5. How The World Develops…
Anti
Thesis
thesis
Syn Anti-
thesis thesis
6. How Does That Apply to the World of IT?
Best of Breed … Support business automation
(general ledger, order entry)
One Stop Shop
“Thesis”
… Business integration
(ERP, CRM)
“Antithesis”
7. The New IT Paradigm
Single Middleware, Best Of Breed Applications
“Synthesis”
… Support value chain integration, and
integration of performance, risk and operations
8. How Does That Apply to the World of IT?
Best of breed One Stop Shop
(+) Flexibility (+) Industry best practice
(-) Integration burden (-) Lock-in
Work with many vendors Work with a single vendor
Age of Development Age of Application
“Creating Flexibility” “Creating efficiency”
“thesis” “antithesis”
Fusion
(+) Flexible, no lock-in
(+) Pre-integrated
Work within an ecosystem
Age of Architecture
“Creating Options”
“synthesis”
9. How Does That Apply to the World of IT?
Best of breed One Stop Shop
(+) Industry best practice
(-) Lock-in
Work with a single vendor
Application focus
“Creating efficiency”
“thesis” “antithesis”
Fusion
“synthesis”
11. White Paper:
Business/IT Alignment, An Oracle View
www.oracle.com/thoughtleadership
Don’t judge whether the company has the right
strategy or not, but how it adapts
to changing circumstances.
IT is crucial in providing that flexibility.
IT strategy can be seen as a portfolio of investment
opportunities that can be delayed, expanded, switched or
abandoned when needed, called “real options”.
12. The Bottom Line
Traditional thinking
• Risk and uncertainty depress the value of
an investment
Options-based strategy
• The higher the uncertainty, the higher the
value of agility
• If managing risk is a core competence, risk
adds to the value of an investment (*)
(*) The discipline of making organizations smart, agile and aligned is called “management excellence”
13. Introducing “Technology Excellence”
A Complete, Open, Integrated IT Strategy
Complete Open Integrated
More Business Anticipate Drive The
Opportunities Currently Complete
Through IT Unknown Value Chain
Innovation Needs
14. Complete – The IT Radar
Process
Customer
IT Becomes Cocreation
Core B2C integration
Business Crowd Information
sourcing
Collaborative
processes
Information
Management 2.0 is the product
Expand processes
focus Information (Serious)
Democracy Gaming
Business
processes Pervasive Sensor
computing technology
MIS
Servers,
Traditional Applications,
Mobile Augmented Techno
computing Reality logy
IT Security, etc.
1990s Today
16. Open – Dealing with Long Term and Short Term
• Fast pace of technology development, yet
long-term investment cycles
• The need to anticipate currently unknown
requirements and capabilities in both
hardware and software
• Compose, decompose, recompose business
processes
17. Integrated IT Strategy
Firm Infrastructure
Human Resource Management
Technology Development
Procurement
Inbound Opera Outbound Marketing Service
Logistics tions Logistics Sales
Based on Michael E. Porter’s Value Chain
18. Integrated IT Strategy
Web Channel
Customer Contact Center
Face to Face (Shops, Account Management)
Intermediaries
Based on Michael E. Porter’s Value Chain
19. Integrated IT Strategy
Facility Employee
IT
Management Services
Finance / HR
Channel
Operations Sales
Inbound Product
Development
Logistics Marketing
Operations Procurement Service
Inbound
General Management
Logistics
Operations
Outbound
Logistics
Flow of Goods Flow of Information
21. More Speed, Less Risk:
Creating Options
“We view acquisition as successful R&D without risk.
Customers are actually getting access to a whole
industry’s R&D.”
Charles Phillips, President, Oracle Corp.
22. Creating
Options
• Higher growth, less risk
• Seek out the most effective technology
• Pace, switch, expand investments and acquisitions.
• Respond quickly to new and different requirements
• See trends across various industries.
• Combine operational excellence, product innovation
and customer intimacy.
24. The First Transformation
“The big theme the first time
around was for cost efficiency,
cost reduction, global
consistency and how we run
our business.”
– Jeff Henley,
Chairman of the Board,
Oracle Corp.
25. Oracle’s First Global Transformation
1998 Today
52 application instances 1 application instance
70 HR databases 1 database (plus backup)
140 product pricing databases 1 database (plus backup)
40 data centers 2 data centers (backup included)
97 email servers 4 email servers (backup included)
Inconsistent Business Processes Global Standard Processes
27 Websites with Different Logos 1 Consistent Brand Globally
Fragmented Data Consistent Data and
Global Business Intelligence
Decentralized Decision Making Centralized Decision Making
• Geography • Global process owner
• Line of business • Divisional process owner
• Global application owner
28. The Second Transformation
From Operational Excellence to Management Excellence
• Customer Intimacy
– Global BI, 360 degree view of
the customer
– Information for Everyone
• Operational Excellence 2.0
– Post-merger integration:
Peoplesoft acquisition took 6
months, Siebel 5 months,
Hyperion 3 months
• Product innovation: Oracle is an
ecosystem
– Partners
– User groups
– Open Source community
30. The Oracle Product Strategy
Complete Open Integrated
Comprehensive Standards-Based Designed to
Industry Portfolio Architecture Work Together
More Value More Choice More Flexibility
Less Complexity Less Risk Less Cost
31. Complete
Management & Decision Support Management & Decision Support
Core Core
Back Front Back Front
Business Business
Office Office Office Office
Value Chain Value Chain
Middleware Middleware
Database Data Base
Hardware / Infrastrucutre Hardware / Infrastrucutre
Management & Decision Support Management & Decision Support
Core Core
Back Front Back Front
Business Business
Office Office Office Office
Value Chain Value Chain
Middleware Middleware
Database Database
Hardware / Infrastrucutre Hardware / Infrastrucutre [OS]
33. Integrating Your Enterprise
Integrated business processes
Integrated user experience
Integrated business intelligence
34. Conclusion
• Judge your IT strategy based on its ability to adapt
(not whether the strategy is right or wrong)
• To deliver on such a strategy, focus on architecture
• The most important decisions to make are about
middleware and SOA-based applications
• See www.oracle.com/thoughtleadership for more
