its primary product, the databasemarket.Recent reports from both IDC and Dataquest paint a picture of the database market, withgrowth projected to average around 6% per year. This limited growth as a bad sign forOracle Corporation, since a great deal of our revenue comes from our database product.Although the overall market may be growing conservatively, there is a pronounced shiftin the allocation of the spending within that market – a shift that favors Oracle’s database.The basicsThere are three basic facts that lay at the root of this analysis 1. the existence of a shift in the overall database market, 2. the technical platforms involved in this shift, 3. the cost of the shift to individual organizationsThe shiftThe Unix database market, which is based on propietary hardware, has been losingmarket share, while that segment of the market that is based on low cost, commodityhardware (the x86 architecture) has been gaining. The driving force behind the shift iseasy to see – x86 servers are typically dramatically less expensive than other serverarchitectures.Babasabpatilfreepptmba.com 60