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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Oracle’s Digital Transformation
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 3
Oracle Corporation
SCALE
• Founded in 1977
• 2nd largest software company in the world
• $38.2 USD in FY2015 revenue**
• 122,000 employees
• #1 in 50 product / industry categories
• $60B+ USD on >100 acquisitions
INNOVATION
• $38.9 USD invested in R&D since 2004
• 34,000 developers and engineers
• 15 million Oracle community developers
• 400,000 customers in 145 countries
ANNUAL R&D INVESTMENT**
$1.3
$1.5
$1.9
$2.1
$2.6
$2.6
$3.1
$4.3
$4.2
$4.5
$5.3
$5.5
FY’ 13
FY’ 12
FY’ 11
FY’ 10
FY’ 09
FY’ 08
FY’ 07
FY’ 06
FY’ 05
FY’ 04
**Non-GAAP basis
FY’ 14
FY’ 15
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 4
Oracle’s Business Transformation Journey
Transform Oracle to show customers how standardizing on out-of-the-box software can help transform their businesses
Scale Oracle to provide customers with a complete, integrated portfolio of hardware and software solutions to simplify IT and drive innovation
Digitize Oracle to help more customers successfully leverage Cloud and Big Data
PHASE I
PHASE II PHASE III
1998 2003 2004 2012 2013 Today
Transform the Business Scale the Business Digitize the Business
OB
JEC
TIV
ES
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 5
Focused on efficiency and scale
Previous Business Transformations
• Get Oracle’s internal operations in order
• Simplify. Standardize. Centralize. Automate.
• Implement plain-vanilla Oracle software to run our business
• Enhance decision-making and accountability
• Increase margins
• Undertake an aggressive acquisition strategy to expand our portfolio
• Add a new line of business – hardware
• Utilize proven best practices from Phase I to accelerate operational savings
• Scale business profitably
PHASE I
PHASE II
1998 2003 2004 2012
Drive Efficiencies Scale the Business
OB
JEC
TIV
ES
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Finance Transformation Starts with Simplify
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• Secure an executive mandate for change, starting with the CEO
• Simplify and standardize your environment as much as possible before embarking on a major transformation
• Build an expertise in creating a culture of change management
One of the things I always advise CFOs taking on large change management initiatives is that complexity is the killer of innovation and the more complexity you have in process, in systems, in organizations, in workflow, in how you make decisions, the more time and effort and money you'll spend on maintaining that complexity. That is why simplification is such a critical first step.” Loren Mahon, VP, Global Finance Systems, Oracle; Member, FEI Committee on Finance and Technology
Modern Finance Best Practices
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Evaluate Business Service Center Process
• Use of technology
• Responsibility profiles and organizational structure
• Efficiency, effectiveness, relevance, best practices
• Global headcount requirements
Act as Champion of Global Process
and Articulate…
• Strategic direction
• Understanding of global requirements
• Business needs and service level standards
Partner With the Global Process Owner
• Global process definition
• Best use of technology
Support Single Instance and Global
Business Services Strategy
• Application support and
implementation services
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Standardize: One Best Global Process Drives efficiencies, speeds acquisition integration
Global Process Owner . . . In Business
Global Application Owner . . . In IT
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Centralize: Global Business Service Centers
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San Antonio, US • N. America Deal
Management
San Jose, CR • Americas Deal Management • LAD Credit & Collections
Bucharest, RO • EMEA Deal Management • EMEA Credit & Collections • EMEA Rev Rec • EMEA Procurement • EMEA Expense Reporting • EMEA Comp Admin
Prague, CZ • EMEA Engineered Systems
Deal Management • EMEA Rev Rec
Bangalore, IN • Global Finance Customer Data • Global Quoting & Deal Management • Global Migrations & License Managed Services • Global Order Management • Global Project Accounting • Global Accts Receivables & Cash Applications • JAPAC Controllers • JAPAC and LAD Comp Admin • Global and JAPAC Credit & Collections • Global Exp Reporting • Global Purchasing & Fixed Assets • Global Business Finance – FP&A and Center of Excellence • SOX
Beijing, CN • JAPAC Deal Management • JAPAC Credit & Collections
Dublin, IE • Global and EMEA Controllers • EMEA Rev Rec
Bozeman, US • Global Cloud Deal Management
Rocklin, US • Americas Controllers
• Global & Americas Rev Rec
• Global & Americas Procurement
• Global & N. America Comp Admin
• Global Expense Reporting
Global
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. 9
Single source of truth for management, external reporting
Centralize: Reporting Center of Excellence
Location Oracle Global Financial Information Center in Bangalore supports 197 countries
Strategy • Decommission Excel-based reports and replace
with predefined multi dimensional dashboards • Centrally produce ad hoc reports
“Single source of truth” & efficient reporting
Platform Hyperion and OBIEE
Results Target 90% reduction in manual reports
India SSC Bangalore
197 Countries
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Business Transformation Phases
Ob
ject
ives
Focused on Efficiency and Scale
Drive Efficiencies
2004 2014 PHASE II
Scale the Business
• Get Oracle’s internal operations in order
• Simplify. Standardize. Centralize. Automate.
