1. The Evolving CIO What the Executive Suite Needs From the CIO

2. Jeff Henley Chief Financial Officer Oracle Corporation

3. IT is Changing… From Information Technology To Information Technology The CIO Must Evolve

4. The New Reality Facing CIOs  Hyper-Cost-Consciousness  Need for Real-Time Intelligence  The IT Service Economy – In-house or Outsource  Corporate Governance It’s No Longer Just About Data Centers

5. The Future CIO… “ Tech-savvy CIOs who are increasingly used by their companies not just to make the computers work, but to save money and improve profits. CIOs are getting broader responsibility and authority …” Wall Street Journal March, 2003

6. All Primary Functions Are Evolving  Purchasing – From “Which Server?” to “Which Service?”  Operational Intelligence and Reporting – From “What is the data?” to “What are the trends?”  Increased LOB Interaction – From Reactive to Proactive

7. Oracle Macro Trends  The Commodity Data Center – Linux/Intel  Remove Complexity – Server Consolidation, Simplified Middleware and Apps  Built-in Business Intelligence and Collaboration  Increased Outsourced Offerings  E-Business (ie self-service)

8. Linux Pervading Key IT Areas 106.5 119.4 298 246.4 722.3 515 195.8 0100200300400500600700800 Business Processing Decision Support Collaborative Appl. Development IT Infrastructure Web Infrastructure Technical Source: IDC 2003 $ millions

9. The Thirst for Business Intelligence  Business Intelligence Growth – CRM Analytics - 12.5% CAGR to $829M – DW tools - 12% CAGR of to $11.5B – Financial/Analytics - 10.8% CAGR to $1.5B – Operations Analytics - 13.1% CAGR to $2.4B Source: IDC June, 2002 forecast reports

10. IT Economics Source: IDC 48% 28% 15% 9% Labor Software Development Hardware Labor Costs Remain the Largest Savings Target

11. IT Productivity The Best Hope for Cost Savings - Summit Strategies, 2002 “Companies spend 72% of IT on Non-Strategic Tasks” Current IT budgets: 39% on infrastructure 33% on maintenance and administration 72% “These functions entail great costs and impose plenty of operational risks, but are not likely to produce strategic advantage.”

12. Outsourcing: Convergence of Software & Service Currentlysoftware seen as separate from support and service Outsourcingtreats software and services as the same thing The EnablerContinuous connection between vendor and customer The ResultBetter, faster and cheaper than traditional software management

13. Corporate Governance A Crisis Of Confidence NASDAQ 5000 4000 3000 2000 1000 Dec-00Dec-01Dec-02 Enron Tyco WorldCom Global Crossing Health South

14. Inside Sarbanes-Oxley Section 404

15. Sarbanes-Oxley Section 404: Executives Are Accountable Tighter Reporting Deadlines Personal Accountability Stricter Penalties Audited Internal Controls Guess Who This Affects?

16. COSO: The De Facto Control Framework  3 Broad Objectives – Effectiveness/Efficiency of Operations – Reliability of Financial Reporting – Compliance with Applicable Laws and Regulations  Sarbanes-Oxley sec. 404 – Focuses on Financial Reporting

17. Steps Towards Sec. 404 Compliance 1.Document the Process 2.Source the Risks 3.Document the Controls 4.Validate Operation of Controls 5.Certify Financial Statements

18. Sarbanes-Oxley Relief from Oracle Compliance Challenge Oracle Strategy Tighter Reporting Deadlines Data center and information consolidation Real-time Reporting of Material Changes Daily business intelligence Global Regulation Global reporting in local language and currency CEO/CFO Accountability Business process automation, view-from- the-top consoles

19. Project Management Tools Workflow Management Tools System Configuration Tools Survey Tools Sampling and Statistical Tools Process Control Limits Procedures Documentation Tools Risk and Controls Library Audit Universe Document Management Tools Oracle Workflow Oracle Project Collaboration Oracle Files Oracle iSetup Oracle iSurvey Oracle Tutor Oracle Performance Management Framework Audit Manager Reports Oracle Audit Manager Current To Be Enhanced Future Verification: Oracle Audit Manager

20. Evolve to…  Reinvent Yourself – Up-level skills – Become the Information CEO  Know your customers and their LOBs  Find the correct services balance  Look critically at your technology investment – Are your innovations making you money?  Commit to good governance