Sebastian J Gunningham Senior Vice President Latin America Division Oracle Corporation

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

Oracle Corporation Two 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 #1#1 #1#1 #2#2 #2#2

What does e-business really mean?

The fast beat the slow

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

C L E R K S Orders/ Information Fax Suppliers & Partners Partners BusinessApplications Web Site e-business Today

Service Direct Sales Channel Sales Marketing C U S T O M E R S Website BusinessApplications EMPLOYEES Self Service Applications BusinessIntelligenceApplications SuppliersSuppliers ServiceProvidersServiceProviders True e-business

e-business Transformation Technology Change Structure Change Process Change Culture Change

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

$2 Billion Dollars in Savings?

PreviousNewGoal $ Mil Consolidate IT $200 $250 Sell Side $550 $1,450 Buy Side $150 $200 Inside $100 $100 Total$1,000$2,000 PreviousNewGoal $ 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. By Becoming an E-Business Oracle’s $2 Billion Dollar Savings Target

Technology Change

Adopt Internet Technology Everywhere Service Direct Sales Channel Sales Marketing Website BusinessApplications Self Service Applications BusinessIntelligenceApplications SuppliersSuppliers ServiceProvidersServiceProviders 100%PureInternet Customer-sideInternalSupply-Side

Avoid Point Solutions MarketingHR Direct Sales Expenses FinancialsSupply Chain Requisitions ExchangesService Channel Sales Web Marketing

Everything Needs to Connect Together MarketingHR Direct Sales Expenses FinancialsSupply Chain Requisitions ExchangesService Channel Sales Web Marketing ? ? ? ? ?? ? ?? ? ?

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

Consolidate Your Data 1 Sales Database 100 Sales Databases  Fewer Computers  Less Software  Less People to manage it  Better Information at lower cost

Consolidate Your Data Centers Result: Lower cost and more efficient

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

Process Change

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

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

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

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

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

Structure Change

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

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

Culture Change

Think Global

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

Think Internet Time NowNowNowNow

e-business Transformation Technology Change Structure Change Process Change Culture Change

Oracle e-business Blueprint CustomerService Call Center Direct Sales Web Store Indirect Sales Channel EnterpriseApplications Self Service Applications BusinessIntelligenceApplications SuppliersSuppliers ServiceProvidersServiceProviders 20% Cost Reduction in Customer Interaction withIncreased Sales Effectiveness and Customer Satisfaction 20% Reduction in Operating Costs withIncreasedEfficiencyandProduct/ServiceQuality20% Reduction in Supply Costs withIncreased Efficiency and Lower Inventory Customer-sideInternalSupply-Side