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Organisational Study

IT INDUSTRY PROFILE Introduction


Companies in and outside the information technology (IT) industry employ information technology workers. While one might think of the typical IT worker as employed by a major software company or systems developer, the reality is that nine out of ten IT workers are found in banks, insurance companies, manufacturing plants or other non-IT businesses. A new survey by the Information Technology Association of America (ITAA) shows that not only are IT workers found mostly outside the IT industry, but that the outlook and prospects for the two groups is likely to be far different. In previous years, characterized by double digit growth and anxious investors betting on the next new thing, careers inside the IT industry appeared to be the way to goat least for those on the professional fast track. Much has changed since 2001, even as the economy slowly recovers and the overall size of the IT workforce approaches its historic high point of 10.4 million. The employment footing outside the IT industry seems surer, less turbulent. Non-IT companies are more likely to hire according to plan, far less likely to move jobs overseas, more apt to increase not cutcompensation. Whether non-IT companies offer IT workers long-term career advantages or just a temporary port in the storm remains to be seen. IT companies are hard pressed by customers to field cost effective solutions. The pressure on IT companies to cut costs is clearly reflected in this survey. This survey is a continuation of the ITAA series of reports on the IT workforce. Since 1997, ITAA has tracked employer demand for IT workers. In the run up to the year 2000, IT talent was scarce and demand exceeded supply. Because of the talent crunch, ITAA focused on the skills most demanded by employers and the education and training alternatives for gaining those skills. With job market conditions changing, ITAAs survey has evolved to explore how trends like offshore development may be changing the employment landscape. This survey reports findings in nine areas: Total IT workforce size Future demand for IT workers Demand in specific job categories Hiring and layoff activity Success at hiring to plan Babasabpatilfreepptmba.com 1

Organisational Study Skills attainment Recruitment Offshore development Compensation

MAJOR PLAYERS

IBM strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. http://www.ibm.com/ibm/us/

Computer Associates International, Inc. (NYSE: CA), one of the world's largest management software companies, delivers software and services across operations, security, storage, life cycle and service management to optimize the performance, reliability and efficiency of enterprise IT environments. Indeed, our solutions touch many areas of everyday life, from ATM transactions to airport security to online sales, customer service and medical information. http://www.ca.com/

As the world's third-largest independent software provider, SAP delivers business solutions to more than 28,200 customers in more than 120 countries around the world. We owe our success to the experience and expertise of our employees and the quality and effectiveness of our solutions. It's no wonder the best-run businesses run SAP.
http://www.sap.com/company/index.epx

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http://www.microsoft.com/traincert/. Founded in 1975, Microsoft is the worldwide leading software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software any time, any place and on any device.

The Oracle Corporation is the world's largest enterprise software company. For more than 25 years, Oracle has worked on ways to help its customers manage critical information. The company has built the only unbreakable database, with 15 international security evaluations. Oracle was the first software company to move its business application products to the Internet (www.oracle.com).

Siebel offers 23 industry-specific applications and more than 100 industry-specific solution sets. These pre-built solutions contain best practices and business processes to address the unique business needs and challenges of your industry. Siebel industry solutions minimize customization, enable rapid deployment, and significantly reduce total cost of ownership. http://www.siebel.com/

Cisco Systems is the worldwide leader in networking for the Internet. Cisco is committed to Babasabpatilfreepptmba.com 3

Organisational Study working with educational institutions around the globe to ensure that today's students master the necessary skills for success in the Internet economy. http://www.cisco.com/edu.

Dice Inc. (Nasdaq: DICE, http://about.dice.com) is the leading provider of online recruiting services for technology professionals. Dice Inc. provides services to hire, train and retain technology professionals through dice.com, the leading online technology-focused job board.

The ITT Technical Institutes are leading providers of technology-oriented postsecondary degree programs, serving approximately 31,000 students. The 70 campuses located across the U.S. offer the information technology disciplines of Computer Network Systems, Multimedia, Software Applications and Programming and Web Development, Technical Project Management for Electronic Commerce is offered online (http://www.itt-tech.edu).

SRA is a leading provider of information technology services and solutions - including strategic consulting; systems design, development, and integration; and outsourcing and operations management - to clients in national security, health care and public health, and civil government markets. (www.sra.com).

TRENDS
Study Findings The total IT workforce peaked in size in 2000. The economy shed 500,000 IT jobs in 2001, caused largely by the stock market reverses and consequent investor flight, the elimination of many dot.com and telecom firms (and the high tech businesses supporting those firms), largeBabasabpatilfreepptmba.com 4

Organisational Study scale capital expense reductions, the Year 2000 overhang of new systems and software implemented to replace older, date vulnerable assets and the recession. The IT workforce appears to have bottomed out at the start of 2002, with small but steady quarter to quarter gains since then (See Figure 1). Figure 1 Workforce 10.4 10.3 10.2 10.1 10 9.9 9.8 9.7 Baseline 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003

The U.S. economy begins 2003 with 10.3 million IT workers, up 4.2 percent from the start of 2002 (but less than one percent from last quarter). ITAA calculates workforce size by netting out the total number of IT workers hired and dismissed in the survey period from its baseline year measurement. Comparing quarter to quarter, the economy added 86,406 IT workers in the first three months of the year. While that is good news, the net gain in jobs is actually smaller than year-end 2002, where employers hired 97,118 more people than they released. The picture presented by these numbers is a marketplace slowly reapportioning its human resources (Figure 2). Gains have been made not so much in response to companies adding new workers but to a slow down in the rate at which workers have been let go.

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Organisational Study

INDIAN IT INDUSTRY PROFILE


The Indian software Industry has grown from a mere US $ 150 million in 1991-92 to a staggering US $ %.7 billion (including over $ 4 billion worth of software export) in 19992000. No other Indian industry has performed so well against the global competition. The annual growth rate of Indias software export has been consistently over 50% since 1991. As per the projections made by the National Association of Software and service Companies (NASSCOM) for 2000-01 (April 1, 2000 March 31, 2001), Indias software export would be around $ 6.3 billion, in addition to $ 2.5 billion in domestic sales. Today, India exports software and services to nearly 95 countries around the world. The share of North America (US & Canada) in Indias software export is about 61%. In 19992000, more than a third of Fortune 500 companies outsource their software requirements to India. NASSCOMs survey during 1999-2000 indicates a reversal in the mode of services offered by India. In 1991-92, offshore services accounted 5% and on-site service 95% of the total exports. However, during 1999-2000 offshore services contributed over 40% of the total exports. INDUSTRY INFRACTURE ANNUAL TURNOVER Above Rs. 1000 Cr. Rs 500 Rs 1000 Cr. Rs 250 Rs 500 Cr. Rs 100 Rs 250 Cr. Rs 50 Rs 100 Cr. Rs 10 Rs 50 Cr. Below Rs 10 Cr. NO. OF COMPANIES 5 5 15 27 55 220 2483

The NASSCOM McKinsey report on Indias IT Industries


According to NASSCOM-Mckinsey report, annual revenue projections for Indias IT Industries in 2008 are US $ 87 billion and market openings are emerging across four broad

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Organisational Study sectors, IT Services, Software Products, IT Enables Services and e-Businesses thus creating a number of opportunities for Indian Companies. In addition to the export market, all of these segments have domestic market components as well Other key findings of this report are: Software & Services will contribute over 7.5% of overall GDP growth of India. IT export will account for 35% of the total exports from India. Potentials for 2.2 million jobs in IT by 2008 IT Industry will attract FDI of US $ 4.5 billion. Market capitalization of IT shares will be around US $ 225 billion.

PROJECTED REVENUES 2008 ($ US Billion) India Based IT Services Software 23 7* 2 2 1 30 10 17 5 62 8.5 9.5** 2 5 25 38.5 19.5 19 10 87 2.1 0.6 0.4 0.2 3.3 India Centric Sub-Total (International) Domestic Total 1998

Products 8 IT-enabled Services e-Business Total 15 4

50 12 Exports of $50 billion in 2008

* Legacy/Client server, ERP and Package work and Internet all have different proportions of work outside India where revenue are not export revenues. ** Resale of imported products included.

Promotion of IT Government Incentives:

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Organisational Study

With the formation of new ministry of IT, Govt. of India (GOI) has taken a major step towards promoting the domestic industry and achieving the full potential of the Indian IT entrepreneurs. Constraints have been comprehensively identified and steps taken to overcome them and also to provide incentives. Thus for example, venture capital has been the main source of finance for the software industries around the globe. However, the majority of the software units in India are in the small and medium enterprise sector and there is a critical shortage of venture capital kind of support. In order to alleviate this situation and to promote the Indian IT industry, the GOI has set up a National Task Force on IT and Software Development to examine the feasibility of strengthening the industry. The Task Force has already submitted it recommendations, which are under active consideration. Norms for the operations of venture capital funds have also been liberalized to boost the industry. The GOI is also actively providing fiscal incentives and liberalizing norms for FDI and raising capital abroad. Recently, an It committee was set up by the Ministry of Information Technology, GOI, comprising of non-residential Indians (NRI) professionals from the United States to seek expertise and advice and also to step up U.S. investments in Indias IT sector. The committee is chaired by Minister of Information Technology,GOI, and the members include Secretary, Ministry of Information Technology and a large number of important Indian American IT entrepreneurs.

