Oracle iLearning Oracle's Learning Management System James Lundy, Gartner Group November 13, 2002

Oracle iLearningOracle's Learning Management System

James Lundy, Gartner Group

November 13, 2002

Agenda

• Oracle iLearning • Product Evolution, Market, and Adoption• Product Messaging• Customer Data• Customer Initiatives and Demonstrations• Customer Reference Stories• Development Strategy and Future Plans

Discussion Items Oracle University Update

Oracle iLearningProduct Evolution, Market, and Adoption

Scott EwartDirector, Oracle iLearning Product Management

Oracle iLearning Product Evolution

Oracle Confidential

020406080

100120140160180200

1995 1996 1997 1998 1999 2000 2001 2002

Cu

stom

ers

OLA Service OLA Product iLearning

As of Aug 2002

3.0.1OU Live

3.0.2Assessment

4.0Installed

HR, Resource Mgmt

4.1HP,AIX,Linux

Current Market Picture for Oracle iLearning We are seeing:

– Increase in enterprise and larger deals– Decrease in LMS niche players in

competitive situations– Increase in noise from other ERP

vendors

The landscape is changing…

The Current Product Picture

Version 4.1 – Enterprise LMS with all standard features– Highly scalable (hosted or installed)– Used to consolidate corporate training initiatives

Version 4.2 December Release Date – Web Services for enhanced integration– Advanced Business Intelligence capabilities– Other features and functionality

Continued commitment and growth with over 150 customers

Oracle iLearning Adoption

Attempts Per Month

050000

100000150000

200000250000

300000350000

400000450000

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Oracle iLearning Adoption

Cumulative RCOs Per Month (all)

020000400006000080000

100000120000140000160000180000

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RC

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RCOs (all)

Oracle iLearning AdoptionAttempts Per Month: All vs. Oracle University

050000

100000150000200000250000300000350000400000450000

May

-00

Jun-

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Aug

-00

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-00

Oct

-00

Nov

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To

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Attempts (All)

Attempts (OU)

Oracle iLearning AdoptionTest Attempts Per Month: All vs OLN

0

10000

20000

30000

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May

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Test Attempts (All)

Test Attempts (OLN)

New Activity

New RCOs Last Week

599

413

285

235136132109103

10179

1025

General Physics Corporation

Oracle Learning Network

Conformance Testing Lab

KLM

Germany

RADACT

Tri-Care Online

NSS

thailand

Interactive Knowledge Systems Pte Ltd

Other

New Activity

New Offerings Last Week

655

4039

261717161513

12

11

258

General Physics Corporation

Oracle Learning Network

McDATA

thailand

GP_Client

General Physics Training

NSS

OLN Korea

KLM

Emerson

Whitbread

Other

Oracle iLearning

Product Messaging

Key Messages

Oracle iLearning addresses critical consolidation requirements:

– Scale gracefully from very small to very large– Easy access from custom web sites and portals– Single system for internal and external training– Distributed, secure self-service access to all functions– Multiple communities, one implementation– Integration with enterprise applications

Scale GracefullyStart with simple, low cost hosted pilot

Start your pilot in minutes - $5000, 100 learners, 1 year.

Scale GracefullyHandle large numbers of users and content

0

50000

100000

150000

200000

250000

300000

350000

Q32000

Q42000

Q12001

Q22001

Q32001

Q42001

Q12002

Q22002

Q32002

Users and Content on iLearning.oracle.com

361,673

registered learners as of Nov 13, 2002

361,673


171,742

content objects as of Nov 13, 2002

171,742


Scalable, currently over 300,000 learners on a single instance.

Scale GracefullySeamless migration between deployment models

Deployment Shared Hosted @ Oracle (Subscription)

Private Hosted

@ Oracle (License)

Installed

License Fee N/A $30/trainee $30/trainee

Support Fee Included 22%/year 22%/year

Hosting Fee $48/trainee/yr 5%/month N/A

Minimums 100 trainees $72K Net License 100 trainees

Database Shared Private Private

Key Benefits • Low entry cost• Instant deployment• Zero maintenance• Global content

syndication

• Rapid deployment• Zero maintenance• Customer controls:

•Performance•Reporting

Customer controls:• Performance• Reporting• Security• Integration• Upgrades

Three deployment options, one product.

Scale GracefullyExample: Ingersoll-Rand

Implement one training initiative at a time.

