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

Why Technological Innovation is Not Enough: Open Innovation and the Company’s Business Model

Henry Chesbrough Berkeley Haas School of Business Esade Business School


Creative Commons License SA 3.0

• Please give me attribution if you use this

• Please do not use it for commercial purposes


Which Would You Rather Have?

Better Technology Better Business Model

4

OR

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 5

Go with the Business Model

Business Model > Technology

Ability to profit from technology

Ability to scale technology

Ability to continue innovating technology

Ability to acquire technology


Generic Airline Business Model

6

Passengers Airline

Food Aircraft, Fuel

Cleaning

Airport:

• Runway

• Check-In

• Jetway


Ryan Air

Ryan Air is a regional low-fare airline operating in the United Kingdom and northern Europe.

•Only flies into regional airports, no landing fees.

•Guarantees airport certain # passengers in their terminal

•Airport pays Ryan Air to operate out of its airport

•Airport provides Ryan Air a percentage of the revenues

from shops, restaurants, car hire and hotels at airport.


Ryan Air Business Model

Passengers

Ryan Air Aircraft,

Fuel Airport:

• Car Hire

• Parking

• Hotels

• Shopping and Food

Food

8

Jetway,

Check-In,

Cleaning


The Business Model

• Identifies market segment

• Articulates value of proposed offering

• Focuses on key attributes of offering

• Defines value chain to deliver offering

• Creates way for getting paid

• Establishes value network needed to sustain model


Sample Business Model Revenue Mechanisms

10

Per item and “all you can eat” Razor and Razor Blade

Free trial, follow on subscription

Free, with paid advertising

http://www.istockphoto.com/istock_login.php


Sample Business Model Revenue Mechanisms

11

Recruit your friends,

and save money

Market maker/

aggregator/switchboard

Turn cost centers into profit centers:

Airport landing fees (Ryanair) Hotel room

http://images.google.com/imgres?imgurl=http://www.costpernews.com/wp-content/uploads/2008/03/ebay.png&imgrefurl=http://www.costpernews.com/archives/category/affiliate-networks/commission-junction/&usg=__dvKzotJlH3i7hQ1lc-poVvNH1Jk=&h=333&w=800&sz=23&hl=en&start=1&um=1&tbnid=5fKqyPgMVSXjEM:&tbnh=60&tbnw=143&prev=/images?q=ebay&um=1&hl=en&client=firefox-a&rls=org.mozilla:en-US:official&sa=G

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | © 2007 Henry Chesbrough 12

Why Business Models are Hard to Manage: Mapping Across Domains

Technical

Inputs:

e.g.,

feasibility,

performance

Economic

Outputs:

e.g.,

value,

price,

profit

Business

Model

• target market

• value prop.

• key attributes

• value chain

• how paid

• Value network

Measured in technical domain Measured in social domain


Business Model Innovation vs. Technology Innovation

• Most companies have processes to advance technologies, and spend millions to do it

• Few, if any, of these same companies have processes and budget to explore business model innovation

• As technologies commoditize, business model innovation needed to sustain differentiation and profitability


Implications for You

• Where do your business models come from?

• Is there a process to discover new business models?

• Is there a process to improve existing models?


Where do business models come from?

• Entrepreneurs

• Intrepreneurs

• Risk takers

• Failures

• Experimentation


A Classic Example: the Xerox 914 copier

• Chester Carlson develops electrostatic method to place toner on paper, a “dry” process for copying documents

• In 1955, existing processes (wet or thermal) used to make 15-20 copies per day. Machines cost ~ $300.

• Joe Wilson estimates cost of building dry process copiers at ~$2000

• Wilson seeks manufacturing and distribution partners

– IBM, Kodak, GE

• IBM engages ADL to study: “Although it may be admirably suited for a few specialized copying applications, the Model 914 has no future in the office-copying-equipment market.”


Wilson’s Business Model

• ADL’s study (and the other companies) viewed the dry process technology through a traditional business model

– charge for the equipment (dry technology very high cost)

– charge for the supplies as needed (no savings vs. wet)

• Joe Wilson ignored these rejections, and took the technology to market through a new Business Model

– $95/ month for first 2000 copies, 4 cents each for additional

– Low barrier for customer trial, Haloid/Xerox bore the risk

– Enormous usage: 2000 copies per day

– Revenues grow 41% compounded for next 20 years


Successful Business Models are a Double-Edged Sword

• They deliver tremendous value

• But they create a cognitive bias against any value proposition that doesn’t align with its dominant logic

18


3Com

• Metcalfe left PARC in Jan. 1979

• Did consulting work until Feb. of 1981

– DEC, GE, Exxon

• Brokered alliance between Xerox, DEC, and Intel for IEEE 802 (aka Ethernet)

• Initial plan: sell to Unix workstations, via direct sales force


Then….

• As part of consulting, created directory of LAN dealers and VARs across US

– first of its kind

– sold many hundreds of copies at $125 each

– did this for 5 years

• IBM PC took the world by storm

• 3Com formed, Krause joined from HP

– VCs financed:

• New plan: add-on boards for IBM PCs, sold through IBM retailers and VARs


0

5000

10000

15000

20000

25000

30000

35000

40000

US

Dol

lars

(mill

ions

)

Year

Xerox 3Com

Adobe Doc Sci

Documentum FileNet

Komag Objectshare

SynOptics SDLI

VLSI Sum (10)

Xerox: The Value of Business Model Innovation


Example: Apple’s “app economy”

• “We define everything that is on the phone. You don’t want your phone to be like a PC. The last thing you want is to have loaded three apps on your phone and then you go to make a call and it doesn’t work anymore. These are more like iPods than they are like computers.”

– Steve Jobs, NYT, January 2007


Apple’s “app economy” - Part 2

• “We define everything that is on the phone. You don’t want your phone to be like a PC. The last thing you want is to have loaded three apps on your phone and then you go to make a call and it doesn’t work anymore. These are more like iPods than they are like computers.”

– Steve Jobs, NYT, January 2007

• By 2008, 120,000 apps available on iTunes App Store

–Even visionaries have to let customers co-create!


A Second Co-Creation Example

• “…Amazon’s performance was essentially flat between mid-2003 and early 2007… Then Amazon took off afresh, as investors realized that Bezos had been quietly building a multitude of new growth engines inside his company. All were rooted in the same theory: If Amazon lets the customer set the specs, it could conquer any number of consumer products and services.” (emphasis added)


Today’s Movie Industry

• $30 billion in revenue from box office receipts in 2010

• $87 billion in revenues reported by the movie studios in 2010

• Where did the other $57 billion come from?

– Pay-per view TV, cable and satellite channels, video rentals, DVD sales, online subscriptions and digital downloads.

• Each of these innovations was violently opposed by the movie industry at the time!!

25


Meet Alex Osterwalder


The Business Model Canvas

Key

Partnerships

Key Activities

Key

Resources

Value

Proposition Customer

Relationships

Channels

Customer

Segments

Revenue Streams Cost Structures


What are the barriers stopping business model innovation inside established companies?

• Resource conflicts

• Disruption of current business model

• Cognition


Differing context for business model innovation

Startup

• High risk, high reward

• External focus

• Governance by owners

• Clean sheet of paper

• No initial assets to leverage

Corporate

• Lower upside, lower downside

• Internal and external focus

• Governed by managers as one of many corporate priorities

• Must not disrupt core business

• Try to leverage corporate assets

Source: H. Chesbrough, Designing Corporate Ventures in the Shadow of Private VC


Role of CEO

Startup

• Founder(s) is the creator of the business model

• CEO owns the business model

– Pivots until a viable model is discovered

– Then focuses on scaling it

Corporation

• Initial founder may be long gone

• Chief Execution Officer

– Optimizes established business model

– Drives away the misfits who challenge it

Who owns business model innovation in a company? Which

corporations are skilled at creating new business models?

How do they do it?


Role of Board

Startup

• Engaged Owners

• High powered incentives

• Know the space

• Bring their own information to complement company info

• Meet every 4-6 weeks

Corporations

• Occasional Monitors

– Often running their own company

– Or sitting on many boards

• Rely on company info

• Modest incentives

• D&O insurance required

• Meet 4x/ year

How do Boards deal with corporate ventures?

