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Oracle Support Services Customer Requirements for Support Services North America A custom research project for Oracle Support Services
Oracle commissioned a study to understand customer support needs and identify opportunities to improve services. The research found: 1) Oracle is not meeting high customer expectations for support quality. There is an opportunity to sell additional support services. 2) The current segmentation model (enterprise vs general business, database vs applications) does not accurately predict support needs. 3) A better model segments customers based on their internal capabilities and support needs into: Insurance Buyers wanting minimal help; Expertise Augmentation Buyers wanting task-specific help; Solution Buyers wanting project help; and Partnership Buyers wanting strategic help. 4) Half of interviewed customers were identified as needing more support than what Oracle currently provides. The
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Oracle Support Services Customer Requirements for Support Services North America A custom research project for Oracle Support Services
- 1. Confidential Jean-Gabriel Henry &Carlos Camargo Collaborative Marketing 399 Main Street Los Altos, CA 94022 650-949-4882 April 1999 Oracle Support Services Customer Requirements for Support Services North America A custom research project for Oracle Support Services
- 2. Confidential Roadmap Introduction & MethodologyIntroduction& Methodology High Level Findings Conclusions & Recommendations Detailed Findings
- 3. Confidential Objectives • Assess supportservices currently in use - What do customers expect from Oracle today? How well is Oracle meeting its customers’ expectations? • Characterize the market segments - What are the segments? How are they different when it comes to support services? • Develop model for “best practices” - What support services do Oracle customers want Oracle to develop? • Identify the right bundled of services -How can services be bundled to best satisfy groups of Oracle customers? • Identify the gaps between current offering and customer requirements - Where are the gaps in Oracle delivering at level of “best practices”? • Propose solutions to fill gaps - What can Oracle do to become the best service and support vendor? Oracle asked Collaborative Marketing to conduct in-depth interviews with service and support users to build insights into the following:
- 4. Confidential Methodology Project Kickoff Project Kickoff OracleInternal Interviews Oracle Internal Interviews Interviews with customers of competing vendors Interviews with customers of competing vendors Oracle Customer Interviews Oracle Customer Interviews Weekly Meetings Weekly Meetings Synthesis and Analysis to form Recommendations Synthesis and Analysis to form Recommendations • Senior VP of Operations • Senior Director • Senior Manager • IT Director • Manager of Enterprise Data Systems • Manager IT • Director of System Administration • Team Leader • IS Manager • Application Manager • Senior DBA Collaborative Marketing targeted senior level individuals who manage their companies’ applications and databases. The titles of the respondents included: Collaborative Marketing interviewed Oracle customers as well as customers of competing vendors to establish what best practices are for support services Collaborative used a qualitative (exploratory) approach to conducting this research rather than a quantitative (deterministic) one with the goal of surfacing the key issues for understanding the Oracle Support Services market. Once these issues have been identified, quantitative research can be designed to answer specific questions. We used senior analysts to conduct in-depth, open-ended discussions with high-level IT managers that yielded insights that we would not have found using quantitative research. Research Methodology
- 5. Confidential Why was qualitativeresearch used? Qualitative Research Quantitative Research Motive • Exploratory • To identify issues and to define right questions • For discovering underlying motivations, feelings, values, attitudes and perceptions • Deterministic • To answer specific questions such as how many? How much? Who conducts the interviews? • Led by senior research analyst • Low level analyst or e-mail What is the structure of the interview? • Open ended discussions • Preset questions and defined survey responses How deep are the interviews go? • In depth interviews • Quick, cursory interviews What are the strengths? • Open to new insights (surprises) • Allows for refining of areas of exploration as study progresses • Completely representative • Statistically valid What are the limitations? • Not statistically projectable • Small sample sizes • Inflexible • Tests only established understandings and hypotheses. May miss important insights outside of general hypothesis • Relies upon asking the right questions When is the project complete? • When our understanding of the issues are such that we know how the next interviewee will answer questions before we ask them • When sample size reached to deliver results accurate to a per determined margin of error
- 6. Confidential Respondent Profile Gold 17% Silver 44% Bronze 39% Oracle Customers 86% Non-Oracle Customers 14% Oracle vs.Competitor Mix 43 Oracle customers only 43 Oracle customers only All Interviews Database 60% Application & Database 40% Product Mix 40 Oracle customers only, excludes Oracle developers Enterprise 52% Developer 9% General Business 39% Respondent Company Size (Oracle customers) Service Level Mix (Oracle customers) Total of 51 interviews conducted