The group will: Monitor global IT development and refine Indian IT policy to meet global requirements. Specifically, this will help angel investors, venture creators and incubation Promote the growth of human resource development in the IT sector with the aim of creating quality-based education. Babasabpatilfreepptmba.com 8

Organisational Study

Promote R&D in the sector by identifying thrust areas and drawing up a blueprint for action.

Indias most prized resource in todays knowledge economy is its readily available technical workforce. India has the second largest English-speaking scientific professionals in the world, second only to U.S. It is estimated that India has over 4 million technical workers, over 1832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. Government of India is stepping up the number and quality of training facilities in the country to capitalize on this extraordinary human resource. It is the knowledge industry that will help take the Indian economy to a sustained higher rate of growth and the policy makers are full aware of this.

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Organisational Study

HISTORY OF ORACLE CORPORATION

Almost thirty years ago, Larry Ellison saw an opportunity other companies missed when he came across a description of a working prototype for a relational database and discovered

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Organisational Study that no company had committed to commercializing the technology. Ellison and his cofounders, Bob Miner and Ed Oates, realized there was tremendous business potential in the relational database model--but they may not have realized that they would change the face of business computing forever. Today Oracle (NASDAQ: ORCL) is still at the head of the pack. Oracle technology can be found in nearly every industry around the world and in the offices of 98 of the Fortune 100 companies. Oracle is the first software company to develop and deploy 100 percent internet-enabled enterprise software across its entire product line: database, business applications, and application development and decision support tools. Oracle is the world's leading supplier of software for information management, and the world's second largest independent software company. Oracle has always been an innovative company. It was one of the first companies to make its business applications available through the internet--today, that idea is pervasive. Now Oracle is committed to making sure that all of its software is designed to work together-the suite approach--and other companies, analysts, and the press are beginning to acknowledge that Oracle is right. What's in store for tomorrow? We will continue to innovate and to lead the industry--while always making sure that we're focused on solving the problems of the customers who rely on our software.

Time Chain

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VISION STATEMENT:
Principles of the Information-Driven Enterprise Adhering to three principles has saved Oracle more than US$1 billion in operating costs so far. With these principles, which are incorporated into the design of our software, we have coordinated and streamlined all our business processes worldwide Simplify: Speed information delivery with integrated systems and a single database

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Organisational Study Standardize: Reduce cost and maintenance cycles with open, easily available components. Automate: Improve operational efficiency with technology and best practices At Oracle, we believe that our customers get more from their information by using Oracle's software and services and applying these principles. Many have already improved their ability to use information and IT as strategic assets and are now able to share data and processes, measure results for continuous improvement, align stakeholders, and communicate a single truth to all their constituents.

SUMMARY OF ORACLE BUSINESS VALUES


Certain core values are essential to Oracles business: INTEGRITY: Oracle employees demonstrate honesty and sound ethical behavior in all business transactions and personal integrity in all dealings with others. MUTUAL RESPECT: Oracle employees consistently treat individuals with respect and dignity. TEAMWORK: Oracle employees work together as a team for the collective interests Of Oracle. COMMUNICATION: Oracle employees share information widely and effectively with each other, except when confidentiality is required. INNOVATION: Oracle employees seek innovative and creative approaches to problem solving. CUSTOMER SATISFACTION: Oracle employees consistently treat customer satisfaction as a top priority.

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Organisational Study QUALITY: Oracle employees make excellence and quality a part of day-to-day work processes and seek continuous improvement in all that they do. FAIRNESS: Oracle employees are committed to dealing fairly with customers, suppliers, and one another. COMPLIANCE: Oracle employees comply with all laws and regulations that govern Oracles business. BUSINESS CONDUCT: Oracle employees observe the standards that have been established by Oracle and act ethically in their approach to business decisions.

Oracle

in

the

Community

Mission

Statement

Oracle as a corporation, and Oracle employees as individuals, works actively to improve the quality of life for people and address community needs. By preferring to solve problems, rather than managing their consequences, we take action to effect positive change in our communities.

About Oracle Diversity Oracle's diversity vision starts with cultivating an environment that is inclusive of all employees. Individual differences present us with opportunities to examine business issues

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Organisational Study from varying perspectives. Incorporating these different viewpoints gives us greater agility and creativity. To effectively compete on a global scale, we believe it will take the strength of a unified workforce fully engaged in meaningful work. Valuing diversity -- by using effective communication skills and demonstrating mutual respect -- is simply good business. At Oracle, we can make our diversity vision the way we do business every day, world-wide. Oracle believes in a workforce comprised of qualified individuals with ample support opportunities. To this end, we promote our Equal Employment Opportunity and diversity recruitment programs, and provide continuous training and mentoring to our employees.

Corporate Governance at Oracle Corporation


The Board of Oracle Corporation has throughout its history developed corporate governance practices to fulfill its responsibility to Oracle Corporation stockholders. Although recent events involving corporate accounting fraud has brought much attention to corporate governance principles, having good practices in place is not novel at Oracle. The composition and activities of the Company's Board of Directors, the approach to public disclosure and the availability of ethics and business conduct resources for employees exemplifies the Company's commitment to good corporate governance practices, including compliance with new standards.

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Organisational Study As part of these practices, the Board has adopted the following Corporate Governance Guidelines to help ensure that it has the necessary authority and procedures in place to oversee the work of management and to exercise independence in evaluating Oracle Corporation's business operations. These guidelines allow the Board to align the interests of directors and management with those of Oracle Corporation's stockholders. These guidelines are subject to future refinement or changes as the Board may find necessary or advisable for Oracle Corporation in order to achieve the above objectives. Oracle continually applies good corporate governance principles to multiple areas of the Company. In addition to these guidelines Oracle has had a Code of Ethics and Business Conduct since 1996, which was recently modified in 2001. The Board has also adopted charters for each of the following standing Board Committees: Finance and Audit Committee, Independent Committee, Committee on Compensation and Management Development, and Nomination and Governance Committee.

Oracle Executives

Lawrence J. Ellison has been Oracle's Chief Executive Officer and a director since he co-founded the Company in June 1977. Mr. Ellison served as Chairman of the Board from May 1990 until October 1992.

Safra A.Catz has been a member of Oracle's Board of Directors since October 2001, serves on Oracle's Executive Management Committee, and is responsible for global operations.

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Organisational Study

Gregory B. Mafei has been a member of Oracle's Board of Directors since June 1995 serves on Oracle's Executive Management Committee and is also an Executive.

Charles E. Phillips, Jr. has been a member of Oracle's Board of Directors since January 2004, serves on Oracle's Executive Management Committee, and is responsible for field.

Oracle Board of Directors


Dr. Michael J. Boskin: Professor of Economics at Stanford University Jeffrey Berg: Chairman and Chief Executive Officer of International Creative Management. Joseph Grundfest: Professor of Law and Business at Stanford Law School Donald L. Lucas: Venture capitalist since 1960 Jack F. Kemp: Co-director of Empower America and former member of the US Congress. Hector Garcia-Molina: Professor of computer science engineering, Stanford University H. Raymond Bingham: Executive Chairman of Cadence Design Systems, Inc.

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Organisational Study

The Oracle in India story


The Beginning More than fifteen years ago, before India became recognized as the dynamic force in information technology that is known to be today, Oracle was one of the first multinational software companies to set up operations in India. Beginning with a distributorship through Tata Consultancy Services in 1987, the company established direct operations with a liaison office in 1991, and in 1993 formed Oracle India Private Ltd., a wholly-owned subsidiary of Oracle Corp., focused on the sales and marketing of Oracle software in India. In recognition of the significant pool of highly educated software development engineers based in India, Oracle opened its India Development Center (IDC) in Bangalore in 1994. This early commitment to the country marked Oracle's vision for India as both a domestic market and a center for research and development. The company became the first multinational company to establish core software development operations in India to support its global product development strategy and to address the needs of the local Babasabpatilfreepptmba.com 18

Organisational Study market. Initially, the India Development Center took on development work on a project basis for different development divisions as determined by the company's headquarters in Redwood Shores, California. As word spread throughout the company of the India team's record delivery time of development projects that met the highest standards of quality, the IDC was tasked with more strategic projects and increasingly demanding requirements. Today Oracle has its India Development Centre located at Bangalore and Hyderabad and sales and marketing offices across six Indian cities. A Turning Point In 1996, the India development team was challenged with taking on a strategic research and development project. Ultimately the team's success on the project would propel the IDC into the development spotlight at Oracle. The India team was given three months to develop the first version of what would become the basis of Oracle's Internet computing technology, driving the shift to simplified, low-cost computing machines which could access information stored on larger, professionally managed servers.

With no additional resources, the IDC, having been asked only to show version one of the technologies, delivered instead a second-generation version three months to the day from the start of the project. Concurrently, the team also met all deadlines and quality standards for the other 16 projects with which the IDC was tasked with at that time. The world-class development abilities of the India development team were impressed upon the highest levels of the company, garnering praise and recognition from Oracle founder and CEO, Larry Ellison. This became a turning point for the India organization, transforming the India Development Center into a growth engine, integral to the future and vision of the world's largest enterprise software company. From that point forward the India Development Center was integrated into Oracle's global software development organization, working on the latest technology for Oracle customers around the world. At the same time, Oracle's increasing success in the country established the company as the dominant provider of database and enterprise software to the government and corporate sectors in India.