How can Boards add value to corporate ventures?


Role of Finance

Startup

• Entrepreneurs must shop around

• Often takes 10 or more pitches to get initial financing

– One Yes is enough to start

• Subsequent financing driven by performance vs. milestones

Corporate

• Entrepreneurs must go to a single place – Many must say Yes, only one No can stop

the project

• Subsequent financing driven by performance vs. budget – May go up or down, depending on

whether company is having a good or bad year

Is Finance enabling innovation, or killing it?


Business Model Maturity Stages

6 Stages:

1. Undifferentiated business model

2.Differentiated business model

3. Segmented business model

4. Externally aware business model

5. Integrated business model

6. Platform leadership business model

op

en

closed


Lessons for Innovators

• Business model innovation is hard

– But potentially very valuable

• New business models need processes for experimentation, not planning

– Get out of the building!

– Lean Startup is a good methodology to use

• New business models create disruptions with existing businesses and their models

– Need top management protection to sustain

34


Why Business Models are Hard to Manage: Mapping Across Domains

Technical

Inputs:

e.g.,

feasibility,

performance

Economic

Outputs:

e.g.,

value,

price,

profit

Business

Model

• target market

• value prop.

• key attributes

• value chain

• how paid

• Value network

Measured in technical domain Measured in social domain


Adobe

• Warnock and Geschke at PARC

– creating fonts for Star Workstation

– wanted to make into a standard

– Xerox said no: “how can we make money if we give it away?”

• They leave, and form Adobe

• Initial plan: turnkey publishing system, complete with own hardware, software, and fonts


“We were originally going to supply a turnkey systems solution including hardware, printers, software, etc.

“Steve Jobs and Gordon Bell were key ingredients in getting things going…

Gordon said, “don’t do the whole system”

Steve said, “just sell us the software”.

That’s how the business plan formed. It wasn’t there in the beginning.”

- Charles Geschke

Today, Adobe’s market value exceeds that of Xerox


Different Financial Processes

Chess: Type I errors

• Plan several moves ahead

• No new information needed

• You know what you’ve got, what opponent has

• NPV

Poker: Type II errors

• Pay to play

• Pay for new information

• You discover what

you’ve got, what other

players have

• Options


9 Building Blocks

1. Customer Segments

2. Value Propositions

3. Channels

4. Customer Relationships

5. Revenue Streams

6. Key Resources

7. Key Activities

8. Key Partnerships

9. Cost Structure


Customer Segments

• For whom are we creating value?

• Who are our most important customers?

• (Who are NOT our customers?)


Value Propositions

• What value do we deliver to the customer?

• What customer problem are we helping to solve?

• Which customer needs are we satisfying?

• What is the customer “job” to be done?


Channels

• Which channels will we use to reach our customers?

• How are customers reached now?

• Which channels are most cost-efficient?

• Which alternative channels might be used?

• Will there be Channel conflict? How to manage?


Customer Relationships

• What type of relationship do we want to have with our customers?

– Personal assistance

– Dedicated personal assistance

– Self-service

– Automated services

– Communities

– Co-creation

• Customer acquisition, retention, upselling


Revenue Streams

• For what value will customers really pay?

• For what value are they paying today?

• How would customers prefer to pay?

• Are there new revenue streams not currently being used?

• Fixed menu pricing, vs. dynamic pricing


Key Resources

• What key resources are necessary to deliver the value proposition to our customers?

– To our distribution channels?

– To build the customer relationships?

– To realize the desired revenue streams?

• Types of resources: physical, intellectual, human, financial


Key Activities

• What key activities are required by our value proposition?

– By our distribution channels?

– By our customer relationships?

– To realize our revenue streams?

• Examples: production, problem solving, platform and/or network


Key Partnerships

• Who are our key partners and suppliers?

• Which resources do we provide ourselves, and which do we rely on others to provide?

• Economies of scale

• Economies of scope

• Risk and uncertainty management


Cost Structure

• What costs are most important in our business model?

• Which key resources and activities are most expensive?

• Fixed costs, variable costs, contingent costs, options


Thanks!

Henry Chesbrough Berkeley Haas School of Business Esade Business School

The Oracle Cloud

Topics

• Evolution of cloud offerings

• Public Cloud

• Commercial Models

• Private Cloud

• European Support

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.

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

Complete

Open

Integrated

9


The Oracle Cloud


The Oracle Cloud Provide all Three Layers of Public Cloud Services: SaaS, PaaS, IaaS

• Software as a Service: Lots more enterprise SaaS applications

• Platform as a Service: Easy to move existing applications to the cloud

• Infrastructure as a Service: Secure, reliable, lowest cost

– Enabled by Innovation: Engineered Systems, servers, storage, silicon

11

Enable All Three Layers of Private Cloud Services: SaaS, PaaS, IaaS

• Software as a Service: Full suite of on-premise applications

• Platform as a Service: Creation of DBaas, MWaaS with minimal risk

• Infrastructure as a Service: Servers, operating systems and Management tooling

Enabled by Innovation: Engineered Systems, servers, storage, silicon

Enable Hybrid deployments on Public and Private


SaaS Applications


Three Complete Suites of SaaS Applications More Enterprise SaaS Applications than Anyone

Human Capital Management

• Global HR

• Talent Management

Enterprise Resource Planning

• Financials

• Project Portfolio Management

• Procurement

• Supply Chain Management

• Enterprise Performance Management

Customer Experience

• Marketing

• Sales

• Service

• Configure, Price & Quote

• E-Commerce

• Social Campaigns & Listening

• Data as a Service

13


Customer Experience: Marketing Cloud Applications Market & Technology Leader: 84 SaaS Products – 29 New

14

• Marketing Cloud Bundle

• Additional Deliverability Tests

• Advanced Data Security

• Advanced Lead Scoring

• Advertising

• Business Intelligence

• Customer Profiler

• Data Tools

• Data Management Platform

• Deliverability Testing and Monitoring

• Email Marketing

• Engage and Plug-in for Salesforce.com

• Engage

• Engage Mobile

• Event Management

• Identity for Salesforce.com

• Marketing, Additional Email

• Marketing, Additional Volume

• Marketing Basic

• Marketing Enterprise

• Marketing, Enterprise Edition

• Marketing for Communications Standard

• Marketing for Utilities

• Marketing for Life Sciences Professionals

• Marketing for Life Sciences Consumers

• Marketing for Manufacturing Basic

• Marketing for Manufacturing Standard

• Marketing for Manufacturing Reseller Portal

• Marketing for Wealth Management

• Marketing Standard

• Plug-in for Salesforce.com

• Security Administration

• All Access Audience Education Pass

• Audience Analytics

• Marketing Approvals

• HIPAA Advanced Data Security

• Content Marketing Additional 10 Users

• Content Marketing Additional Hub

• Content Marketing Basic

• Content Marketing Lite

• Content Marketing Standard

• Content Marketing Additional Publisher

• Content Marketing Additional Users

• Content Marketing Basic

• Content Marketing Lite

• Content Marketing Standard

• Content Marketing Additional Business Unit

• Content Management Legacy Subscription

• Marketing Platform

• Add to Address Book

• Automatic Failover for Transactional Messages

• Barcode Enablement

• BCC Enablement

• Connect for Adobe Genesis

• Connect for Salesforce.com

• Display

• Distributed Marketing

• Domain Branding

• Free to End User for AT&T

• Free to End User for Sprint

• Free to End User for T-Mobile

• Free to End User for Verizon

• Platform

• Premium Mobile Tracking

• Push

• Push Messaging

• Return Path Additional Pixels for Email Client Monitor

• Return Path Email Intelligence

• RTM

• SMS

• SMS Dedicated Random Shortcode

• SMS Dedicated Vanity Shortcode

• SMS Enterprise

• SMS Longcode

• SMS Messaging

• SMS Shared Longcode

• SMS Shared Shortcode

• Social

• SSL Enablement

• Subaccount

• Transactional Messaging

• Unique IP Address

• Web

• Web Retargeting


Customer Experience: Sales Cloud Applications Designed to Help You Sell More: 69 SaaS Products – 14 New

