ORACLE CORPORATION

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ORACLE CORPORATION

• ECO-524.4 FINAL PROJECT
• SCOTT HESS
• RASHIDA LEWIS
• JOE WILLIAMS

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INTRODUCTION

• Oracle Corporation is a leading supplier of
  software for information management. The company
  develops, manufactures, markets and distributes
  computer software that helps corporations manage
  and grow their business
• The companys software products can be
  categorized into two broad areas Systems
  software and Internet business applications
  software

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Background

• Founded in 1977 to create a relational data base
  management system
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• Data bases are where companies store information
  about customers, sales, etc.
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• The automation of information revolutionized
  administrative efficiency
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• Has created a product that enjoys monopolistic
  characteristics through copy write protection
•  
• Copy writes create a barrier to entry for
  competition
•  
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• Has maintained a competitive advantage by
  developing new products ahead of the competition
•  
• By investing heavily in research and development,
  they have created anther barrier to entry.

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Previous Business Practices

• IT systems of the 90s were client/server based
•  
• One building would have many network computers
  connected to a local server system
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•  IT was growing less efficient overtime as
  systems grew more complex
•  
• Client/server systems gave way to diseconomies of
  scale as more locations created system redundancy
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Previous Business Practices

• The internet offered a new browser based means to
  communicate information
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• Browser based systems use the internet to enable
  the use of one server system to connect unlimited
  network computers
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•  Browser based has economies of scale advantage
  over client/server based systems
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• Less system redundancy results in less labor,
  equipment, and capital resources

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Previous Business Practices
Revenue Trends
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Oracles FY2000 Financial Highlights
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Demand
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Costs
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Market Structure
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Resource Market

• Computer business systems are most effective in
  automating routine and well-defined work tasks.
  That permits substitution out of certain kinds of
  human effort.
• Highly computerized organizational processes are
  often accompanied by a greater production of
  data.
• Raw data is fodder for analytic or abstract
  decisionmaking, such as analyzing customer needs
  to target new product development, heightening
  the value of skilled workers, managers and
  professionals (unless, as has rarely occurred so
  far, the computer system itself can make the
  analytical decisions).

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Product Pricing
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Cost of OwnerShip