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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


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


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


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


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


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


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


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


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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FY04 FY12

39%

13%

8%

18% 19%

2%

47%

Non-GAAP Operating Margin

Outcome: M&A Performance Improvements

FY14 FY04


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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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


Digital Technologies Transforming how CFOs create value

Cloud Services Social

Business Mobile Big Data / Analytics

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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


• 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


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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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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Oracle’s Digital Transformation - cloudworld.co.krcloudworld.co.kr/event/PDF/Track_4_1_Philippe_Korea_V2.pdf · Oracle CPQ Cloud Oracle SCM Cloud, Manufacturing Cloud Oracle ERP