<Insert Picture Here> Jill Hughes Oracle Business Intelligence Demystifying “Oracle BI” Some Terms OBI EE: Oracle Business Intelligence Enterprise Edition • This is the “strategic” BI Platform for Oracle that was inherited from the Siebel acquisition. OBI SE: Oracle Business Intelligence Standard Edition • This is the new packaging of Oracle Discoverer & other legacy Oracle BI technologies. Pre-Packaged Oracle BI Applications • BI application solutions for EBS, PSFT, JDE, SEBL, and SAP, that generally include pre-built ETL, DW, Metrics, Reports & Dashboards. • These solutions are: • DBI: Daily Business Intelligence • EPM: Enterprise Performance Management BI Applications - Packaged, subject-specific warehouses and data marts • OBI Applications: Business Intelligence Applications (from Siebel) Oracle Business Intelligence Applications Pre-Siebel Acquisition – Oracle Offerings DBI UI (Business Objects, Cognos, etc) HCM Warehouse SCM Warehouse EBS Financial Warehouse HCM DBI… DBI Apps Data Sources 3rd-Party Financials DBI BI Platform Supply Chain DBI User Interface (Performance Management Viewer) EPM BI Apps JDE Other PSFT Oracle DBI PeopleSoft EPM Oracle Business Intelligence Applications Pre-Siebel Acquisition – Siebel Offerings SBA UI User Interface (Dashboards, Answers, Alerts) Financial Analytics Supply Chain Analytics Workforce Analytics… BI Platform SBA Apps Data Sources JDE Other EBS SAP PSFT SEBL Siebel Business Analytics Oracle Business Intelligence Applications Oracle Offerings Today DBI UI User Interface (Dashboards, Answers, Alerts) Financial Analytics EPM BI Apps Supply Chain Analytics Oracle Business Intelligence Enterprise Edition (OBI EE) Workforce Analytics… Siebel SBA Renamed to: HCM Warehouse Financial Warehouse SCM Warehouse… DBI Apps Data Sources (Business Objects, Cognos, etc) Financials DBI Supply Chain DBI HCM DBI… BI Platform OBI EE 3rd-Party UI (Performance Management Viewer) SBA Apps JDE EBS JDE Other PSFT Oracle DBI PeopleSoft EPM Other EBS SAP PSFT SEBL Siebel Business Analytics Oracle Business Intelligence Applications ‘Better Together’ Offerings – By End FY2007 Financial Analytics EPM BI Apps Supply Chain Analytics Workforce Analytics… CY2006 Delivery OBI EE (Dashboards, Answers, Alerts) HCM Warehouse “OBI EE” as the new UI Financial Warehouse Supply Chain DBI DBI Apps SCM Warehouse … BI Platform Financials DBI (Dashboards, Viewer) Answers, Alerts) HCM DBI… User Interface Data Sources 3rd-Party (Business OBI EE (Dashboards, Objects, Answers, Alerts) Cognos, etc) DBI UI (Performance OBI EE Management SBA Apps JDE EBS JDE Other PSFT Oracle DBI PeopleSoft EPM Other EBS SAP PSFT SEBL Siebel Business Analytics OBI Myths Myth: Oracle’s BI Technology Strategy is still being debated • Truth: OBI EE technology is the centerpiece of Oracle’s BI Strategy. Myth: Oracle’s EPM/DBI strategy is going away • Truth: OBI EE is the Business Intelligence platform on which the pre-built Siebel BI Applications are built, and OBI EE is also the new Business Intelligence platform for EPM & DBI. This gives us the ability to offer our customers the “BI application” solution that best meets their needs. Myth: The Siebel BI Applications are for Siebel CRM only • Truth: These applications are ready to go today for Oracle EBS, PeopleSoft, and SAP, with JDE coming this fiscal year. Myth: Oracle is going to buy Business Objects (or some other BI vendor…) • Truth: Who knows? A BOBJ (or other) purchase will always be on the radar. But such a purchase has nothing to do with product strategy – OBI EE is the strategic technology choice. Myth: TSMs sell OBI EE; ASMs sell OBI Applications; BI sells both • • Truth: We sell what best fits the customer’s needs. Pre-built BI Apps are a major differentiator, whether it’s EPM, DBI, or SBA. Application deals are 3-4x larger than pure Technology deals. Message to TSM’s: Would you rather get 100% of a 200K deal, or 50% of a 800K deal (our average sales prices over the past 5 years). The Market Situation Let’s start with a simple proposition Everyone in your company can do their jobs better if they made decisions and took actions based on actual information rather than “best guess” or “how we did it last year” Sounds simple, but…. BI Challenges Today …not easy to achieve! • • • • • Fragmented In-consistent Report-centric Restricted Non-Intuitive Hasn’t the promise of BI been there for the past decade? The Business Intelligence Marketplace $12B Market Size $10B $8B $6B $9.6B $8.8B $8.1B $7.5B $5.6B $5.1B $4.6B $4.1B $10.3B $11.1B $6.2B BI Applications $3.7B $4B $2B BI Tools $3.8B $4.0B $4.7B $4.5B $4.2B Source: IDC, 2004 0 2003 100 80 60 2004 2005E 98 Million Estimated User Potential 59 Million BI Tools CRM 20 2007E 80% 2008E Current % User Penetration 70% 60% 40% BI Apps ERP 0 2006E 50% SCM 40 $4.9B 30% 66% 51% 20% 33% 10% 2010 Seat Estimates Sources: Goldman Sachs Estimates & Department of Labor 0 ERP SCM CRM 30% BI Tools 10% BI Apps Insight-Driven Business Processes “Business intelligence (BI) is moving into the context of the business process, not just to make users’ information experience more effective, but also to allow for business process optimization.” Software Macro-Trends: Reshaping Enterprise Software - Sep 2005 Oracle History in the Market 80-85% of COGN, BOBJ & HYSL’s revenue come from selling their “Tools” on top of an Oracle DW. SAP sells SAP/BW with every deal – it looks and feels like a clean, integrated story (even if it’s not true). At Oracle, in Commercial for FY06: • ~18M in total revenue for CPM/EPM • Avg deal size ~$64K • 3rd Largest EPM Deal in Q4: 700K for EPM/Scorecard • And yet $1.4M went to BOBJ for the BI piece Oracle dominates in the DW market share, but is largely not visible in the BI tools market…not yet at least. Siebel Business Analytics History In November 2001, Siebel bought nQuire Software – 55 employees, not much revenue, revolutionary BI Platform that is now OBI EE. In FY2005, 27% of Siebel’s Revenue came from Siebel Business Analytics – both technology & applications. There are now over 800 SBA (OBI EE) customers • 20% ONLY use the BI Technology (OBI EE ONLY) • 5% ONLY use restricted “application-only” version of OBI EE • 75% use BOTH the pre-packaged BI applications and the BI Technology for custom-built BI applications on existing data warehouses & other sources Siebel Business Analytics History Market Leader in Analytic Applications for Sales, Service, and Marketing Fastest Growing in BI Market 110 Rank 1 2 3 Vendor % Share 15.4% Siebel Systems SAS Institute 12.7% NetIQ 6.0% 100 90 80 70 4 Epiphany 5.8% 60 5 SAP AG 4.1% 50 6 SPSS 3.6% 40 7 Fair Isaac 3.5% 8 Business Objects 3.1% 9 Coremetrics 2.1% 10 NCR Teradata 1.9% Sources: IDC Vendor Rankings, Worldwide Customer Analytics Applications (2003), July 2004 30 20 10 0 2003 2004 Siebel BI License Rev (U.S. $ Millions) 2005 Revenue $120.3M Oracle & Siebel in the BI “Tools” Marketplace GARTNER COMMENTS ON THE SBA BI Platform “Unlike other mega software vendors, Siebel's BI platform is application source independent and is, arguably, the best front end to a Teradata data warehouse.” “Siebel Business Analytics is one of the more innovative and comprehensive sets of functionality BI Platform acquired from among the BI platform vendors, nQuire Software in Nov 2001 including some advanced analysis and data-mining functionality and packaged industry-specific analytical applications.” Siebel Business Analytics History Aerospace & Defense 5 of the top 6 Commercial Banks 4 of the top 5 Pharmaceutical 8 of the top 9 Computer Office Equip 6 of the top 9 Diversified Financials 3 of the top 4 Railroad 3 of the top 4 Medical Products & Equip 3 of the top 6 Telecommunications 5 of the top 6 Securities 3 of the top 6 Network & Comms Equip 2 of the top 4 Life & Health Insurance 3 of the top 5 So, the Opportunity for Us Get in front of Cognos, Business Objects & Hyperion opportunities Become #1 in the Business Intelligence marketplace in the next 18 months. Expose SAP’s “black box” BI Applications story The way we do it is by selling packaged BI Applications, built on the new Oracle BI Platform (SBA), for PeopleSoft, EBS, Siebel, & JDE customers. Oracle BI Solutions Procurement Operations Finance Marketing HR / Workforce Customers Sales Customers Service Customers Distribution BI Applications are Almost Always