0

1000

2000

3000

4000

5000

6000

7000

8000

May-01

Jun

-01

Jul-01

Au

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-01

Oct-01

No

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Dec-01

Jan-02

Feb

-02

Mar-02

Ap

r-02

May-02

Jun

-02

Jul-02

Au

g-02

Sep

-02

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No

v-02

Users and Content on Ingersoll Rand Site

7,020


7,020


1,399


1,399


(1) Started with IT training initiative


(2) Launched sales training initiative


(3) Company-wide compliance initiative

to be launched by year end



Easy, Custom Access Direct links from custom web sites, portals, e-mail

– Single sign-on from trusted URLs– One click enroll and play– Customizable UI

Drive adoption: take learning to the learners.

Single System for Internal and External Training

Consolidate training for employees, partners, customers

Dynamic profile-driven catalog delivers the right content to the right audience

Access inside or outside the firewall

Self-Service Access for all Functions

Self-service– Learner access– Administration– Scheduling– Content

assembly– Reporting

Consolidated infrastructure reduces cost.Distributed access avoids bureaucratic bottlenecks.

Self-Service Access for all Functions

Flexible, granular permission model

Self-service, yet secure.

Define custom roles and delegate operations across departments,

subsidiaries, franchisees, companies, etc.

Define custom roles and delegate operations across departments,

subsidiaries, franchisees, companies, etc.

Multiple Communities One Implementation

Manage separate learning communities on a common implementation

– Custom branding per community– Efficient content syndication across communities– Ideal for large enterprises and Learning Service

Providers (LSPs)

Aggregate communities at very low cost.

Enterprise Application Integration

Custom integration via XML import/export Pre-built integration for Oracle E-Business Suite

– Order Management– Human Resources

Enterprise Application IntegrationOracle Order Management

Training orders can be automatically pulled from Order

Management. Associated iLearning offerings can be self-service activated by the learner

using the order key.

Training orders can be automatically pulled from Order

Management. Associated iLearning offerings can be self-service activated by the learner

using the order key.

Enterprise Application IntegrationOracle Human Resources

Oracle iLearning Customer Data

Chris PirieVice President, Oracle University

Agenda

Review of Current Customer Profile Go to Market Strategy FY’03 Sales Strategy FY’03

Ramp Rate on Closed Deals

0

10

20

30

40

50

60

70

80

90

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03

iLearning Deals Closed (Total 179)

Ramp Rate on Paid Learners

0100000

200000300000

400000

500000600000

700000

800000900000

Q1 02 Q2 02 Q3 02 Q4 02 Q1 03

Cumulative Paid Learners

Series1

Total Deals by Geography

Total Deals by Geography

70

636

30

37

US

Can

LAD

EMEA

APAC

Total Deals Including Paid Pilots (< 1000 seats) = 179

Regional Breakout of Seats

Total Paid Learners By Geography

196,667

16,529

7,063

563,363

51,313

US

Can

LAD

EMEA

APAC

Customer Size Profiles

Largest Customer Profiles (Top 125)

57

33

22

13

Over 1,000 Seats

Over 2,000 Seats

Over 5,000 Seats

Over 10,000 Seats

Total Deals Over 1000 Seats = 125

Partial Customer ListRegion Customer Seats

US American General Corporation 85,000

EMEA Whitbread Group, PLC 52,000

EMEA RailTrack PLC 28,000

US McDonalds Corporation 15,264

EMEA Kingston Upon Hull City Council 14,535

US Global Knowledge 13,700

US Diebold 10,000

APAC China People’s Bank 9,375

EMEA Ministry of National Economy 7,500

EMEA Churchill Group 7,300

EMEA Virgin Atlantic Airways 6,900

EMEA Apokjeden 6,800

APAC People’s Bank of China Clearance Center 6,253

US Brickman Group LTD 5,000

APAC Diebold 5,000

US Mattel Inc. 4,160

US McDATA 4,000

EMEA HBOS PLC 4,000

US Verisign, Inc. 3,500

Key Verticals

Financial Services Churchill Group, ANZ Bank of Australia, Peoples Bank of China, Halifax Bank of Scotland, Raiffeisen Bank, JP Morgan Chase, AIC, GE Capital

Manufacturing Ingersoll-Rand, Amplifon, Zhejiang Mobile, Picvue Electronics, Railtrack PLC, Canon, SCIOS, McDATA

Government/Public Sector Ministry of Economics Oman, Maryland Public Safety, California Transit Authority, Gov’t of Ontario, State of Georgia, Yorkshire Forward, Hull City Council

LSP’s Global Knowledge, General Physics, Oracle University, Karta, Training Times, Medsn, Premier IT

