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1   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
Harnessing Value of Retail Applications with
           Oracle Engineered Systems
           Sanjeev Sharma
           Principal Product Director
2          Oracle Exalogic Elastic Cloud
    Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
of consumers will
                               86%                                                        PAY MORE for a better
                                                                                          Customer Experience.*
3   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential   *Source: Harris Interactive Customer Experience
                                                                                                          Impact (CEI) Survey, September 2011
CUSTOMER EXPERIENCE BOOSTS REVENUE




                                                                                                                  REVENUE

    10% point increase in
    Customer Experience                                                                                   =       $2.2B
    Index


    Source: Forrester Research, “Customer Experience Boosts Revenue”, Bruce Temkin, June 22, 2009
    *The increase in revenue include that from Additional purchases, Churn reduction and Word-of-mouth advocacy



4   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
mobile
By 2014, the web will                                                                                           social
directly account for 8% of                                                                                                                               Mobile commerce will
U.S. retail sales and influence
                                                                                                                 local
                                                                                                                                                         reach $31 billion by 2016*
53% of consumer purchases*




                        Experiences happen anytime,
                         anywhere, all day, every day
          5   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential        *Source: Forrester Research, 2011
How do you affect the
                                              Moments of Interaction?
6   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
MARKET, INTERACT, TRANSACT – ACROSS TOUCH-POINTS




                                Online                                                                    On the Go   In the Store

7   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
MUTI-CHANNEL CUSTOMER EXPERIENCE UTOPIA!

                                “Why can’t I order an item                                                         “Wouldn’t it be nice if they
                                  online and pick it up at                                                            rewarded me for my
                                     my local store?”                                                                     business?”
                                                                                              Mobile      Web




 “When I clicked the “Chat                                             Store                                        Mail
                                                                                                                                         “Why can’t I check my
Now” the agent had no idea
                                                                                                                                          order status from my
    of what was in my
                                                                                                                                         phone? Acme lets me.”
     shopping cart?”


                                                                 Call Center                                       Partner


                               “When I go online, I can’t
                               easily find what I need. Its
                                too complicated to find
                                                                                             @                     “The promotions I receive
                                                                                                                    are relevant. Once they
                                                                                                                   sent me a coupon after my
                                                                                               Email      Social
                                  what’s best for me.”                                                                    purchase?”



8   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
Frustrated Customers Lead to Lost Revenue, Loyalty
      and Share of Wallet
  CUSTOMER FRUSTRATION                                                                                                    LOST REVENUE




Percentage of customers dissatisfied with
cross-channel experience1



                                                                                                             Revenue lost by enterprises in 16 key
                                                                                                             global economies due to customer
Percentage of multi-channel customers that
switch vendors after a single bad experience                                                                $338 Billion
                                                                                                             defections and abandoned purchases 2


                                                                                                            Revenue lost by enterprises in 16 key global economies
                                                                                                            due to customer defections and abandoned purchases 2
  9   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
Website Performance Critical
                                                                                                              to Customer Experience




                                                                                                                                    33%
                                                                                                                         of dissatisfied online
                                                                                                                     shoppers attributed their
                                                                                                                    dissatisfaction to the Web
                                                                                                                            site being too slow




10   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
YOUR BUSINESS CAN’T AFFORD TO MISS A BEAT




                                                                                                            CUSTOMER
                                                                                                           SATISFACTION   CONVERSIONS
1 second delay
in page load time                                                                            =               16%             7%



11   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
ARE YOUR WEB COMMERCE
                                                                                                           APPLICATIONS KEEPING UP?




12   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
WHAT DOES IT TAKE TO DELIVER
 APPLICATIONS SUCCESSFULLY?