15

• Sales Cloud Bundle

• Customer Data Steward

• Customer Hub for Organizations

• Customer Hub for Persons

• Customer Management Foundation for Organizations

• Customer Management Foundation for Persons

• CRM Base Enterprise Offering

• CRM Base Premium Offering

• CRM Base Standard Offering

• CRM Desktop

• Data Quality Address Cleansing

• Data Quality Matching

• Incentive Compensation

• Quota Management

• Sales Campaigns

• Sales Catalog

• Sales Predictor

• Opportunity Landscape

• Opportunity Management

• Territory Management

• Territory Management for Channel Managers

• Voice

• Mobilytics

• OTBI for CRM

• OTBI Enterprise for CRM

• Additional Data Source for OTBI Enterprise for CRM

• Database Vault for CRM Security

• Transparent Data Encryption for CRM Security

• CRM for UK Government on Public Services Network

• CRM for UK Government

• CRM for US Department of Defense

• CRM for US Government

• CRM for Financial Services Industry

• Role Optimizer for CRM Security

• Partner Relationship Management for Channel Managers

• Partner Relationship Management for Partners

• Contact On Demand

• CRM On Demand

• CRM On Demand Database Encryption

• CRM On Demand Deal Management

• CRM On Demand Desktop

• CRM On Demand Disconnected Mobile Sales

• CRM On Demand Disconnected Mobile Sales, Hosted Edition

• CRM On Demand Enterprise Lead Referral

• CRM On Demand for Partner Relationship Management

• CRM On Demand Marketing - Multi-Tenant, Enterprise Edition

• CRM On Demand Mobile Sales Data Access

• CRM On Demand Restore Service

• CRM On Demand Teller Referral

• CRM On Demand, High Technology Standard Edition

• CRM On Demand, Automotive Enterprise Edition

• CRM On Demand, Automotive Enterprise Edition

• CRM On Demand, Automotive Standard Edition

• CRM On Demand, Enterprise Edition

• CRM On Demand, Enterprise Edition

• CRM On Demand, Financial Services Enterprise Edition - Insurance Solution

• CRM On Demand, Financial Services Enterprise Edition - Insurance Solution

• CRM On Demand, Financial Services Enterprise Edition - Wealth Management Solution

• CRM On Demand, Financial Services Enterprise Edition - Wealth Management Solution

• CRM On Demand, Financial Services Standard Edition - Insurance Solution

• CRM On Demand, Financial Services Standard Edition - Wealth Management Solution

• CRM On Demand, High Technology Enterprise Edition

• CRM On Demand, High Technology Enterprise Edition

• CRM On Demand, Life Sciences Enterprise Edition - Medical Solution

• CRM On Demand, Life Sciences Enterprise Edition - Medical Solution

• CRM On Demand, Life Sciences Standard Edition - Medical Solution

• CRM On Demand, Standard Edition

• CRM Self-Service E-Billing On Demand Customer Serivce Representative

• CRM Self-Service E-Billing On Demand for Consumers


Customer Experience: Service Cloud Applications Introducing Field Service Suite: 113 SaaS Products – 14 New

16

• Additional Mailbox

• Agent Scripting

• Analytics

• Analytics Education Service

• Analytics Optimization Engagement Service

• App Builder Connect PHP API

• App Builder Custom Objects

• App Builder Experience Designer

• Application Test Site

• Assigned Premium Care Account Specialist Overlay

• Basic Screen Pop

• Chat

• Click-to-Call

• Cloud Managed Service

• Cloud Managed Service for Custom Scope

• Cloud Managed Services Pool

• Cloud Platform

• Cloud Platform for Department of Defense

• Cobrowse

• Cobrowse Legacy

• Cobrowse Live Chat

• Cobrowse Pilot

• Cobrowse Premium

• Cobrowse Presenter

• Cobrowse Remote Support

• Comments on the Knowledgebase

• Community Discovery Service

• Computer Telephony Integration Discovery Service

• Connect Web Services

• Connect Web Services API Operations

• Connect Web Services API Operations Service Period Pool

• Contact Center Experience

• Contextual Workspaces

• Custom Data Import

• Custom Domain SSL Application Hosting

• Customer Experience for Facebook

• Customer Portal

• Customer Portal Designer & Contact Center Experience Designer Administration Education

• Customer Service Administration Education

• Data Export Service

• Data Import Service

• Dedicated Database with Encryption

• Dedicated Outbound IP Address

• Desktop App Builder Add-Ins

• Desktop Workflow

• Dynamic Agent Desktop

• Dynamic Agent Desktop, Standalone Cobrowse

• Dynamic Agent Knowledgebase

• Email

• Email Management

• Engage

• Enterprise Contact Center Dynamic Agent Desktop

• Enterprise Dynamic Agent Desktop

• Experience Routing

• Feedback

• General Optimization Engagement Onsite Service

• General Optimization Engagement Remote Service

• Government Cloud Platform

• Guided Assistance

• Innovation Community

• Innovation Starter Community

• Instance

• Integration and Customization for Developers Education

• Intent Guide

• Interface

• Knowledge

• Knowledge Foundation

• Knowledgebase Optimization Engagement

• Mission Critical

• Mobile

• Network VPN to Hosting Facility

• Network VPN to Hosting Facility

• Offer Advisor

• Outbound and Feedback Regional Training for EMEA Education

• Outbound

• Outreach

• Outsourced Solution Administration Managed Service

• PCI Certified Cloud Platform

• Pilot

• Platform

• Product Registration

• Remote Product Coaching Service

• Sales

• Service Cloud Bundle

• Secure Socket Layer

• Self Service for Facebook

• Service Cloud Business Services

• Service Cloud Education Services

• Service Cloud Import/Export Services

• Service Cloud Managed Services

• Single Sign-On

• Social Designer

• Social Designer Community

• Social Experience

• Social Media Communities

• Social Monitor

• Software Pilot

• Standalone Chat Dynamic Agent Desktop

• Standard Dynamic Agent Desktop

• Support and Innovation Community

• Support and Innovation Starter Community

• Support Community

• Support Starter Community

• Virtual Assistant

• Virtual CIO

• Web

• Web Experience

• Web Self Service

• Website Search

• Experience Routing

• Policy Automation Agent

• Policy Automation Collaboration

• Policy Modeling


Customer Experience: Configure Price Quote & E-Commerce Market & Technology Leader: 42 SaaS Products – 27 New

17

Configure, Price & Quote Commerce • CPQ Channel Users

• CPQ Data Export

• CPQ Data Table Tracking

• CPQ Database Encryption

• CPQ eCommerce Transactions

• CPQ Enterprise Edition

• CPQ File Storage

• CPQ High Availability Hosting

• CPQ Multisource Document Creation

• CPQ Premium Edition

• CPQ Reporting

• CPQ Shared Test Environment

• CPQ Standard Edition

• CPQ Transaction XML Export

• Express Configuration for Salesforce.com

• Express CPQ for Salesforce.com

• Express CPQR for Salesforce.com

• Express Pricing for Salesforce.com

• Express Quoting for Salesforce.com

• Express Renewals for Salesforce.com

• CPQ Cloud Bundle

• CPQ Cloud Solution

• CPQ Cloud Solutions – BMX

• CPQ Lite Edition

• Additional CastIron Endpoint hosted

• CPQ EAI CastIron OEM Product Enterprise Edition

• CPQ EAI CastIron OEM Product Standard Edition

• CPQ EAI WebMethods OEM Product

• CPQ EAI WebMethods OEM Product Subscription Instance

• CPQ EAI WebMethods OEM Module Subscription

• CPQ Connector for Salesforce.com

• CPQ Storage Additional 1GB File Storage

• Click-to-Call Interactions

• Click-to-Call Standard Telco

• Live Help Chat

• Live Help Email

• Live Help

• Live Help Recommendations

• Recommendations Additional Catalog

• Recommendations Large Catalog

• Recommendations Multichannel

• Recommendations Single-Channel


Customer Experience: Social Campaigns, Listening & DaaS Extreme Innovation: 49 SaaS & DaaS Products – 36 New

18

Social Campaigns and Listening Data as a Service • Social Network

• Social Engagement and Monitoring, Brand Conversation Landscape Package

• Social Engagement and Monitoring, Campaign Evaluation Package (Bi-Weekly)

• Social Engagement and Monitoring, Campaign Evaluation Package (Post-Mortem)

