Oracle Accelerate Messaging Guide in template v6.5download.oracle.com/accelerate/Messaging_Guide_template_v6.5.pdf · Oracle Accelerate Messaging Roadmap 5 Messaging Structure: Core

MESSAGING ROADMAP

Oracle Global Midsize Applications Program October 2009

Oracle Accelerate Messaging Guide

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I. Introduction…………..………………….…3

II. Accelerate Descriptions………………….4

a. 25 Word Description………………….……..…4

b. 75 Word Description……………….……….….4

III. Value Proposition……………………..…5

a. Messaging Structure…………..….....…………5

b. Core Tenets…………………………..……...…..5

i. Enterprise-Class Software……………..………..5

ii. Implementation Simplicity..….…………………8

iii. Expert Delivery Ecosystem..………….……….9

IV. Competitive Differentiators……………11

a. Messaging against SAP……………..……….11

b. Messaging against Tier Two and Three Vendors…………………………………………..……13

V. Midsize Company Pain Points……….…15

VII. Midsize Customer Quotes………….…18 .

TABLE OF CONTENTS

Oracle Accelerate Messaging Roadmap

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Their business has reached some critical point where important decisions must be made. They have a business problem— not a software problem. But increasingly, midsize companies look to information technology solutions to efficiently and affordably solve business problems while keeping scarce human resources focused on customers. An enterprise software selection is often the biggest monetary investment a midsize company has ever made. It can be a “bet-the-business decision” with little room for error. The challenge is compounded by the breakneck speed of business. And, as they always have, midsize companies must remain nimble while carefully managing cash flow, conserving capital, operating with limited resources, and keeping a constant eye on the fickle customer. Each and every IT project must be affordable and realize fast time to value. With Oracle Accelerate, software becomes not a back office expense but a strategic enabler. Oracle Accelerate is more than just a marketing initiative. To make it work, Oracle has relies on a substantial infrastructure and partner ecosystem. Throughout this document you will find that Oracle Accelerate solutions feature substantive and unique differentiators that can be brandished in midsize marketing activities.

INTRODUCTION

Most midsize companies considering enterprise applications are at a crossroads…


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25 Word Description Baseline Accelerate: Oracle Accelerate is Oracle’s approach to provide business software solutions to midsize organizations. Accelerate solutions include Oracle’s enterprise class software delivered with business accelerators by expert implementers. Next Generation Accelerate: Oracle Accelerate started as a way to deliver on-premise ERP solutions to midsize organizations. Accelerate now includes new solutions in supply chain and business intelligence as well as new deployment options like full hosting services and alternative financing options.

75 Word Description: Baseline Accelerate: Oracle Accelerate is Oracle’s approach to provide business software solutions to midsize organizations. Accelerate solutions include Oracle’s enterprise class software delivered with business accelerators by expert implementers. Oracle has over 40,000 applications customers globally. Oracle Accelerate provides tools and delivery ecosystem to capture the experience gained from this experience and to deliver the best software in the world rapidly, efficiently, and with minimal business disruption. Next Generation Accelerate: Oracle Accelerate started as a way to deliver on-premise ERP solutions to midsize organizations. Oracle Accelerate now includes new solutions in supply chain and business intelligence as well as new deployment options like full hosting services and alternative financing options for midsize companies. Oracle has extended its Business Accelerators tool sets to Demantra for advanced demand planning, Agile for product lifecycle management, Siebel CRM, and Oracle Transportation Management.

Accelerate Descriptions


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Messaging Structure:

Core Tenets Enterprise Class Software: No Scaled Down or “Lite” Applications Oracle Accelerate solutions empower midsize organizations with integrated enterprise-class applications that are the same as those deployed by Oracle’s largest customers. In this global market, midsize companies have the same complex IT needs as large enterprises. But most software vendors focused solely on the midsize market offer products that are designed to be “good enough” to solve immediate challenges of their customers. These products are sometimes described at “tier two” or “tier three” solutions. Often, midsize companies invest in these products