- 7. Confidential General Business Enterprise Database Applications andDatabase • Micro Media Systems • Industrial Computer • 1-800-BAR-NONE • American Medical Network • Lifeline Systems • Flir Systems • BBS Corp • Cattle Fax • Goodmark Foods • Brocade Communications • Bar Plan Insurance • Barth Electric Company • Charles Stark Draper Laboratories • Gallatin Steel Company • Sperry Marine • MCI • UPS • Binney & Smith • British Telecom • Blue Cross Blue Shield Maine • Goldman Sachs • Hibernia Management & Development • Novartis • Axciom Corporation • Grummann Aerospace • Los Angeles Times-Mirror • American Stores • American Automobile Association • Russell Stover Candies • Time, Inc. • Capital Metro • Attorney’s Liability Assurance Society • Billing Concepts • Great Lakes Pulp & Fiber • Nova Scotia Power • Astra Merck • NAV Canada • BMC Software • NAV Canada • MNBA American Bank • US Steel • BMI • Biogen • Health Canada • GreatWest Life Annuity • Acclaim Entertainment • du Pont Respondent Profile - breakdown by segment Tools /Developers • InfoPower • Computer Systems • Bicron • IT Financial Oracle Customers Competitor Customers
- 8. Confidential Deliverables • Executive Presentation •Written Report • Interview Journal
- 9. Confidential Roadmap Introduction & MethodologyIntroduction& Methodology High Level Findings Conclusions & Recommendations Detailed Findings
- 10. Confidential What did welearn? • Oracle is not meeting customer expectations for service and support quality - customers’ high expectations lead to disappointments when not fulfilled • There is a clear opportunity to sell additional support services • Existing segmentation model doesn’t work - Enterprise versus General Business and Database versus Application & Database are poor indicators of Oracle support needs • A better way - Viewing customer needs together with customer capabilities is a better way to determine additional support services requirements Let’s take a closer look at segmentation
- 11. Confidential Current segmentation modelis a poor predictor of support services needs There is very little correlation between current segments (products and company size) and customer support bundle requirements • Every time we believed that we had found the ‘right’ bundle of services based upon company size or product, we found almost as many companies within that segment that needed a completely different bundle of support services • It is difficult to determine how much outside Oracle help a company will need based upon either the size of the company or the Oracle products the company is using • Segmenting by company size takes us only a part of the way there. It can be used to determine which customer probably wants more from Oracle Support Services but it cannot be used to determine what that ‘more’ looks like - which bundle is best suited for that customer • Segmenting by product tells us that Oracle’s application & database customers have greater expectations from support services and are less satisfied with their experiences than Oracle database only customers. However this segmentation model sheds little light on what other services they need
- 12. Confidential Proposed segmentation model- based upon customer needs • Partnership Buyer • looking for strategic help • wanting business and industry consulting • Solution Buyer • looking for project-based technical help • wanting to offload some responsibility • Expertise Augmentation • looking for task specific technical help • wanting help in between ‘expensive’ consulting and telephone support • Insurance Buyer • looking for the least help • wanting to become more self-reliant More Oracle Help Needed We characterized four buyer types as follows: There is a high correlation between customer needs/customer capabilities and their bundle requirements Company’s Oracle Needs Company’s Internal Oracle Capabilities Oracle Help Needed Bundle Requirements
- 13. Confidential Lets take acloser look at the four buyer types Factors of Comparison Insurance Buyer Expertise Augmentation Buyer Solution Buyer Partnership Buyer High level • Most self-sufficient • Utilizes Oracle Support Services exclusively to answer specific technical questions that individual hasn’t been able to solve on his/her own • Looking for help that falls between simple technical support and “expensive” onsite consulting • Looking for a quick technical ‘shot in the arm’ • Willing to pay the price to have consultants on site all of the time • Consultants provide a full array of services • Looking • Looking for strategic business and industry knowledge • Expecting to succeed or fail in part based upon its decision to go with Oracle Internal Oracle capabilities • Has the technical breadth, depth and experience to support themselves most of the time • Has small gap between needs and capabilities • Has larger gap between needs and capabilities • Looking for lots of outside help • May or may not have gaps between needs and capabilities • Looking for lots of outside help Control • Desires to maintain tight control • Takes ownership of problems • Unwilling to give up control • Wants to have own staff actively involved/kept informed. • Wants knowledge to stay with company after outside help leaves • Often willing to give up control of specific project and or application • Looks to offload some responsibility • May give reins entirely to consultant • Doesn’t want to be ‘the guy’ in all areas • Unwilling to give up control, • Looks for partner. Self-sufficiency • Most self sufficient • Calls technical support infrequently • Most active user of MetaLink • Keeps abreast of new releases and patch information • Checks MetaLink before calling support • Checks TAR status on the WEB • Participates in user groups • Less self-sufficient • Call support more frequently • Less active user of MetaLink • Less self-sufficient • Call support more frequently • Onsite consultants often call support on company’s behalf • Less active user of MetaLink • Less self-sufficient • Call support more frequently • Less active user of MetaLink Environment • Lots of safety nets • Lots of test servers • Mission critical and non-mission critical • Has fewer safety nets • May be without test servers • Risks huge costs if system goes down • Probably running mission critical database • Has fewer safety nets • May be without test servers • Risks huge costs if system goes down • Probably running mission critical database • Risk huge costs if system goes down • Probably running mission critical database Outside consulting help • May have consultants for DBA. • These consultants used as virtual extensions of staff - “Replaceable staff” • Does not desire to have Oracle come onsite • Open to “consultant on demand” • Has likely used outside. Consultants on a case-by-case basis • Needs extends beyond task quick task specific help • May have outside consultants on staff • Uses high value, high cost consultants • May or may not have outside consultants on staff Type of help • Little additional help desired • Some would drop Bronze support for upgrades only were that an option • Looks for technical help from Oracle • Desires task specific help • Augments expertise with outside services for tasks and projects • Looks for help with specific problems at specific times • Looks for technical help from Oracle • Looks for help on a project basis • Not looking for help with a piece of the solution. Instead wants help with the whole thing • “Build me a solution” • Looks for strategic help from Oracle • Looks for help with how to best use Oracle to run their business. Timing of help • Not applicable • Near-term • Medium Term • Long-term Example of question customer asks • “Where should I go to find out about the status of a TAR?” • “We are about to do an upgrade of SAP. Does Oracle offer a have experts to help us immediately should we run into trouble?” • My databases is growing very quickly, what can you suggest? • How do I consolidate these servers? • What are companies in industries like me doing? • What data recovery solution should I go with? Value to Oracle Support Services • Oracle will get better return on selling new services to other buyer types first • Least taxing of Oracles Support Services • Best opportunity for Oracle to sell additional, fixed price, short-term support services • Best opportunity to sell more traditional project-based ‘consulting services’ • Members of the ‘Oracle Family’ • Close relationship • First shot at fulfilling needs for new products and services
- 14. Confidential Examples of thefour buyer types Insurance Buyers want little help beyond what they get today “We do not call Oracle support often. We are pretty much self-sufficient over here. We do not want a more proactive Oracle. We want our calls to support to be short and sweet.” Scott Withers, Blue Shield Blue Cross Maine Expertise Augmentation Buyers want help with specific problems “I would have liked Oracle to have been more involved with installation & upgrade….I would have liked to have been able to call into a “Install group” or an “Upgrade group” — people who would know ahead of time the types of problems that I will likely run into.” Richard Dahlstedt, Acclaim Entertainment “We want ‘consultants on demand’ to help us at particular planned times. For example, we recently upgraded our SAP application to the top flight SAP and we wanted experts from Oracle and then SAP onsite to be there in case things went wrong. We want that Oracle person there to avoid a crisis and we are willing to pay for that.” Allan Kerley, Hibernia Management & Development Corporation Solution Buyer want help either for a project or on a ongoing basis “We have had Oracle consultants onsite for the past two plus years. They provide a full array of services from developing the application to preparing the system for deployment to optimization to resolving open TARs. We are willing to pay to have them here all of the time.” David Sherwin, US Steel Partnership Buyers want to a have strong, close relationship with Oracle “I would like to better understand their future plans and how their plans will influence what we decide to do. For example, we need help from Oracle to develop a good migration plan from 8.0 to 8i. I want them very involved and aware of our business. I expect Oracle to become accountable for our business. I expect Oracle to help us increase availability and improve performance and dependability.” Tim Donar, Axciom, Corporation
- 15. Confidential Expertise Augmentation 30% Solution 14% Partnership 14% Insurance 42% 43 Oracle customers BuyerTypes Segment Unfulfilled Need Fulfilled Need Total Insurance Buyer 4 14 18 Expertise Augmentation Buyer 7 4 11 Solution Buyer 4 4 8 Partnership Buyer 6 0 6 Annual monitoring is important because customers’ needs do shift How did the study participants break out against the new segments? Numbers represent the distribution of 43 responses Half of respondents need more help with their Oracle products A big opportunity exists for Oracle to sell additional support services