• Social Engagement and Monitoring, Content Optimization Package

• Social Engagement and Monitoring, Topic Conversation Package

• Social Engagement and Monitoring, Additional Engagement Users

• Social Engagement and Monitoring, Advanced Edition

• Social Engagement and Monitoring, Elite Edition

• Social Engagement and Monitoring, Essential Edition

• Social Engagement and Monitoring, Select Edition

• Social Engagement and Monitoring, Additional 50,000 Messages

• Social Engagement and Monitoring, Additional Topics

• Social Engagement and Monitoring, Brand Tracker

• Social Engagement and Monitoring, Enterprise Edition

• Social Engagement and Monitoring, Premium Edition

• Social Engagement and Monitoring, Standard Edition

• Social Engagement and Monitoring, Conversation Suite

• Social Marketing, Advanced Edition

• Social Marketing, Elite Edition

• Social Marketing, Essential Edition

• Social Marketing, Select Edition

• Social Marketing for Facebook Pages

• Social Marketing for Google+ Streams

• Social Marketing for Twitter Streams

• Social Marketing Games

• Social Marketing Shop

• Social Marketing Open Graph Object Streams

• Social Relationship Management Brand Conversation Landscape Package

• Social Relationship Management Additional 500 Owned Channels

• Social Relationship Management Additional Owned Channel

• Social Relationship Management Content Optimization

• Audience Data Marketplace

• Channel Partner Direct Integration

• Channel Partner Indirect Integration

• Channel Search Partner Integration

• Data Analytics

• Look-alike Modeling Data

• Pixel Data Transfer Integration

• Private Data Marketplace

• SDT Batch File

• SDT Integration

• Social Data & Insight – D&B Company Contact Records

• Social Data & Insight – D&B Company Enterprise Records

• Social Data & Insight – D&B Company Standard Records

• Social Data & Insight Business Directory – Hosted D&B Company Contact Records

• Social Data & Insight Business Directory – Hosted D&B Company Enterprise Records

• Social Data & Insight Business Directory – Hosted D&B Company Standard Records

• DaaS for Sales


Human Capital Management SaaS Applications Modern HCM is Social HCM: 84 SaaS Products – 16 New

19

Global Human Resources Talent Management Social • Absence Management

• Benefits

• Global Payroll

• Goal Management

• Human Capital Management Base

• Incentive Compensation

• Network at Work

• Payroll Interface

• Performance Management

• Project Management

• Project Resource Management

• Task Management

• OTBI for HCM

• OTBI Enterprise for HCM

• Additional Data Source for OTBI Enterprise for HCM

• Workforce Compensation

• Workforce Lifecycle Manager

• Workforce Modeling

• Workforce Predictions

• Workforce Reputation Management

• Database Vault for HCM Security

• Role Optimizer for HRM Security

• Transparent Data Encryption for HCM Security

• HCM for UK Government

• HCM for UK Government on Public Services Network

• HCM for US Department of Defense

• HCM for US Government

• HCM for Financial Services Industry

• Time and Labor

• Time and Labor for Projects

• Analytics

• Community Connect

• Development Planning

• Goals Management

• Hosted Connect Integration

• Hourly Assessment Content

• Learn

• Learn External User

• Learn Additional Storage

• Onboarding

• Performance Management

• Platform

• Premium Data Limits

• Premium File Attachments Limits

• Recruiting

• Recruiting High Volume

• Social Sourcing

• Store Manager Assessment Content

• Succession Planning

• Talent Management Base

• Talent Review and Succession Management

• OTBI for Talent Management

• Enterprise for US Government

• Enterprise for US DoD

• Enterprise for UK Government

• Enterprise for UK Government on Public Services Network

• Compensation - BE

• Integration Custom - BE

• Integration Standard - BE

• Learn - BE

• Learn External User - BE

• Office Essentials Learning by Skillsoft - BE

• Onboarding - BE

• OSHA Basic Library Learning by Vivid Learning - BE

• Partner Integration Setup - BE

• Performance Management - BE

• Recruiting Manager - BE

• Recruiting Premium Active User - BE

• Recruiting Premium - BE

• Recruiting Standard Active User - BE

• Smart Sourcing Per Posting - BE

• Smart Sourcing Per Posting - BE for Broadbean

• Smart Sourcing Per Posting - BE for eQuest

• Base Platform - BE

• Social Network

• Social Engagement and Monitoring, Additional 50,000 Messages

• Social Engagement and Monitoring, Additional Topics

• Social Engagement and Monitoring, Brand Tracker

• Social Engagement and Monitoring, Enterprise Edition

• Social Engagement and Monitoring, Premium Edition

• Social Engagement and Monitoring, Standard Edition

• Social Engagement and Monitoring, Conversation Suite

• Social Workforce

• Social Talent Management


Enterprise Resource Planning: Financials Projects Procurement First to Market High-End ERP: 49 SaaS Products – 14 New

20

Financials Project Portfolio Management Procurement • Advanced Collections

• Automated Invoice Processing

• Enterprise Contracts Management Base

• Enterprise Contracts Management

• Expenses

• Financial Reports Center

• Financials

• Revenue Management

• OTBI for Financials

• Database Vault for ERP Security

• Role Optimizer for ERP Security

• Transparent Data Encryption for ERP Security

• ERP for UK Government

• ERP for UK Government on Public Services Network

• ERP for US Department of Defense

• ERP for US Government

• ERP for Financial Services Industry

• Accounting Hub Reporting

• Credit Card Tokenization

• Credit Card Payment Processing

• Grants Management

• Capital Planning

• Project Billing

• Project Contracts

• Project Control

• Project Costing

• Project Management

• Project Performance Reporting

• Project Resource Management

• Task Management

• OTBI for Projects

• Capital Planning

• Cost Controls

• Facility Management

• P6 Enterprise Project Portfolio Management

• P6 Enterprise Project Portfolio Management Web Services

• P6 Progress Reporter

• Project Delivery Management

• Real Estate Management

• Unifier Portal User

• Procurement Contracts

• Purchasing

• Self-Service Procurement

• Sourcing

• Supplier Portal

• OTBI for Procurement

• Supplier Qualification Management

• EnterpriseTrack

• EnterpriseTrack Timesheets


Enterprise Resource Planning: Supply Chain Applications First to Market High-End SCM: 32 SaaS Products – 20 New

21

Supply Chain Management • Innovation Management

• Innovation Management Ideation

• Inventory Management

• Procurement Contracts

• Product and Catalog Management

• Product Hub

• Product Hub Portal

• Purchasing

• Self-Service Procurement

• Sourcing

• Supplier Portal

• OTBI for Procurement

• OTBI for SCM

• Supplier Qualification Management

• Product Development


• Transportation Management

• Transportation Operational Planning

• Transportation Cooperative Routing

• Freight Payment, Billing and Claims

• Transportation Intelligence

• Logistics Inventory Visibility

• Forwarding and Brokerage Operations

• Transportation Sourcing

• Additional Test Environment for Oracle Transportation and Global Trade Management

• Transportation and Global Trade Management Additional Storage

• Virtual Private Network for Oracle Transportation and Global Trade Management

• Global Trade Management

• Trade Compliance

• Global Trade Intelligence

• Customs Management

• Autovue 2D Professional


Enterprise Performance Management SaaS Applications

Planning and Budgeting Service

• Full power of Hyperion Planning in cloud

• Implementation in weeks: application creation wizards, starter kits, and templates