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Organisational Study

Oracle India Factsheet


1. Oracle has been operating in India for more than 15 years. 2. Oracle is one of the largest multinational employers in India with over 6,700 employees. 3. India is Oracle's fifth-largest market in Asia in terms of revenue. 4. India accounts for Oracle's largest research and development investment outside the United States. 5. India also hosts several of Oracle's global divisions and services including global consulting, global support, Oracle On-demand, Internet sales and financial accounting and analysis. 6. The entire Oracle product family - Oracle Database 10g, Oracle Application Server 10g, Oracle Collaboration Suite and Oracle E-Business Suite are available in India. Oracle Database 10g supports transactions and interfaces in 13 major Indian languages including Assamese, Bengali, Gujarati, Hindi, Kannada, Malayalam, Marathi, Oriya, Punjabi, Telugu and Tamil. 7. Oracle is committed to the Indian market through its extensive network of more than 200 channel and alliance partners in India under the Oracle PartnerNetwork, including iflex Ltd., Infosys, Satyam, Sonata, Tata Consultancy Services and Wipro. 8. Oracle currently has more than 6000 technology customers and 400 applications customers 9. India is home to more than 220,000 members of Oracle's online developer community, Oracle Technology Network.

Oracle India Milestones


1987 Oracle Corp. begins operations in India through a distributorship with a local partner. 1991 Oracle establishes a liaison office to better serve customers. 1993 Oracle forms a wholly owned subsidiary focused on the sales and marketing of Oracle software in India. 1994 Oracle opens the India Development Center (IDC) in Bangalore, becoming one of the first multinational software companies to set up a development center in India. 1996 IDC successfully delivers the first version of Oracle's Internet computing technology. 1998 Oracle India establishes a second development center in Hyderabad dedicated to developing enterprise business applications

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Organisational Study 2002 Business Today- Hewitt survey recognized Oracle as one of the best employers in India. 2003 Oracle and HP launch an "E-Governance Centre of Excellence" in Gurgaon to support E-Governance initiatives by central, state and local government bodies in India. 2003 Oracle India launches Oracle Collaboration Suite, Oracle E-Business Suite Special Edition and Oracle Database Standard Edition One. 2004 Oracle India grows to more than 6,700 employees. Recognized among the top 25 best employers in the Hewitt - CNBC Best Employers Award

ORNAGIZATION STRUCTURE

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MANAGING DIRECTOR
HUMAN RESOURCE Director HR

PUBLIC SERVICE Director Public Srvice FSI General ManagerSales TELCO General ManagerSales

E BUSINESS Sr Director eBusiness CC & R Director CC & R

CONSULTING Director - Consulting EDUCATION Director - Education SUPPORT SERVICE Sr Director - OSS

FINANCE Admin. MARKETING Director - Marketing LEGAL Legal Councel & Co. Secretary

ORACLE DIRECT SALES INTERACTION CENTRE Genaral Mannager PRE SALES SALES CONSULTING Developer Sales Consulting Manager, Oracle Direct

MANUFACTURING General Manager-Sales

GENERAL BUSINESS General Manager-Sales

ALLIANCE & CHANNELS Director- Allc. & Channels

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Oracle India Organization Culture:


Oracle promotes a culture that can be best described by the following behaviour Achievement focused Humanistic and valueing diversity Collaborative Innovative and flexible Taking responsibility Accountability (doing what customer say customerll do) Working with on going change and ambiguity Committed to ongoing self learning Underpinning and embedded within these cultural trait are our core value of Trust, Respect, Integrity, Innovation, Customer Centricity and Value Creating Organization.

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Organisational Study Oracle people management processes are designed to support and reinforce our values and culture. Oracles Selection, Induction, Performance & Recognition processes incorporates and reinforces its value and culture. Its professional and management development programmes and tools support the ability to individualy lead and champion our values and culture. At an organizational level Oracle Corporation has a number of programs in place to develop its culture and measure the extent to which Oracle Corporation are living our values.

Oracle India Values and Human Resource


Values at Oracle Corporation The reputation of an organization can be its greatest asset or its greater liability. Oracle Corporations reputation is largely determined by how it does business. How Oracle Corporation does its buseiness, is a reflection of values inportant to them. Having shared corporates values that act as a filter, or provide a framework to guide employee in making decisions. Understanding Oracle Corporations corporates values will assist both personally and professionally align employees with the corporate direction. Every individual has his or her own personal values, without having shared values (the corporate filter) Oracle Corporation would be missing that overall framework to guide our responses, behaviour and decisions. Lets look at our individual values and explore each further: Respect Trust 24

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Customer Centricity Integrity Innovation Value Creating Organization Training programs at Oracle Corporation.

Human Resource development is a part of the companys overall business strategy and links employees development with the companys continous improvement efforts. Training gives employees the skills to continue their learning and transfer of knowledge or skills from one work situation to another. Objectives of training activities: To delelop knowledge and skills of employees To help employees perform productively and effectively in their current job assignment To prepare employees for challenging work involving higher responsibility

All trainings will be based on need identified either during the annual performance assessment or recommendation by the Functional Head / Manager. Training could be for technical, professional or personal development of employees. Employees may also be nominated for employees and management development programs run by Corporate HR at various locations in the world based on identified needs.

Oracle Corporation offers the following training programs:


Internal Training The company organises internal programs to address the needs of the employees. Includes formal training and development programs, vendor training or any other training for the purpose of acquiring skills and knowledge. Various In-House training will be available to suit the training needs of various lines of business. Information regarding inhouse course is usually dessiminated through the Head of Deapartment and/or Human

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Organisational Study Resource. Employes who would like to attend the in-houseproduct training need to obtain approval from their managers and the Head of the Department. Overseas Training Employees may be nominated to attend training overseas with dues approval. Public Scheduled Courses Employees could attend the local short courses for some specific specialized skills. Mandatory Training Programs Data Privacy Awareness Training. Code of Ethics & business Conduct Course Oracle Corporation Acceptable Usage Policy

EEO/AA Oracle's Equal Employment Opportunity: We believe in treating each employee and applicant for employment fairly and with dignity. We base our employment decisions on merit, experience, and potential, without regard to race, color, national origin, sex, marital status, age, religion, disability, veteran status, or sexual orientation. Our Equal Opportunity policy is founded on the philosophy that our employees and applicants for employment must be treated equitably. We do not discriminate based on personal preference or physical characteristics, and our experience confirms that supporting policies and practices with a strong commitment to equal employment opportunity is a good business practice. Recommended Training Oracle offers a suite of training products to enhance the personal development of all employees within a diverse work place. Tailored to meet the needs of our distributed, global organization, this program is presented through various media, including facilitated workshops as well as multimedia self-study courses. Because we view diversity as a business reality, diversity concepts and values are integrated into all employee and management development training.

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Organisational Study Mentoring Oracle actively supports the practice of mentorship. We see mentoring as a business tool to grow and transfer skills and knowledge among employees. Mentoring relationships and programs range from formal and structured to informal information sharing and networking.

Recruiting
Oracle has embarked on an aggressive recruitment strategy and conducts an average of more than 50 recruitment fairs per year. With the excellent pool of talented IT skills in India, Oracle prospective employees undergo a competitive evaluation process. The company extends employment offers only to those candidates that meet rigorous quality standards and have excellent qualifications, skills, aptitude and passion. Oracle received applications from more than 200,000 candidates over an average 18-month period. Seeking the best the industry has to offer, Oracle hires less than one percent of the applicants. Ensuring a challenging and rewarding environment, Oracle India offers an unparalleled opportunity to define the next wave of technology and business innovation. New recruits are inducted into Oracle India with comprehensive technical and soft skills training, including team building and managerial effectiveness. Committed to employee development, Oracle India makes every effort to make employees successful through a range of innovative programs including professional development, internal focus groups, work-life balance initiatives, and employee focused health programs. Through these initiatives and a continuing focus on the latest technology and learning, attrition rates are less than half the industry average. Oracle Diversity identifies job fairs, recruiting events, community and professional organizations, which target women, minorities, people with disabilities and other underrepresented groups to recruit qualified applicants nation-wide. Babasabpatilfreepptmba.com 27

Organisational Study

Employment Relationship
Oracle makes no express or implied commitment that your employment will have a minimum or fixed term, that Oracle may take adverse employment action only for cause, or that your employment is terminable only for cause. Either you or Oracle may terminate the employment relationship at any time for any reason. Additionally, Oracle may take any other employment action at any time for any reason. No one at Oracle may make, unless specifically authorized in writing by the Board of Directors, any promise, express or implied, that employment is for any fixed term or that cause is required for the termination of or change in the employment relationship.

Steps

to

hiring

candidate:

Regular Employee

Post your open position internally on Oracle iRecruitment. The position must be posted internally for 14 days before an offer can be generated.

To hire a candidate from an external recruiting firm you must submit a requisition to pay for the placement fees.

Interview consistently and fairly by asking similar questions of each applicant Candidates should fill out the Offer Letter Request, via the Web Offer Letter Generator under Candidate Offers in Self Service Applications.

A Background check will be initiated at this time. Background checks are required for all new and rehired employees, unless they have a completed favorable background check with Oracle within the previous 12 months or have a valid Government Issued Security Clearance issued within the previous two years.

HR will generate an offer letter once HR Offers receives all of the following: completely approved offer request, valid jobpost number (in offer request), and complete applicant tracking paperwork

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Organisational Study Once the offer letter is sent to the candidate, you will receive an Offer Sent notification via email.