- 16. Confidential How does eachstudy participants breakout against the new segments? Enterprise Database only Enterprise Application & Database General Business Database only General Business Application & Database Developer Insurance Buyer • Novartis • Sperry Marine • British Telecom • Blue Cross / Blue Shield of Maine • BMC Software • MBNA • Biogen • Charles Stark Draper Laboratories • 1-800-Bar None • Micro Media Systems • BBS Corporation • Broacade Communications • Bar Plan Insurance • Barth Electric • Attorney’s Liability Assurance Society • InfoPower • Enesco • Bicron Expertise Augmentation Buyer • Grumman Aerospace Corporation • Hibernia Management & Development corporation • Goldman Sachs • Astra Merck • Acclaim Entertainment • Industrial Computer • Cattlefax • Goodmark Foods • Lifeline Systems • Great Lakes Pulp & Fiber • Billing Concepts • Capital Metro • Computer Systems Solution Buyer • Health Canada • Binney & Smith • NAV Canada • US Steel • BMI • Flir Systems Partnership Buyer • MCI • Axciom Corporation • UPS • Greatwest Life Annuity • Nova Scotia Power Corporation • American Medical Network Existing Segmentation Model SuggestedSegmentationModel It is difficult to determine the amount and type of support a customer desires using the existing segmentation model It is difficult to determine the amount and type of support a customer desires using the existing segmentation model
- 17. Confidential Best support practicesare relative to buyer type Best Practices Insurance Buyer Expertise Augmentation Buyer Solution Buyer Partnership Buyer Rich Web site High High Medium High Self-help tools High Medium Low Medium Strong user group community High Medium Low Medium Seamless support High High High High De-escalation of telephone support High Medium Low Medium Annual reviews Low High High High Cursory needs analysis Low High Medium Medium Detailed needs analysis Low Low High High Active customer management Low Medium Medium High Onsite presence Low Medium High High Oracle customer alignment Low Low Low High Multiple vendor leader Low Low High High Business expertise Low Low Medium High Industry expertise Low Low Medium High Importance of support practices to buyer type Less work Lots of work
- 18. Confidential What bundle ofservices should Oracle sell to its customers? Bundle Insurance Buyer Expertise Augmentation Buyer Solution Buyer Partnership Buyer Oracle Metals Bronze High High Low Low Silver High High High High Gold Low High High High Solution Support Centers Low Low Low High Additional Support Services Offerings Support Web Site High High Medium High Education of Offerings Medium High High High Annual Remote Reviews Medium High Low Low Annual Onsite Reviews Low Low High High Cursory Needs Analysis Low High Medium Medium Detailed Needs Analysis Low Low High High Remote Personalized Support Low High Low Low Onsite Personalized Support Low High High High Installation Support Low High Low Medium Upgrade Support Low High Low Medium Performance Tuning Low High Medium Medium Remote DBA Low Medium High Medium Best Practices Roadmap Low Low Medium High Daily Operations Manager Low Low High Low Project-based Consulting Low Low High High This segmentation model can predict which bundle of services a customer is likely to want from Oracle This segmentation model can predict which bundle of services a customer is likely to want from Oracle
- 19. Confidential What to askto determine what buyer type a customer belong to? 1) How frequently does your staff call Oracle technical support? ¨ Never ¨ Rarely ¨ Occasionally ¨ Frequently 2) Besides telephone-based technical support, what additional type of assistance might you be interested in receiving from the Oracle Support Services Division? (check all that apply) ¨ None ¨ Technical expertise (onsite staffing, contracting services i.e. We know what new product we want to install, help us install it most effectively.) ¨ Business expertise (i.e. We need help with strategic planning for business growth.) ¨ Industry expertise (i.e. We are a financial services company, help us figure out how to gain a competitive advantage using Oracle.) 3) Would you want Oracle to come onsite as an additional type of assistance? ¨ No, it’s very unlikely ¨ Maybe for task specific situations (example: for Technical Support for a product upgrade) ¨ Yes, frequently 4) When do you use outside technical consultants? ¨ Never ¨ Staff augmentation ¨ Task based ¨ Project based ¨ Turn-key solutions 5) Are you currently using Oracle consultants? ¨ No ¨ Yes 6) If you could choose, who would you want to own the responsibility for the operations of your Oracle database and/or Oracle applications? ¨ 100% In house ¨ 10% Outsourced ¨ 50% Outsourced ¨ 75% Outsourced ¨ 100% Outsourced 7) Are Oracle products mission critical to your business? ¨ No ¨ Yes 8) Do you have any Test Servers available or do you upgrade directly on to production machines? ¨ Test servers first ¨ Production machines only 9) Are you anticipating your Oracle Support needs changing over the next 6 months? ¨ No ¨ Yes, because:
- 20. Confidential Roadmap Introduction & MethodologyIntroduction& Methodology High Level Findings Conclusions & Recommendations Detailed Findings
- 21. Confidential Where is Oracleexceeding expectations? • Responsiveness to mission critical problems • Web site - MetaLink • Skill level of Oracle consultants • Reputation of Oracle’s database products • Oracle support representatives when onsite (FSRs and Technical personnel) • Australian technical phone support Oracle receives high praises from its customers for:
- 22. Confidential Weak Strong Strong Weak Perceived Product Quality Perceived Service& Support Quality SAP Peoplesoft Microsoft Oracle database IBM BAAN JD Edwards Dell Informix Oracle’s database product quality is perceived to be higher than its service & support quality Oracle application Sun Customer’s perceptions
- 23.
