Oracle’s Digital Transformation - .Oracle CPQ Cloud Oracle SCM Cloud, Manufacturing Cloud Oracle

  • View
    215

  • Download
    0

Embed Size (px)

Text of Oracle’s Digital Transformation - .Oracle CPQ Cloud Oracle SCM Cloud,...

  • Copyright 2014 Oracle and/or its affiliates. All rights reserved. |

    Oracles 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 Oracles products remains at the sole discretion of Oracle.

    2

  • 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

    Oracles 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 Oracles 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

    6

    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

    7

    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

    8

    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 Oracles 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

    11

  • 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 Oracles Global Single Instance, Shared Services/CoEs, uptake of digital technologies

    Simplify Standardize Centralize Automate

    Simplify Standardize Centralize Automate

    13

  • Copyright 2014 Oracle and/or its affiliates. All rights reserved.

    Results of Moving to Global Business Services

    14

    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

    15

  • Copyright 2014 Oracle and/or its affiliates. All rights reserved.

    Deployments in 20