If your candidate accepts, go to your Notifications in Self Service Applications and select the "Accept" decision button to complete the workflow. The new hires can start employment with Oracle. Hiring managers should respond to the "New Hire Start Date" email sent by the HRSSC, Please respond with his/her official Oracle start date, so that we may complete the hiring process.

If your candidate declines, go to your Notifications in Self Service Applications and select the decline decision button to complete the workflow.

Oracle Temporary

Submit Applicant Tracking paperwork: an Applicant Tracking Form and resume(s) to your HR Representative.

Obtain appropriate approvals through the Workflow. Once the final approvals reach HROFFERS, a Temporary Hire Packet will be sent to the hiring manager for their temporary employee. The hiring manager is responsible for making sure the packet is filled out and returned to Oracle HR

If your candidate accepts, HR Operations will enter your Oracle Temporary into the database, assign an employee id number, and generate an Oracle Alert.

Internal Transfer

Minimum Time In Position Guidelines Role Individual Management Contributor & Minimum Time in Position 12 months

India 24 months* *India has a 24-month requirement until further notice.

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Organisational Study It is the hiring manager's responsibility to discuss the following areas with the releasing manager before completing the "Transfer/Internal Job Offer" form in Oracle Self Service HR:
o o o

Employee's performance Effective Date of Transfer Transfer Process Details

Transferring employees may not begin work in their new positions until the transfers have been fully approved. The manager is to release the employee within thirty days from the initiation of the "Transfer/Internal Job Offer" form. International Transfers

An international transfer is a "permanent" transfer to an Oracle entity outside of the employees home country. Please log into Self Service Applications, click on Candidate Offers, and complete the template. Before an International Transfer is complete all required approvals must be obtained.

BUSINESS CONDUCTS
General Guidelines

Oracle sets moral standards and upholds ethical business practices. Ethical Standards

At Oracle Corporation one must understand and conform to law, to custom, if within the law, and to human values. Oracle's values of integrity, mutual respect, teamwork, communication, and innovation are the overriding principles that guide us in our business

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Organisational Study conduct. Because ones behavior on the job and in conduct of Oracle business is a direct reflection on the company, one should avoid or correct any situation in which your actions might adversely affect, publicly embarrass, or discredit Oracle. Insider Trading

Executive Officers of the Company continue to be prohibited from engaging in any speculative transactions, such as short sales, puts, calls, straddles or similar transactions. Extending/ Receiving Business Coutesies

Oracle recognizes that accepted business practice and common courtesy sometimes require you to extend entertainment, favors, and small gifts to prospects and customers. Export Copliance

Federal controls regulate exports of products and technical data from the U.S. and the reexport of these items from one foreign destination to another. Oracle products are subject to these controls. Protecting Confedential Information

Besides its people, Oracle's most important assets are its intellectual property: copyrights, patents, trademarks, and trade secrets. When you joined Oracle, you signed a Proprietary Information Agreement obligating you to safeguard company and customer confidential information and trade secrets. The agreement precludes you from directly or indirectly using or disclosing, except as necessary in the ordinary course of business, confidential information obtained during the course of your employment. These obligations continue throughout your employment and after you leave. Conflict of Interest

A conflict of interest describes any circumstances that could cast doubt on your ability to act with total objectivity regarding Oracle's interests. You should avoid financial, business,

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Organisational Study or other relationships, which might oppose Oracle's interests or might conflict with the performance of your duties.

Expenses Reporting and Accounting

Oracle adheres to the highest standards of financial reporting and disclosure, and we expect the same of you. All information and reports you submit-such as timesheets, vacation reports, product order or shipment reports, expense reports, purchase requisitions-should be accurate to the best of your knowledge. False, misleading, or dishonest reporting inside or outside the company is strictly prohibited. Records Retention Policy The Oracle Records Retention Policy and Schedule sets forth the guidelines governing your retention and disposal of Oracle records. This policy and schedule is intended to ensure that Oracle maintains company records in accordance with applicable legal, regulatory and business requirements. You are responsible for understanding and complying with the Records Retention Policy and Schedule, which is located on Legal's webpage. Travel and Entertainment

Oracle Travel (managed by Carlson Wagonlit Travel) provides Oracle employees with complete business travel services, including agent-assisted reservations and e-Travel support and fulfillment.

WORK ENVIRONMENT
Workplace Security

Oracle cares about your safety. We maintain security services at most of our facilities and limit vendor and visitor access within the company. Security personnel can assist you in most emergency situations, report incidents, and resolve lost-and-found issues. Workplace Safety

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Organisational Study Oracle supports an active health and safety program. We expect you to support these efforts by reporting any unsafe conditions or practices, helping to minimize hazards and accidental injuries and responding to directives and procedures in an emergency. No Smoking

The use of tobacco products in the workplace is prohibited at all facilities. Employees may smoke in designated outdoor areas only. Substance Abuse Oracle is concerned about situations where the use of alcohol or drugs interferes with an employee's health or performance, adversely affects the health, safety, or performance of others, or becomes detrimental to Oracle's business. Flexible Work hours Each of us runs on a different internal clock. Flexible work hours enable you to work when you are at your best when you can produce your highest quality and quantity of work. This flexibility, available to most full-time employees, allows you to efficiently schedule personal business, commute time, and volunteer commitments around your work responsibilities. Your manager must review and approve any flexible work-hours arrangement you propose. Telecommuting Oracle supports telecommuting, on a part- or full-time basis, with your manager's approval. Your ability to telecommute depends on the nature of your job and whether telecommuting promotes departmental goals as determined by your manager. Telecommuting may be a temporary or long-term work option or used for a specified time to accommodate a special project. Transportation Program You can take advantage of vanpool and carpool options, daily shuttles that operate between Oracle buildings and CalTrain stations, transit ticket sales, and bike lockers. We also offer Transportation Hotline and supply transportation information in the lobby kiosks. Oracle in the Community

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Organisational Study Oracle believes in upholding its responsibility to the communities and environments in which we work. As part of this responsibility, Oracle sponsors programs that allow employees and the company to contribute time and resources to a variety of social interests.

BENEFITS
ORACLEFlex Oracle offers a comprehensive benefits plan, called Oracleflex that enables eligible employees to choose the benefits and coverage levels that best meet their needs and those of their eligible dependents. Employee Stock Purchase Plan Oracle's Employee Stock Purchase Plan lets you purchase Oracle common stock at a discounted market price. By enrolling in the plan prior to any offering period, you may contribute up to 10% of your cash compensation (salary, bonus, and commission) through payroll deductions. Employee Assistence Program EAP services may help with stress, depression, and difficulties with children, divorce, alcohol abuse, drugs, job worries, marital, financial, or legal problems. Life Solution Program A free employee benefit designed to help you balance your work, family, and personal responsibilities. The LifeSolutions Program is an easy way for you to receive practical advice, useful materials and referrals, including:
o

Information on a variety of topics, such as becoming a parent, understanding the process of adoption, caring for elderly relatives or relatives with disabilities, managing your time effectively, or creating a living will; Customized referrals to confirmed openings at child and elder care programs; Personalized reports about public and private schools, colleges and financial aid; and Practical advice on a variety of topics.

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Organisational Study Workers Compensation

This insurance is provided to protect you if you are injured or become ill and the injury or illness arises out of and in the course of your employment. Workers' Compensation insurance provides benefits including medical care and wage-loss reimbursement which is paid by Oracle. Vacations Employees working at least 35 hours per week accrue 13 days of vacation a year (which calculates to approximately 4.33 hours per pay period) for your first three years of employment, and 18 days a year (6 hours per pay period) after three years. Holidays Oracle offers seven paid holidays a year. They are:

New Year's Day Memorial Day Independence Day Labor Day Thanksgiving (2 days) Christmas

COMPENSATIONS
Pay Schedule

Oracle pays you semi-monthly, on the 15th and the last business day of the month. Applicable deductions, including federal, state, and local income and payroll tax withholdings are taken out of each payment. If your employment terminates, you are paid through the last day you work. Timesheet All Non-exempt employees are required to record all hours, including starting and ending work time and meal periods in order to be properly compensated. They also must report all

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Organisational Study exception time including, overtime (if any), vacation taken, jury duty pay, military pay, and shift premiums each week. Overtime

An employee works in a nonexempt position; he or she is eligible for overtime pay. The employee's manager must authorize overtime work in advance. Focal Salary Review This process facilitates compensation budgeting, accurate competitive analysis, and timely review of all employees. Salary increases are based on your productivity and contributions, company performance, market comparisons with competitor companies, and other factors Oracle may wish to consider at its sole discretion. Performance Bonus Program Twice a year, in June and December, Oracle management reviews all eligible employees' performance for possible cash bonus rewards. Bonuses are not considered entitlements. Bonuses are discretionary. They are included as earnings in your paycheck. Patent Award
o

Oracle maintains an active Patent Award Program. Report potentially patentable developments to Patent Operations in the Legal Department for evaluation as soon as practical. Information on patents and the patent program can be found at http://legal.us.oracle.com.

Employee Referral Program

Oracle's Referral Bonus program pays the following amounts to those who refer people who are hired for work at Oracle: Salary Amount for new hire $0-$39,999 $40,000 and up Amount of Referral Bonus $500 $1000

The referral bonus amount may be different if the new hire's division is running a special referral bonus program.