• Flexible deployment choices and tools for application migration

Financial Performance Reporting Service

• Narrative-based management reporting and external disclosures in one solution

• Collaborative authoring, commentary and reporting

• Role-based, auditable access on desktop and mobile devices

22

First to Market High-End EPM in the Cloud: Hyperion Cloud New in 2014


Industry Specific SaaS Applications 47 SaaS Products – 32 New

23

Communi-cations

Health Sciences

Higher Education Automotive Primavera

Financial Services

Consumer Products

Manu-facturing Utilities

• Customer Experience for Communications

• Billing and Revenue Management

• Billing and Revenue Management, Customer Center

• Billing and Revenue Management, Permissioning Center

• Billing and Revenue Management, Premium Edition

• Billing and Revenue Management, Pricing Design Center

• ClearTrial Track Cloud Service

• ClearTrial Plan and Source Cloud Service

• InForm On Demand

• Inform Argus Integration

• IRT On Demand

• Empirica Signal

• Empirica Signal FDA AERS Database

• Empirica Signal VAERS Database

• Empirica Signal Who UMC Vigibase

• Empirica Topics

• Empirica Topics for Signal Management

• Empirica Healthcare Analysis

• Empirica Healthcare Analysis Additional Uncompressed Data

• Siebel Clinical Trial Management

• LabPas

• Health Sciences Network

• HCM for Higher Education

• ERP for Higher Education

• Student

• Customer Experience for Automotive


• P6 Enterprise Project Portfolio Management Web Service

• P6 Analytics

• P6 Progress Reporter

• Unifier Portal User

• Unifer Project Controls

• Instantis

• Customer Experience for Financial Services

• Insurance Data Exchange

• Insurance Revenue Management and Billing

• Insurance Revenue Management and Billing Setup

• Financial Services Lending & Leasing Setup

• Financial Services Lending & Leasing Origination

• Financial Services Lending & Leasing Servicing & Collection

• Financial Services Revenue Management and Billing

• Financial Services Revenue Management and Billing Setup

• Customer Experience for Consumer Products

• Customer Experience for High Tech Manufacturing

• Core Advanced Analytics

• Custom Advanced Analytics

• Extended Advanced Analytics


Oracle Cloud Platform Complete Set of Platform Services for Building Modern Secure Cloud Applications


Oracle Cloud Platform Complete Set of Platform Services for Building Modern Secure Cloud Applications

25

Oracle Database Cloud Service

WebLogic Java Cloud Service

Social Mobile Analytics Identity


Oracle SaaS Application Suites Inherit Platform Features Multitenant, Social, Mobile, In-Memory Big Data Analytics, Security…

26

Oracle Cloud Platform

CX HCM ERP

Social ● In-Memory Big Data Analytics ● Mobile Multitenant ● Security


Oracle Cloud Platform Development Environment Extend SaaS Applications Using the Same Cloud Platform the Applications are Built On

27

CX HCM ERP

Oracle Cloud Platform

Social ● In-Memory Big Data Analytics ● Mobile Multitenant ● Security

CX Extension

HCM Extension

ERP Extension


The Oracle Cloud: Major Platform Upgrade Move Any Existing Oracle Database or Application to the Cloud by Pushing a Button

28

Move to Cloud – Move Back: No Code Changes!

WebLogic Java Platform Service

Java App

Oracle Database Platform Service

Infrastructure Compute & Storage Service

Non-Java App

Database

WebLogic Java Server

Java App

Oracle Database Server

Non-Java App

Database

Oracle Cloud Customer Data Center


Fourth Generation Upward Compatible Oracle Database Preserving Our Customer’s Investment Through Each New Era of Computing

Generation 4

Database Cloud Service Multitenant

Generation 3

Internet Architecture Thin Clients

Generation 2

Client/Server PCs and Servers

Generation 1

Minicomputer & Mainframe Database

29


Fourth Generation Oracle Data Architecture Managing All Types of Data

Generation 4

• Big Data In-Memory • Hadoop & NoSQL

Generation 3 • Unstructured Data • Objects, XML

Generation 2

• PL/SQL • Text, Images

Generation 1

• Relational • SQL

30


Moving Databases and Applications to the Cloud Pushing a Button Moves and Modernizes Database Applications

• Automatically compress data 10 to 1

• Automatically encrypt data

• Automatically enable big data in-memory processing

• Automatically make applications multitenant

• Easily add mobile, social and analytic features

31


Oracle Database Platform as a Service: Much Easier to Use Database PaaS Completely Automated: Lower Cost than Database on IaaS or On-Premise

• Automatically Provision On-Demand Elastic Compute and Storage

• Automated Backup and Recovery

• Automated Patching and Upgrade

• Automatically Provision Data Guard

• Automatically Provision Real Application Clusters: RAC (coming soon)

• Complete Monitoring and Management Portals

32


Oracle Cloud Infrastructure Secure, Reliable, Low Cost


Oracle Cloud: Infrastructure as a Service Move Non-Java Applications to IaaS

• Compute

• Storage

• Linux

• VM

34


Infrastructure as a Service: Compute Cloud

• Elastic Compute & high availability

• Flexible configuration with orchestrations

• Management: root VM Access, REST APIs

• General Purpose & High-Memory instance families

• Network isolation; elastic IP addresses

35


Infrastructure as a Service: Storage Cloud

• Store & manage digital content

• Java & REST API (OpenStack Swift)

• Access using cloud and on-premise clients

• Secure and granular access control

• Performance, scalability, high availability

36


Infrastructure as a Service: Commodity Pricing

• Same Price as Amazon Web Services, Microsoft, etc.

• Pay only for what you use

37


Oracle Platform & Infrastructure Services

Integration

Business Intelligence

Process

Mobile

Documents

Java Developer

Lin

e o

f B

usi

nes

s U

ser

IT/D

evel

op

er

Database

Compute Storage Messaging

Social

Identity Performance Monitoring & Analytics

Big Data

A Complete Portfolio of Services


Metered and Non-Metered Services Commercial Models

Metered:

• You Phone Subscription

– Pay for Talk Time, Text Messages and Data

– You can pay at end of each month in case of subscription

– You can have pre-paid model, where you pay up front

Oracle Confidential – Internal/Restricted/Highl

39

Non-Metered:

• You Cable/TV Subscription

– Pay for service to watch TV

– No matter how much or how little you watch TV, you pay same amount every months


Pattern Usage Types

CXO driven strategy to shift to cloud Dev/Test, custom apps, storage etc.

SaaS application needs extensions Custom apps to integrate with systems/data on premises

LOB needs agile & elastic platform Mobile extensions & time bound apps

ISV’s need elastic/global cloud platform Shifting existing apps to SaaS to reach newer segments/markets

Customer Usage Patterns


Oracle Cloud: Database and Java Cloud Service Features

• Essential management by Oracle

• Oracle managed backup with point-in-time recovery

• Oracle managed patching and upgrades

• Oracle Database and WebLogic (11g / 12c)

• Dedicated Virtual Machine with Database or Weblogic

• Managed by Customer with full access

• Managed by customer with full access

• New cloud tooling for simpler management

• One-click automated backup with point-in-time recovery

• One-click patching and upgrades

Cloud Tooling

Easy-to-use Management

Virtual Image

Pre-configured, automatically

installed Software

Managed (Future)

Oracle manages the Service


Focus on DBaaS

Private Cloud


Private Cloud DBaaS from Oracle

• Market Drivers – Reduce Cost and Risk; Increase Agility

– Reinvent IT to become a service provider


• 55 Locations for Oracle Database

• 9,085 Oracle databases

• ~3,400 total DB servers across 37,000 cores

• 6PB Storage (3 PB usable)

• > 80 combinations of DB/OS/HW

• No standard approach to copy/dblink/backup

• Growth Rates:

5% YOY compute

30% YOY storage

• Run & maintain & engineering cost ~$63M

An Example - Initial Examination


Software Licenses

T4

ODA

Oracle Advantage

Half the CPU cores VM / OS included – no cost


DBA Admins Productivity Gains: Exadata and Platform Advantage

$ 49,200,000

(@ $164,000 / DBA)

Business As Usual

*

$ 25,748,000

(@ $164,000 / DBA)

$ 20,664,000

(@ $164,000 / DBA)

Competitive – x86 Oracle

* Industry Average Databases per DBA

(Productivity Gain: 65% better)

30% REDUCTION In Databases

• Faster Provisioning

• Full resource mgt incl. IO, network (Enterprise Manager)

• Enhanced Availability

• Platinum Support

• Pre-tuned, optimized for both OLTP, DW


28% Reduction in TCO Over 5 Years

$0 $100 $200 $300

RUN|MAINTAIN *

5-YEAR TCO [ $M ]

VM MIGRATE

CURRENT

ORACLE SOLUTION

Off-The-Shelf - x86 (Competitive)

