Jerry Held

1
e-Business ????? ??
Enterprise_at_Internet
2
??? ??? ??? ???? ??? ??? ??? ??? ???? ???? ????
????. ??? ??? ????
3
? ?
1. e-Business? ???? 2. ??? ???? ?? 3. ??? ????
?? 4. e-Business? ?? ?? 5. e-Business
Solution 6. e-Business ??? ???
4
1. e-Business? ????
??? ??
?? ?? / ??
??? ??? ??
????

• ???? ?????
• ?????? ???? ?? ???? ??
• ?? ??
• ?? ??? ?? ??? ??? ??

?? ??? ?? ??
??
??? ??? ??
5
1. e-Business? ????
???
??? ?????? ??

• ???? ?? ?? ????? ??
• ???? ???? ????
• ?????? ? ????
• ?? ???? 11 ??????

6
1. e-Business? ????
??? ?? ?? ??
? ????? ??? ? ?? ?? ???? ??? ??? ??? ? ?? ???
??? ???, ??, ??, ??, ????? ???? ??/??? ?? ?? ???
?? ??...
7
1. e-Business? ????
e-Business? e-Life
?? 500? ?? e-Life ??? ???? ?? ? ??????
e-Business? ????? ?? ? ???? ??
e-Business
e-Life
??? ?? ??? ??? ????? ?? ???? ? ?? ??? ???? ?? ?
???? e-Business?? ???? ?????? ???? ? ????
?????? ?????? ??? ???? ?? ?? ?? ??? ?? ??? ???
??? ??? ??? ?(n??, _at_??, e??? ?? ?)
e-Business? ????? ?? ????- ??, ??, ???, ???
??? ???? - ?? ??? ????? ?? ???(electronically)??
???? ??????? ???? ??? ????
e-Life? ?? ??? ??? ??, ??, ??, ?????? ?? ???
??/?? ??...?? ??? ??? ??? ???(electronically)??
?? ???? ???? ??? ?? ??? ?? ??? ????
8
1. e-Business? ????
?? ???? ??

• ?? ???? ???? ???? ?? ????? ??? ??? ???? ???? ????
  ??

9
1. e-Business? ????
??? ??? ?? ?? ??

• ?? ???? ???? ??? ??? ???? ??

10
? ?
1. e-Business? ???? 2. ??? ???? ?? 3. ??? ????
?? 4. e-Business? ?? ?? 5. e-Business
Solution 6. e-Business ??? ???
11
2. ??? ???? ??
??? ??? ??
???? ??? ?????? ?? - IT (Information
Technology) - C C (Computer and
Communication) ???? ??? ??? ?? - Lower
unemployment with faster growth and less
inflation Traditional industry
growth up -cost up - inflation - productivity
down High tech industry demand up
- cost down - price down - demand up ????? ??
- ?? ??? ?? ??? ??? ?? ?? (ex) win98
????, open ?, ?? ??? ?? ??
???? ??
12
2. ??? ???? ??
??? ??, ??? ????, ??? ??
??? ??(eEnterprise)?? ??? ??(eEconomy)???? ??
??? ??? ?? ????(eBusiness)? ????? ?
??? ??(eEconomy) ???? ?? ? ??? ??? ??
????? ???? ??
??? ???? ???
?? ????? ?? ?? (????, ????, ??? ??)
eEconomy
eBusiness
?????(eBusiness) ???? ???? ??? ?? ?
??, ??, ???, ??? ?
????? ????? ???? ??? ????
eEnterprise
??? ??(eEnterprise) ??? ?? ??(??, ??, ??? ?
???? ?)? ?????
??
??????? ?? ???? ??
13
2. ??? ???? ??
??? ????? ??
???? ??? ??? ????? ??? ?? ??? ??? ??? ?? ?
????
??? ??
???? B
??
???? A
???? C
??
???? F
???? D
??
???
??
???
A/S
???? E

• ? ???? ??? ?? ??
• ??? ??/??? ?? ???? ??
• ????? ?? ?? ??