Travel and Aviation (Emerging)

Virgin Atlantic Airlines, AEROChain (Embraer)

Hosted versus Installed Implementations

Implementation Mode

29%

1%70%

Shared InstanceHosted

Single InstanceHosted

Installed

Sample of Repeat Purchase Customers

Customer Name Initial Purchase Total Additional

McDonalds Corp 500 15,000

Apokjeden 7,000 1,000

Raiffeisenbank 600 1,000

Amplifon 700 1,000

General Physics 148 1,500

Diebold 10,000 5,000

Ingersoll-Rand 400 8,000

Karta 1,000 2,000

Sample of Organic Growth - Initiatives Based Approach to

Online Learning

0

1000

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3000

4000

5000

6000

7000

8000

May-01

Jun

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Dec-01

Jan-02

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Ap

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Oct-02

No

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Users and Content on Ingersoll Rand Site

7,020

registered learners as of Aug 31, 2002

1,399

content objects as of Aug 31, 2002









Oracle iLearning and the E-Business Suite

Integrated vs Stand Alone

11%

89%

Integrated eBS

Stand Alone

Sales Channels

EMEA AP

AMER JP

•48 HR eBusiness Suite Sales Specialists

• 000’s E-Business Suite Account Managers

• 3 Resellers

•40 Oracle iLearning Sales Specialists

Sales Channels : Oracle iLearning Specialists

EMEA AP

AMER JP

•US/Canada

•7 Sales, 3 PreSales

•LAD


•Asia Pacific


•EMEA


•Japan


Development Team

14 Product Managers/Business Dev Mangers

20 Oracle

iLearning Developers

General Oracle Development Resources

Platform Porting

Translation

Testing and QA

Development Tools

Database and Application Server Platform

Go to Market Focus for FY’03

Oracle is a database company right? Sales Specialist Coverage Referenceable Customers Press Release and Features Analysts Partnering

Summary

Rapid growth over five quarters to 150+ customers

Over 800,000 paid learner seats in 5 quarters

Majority of customers stand alone

The number of customers seeking integration with E-Business Suite increasing

Good balance of hosted versus installed in customer base

Established pattern of steady planned growth in key accounts

Keen focus on sales channels and establishing referenceable customers

Oracle iLearning

Customer Initiatives & Product Demonstration

Louise BarnfieldProduct Manager, Oracle iLearning

Demonstration

Oracle iLearning

Customer References

Scott EwartDirector, Oracle iLearning Product Management

Sample Customers

Initiative Implementation Customer Name

Employee Training Hosted Ingersoll-Rand

Employee Training Installed Reuters

Customer Training Hosted Oracle University

Customer Training Installed (@ Oracle) Global Knowledge

Learning Service Provider

Hosted General Physics

E-Business Integration Hosted McDATA

McDATA

The Problem: – Needed to manage and track courses and certification programs

to capitalize on its market leadership for storage area networks (SAN’s)

Solution: – Oracle iLearning and Oracle Training Administration to manage

online training for employees, customers, and partners, and instructor led training for employees

The Result: – Increased ROI as internal and external training is delivered using

a single environment– Easy management and tracking of participant course attempts

and certifications

Amplifon

The Problem: – Critical time to market for latest product and needed cost-

effective means to education the sales force for successful launch

Solution: – Oracle iLearning to provide training to 700 sales team members

The Result: – Reduced costs by outsourcing LMS deployment and

implementation– Reduced training costs by eliminating travel and expenses

associated with centralized classroom training

Ingersoll-Rand

The Problem: – Needed LMS to meet several corporate training initiatives,

including compliance requirements, technology training, and effective sales team training

Solution: – Roll out Oracle iLearning to initial base of 400 learners, gradually

increasing to 20,000 learners and the creation of IR University

The Result: – Reduced corporate risk by providing compliance training for all

employees– Reduced cost of technology training by establishing enterprise-

wide pricing and access to titles

General Physics

The Problem: – Difficulties sending CBT upgrades to customers as well as

dealing with operating system compatibility problems

Solution: – Oracle iLearning (hosted) allowing a central repository for

content that can be easily disbursed to customer base

The Result: – Expands ability to deliver over 1,400 technical training lessons to

energy companies of all sizes– Isolates software updates and maintenance from IT department

using hosted model

Global Knowledge

The Problem: – Needed suitable LMS to allow customers to manage and track

their learning, and to provide support for complete blended learning solutions, as opposed to just selling classes

Solution: – Oracle iLearning provides the LMS functionality to support

blended learning requirements

The Result: – Provides a single infrastructure for blended learning programs– Offers a hosted solution enabling software updates and

maintenance outside of customer’s IT department

Oracle iLearning

Development Strategy and Future Plans

William DwightVice President, Oracle iLearning and Application Development Tools

Oracle iLearning

Discussion

All Participants

Discussion Points

Gartner’s Defined eLearning Suite– Where does the Oracle Solution fit?

