Sebastian J Gunningham Senior Vice President Latin America Division Oracle Corporation
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Transcript of Sebastian J Gunningham Senior Vice President Latin America Division Oracle Corporation
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Sebastian J GunninghamSenior Vice PresidentLatin America DivisionOracle Corporation
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How is How is Information Information TechnologyTechnology
Changing the Business Changing the Business Environment in LatinEnvironment in Latin
America...America...
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Oracle CorporationTwo Software Businesses
Internet Platform Most scalable database offering the
lowest cost of ownership with Internet computing
E-Business Suite A comprehensive, integrated e-
business suite of ERP/Supply Chain and CRM applications
#1#1
#2#2
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What does e-business
really mean?
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The fast beat
the slow
The fast beat
the slow
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C L E R K SC L E R K S
Orders/Information
Fax
Suppliers & Suppliers & PartnersPartners
Suppliers & Suppliers & PartnersPartners
BusinessBusinessApplicationsApplications
Web SiteWeb Site
e-business Today
BusinessBusiness
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C L E R K SC L E R K S
Orders/Information
Fax
Suppliers & Suppliers & PartnersPartners
Suppliers & Suppliers & PartnersPartners
BusinessBusinessApplicationsApplications
Web SiteWeb Site
e-business Today
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ServiceService
Direct SalesDirect Sales
Channel SalesChannel Sales
MarketingMarketing
C U
S T
O M
E R
SC
U S
T O
M E
R S WebsiteWebsite
BusinessBusinessApplicationsApplications
EMPLOYEESEMPLOYEES
Self ServiceSelf ServiceApplicationsApplications
BusinessBusinessIntelligenceIntelligenceApplicationsApplications
SuppliersSuppliersSuppliersSuppliers
ServiceServiceProvidersProviders
ServiceServiceProvidersProviders
True e-business
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e-businesse-businessTransformatioTransformatio
nn
TechnologyTechnologyChangeChangeStructureStructureChangeChange
ProcessProcessChangeChange
CultureCultureChangeChange
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Oracle: an e-business Case
Study
Traditional business Expense Growth
E-Business Expense Growth
Revenue Growth
Goal:Grow sales vs. expenses
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$2 Billion Dollars in Savings?
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Previous New
Goal $ Mil Goal $ Mil
Consolidate IT $200 $250
Sell Side $550 $1,450
Buy Side $150 $200
Inside $100 $100
Total $1,000 $2,000
Previous New
Goal $ Mil Goal $ Mil
Consolidate IT $200 $250
Sell Side $550 $1,450
Buy Side $150 $200
Inside $100 $100
Total $1,000 $2,000
Note: Based on Oracle estimates.
By Becoming an E-BusinessOracle’s $2 Billion Dollar Savings Target
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Technology Change
Technology Change
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Adopt Internet Technology Everywhere
ServiceService
Direct SalesDirect Sales
Channel SalesChannel Sales
MarketingMarketing
WebsiteWebsite
BusinessBusinessApplicationsApplications
Self ServiceSelf ServiceApplicationsApplications
BusinessBusinessIntelligenceIntelligenceApplicationsApplications
SuppliersSuppliersSuppliersSuppliers
ServiceServiceProvidersProviders
ServiceServiceProvidersProviders
100%100%PurePure
InternetInternet
Customer-sideCustomer-side InternalInternal Supply-SideSupply-Side
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Avoid Point Solutions
Marketing HR
Direct Sales
Expenses
Financials Supply Chain
Requisitions
ExchangesService
Channel Sales
Web Marketing
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Everything Needs to Connect Together
Marketing HR
Direct Sales
Expenses
Financials Supply Chain
Requisitions
ExchangesService
Channel Sales
Web Marketing
? ?
?
?
? ?
?
??
?
?