• ??? ??? ?? ???? ??? ??
• ??? ?? ??? ????? ??? ?? Dream Team ?? ??
• Dynamic and Flexible

?? Andersen Consulting
14
??? ??, e-Business? ??? ?? ??? ??? ???? ?????
????? ?
2. ??? ???? ??
??? ?? ?? ??
15
? ?
1. e-Business? ???? 2. ??? ???? ?? 3. ??? ????
?? 4. e-Business? ?? ?? 5. e-Business
Solution 6. e-Business ??? ???
16
3. ??? ???? ??
e-Business? Value Chain
Suppliers
Resellers
Employees
?? ??
Customers
Sell Side
Buy Side
Electronic Procurement System
Collaborative Supply Chain Management
Customer Relationship Management
On-line Shopping System
Back Office / ERP Application
??? ?????
????
????
????
??????
?????
????
????
??????
?? / ?? (??? / ??? / ???)
?? / ?? (?? / ???)
?? / ?? (?? / ???)
???? ???
?? ????
??? ??
?? ??
????
17
3. ??? ???? ??
e-Business? ??? ?? ??
??? ????? e-Business? ???? ?? ??? ??? ??? ??? ??
???. ??? e-Business? ????? ?? ???? 4??? ???? ??
???, ???? ?????? ?? ??. ?? ????? ??
?? ??? ??? ?? ? ????? ??? ?? ??
?? ??? ???? ? ??? ? ??? ??? ????? ??
??? ?? ???? ???? ???? ???? ??
18
3. ??? ???? ??
e-Business? ??? ?? ??
e-Business? ??? ????, ???? ? ??? ??? ?? ? ??
???? ??? ??? ??? ??? ? ??
19
3. ??? ???? ??
?? e-Business(???????) ?? ??
?? e-Business ?? ?? (B-to-B B-to-C)
B to B ?? ??? ??? 122
179.4
(10? ??)
120
97.1
100
80
B to C ?? ??? ??? 52
60
46.5
46.2
40
21.1
32.2
21.3
20
7.4
13.0
0.0
0
1997
1998
1999
2000
2001
?? ???????? , 1999
20
? ?
1. e-Business? ???? 2. ??? ???? ?? 3. ??? ????
?? 4. e-Business? ?? ?? 5. e-Business
Solution 6. e-Business??? ???
21
4. e-Business? ?? ??
e-Business ???
?? ??? ????? ??? ???? ??? ?? ??? ?????? ???? ???
??? ??? ?? ??? ??/?? ??? ??? ??? ???? ??? ???
????? ???---gt??? ?? ??? ??? ??? ??
22
4. e-Business? ?? ??
??? ?????? ?? eCEO
e-CEO (Electronic Chief Executive Officer)
?? ??? ??? CEO
??? ??? ????? ???? CEO
CEO
?? ??
???? ? ??? ??? ??, ??/ ???? ?? ??? ?? ???? ?? ???
??? ??? ??? ?? ??? ?? ??
?????
????
??? ?? ????/ ??? ?? ?? ???/ ?? ? ??? ??? ??
23
4. e-Business? ?? ??
CEO ? e-CEO ? ??
Traditional CEO
e-CEO
- evangelizing - paranoid - brutally frank -
infotech literate (at least) - intensely
focused - faster moving - likes ambiguity -
suffers from bandwidth separation anxiety - a
paragon of good judgment - age 38 - really rich
- encouraging - alert - cordial - infotech
semiliterate (at best) - clearly focused - fast
moving - hates ambiguity - suffers from
technology confrontation anxiety - a paragon of
good judgment - age 57 - rich
May 1999, FORTUNE
24
4. e-Business? ?? ??
?????? ??? ?? ?? Biz Rule? ??????? ????? ???? ???
?.
e-Biz??
????

• ?? ???? - ???? - ????
• ???? ??? ?? ??? ??
• ????? ?? ?? ??? ??? ??
• ?? ??? Money-making? ?? ??

• ?? ???? - ??? ?? - ???? ???
• ??? ?? ??? ????? ??
• ???? ??? ???? ?? ???
• ?????? Money-making? ?? ??