What are Oracle’s Challenges Moving Forward Key Messages

– Validation– Ranking in order of importance

Competitive Landscape – Technology Vendors– How do we position ourselves as ERP Vendor?

Oracle University Update

Sophie CarrPrinciple Marketing Manager, Services Marketing

Oracle University: The Business Oracle University: Overview

– eLearning Transformation– Services and Products– The Oracle University Learning Solution– E-Business Suite Training Services– Expanded Oracle Certification Program

Key Messages

Agenda

Oracle University: The Business

Enlarge the Oracle economy Remain an industry leading eLearning

business

An industry leading eBusiness– Trains more than 670,000 students each year– Generated $500 million revenue FY02– Certified 140,000 Oracle Certified Professionals

world-wide– Delivers over 30% of classes online – Maintains 180,000 registered on-line customers

Winner of 2001 Corporate University of the Year Distinguished Performance Award from National Alliance of Business

Oracle University: Overview

The eLearning Transformation

1999 – – Growth -10%; Margins 28%– 100% direct sales– 40 student registration systems

Today– Growth +7%; Margins 47%– 75 % Web sales / telesales– One student registration system (Oracle Training

& Administration)– 30% of classes delivered on-line

“Oracle’s online training is the most definitive and practical way to keep up with oracle’s fast paced technology."

Waldemar Talen, Vice President, Pracific Appication Development Services, Inc.

“Oracle’s online training sessions were very informative and allowed me to learn the ins and outs of oracle

without physically attending an instructor led class. The online training permitted me to receive the training I

needed without taking the time off work”Lois Alston, Consultant, Collective Technologies

What customers are saying…

Key Services and Products

Certification– Oracle Certification Program

Content– Role based Business Suite curriculum

Implementer consultants & project team End Users

– Role based Oracle 9i /9iAS and Tools curriculum DBA Web Administrators Oracle Developers, Java Developers

Products– Tutor & iLearning

contentcustomtracking

iLearning

Oracle TutorOracle UniversityOnline/In Class

assessment

distribution

procedures

iHelp

The Oracle University Learning Solution

contentcustomtracking

Oracle UniversityOnline/In Class

assessment

distribution

procedures

iHelp

Content is the core…

ProjectTeam

End Users

Implementation Consultants & Project Team• Process-based In class/Online learning paths From 32 days to 7 days From $16k to $4k per consultant

End Users/Consultants• Role-based• Process-based• Online• US $149 per user per year

E-Business Suite Training

"Training was one of my biggest worries because of the time constraints of our implementation. The E-Business Suite End User training has been very valuable to us and because we have a 12-month subscription to training content, our users have been able to re-visit materials throughout the project to reinforce their learning.”

– Bruce Charles, Receivables Supervisor, Ingersoll Rand


Oracle Certified Master

Oracle CertifiedProfessional

Oracle Certified Associate

Answering the Demand for more Oracle Professionals

Learn Online, Test Online, Get Started

Hiring Manager Approved Industry BenchmarkEstablished Credibility, Increased Opportunities, Better ProjectsOne Class Attendance Requirement

Reserved for Top Oracle Gurus

Oracle Certified Masters will deliver the highest level of field proven expertise

Practicum exam

Expanded Oracle Certification Program

“When Oracle certifications first started, being certified was optional, but a great plus because so few people were certified. Now I believe certification on Oracle9i is a requirement.”

Eric Ferreira, Director of Technical Training, Computer Consulting Services Corporation


• Instructor Led:

• Self Study:OnlineInClass

Online CDRom

Various Training Methods that offer solutions for busy professionals…

Oracle University: Flexible and Effective

Oracle University: Key Messages

Affordable, quality service through innovation – Successful direct service model

94.6% average instructor satisfaction rating – Passing on eLearning benefits direct to customers

Study anytime, anywhere - 24 X 7 on-line learning Get employees Oracle Certified in as little as 12

weeks Save up to 70% with on-line training and certification

options Accelerate adoption of technology with global training

options

Documents

Oracle iLearning Oracle's Learning Management System James Lundy, Gartner Group November 13, 2002