- 24. Confidential Inconsistent technical support Lengthyresolution time Missing information about new services and products No one managing relationship Basic information about customers is not being captured Continual Oracle Reorganization Exasperating contract renewal process Continual TAR status checking Eventual level of service Technical support response design Confusing distribution of documentation Weak Oracle support of user groups De-supporting versions too quickly Let’s take a closer look at these key issues Missing notification of upgrades and patches Why do I learn that there is an important fix only after I call tech support with the problem? Why do I have to talk to multiple people, many who lack the skills to support me before I get help? Why does it take so long to get Oracle to figure out my problem? They must have seen this problem before. Why is there no one keeping me informed about what Oracle is doing? I shouldn’t have to read the rags to find out. I only see someone from Oracle here when they are trying to sell me something. What about finding out about my needs first? I do not expect to have to give all of my contact and account information each time I call in for technical support. It seems there is always a different group or Oracle person calling on me What is wrong with those people? They get everything wrong - name, license, address,and account size My staff spends half of their time checking on outstanding TARs. Why can’t Oracle follow up with us? My problems don’t get answered in a timely manner. Why is there no “Install” group? If I do not know specifically what my problem is, it is tough to get help from Oracle. Why does all mail come through me without the name of the person who requested the information on it? Why doesn’t Oracle help match me up with users like myself? Why is Oracle forcing us to make changes faster than we would like? Frequentlythatissueiscited
- 25. Confidential Send out targete-mail based upon customer profile Inconsistent technical support Lengthy resolution time Missing information about new services and products No one managing relationship Basic information about customers is not being captured Continual Oracle Reorganization Exasperating contract renewal process Continual TAR status checking Eventual Level of service Technical support response design Confusing distribution of documentation Weak Oracle support of user groups De-supporting versions too quickly Action Items- How Oracle can close the gaps Missing notification of upgrades and patches No action required-very few missed expectations here Capture the name of the person who requested information Market user groups - help bring like people together No action required as few people raised this concern Market expert offerings - these people want more than tech support but don’t know about the Expert offerings Be proactive, many don’t know they can check status on the Web Improve training and develop self-monitoring program Make invisible to customer Make it universally accessible within Oracle Have more contact with customer than just annual service renewals Manage expectations, let customers know why it is taking time Reduce escalation by tracking customer skill levels Let your customers know about what might be important to them
- 26. Confidential • Basic Informationabout the customer is not being captured Customers are amazed that they are being asked to supply basic information in addition to name and CSI number such as telephone number, fax number, e-mail address, mailing address each time the call support. Customers are dismayed by how little Oracle seems to use its own database technology - solution. Customers expect Oracle to know what Oracle products their company has purchased. • Exasperating contract renewal process Customers are exasperated with the process. They describe numerous examples of incorrect licenses, incorrect names, misspelled names, wrong sum, and wrong dates. • Confusing distribution of documentation Customers complain that they receive Oracle material with no names associated with it. They often have no idea which DBA within their company requested the information. Fundamental Expected from Oracle Best Practices Fundamental Gaps Customers are surprised that they encounter these problems. They consider solving these problems as fundamental. Customers are surprised that they encounter these problems. They consider solving these problems as fundamental.
- 27. Confidential • Customer AccountInformation Customers expect Oracle to capture information about their staffs. Who is procurement, who is management, who is database administration, who is the applications administrator. • Missing notification of upgrades and patches Customers resent being told that a solution exists only after calling Oracle with a problem. • Missing information about new products and services Customers feel they are out of the loop. They would like to be kept informed about new products and services that relate to their existing infrastructure. • Continual TAR status checking Customers fear their TAR would be abandoned without their continuous follow-up. They want Oracle to proactively provide status updates.Fundamental Expected from Oracle Best Practices Gaps in Oracle Support Service offerings that customers expect Oracle to have solved Customers view Oracle as a leading technology provider with one of the best- of-kind products. They set the bar for support services just as high. Customers view Oracle as a leading technology provider with one of the best- of-kind products. They set the bar for support services just as high. Best practices depend on Buyer Type
- 28. Confidential Based on: 19 GeneralBusiness Interviews 22 Enterprise Interviews General Business Enterprise General Profile • Have history with Oracle • Have relationship with other vendors compar- able to Oracle • More onsite expertise General Profile • Likely to have less history with Oracle • May not have relationships with other vendors of comparable size How do they differ from General business? • More adamant about wanting to be kept better informed • More likely to expect Oracle to have fundamental & “expected from Oracle” problems resolved How do they differ from Enterprise? • Generally have lower expectation for support service because a) they know they are small b) no other vendor to compare with Oracle • More likely to want Oracle to help with site performance tuning How do Enterprise and General Business Customers Differ? Enterprise customer expectations are shaped by Oracle’s position and their experiences with other vendors. Enterprise customers are less forgiving of what they view as Oracle’s poor customer relationship management than are GB customers. Enterprise customers are less forgiving of what they view as Oracle’s poor customer relationship management than are GB customers. 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 No one managing relationship/account Account Information not being captured Oracle continues to reorganize Percentageofrespondantspersegment Enterprise General Business
- 29. Confidential Technical Support • Withfew exceptions, not developing individual relationships with customers • Customers do not expect them to manage this relationship Contract Renewals • Often the only Oracle representative a customer hears from over the course of a year or two • Customers complain of ineptitude Respondents felt that no one is managing the relationship from Oracle’s side Product Sales • Only visits when trying to make a sale • Customers complain that they don’t hear customer’s needs • Not there for account management Consulting • When on site, clearly the liaison between the company and Oracle • However, when contract is over, relationship between Oracle and customer dissolves Field Service Representatives • Not enough of them • Only one of the 43 Oracle customers interviewed had ever met an FSR • When customers get called by Oracle, the calls come from many different people from different divisions within Oracle. • More critical for enterprise than general business, but still important to both groups. • When customers get called by Oracle, the calls come from many different people from different divisions within Oracle. • More critical for enterprise than general business, but still important to both groups.