 EASE OF DEPLOYMENT
                                                                                                           AT LOW COST
 RUNTIME EXCELLENCE
                                                                                                           BUILT ON OPEN STANDARDS
 INTEGRATED MANAGEMENT




13   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
ORACLE RETAIL SOLUTION FOR CUSTOMER EXPERIENCE

                                                                   ATG                                              InQuira                   Optimization
                                          eCommerce                                                                                          Services (SaaS)
                                          Merchandising                                                    Knowledge Mangement
       Oracle                             Page Delivery                                                    Customer-facing Self-Service
      Commerce
     Applications
                                                             Endeca                                                  Fatwire
                                                                                                           Web Content Managment
                                          Search                                                           Page Delivery (optional)       Knowledge Mangement
                                          Page Layout Management                                           Personalization (optional)     Customer-facing Self-Service



       Oracle                                                                                  Exalogic
     Engineered
      Systems                                                                                  Exadata

14   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
A NEW ERA: ORACLE ENGINEERED SYSTEMS
     HARDWARE AND SOFTWARE ENGINEERED TO WORK TOGETHER




          Before                                                                                                                Now




                                                                                                           ORACLE EXALOGIC & ORACLE EXADATA


15   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
HARDWARE - SOFTWARE ENGINEERED TOGETHER



                                                                                                           •   Engineered to work together
                                                                                                           •   Tested together
                                                                                                           •   Certified together
                                                                                                           •   Packaged together
                                                                                                           •   Deployed together
                                                                                                           •   Upgraded together
                                                                                                           •   Supported together
                                                                                                           •   Managed together


16   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
GROUNDBREAKING TIME TO MARKET
 FEWER PIECES TO BUY, DEPLOY & MAINTAIN




                                                   100’s of Components                                        1 Machine
                                                   1000’s of Hours                                            1 Day


17   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
ORACLE EXADATA DATABASE MACHINE




                                 FASTEST FOR OLTP, DATA WAREHOUSING & MIXED WORKLOADS

                                 BEST COST/PERFORMANCE

                                 BEST DATABASE CONSOLIDATION PLATFORM

                                 SCALES FROM ¼ RACK TO 8 FULL RACKS




18   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
ORACLE EXALOGIC ELASTIC CLOUD




                                                                               EXTREME PERFORMANCE FOR JAVA
                                                                               APPLICATIONS

                                                                               EXTREME PERFORMANCE FOR ORACLE
                                                                               AND OTHER BUSINESS APPLICATIONS

                                                                               SIMPLIFIED MAINTENANCE

                                                                               BEST CONSOLIDATION PLATFORM



19   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
EXALOGIC AND EXADATA WORKING TOGETHER




                                                                                                           Typical

                                                                                                            5X
                                                                                              OTLP
                                                                                        Performance Gain
                      Exalogic                                                                                       Exadata



     HIGHEST LEVEL OF SERVICE IN THE INDUSTRY WITH ORACLE PLATINUM SERVICES


20   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
HARNESS THE VALUE
                                      OF RETAIL APPLICATIONS


                                SEIZE                                                                      LOWER      REDUCE
                                MARKET                                                                     BUSINESS   COST AND
                                OPPORTUNITIES                                                              RISK       COMPLEXITY




21   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE




     ACQUISITION                                                                            RETENTION      EFFICIENCY



22   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE


                          ACQUISITION                                                                 RETENTION        EFFICIENCY



                   • Increase in Traffic                                                       • Increase in CSAT   • Increase in SS%

                   • Increase in                                                               • Increase in CES    • Reduce Cost per
                     Conversion Rate                                                                                  Transaction
                                                                                               • Increase in NPS
                   • Increase in AOV                                                                                • Reduce SG&A%




23   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
EXAMPLE: CALCULATING REVENUE IMPACT


        Traffic                                                      x Δ Conversion rate                   = Δ # of Customers

        Δ # of Customers                                             x Frequency                           = Δ Purchases per Year

        Units per Transaction                                                                                  Average Order Value
                              x Average Selling Price (ASP)                                                =
        (UPT)                                                                                                  (AOV)

        Δ Purchases per Year                                         x Average Order Value (AOV)           = Δ Gross Revenue

                                                                             Δ (Returns+ Cost of Loyalty
        Δ Gross Revenue                                              -                                     = Δ NET REVENUE
                                                                             Program(Discount))



24   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
CASE STUDY: BRAZILIAN ONLINE RETAILER
     COMPANY OVERVIEW
     • Largest sporting goods retailer in Brazil, $500M+ revenues
     • 100%+ YoY growth over the last decade

