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Oracle DB Machine with ExadataOracle DB Machine with ExadataBuilding the Value Case

May 2010

CONFIDENTIAL – ORACLE HIGHLY RESTRICTED 1

May 2010

Agenda

Aligning with Customer Business Valueg gExadata Pursuit Steps/ProcessSupport ToolsSupport ToolsOverview of Exadata Value Discovery GuideQuestions/Discussion


Purpose of Discussion

Goal: Improve the effectiveness of NATO’s Exadatapursuits by aligning our Exadata Solution Proposals with Customer Business ValueObjectives:Objectives:

• Define a standard process to guide the discovery of business value related to Exadata

• Create tools to support the processCreate tools to support the process• Provide a templates to document findings & outputs• Establish a consistent and repeatable approach across NATO• Capture best practices and experiencesCapture best practices and experiences


Problem Overview: Focus IT Infrastructure

SponsorshipStrategicStrategic

Executive

CIO

IT Cost Focused:• Lowering cost of servers/storage• Effort and cost of managing DB

Director of BI

Dir of

• Alignment/impact on technical architecture

• Price/performance vs. typical HW refresh cycle

Infrastructure

DC Operations

Scope

IT Operational Infrastructure

IT Service Levels & BI Delivery Cycles

Business Operations & Performance


Scope

Problem Overview: Focus IT Infrastructure

SponsorshipStrategicStrategic

Executive

CIO

IT Cost Focused:• Lowering cost of servers/storage• Effort and cost of managing DB

Director of BI

Dir of

• Alignment/impact on technical architecture

• Price/performance vs. typical HW refresh cycle

Infrastructure

DC Operations

Business Case:• Limited to IT Spend• Highly competitive

Scope





Scope

Problem Overview: Focus IT Service Level

SponsorshipStrategic

IT Value Focused:• Improved service levels to meet

business requirementsStrategic

Executive

CIO

q• Improved frequency of data loads,

refreshes• Lower cost to develop/deploy

solutionsDirector of BI

Dir of Infrastructure

DC Operations

Scope





Scope

Problem Overview: Focus IT Service Level


IT Value Focused:• Improved service levels to meet

business requirementsStrategic

Executive

CIO

q• Improved frequency of data loads,

refreshes• Lower cost to develop/deploy

solutionsDirector of BI

Dir of

Business Case:• Expanded to IT Value Creation• Increased organizational visibility

Infrastructure

DC Operations

• Requires some business sponsorship

Scope





Scope

Problem Overview: Focus Business PerformancePerformance


Business Value Focused:• Revenue growth enabled by

improved BIStrategic

Executive

CIO

p• Service and cost optimization • Speed to market to enable

competitive advantages

Director of BI

Dir of Infrastructure

DC Operations

Scope





Scope

Problem Overview: Focus Business PerformancePerformance


Business Value Focused:• Revenue growth enabled by

improved BIStrategic

Executive

CIO

p• Service and cost optimization • Speed to market to enable

competitive advantages

Director of BI

Dir of

Business Case:• Based on Business Value Creation• Top down organizational alignment

Infrastructure

DC Operations

• Tightly aligned with business vision and core priorities

Scope





Scope

Importance of SponsorshipSeek multiple levels of sponsorshipSeek multiple levels of sponsorship

Without understanding the overall business goals of the organization, Oracle quickly gets pulled down into an operational IT discussionBottom up cost understanding is good, and required, but it needs to be positioned in context of a business goalSponsorship is needed from Day 1, thus discussions need to be at a business goal levelSponsorship may exist at many levels – seek this outIT has limited insight into details of the business goals & the financial impactIT is rarely the buyer – but their influence is significant is closing the deal – without IT sponsorship & approval –there is no deal


Key Roles in Business CaseAcross the business and within ITAcross the business and within IT

V l D i

Business Executive CIO / CTO

Value Driven

Business Application Owner

IT Application Owners

Deputy CIO

Line of Business Manager

DBA’s

DBA ManagerBusiness Analyst

Network/ Storage Engineers

Network Manager Cost Driven


Building SponsorshipSeek alignment beyond ITSeek alignment beyond IT

• Tangible improvement of business• What is driving • Tangible improvement of business

performance & supporting strategic initiatives: revenue growth, market alignment, product adoption

Business Value

gCustomer interest in Exadata?

