Oracle Insight - Cloud Events Presentation V5 LinkedIn

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

Ready for the cloud – Developing SaaS ROI and roadmap Ayman K. Eid, Director Customer Strategy and Insight

November, 2015

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |

Where is the Value? What drives Benefits?

How can the value be maximized?

How to estimate the value?


Cloud Implementations Have a Wide Impact

3 3

Source: 2014 KPMG Cloud Survey Report

66%

66%

67%

67%

68%

70%

72%

73%

Replace Legacy Systems

Introduce New Features / Functions

Rapidly Deploy New Solutions

Enhanced Interaction w/ Constituents

Better Integrate Systems

Reduce Costs

Improve Levels of Service Automation

Improve Business Performance

Reported Mobile Cloud Benefits Cloud Implementation Successes

48% 54% 44%

Higher Employee Satisfaction

Increased Productivity

Gained Competitive Advantage


Besides IT Costs, Agility, Business Innovation and User Adoption Are Cloud Specific Benefits Types

4 4

Lower IT Total Cost of Ownership

Agility

Innovation & New Business Models

Enablement

User Adoption

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Agility


Enablement

User Adoption


Total Cost Impact Is Driven by More Than Infrastructure Savings

Source: Oracle Insight analysis

Software Licenses

Maintenance & Support

Implementation & Customization

Infrastructure

Visible SW

Subscription

ON-PREMISE ORACLE CLOUD

Underlying

Upgrades

Training

Apply patches

Upgrade

Downtime

Rewrite customizations

Rewrite Integrations

Performance Tuning Rewrite customizations

Rewrite Integrations $

$

Training

Implementation & Customization

$

$

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Which Explains Why Cloud based Deployments Reduce Substantially the Total Cost of Ownership

Company

Current System

Proposed System

Estimated TCO Benefits 58% first five years

vs. on-premise

Fashion/Homeware Retailer

29% first three

years vs. on-premise

Consulting Organization

32% first five years

vs. on-premise

European Telecom

Consolidated ERP

Oracle Fusion Financials

Source: Oracle Insight Engagements



Agility


Enablement

User Adoption


Longer Decision Cycles, Time to Implement and Time to Adopt Latest Release Limit Agility

2012

2013

2014

2015

2016

Budget/Select

Implement 1.0

Develop 1.0

On Premise Cycle

Develop 2.0

Number of Guest Staying With airbnb Hosts During the Summer

New Business Models Cycle


And With Customer Expectations Rapidly Increasing, Time to Deliver Has Become a Non Available Luxury

10

• Customer needs have grown more sophisticated demanding a tailored servicing anchored in expertise about their problems

• Customers expect providers to help solve their business problems quickly and on the first shot and measure value based on outcomes, not necessarily the lowest price

• Customers have become more experienced with technology, competition and disciplined processes

• Customers are less loyal because they’re wary of being locked into anything

Social | Mobile | Y-gen | Self Discovery | Buying | Learning | Targets | Choice | Value |

Expectation | Information

Who are We Servicing To Today? Expectations of the ‘Empowered Customers’

EMPOWERED CUSTOMERS!

Source: Oracle Insight Analysis


Cloud Solutions Offer a Means for Increasing Business Agility Through Reduced Complexity

11

Business Agility

Agility is enabled by a reduction in business complexity

Harvard Business Review (HBR) studied Business Agility in the Cloud and according to its survey – Business agility leads the list of drivers for adopting

cloud computing, with it the primary reason for pursuing cloud for 32% of respondents

– In addition, the ability to scale up and down in response to variations in business demand (13%)

Cloud enthusiasts are much more likely than others to name business agility as their primary driver (41% vs. 32% of moderates and 18% of the cautious)

Those enthusiasts are more likely to have entered a new market in the past three years (49% compared with 35% of moderates and 36% of cautious) or to have been part of a merger or acquisition (49% vs. 29% and 31%)

Source: Business Agility in the Cloud - HBR

Business Value from Cloud Where are you seeing the greatest business value from your company’s use of Cloud? [select up to three]

Faster rollout of new business initiatives to exploit new opportunities

New ways for employees to work, connect and collaborate

Simplification of internal operations (ex: HR, CRM)

Better delivery of internal resources (ex: Web hosting, storage)

Improved ability to acquire, share, analyze and act on data (including "Big" data)

37%

33%

31%

23%

23%


MakeMyTrip Coped With Growth By Deploying a Service Cloud Platform To Serve All Business Units

Challenge

•47% of India’s online travel bookings and offline services, through call centers, retail outlets, franchised agencies

• Going through M&A activity

• Losing revenue due to customer service cycle time

•Multiple systems and ad-hoc processes for customer service

Benefits

Solution

• Oracle Cloud Service (multiple components)

• Provides agents with a 360-degree view of customer information; enables personalized service, directs leads to appropriate agents;

• Reduced call-handling time by 50%; Increased conversion rate; Easily deploy new services in one week instead of months

• Open architecture ensures seamless integration across channels

• 6 Months deployment time

Agility


Land Registry Cloud Based Capabilities Eliminated Multiple Legacies While Moving Closer to a Digital Platform