     CHALLENGES / OPPORTUNITIES
     • Frequent outages and poor response time for online commerce
       application                                                                                         Runs ATG and
     • Rising datacenter costs due to ad-hoc and frequent hardware                                         Weblogic Server on
       refresh and management complexity
     • Poor customer experience resulting in high order abandonment                                        Oracle Exalogic!
       resulting in revenue loss

     RESULTS
     • 6x improvement in throughput
     • 7X reduction in datacenter footprint
     • Double-digit improvement in conversion rates




25   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
ORACLE EXADATA & EXALOGIC: PHENOMENAL ADOPTION




26   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
THE PERFECT CUSTOMER EXPERIENCE
     WHERE BRAND PROMISE MEETS BRAND EXECUTION




     “The value of my brand, the fate of my enterprise, is in
      their hands, driven by the quality of their experience”
27   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
JOIN THE COMMUNITY




     Twitter                                         Facebook                                              Blogs   LinkedIn   YouTube




                Visit us at:
oracle.com/us/products/engineered-systems
28   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
29   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
30   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential
31   Copyright © 2012, Oracle and/or its affiliates. All rights reserved.   Proprietary and Confidential

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Harnessing Value of Retail Commerce Applications on Engineered Systems

  • 1. 1 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 2. Harnessing Value of Retail Applications with Oracle Engineered Systems Sanjeev Sharma Principal Product Director 2 Oracle Exalogic Elastic Cloud Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 3. of consumers will 86% PAY MORE for a better Customer Experience.* 3 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential *Source: Harris Interactive Customer Experience Impact (CEI) Survey, September 2011
  • 4. CUSTOMER EXPERIENCE BOOSTS REVENUE REVENUE 10% point increase in Customer Experience = $2.2B Index Source: Forrester Research, “Customer Experience Boosts Revenue”, Bruce Temkin, June 22, 2009 *The increase in revenue include that from Additional purchases, Churn reduction and Word-of-mouth advocacy 4 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 5. mobile By 2014, the web will social directly account for 8% of Mobile commerce will U.S. retail sales and influence local reach $31 billion by 2016* 53% of consumer purchases* Experiences happen anytime, anywhere, all day, every day 5 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential *Source: Forrester Research, 2011
  • 6. How do you affect the Moments of Interaction? 6 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 7. MARKET, INTERACT, TRANSACT – ACROSS TOUCH-POINTS Online On the Go In the Store 7 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 8. MUTI-CHANNEL CUSTOMER EXPERIENCE UTOPIA! “Why can’t I order an item “Wouldn’t it be nice if they online and pick it up at rewarded me for my my local store?” business?” Mobile Web “When I clicked the “Chat Store Mail “Why can’t I check my Now” the agent had no idea order status from my of what was in my phone? Acme lets me.” shopping cart?” Call Center Partner “When I go online, I can’t easily find what I need. Its too complicated to find @ “The promotions I receive are relevant. Once they sent me a coupon after my Email Social what’s best for me.” purchase?” 8 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 9. Frustrated Customers Lead to Lost Revenue, Loyalty and Share of Wallet CUSTOMER FRUSTRATION LOST REVENUE Percentage of customers dissatisfied with cross-channel experience1 Revenue lost by enterprises in 16 key global economies due to customer Percentage of multi-channel customers that switch vendors after a single bad experience $338 Billion defections and abandoned purchases 2 Revenue lost by enterprises in 16 key global economies due to customer defections and abandoned purchases 2 9 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 10. Website Performance Critical to Customer Experience 33% of dissatisfied online shoppers attributed their dissatisfaction to the Web site being too slow 10 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 11. YOUR BUSINESS CAN’T AFFORD TO MISS A BEAT CUSTOMER SATISFACTION CONVERSIONS 1 second delay in page load time = 16% 7% 11 