• How does it

• Improving IT’s delivery of value to the business: increased agility, improved responsiveness to needs, service levels

IT Value Creation

impact the business across levels?

service levels

• Lower the cost of IT services: lower IT Total C t f

• Who is sponsoring the initiative?

O l C fid i l D N

operational costs, lower costs for infrastructure

Cost of Ownership

• How can we expand sponsorship?


Oracle Confidential - Do Not Distribute

Exadata Pursuit Process

Qualify Customer TSM/Account Mgr

Primary Responsibility

Qualify Customer Interest

Create Value Hypothesis

TSM/Account Mgr.

XPD

Cust. Education & Sponsorship

Determine Value Drivers

P & D li

Risk Factors

IT Value Business Value

Industry Factors

XPD/SC

Prepare & Deliver ExCite

Create Proposal & Business Case

TSM/Account Mgr.


Exadata Pursuit Key Steps

Step Name Purpose Outcome Participants

1 QualifyCustomer

Basic vetting and validation of Exadata opportunity; updating XPD on opportunity; determine if Exadata is

Go / No Go on opportunity

TSM; SCMCustomer Interest

updating XPD on opportunity; determine if Exadata is potentially a valid solution alternative

opportunityAssignment of XPD

2 Create Value Hypothesis

Provides a focus for building the Oracle value proposition and conducting further discovery.

Defined Value Hypothesis

XPD, Account Team

3 CustomerEducation &

Based on defined hypothesis, who at the customer needs to be involved; what is their level of awareness what updates

List of sponsorsTargeted

XPD, SC, Account TeamEducation &

Sponsorshipbe involved; what is their level of awareness, what updates are needed

Targetedpresentations

Team

4 Value Discovery (IT and Business)

IT, Industry, Business, Risk/Security areas of impact are identified

List of specific value drivers and business challenges

XPD, SC

5 Prepare ExCite Define timing, agenda items, customer participants of ExCite

ExCite Agenda and Logistics

XPD

6 Deliver ExCite Build consensus with customer around prioritization and level of impact of key value propositionsIdentify and follow up education and valuation steps; other

ExCite Findings andRecommendations

XPD

next steps

7 Post ExCiteFollow up

Track and Follow up on ExCite Action Items Complete ActivitiesData Collected

XPD/TSM/Others

8 Proposal & Business Case

Assemble all items needed to create and present the Oracle Exadata Proposal with associated Business Case

Proposal TSM/XPD


Discovery Guide

Value Hypothesis

• Questions to raise• Items to research• Areas of focus


Value HypothesisProvides the foundation for a business case

Business Challenges Solution Delivery Challenges

IT Operational Challenges

Business Impacts Due •IT Service Level Challenge •IT Platform Issue and

Provides the foundation for a business case

Business Impacts Due Limitations on Data

Access or Detail

•IT Service Level Challenge and Related Business

Impact

•IT Platform Issue and Overall TCO Challenges

• Limited ability to perform sales transactional analysis

• Time and effort needed to scan tables and extract data impose

• Most recent data has privileged processing towards y

such as market basket and transaction attachments which inhibits the exploration of new revenue growth opportunities.

partificial limits on the amount and times of data is processed and requested.

• Due size of store level transaction volumes, extensive design and

p g p gdata adjustments. Data is not completely in synch.

• Dedicated information engineers are needed to manage and optimize

• Inability to combine store or product extended attributes for sales analysis limits ability to optimize sales across markets and product segments

data aggregation is needed to handle processing constraints.

• Ad Hoc query requests require weeks of development and involves testing efforts.

performance.• Cost to store and retrieve data

for multi-TB database has a linear growth rate as opposed scalability rate: complexity

segments.• Incomplete customer and

marketing analysis allows for vulnerability to competitive threats.