- 30. Confidential Oracle applications &database customers are less satisfied and less patient with technical support than database customers. Database Applications & Database General Profile • Either less demanding or believe that they are being well served or both Problems they see with Oracle Support Services • Fewer problems raised • More satisfied that Oracle’s technical support itself is functioning as it should be General Profile • Chose Oracle for both applications and databases on the belief that there would be fewer problems Problems they see with Oracle Support Services • Are less satisfied than database only • Less patient/ i.e., more frustrated when things don’t work well • Partly due to product immaturity application Based on: 15 Database interviews 24 Application & database interviews 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 Inconsistenttech support Lengthy resolution tim es D esign ofsupportstructure C onfusing distribution ofdocum entation M anaging TAR 's Percentageofrespondentsinsegment Database Application & Database
- 31. Confidential 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 N otification ofupgrades and patchesAnnualreview s BestPractices/R oadm apIndustry expertise U nderstand m y business Percentageofrespodentsinsegment Database Application & Database Therewas no significant difference between how the two groups within the segment responded to questions related to greater Oracle involvement. There was no significant difference between how the two groups within the segment responded to questions related to greater Oracle involvement. 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 N otification ofupgrades and patches Annualreview s BestPractices/R oadm apIndustry expertise U nderstand m y business PercentageofRespondentsinSegment Enterprise General Business Where do you want more from Oracle support services? (application & database versus database only) Where do you want more from Oracle support services? (Enterprise versus General Business) Segmentation by size and or product does not serve as a good predictor of where a customer would want more help from Oracle. Contrasting customer support services desires by company size is slightly more telling than by product type. For the issues customers care about most, the two groups responded very similarly. Contrasting customer support services desires by company size is slightly more telling than by product type. For the issues customers care about most, the two groups responded very similarly.
- 32. Confidential Lack of awarenessof Oracle’s support capabilities Customers don’t know about Oracle's services outside of the metals and MetaLink • Only 2 out of 43 Oracle customers interviewed were familiar with other Oracle Support Services offerings (OracleExpertise & OracleLifecycle)
- 33. Confidential Canadian customers appearto be getting better support than US customers • Respondents appear to know who to call for help (by name). • They are better at navigating the Oracle organization to get what they need. • Oracle Canada appears to be more organizationally stable. • Canadian customers believe that Oracle’s Canadian Web site is not as current as its U.S. site. This adds to their perception that support is better in the U.S. than in Canada. (Based upon interviews with four Canadian customers) Ironically, Canadian customers believe that their US counterparts get better support than they are getting Ironically, Canadian customers believe that their US counterparts get better support than they are getting
- 34. Confidential Roadmap Introduction & MethodologyIntroduction& Methodology High Level Findings Conclusions & Recommendations Detailed Findings
- 35. Confidential Recommendation for OracleSupport Services segmenting by buyer types more effectively matches customers with support bundles. Buyer types that emerged were (1) insurance, (2) expertise augmentation, (3) solution and (4) partnership. Customers Aren’t Aware of Support Services Outside of the Metals Customers Aren’t Aware of Support Services Outside of the Metals Big Opportunity Exists to Sell New Support Services Big Opportunity Exists to Sell New Support Services Current Segmentation Model Doesn’t Work for Support Services Current Segmentation Model Doesn’t Work for Support Services Conclusions and Recommendations Customer Have High Expectations that Feel Oracle is Not Meeting Customer Have High Expectations that Feel Oracle is Not Meeting