????
????
25
???? e-business ??
5. e-business Solution
E M P L O Y E E S
? ??? (??, Portal)
?? ??? ??????
CUSTOMERS
E-Store
Direct Sales
26
e-Business Model
Operation Management ( ?? ? ?? ?? )
CRM ( Customer Relationship Management )
Internet Commerce Management
Internet Platform
??
27
e-Business Model
28
e-Business Solutions

• BUY SIDE
• Supply Chain
• Management
• Supply Chain Planning
• Advanced Planning Scheduling
• Order Management
• Purchasing
• Internet Procurement
• Selling Point
• Self-Service Suppliers
• EDI Gateway

• SELL SIDE
• Customer
• Relationship
• Management
• Sales
• Marketing
• Support
• Call Center
• iStore
• iPayment
• iBill Pay
• Web Customers

• IN SIDE
• Corporate Manufacturing
• Management
• Oracle Financial Discrete Mfg
• Oracle HRMS Process Mfg
• Business Intelligence Projects
• Strategic Enterprise Mgt
• Self-Service Employee
• Oracle eTravel

PLATFORM

• Oracle8i Family
• Parallel Server
• interMedia, iFs
• WebDB
• Workflow
• Oracle Internet Directory
• Advance Security Server
• Oracle Application Server
• Oracle Development, Query and Report Tools

• Partially Support
• Full Support
• Not Support

29
Internet ?? ???? ?? ??????? ??
e-business ??
??? ???
?? ???

• ??
• ??? ??? ??
• ??? ???
• ?? ??? ??
• ??? ????
• ?? ?? ?? /?? ? ??

Barnes Noble
Amazon.com

• ??
• ??? ??
• ????? ??
• ?? ????? ?? ??
• ?? ???

Finish Line

• GOAL
• ?? ?? ??
• ??? ???? ??? ??
• ??? ??

• GOAL
• ??? ?? ??
• ?? ?? ? ?? ??? ??

30
AMAZON ? ?? ???? ??? ?? ??? ?????? ??? ?? ?? ?
??? ?? ???? ??
AMAZON? ???? ??
? ?

• ??? ?? ?? No.1
• ??? ??? ???? ??? CD???? CDNow? ??
• 100?300? ??? ?? ?? (99?)

• ?? ?? ?? ?? ???? ???? ??? ???, ???,??? ??
  ??? ??? ?? ??? ??
• ?? ?? ? ????? ???? ????? ???? ??? ? ???
  ??(?, CD ? ??) ? ?? Wallet Share? ???
• ?? ?? ? ??? ??? ?? ??? 230,000? ? ??? ?????
  ?? ??
• ??? ?? ??,?? ?? ??? ? ?? ???? ?? ?? ???

???

• ??? ???? ??? ?????? ?? ???? ??? ???? ???
  ??? ? ??
• ???? ???? ??? ???? ?? ???? ??? ?? ? ?? ????
  ??? ??? ???

31
BARNES NOBLE? ???? ???? ??? ???? ???? ??? ???
???
???/ ???
AMAZON? ??
BN ? ??

• ? ???? ??? ? ?? ?? ??? ?? (17? 5??)
• ???? ? ??? ??
• ??? ???
• ??? ????

• ??? ???? (250? ?)
• 24?? ?? ??
• ??? ???
• ????? ??? ?? ? ??

? ?
Barnes and Noble500??? ?? ??
AMAZON.COM
? ?
32
??? BARNES NOBLE? ?? ???? ?? ???? ???? ?? ????
???? ??
AMAZON? ?? BARNES NOBLE? ??

• Barnes and Noble ? ???? ???? ??? ??? ????
  ????(barnesandnoble.com) ?? 2??? ??? ????
  10 ??
• Bertelsmann(?? ???)? AOL?? ?? ?? ?? ??? ? ??
  ??? ??
• AMAZON? ???? ???? ????? ?? ????? ?? ???????
  Ingram ? ?? ??? ???? (Amazon ??? 60? Ingram?
  ?? ???? ???)
• AMAZON? ??? ? ?? ??? ???? ???? ?? ?? ? ????(?
  cafe in bookstore)
• ?? ???? ??? ???? ??? ???? ????? ???? ??? ??? ??
  ??? ???? ?? AMAZON? ??? ?????? ????? ??

???? ??? ?? ??? ? ??
33
Through Transformation of Supply Chain
Oracle e-Business Solutions

• ?? Egghead? Computer, S/W ? ?? ??? ???? ??
  ??? ?? ??? 1998? ? ?? ?? ??
• ?? ??
• Business Change Driver? Internet? ???? ???
  Business Model? ??
• 1998? 7??? 230? ?? Retail Shop? ???? Internet?? ?
  ??? ??? Internet Shop? ??
• ?? ??
• ??? Supply Chain??? Consumer Electronics, Office
  Supply, Sporting Goods, ?? ? ?? Supply Chain?
  Internet? ?? ?? (40,000??? ?? ?? )
• ? ?? 7?? ??? ??
• Shop ?? 9??? ?? ??? ?? 94 ?? ??
• ?? 86 ?? ( U100mil --gt U14Mil )
• ?? ?? 3?? ?? ??? ?? ??? ? ?? ?? ??? ??

34
(No Transcript)
35
Oracle Corporation Profile

• 2nd Largest Software Company in the World
• Founded 1977Public 1986 at 50 Million Revenue
• 140 Countries 60 Subsidiaries
• Over 41,000 Employees
• 51 of Total Revenue Generated Outside US
• 10.1B Annual Revenue 15 Revenue Growth

All financial figures are annualized to reflect
most recent four quarters as of Oracles Fiscal
Year end 2000.
36
The Headlines

• Oracle Saved 1Billion !!
• 1 Billion 10 of Revenue
• Operating Marginup 43 -Grew to 30from 22.
• Set new targetto 2 Billion

37
FY to FYRevenue vs. Operating Expenses
Millions
10,000 9,000 8,000 7,000 6,000 5,000 4,000
Revenue
OperatingExpenses
FY 97
FY 98
FY 99
FY 00
38
Year-to-Year Changein Operating Margin
Change in Operating Margin
16.00 12.00 8.00 4.00 0.00
13.8
11.8
11.7
10.8
6.2
2.3
1.7
1.5
1.4
0.1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Fiscal Year 1999
Fiscal Year 2000
39
Oracle Market Capitalization
( Billions)
250 225 200 175 150 125 100 75 50 25 0
FY94
FY95
FY96
FY97
FY98
FY99
FY00
Note 221B as of 10/1/2000
40
What Was Effected?
Vision
Strategic Objectives
Products Services
Operations
Organization
Process
Technology
41
Overriding Transition Strategies
42
What is the IMPACT of 1Billion?
Supply Chain/ Procurement 150M
Technology 200M
Customer Management 550M
Enterprise Management 100M
43
OraclesEnterprise Management Enablers

• Self Service
• Shared Services / Consolidation
• Single, Integrated, Web-enabledGlobal Enterprise
  Systems
• Results
• Streamlined Business Processes
• Simplified Business Practices
• Reduce Administrative Costs
• Better Information, Faster
• Improved Accuracy
• Improved Productivity

44
Self-Service inEnterprise Management
Submit

• Especially for Employees...
• Expenses
• Hiring
• Travel Bookings
• Benefits / Personal Info
• Approvals(Vacation, Requisitions etc)

Approve
Action
45
Shared Service Centers

• Exploit Economiesof Scale
• Reduce Complexity
• Enforce Consistent Business Practices

Accounts Payable Human Resources Purchasing Treasu
ry General Accounting Order Management
Examples
46
Example - HR and Training
HRStaff Ratio 11000
12000 12Days 1/emp 40
Open Enrollment 45 Days
Benefits Enrollment 40/emp
Training Web-based vs. Instled
47
Oracles Customer Enablers

• Self Service
• Business Simplification
• Single, Integrated, Web-enabled Global Customer
  Systems
• Results
• Streamlined Sales Operations
• Simplified Sales Practices(Pricing, Discounts
  etc)
• Shortened, Less Complex Sales Cycle
• Opened New Channels
• Improved Marketing Effectiveness
• Improved Support / Responsiveness
• Better Information Gathering Use

48
100 Integrated Solution
Oracle is becoming faster and more adept at
meeting changing customer demands and penetrating
new markets -without software complexity
standing in the way
Field sales Rep
Worldwide Web

• Business Intelligence
• Marketing Intelligence
• Sales Intelligence
• Service Intelligence

Customer
Marketing CRM Applications Sale Service
Finance
Supply Chain
ERP
H.R.
CustomerInformation Database Data
Warehouse Data Mining
Call center
Logistics
MFG

• CRM Foundation
• Interaction History
• Territory Management
• Work Flow Management

49
Customer Management - Sales
Sales Person Productivity
10-20 100m/qtr -80 1 hr/mo 1 wk/year
2m/qtr 12 hr/mo 12 wk
Orders via web
Cost of entering order
Forecast efficiencies
Quota/Comp efficiencies
50
Value Chain / Procurement
Supply Chain/ Procurement 150M
Technology 200M
Customer Management 550M
Enterprise Management 100M
51
Self-Service in Procurement