• Need for a solution that less/no complexity is added to the storage/retrieval growth

• Single DB, not replicated –potential points of failure


Discovery Guide

Business Value Drivers

• Key business impact area• Example questions• Discussion topics


Discovery Guide

Business Cost Savings Drivers



Discovery Guide

IT & Security Drivers

• IT infrastructure and management costs

• Development• Risk/Compliance & Security


• Risk/Compliance & Security

Discovery Guide

Industry Drivers



Tools to Support Process

Discovery Guide y- Support hypothesis creation- Business Value discovery- IT Value discovery- Risk discovery

T l tTemplates- Documentation of outputs- Deliverables- Deliverables- Examples

Spreadsheets


p

Next Steps

Adopt standard discovery process of new yopportunitiesProvide feedback / updated processBVS S t if tiBVS Support if questions


Appendix: Exadata Value Discovery

Guide


Exadata Pursuit Process Flow

Qualify CustomerQualify Customer Interest

Create Value Hypothesis

Cust. Education & Sponsorship

Determine Value Drivers

P & D li

Risk Factors

IT Value Business Value

Industry Factors

Prepare & Deliver ExCite

Create Proposal & Business Case


Exadata Pursuit Key Steps

Step Name Purpose Outcome Participants

1 QualifyCustomer

Basic vetting and validation of Exadata opportunity; updating XPD on opportunity; determine if Exadata is

Go / No Go on opportunity

TSM; SCMCustomer Interest

updating XPD on opportunity; determine if Exadata is potentially a valid solution alternative

opportunityAssignment of XPD

2 Create Value Hypothesis

Provides a focus for building the Oracle value proposition and conducting further discovery.

Defined Value Hypothesis

XPD, Account Team

3 CustomerEducation &

Based on defined hypothesis, who at the customer needs to be involved; what is their level of awareness what updates

List of sponsorsTargeted

XPD, SC, Account TeamEducation &

Sponsorshipbe involved; what is their level of awareness, what updates are needed

Targetedpresentations

Team

4 Value Discovery (IT and Business)

IT, Industry, Business, Risk/Security areas of impact are identified

List of specific value drivers and business challenges

XPD, SC

5 Prepare ExCite Define timing, agenda items, customer participants of ExCite

ExCite Agenda and Logistics

XPD

6 Deliver ExCite Build consensus with customer around prioritization and level of impact of key value propositionsIdentify and follow up education and valuation steps; other

ExCite Findings andRecommendations

XPD

next steps

7 Post ExCiteFollow up

Track and Follow up on ExCite Action Items Complete ActivitiesData Collected

XPD/TSM/Others

8 Proposal & Business Case

Assemble all items needed to create and present the Oracle Exadata Proposal with associated Business Case

Proposal TSM/XPD


Discovering Business Value:Value:

Create Value Hypothesisyp


What is Driving the IT platform issuesWhat is Driving the Customer’s Interest in Exadata?

- Technical refresh- Current cost of operations- Lack of HA Determining the motivation driving

interest is critical in assessing what level

IT impact due to inability to meet service level demands- Development cycle time

gof education and positioning is required.• Has the customer defined the

interrelated aspects of IT and business issues?

• Are there clear measures on current

- Cost/time to benefitBusiness impact due to growth in volume and details related to

e t e e c ea easu es o cu e tIT service levels? How are they determined and evaluated?

• Where is sponsorship coming from?• How did the customer become aware

of Exadata?business operations- Data Mart sprawl- Information quality/redundancy

of Exadata? • What levels of the organization have

been made aware of the power of Exadata?

• Is there a stated business challenged that Exadata is addressing?

All of the above?that Exadata is addressing?


Identify a Value Hypothesis Review Industry FactorsIdentify a Value Hypothesis that Aligns with the Customer Vision

- Leader or laggard- Industry use of technology

Gather and Review Customer A value hypothesis is critical in providing focus and depth in our

Background- Analysts reports- External guidance and directions

providing focus and depth in our discovery effort• Have we aligned our view of the

Customer needs?• How can Oracle impact current

customer performance

Assemble Account Team Knowledge- Strategy Map- Install base footprint

customer performance• Is the Customer of the Customer’s

industry a leader in new technology? Are analytics critical to industry leadership

• How does “business as usual” fail to pDetermine Oracle “Maturity” Level- Effectiveness - Knowledge level

How does business as usual fail to meet future needs?

• Is the customer an early adopter of Oracle solutions? Are they already using some of the element s the DB Machine, such as RAC, Partitoning, Knowledge level

- Infrastructure standards, , g,

etc?