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Move Data and Applications to the Data Center
ApplicationApplication
ApplicationApplication
Data CenterData Center
Application and DataApplication and DataResult:Result:
Lower CostLower CostAdministration andAdministration and
ManagementManagement
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Consolidate Your Data
1 SalesDatabase
100 SalesDatabases
Fewer Computers
Less Software
Less People to manage it
BetterInformation at lower cost
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Consolidate Your Data Centers
Result:Result:Lower cost andLower cost andmore efficientmore efficient
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Technology Change Results
Oracle Global IT Operating Expense
Approx. Costs
People
May ‘99 May ‘00 Dec. ‘00 May ‘01
$600M $500M $450M $400M
1500 1200 1000 800
OracleOracleSavingsSavings$200M$200M
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Process ChangeProcess Change
Process ChangeProcess Change
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Provide Customerswith Self-Service
SalesSales
ServiceService
InformationInformation
Result:Result:Improved CustomerImproved Customer
Satisfaction andSatisfaction andLoyalty at Lower CostLoyalty at Lower Cost
OracleOracleSavingsSavings$550M$550M
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Provide Employees with Self-Service
Employee
Manager Submit
Approve
Action
• Expenses• Orders• Hiring• Travel bookings• Benefits• Holiday approvals
Result:Result:Faster, More AccurateFaster, More Accurate
Transactions atTransactions atLower CostLower Cost
OracleOracleSavingsSavings$150M$150M
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Supplier
Supplier
Supplier Supplier
Supplier
Supplier
Buyer
Reverse-AuctionReverse-Auction
Result:Result:Buy goods moreBuy goods morecompetitively atcompetitively at
lower costlower cost
OracleOracleSavingsSavings
$50M$50M
Make Suppliers Compete for Business
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Forward-AuctionForward-Auction
Compete for Your Customer’s Business
Customer
Customer Customer
You
Competitor
Competitor
Competitor
Result:Result:Quality, prices and/orQuality, prices and/or
speed of deliveryspeed of deliveryenable you to winenable you to win
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Join or Create Internet Marketplaces for your
Industry
ExchangeExchange
Buyers Suppliers
TransactionsAuctions
Strategic Sourcing
Result:Result:Increased sales andIncreased sales and
lower cost purchasinglower cost purchasing
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StructureChange
StructureChange
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Restructure for Global Efficiency
Result:Result:More efficient way ofMore efficient way of
doing businessdoing businessat Lower Costat Lower Cost
Restructure country infrastructure– Sales– Support
Restructure administrative functions– Human Resources– Legal– Marketing
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Manufacture Based On Demand
Deliver the fastest at the lowest cost– Plan and schedule to meet demand– Optimize suppliers globally– Manufacture personalized products– Distribute products efficiently
Result:Result:Deliver personalisedDeliver personalised
products faster and atproducts faster and atlower costlower cost
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Culture ChangeCulture Change
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Think Global
www.<your company>.comwww.<your company>.com
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Think Web First
Marketing, Sales, Service, Purchasing, Manufacturing, Marketing, Sales, Service, Purchasing, Manufacturing, Human Resources, Financial Management, etc.Human Resources, Financial Management, etc.
OracleOracleSavingsSavings
$50M$50M
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Think Internet Time
NowNow NowNow NowNow NowNow
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e-businesse-businessTransformatiTransformati
onon
TechnologyTechnologyChangeChangeStructureStructureChangeChange
ProcessProcessChangeChange
CultureCultureChangeChange
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Oracle e-business Blueprint
Customer Customer ServiceService
Call CenterCall Center
Direct SalesDirect Sales
Web StoreWeb Store
Indirect SalesIndirect SalesChannelChannel
EnterpriseEnterpriseApplicationsApplications
Self ServiceSelf ServiceApplicationsApplications
BusinessBusinessIntelligenceIntelligenceApplicationsApplications
SuppliersSuppliersSuppliersSuppliers
ServiceServiceProvidersProviders
ServiceServiceProvidersProviders
20%20%Cost Reduction inCost Reduction in
Customer InteractionCustomer Interaction
withwith
IncreasedIncreasedSales EffectivenessSales Effectiveness
andandCustomer SatisfactionCustomer Satisfaction
20%20%Reduction inReduction in
Operating CostsOperating Costs
withwith
IncreasedIncreasedEfficiencyEfficiency
andandProduct/ServiceProduct/Service
QualityQuality
20%20%Reduction inReduction inSupply CostsSupply Costs
withwith
IncreasedIncreasedEfficiency andEfficiency and
Lower InventoryLower Inventory
Customer-sideCustomer-side InternalInternal Supply-SideSupply-Side
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