$225M

$314M

$278M

$136M

$148M

DB LIC STORAGE SERVER

SUPPORT

SUPPORT

EXADATA

37,000

ORACLE SOLUTION

CPU CORES

80% LESS

7,300

PHYSICAL SERVERS

3,300

ORACLE SOLUTION 80% LESS

150

* Run|Maintain includes cost of SysAdmin, Storage Admin and DB Admin

MIGRATE

RUN|MAINTAIN *

RUN|MAINTAIN *


• 55 Locations for Oracle Database

• 8,900 Oracle databases

• ~3,400 total servers across 37,000 cores

• 3 PB usable storage data

• Non-Production to be reduced by 50%

• Sufficient DB Licenses for future growth

• Growth Rates:

5% YOY compute

30% YOY storage

• Run & maintain & engineering cost ~63M

• 2x reduction in locations for databases

• 30% reduction in Oracle databases

• 21x reduction in server

17x reduction in PRD servers

42x reduction in Non-PRD servers

• 5x reduction in server cores

• 30% increase in available storage

• Storage growth to remain flat with HCC

• Reduced 63 configurations to 3

• TCO reduced 28% annually

ORIGINAL STATE BENEFITS


Private Cloud DBaaS from Oracle

• Simplifying Private Cloud


Simplifying the Private Cloud

Active Data Guard – Data Protection, DR – Query Offload

GoldenGate – Active-active – Heterogeneous

RMAN, Oracle Secure Backup – Backup to tape / cloud

Active Replica

Edition-based Redefinition, Online Redefinition, Data Guard, GoldenGate – Minimal downtime maintenance, upgrades, migrations

RAC – Scalability – Server HA

Flashback – Human error

correction

Production Site Application Continuity – Application HA

Global Data Services – Service Failover / Load Balancing

SILVER

GOLD

BRONZE

PLATINUM

Comprehensive HA and DR Online or low Downtime DB Maint Zero or Near-zero data loss

High Availability (HA) Online IF Maint & Select DB Patches Data protected as of last backup

Basic Service Restart Offline Maintenance Data protected as of last backup

Zero Outage for Platinum Ready Apps Online Maintenance Zero data loss


Seamless user and application experience Two step deployment process

Database Services

1. User selects desired service class

2. Application connects to database service

BRONZE

SILVER

GOLD

✔ Database

Services

Service is automatically deployed using pre-defined templates using optimal consolidation

and cloud deployment models


Define Oracle service catalog of Standardized Offerings

• Enable standardization across all deployment models

• Enable portability and migration between deployment models

• Enable hybrid cloud deployments

PLATINUM

GOLD

SILVER

BRONZE

Private Cloud Oracle Cloud

✔

✔

✔

✔

✔

✔


GOLD Business-critical Customer Facing

SILVER Production Departmental

BRONZE Development Test

PLATINUM Mission-critical Trading

Oracle DBaaS Service Offerings


DBaaS Basic Provisioning Workflow

Capabilities

• Workload • Optional capabilities • Services • etc., ….

4 – Add Capabilities

✔

Capacity

S | M | L | XL Server / Load S | M | L | XL Storage

2 – Select Capacity

✔

✔

Service Tier

SILVER

GOLD

✔

1 – Select Service Tier

PLATINUM

BRONZE

Security Upgrades

SILVER

GOLD ✔

3 – Upgrade Security

PLATINUM

BRONZE


GOLD Comprehensive HA and Disaster Protection Online or low Downtime Database Maintenance Zero or Near-zero data loss

SILVER High Availability (HA) for Recoverable Local Outages Online Infrastructure Maintenance and Select Database Patches Data protected as of last backup

BRONZE Basic Service Restart Offline Maintenance Data protected as of last backup

PLATINUM Zero Outage for Platinum Ready Applications Online Maintenance Zero data loss

Oracle Database Availability Levels


GOLD Regulatory compliance data PII, PCI, PHI, SOX, …

SILVER Corporate Internal need-to-know data Business transactions, orders, …

BRONZE Non-sensitive data, masked dev/test Internal portals, directories, …

PLATINUM Highly sensitive & restricted data Qtr Sales, M&A, IP, Source code, …

Oracle DBaaS Security Levels


DBaaS BOM – Bronze Service Tier (Base Offering)

Agility

Delivers Bronze standardized service

Product / Option

Enterprise Edition

Multitenant

DB Lifecycle Mgmt Pack

Cloud Mgmt Pack for DB

Diagnostics Pack

Tuning Pack

TOTAL (all-inclusive)

Performance

Security

Availability


DBaaS BOM – Silver Service Tier

Agility

Delivers Silver standardized service

Product / Option

RAC / RAC One Node

Enterprise Edition

Multitenant



Diagnostics Pack

Tuning Pack


Performance

Security

Availability


DBaaS BOM – Gold Service Tier

Agility

Delivers Gold standardized service

Product / Option

Active Data Guard

RAC

Enterprise Edition

Multitenant



Diagnostics Pack

Tuning Pack


Performance

Security

Availability


Product / Option

GoldenGate

Active Data Guard

RAC

Enterprise Edition

Multitenant



Diagnostics Pack

Tuning Pack


DBaaS BOM – Platinum Service Tier

Agility

Delivers Platinum standardized service

Performance

Security

Availability


Capabilities Option Bronze Silver Gold Platinum

Monitor and Block

Audit Vault and Database Firewall

✔

Label Security ✔

Control Access

Database Vault ✔ ✔

Key Vault ✔ ✔

Secure Data

Advanced Security ✔ ✔ ✔

Data Masking ✔ ✔ ✔

Secure Config

EM DBLM Database auditing

✔ ✔ ✔ ✔

DBaaS BOM for Security Service Levels


Option Use Case

Database

Partitioning 1. Performance for DW workloads 2. Storage > 1/2 TB

In Memory 1. DW 2. Mixed (analytics against real-time OLTP)

Advanced Compression Storage > 1/2 TB

OLAP Workload type

Advanced Analytics Workload type

Spatial and Graph Workload type

TimesTen Application-Tier DB Cache OLTP with micro-second latency reqt’s (financial, Telco)

Enterprise Manager

RAT Test system changes before going to production

Test Data Management Pack Referentially valid subsets of prod data needed (for dev / test / training)

Industry Models

Retail Data Model Retail DW and OLAP

Comms Data Model Comms DW and OLAP

Airlines Data Model Airlines DW and OLAP

Utilities Data Model Utilities DW and OLAP

DBaaS BOM for Optional Capabilities

European Support Teams

63

Insight

Cloud Strategy, ROI assessments,

Enterprise Architects

Technical Architecture, Migration plans

64

• .

The IT Strategy & Insight Team brings to you a combination of dense competency for technology and business.

Experts From Leading Technology Players

NORTEL

ATOS ORIGIN

OR

AC

LE

DATA MONITOR MICROSOFT

LUCENT HP

DELL

NEC

ERICSSON IBM

GARTNER

FUJITSU

CISCO

INFOSYS

COMPUTER ASSOCIATES

Worked at Leading Consultancies

BCG

DELOITTE

MCKINSEY AT KEARNEY

ACCENTURE

MONITOR

BOOZ ALLEN

CAP GEMINI

OLIVER WYMAN

KPMG

ERNST & YOUNG

25 MBAs and PhDs From Top Rated Universities

INSEAD

SDA Bocconi

Rotterdam School of Management

Universidad Politécnica de Madrid

University of Chicago

London Business School

ETH Zurich

KTH Stockholm

EBS, Oestrich-Winkel

A Team With Rich Experience - 4 former CIOs

34 Insight Directors in EMEA

Average Work Experience of 18 Years

Spread across 17 Nationalities in Europe

Done > 1.000 Customer Engagements

To serve your Needs

The Oracle Cloud Provide all Three Layers of Public Cloud Services: SaaS, PaaS, IaaS

• Software as a Service: Lots more enterprise SaaS applications

• Platform as a Service: Easy to move existing applications to the cloud

• Infrastructure as a Service: Secure, reliable, lowest cost

– Enabled by Innovation: Engineered Systems, servers, storage, silicon

65

Enable All Three Layers of Private Cloud Services: SaaS, PaaS, IaaS

• Software as a Service: Full suite of on-premise applications

• Platform as a Service: Creation of DBaas, MWaaS with minimal risk

• Infrastructure as a Service: Servers, operating systems and Management tooling

Enabled by Innovation: Engineered Systems, servers, storage, silicon

Enable Hybrid deployments on Public and Private

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

CX Central Welcome Keynote

Aaron Shidler Vice President, CX Industry Oracle Product Development October 1st, 2014

Lead your Industry and Deliver ROI Through Customer Experience


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.