Revenue Impact Factorsp


Improve Product Identify Market Changes and TrendsImprove Product Development, Innovation & Introduction

- Identify industry trends- Compare industry trends to company

strategic directionEvaluate Adoption- Measure acceptance and growth- Identify impact to product mix

Identify how capturing additional data & timely processing positively impacts products and service development• How quickly can product trending be

identified? Faster than competitors?

Demand Analysis- Capture increased and new industry and

demand information

• How long does it take to identify the acceptance of a new product with a high degree of confidence?

• What % of complex analytics are predictive? Are they offloaded to

h i ? - Identify product gaps• Quality Analysis

- Measure product quality

another environment?• How quickly can you adjustment to a

new product launch?• How quickly can you gauge the

impact of a new product to the

- Granular quality analysisexisting product line? Identify new opportunities?

• How accurately can you measure the quality of a new or updated product?


Improve Marketing and Campaign EffectivenessImprove Marketing and Marketing Analysis - Monitor campaign metrics

- Identify adjustments to campaignsCross Market AnalysisIncrease the scope and effectiveness of

marketing direction and marketing y- Gather additional metrics and increase

scope- Quicker turnaround of analysis

marketing direction and marketing campaigns• Do you have the right data and

metrics to perform analysis? What is the quality of the data? Is current analysis effective? timely?

Targeted Marketing- Identify specific targets (and non targets)- Measure actual sales vs. targets

y y• Is data distributed throughout the

organization? How many core systems need to be accessed?

• How quickly can campaigns and campaign targets be evaluated and g

- Gauge effectivenessp g g

adjustments made?• Is data not being from a “single

source of truth” an issue?• Can the marketing strategy be

compared to the overall business pstrategy?

• What are optimal retention requirements?


I S lOpportunity Analysis

Increase Sales - Identify new sales opportunitiesProduct Level Analysis- Analyze product profitability

Determine the effectiveness of current sales analysis in improving sales• Is sales information both at the

Trending & Growth- Identify geographical and product trends

Cross/Up sell Analysis

summary and detail level? What is the quality of the data?

• What is the frequency, granularity of reporting? Is it timely?

• Is current sales data fragmented and p y- Identify cross/up sell scenarios and

opportunitiesAffinity analysis/mkt basket analysis

Is current sales data fragmented and maintained in different core systems?

• Is data not being from a “single source of truth” an issue?

• How quickly can sales opportunities be identified and addressed? y y y

Channel metrics and alignmentMarket Change and Dynamics

be identified and addressed?• Is there adequate sales history for

effective analysis? Is the history detailed enough?

• Are data volumes projected to grow? Due to new products? Due to aDue to new products? Due to a merger or acquisition?

• Are the most important queries repeatable and candidates for automation?


Analyze and Leverage Identify Customer BehaviorAnalyze and Leverage Customer Loyalty - Identify profitable customers

- Identify profitable profilesGather Customer Feedback- Gather additional customer feedback- Gather additional customer demographics

Analyze and Apply Customer

Identify data, analysis, and approaches to leverage customer info for quality feedback, cross/up sell and sales trending• Is customer loyalty information

gathered today? What additional i f ti ld b th d? a y e a d pp y Custo e

Feedback- Analyze based on demographics- Provide customer data and analysis to

information could be gathered?• How fragmented and disjoint is

customer information? • What would be the impact of

consolidated customer and customer l l i f i ?

yother business segments

loyalty information?• How would customer loyalty analysis

increase sales?• Could consolidated customer loyalty

information decrease sales and marketing and thus decrease overall cost of sales?

• Is third party information combined with company gathered customer info?


IIdentify areas of growth

Increase Capacity/Throughput and Performance

Identify areas where increased processing efficiency would increase profitabilityIdentify areas of processing bottlenecks- Address latent demand

Determine the revenue and profitability impact due to increasing throughput and performance• Are there any mergers or acquisitions

planned? Would a processingReview recent and future mergers or acquisitions- Allow for growth of combined entities

planned? Would a processing capacity be reached?

• Would on-line processing be more profitable if it was faster? More transactions per minute? Faster on-line adjustments? Faster in-store

- Review combined processing requirements

line adjustments? Faster in store adjustments? More timely trading?

