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Oracle vs. Peoplesoft. Marc Proctor David Hayes. Overview. Oracle vs. Peoplesoft ERP Development of the information Market. Oracle and Peoplesoft. Oracle CEO Larry Ellison Peoplesoft CEO Craig Conway Initial bid: $16.00 a share $5.1 Billion
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Oracle vs. Peoplesoft Marc Proctor David Hayes
Overview • Oracle vs. Peoplesoft • ERP • Development of the information Market
Oracle and Peoplesoft • Oracle CEO Larry Ellison • Peoplesoft CEO Craig Conway • Initial bid: $16.00 a share • $5.1 Billion • February 3, 2004, Oracle offered $28 a share. • $10.3 billion total.
The Marketsetting the stage Oracle had strong market share IBM and Microsoft also positioned strongly Microsoft had strong windows based system: SQL IBM had strong Linux based system Oracle also using Linux for its software Market showing strong growth
The Market • Used to be individual programs for each department. • i.e. marketing had its own, shipping/receiving had its own. • Focus was on power/performance • Changed to reliability and ability to intigrate
The Market ERP? • ERP- Definition • Consolidation of Data • Connect Departments • Software local to individual company • Can offer cost reductions Source: http://www.networkdictionary.com/
The MarketERP? • Average cost: $15 million • Ranging from: $400,000 to $300 million • Requires change in Operational structure Image Source: techrepublic.com
Oracle in a Dilemma • Oracle needed to renew itself • Develop ERP software • Concerned about loosing its market share to growing competition from IBM, SAP, and smaller organizations such as Peoplesoft. • Oracle Decided to buy Peoplesoft • Control competition • Leverage technology • Gain market share
Oracle vs. Peoplesoft • Oracle vs. Peoplesoft • NPR report • Process involved side acquisitions, court appeals, and involved price offering.
Oracle vs. Peoplesoftbidding wars • Initial bid: $16.00 a share • $5.1 Billion • Upped to $19.50 a share • $6.3 billion • While bids being made Peoplesoft share price was on the rise! • Peoplesoft acquired JD Edwards for $1.7 billion. • Oracle upped to $26.00 a share • $9.4 billion
Oracle vs. PeoplesoftOracles Last Offer • February 3, 2004, Oracle offered $28 a share. • $10.3 billion total. • Accepted by Peoplesoft.
Conclusion • Effective forecasting, planning, and scheduling is fundamental to productivity-and ERP is a fundamental way to achieve it. • Properly implementing ERP will give you a competitive advantage and help you run your business more effectively, efficiently, and responsively.