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EMPLOYMENT POLICIES

Employment Eligibility

As a new employee, you must submit a completed, verified Form I-9 within three working days of your starting date, or you cannot continue to work. Any Oracle Manager or Human Resources employee may review your identity and work eligibility documents and sign your form

Employment Catagories

Most positions at Oracle require full time commitment. Some jobs, however, are better suited for part time or temporary employment.

Open Communication

To enhance open, honest, and regular communication, we encourage one-on-one meetings between you and your manager. These meetings are an opportunity for mutual learning and information exchange, and they provide a chance to explore ideas and issues. Feel free to discuss candidly complaints and concerns with your manager to prevent or quickly resolve them.

Equal Employment Opportunities

We believe in treating each employee and applicant for employment fairly and with dignity. We base our employment decisions on merit, experience, and potential, without regard to race, color, national origin, sex, gender, marital status, age, religion, disability, or sexual orientation.

Harassment

Oracle is committed to providing a work environment that is free of discrimination. Oracle does not tolerate harassment of any kind, including harassment based on sex, gender, race, color, religion, age, mental or physical disability, national origin, marital status, veteran status, sexual orientation, or any other characteristic protected under federal or state law or local ordinance. Unlawful harassment may take many forms, including verbal, visual, or physical conduct that creates an offensive, hostile, or intimidating work environment.

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Organisational Study Personal Relation In Work Place

Personal relationships between employees, although not encouraged, are acceptable as long as the employees maintain workplace conduct consistent with effective and efficient work performance. Personal relationships in the workplace should be mutually consensual and should not affect Oracle's business in any way

Non-Oracle Employment

We strongly discourage you from seeking additional employment outside of Oracle. Before accepting outside employment, review the Proprietary Information Agreement you signed when you joined the company.

Personal Information

Your personnel file contains personal and job-related information about you. We use this information for internal purposes only. We will not release it, except as required by law, to any external person or agency without your written permission.

International Transfers and Assignments

International assignments are Company initiated and may be short or long term, extending from three months to three years, with a possible extension to four years. All international assignments require the appropriate senior management approvals.

Relocation

Oracle pays for certain relocation expenses if they are included as part of your written employment offer. Relocation benefits are generally specified in the offer letter or transfer approval. All relocation reimbursement are subject to current IRS eligibility guidelines. You should consult your tax advisor about the potential tax implications of your move.

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MARKETING & FINANCIAL STRATEGIES

Oracle Corporation Marketing Strategy for SMBs


The biggest challenge for Oracle Corporation is to tap the SMB segment, where there seems to be an enormous growth potential and the segment not being tapped well by the Babasabpatilfreepptmba.com 39

Organisational Study major players. Oracle has formed strategies for entering this segment and the same can be discussed as below:

Oracle into SMB Segment


E-Business Suite Special Edition of the Oracle Corporation will be a channelonly product. The vendor being applications-focused company and key element of its SMB applications market on its ability to mobilize the channel. The companys commitment to SMB partners rests on the foundation built over the past few years. Challenges: The development of a more comprehensive partner road map that defines rewards and commitments at each level of the partner program specific to this initiative. Greater emphasis on mentoring new partners in the sales consulting and implementation processes via training and the creation of close working links between new partners and its consulting group.

New SMB Application Strategy


Oracle has made significant structural and procedural shifts in its partnering strategy and channel field practices, that include broader partner access to Oracles product line and higher levels of accountability for field execution. Oracle is making commitments to partners in the success of specific partner initiatives meaningful to the companys strategic direction. Thats what makes the companys E-Business Suite Special Edition channel strategy so important.

How Does It Work?


When defining channel versus direct sales territory, most application vendors use a "hard deck" defining channel territory as the ability to sell to any company below a preset annual revenue threshold (e.g., SAP defines the territory for small business partners as any company having less than $75 million in annual revenue).

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The bases of this initiative are: Partners have exclusive access to the E-Business Suite Special Edition implementation tools and supporting collateral. Direct sales reps cannot sell the product and must work with partners to sell and implement the product. Partners have exclusive access to customers with less than $75 million in annual revenue (considered one of the target audiences for the offer). If partners find an opportunity with a customer above that revenue threshold, they can either attempt to position/sell the Special Edition version with an Oracle field sales rep or provide the lead to an Oracle rep to position the full product (the more likely scenario). In providing the lead to Oracle, the partner qualifies for a referral fee and can position it to fulfill the related services. Partners are provided access to Oracle Accelerators (OAs), a set of implementation best practices built around specific business processes that partners can use to speed deployment.

Benefits for Partners:


1. Benefit from having access to an open market, with no competing partners or interference from the Oracle direct sales force in accounts under $75 million. 2. Each partner is assigned a dedicated account manager that is tasked with and compensated for helping partners close deals. 3. The brand and tools to help partners enter new markets and win more clients, specifically smaller ones that would not have previously been prospects for EBusiness Suite Special Edition. 4. Allows a partner to reduce traditional implementation processes to a level that supports SMB customer expectations around time and cost. 5. Allow partners to refocus resources on winning new accounts and expanding customer footprints through upselling and cross-selling additional Special Edition modules.

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Organisational Study 6. Smaller customers make decisions fast; still smaller accounts are unaccustomed to the more formalized sales and implementation approach of multifunctional, businesswide applications. Partners will point out that these customers dont have the same rigor as larger ones in evaluating and implementing software to their specific needs. 7. The partner must educate the customer at each stage with strong project management skills. Oracle is also making its Application Demonstration Services (ADS) available to partners for support in running demos out of its Redwood Shores facility. This is something partners have been after for years and will allow them to perform a wider array of demos more quickly in order to improve close cycles.

SMB Market Segmentation: Oracle has segmented the SMB market into three tiers: the lower tier (companies with less than $100M in annual revenue), mid-tier (companies from $101M to $500M in annual revenue), and upper tier (companies with more than $500M in revenue). The SMB products sold to each of these Segments are as follows: Oracle E-Business Suite Special Edition will be available to the low end through the growing Special Edition Partner Channel. Oracles newly acquired EnterpriseOne product will be available to companies in the low and mid-tiers through the former J.D. Edwards Partner Channel. Oracle E-Business Suite will be available to companies in the mid- and upper tiers through the Oracle direct sales force.

Conclusion: SMBs should certainly consider Oracle when they are looking for new applications. The products and associated tools and services are very competitive on functionality and price, but the marketing and channels are still a work in progress. In the field, Oracle is likely to struggle with selling, supporting, and positioning overlapping products. This is never easy, and Oracles salesforce and field management

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Organisational Study have grown accustomed to direct selling a single product line. Choosing which product and which channel are best for a particular opportunity, and then explaining it to the prospect, can be difficult.Oracle marketing has a major hurdle. In order to help grow the SMB and midmarket business, it has to address the following issues: The perception that Oracles applications and technology are designed for very large enterprises The lack of market visibility of its SMB products and channels The confusion associated with positioning multiple product lines and channels in overlapping size and vertical segments

E-Marketing
Enterprises are recognizing e-marketing's role in their businesses, and they are looking for solutions that will integrate online marketing with other marketing activities, instead of approaching the Internet as a "siloed" business segment. There's a greater emphasis on addressing e-marketing as part of an integrated marketing solution, and less focus on emarketing-related functionality for example, affiliate marketing and online advertisement management which is more-frequently addressed by function-specific point solutions. Therefore, several vendors that are not traditionally considered e-marketing players, but have their e-channel functionality transparently woven into their multichannel marketing solutions. With Siebel Systems and Oracle well-positioned to enter this quadrant in the next 12 months. Market leadership requires not only the ability to execute, but also a compelling vision that drives the market, supports customer demand for competitive differentiation and forces other vendors to seek to match what leaders are doing.

FINANCIAL SUMMARY
Oracle has consolidated its financial systems into a single instance supported by four shared service centers, initially as part of a much-publicized cost-reduction drive. As a result of this project, Oracle also improved corporate governance by standardizing its financial processes.

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Organisational Study Oracle's transition from 52 separate financial systems to a single global instance supported by shared service centers has been a challenging and, at times, painful project due to the magnitude of the change to established systems and processes. Cost savings have been realized and the intangible benefits have also been significant. ). Additionally, Oracle's CEO was focused on the single-instance strategy and the optimal use of the Oracle EBusiness Suite. Other organizations without these advantages may face additional challenges to achieve the same benefits as Oracle when consolidating their financial systems. Objective Oracle initiated a project in 1998 to rationalize its application infrastructure. A key part of this program was to consolidate the financial systems into a single instance of Oracle Applications 11i with a global chart of accounts, implement standardized financial management processes and centralize financial functions into shared service centers. In this project, Oracle hoped to realize significant economies of scale by reducing infrastructure and staff costs, while at the same time improving control of financial processes, reducing close times and improving data integrity. This would also give senior executives better visibility into business performance. Approach Oracle's approach to consolidating its financial management systems and processes had three main elements. 1. Design and implement a global chart of accounts in a single instance of the Oracle E-Business Suite. 2. Standardization of all financial management processes. 3. Development of shared service centers to centralize transaction processing.

Results

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Organisational Study Oracle identified a possible staff reduction of 25 percent and a potential 30 percent reduction in costs in the financial function. The increased emphasis on value-added services, governance and compliance means that Oracle has achieved a substantial part of its target but not the full goal of 30 percent cost reduction in finance. In addition to the tangible cost savings, Oracle realized many intangible benefits, including:

Global visibility into financial information, giving managers a clearer understanding of their performance and reducing their demands for information from the finance function.