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 12. ARE YOUR WEB COMMERCE APPLICATIONS KEEPING UP? 12 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 13. WHAT DOES IT TAKE TO DELIVER APPLICATIONS SUCCESSFULLY? EASE OF DEPLOYMENT AT LOW COST RUNTIME EXCELLENCE BUILT ON OPEN STANDARDS INTEGRATED MANAGEMENT 13 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 14. ORACLE RETAIL SOLUTION FOR CUSTOMER EXPERIENCE ATG InQuira Optimization eCommerce Services (SaaS) Merchandising Knowledge Mangement Oracle Page Delivery Customer-facing Self-Service Commerce Applications Endeca Fatwire Web Content Managment Search Page Delivery (optional) Knowledge Mangement Page Layout Management Personalization (optional) Customer-facing Self-Service Oracle Exalogic Engineered Systems Exadata 14 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 15. A NEW ERA: ORACLE ENGINEERED SYSTEMS HARDWARE AND SOFTWARE ENGINEERED TO WORK TOGETHER Before Now ORACLE EXALOGIC & ORACLE EXADATA 15 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 16. HARDWARE - SOFTWARE ENGINEERED TOGETHER • Engineered to work together • Tested together • Certified together • Packaged together • Deployed together • Upgraded together • Supported together • Managed together 16 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 17. GROUNDBREAKING TIME TO MARKET FEWER PIECES TO BUY, DEPLOY & MAINTAIN 100’s of Components  1 Machine 1000’s of Hours  1 Day 17 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 18. ORACLE EXADATA DATABASE MACHINE FASTEST FOR OLTP, DATA WAREHOUSING & MIXED WORKLOADS BEST COST/PERFORMANCE BEST DATABASE CONSOLIDATION PLATFORM SCALES FROM ¼ RACK TO 8 FULL RACKS 18 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 19. ORACLE EXALOGIC ELASTIC CLOUD EXTREME PERFORMANCE FOR JAVA APPLICATIONS EXTREME PERFORMANCE FOR ORACLE AND OTHER BUSINESS APPLICATIONS SIMPLIFIED MAINTENANCE BEST CONSOLIDATION PLATFORM 19 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 20. EXALOGIC AND EXADATA WORKING TOGETHER Typical 5X OTLP Performance Gain Exalogic Exadata HIGHEST LEVEL OF SERVICE IN THE INDUSTRY WITH ORACLE PLATINUM SERVICES 20 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 21. HARNESS THE VALUE OF RETAIL APPLICATIONS SEIZE LOWER REDUCE MARKET BUSINESS COST AND OPPORTUNITIES RISK COMPLEXITY 21 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 22. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE ACQUISITION RETENTION EFFICIENCY 22 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 23. MEASURING BUSINESS VALUE OF CUSTOMER EXPERIENCE ACQUISITION RETENTION EFFICIENCY • Increase in Traffic • Increase in CSAT • Increase in SS% • Increase in • Increase in CES • Reduce Cost per Conversion Rate Transaction • Increase in NPS • Increase in AOV • Reduce SG&A% 23 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 24. EXAMPLE: CALCULATING REVENUE IMPACT Traffic x Δ Conversion rate = Δ # of Customers Δ # of Customers x Frequency = Δ Purchases per Year Units per Transaction Average Order Value x Average Selling Price (ASP) = (UPT) (AOV) Δ Purchases per Year x Average Order Value (AOV) = Δ Gross Revenue Δ (Returns+ Cost of Loyalty Δ Gross Revenue - = Δ NET REVENUE Program(Discount)) 24 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 25. CASE STUDY: BRAZILIAN ONLINE RETAILER COMPANY OVERVIEW • Largest sporting goods retailer in Brazil, $500M+ revenues • 100%+ YoY growth over the last decade CHALLENGES / OPPORTUNITIES • Frequent outages and poor response time for online commerce application Runs ATG and • Rising datacenter costs due to ad-hoc and frequent hardware Weblogic Server on refresh and management complexity • Poor customer experience resulting in high order abandonment Oracle Exalogic! resulting in revenue loss RESULTS • 6x improvement in throughput • 7X reduction in datacenter footprint • Double-digit improvement in conversion rates 25 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 26. ORACLE EXADATA & EXALOGIC: PHENOMENAL ADOPTION 26 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 27. THE PERFECT CUSTOMER EXPERIENCE WHERE BRAND PROMISE MEETS BRAND EXECUTION “The value of my brand, the fate of my enterprise, is in their hands, driven by the quality of their experience” 27 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 28. JOIN THE COMMUNITY Twitter Facebook Blogs LinkedIn YouTube Visit us at: oracle.com/us/products/engineered-systems 28 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 29. 29 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 30. 30 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential
  • 31. 31 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Proprietary and Confidential