Program Agenda

The CX Initiative

Oracle CX Solutions

Summary

Q&A

1

2

3

4

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | 5

social

mobile

y-gen

self discovery

buying

learning

targets

choice

value

expectation

information

Your Customer has

CHANGED


of execs say customer experience is critical

to their business advantage

are just getting started with a customer experience initiative

consider their customer experience initiative to be advanced

97% 39%

20%

Source: 2013 “Global Insights on Succeeding in the Customer Experience Era” (2013)

And statistics indicate there is progress to be made


Social

Mobile

Store

Call Center

Website

eCommerce

Need > Research > Select > Buy > Use > Recommend

Individual disconnected interactions? or the connected customer journey?

The Grand Disconnect


49% of CEOs think customers

will switch due to CX

89% of customers have switched to a competitor precisely because of poor CX

43% of customers have had a consistent positive experience with the brand

But only 80% of CEOs believe they

give good CX

the brand

Source: “Global Insights on Succeeding in the Customer Experience Era,” Oracle, (2013, )from market research survey of 1,300 global senior execs in North America, Europe, Asia Pacific and Latin America .

Perception Chasm in the C-Suite


In only two years, 90% of companies expect to compete almost entirely on the basis of customer experience.

9

Source: Gartner, Laura McLellan, Gartner research, referenced in AdAge, Sept. 2014

Why Start Now?


CUSTOMER BRAND

Oracle Customer Experience Connecting Every Interaction Your Customer Has With Your Brand


Program Agenda

The CX Initiative

Oracle CX Solutions

Summary

Q&A

1

2

3

4


Oracle Marketing

Integrated Customer Experience Foundation

Social Network Mobile Integrations

Oracle Sales

Oracle CPQ

Oracle Commerce

Oracle Service

Analytic KPIs & Dashboards

Predictive Analytics

Oracle Customer Experience The Complete Customer Experience Platform

Oracle Social


Complete Modern Marketing, Selling, Commerce, Service, Social apps that empower the customer

Tailored for Industries

Best Practices for Competitive Advantage and lower TCO

Insightful and Extensible

1

3

2

4

Drive greater business value deliver pre-built business

processes across silos Modern

Empowered Customer

Cross-Channel

Extend solution, use Dynamic CX profile and Integrate to the Enterprise

Oracle Customer Experience Enabled in the Cloud


Service Knowledgebase & Customer Engagement

Field Sales & Agent Empowerment Agile Customer Service Center

Commerce Dynamic Personalized experience management

Scalable Cross-Channel Commerce Multi-site branding

CPQ Sell more with effective cross-sell /upsell

Easy setup for Configurable Products Flexible Approval Workflow

Sales Easy, Adaptable and Collaborative Selling

Customer Insight and Pipeline Building Mobility and Productive Selling

Social Social Relationship Management

Social Insights and Service Personalized Interaction

Sales Service

Marketing Social

CPQ Commerce

Marketing B2C Orchestrated Cross-Channel Campaigns

Social and Modern Marketing Content B2B Lead Generation

Oracle Customer Experience Broadest solution capabilities to support your customers’ journey


https://www.youtube.com/watch?v=lzyu_zpyLkQ

Financial Services Showcase

https://www.youtube.com/watch?v=lzyu_zpyLkQ&feature=youtu.be


Customer Experience Marketing

Web Marketing

Mobile Advertising

Social Marketing

Data Management Platform

Display Advertising

Multi-Channel Campaign Management

Targeting and Segmentation

Marketing Measurement


Sales Prediction

Leads and Opportunities

Partner Relationship Management

Forecasting Sales Campaigns

Territory Management

Customer Data Management

Quota & Compensation Management

Customer Experience Sales


Price Quote

Search & Personalization

ERP, Supply Chain & E-Signature Integration

Recommendations Catalog Management

Configure

Transaction Mgmt.

Customer Experience Commerce & Configure-Price-Quote


Mobile Self-Service

Chat and Co-Browse

Cross Channel Contact Center

E-mail Management

Support Communities

Knowledge Management

Web Customer Service

Policy Management

Customer Experience Customer Service


Customer Experience Social Relationship Management

Social Marketing

Social Data & Insight

Social Networking & Collaboration

Social Listening & Engagement


175%

50%

30%

Increase in revenue attributed to marketing

customer response rates to campaign

New customer growth

20% Growth in year-to-

year revenue

95% Reduction in time to

create reports

50% Gain in product

penetration

$5.5M in contribution

margin

30% increase in ASP

8 minutes from discussion to signature via iPad

56% increase in online

sales

10-60% increase in avg.

order value

5-10X Faster time to

market

$350K-$5M Annual Savings

45% Jump in new orders

40% Drop in tech support

inquiries

$1M+ Saved by preventing

PR crisis

20X social follower

growth, 5x social engagement growth

2X Faster customer

acquisition

Head of Sales

Head of Sales Ops

Head of Commerce

Head of Service

Head of Social

Head of Marketing

Results Being Realized by World-Class Companies


Powerful Integration to create Customer Intimacy

Example integrations • Marketing/Sales Cloud • Services/Social Cloud • Commerce/Social Cloud • Social/Marketing Cloud

Unique value of CX integrations • Higher sales revenue • Greater customer retention/loyalty • Reduced time to market and results • Lower cost and improved value of using unified suite

Delivered and planned Integrations • Over 37 cross-channel integrations developed • 11+ cross-channel integrations planned for FY15 • Integrations to 120+ Application Marketplace partners

One Experience

Sales Service

Marketing Social

CPQ Commerce

Cross Channel We integrate the cross-channel journey that your customers experience


Benefits:

Extend capabilities

One cloud platform

Streamlined development

to create new features and new applications

with standards-based tools

with applications portable to other platforms

Example Use Cases:

Create a Mobile App 1

2

3

4

5

External Document Sharing

Unify and Simplify BI

Get certified 3rd Party Apps

Develop App & Access External Data

Enrich Your CX Cloud with Oracle Cloud PaaS


Leverage CX platform for Competitive Advantage

Insightful and Extensible Know your Customers; Integrate and Extend your CX platform

Ability to Extend CX applications and Build Your Own Compose UI and data structures in Fusion; extend with

Oracle or other PaaS providers. Leverage Groovy and Java for custom applications

Ease of Leveraging Investments made in Enterprise Integrate on-premise with cloud applications to efficiently

automate key business processes Powerful Business Intelligence across Customer Journey Analytics included with CX applications or consolidate with

Oracle Analytics Cloud (coming soon)


25

Oracle CX Cloud

Rich tailoring capabilities

Mobile support Embedded social

collaboration Tailor approvals/

workflows

Database Services

Data storage Data import

Mobile Services

Mobile APIs Federated identity Mobile security Any platform,

any device

Developer Services

Source code management

Build deploy tools Web service

repository

Java Services

Logic and business rules

UI modifications Full power of J2EE

Marketplace 3rd party apps

Unique apps By cloud partners Certified

BI Services

Enterprise analytics

Reporting

Document Services

External document collaboration

Offline syncing Web, mobile,

desktop

One Cloud Platform

Personalize Your CX Cloud Tailor within SaaS. Enrich with PaaS.