Challenge

•British government agency that registers land and property

• 3,984 employees with revenue of US$567 million

•Become customer-centric

•Gain understanding of customer

•Drive a shift to electronic channels in line with UK agenda to move to a digital platform

Benefits

Solution

• Oracle RightNow Dynamic Agent Desktop Cloud Service and Analytics Cloud Service

• Replaced multiple legacy systems with single multichannel system

• 98% customer satisfaction

• Quickly reduced Inquiries received by telephone from 85% to 79%

• Replaced legacy systems for more than 3,000 employees to deliver improved services to distinct customer groups and to organizations

Agility


Lack of Agility Has a Clear Cost for Companies

Longer Time to Value

Under Achievement of

Benefits

Missed Opportunities

Quantifiable Estimate Qualitative



Agility


Enablement

User Adoption


Ongoing Global Factors & Technology Are Driving the Need to Bring Innovation Into Legacy Systems

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Source: Oracle Insight Research

16

GLOBALIZATION

9 Billion Internet Devices

in 2012

50 Billion by 2020

DATA EXPLOSION

90% Created within Last Two Years

50X Growth

by 2020

RISE OF MOBILITY

6 Billion Mobile Subscribers

87% of

World‘s Population Mobile Data

Growing 78% CAGR

SOCIAL IS BUSINESS

Consumers Driving Experience

MODERNIZE TO SURVIVE

Lots of 20 year-old Legacy Applications

26% Post negative comments

86% Now stop doing business

94% pay more for great experience


Human Capital Management is a Back Office Function That Is Heavily Impacted by These Factors Driving SaaS Adoption

17

Source: The 9 Hottest Trends In HR Technology ... And Many Are Disruptive – Josh Bersin; Towers Watson Survey

Need for ‘Systems of Engagement’ rather than ‘Systems of Record’

Mobile as the Platform – ‘Taps’ replacing ‘Clicks’

Use of powerful Talent Analytics for intelligent HR decisions

Social disruption


Social, Collaboration and Mobile Capabilities Are Pervasive Across Many Different Areas

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Human Capital Management Customer Experience Finance

• 8 out of 10 employers have

successfully hired a candidate

through social media

• 93% of recruiters will review the

candidate social profile before

making a hiring decision

• 55% have reconsidered the

candidate

• Companies using enterprise

social collaboration have 2½

times higher Year on Year sales

quota attainment than non-

collaborators

• 74%+ of buyers conduct

research on the internet before

they even contact a company for

the 1st time

• And 57% of these buyers are

going through the buying

process entirely on their own

“It’s about moving information

out of the office and on to the

street. Without the cloud,

mobile would be a difficult-to-

manage platform and very

inflexible.” Otto Kroboth Palmer, Chief

Financial Officer, Grupo Fármacos


Delaware Life Brought Innovation to the Finance Function While Focusing More Resources in Core Business Areas

Challenge

•Life Insurance company with over $1 billion revenue

•After M&A activity needed to unify systems to support finance and procurement

•Centralized core data needed for regulatory and management reporting to support the expansion of insurance product offerings

Benefits

Solution

• Oracle Financials, Procurement and Budgeting Cloud Service

• Consolidated data and expanded visibility across US operations to enable a more timely and accurate view of the company’s financial position, even while running millions of lines of data on a daily basis

• Ensured real-time regulatory and management reporting

• Focused IT resources on core life and annuities insurance business

• Mobile functionality for invoicing, imaging, scanning, approving,…

• Implemented on budget in 6 months

Innovation Agility


How do I Estimate the Value of Innovation? Assess the Impact Modern Technologies Can Bring

Mobility Analytics Social … More



Agility


Enablement

User Adoption


Modern User Interfaces, In Any Device, With Collaboration and Embedded Analytics Drive User Adoption

• 10 percent of tasks that 90 percent of people are doing 90 percent of the time

• Role-base, In Content Business Intelligence at point of decision

• Built-in social and collaboration capabilities

• Push for no training or self training only

• Enabled adaptive and contextual personalization


Full and Fast Adoption of a Cloud Based Recruitment Solution at Acciona

Challenge

• Acciona is a $6 Billion Construction and Infrastructure provider

• Offices across 30 countries and 34,000 employees

• Using an outdated, locally focused recruitment software to manage over 5,000 applications per month

Benefits

Solution

• Global implementation of Oracle Taleo Recruiting Cloud Service

• automated communications with candidates; Providing social integration and assessing candidates social profiles

• 15,000 personalized notifications each month to active candidates

• Application completion rate from 70% to more than 95%

• Achieved full adoption by HR staff in one month

• Deployed in 3 Months

• Reduced recruitment time and costs by 25% and 30%

User Adoption Agility



Agility


Enablement

User Adoption

1. Identify processes with the highest number of users and beneficiaries

2. Assess the value of innovative capabilities

3. Rate the importance of usability for the process

4. Determine what will be required to achieve similar improvements with your

existing solution

5. Evaluate whether the process has a disproportionate impact on infrastructure

costs

6. Consider the real impact of “white spaces” in your digitalization journey

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Based on Key Cloud Differentiators You can Follow a 6 Steps Process to Identify High Value Areas


APPLICATION. PLATFORM. INFRASTRUCTURE.

ORACLE SERVICES: OUR MISSION IS CUSTOMER SUCCESS

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