Heterogeneous In a Call Center, how does agent tenure, training, & compensation affect productivity & cross-selling? What impact does supplier performance have on customer satisfaction and revenue consistency? How do my campaigns impact call-handle time & cost to serve? Suppliers Suppliers Suppliers Oracle BI Tools & Packaged BI Applications Front Line Employees Partners Sales Analytics Interactive Dashboards Service Analytics Marketing Analytics Proactive Detection & Alerts Ad-Hoc Analytics Managers Supply Chain Analytics Intelligent Customer Interaction Senior Executives Finance Analytics Workforce Analytics Mobile Analytics Predictive Analytics PreBuilt Enterprise Business Model Oracle Enterprise Business Intelligence Platform Enterprise Data Warehouse (EPM and/or SBA) ETL & Business Adapters Sales & Mktg Fin/HR Service Operational Systems SCM IVR Web Help Desk Customer Interaction Systems Existing Data Warehouse & Data Mart Sources Oracle Business Intelligence Applications • Comprehensive suite of prebuilt analytic applications • For Siebel, SAP, PeopleSoft, Oracle, and other sources • Based on industry and analytic best practices • Enable rapid deployment, low TCO, & assured business value Oracle Enterprise Business Intelligence Platform (EE) • Next-generation, scalable enterprise BI platform • Relevant and actionable insight for all users • Complete, real-time intelligence across enterprise sources • One common, fully-integrated modern web architecture Benefit from BI Applications while maintaining single BI architecture Build from Scratch with Traditional BI Tools BI Applications Training & Roll-out Define Metrics & Dashboards Faster deployment Lower TCO Assured business value DW Design Back-end ETL and Mapping Training & Rollout Specific Metrics & Dashboards DW Design Mod Pre-built ETL Tailoring Quarters or Years Weeks or months Role-based dashboards and alerts Thousands of pre-defined metrics Prebuilt DW design Adaptable to your enterprise DW Prebuilt ETL Business Adapters for Oracle, SAP, others Leverage Prebuilt Oracle BI Applications Proven Rapid Time To Value Deployed to 800 users in under 90 days Finance, Service & Sales Analytics (SAP/SEBL) Live in 120 days Sales Analytics (SEBL) Deployed to 100+ users in 3 months Finance Analytics (Oracle EBS) 4 months from decision to live for 1200 users Pharma Analytics (SEBL) “ Live in 100 days, 9000+ users Finance, Sales, Help Desk and Marketing Analytics (MSFT, SEBL) Having had experience of Siebel Business Analytics, I can vouch that it can be deployed as rapidly as they claim...It is a product that really delivers. Dedicated Sales Force for NA Adam Driver SC Director N. America BI Susan Cook GVP Sales N. America BI David Novak Sales VP Commercial ERP/CRM/Tech Duane Cologne Sales VP NASA & PS ERP/CRM/Tech Channels Oracle Direct Sales Strategy 47 BI Sales Reps, 3 Channels, 15 OD, 2 Strategy/Comp Intell John Duda SC Manager Commercial BI Scott Hilner SC Manager NASA & PS 44 BI Sales Consultants ROI Enablement Where’s the Gold: Scenario 1 Oracle Apps, Custom DW, Incumbent BI Characteristics Oracle Apps Customer Custom Data Warehouse Some other BI tool on top Likely Issues Solution • Poor user adoption of operational applications • Integrated OBI apps drive adoption of EBS because and incumbent BI tools (which are separate UI’s) the users get informational value from using EBS • Not getting answers to key business questions; • OBI Apps likely deliver these answers and make it not exploiting the information in EBS much easier to answer new questions • Looking to upgrade the 3rd party BI tool = $$$ • It will likely cost the same or less to move to a more license costs and it’s a re-deployment complete total solution with the OBI Apps • Looking to upgrade EBS, may need to make • This is painful. OBI Apps are clearly the lowest TCO large investments in the BI/DW upgrade option. Easy upgrades are just part of the equation. • Don’t forget about the power of the tech stack • If it’s an Oracle tech stack, your value prop just integration when Oracle is the DW. about doubled. Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential Where’s the Gold: Scenario 2 Oracle Apps, No DW Characteristics Oracle Apps Customer NO Data Warehouse Operational Reporting Tools Only Likely Issues Solution • Do not have a true BI platform; operational • OBI Apps require OBI EE, arguably the most reporting tools only allow for stop-gap, static reporting with little to no flexibility. advanced BI platform on the market. • May have independent data marts that don’t • OBI EE can “glue together” these independent data allow cross-functional questions to be answered. marts, leveraging these investments and allowing the toughest questions to get answered. • Want a real Enterprise Data Warehouse but can’t • OBI Apps include Enterprise Data Warehouse afford to build it, or don’t have the time/knowledge/resources. schemas that often implement in 90-120 days and cost a fraction of the build approach. • Have user adoption and potentially data quality • Naturally, increasing the value of the information issues with EBS. delivered to the end user will drive adoption of the operational application. Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential Where’s The Gold: Scenario 3 New Prospect - Heavy Competition from SAP Characteristics Oracle Apps *Prospect* Heavy Competition from SAP Likely Issues Solution • Probably believe SAP’s approach is more • We need to turn the tide on this perspective – SAP’s scalable and more robust than Oracle’s approach. BI solution will simply NOT work in any environment other than SAP. Furthermore, it’s not cost effective except for a small number of users. • Probably believe SAP BI solution is more • The fact is, SAP BW is very limited in it’s usefulness seamlessly integrated into their ERP applications. They are very good at positioning this. to employees on the front-line. It provides solid information for financials, and is good for executives, but leaves all other employees wanting more. • If they are already an SAP shop, but understand • Oracle BI Applications are pre-packaged for SAP the limitations of BW, you can be sure they are looking at alternate BI vendors (not us). and are more robust than any others on the market due to the strength of the OBI EE platform. Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential Where’s The Gold: Scenario 4 SEBL CRM, SEBL Analytics, ORCL Apps Characteristics SEBL CRM SEBL Analytics (OBI EE) ORCL Apps Likely Issues Solution • Are leveraging the power of an integrated CRM • Easily extend their Siebel Analytics deployment by and BI solution with the Siebel deployment but have not yet realized those benefits with Oracle Applications. including the pre-packaged Oracle BI Applications for ERP – we can’t lose on the economics here. • Are likely custom building data marts or data • We need to find these immediately and convince warehouse for their Oracle Applications and planning on using another BI technology with it. them that the time-to-value on the build vs buy approach is a 5:1 ratio. Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential Where’s The Gold: Scenario 5 Oracle DW, Oracle Tech Shop, Incumbent BI Characteristics Oracle DW Customer Oracle Technology Shop Incumbent BI Technology on Top Likely Issues Solution • Have a maintenance nightmare w/ existing BI • These solutions do NOT manage change or technologies because of too many moving parts, un-integrated technologies, poor performance. upgrades well. They are “report-centric” architectures. Example: moving from BOBJ 6x to XI is a redeployment, not an upgrade. • Want a tighter, more scalable interface b/w BI • Simple question: which BI platform is more tightly tools and Oracle DW integrated with an Oracle DW – Oracle BI EE or anyone else? Same goes for the rest of the technology stack: Identity Mgmt, Portal, BPEL, etc. • Can’t answer questions across different data • OBI EE is the technology leader in the ability to join sources (Oracle, Teradata, SQL, etc.) across multiple data sources. It is also “arguably the best front end to a Teradata DW (Gartner)”. • Can’t integrate BI tools with operational systems • OBI EE is 100% SOA and can be seamlessly integrated into existing UI’s and business processes. Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential