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Sebastian J Gunningham Senior Vice President Latin America Division Oracle Corporation

Sebastian J Gunningham Senior Vice President Latin America Division Oracle Corporation. How is Information Technology Changing the Business Environment in Latin America. # 1. # 2. Oracle Corporation Two Software Businesses. Internet Platform

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Sebastian J Gunningham Senior Vice President Latin America Division Oracle Corporation

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  1. Sebastian J GunninghamSeniorVice President Latin America Division Oracle Corporation

  2. How is Information Technology Changing the Business Environment in Latin America...

  3. #1 #2 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

  4. What does e-businessreally mean?

  5. The fast beat the slow

  6. C L E R K S Fax e-business Today Suppliers & Partners Business Business Applications Orders/ Information Web Site

  7. C L E R K S Fax e-business Today Suppliers & Partners Business Applications Orders/ Information Web Site

  8. EMPLOYEES Suppliers Self Service Applications Marketing Website Business Applications Channel Sales C U S T O M E R S Direct Sales Business Intelligence Applications Service Providers Service True e-business

  9. TechnologyChange StructureChange e-businessTransformation ProcessChange CultureChange

  10. Revenue Growth Traditional business Expense Growth E-Business Expense Growth Oracle: an e-business Case Study Goal: Grow sales vs. expenses

  11. $2 Billion Dollars in Savings?

  12. By Becoming an E-Business Oracle’s $2 Billion Dollar Savings Target 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.

  13. Technology Change

  14. Customer-side Internal Supply-Side Suppliers Self Service Applications Marketing 100% Pure Internet Website Business Applications Channel Sales Direct Sales Business Intelligence Applications Service Providers Service Adopt Internet Technology Everywhere

  15. Avoid Point Solutions Marketing HR Requisitions Web Marketing Channel Sales Financials Supply Chain Direct Sales Service Expenses Exchanges

  16. ? ? ? ? ? ? ? ? ? ? ? Everything Needs to Connect Together Marketing HR Requisitions Web Marketing Channel Sales Financials Supply Chain Direct Sales Service Expenses Exchanges

  17. Move Data and Applications to the Data Center Application Application Data Center Result: Lower Cost Administration and Management Application and Data

  18. Fewer Computers Less Software Less People to manage it BetterInformation at lower cost 1 Sales Database Consolidate Your Data 100 Sales Databases

  19. Consolidate Your Data Centers Result: Lower cost and more efficient

  20. Technology Change Results Oracle Savings$200M Oracle Global IT Operating Expense May ‘99 May ‘00 Dec. ‘00 May ‘01 Approx. Costs $600M $500M $450M $400M 1500 1200 1000 800 People

  21. Process Change Process Change

  22. Information Sales Service Provide Customerswith Self-Service Oracle Savings$550M Result: Improved Customer Satisfaction and Loyalty at Lower Cost

  23. Action Approve Submit Manager Employee Provide Employees with Self-Service Oracle Savings$150M • Expenses • Orders • Hiring • Travel bookings • Benefits • Holiday approvals Result: Faster, More Accurate Transactions at Lower Cost

  24. Supplier Supplier Buyer Supplier Supplier Supplier Supplier Make Suppliers Compete for Business Oracle Savings$50M Result: Buy goods more competitively at lower cost Reverse-Auction

  25. Competitor Customer You Competitor Competitor Customer Customer Compete for Your Customer’s Business Result: Quality, prices and/or speed of delivery enable you to win Forward-Auction

  26. Exchange Transactions Auctions Strategic Sourcing Suppliers Buyers Join or Create Internet Marketplaces for your Industry Result: Increased sales and lower cost purchasing

  27. StructureChange

  28. Restructure for Global Efficiency • Restructure country infrastructure • Sales • Support • Restructure administrative functions • Human Resources • Legal • Marketing Result: More efficient way of doing business at Lower Cost

  29. 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: Deliver personalised products faster and at lower cost

  30. Culture Change

  31. Think Global www.<your company>.com

  32. Think Web First Oracle Savings$50M Marketing, Sales, Service, Purchasing, Manufacturing, Human Resources, Financial Management, etc.

  33. Think Internet Time Now Now Now Now

  34. TechnologyChange StructureChange e-businessTransformation ProcessChange CultureChange

  35. Customer-side Internal Supply-Side Indirect Sales Channel Suppliers Self Service Applications 20% Cost Reduction in Customer Interaction with Increased Sales Effectiveness and Customer Satisfaction 20% Reduction in Operating Costs with Increased Efficiency and Product/Service Quality 20% Reduction in Supply Costs with Increased Efficiency and Lower Inventory Web Store Enterprise Applications Direct Sales Business Intelligence Applications Service Providers Customer Service Call Center Oracle e-business Blueprint

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