• Are company projections forecasting areas of growth? How will processing effect this area?

• Will reporting requirements be• Will reporting requirements be greater? Will they be more diverse?

• Are there lost sales due to poor performance or response?



Cost Impact Factorsp


Improve Management of Identification and Remediation of Improve Management of Business and Production Operations

Quality Issues- Monitor production operations- Detection of output changesDetermine the impact of more detailed

and timely information on businessOptimize Production Throughput- Improved planning models- More timely adjustment to changes

and timely information on business operations• How is production quality monitored

and reported today?• What is the frequency, granularity of

reporting?

Monitor Business Operations- Distribution- Inventory

reporting?• What information is available to

support analysis? What is the cost of analysis?

• What information is available to analyze production operations today? y

- Productionanalyze production operations today? Are there gaps in visibility?

• How quickly do you react to changes due to demand, market influences, etc?

• How is information supplied toHow is information supplied to management to monitor business operations? What is level of frequency or granularity?


Improve Management of Financial ReportingImprove Management of Internal and External Services Costs

- Consolidated / consistent view of financial results

- Impact on business decisionsDetermine the impact of more detailed and timely information on business

Human Resource Reporting- Enterprise visibility- Integration with budgeting and business

and timely information on business services, delivered to internal and external customers (excluding IT services)• How long does it take to get access to

needed financial information to meet planning

Customer Support - Cost of delivery

a new business requirement?• As needs changes, can users easily

access reporting data?• What level of adoption and

satisfaction is achieved in the end - Service levels- Knowledge management and reuse

users community?• Is there are single, integrated source

of Financial information? HR Information?

• How are customer service metrics capture, reported, acted upon?

• How is process change, identified, monitored and deployed?


I f ti T h lCost of IT Infrastructure

Information Technology Operations

- Servers- Storage

Environmental CostsDetermine the IT service level and cost impacts:• What is the cost to refresh & maintain

- Data Center Space- Power & Cooling

Data Base Management

What is the cost to refresh & maintain your DB environments over three year period? Server & storage growth rates?

• What is your typical refresh cycle?• What are your current data center ata ase a age e t

- Storage Management- Performance Management

Development

• What are your current data center costs for space? Power and cooling? Is your Data Center at or near capacity?

• What is the time and effort needed to manage data and data storage in your Development

- Analysis & Design- Cycle time for delivery

manage data and data storage in your DW? Time required to address performance issues?

• How much of your analysis and design time is needed to address performance constraints?p

• How does this impact project delivery schedules and cost?

• Are SLA’s being met?


I B iSupport of Merger/Acquisition

Increase Business Flexibility and Agility

Activities- More rapid consolidations- Lower transition costs

Determine if information management issues constrain agility or growth• How difficult is it to integration data

- Standard infrastructureAdapt to Market Expansions- Rapid response to changes

How difficult is it to integration data and systems from an acquisition? How costly? Are duplicate infrastructures maintained?

• Is IT aligned with business vision and market priorities? How is this

- Low cost growth incrementsIntegration of Business Operations- Consolidation of operations

a et p o t es o s t sdetermined and validated?

• As the business changes or grows, are IT capabilities an asset/advantage or an impediment the change?

• Does your IT infrastructure promote p- Common data, common process

enablement

Does your IT infrastructure promote or impede business integration?

• What challenges are you facing in driving common view of information or common business processes?



Risk & Security Factorsy


S it d Ri kIntegrity of Information

Security and Risk Management

- Single source of truth- Redundant reporting

Consistent and Complete SecurityDetermine the potential security and risk considerations of current information management approach p y

- Control access at source- Simplified management model

SOX Compliance

g pp• Do departments maintain redundant

or independent reporting systems?• How does this impact company

reporting and data quality?• What are the hidden costs? Known SO Co p a ce

- Improved visibility- Consistency- Adherence to policies

• What are the hidden costs? Known costs?

• How are data silos managed from a access control and security perspective?

• What level of company or private Adherence to policies• What level of company or private information is distributed?

• What is the cost managing security and access today? Is it measured fully? How effective is it?

• Are there outstanding SOX or Audit• Are there outstanding SOX or Audit findings related to data access and security?


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