• For Example...
• Supplier Inquiry
• Requisitions
• Approvals
• Catalogs
• Status
• Exchange

Submit
Approve
Action
52
Example - iProcurement
Reduction in Indirect Spend
10 -46M 20
Process and Trans. Costs
Purchasing Dept. Productivity
Cost per purchase order
39 -50 lt2 days
169 85
Purchase to pay cycle time
Requisitions to POs
53
Technology
Technology 200M
Supply Chain/ Procurement 150M
Customer Management 550M
Enterprise Management 100M
54
Oracles Technology Enablers

• Globalization / Consolidation
• Internet Technologies
• Single, Integrated Software Infrastructure
• Results
• Centralized, professionally managed information
• Reduced Desktop Maintenance
• Deploy and Maintain at a Lower Cost
• Accessibility, Availability, Scalability,
  Security
• Foundation for E-BusinessTransformation

55
Consolidated Data Centers,Data and Applications
Multiple Data Centers
Global Data Center
Fragmented Data
Global Data
Diverse Applications
Global Applications
WWW or WAN
56
Consolidated Data

• Allows...
• Fewer Computers
• Less Software
• Less people to manage it
• Better, fasterinformation at lower cost

100s of Small Databases
Single, Integrated Database
57
Example - Data Center Consolidation
Currently
EMEA (31 Countries)
Ireland Singapore California
Asia Pacific (14 Countries)
Americas (13 Countries)
By End of Year
Global (58 Countries)
Colorado (w/ backup in California)
58
Example - Applications and Databases
Forecasting systems
1 1 1 2 4 5 1
100 83 62 72 120 27 60
ERP systems
Customer websites

Employee databases
Email databases
Support databases
Customer databases
59
Globalization E-Mail Example
Mid-1997
End-1998
End-1999
July-2000
Server Count DB Instances Employees Mailkeepers
97 120 31,000 60
37 80 41,000 30
25 80 43,000 30
2 4 gt45000 13
The transition to Internet Messaging savesmore
than 13 Million per year.
60
Global I.T. Expense Reduction
May 99 01
May 00
Dec. 00
May
340M lt800
400M 1000
500M 1200
600M 1500
I.T. Expense
People
260M reduction in operating expenseover 2 years.
61
The Keys to Success...

• Vision
• Technology
• Simplification

62
We Prioritized Selected Quick Wins
Internet Procurement
Customer self-service
High
Online sales tracking
Web-based training
Business Impact
Centralize technology
Online travel booking
Benefits expenses processing
Low
Employee details maintenance
Low (Hard)
High (Easy)
Ease of Implementation
63
E-Business Transformation Impactat Cisco

• Saved 1.5 Billion over 3 years
• 86 of orders placed online (96 in EMEA)
• 55 unit volume shipped directwithout Cisco
  touch
• 80 of customer-service issuesare handled
  electronically(25 Satisfaction increase)
• Revenues per Employee
• Cisco 650K
• SP 500 396K Avg
• Archrival Lucent 253K
• 70 cut in order cycle time(6-8 wks to 1-3 wks)
• 45 inventory reduction for Cisco and partners

64
Cisco Systems E-Business Transformation
Financial Impact
On Revenues of 18.9B...
Customer Care
269M
Internet Commerce
57M
Supply Chain Management - Cost benefits -
Profit contribution
444M 175M 269M
Workforce Optimization
55M
Total Financial Impact
825M
65
How Is OracleGoing to Achieve2 Billionin
Savings?
66
Oracles 2 Billion DollarSavings Target
New,Cumulative Goal (Millions)
Previous Goal (Millions)
Technology Customer Proc/Value Enterprise TOTAL
200 550 150 100 1,000
250 1,450 200 100 2,000
67
Focus on Increasing RevenuesWhile Controlling
Cost of Sales
68
iDiscoverye-business ?? ?? ???
iDiscovery
Vision
Realization
eBusiness Strategy Workshop
eBusiness Value Assessment
Design Prototype
Build Test
Deploy Measure
eBusiness Architecture

• e-Business ?? ????? ??
• e-Business ???? ?
• ?????? ?? ? ??
• e-Business ??? ??

• e-Business ?? ??
• e-Business ????? ??
• e-Business ???? ??
• e-Business Case ??
• e-Business Roadmap ??