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Oracle Applications Applications Strategy

John Schmeisser Sales Consulting Manager

Oracle Corporation Ÿ World’s Largest Information Management

Software and Services Company –  More than $10+ Billion in Revenue –  Close to $2 Billion in R&D –  More than 50,000 Employees –  100 Countries around the world –  250,000 Customers –  20,000 Partners –  1.6 Million Developers

Ÿ World’s Leading Enterprise Software provider –  All 10 of worlds largest web sites use Oracle –  98 of Fortune 100 use Oracle –  1st Company to develop 100% internet enabled enterprise

software applications across its entire product line

Agenda

Applications Strategy

Oracle Applications Today

Next Applications Releases

Longer-term Applications Direction

Our Mission

Become the #1 Applications Company Worldwide by

Making our applications a source of continual competitive advantage for our customers

How

Be mindful of our competition

Understand our customers’ business and where it is going

Build the best products

State of The Union

Ÿ We are working as a single company toward Applications leadership

Ÿ We are now number 1 in many key application markets

Ÿ While we are still very early in this merger, we have accomplished much –  Organization, process, alignment of goals

Applications Strategy

Ÿ Extend our applications commitment –  Protect our customers’ investments –  Provide enhancements in future releases –  Accelerate innovation with expanded R&D –  Provide rapid and high quality technical support –  Provide the best Total Ownership Experience

Ÿ Become the leader in applications –  Leader today in North America, HR, SCM, etc.

On Our Way to Becoming the Leader Industries Running Oracle Applications

Ÿ  7 of the top 10 aerospace and defense companies

Ÿ  9 of the top 10 automotive manufacturers on Industry Week's 2004 manufacturing companies

Ÿ  8 of the top 10 “Americas Most Admired” engineering & construction companies

Ÿ  17 of the top 20 World Banks

Ÿ  50% of the Global 500 Health Networks

Ÿ  9 of the top 10 global manufacturing conglomerates

Ÿ  9 of the top 10 oil field services companies

Ÿ  All 15 U.S. Federal Cabinet Agencies

Agenda

Applications Strategy

Oracle Applications Today

Next Applications Releases

Longer-term Applications Direction

Oracle Applications Today

Release 11i.10 Oracle E-Business Suite

Release 8.11 JD Edwards EnterpriseOne

Release 8.9 PeopleSoft Enterprise

Value Proposition for Today’s Applications

Ÿ Protect your applications investment

Ÿ Provide more functionality with a lower TCO

Ÿ Ensure smooth upgrade path

PeopleSoft Enterprise 8.9 Example: HCM Ÿ  The “Customer Loyalty” release

–  5000 enhancement requests, 874 customer visits –  160 Focus Groups

Ÿ  First full implementation of the Total Ownership Experience (TOE)

Ÿ New Product: Absence Management

Ÿ New Functionality: –  Contingent Workforce Management –  Flexible security –  Extensive improvements in T&L, GP, and Recruiting solutions –  2nd release of ePerformance

PeopleSoft Enterprise 8.9 Example: EPM Ÿ  Faster to implement

–  Powerful metadata management –  100+ pre-packaged BI reports –  Streamlined architecture

Ÿ  Easier to use –  Active modeling, planning and budgeting –  Personal scorecards –  Instant audit trail

Ÿ Richer analytic content –  300% more content

JD Edwards EnterpriseOne R8.11

Ÿ  Extended Demand-Driven Manufacturing Advantage –  Demand Flow® Manufacturing –  RFID Processor, License Plating

Ÿ  Powering small-midsize enterprises –  Rapid Start, compliance solutions, Pure Internet Architecture

Ÿ  Embedded CRM –  Embedded Sales & Service –  New branch scripting, case management, solution advisor

Ÿ  Strengthened solutions for Projects & Services –  Pay when paid, performance-based labor forecasting –  Burdening and retro billing adjustments

Ÿ  Total Ownership Experience

Oracle E-Business Suite R11i.10 Ÿ  Expanded industry functionality: new & existing

–  Examples: Healthcare, Public Sector, High Tech

Ÿ  Expanded horizontal functionality –  Examples: Service, Sales & Marketing, Procurement

Ÿ Daily Business Intelligence –  ~50% growth in measures, reports, and dashboards

Ÿ  Improved integration –  150 OAG messages, 915 business events, Integration Repository

Ÿ Data Hubs –  Delivered last year: Customer Data Hub –  Now working on: Product Data Hub, Citizen Data Hub, Financial

Consolidation Data Hub, and Financial Services Accounting Hub

Agenda

Applications Strategy

Oracle Applications Today

Next Applications Releases

Longer-term Applications Direction

Next Applications Releases •  Continue developing major new functionality across

all 3 product lines

•  Continue maintenance and regularly scheduled enhancements for JD Edwards World

•  Meet our customer commitments

2006

Release 12 Oracle E-Business Suite

Release 8.12 JD Edwards EnterpriseOne

Release 9 PeopleSoft Enterprise

Value Proposition

Ÿ Better information

Ÿ Adaptable and open

Ÿ Total ownership experience

Ÿ On the path to Fusion –  JD Edwards EnterpriseOne: Operational Dashboards –  PeopleSoft Enterprise: business activity monitoring in

the Call Center –  Oracle: System performance monitoring

Agenda

Applications Strategy

Oracle Applications Today

Next Applications Releases

Longer-term Applications Direction

Evolution of Application Technology

Mainframe Applications

Client-Server Applications

Internet Applications

Service Oriented Applications

What does an SOA Look Like?

ü  Process Integration ü  Analytics ü  Portal Access ü  Context Driven ü  Unstructured Content ü  Collaboration ü  Multi-channel

Key Characteristics:

How are SOA’s built?

Database Technology

Development Tools

Portal Technology Process Technology

Integration Technology

Application Server

Composite Infrastructure

Collaboration Technology

Analytics Technology

SOA’s Require

Ÿ Services Repository –  Contains a rich set of business services –  Both Oracle and PeopleSoft launched these in 2004

Ÿ Consistent Data Model –  Oracle’s E-Business Suite is the industry’s only cross

functional consistent data model –  Data Hubs acts as master data manager

Ÿ Standards and Openness –  Oracle Implements Web-services

What is Fusion

•  Technically, the next step in Oracle applications technology, embracing a service oriented and standards-based information architecture

•  This allows more cost effective integration, flexible business processes and extensibility

•  More than an architecture… Project Fusion is about fusing processes, people, and products to form a completely new applications business that leverages the best parts from each of the components

Fusion is a path, not a destination

Key Aspects of Fusion Applications Evolutionary

•  Successor to JDE, PeopleSoft, and Oracle product lines •  Includes the best functionality from all products •  Supports customer-paced transition

Open •  Interoperable with third-party and existing JDE, PeopleSoft,

and Oracle installations •  Built on open industry standards •  Extensible by customers and partners

Powerful •  Built by the world’s largest enterprise software company •  Based on the best technology for lowest cost and best value •  Extends functionality from all product lines to all customers

Fusion Builds On Our Fundamentals

Ÿ  Provide Greatest Business Insight –  System design begins by delivering the key information needed

for optimal business operations –  Open to information from other sources

Ÿ Most Adaptive and Open Business Processes –  Integrate with legacy and third party systems –  Continued industry-specific functionality focus –  Easily tailorable –  Leverage industry standards

Ÿ  Best Total Ownership Experience –  Focus on product quality –  Full lifecycle management philosophy

Greatest Business Insight Information You Can Trust

Ÿ  Embedded analytics and management reporting

Ÿ  Real-time operational analysis and ability to take related actions

Ÿ  Industry specific KPIs

Ÿ  Open to third party data

Adaptive Business Processes Information You Can Use

Ÿ  Industry-based configuration

Ÿ Modularized services

Ÿ Broad API / web services support

Ÿ User experience personalization

Ÿ Standards-based extensibility

Ÿ  Tailored business process flows

Best Ownership Experience Information You Can Manage

Ÿ  Automated, tailored installs Ÿ  Minimal downtime upgrades

Ÿ  Active system and business monitoring

Ÿ  Self-supporting, self-tuning

Ÿ  In-place education

Ÿ  Packaged integration… from server technology, middleware, to applications

Why Oracle is Uniquely Able to Deliver

• Best in class IP, process, people from Oracle, PeopleSoft, JD Edwards, and Retek

• Unparalleled level of investment, including applications and server technology divisions

• History of successful customer-paced transitions

Evolution: Information Driven Applications

1979 First commercial SQL RDMS

1988 First to introduce PL SQL

1993 Introduce client / server applications

1996 Open standards, web enabled architecture; first self-service applications

1998 Release 11.0 of applications, for web deployment only

2000 First to introduce a complete applications suite

2003 First to provide a single customer view from disparate data sources

1987 First to introduce UNIX applications

2004 Release 11i.10

Product Roadmap JD Edwards World Enhancements

2005 2006 2008 2007

•  PeopleSoft Enterprise 9.0

•  JD Edwards Enterprise One 8.12

•  Oracle 12

•  First use of Fusion technology

•  Data Hubs and Transaction Bases

•  Continue releasing PeopleSoft Enterprise 8.9

•  Fusion Architecture

•  Individual Fusion Applications

•  Fusion Applications Suite

Fusion is For Everyone

Ÿ Automated upgrade path from 2 releases

PeopleSoft Enterprise 8.9 9 Fusion

JD Edwards EnterpriseOne 8.11 8.12 Fusion

Oracle E-Business Suite 11i.10 12 Fusion

Current Release

Next Release

Summary

Ÿ Deliver customer value today

Ÿ Next releases begin the path to Fusion

Ÿ Fusion continues to build on our fundamentals