- 36. Confidential Segmentation Recommendations for OracleSupport Services • Step 1 - Fix the support and services fundamentals that customers expect from all companies. Fundamentals include (1)accurate customer registration information, (2) efficient contract renewal, and (3) getting the right information into the right hands. • Step 2 - Substantiate Oracle’s advantageous positioning by delivering what customers expect from Oracle Support Services. This includes (1)detailed knowledge of the customer account, (2) notification of new patches and upgrades, (3) new product and service information, and (4) a proactive TAR reporting system. • Oracle Customer Service needs to show up immediately after the license sale and annually thereafter. • Implement a CRM capability that will insulate customers from Oracle’s structural and personnel changes. • Advance and promote Expert Packages and Expert Online (remote dba) • Segment by buyer types to more effectively match customers to support bundles. Buyer types that emerged were (1) insurance, (2) expertise augmentation, (3) solution and (4) partnership. • Customers had difficulty separating onsite Support Services from Consulting. • Most respondents were unaware of any Oracle services beyond the Metals and MetaLink. • Many respondents believe that Oracle’s ability to deliver satisfaction has been hurt by Oracle’s organizational turbulence • Customers had difficulty separating onsite Support Services from Consulting. • Most respondents were unaware of any Oracle services beyond the Metals and MetaLink. • Many respondents believe that Oracle’s ability to deliver satisfaction has been hurt by Oracle’s organizational turbulence • There is a strong opportunity for Oracle to sell additional support services to its customers • Customers want help from Oracle beyond technical telephone support • Buyer types are a good indicator of which bundles customer will prize. • There is a strong opportunity for Oracle to sell additional support services to its customers • Customers want help from Oracle beyond technical telephone support • Buyer types are a good indicator of which bundles customer will prize. • Current segmentation (Enterprise vs. General Business & Database vs. application) does not predict how much Oracle help they will need from support services or the most suitable service bundle. • Oracle must learn more about its customers’ capabilities in order to match companies with bundles • Enterprise customers expressed higher dissatisfaction with Oracle’s CRM capabilities than did General Business. • Customers using both apps and database are more demanding. • Current segmentation (Enterprise vs. General Business & Database vs. application) does not predict how much Oracle help they will need from support services or the most suitable service bundle. • Oracle must learn more about its customers’ capabilities in order to match companies with bundles • Enterprise customers expressed higher dissatisfaction with Oracle’s CRM capabilities than did General Business. • Customers using both apps and database are more demanding. Taking a closer look at conclusions and recommendations • Oracle’s excellent positioning is both a blessing and a curse because customers’ high expectations lead to disappointment when not fulfilled. • Customers are most frustrated by issues that they expect a company like Oracle to have solved. • Oracle is viewed as absent at critical stages in the relationship, especially to enterprise customers. Customers expect much more contact with Oracle Support Services than they currently receive. • Oracle’s excellent positioning is both a blessing and a curse because customers’ high expectations lead to disappointment when not fulfilled. • Customers are most frustrated by issues that they expect a company like Oracle to have solved. • Oracle is viewed as absent at critical stages in the relationship, especially to enterprise customers. Customers expect much more contact with Oracle Support Services than they currently receive. Customers’ Knowledge of Services Opportunity to bundle services Customer Expectations
- 37. Confidential Next Steps -Selling additional services to Oracle customers based upon buyer type segmentation ¬ Develop survey questionnaire to be used to segment existing customer base ¬ Develop response analysis model to convert survey responses into buyer types ¬ Distribute survey questionnaire by E-mail, fax or Web to categorize Oracle customers by buyer type • Customers are willing to share this information with Oracle, especially if they know it will lead to better tailored services for them ¬ Categorize customers by buyer types ¬ Annual monitoring/review will be important because customer needs do shift • New application suite/change in direction • Staff turnover: losing a key individual can change their requirements from being an insurance buyer to being an expertise augmentation buyer ¬ Sell according to buyer type • Insurance buyers – Educate them to better help themselves – Keep informed about new products and services • Expertise Augmentation Buyers – Second detailed survey to determine specific help required – Introduce to expertise offerings • Solution Buyers – Onsite needs analysis – Demonstrate Oracle’s capabilities and strengths • Partnership Buyers – Determine if partnership has value to Oracle – If yes, onsite presence required
- 38.