Data quality and consistency has significantly improved through the combination of a single instance and self-service applications (for example, employees enter all their expenses online, and consultants enter their time sheets via the Internet).

The definition and implementation of standardized financial processes meant that audit costs were reduced and operating reviews were conducted more effectively, making operating reviews and audits easier

Oracle increased the value provided by the finance function. Once the shared service centers were live, Oracle realized there was an opportunity to create valueadded services in certain process areas. For example, staffing in the general ledger area has actually increased because Oracle added more qualified staff to focus on higher-value activities, such as balance sheet management (this includes proactively managing cash flow and treasury positions.

Balance Sheet for Oracle Corporation for the last 3 years 2002 FINANCIAL SUMMARY Net Sales EBITDA EBIT Net Profit Intangibles Long Term Invest. Babasabpatilfreepptmba.com USD thousands 9,673,000 3,885,000 3,506,000 2,224,000 446,000 406,000 2003 inUSD thousands 9,475,000 3,767,000 3,423,000 2,307,000 345,000 233,000 2004 inUSD thousands 10,156,000 4,103,000 3,869,000 2,681,000 60,000 45 in

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Fixed Assets Current Liabilities Long Term Debt Total Shareholder Eq Cash KEY RATIOS Net Profit Margin ROE Cur. Ratio Debt/Capital

987,000 3,960,000 298,000 6,117,000 3,095,000 2002 22.99 35.89 2.2000 0.0300

1,062,000 4,158,000 175,000 6,320,000 4,737,000 2003 24.35 2.2200 0.0300

1,068,000 4,272,000 163,000 7,995,000 4,138,000 2004 26.40 2.6500 0.0100

PRODUCTS
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AND SERVICES

Oracle Corporation Products and Services


1. ORACLE DATABASE 2. ORACLE APPLICATIONS 3. ENTERPRISE MANAGEMENT 4. MIDDLEWARE

Oracle Database
With Oracle Database 10g, the first relational database designed for Grid Computing, your information is always available and secure. Oracle Database 10g lowers the cost of ownership through automated management while providing the highest possible quality of service. And with Release 2, Oracle builds on Release 1's foundation to further improve efficiencies and reduce the cost of information management. Oracle is the best choice for large enterprises, small and midsize businesses, and departments alike.

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Organisational Study Enterprise Edition Oracle Database Enterprise Edition offers industry-leading scalability and reliability in clustered as well as single-system configurations. It provides comprehensive features for online transaction processing (OLTP) and business intelligence and delivers the lowest total cost of ownership. Standard Edition Oracle Database 10g Standard Edition is a full-featured database for small to midsize businesses and departments that require performance, availability, and security in a lowcost package. Available on single or clustered servers (up to four processors in total), Oracle Database 10g Standard Edition offers fast installation, simple configuration, and automated management.

Standard Edition One Oracle Database Standard Edition One is a full-featured database packaged for small to midsize businesses and departments. As part of the complete Oracle Database family, Oracle Database Standard Edition One offers full compatibility and scalability to tackle your biggest challenges and is available for only US$149 per user (minimum five users). Lite Edition Oracle Database Lite is a complete, integrated, secure database for building, deploying, and managing mobile applications for a broad range of mobile devices. Real Application Clusters Oracle Real Application Clusters (Oracle RAC), an Oracle Database option product, can run packaged or custom applications unchanged in a cluster of low-cost servers.

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Oracle Applications
Oracles business is information how to manage it, use it, share it, protect it. Oracle applications deliver the information foundation and complete functionality you need to grow your information-driven business. Oracle applications enable information-driven business processes that connect and automate your organization Corporate Performance Management Solutions Oracles Corporate Performance Management and applications enable organizations to achieve world-class performance by aligning the right information and resources to strategic objectives. Oracles integrated solutions provide a complete understanding of the business and communicate business metrics throughout the organization to drive accountability for performance at all levels. Built-in business intelligence delivers personalized, relevant information that allows business leaders to evaluate risk and make adjustments to minimize risk. Customer Relationship Management Solutions Oracle offers three, best-in-class CRM solutions that are specific to your businesses' individual requirements. Regardless of your industry focus, your size of business, or your individual selling model, Oracle has just the solution you need for leveraging and using enterprise information for maintaining focused and profitable customer relationships. Oracle Financial Management Solutions Oracle Financial Management applications empower finance organizations to drive enterprise value with better information for targeting growth and a platform for sustainable compliance. Oracle Financial Management provides: Visibility

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Organisational Study Improve transparency of business, financial, and compliance performance. Drive business performance and enable better management decisions through more accurate forecasts, visibility into relevant and timely management information, and a closed-loop plan-tomeasure process. Control Strengthen financial discipline and governance best practices. Confidently and efficiently comply with company and regulatory policies using control-based business and compliance applications. Efficiency Improve business processes, sustain compliance, and reduce costs. Reduce complexity, risk, and costs by consolidating information and streamlining and standardizing global processes.

Oracle Human Capital Management Solutions Achieving workforce excellence requires HR to transform from a predominantly administrative department to a function that develops and delivers programs to improve worker efficiency, effectiveness, and productivity. HR transformation requires adoption of a comprehensive Human Capital Management (HCM) strategy to drive programs development, process redesign, and technology implementations. Oracle HCM Solutions enable effective HCM strategy execution to align the workforce with strategic objectives and achieve workforce excellence. Oracle Procurement Solutions Oracle offers integrated suites of procurement applications that can dramatically cut all supply management costs. Oracle applications enable organizations to reduce spend on all categories of goods and services, streamline procurement processes, and enforce policy compliance.

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Organisational Study Oracle Project Management Solutions Oracle applications for enterprise Project Management enable project-centric organizations and departments to establish core operational processes that support full project lifecycle managementacross operations and financefrom project selection, planning and staffing, through execution, charging, and analysis. Oracle provides a single, accurate view of all project-related activities so you can choose and prioritize the right projects, assign the right resources, proactively streamline execution, and track profitability via accurate budgeting, forecasting, and billings/chargebacks. Oracle Supply Chain Management Solutions Regardless of your industry focus-high technology, automotive, aerospace and defense, life sciences, etc.-your type of business, or your individual supply chain model, Oracle has just the right supply chain management solution for you Oracle Enterprise Manager Oracle Enterprise Manager with Oracle Grid Control provides a single, integrated interface for administering and monitoring applications and systems based on the Oracle technology stack. Enterprise Manager includes complete monitoring, performance management, distributed database and application server administration, enhanced diagnostics, automated tuning, and an architecture that allows administrators to manage from anywhere.

MIDDLEWARE
Oracle Fusion Middleware is a family of standards-based, customer-proven products including Oracle Application Server and related tools and options, Oracle Collaboration Suite, and Oracle Data Hubs. Oracle Fusion Middleware enables organizations to get more out of their existing investments and more out of middlewaredelivering the broadest and most tightly integrated infrastructure software offering available. Oracle Fusion Middleware Family

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Application Server (All Editions) BPEL Process Manager Business Intelligence Collaboration Suite Data Hubs Oracle Application Server

Developer Suite Files Forms and Reports Identity Management Integration

JDeveloper Portal TopLink

Oracle Application Server 10g offers a comprehensive solution for developing, integrating, and deploying your enterprise's applications, portals, and Web sites, all based on a powerful and scalable J2EE server, complete business integration and business intelligence suites, and best-of-breed portal software. As the only platform designed for grid computing and providing full Service-Oriented Architecture (SOA) lifecycle support, Oracle Application Server gives you unmatched scalability, availability, manageability, and security. Oracle Integration Oracle Integration provides everything you need to integrate data, enterprise applications, and business processes within your organization and with trading partners. Built on Oracle's grid infrastructure, it delivers enterprise-strength performance, scalability, and manageability. And with tight integration with the Oracle E-Business Suite, it is the best product for integrating Oracle applications with third party applications, B2B protocols, and Web services.

Oracle Services
Globalization. Simplification. Standardization. Automation. Innovation. These five principles underlie everything we do at Oracle. Oracle Services help you get the most from your technology investment. Working with you every step of the way, Oracle provides a variety of services that span the complete solution life cycle. Whether you need consulting, financing, outsourcing, support or education, you can get it from the experts who know Oracle best.

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Oracle Consulting Oracle Consulting builds creative solutions for modern businesses. Drawing on industry best practices and specialized software expertise, Oracle consultants help you assess your current infrastructure, create your enterprise computing strategy, and deploy new technology.

Oracle University Learn Oracle from Oracle. Oracle University delivers the expert-led training to benefit all our Oracle communities through their Oracle relationship. Oracle on Demand Oracle on Demand delivers Oracle software as a service to Oracle customers around the world. Your Oracle software is managed by Oracle expertsat Oracle, at your location, or at a third partyto improve the performance, reliability, scalability and security of your information. Increase the efficiency of your business processes and systems with Oracle's industry-leading technology and let Oracle On Demand handle your upgrades, patches and maintenance. Now you can focus staff on strategic projects, deploying resources and technology for better user productivity and satisfaction. Oracle Support Oracle Support is the largest and most advanced support organization in the world. The global team of over 8,000 developers and 6,000 support professionals drives better results for our customers by ensuring that Oracle technology and applications deliver optimal performance. No other support organization can match Oracle's breadth and depth of technical expertise, advanced support technologies, or global reach. Ongoing updates and enhancements keep your products and systems up-to-date and running smoothly. Technical information and expert advice help you resolve problems quickly and effectively so that your Oracle Babasabpatilfreepptmba.com 53

Organisational Study technology and applications are always available and always running at peak performance. Ultimately, Oracle's Support Services offer you a superior ownership experience. Oracle Financing Oracle financing and leasing offerings are competitive, comprehensiveand one of the easiest ways to affordably acquire the right solution for your business. We offer quick approvals and simple documentation, and you can buy your entire solution of hardware, software and services from multiple vendors using a single payment structure from Oracle Financing.

Oracle Corporation Customers


Top Organizations in India run Oracle software Banking ICICI, HDFC Bank, State Bank of India, Punjab National Bank, UTI Bank, IDBI Bank Insurance General Insurance Corporation, Life Insurance Corporation, National Insurance Corporation, Telecommunications BSNL, Bharti, Hutch, MTNL, Satyam Infoways, Spice Manufacturing Coates India, Cummins, Hindalco, Hindustan Levers Limited, Indal, Kirloskar Oil Engines Limited, Lakshmi Machine Works, Maruti Udyog Limited, MRF Tyres Government Airport Authority, Indian Airforce, Andhra Pradesh Government, Central Bureau of Investigation, Gujarat Government, Indian Railways, Police departments, West Bengal Government, Coimbatore Municipal Corporation New India Assurance

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Major Customers - WorldWide


Oracle Database Amazon.com Colgate-Palmolive Dell Eurostar Eastman Company Mainstream Technologies Oracle Applications Atari C-COR Corp EMC) GE Energy John I. Haas Oracle Enterprise Manager BT Group plc. Dell GEDIS Deutsche Bank Electronic Arts Fannie Mae Student Loans Company Swiss Federal Railways Telstra TUSC USGS Water Resource Discipline Chemical Ohio Savings Bank Roman, Inc. Southwest Airlines Talk America USGS Water Resource Discipline LG.Philips LCD OTE Pella POSCO USDOT

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SWOT ANALYSIS
STRENGTHS 1. A well known global brand in software technology. 2. Its the worlds second largest software company after MicroSoft and worlds leading supplier of software for information management. 3. It is one of the first companies to make its business application available through internet. 4. It has strong finincial position, with $ 9 Billion as its revenue in the last finincial year. 5. It is the number one brand in the database market.It is the market leader with 39.1% of the market share. 6. It is the biggest Enterprize Brandin the world market. 7. It has managed to cut its IT cost by almost 80% in the next fiscal year. 8. Oracle Corporation technology can be found in nearly every industry around the world and in offices of 98 of the fortune 100 companies. 9. It has been the market leader in Relational Database 10. Oracle brand is strong enough to drive sales beyond the core database system, even through database sales represent 70% of Oracle's revenue. Business applications represent 20%, middleware 8%, and other software products such as tools 2% 11. In the area of database scalability and reliability, Oracle is leading the market with its Real Application Clusters, Gartner analyst Donald Feinberg said. RAC lets customers use Oracle on large clusters or grids of low-cost servers, gaining reliability and scalability at a reasonable cost. 12. "They have their hands on the tiller, they understand what market segment they are selling into, and they are executing with strong financial management" of the company.

WEAKNESS

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Organisational Study 1. Brand Image of being an Enterprize Organisation is making it hard for Oracle Corporation to penetrate into the small and medium businesses. 2. It depends heavily on North America market. 3. Oracle Strong in Databases, But It Must Execute On Applications. Oracle, arguably the dominant database vendor, is bent on expanding its sales in SAP. 4. The sometimes-disjointed air of Oracle's initiatives is reflected in the fact that the 11i series of its E-Business application suite hasn't yet been certified internally to run on the Oracle 10g database system, which has been out for a year, Comport pointed out. 5. While Oracle is consistently strong in database sales, its application revenue has been "up and down, erratic," 6. Oracle products apply the patches to supported versions. If older editions are in use, such as 7.x or 8.0x, they advised companies to either upgrade immediately or switch to a rival database. 7. Oracle Needs To Come Clean On Vulnerability - Although keeping mum is Oracle's standard policy, the analysts took the company to task for not spelling out the consequences of not applying the patch, and more important, whether the vulnerabilities affect older, non-supported versions of Oracle's Database Server, Application Server, and Enterprise Manager. "At worst, [this means] records in every Oracle database you own could be vulnerable," . "System administrators don't have enough information to decide which servers to prioritize or which data is most vulnerable." OPPORTUNITIES middleware and applications. But any stumbles in its plan to merge three sets of business applications will benefit its chief competitor,

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Organisational Study 1. Small and Medium Businesses(SMBs) market is the biggest opportunity for Oracle, because this market is untapped and recent studies shows that SMBs will be increasing their IT spending more than any other business sector. 2. There would be 20% increase in the demad for ERP and SCM products in the World Marke. Oracle Corporation has plans to capatalise on these opportunities. 3. "The challenge for Oracle is to move from individual products into an overall message" that sums up what it does for the customer, Comport said. That message hasn't emerged yet as Oracle engages in acquisition battles, such as the hostile takeover of PeopleSoft Inc. and the bidding war for retail software supplier Retek Inc. 4. "The challenge for Oracle is to move from individual products into an overall message," one that sums up what Oracle does for the customer. THREATS 1. IBM is the biggest competitor of Oracle Corporation in Large Business Sector., especially in Database and Application Server market. 2. In SMBs, Oracle Corporation is facing still competition from Microsoft, the leader in the market space. 3. Misconceptions like Oracle are expensive and not user friendly is the biggest threat for Oracle Corporation in SMB market. 4. Oracle remains the dominant database vendor, but will face challenges as it tries to expand its middleware and applications sales. The slightest misstep when trying to merge its recent acquisitions will only serve to benefit its key competitor, SAP.

RECOMMENDATIONS / SUGGESTIONS

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Organisational Study A) SMB market is a highly upcoming market, thus Oracle Corporation can leverage on this opportunity. B) Oracle Corporation should partner with more ISVs (Independent Software Vendors) for better distribution of its product. C) Oracle Corporation must extensively promote awareness programs to clear the misconcepetion about its Product, which it is only for big enterprises. D) Oracle Corporations image in the large business segment can be used to influence small and medium businesses that have large business as their clients. This will help Oracle Corporation penetrate in small and medium business segments. E) Oracle Corporation should device schemes and strategies to tackle competitors in both large and small business segments. F) Industries in the various territories that have not yet been penetrated must be looked with appropriate marketing strategies and captured. G) The price perception of Oracle Corporations products must be removed from the minds of SMB market through various activities such as mass media, journals, technology fest, i-seminar, etc.

COMPETITORS ANALYSIS
Oracle Corporation being the leaders of database vendors of the world, the biggest competition comes in when there is a competition with its primary product, the database market. Babasabpatilfreepptmba.com 59

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Recent reports from both IDC and Dataquest paint a picture of the database market, with growth projected to average around 6% per year. This limited growth as a bad sign for Oracle Corporation, since a great deal of our revenue comes from our database product. Although the overall market may be growing conservatively, there is a pronounced shift in the allocation of the spending within that market a shift that favors Oracles database.

The basics
There are three basic facts that lay at the root of this analysis 1. the existence of a shift in the overall database market, 2. the technical platforms involved in this shift, 3. the cost of the shift to individual organizations

The shift
The Unix database market, which is based on propietary hardware, has been losing market share, while that segment of the market that is based on low cost, commodity hardware (the x86 architecture) has been gaining. The driving force behind the shift is easy to see x86 servers are typically dramatically less expensive than other server architectures.

The destinations
Once an organization decides they will try and capture the benefits provided by commodity hardware, their next decision is which operating system to use on this low cost hardware. There are two chief destinations Microsoft Windows and Linux. Of course, the Linux option is relatively new, but the existence of choice in this area has changed the position of Windows as the only platform that can leverage the cost advantages of commodity servers to one of two choices.

The process
The price/performance advantages of using an x86-based server have been clear for many years. If this is so, why is the Unix market segment still so large? After all, the Unix database market, even today, after several years of decline, is still almost 30% of the overall market.

Answer : Migrating to another database platform is an expensive and somewhat risky proposition. Even if the database migration process itself is straightforward, there are still the additional factors of acquiring expertise and honing administrative capabilities on another platform.

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Most organizations do not make a migration decision lightly, even in the face of significant price benefits.

The question
The database market is shifting. Migration is a resource intensive and somewhat risky task. Couple these two facts with one other, and you get an important determinant of the future direction of the market. This final piece of the puzzle comes from a realization that Windows and Linux, as a platform for database servers, are relatively equal. Because of this equality, there is little reason why an organization would migrate from Windows to Linux, or Linux to Windows. The cost of the migration is still present, but the benefits are not. This realization leads to the salient question concerning database market share in the future which operating system is the target of more of these migrations? Since there is little reason to move from Windows to Linux, the destination of the moves is a decision that will affect the database market on an ongoing basis.

Evidence
400 Millions 300 200 100 0 2003

Gross market growth

Windows Linux 2004

This chart also shows that Linux has been growing faster than Windows in terms of dollar amount. But neither of these comparisons can help to determine if people are moving from Unix to Windows or Linux.

Source: Dataquest

You can determine the impact of migrations by comparing the overall growth of the Windows market and the *nix market1. If the growth in the Windows platform were higher than the *nix platform, more people were moving to Windows Gross m arket grow th from Unix than to Linux from Unix. If the *nix market grew faster than 400 Windows, the number would 300 200 indicate that more organizations Windows 100 were moving to Linux than Linux 0 2003 2004 Windows. The next chart presents Source: Dataquest these numbers for the market for the past two years.
1

The overall growth in database sales comes from both organic growth of existing databases on a platform as well as migrations. Since the overall market for Windows and *nix are approximately equal, and since the growth of a database is not platformdependent, this type of growth should be approximately equal for the two platforms. If

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Keep in mind what this chart shows. This is not simply the growth in Linux, but that growth offset by the decline in the traditional Unix market.

Market share grow th 400 Millions 300 200 100 Window s

Implication

*nix The data is striking. In the course of 0 two years, the growth in the combined 2003 2004 *nix market went from being barely a Source: Dataquest third of the growth in the Windows market to being almost 25% more. Although this data is only from the past three years, Linux has only had an appreciable effect on the database market since 20022. The relative newness of the Linux platform makes the results stand out in even sharper contrast as Linux gains maturity and enterprise acceptance, the swing may very well become more pronounced.

The implication presented by this number is clear - the destination of Unix migrations is shifting from Windows to Linux.

Vendor implications
IBM
The shift in the database market does not appear to help IBMs position in the market. IBM is essentially tied with Oracle for the top market share, as of 2004. But the numbers from that year paint a disappointing story for IBMs future prospects. In 2004, most of IBMs growth came from the mainframe, a platform they own and which is not the target of growth from migrations, and Unix. IBMs sales increased over 4% on traditional Unix platforms, while the overall revenue for the platform decreased over 1%. IBM did not do well on the target platforms for Unix migrations. For the second year in a row, IBM actually decreased their revenue on Windows. In 2004, IBM database products produced less than 85% of the revenue they produced on Windows in 2002, while the overall revenue for this platform grew 15% over the same period. On Linux, IBM is faring even worse. Although their revenue on Linux increased by more than 61% on this platform over two years, this increase was dwarfed by the overall growth on the platform of almost 465%. The following chart compares relative market share on
anything, this natural growth should be greater for Windows, since the Unix market place is mature and declining, while the Windows market is much younger, where more rapid natural growth takes place. 2 In 2002, Linux only accounted for 1.4% of the overall market. By 2004, this percentage had grown to 8.4%.

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Organisational Study Linux for Oracle and IBM vividly illustrates IBMs relative lack of success on Linux in comparison to Oracle. With the database market undergoing a shift from traditional platforms to Linux and Unix, market share numbers demostrate that IBM is unable to take advantage of this shift. IBMs market share has decreased from 35.7% to 34.1% in the past two years, and indications are that this erosion will continue.
Linux database revenue 600 500 Millions 400 300 200 100 0 2002 2003 2004 IBM Oracle

Microsoft
Microsoft, however, is much better positioned to benefit from the shift in database platforms. They own one of the targets of these migrations Windows and maintain a leading market share on that platform of 50.9%. However, even dominance on Windows will not be enough for Microsoft to capture the top spot in the database market. Their strength on the Windows platform is offset by their lack of support for Linux. As the charts earlier in this report indicate, the database market is shifting to Linux more rapidly than they are to Windows, a trend that may very well accelerate as Linux becomes a more robust and safe choice. If IBMs slide in these key migration markets continue, Microsoft may become the number two database vendor, but they have little chance of claiming the top spot in the database market.

Oracle
Although our traditional strength has been in the Unix market, our market share in the Linux arena is even better. Last year, Oracle captured over 80% of new Linux licenses. In addition, Oracles market share grew on the Windows platform. Most importantly, Oracles ability to run on both target migration platforms makes them a safer choice than Microsoft. With IBM declining and Microsoft limited to Windows, Oracle becomes the logical selection as a migration target. Even if, as Microsoft contends, the growth in Linux is due to migrations from Unix, Oracle will remain the leading database vendor by capturing the majority of these migrations, while Microsoft has to depend on the internal growth of databases on only the Windows platform, which is a much slower process.

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Organisational Study These simple facts point the way to Oracles continued role as the leading database vendor in the world. DB2 is slipping in the growth markets for database servers, and Microsoft has no solution for the Linux platform. Oracles continuing dominance over Microsoft is due to the combination of three factors Oracle continues to have significant market share on the Windows platform Oracle completely dominates the Linux platform Even if Oracle cannot maintain its 81% market share in the Linux market, the accelerating growth of this market as the target destination of Unix migrations will make Linux dominance more valuable than Windows dominance, giving Oracle an edge over Microsoft.

Oracle is the only major database vendor to see its revenue increase on both commodity hardware operating systems. By offering this popular choice, Oracle stands to benefit the most from the ongoing shift in the database market and maintain its dominant position. The following is the statement of the market standing and the revenue earned over the years by these top players in United States and also is shown the growth of these organizations over the years and the proposed growth in the comin years with a graph
INCOME 2005 2004 2003 2002

MS Oracle SAP CA IBM SIEBEL SYBASE


INCOME

$12,254,000 $2,886,000 $11,000

$8,168,000 $2,681,000 $1,788,075 $25,000 $8,430,000 $110,668 $67,950


GR IN 04 -18% 16% 32% -109% 11% -22%

$9,993,000 $2,307,000 $1,356,776 ($267,000) $7,583,000 ($5,191) $87,266


GR IN 05 50% 8% N/A -56% N/A N/A

$7,829,000 $2,224,000 $533,180 ($1,102,000) $3,579,000 ($35,704) ($94,669)


GR IN 06 20% 9% N/A -80% N/A N/A

GR IN 03 28% 4% 154% -76% 112% -192%

MS Oracle SAP CA IBM SYBASE

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200% 150% INCOME GROWTH 100% 50% 0% -50% -100% -150% -200% -250% YEARS MS Oracle SAP CA IBM SYBASE GR IN 03 GR IN 04 GR IN 05 GR IN 06

Analysis through Porters Forces Model:


The competitive forces in the industry can be better veiwed with the help of Porters fiveforce model for competitive strategy. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization.

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Intensity of Competition: For many of the firms in E-Business, the level of industry competition is very high, but in other areas of the economy there are often low intensity areas in which competitors are content to share along geographic or product niche lines. The data base industry is a good example of a very high intensity competitive environment. Oracle and IBM DB2 are fierce competitors with each holding about 30% of the overall market. Microsoft SQL is the fastest growing database in this market, but has about half the market share of the two largest competitors. Microsoft appears to be growing at the expense of the smaller suppliers, creating a classic three horse race. On the other hand the threat of new entrants into the database appears to be quite small. The competitors are well established with an intense competitive position and huge installed bases. The switching costs for someone who is already using en enterprise database are huge. Reprogramming, conversion, and training costs are nearly prohibitive. An organization has to develop a compelling reason to switch. Absent a game changing strategy, there appears to be little likelihood of new entrants gaining a foothold in this market. Bargaining Power of the Customers: However, if the enterprise is acquiring a data base for a new function that does not already have an entrenched system, the bargaining power of the customer is quite large. With two firms (IBM and Oracle) battling for market leadership and another (Microsoft) trying to eat into their leadership, corporations are in the drivers seat in negotiations for new database procurements. Firms often employ a

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Organisational Study diversification strategy to keep from being trapped by high switching costs. A firm may decide to put some of their database systems on one supplier and the rest on another. This usually leads to a little higher cost and complexity of operations, but it helps to keep the switching costs down for additional procurements. Bargaining Powers of the Suppliers The power of suppliers to the database industry also appears to be quite small. Database producers do not depend upon suppliers for any significant parts of their products.But again; suppliers can be vewied from two perspectives, firstly, intellectual supply and secondly outsourcing. It is estimated an overall 5% increse in the IT spending compared to 2004. A 3% rise will be seen in the enterprise segment, marked by stong rise in the SMB segment.Cheif Information Officers anticipate steady growth of hiring IT professionals.According to the Robert Half Technology Hiring Index a net 12% increase in hiring is anticipated, this will be the largest hiring since 2002.Therefore due to a steep rise in demand, the demand-supply equillibrium will shift its locus. Threat of New Entrants: With regard to database, applications and middleware, there is no immediate threat as there is a large entry to barrier in terms of the size of the existing players.The threat of new entrant is minimum at this point of time, until and unless there is a technological revolution. Threat of Substitute: These are not obvious at this time, but that situation is indeed subject to change. To a certain extent the rise of the World Wide Web represented a potential substitute for traditional databases. During the middle part of the 1990s, huge quantities of corporate data were put on line in web formats. Much of the early material was stored in static HTML files, but the trend is clearly back to databases. By putting the information in databases, companies can personalize the customers experience with the web site. There are now excellent tools for gathering the information from corporate databases, assembling it into personalized web pages and then delivering the targeted material to the users. This has opened up controlled access to huge legacy databases and put the database back at the center of the eBusiness universe. Babasabpatilfreepptmba.com 67

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Therefore it can be ideally seen that only one of the forces is applicable at this point of time. The other forces are not deterministic varibles while developing competitive strategies.Oracle Corporation is critically placed, by adopting market consolidation strategy thereby raising the entry barriers to new entrants and stifling the existing players.

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