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Frank oracle strategy v2.3 fb.ppt [compatibility m

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  • 1. A Strategic View On Oracle: Creating Options Frank Buytendijk Vice President and Fellow, Oracle Corporation www.oracle.com/thoughtleadership
  • 2. Oracle Corporation Copyright ©2009, Oracle. All rights reserved. Oracle Confidential *Source: http://www.oracle.com/corporate/information-powers-profitability.pdf
  • 3. What’s The Story Behind <Insert Picture Here> Oracle’s Strategy? • Market Evolution • Modern IT Strategy • The Oracle Strategy
  • 4. Aristotle
  • 5. How The World Develops… Anti Thesis thesis Syn Anti- thesis thesis
  • 6. How Does That Apply to the World of IT? Best of Breed … Support business automation (general ledger, order entry) One Stop Shop “Thesis” … Business integration (ERP, CRM) “Antithesis”
  • 7. The New IT Paradigm Single Middleware, Best Of Breed Applications “Synthesis” … Support value chain integration, and integration of performance, risk and operations
  • 8. How Does That Apply to the World of IT? Best of breed One Stop Shop (+) Flexibility (+) Industry best practice (-) Integration burden (-) Lock-in Work with many vendors Work with a single vendor Age of Development Age of Application “Creating Flexibility” “Creating efficiency” “thesis” “antithesis” Fusion (+) Flexible, no lock-in (+) Pre-integrated Work within an ecosystem Age of Architecture “Creating Options” “synthesis”
  • 9. How Does That Apply to the World of IT? Best of breed One Stop Shop (+) Industry best practice (-) Lock-in Work with a single vendor Application focus “Creating efficiency” “thesis” “antithesis” Fusion “synthesis”
  • 10. <Insert Picture Here> Modern IT Strategy
  • 11. White Paper: Business/IT Alignment, An Oracle View www.oracle.com/thoughtleadership Don’t judge whether the company has the right strategy or not, but how it adapts to changing circumstances. IT is crucial in providing that flexibility. IT strategy can be seen as a portfolio of investment opportunities that can be delayed, expanded, switched or abandoned when needed, called “real options”.
  • 12. The Bottom Line Traditional thinking • Risk and uncertainty depress the value of an investment Options-based strategy • The higher the uncertainty, the higher the value of agility • If managing risk is a core competence, risk adds to the value of an investment (*) (*) The discipline of making organizations smart, agile and aligned is called “management excellence”
  • 13. Introducing “Technology Excellence” A Complete, Open, Integrated IT Strategy Complete Open Integrated More Business Anticipate Drive The Opportunities Currently Complete Through IT Unknown Value Chain Innovation Needs
  • 14. Complete – The IT Radar Process Customer IT Becomes Cocreation Core B2C integration Business Crowd Information sourcing Collaborative processes Information Management 2.0 is the product Expand processes focus Information (Serious) Democracy Gaming Business processes Pervasive Sensor computing technology MIS Servers, Traditional Applications, Mobile Augmented Techno computing Reality logy IT Security, etc. 1990s Today
  • 15. Augmented Reality RFID
  • 16. Open – Dealing with Long Term and Short Term • Fast pace of technology development, yet long-term investment cycles • The need to anticipate currently unknown requirements and capabilities in both hardware and software • Compose, decompose, recompose business processes
  • 17. Integrated IT Strategy Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Opera Outbound Marketing Service Logistics tions Logistics Sales Based on Michael E. Porter’s Value Chain
  • 18. Integrated IT Strategy Web Channel Customer Contact Center Face to Face (Shops, Account Management) Intermediaries Based on Michael E. Porter’s Value Chain
  • 19. Integrated IT Strategy Facility Employee IT Management Services Finance / HR Channel Operations Sales Inbound Product Development Logistics Marketing Operations Procurement Service Inbound General Management Logistics Operations Outbound Logistics Flow of Goods Flow of Information
  • 20. <Insert Picture Here> A Strategic View on Oracle
  • 21. More Speed, Less Risk: Creating Options “We view acquisition as successful R&D without risk. Customers are actually getting access to a whole industry’s R&D.” Charles Phillips, President, Oracle Corp.
  • 22. Creating Options • Higher growth, less risk • Seek out the most effective technology • Pace, switch, expand investments and acquisitions. • Respond quickly to new and different requirements • See trends across various industries. • Combine operational excellence, product innovation and customer intimacy.
  • 23. Creating Options Being architected for heterogeneous IT landscapes, Oracle is effective in many different markets.
  • 24. The First Transformation “The big theme the first time around was for cost efficiency, cost reduction, global consistency and how we run our business.” – Jeff Henley, Chairman of the Board, Oracle Corp.
  • 25. Oracle’s First Global Transformation 1998 Today 52 application instances 1 application instance 70 HR databases 1 database (plus backup) 140 product pricing databases 1 database (plus backup) 40 data centers 2 data centers (backup included) 97 email servers 4 email servers (backup included) Inconsistent Business Processes Global Standard Processes 27 Websites with Different Logos 1 Consistent Brand Globally Fragmented Data Consistent Data and Global Business Intelligence Decentralized Decision Making Centralized Decision Making • Geography • Global process owner • Line of business • Divisional process owner • Global application owner
  • 26. Oracle IT as a % of Total Revenue Copyright ©2009, Oracle. All rights reserved. Oracle Confidential
  • 27. The Transformation Payoff 15% Fiscal Year OPERATING MARGIN % Copyright ©2009, Oracle. All rights reserved. Oracle Confidential
  • 28. The Second Transformation From Operational Excellence to Management Excellence • Customer Intimacy – Global BI, 360 degree view of the customer – Information for Everyone • Operational Excellence 2.0 – Post-merger integration: Peoplesoft acquisition took 6 months, Siebel 5 months, Hyperion 3 months • Product innovation: Oracle is an ecosystem – Partners – User groups – Open Source community
  • 29. Oracle Acquisitions APPLICATIONS TECHNOLOGY Enterprise Deals Enterprise Deals Business Middleware Applications Management Performance Management Project-Intensive Identity Retail Management Communications Content Management & Health Sciences (Pending*) Collaboration Utilities Banking Database Insurance Systems Manufacturing Management (Pending*) Copyright © 2009, Oracle and/or its affiliates. All rights reserved. *Subject to closing conditions
  • 30. The Oracle Product Strategy Complete Open Integrated Comprehensive Standards-Based Designed to Industry Portfolio Architecture Work Together More Value More Choice More Flexibility Less Complexity Less Risk Less Cost
  • 31. Complete Management & Decision Support Management & Decision Support Core Core Back Front Back Front Business Business Office Office Office Office Value Chain Value Chain Middleware Middleware Database Data Base Hardware / Infrastrucutre Hardware / Infrastrucutre Management & Decision Support Management & Decision Support Core Core Back Front Back Front Business Business Office Office Office Office Value Chain Value Chain Middleware Middleware Database Database Hardware / Infrastrucutre Hardware / Infrastrucutre [OS]
  • 32. Unrivaled Leadership in Open Standards BPEL RBAC
  • 33. Integrating Your Enterprise Integrated business processes Integrated user experience Integrated business intelligence
  • 34. Conclusion • Judge your IT strategy based on its ability to adapt (not whether the strategy is right or wrong) • To deliver on such a strategy, focus on architecture • The most important decisions to make are about middleware and SOA-based applications • See www.oracle.com/thoughtleadership for more
  • 35. August 23

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