oracle’s strategy for the high technology industry - p14

8/4/2019 Oracles Strategy for the High Technology Industry - P14

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Oracles Strategy for the High Technology Industry

Jonathan OomrigarVice President, High Technology Business Unit


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Copyright 2008, Oracle. All rights reserved.Oracle Confidential

The following is intended to outline our general

product direction. It is intended for informationpurposes only, and may not be incorporated into anycontract. It is not a commitment to deliver anymaterial, code, or functionality, and should not be

relied upon in making purchasing decisions.The development, release, and timing of anyfeatures or functionality described for Oraclesproducts remains at the sole discretion of Oracle.


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Oracle High Technology

All of the Top 30Fortune 500 High Technology Companies

Run Oracle Applications AND Technology

Source: Forbes Worldwide Fortune 500 list July 2008 using 2007 data


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SaaS, Internet Services

Desktop Applications

Enterprise Applications

Infrastructure

SoftwareSoftware

Technology Distribution

Consumer ElectronicsDistribution

Component Distribution

DistributionDistribution

PCB Manufacturers

Original DesignManufacturers

Electronic ManufacturingServices

OutsourcedOutsourced

Mfg. ServicesMfg. Services

Consumer Electronics

Complex Equipment

ElectronicGaming

WirelessHandsets

PersonalElectronics

Peripherals

Computing

Networking

EnterpriseHardware

OfficeEquipment

Semi CapitalEquipment

OEMsOEMs

SolarPanels

SemiconductorMaterials

Assembly& Test

Wafer

Foundry

Flat PanelDisplay

IDM

Fabless

SemiconductorSemiconductor

Oracle Views High Technology as Five Distinct Segments


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FY09 is the Year to

Further Accelerate Market Capture

Key wins in FY08 should Yield new Momentum in FY09

Additional Acquisitions and Investments for HighTechnology


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Performance Demands StandardizationBest Practices in Your Enterprise Business Processes

Enterprise ProcessesEnterprise Processes

Financial Management

ComplianceHuman Resources

DomainDomainofof

Best PracticesBest Practices


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Core Value-Creating Processes

Enterprise ProcessesEnterprise Processes

Core Value-Creating ProcessesCore Value-Creating Processes

InnovationInnovationof Productsof Products

and Servicesand Services

CustomerCustomerAcquisitionAcquisition

andandRetentionRetention

FulfillmentFulfillmentOperationsOperations

TalentTalentAcquisitionAcquisition

andandRetentionRetention

Financial ManagementFinancial Management

ComplianceComplianceHuman ResourcesHuman Resources

DomainDomainofof

Best PracticesBest Practices

DomainDomainofof

DifferentiationDifferentiation

Performance Demands StandardizationIn the Processes Where You Achieve Competitive Advantage


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APPLICATIONS

EnterpriseEnterprise

HighHighTechnologyTechnology

RetailRetail

CommsComms

BankingBanking

InsuranceInsurance

UtilitiesUtilities

OthersOthers

TECHNOLOGY

EnterpriseEnterprise

PerformancePerformance

ManagementManagement

IdentityIdentityManagementManagement

ContentContent

ManagementManagementMiddlewareMiddleware

ManagementManagement

DatabaseDatabase

SystemsSystemsManagementManagement

Acquisition of Best-in-Class Companies

~ $35 Billion in Targeted Acquisitions (over 40 companies)


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Investments to Support High TechnologyA Sustainable Acquisition Strategy Combined with $3B Annual R&D

Oracle becomes #1 withBest in Class: Middleware

EmbeddedTechnology

Best in Class:Content Management

Best in Class:Product Lifecycle Management

Best in Class:Enterprise Virtualization Solution

Best in Class:Demand Forecasting and S&OP

Best in Class:Transportation Management

Best in Class:CRM and PRM

Best in Class:Price Management

Best in Class:Strategic Operational Planning

Best in Class:Enterprise Performance Management

Best in Class:Governance & Compliance

Innovation ofInnovation ofProducts andProducts and

ServicesServices

CustomerCustomerAcquisitionAcquisition

and Retentionand Retention

FulfillmentFulfillmentOperationsOperations

TalentTalentAcquisitionAcquisition

and Retentionand Retention

Financial ManagementFinancial Management

ComplianceComplianceHuman ResourcesHuman Resources

DomainDomain

ofofBest PracticesBest Practices

DomainDomainofof

DifferentiationDifferentiation


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Siebel

Agile

Demantra

Transportation ManagementHyperion

E-Business Suite Content Management

PeopleSoft

AutoVue

LogicalApps

Significant Investment In Research & Development

~ $9.5 Billion of Cumulative Applications R&DR&D Spending

$M

~ 20% CAGRover 5 years

$1,859

$2,195

$2,741

$1,482

FY05 FY06 FY07 FY08

$1,277

FY04

D A T A B A S E

Business Intelligence


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Our Strategy is working

Total Revenue

$B

$11.8$14.4

$18

$22.4

FY05 FY06 FY07 FY08

$5,521 M$5,521 M

38%38%

RevenueRevenue

Net IncomeNet Income

Application LicenseApplication License

$22,430 M$22,430 M

Database and Middleware LicenseDatabase and Middleware License 24%24%

EPSEPS

29%29%

25%25%

$ 1.06$ 1.06 30%30%

Total New Software LicensesTotal New Software Licenses 28%28%

Over20% CAGR Targeting +30% CAGR

One of the Top 3 Strategic Groups within Oracle

Fastest Growth Rate of Any Vertical Team

Oracle in the High Technology Industry

Oracle Fiscal Year 2008 Results


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Oracles 5 year Projected Growth plan

Total Revenue$B

$11.8$14.4

$18

$22.4

FY05 FY06 FY07 FY08 FY13

Projected

$50B

Oracle

43%

Others

57%

Oracle

55%

Others

45%

High Tech IndustryApplications & Middleware

Market Share

Today

To Support OurProjected Growth


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Platform Partner Invest in an End-to-End Process

Semiconductor OEM Complex Equipment

OEM Consumer Electronics

Goal: Enabling Integrated End-to-End Industry Processes by Segment

MarketingAutomation

MarketingAutomation

Retail AccountMgmt.

Retail AccountMgmt.

PricingNegotiation

PricingNegotiation

ConsumerMgmt.

ConsumerMgmt. Order Capture

Order Capture OrderMgmt.

OrderMgmt.

FulfillmentConfirm. &Expediting

FulfillmentConfirm. &Expediting

ReceivablesMgmt.

ReceivablesMgmt.

RetailSettlement

Mgmt.

RetailSettlement

Mgmt.

Sales Com-pensation

Payout

Sales Com-pensation

Payout

PerformanceAnalysis

PerformanceAnalysis

Distribution Outsourced Manufacturing Services

Software


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oracle’s strategy for the high technology industry - p14

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