• Implement plain-vanilla Oracle software to run our business
• Enhance decision-making and accountability
• Increase margins
• Undertake an aggressive acquisition strategy to expand our portfolio
• Add a new line of business – hardware
• Utilize proven best practices from Phase I to accelerate operational savings
• Scale business profitably
1998 2003 PHASE I
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Outcome: 100+ Acquisitions since 2005
Virtual Machine Systems Management Operating System
APPLICATIONS
DATABASE
OPERATING SYSTEM AND VIRTUAL MACHINE
SERVERS AND STORAGE
MIDDLEWARE
Identity and Access Management
Performance Management
Enterprise Content Management
Business Intelligence Middleware Platform and Management
Data Integration
(pending)
(pending)
Applications
Middleware
Database
Operating System
Virtual Machine
Servers
Storage
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
FY04 FY12
39%
13%
8%
18% 19%
2%
47%
Non-GAAP Operating Margin
Outcome: M&A Performance Improvements
FY14 FY04
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Outcome: Ongoing Savings
$0
$5
$10
$15
$20
$25
$30
$35
$40
2012 2011 2010 2009 2008 2007 2006 2005
Bill
ion
s
$1.2B Savings
$3.7B Savings
10% of Revenue Saved Annually through
Oracle’s Global Single Instance, Shared Services/CoEs, uptake of digital technologies
Simplify Standardize Centralize Automate
Simplify Standardize Centralize Automate
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Results of Moving to Global Business Services
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Lower Costs
Better Information Faster
Better Customer Service
Strong Internal Controls and Security
Fast Integration of New Acquisitions and New Business Models
Empowered Employees
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Digital Technologies Transforming how CFOs create value
Cloud Services Social
Business Mobile Big Data / Analytics
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Deployments in 2012-2013
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Oracle’s Journey to the Cloud
Automate: Oracle’s Journey to the Cloud
Oracle Marketing Cloud
Oracle Sales Cloud (Sales Automation)
HCM Cloud: Phase I: Workforce Intelligence, Recruiting Intelligence, Talent
Management; HCM Cloud at OFSS Oracle ERP Cloud:
Phase I: Fusion Accounting Hub; ERP Cloud at OFSS
HCM Cloud: Phase 2: Core HR, Taleo Learn,
On boarding, Compensation Intelligence, Recruiting, Social Sourcing, Workforce Compensation
Oracle CPQ Cloud
Oracle SCM Cloud, Manufacturing Cloud
Oracle ERP Cloud: Phase 2: Live on Core Financials (June 2016) and all ERP Cloud
(June 2017); OFSS: Professional Services
Eloqua (Campaign Management)
2014-2015 planned for 2016-2018
Oracle Business Intelligence Cloud
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
• More efficient and lower cost transaction processing
• Simplify reporting across GL and all sub ledgers
• Simplify maintenance of GL and reporting hierarchy
• Simplify future data migrations
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Benefits from Standardizing on ERP Cloud
1 2 3 Single Global Chart of Accounts Increased Flexibility Rapid Access to Innovation
• Functionality made available as cloud platform releases are updated
• Eliminate risk associated with upgrading on-premises platforms with customizations
• Modern, service-oriented platform makes it easier to extend standard flexibility
• Standards-based extensibility leveraging Oracle Cloud Platform as a Service
• Greatly reduce application risk
• Greatly reduce IT maintenance
• Simplify integrations
• Simplify uptake of functionality
Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
How the Cloud Has Helped Our Business
• Role centric User Interface
• Job specific workbenches Improved User Experience
• Oracle Social network to drive collaboration
• Dashboarding Social and Mobile
• User access only to data needed Improved Data Security
• Reduced the number of steps needed
• Reduced close cycle by 1 day Streamlined Consolidation
• Simplified HCM processes for job, assignments & comp
• New functionality Process Efficiency
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved.
Oracle’s Journey to the Cloud: Keys to Success
• Secure executive mandate to implement transformation
• A fresh start
– Limit customizations
– Don’t migrate history; limit to open GL balances, projects, and employees
• Start with the end in mind
– Avoid later rework
• Single, global go live schedule
– Not phased by country
• Change management
– Training and communication plans
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