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Harnessing Value of Retail Commerce Applications on Engineered Systems

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  • 1. 1 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 2. Harnessing Value of Retail Applications with Oracle Engineered Systems Sanjeev Sharma Principal Product Director2 Oracle Exalogic Elastic Cloud Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 3. of consumers will 86% PAY MORE for a better Customer Experience.*3 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential *Source: Harris Interactive Customer Experience Impact (CEI) Survey, September 2011
  • 4. CUSTOMER EXPERIENCE BOOSTS REVENUE REVENUE 10% point increase in Customer Experience = $2.2B Index Source: Forrester Research, “Customer Experience Boosts Revenue”, Bruce Temkin, June 22, 2009 *The increase in revenue include that from Additional purchases, Churn reduction and Word-of-mouth advocacy4 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 5. mobileBy 2014, the web will socialdirectly account for 8% of Mobile commerce willU.S. retail sales and influence local reach $31 billion by 2016*53% of consumer purchases* Experiences happen anytime, anywhere, all day, every day 5 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential *Source: Forrester Research, 2011
  • 6. How do you affect the Moments of Interaction?6 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 7. MARKET, INTERACT, TRANSACT – ACROSS TOUCH-POINTS Online On the Go In the Store7 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 8. MUTI-CHANNEL CUSTOMER EXPERIENCE UTOPIA! “Why can’t I order an item “Wouldn’t it be nice if they online and pick it up at rewarded me for my my local store?” business?” Mobile Web “When I clicked the “Chat Store Mail “Why can’t I check myNow” the agent had no idea order status from my of what was in my phone? Acme lets me.” shopping cart?” Call Center Partner “When I go online, I can’t easily find what I need. Its too complicated to find @ “The promotions I receive are relevant. Once they sent me a coupon after my Email Social what’s best for me.” purchase?”8 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 9. Frustrated Customers Lead to Lost Revenue, Loyalty and Share of Wallet CUSTOMER FRUSTRATION LOST REVENUEPercentage of customers dissatisfied withcross-channel experience1 Revenue lost by enterprises in 16 key global economies due to customerPercentage of multi-channel customers thatswitch vendors after a single bad experience $338 Billion defections and abandoned purchases 2 Revenue lost by enterprises in 16 key global economies due to customer defections and abandoned purchases 2 9 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 10. Website Performance Critical to Customer Experience 33% of dissatisfied online shoppers attributed their dissatisfaction to the Web site being too slow10 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 11. YOUR BUSINESS CAN’T AFFORD TO MISS A BEAT CUSTOMER SATISFACTION CONVERSIONS1 second delayin page load time = 16% 7%11 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 12. ARE YOUR WEB COMMERCE APPLICATIONS KEEPING UP?12 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 13. WHAT DOES IT TAKE TO DELIVER APPLICATIONS SUCCESSFULLY? EASE OF DEPLOYMENT AT LOW COST RUNTIME EXCELLENCE BUILT ON OPEN STANDARDS INTEGRATED MANAGEMENT13 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 14. ORACLE RETAIL SOLUTION FOR CUSTOMER EXPERIENCE ATG InQuira Optimization eCommerce Services (SaaS) Merchandising Knowledge Mangement Oracle Page Delivery Customer-facing Self-Service Commerce Applications Endeca Fatwire Web Content Managment Search Page Delivery (optional) Knowledge Mangement Page Layout Management Personalization (optional) Customer-facing Self-Service Oracle Exalogic Engineered Systems Exadata14 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 15. A NEW ERA: ORACLE ENGINEERED SYSTEMS HARDWARE AND SOFTWARE ENGINEERED TO WORK TOGETHER Before Now ORACLE EXALOGIC & ORACLE EXADATA15 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 16. HARDWARE - SOFTWARE ENGINEERED TOGETHER • Engineered to work together • Tested together • Certified together • Packaged together • Deployed together • Upgraded together • Supported together • Managed together16 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 17. GROUNDBREAKING TIME TO MARKET FEWER PIECES TO BUY, DEPLOY & MAINTAIN 100’s of Components  1 Machine 1000’s of Hours  1 Day17 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 18. ORACLE EXADATA DATABASE MACHINE FASTEST FOR OLTP, DATA WAREHOUSING & MIXED WORKLOADS BEST COST/PERFORMANCE BEST DATABASE CONSOLIDATION PLATFORM SCALES FROM ¼ RACK TO 8 FULL RACKS18 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 19. ORACLE EXALOGIC ELASTIC CLOUD EXTREME PERFORMANCE FOR JAVA APPLICATIONS EXTREME PERFORMANCE FOR ORACLE AND OTHER BUSINESS APPLICATIONS SIMPLIFIED MAINTENANCE BEST CONSOLIDATION PLATFORM19 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 20. EXALOGIC AND EXADATA WORKING TOGETHER Typical 5X OTLP Performance Gain Exalogic Exadata HIGHEST LEVEL OF SERVICE IN THE INDUSTRY WITH ORACLE PLATINUM SERVICES20 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 21. HARNESS THE VALUE OF RETAIL APPLICATIONS SEIZE LOWER REDUCE MARKET BUSINESS COST AND OPPORTUNITIES RISK COMPLEXITY21 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 22. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE ACQUISITION RETENTION EFFICIENCY22 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 23. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE ACQUISITION RETENTION EFFICIENCY • Increase in Traffic • Increase in CSAT • Increase in SS% • Increase in • Increase in CES • Reduce Cost per Conversion Rate Transaction • Increase in NPS • Increase in AOV • Reduce SG&A%23 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 24. EXAMPLE: CALCULATING REVENUE IMPACT Traffic x Δ Conversion rate = Δ # of Customers Δ # of Customers x Frequency = Δ Purchases per Year Units per Transaction Average Order Value x Average Selling Price (ASP) = (UPT) (AOV) Δ Purchases per Year x Average Order Value (AOV) = Δ Gross Revenue Δ (Returns+ Cost of Loyalty Δ Gross Revenue - = Δ NET REVENUE Program(Discount))24 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 25. CASE STUDY: BRAZILIAN ONLINE RETAILER COMPANY OVERVIEW • Largest sporting goods retailer in Brazil, $500M+ revenues • 100%+ YoY growth over the last decade CHALLENGES / OPPORTUNITIES • Frequent outages and poor response time for online commerce application Runs ATG and • Rising datacenter costs due to ad-hoc and frequent hardware Weblogic Server on refresh and management complexity • Poor customer experience resulting in high order abandonment Oracle Exalogic! resulting in revenue loss RESULTS • 6x improvement in throughput • 7X reduction in datacenter footprint • Double-digit improvement in conversion rates25 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 26. ORACLE EXADATA & EXALOGIC: PHENOMENAL ADOPTION26 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 27. THE PERFECT CUSTOMER EXPERIENCE WHERE BRAND PROMISE MEETS BRAND EXECUTION “The value of my brand, the fate of my enterprise, is in their hands, driven by the quality of their experience”27 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 28. JOIN THE COMMUNITY Twitter Facebook Blogs LinkedIn YouTube Visit us at:oracle.com/us/products/engineered-systems28 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 29. 29 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 30. 30 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 31. 31 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential