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State of Technology. Oracle. ISM 611 Dr. Hamid Nemati 11/8/1999. Francis Andoh-Baidoo David S. Clark Daniel B. Madeja Phillip Planes Kevin Thompson. Oracle Corporation Overview. Founded in 1977 $9.1 billion in revenue for Q1 2000 Second largest application software company

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State of Technology

Oracle

ISM 611

Dr. Hamid Nemati

11/8/1999

Francis Andoh-Baidoo

David S. Clark

Daniel B. Madeja

Phillip Planes

Kevin Thompson


Oracle Corporation Overview

  • Founded in 1977

  • $9.1 billion in revenue for Q1 2000

  • Second largest application software company

  • Largest database software company

  • Operations in 145+ countries

  • Over 43,000 employees


Q1 Fiscal 2000

Revenue$2.0 B 13%

Net Income$237M 21%

EPS$0.16 vs. $0.13

Pretax Margin22.6% vs. 20.5%


Oracle Corporation

Q1 FY00 Revenue Highlights

Total

Revenue Up 13%

Geographic Revenue Growth

Americas Up 12% (LC 14%)

License and Other Revenue Up 9%

Europe / Middle East / Africa Up 9% (LC 13%)

  • Service Revenue Up 16%

Asia Pacific up 34% (LC 18%)


Revenue Distribution

Q1 Fiscal Year 2000

Product Revenues

68%

Consulting

and

Education

32%

Total Revenue $9.1 Billion


Geographic Distribution

Q1 Fiscal Year 2000

Asia Pacific

10%

EMEA

33%

Americas

59%


Oracle’s Two Businesses

  • Q1 FY00

  • Y-Y

Database

$6.6 B

19%

Applications

$2.5 B

25%

20 %

Total

$9.1 B


Oracle Leads 5:1 in UNIX ...

1998 RDBMS Market Share on Unix

Source: Dataquest, March 1999


Database Growth Opportunities

  • E-business

  • Data Warehousing

  • Packaged Applications

  • Release of 8i

  • Middle Market


Nearly 2/3 of Fortune 100 Rely on Oracle for E-Commerce

Others

36%

Oracle

64%

  • Source: Collaborative Research 1999


Data Warehouse

1997 WW Data Warehouse Data Management Revenue by Vendor

Source: IDC, 1998


Oracle #1 in e-business

  • 100% pure internet ERP applications

  • 100% pure internet CRM applications

  • 100% pure internet database

  • 100% pure internet development tools

The only company with:


“If the Internet turns out not to be the future of computing, we’re toast. But if it is, we’re golden.”

Lawrence J. Ellison, Chairman and CEO of Oracle


Oracle & e-Business

  • New Model for Business

  • Based on the Internet

  • Not just e-Commerce

  • Components of e-Business:

    • Internet Platform

    • Enterprise-class Business Applications

    • Services to Implement, Support and Manage


Oracle’s Internet Platform

  • Centered on Oracle 8i

  • Built-in Java Virtual Machine

  • Oracle Internet File System

  • Oracle interMedia

  • Development Tools

    • Jdeveloper

    • WebDB

  • Oracle Application Server

  • Oracle 8i Lite


Oracle Applications

  • Customer Relationship Management

  • ERP

  • Procurement

  • Self-Service Applications

  • Financial Applications

  • Human Resources

  • Strategic Enterprise Management Applications


Application Service Providers

  • Software is becoming a service

  • ISP’s + ISV’s = ASP

  • Oracle’s Business Online (world’s largest)

  • Benefits of ASP’s

    • No local infrastructure / resources required

    • Predictable Costs

    • Service Expertise

    • Automatic Upgrades

    • Data Back-Up


Oracle’s Service Organizations

  • Oracle Consulting

  • Oracle Education

  • Oracle Support Services


Oracle Consulting

  • Leverages Oracle’s knowledge to develop individual business solutions

  • Wide range of business solutions:

    • expand markets by identifying new customers, creating new offerings, and extending the supply chain

    • improve efficiencies by automating the value delivery chain, lowering channel costs, and improving productivity

    • identify and retain profitable customers, build brand loyalty, and enhance customer service

    • design and implement a comprehensive data warehousing solution


Oracle Education

  • World’s second-largest IT training provider, with offices in more than 60 countries

  • Offered training services:

    • instructor-led training

    • interactive distance learning

    • network-based training

    • computer-based CD-ROM courses

    • in-depth seminars

    • customized classes

    • training needs assessment

  • Certification programs

  • Organizational Change Management


Oracle Support Services (OSS)

  • Industry’s leading provider of support for information management systems

  • More than 3,000 professionals support over 120,000 customers

  • Support around-the-clock, seven days a week, worldwide, and for any given product

  • Customers can choose between web-based support, phone support, on-site support, and large systems support

  • Different comprehensive support options are available to meet individual requirements


Oracle’s MetaLink 2.0

  • A “change in Oracle’s support paradigm”

  • MetaLink 2.0 is an Internet Support Tool

  • Internet as a medium to deliver quality, personalized and timely customer service

  • Provides end-users with personalized, flexible self-service options

  • Allows end-users to log and update technical assistance requests (TARs) online, receive product updates and information tailored to their individual needs, and download solutions


Oracle’s MetaLink 2.0 (cont.)

  • Empowers customers to prevent, analyze and solve problems with the same information sources used inside Oracle

  • More than 180,000 customers use MetaLink

  • Site is managed by more than 200 Oracle engineers that provide timely posting and updating of technical data


Darwin

Source: Oracle, Darwin-Overview-WHT97.ppt

Oracle Warehouse

Comprehensive Set of Products

Oracle Business Intelligence

Reports

Operational

Data

Oracle 8i

Discoverer

Warehouse

Builder

Application

Server

ERPData

Express

Oracle8i

External

Data

CWM and Repository

Designer and Enterprise Manager


Oracle8i

  • Internet Enabled

  • Scalable (with data and users)

  • Fast querying capability

  • Partitioning and “rolling windows”


Warehouse Builder 2.0

  • Fast implementation

  • Design, generation and loading

  • Written completely in Java

  • Graphical and wizard driven

  • Tightly integrated with Oracle8i


Common Warehouse Metadata

  • Enables interoperability among vendor tools

  • Internet ready:

    • Uses Java programming language

    • XML for import/export

    • UML as modeling language

  • Application Program Interface


Data Mart Suite 2.0

  • Data Mart Designer 2.1

  • Data Mart Builder 2.0

  • Oracle8 - Enterprise Edition

  • Enterprise Manager 1.5

  • Oracle Discoverer 3.1

  • Webb App Server

  • Reports and Reports Server 3.0


OLAP Tool:

Oracle Express Server


Distributed over Web


Integrates with DBMS


Big picture and detail


Maintains high levels of data integrity


Integration with popular tools


Scalability


Backed with Oracle’s experience


Analytical functions


Darwin

Oracle Business Intelligence

Source: Oracle, Darwin-Overview-WHT97.ppt


Enterprise Manager


Surface

SQL (Structured Query Language) for simple queries and reporting

Statistical & OLAPfor summaries, analysis, & forecasting

Shallow

Data Mining for classification, clustering, and predictions

Hidden

Bottom-Up

Methodology

Business Intelligence Levels

Analytical Tools Used

Top-Down

Methodology

Corporate Data

Source: Oracle, Darwin-Overview-WHT97.ppt


Data Mining

Source: Oracle - Darwin Multimedia Presentation - www.oracle.com


Oracle Darwin

June 1999 - To improve data

mining capability, Oracle

purchases Darwin from

Thinking Machines Corporation


Enterprise-wide Data Mining Software - Darwin

Power and Ease of Use

  • Intuitive GUI

  • “Wizards” to guide and automate

  • Powerful, scalable, parallel UNIX server

  • MS Excel integration

  • Client: Windows

  • Servers:

    • Sun Solaris

    • HP-UX

    • Windows NT (Release 4.0)

Source: Oracle, Darwin-Overview-WHT97.ppt


Data Management

  • Access data

    • Data warehouses

    • Relational databases (ODBC)

    • Support for SQL queries

    • SAS files

    • Flat files

  • Prepare data

    • sampling

    • randomization

    • computed fields

    • append, merge, select, project, explode data

    • replace and set form

Source: Oracle, Darwin-Overview-WHT97.ppt


Induction Tree

Tree

+

-

+

-

+

+

+

?

-

-

-

+

+

-

+

-

-

Neural Nets

Net

+

-

+

-

+

+

+

?

-

-

-

+

+

-

+

-

k-Nearest Neighbors

Match

-

+

-

+

-

+

+

+

?

-

-

-

+

+

-

+

-

-

Clustering

Cluster

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

?

Model Building

  • Classification & Regression Trees (C&RT)

    • Classification and prediction of binary, multiclass, and continuous variables

    • Decrease functions: gini and entropy

    • Prune functions: cost and gini

  • Neural Networks

    • Classification and prediction of binary, multiclass, and continuous variables

    • Activation functions: sigmoid, hypertangent, and linear

    • Training algorithms: conjugate gradient, modified Newton, steepest descent, backpropagation, and genetic algorithm for optimizing neural networks

  • k-Nearest Neighbors(Memory-Based Reasoning)

    • Trainable k-Nearest Neighbors approach

    • Classification and prediction of binary, multiclass, and continuous variables

    • User-definable weights for input fields

  • Clustering

    • k-means

    • Interactive graphics

Source: Oracle, Darwin-Overview-WHT97.ppt


High

Model Accuracy

8

Linear Scalability

7

6

Low

Performance Speed-Up

5

Large

Small

Tree

Data Size

4

Net

Match

3

(train)

2

1

1

2

3

4

5

6

7

8

9

Number of CPUs running in parallel

Enterprise-wide Data Mining Software

Source: Oracle, Darwin-Overview-WHT97.ppt

Scalable, Parallel Performance and Model Accuracy


Cumulative Targets vs. Percent of Population

Cumulative Targets

New Features in Darwin Release 3.5

  • Data import wizard

    • Databases

    • Text

  • Missing value treatment wizard

  • Model Seeker

  • Computed fields

  • Tree display

  • Key fields wizard

  • Multi-model comparison

  • Lift charts for Tree

  • Editable workflow

  • More...

Source: Oracle, Darwin-Overview-WHT97.ppt


Interactive means of querying workflow objects

Ability to edit workflow

Darwin Release 3.5 New FeaturesEditable Workflow

Source: Oracle, 35New-40preview97.ppt


New Features in Darwin Release 3.6

  • Clustering wizard

    • k-means

  • ODBC write-back to the database

Source: Oracle, Darwin-Overview-WHT97.ppt


Cumulative Targets vs. Percent of Population

Cumulative Targets

New Features in Darwin Release 4.0

  • Windows NT & UNIX servers

  • Native database access

  • Faster algorithms

  • Better parallelism

  • Enhanced clustering

Source: Oracle, Darwin-Overview-WHT97.ppt


Benefits Summary

  • Understand customer behavior

    • Who is likely to churn?

    • What are the profiles of my customers?

    • What is my expected profitability?

    • Where are my best retention and cross-sell opportunities?

  • Mine more data, faster

  • Build better models

  • Generate business intelligence

  • Improve customer relationship management

Source: Oracle, Darwin-Overview-WHT97.ppt


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