Pre-built with best practices for your business needs

Enhanced View of Industry Solution

• Enhanced ability to see how Oracle products address your industry-specific Customer Experience initiatives

Blueprint for Each Industry

• Best practices for configuration/integration of Oracle CX products with other products (Oracle and non-Oracle)

Accelerated Customer Deployment

• Superior ability for Consulting partners to speed deployment through: – Reference configurations – Integrations – Industry best practices

Tailored for Industries Reference Architectures /Blueprints to Accelerate Adoption & Time to Value


Program Agenda

The CX Initiative

Oracle CX Solutions

Summary

Q&A

1

2

3

4


Modern CX Cloud: Customer Examples

http://www.petinsurance.com/

http://www.pikotek.com/index.jsp

http://www.apptix.com/default.asp

http://www.christiedigital.com/en-us

http://www.speridian.com/index.php

http://www.crmnow.com.au/

http://www.enigen.it/

http://www.ibasis.com/index.aspx

http://www.internetsolutions.com/index.html

http://www.crunchbase.com/financial-organization/ngi-capital

http://evosys.co.in/

http://csolutor.fi/

http://www.infactgroup.com/en/

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 29

Comprehensive, Modern and Complete B2B, B2C, Multi-Channel, Mobile, User-centric Data Driven Big Data, DaaS, Data Cleansing, Social Data

Global and Industry Reach Industry Coverage, Global Capabilities, Secure

Platform and Ecosystem Integrations, PaaS, IDM, Analytics, Marketplace

Oracle Customer Experience Key Differentiators


Program Agenda

The CX Initiative

Oracle CX Solutions

Summary

Q&A

1

2

3

4

The CIO in 2020: Driving Innovation and Growth

Philip Carter

Vice President, IDC European Research

Presentation at the Oracle Iberia CIO Innovation Day,

1st October 2014, Oracle Openworld San Francisco

68% of Iberian organizations

have gone through

a major IT re-organization

in the last 12 months

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2

IDC Spanish IT Executive Survey. April 2014, n=199

52% of Iberian

organizations have

created a new group

focused on

innovation



In 67% of Iberian

organizations,

the business

has become more

involved in IT strategy




Application Modernisation

Legacy Outsourcing Contracts

Data Center Strategies

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=QkOsbbJ-FHdJJM&tbnid=WDrcoqBMQ2lmvM:&ved=0CAUQjRw&url=http://personaaffairs.wordpress.com/2013/08/20/do-you-have-a-ball-chain-resume/ball-and-chain/&ei=0QmXU5gyw986pZSB-Ac&bvm=bv.68445247,d.ZGU&psig=AFQjCNG_muWJbkR8SLTzDNxCFqT6a6TGhw&ust=1402493769684934

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=QkOsbbJ-FHdJJM&tbnid=WDrcoqBMQ2lmvM:&ved=0CAUQjRw&url=http://personaaffairs.wordpress.com/2013/08/20/do-you-have-a-ball-chain-resume/ball-and-chain/&ei=0QmXU5gyw986pZSB-Ac&bvm=bv.68445247,d.ZGU&psig=AFQjCNG_muWJbkR8SLTzDNxCFqT6a6TGhw&ust=1402493769684934

3rd Platform of IT Innovation & Growth


ICT Innovation

1985-2005

ICT Innovation

2005-2020+

© IDC Visit us at IDC.com and follow us on Twitter: @IDC8

The 3rd Platform is a Business Platform that is Transforming Organizations

The transformation of products and services

The transformation of workforce

The transformation of customer relationships

The transformation of business models

Governance, Risk & Compliance


In 2013, Domino’s Pizza sold £104 million worth of pizza via its mobile platform in the UK and Ireland alone

http://www.google.com/url?sa=i&rct=j&q=dominos+pizza&source=images&cd=&cad=rja&docid=HXJ5-s0DmGUw7M&tbnid=IYIU9JPRW__8WM:&ved=0CAUQjRw&url=http://choucroutegarnie.fr/choucroutes-maison/notre-mega-test-dominos-pizza/&ei=LOEAUq2nC4q1hAfFj4GQDg&bvm=bv.50310824,d.ZG4&psig=AFQjCNHB8kQspPMn22frXfNh9Abr4uyIfQ&ust=1375875753111805

http://www.google.com/url?sa=i&rct=j&q=dominos+pizza&source=images&cd=&cad=rja&docid=HXJ5-s0DmGUw7M&tbnid=IYIU9JPRW__8WM:&ved=0CAUQjRw&url=http://choucroutegarnie.fr/choucroutes-maison/notre-mega-test-dominos-pizza/&ei=LOEAUq2nC4q1hAfFj4GQDg&bvm=bv.50310824,d.ZG4&psig=AFQjCNHB8kQspPMn22frXfNh9Abr4uyIfQ&ust=1375875753111805

http://www.google.co.uk/url?sa=i&rct=j&q=dominos+mobile+app&source=images&cd=&cad=rja&docid=UDVtM45kK2-ZDM&tbnid=wL-tVr_gLqn9oM:&ved=0CAUQjRw&url=http://www.bmobilized.net/blog/dominos-pizza-android-app-serves-up-140000-downloads/&ei=WeEAUvDlI8LMhAfunYFo&bvm=bv.50310824,d.ZG4&psig=AFQjCNGPOh5zfLmC7gEfxkIchQEFHjpRUA&ust=1375875790523584

http://www.google.co.uk/url?sa=i&rct=j&q=dominos+mobile+app&source=images&cd=&cad=rja&docid=UDVtM45kK2-ZDM&tbnid=wL-tVr_gLqn9oM:&ved=0CAUQjRw&url=http://www.bmobilized.net/blog/dominos-pizza-android-app-serves-up-140000-downloads/&ei=WeEAUvDlI8LMhAfunYFo&bvm=bv.50310824,d.ZG4&psig=AFQjCNGPOh5zfLmC7gEfxkIchQEFHjpRUA&ust=1375875790523584

Managed

Business Innovation

Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform

Opportunistic

2nd Platform IT

Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption

Ad Hoc

Core IT

No effort between business and IT to coordinate or incorporate 3rd Platform technology

Repeatable

3rd Platform IT

Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption

Optimized

Business Transformation

Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it.

Opportunistic

2nd Platform IT


Managed

Business Innovation


Source: IDC, Enterprise IT Transformation Maturity Model, 2014

Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



Transforming to a Business Innovation IT OrgIDC’s Enterprise IT Transformation Maturity Model


Managed

Business Innovation


Opportunistic

2nd Platform IT


Ad Hoc

Core IT


Repeatable

3rd Platform IT


Optimized



15%

BusinessInnovation

6%

Core IT

4%

BusinessTransformation

Are You Transforming Your IT Org Fast Enough?


67% of Organizations are Operating at a2nd Platform IT or 3rd Platform IT Transformational Stage

40%

2nd PlatformIT

27%

3rd PlatformIT

Source: IDC's Enterprise IT Transformation MaturityScape Benchmark Study, August, 2014. n-156

Move outside your process comfort zone

Deliver technology the way the business wants

Cultivate tomorrow’s IT talent today

1 2 3

Accelerating Transformation Requires You to…



48

Kaiser Permanente

Develop a Multi-Pronged Approach

Source: www.kaiserpermanente.org.

EnterpriseArchitecture #1 Hardest to Hire

How difficult is it to hire suitable candidates?

The 3rd Platform will Create a Skills GapThe Most Difficult IT Positions to Staff

Source: IDC CIO Summit, April, 2014.


Risk Management Contracts

Run

Build

Buy

Short Term

Transactional Model

2nd Platform Vendor Sourcing Models

Trusted Relationship Contracts

Data Driven Management

Integrate

Acquire Capability

Long Term

Relationship Model

3rd Platform Vendor Sourcing Models

3rd Platform Requires a Different Sourcing Model





1 2 3



Urgency, Speed, Time to Market =

The Next Wave of Shadow IT


%6According to ITPercent of Technology

Spending that is Shadow

Source: IDC Business Technology Study, May 2014 and IDC CIO Sentiment Study, January, 2014

According to BusinessPercent of Technology


%6 %6IAccording to ITPercent of Technology


6

Shadow IT: What You Don’t Know Will Hurt You


How you communicate with the business is just as important as

what you communicate

Source: Magna International

Selling Your Services





1 2 3



IT-enabled Services

Transforming Business Processes

IT-enabled Business Processes

Automating Business Processes

IT-enabled Products

Creating IT-enabled Products

IT-enabled Products is the End Game


62%

IT-enabled Products

Creating IT-enabled Products

IT-enabled Services

Transforming Business Processes

IT-enabled Business Processes

Automating Business Processes

18%20%

Moving Outside Your Comfort Zone

Source: IDC 2014



Best Practices

Need to Evolve

This is what continuous improvement can get you

Product Enhancements

Innovation

Continuous Improvement Versus Innovation


© IDC Visit us at IDC.com and follow us on Twitter: @IDC27

The transformation of products and services

The transformation of workforce

The transformation of customer relationships

The transformation of business models

Think innovatively. Think new trajectories.