- 39. Confidential Contact Information Company IndustryName Title Phone # Oracle General Business Customers 1-800-BAR-none Services (loan consolidator) Scott Crouse IT Director (408) 501-1405 American Medical Network Service James Kraugh Senior Manager (407) 679-0304 Attorney’s Liability Assurance Society Service (Legal) Tom Myers (312) 697-6983 Bar Plan Insurance Insurance Tom Burch Director of MIS 314-965-3333 Barth Electric Co. Utilitities Mike Thomas IS Manager 317-924-6226 BBS Consulting Engineers / Waste Management Design Don Fisher IS Manager 614/888-3100 Billing Concepts Telecom Biff Coons UNIX System Administrator / Oracle DBA 210-949-7527 Brocade Communications Fiber Channel Switches Steve Rathod Systems Analyst 408-487-8115 Capital Metro Transportation (government) Rob Turner Manager of IS (303) 694-0333 Cattlefax Financial Dave Robson/Ross Simpson Project Leader/MIS Manager (303) 694-0333 Charles Stark Draper Laboratories R&D Steve Sledjeski Senior Manager (617) 258-2754 Flir Systems Manufacturer: Imaging Systems George Lester Senior Systems Administrator 503-372-6369 Goodmark Foods Food Manufaacturer Bob Anderson Systems and Programming Manager 919-80-9940 Great Lakes Pulp & Fiber Manufacturing (paper) Jay D’Auria DBA 906-864-9130 Industrial Computer Hi-Tech Keith Hinckle/Mark Lovett Database Administrator/Manager 619-677-0877 Lifeline Systems Personal Emergency Response Mary Bonish / Mike Boligan : Manager Enterprise Data Systems / DBA 617-679-1047 Micro Media Systems Software Developers Jennifer DeYoung Database Manager (605) 357-0400 Oracle Enterprise Customers Acclaim Entertainment Entertainment Richard Dahlstedt Manager of Programming Services and System Administration 516 656-5000 Acxiom Corporation Data warehousing for credit card companies Tim Donar Senior Manager IT (501) 336-1000 Astra Merck Pharmaceuticals Kevin Loney/Steve Rhody Director/Application Manager (610) 695-1000/1363 Binney & Smith Manufacturer (Toys) Jim Brown Manager of Data Operations / Data Resources 610-253-6271 x4433 Biogen Pharmaceuticals Dan Madden Application Manager 617/679-3575 Blue Cross Blue Shield of Maine Healthcare Scott Withers Team Leader Data Services Group 207-822-7613 BMC Software Government agency that has been spun out John Smith Manager (713) 918-8800 British Telecom / MCI Telecom Mike Spak Senior DBA 408-922-6275 Broadcast Music Incorporated (BMI) Entertainment Bob Barone Sr. Vice President Operations / IT 615/401-2000 Goldman Sachs Finance Steve Constantino Vice President 212-902-3194 Greatwest Life Annuity Financial Services Alan Bowden Associate Manager of Systems (303) 689-3064 Grummann Aerospace Manufacturing (Aerospace) Pat Zinn Software Engineer Specialist (407) 752-8421
- 40. Confidential Contact Information Company IndustryName Title Phone # Oracle Enterprise Customers Novartis Chemicals Karen Link/Gretchen Fulner Senior DBA/DBA (336) 632-7723 & (336) 294- 5677 Sperry Marine Marine technology and manufacturing Phil Goodwill Manager IT 804 974-2000 UPS Shipping Rich Clark Senior Database Administrator 502-329-3000 US Steel Manufacturing : David Sherwin Director of the Order Fulfillment Project 412-433-5438 Developers Bicron Corporation Software Developer Joe Kastelei Oracle Administrator (consultant to Bicron and 4 other companies) 440-248-7400 Computer Systems Software Developer Holm Dietz Project Manager 559-431-8100 InfoPower Software Developer Dan Niswander Senior Developer (616) 530-5550 Enesco Software Developer Matt Capuano Lead Designer 407-254-4122 Oracle Employees Oracle Hi-Tech Arnold Espos Product Manager Worldwide Customer Support Services 650-506-5816 Oracle Hi-Tech Faith Velshow Sr. Product Manager 650-506-7000 Oracle Hi-Tech Grant Brigden Manager, Global Support Field Marketing-Canada 650-506-7000 Oracle Hi-Tech Jeanna Fox EMEA Services Marketing Manager +44 (0)1344-860066 Oracle Hi-Tech Kim Boyle Product Manager 650-506-7000 Oracle Hi-Tech Mojdeh Eskandari Senior Director Marketing and Product Management Oracle Support Services 650-506-4856 Oracle Hi-Tech Nate Rhodes Sr. Director, Support Field Marketing 650-506-7000 Oracle Hi-Tech Rebecca Tom Senior Product Manager Oracle Support Services 650-506-4772 Oracle Hi-Tech Robert Pearson Director, Product Management Worldwide Customer Support Services 510-733-9707 Oracle Hi-Tech Scott Gaw Senior Product Manager Oracle Support Services 650-506-0597 Oracle Hi-Tech Shera Mikelson Program Director, OSSs 650-607-0547 Oracle Hi-Tech Steven Donovan Product Management Consultant Oracle Support Services 650-506-0784 Competitor’s Customers General Business - Sybase user migrating to Oracle. Gallatin Steel Company Manufacturing Vernon Harrison 606 567-3139 Enterprise JD Edwards Reference Account American Automotive Association Insurance Dan Johannes Director of Systems Administration 407 444-7000 Enterprise PeopleSoft reference account American Stores Retail Tom Lauritzen Vice President Payroll Services, Technical Project Manager for Changing Technology 602-547-5080 Enterprise IBM BD2 Reference Account E.I. du Pont de Nemours/Computer Selection Corporation Hi-Tech Terry Boyd Manager of Global Computing & Telecommunication Service 302 391 6221 Enterprise Sybase Reference Account Los Angeles Times Mirror Publishing Tom Elsesser Advertising Systems Manager 213-237-3700 Enterprise Baan Reference Account Russell Stover Candies Consumer Goods Manufacturing Robert Maach VP Operations 816-855-2293 Enterprise PeopleSoft reference account Time, Inc Publishing Leslie Schlesinger Assistant Director, Employee Systems 212-522-2953 Developer Bankers Trust/IT Financial Finance Terry Smith Product Manager 212 250-9282