VALUE PROPOSITION


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because they believe it’s the best they can afford and that top tier solutions like Oracle are too complex and expensive. But such a strategy is often shortsighted and not sustainable for growing midsize companies and for those competing with large competitors in dynamic market conditions. Tier one and two vendors typically do not have the financial resources to invest in the necessary research and development to both develop deep capabilities and a broad product footprint. A limited product footprint means companies must acquire additional point solutions and bear the cost and complexity of the related integrations. The lack of deep industry capabilities means companies must embark on costly customizations, which have a ripple effect of creating complexity for maintenance and upgrade activities. Ultimately, companies that buy tier one or two products as a Band-Aid to immediate challenges are faced with a “rip and replace” scenario. The tipping point usually comes when a) the legacy solution(s) can no longer scale to transaction volumes; b) the product does not feature essential functionality; and or c) the legacy product goes out of support. Oracle Accelerate Solutions are built on the latest versions of Oracle’s enterprise class software—the same software being used by multi-billion dollar companies around the world. Oracle does not offer a water-down version of these products or a separate product line for midsize organizations. Midsize customers typically chose to deploy 80% to 90% of the baseline industry best practices offered through the Business Accelerators. The remaining needs are configured with the help of the partner. As a result, customers reach Conference Room Pilot (CRP) in a matter of hours or days rather than weeks or months. This enables them to start working with the software quicker which ultimately leads to a faster “go live”. Customers will never have to replace their ERP backbone due to scalability, functionality, or support issues. Industry Leading Capabilities • Gathered from thousands of implementations • Multiple, mature product suites match unique industry and deployment needs • Deep capabilities and broad footprint unlike tier two and three vendors • Data is entered once and permeates the entire system Unbeatable Scalability • Same applications whether you’re a startup or a multi-billion dollar conglomerate • Modular—Install what you need now, add more later Easy to Maintain • Adaptable without expensive customization • Factory built integration between suite products • Middleware framework enables midsize companies to affordably deploy Oracle’s best

of breed point solutions


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• Keeps customers on the upgrade path to benefit from new capabilities • Core suites plus industry leading point solutions help customers consolidate vendors


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Unparalleled Implementation Simplicity: Business Accelerators: Realize Business Value in Weeks Not Months Oracle Accelerate solutions leverage partner expertise and rapid deployment tools so that customers start realizing benefits in weeks not months. Oracle Business Accelerators—rapid implementation tools used by partners—provide the combined intellectual property built up between Oracle and our partners in over 25,000 implementations in midsize organizations. Business accelerators provide a powerful way to capture and use that intellectual property in the configuration of the software. Oracle has built up a cache of over 1,200 business flows as a part of business accelerators. Partners use these business flows as well as their own to build industry-specific business accelerators for their solutions. Most midsize businesses considering an integrated enterprise application solution have an urgent need that needs to be fixed now. They are also usually looking to take their businesses to the next level and, consequently, are interested in some level of business process reengineering. With Oracle Accelerate solutions, customers go live on Conference Room Pilot in a matter of a few days. This enables them to start working with the software sooner—with a subset of their own data—to identify what industry leading practices embedded in the software will work for their business as is. This allows them to quickly zero in on the 10-15% of processes that need to be configured specific to their unique business needs—their competitive differentiators. Focus on High Value Processes • Customers adopt industry best practices while retaining what is unique about their

businesses • Focus on specific processes to help the business now while retaining the ability dig

deeper into capabilities when ready Need-based Modular Deployment • Modular—Install what you need now, add more later • Broad range of products with factory built integrations Deliver Business Value in Weeks • Achieve Conference Room Pilot in days—customers start working with the software

immediately • Shorten project time line to reduce costs and mitigate risk


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Expert Delivery Ecosystem: The Right Project Scope, Plan, and Deployment Model Oracle partners leverage their experience and the industry best practices in Oracle Business Accelerators to quickly implement fixed scope, fixed price projects which results in lower costs, less risk of scope creep, and the faster realization of anticipated benefits. Rapid time to value means getting the right solution in place quickly, inexpensively with a controlled scope and predictable returns. Oracle partners are critical in getting projects completed on time, on budget, and with the right business capabilities. Oracle Accelerate Partners are experts in helping customers determine the right project scope based on product, industry, and geographic needs. They are equally proficient in building a project plan matched to the customer’s scope, time, budget, and resources. Skilled in product, industry, and geographic needs, they get customers up and running in Conference Room Pilot (CRP) in a matter of hours or days rather than weeks or months. Essentially this is a focus more on the “to be” than the “as is” for each business process. Because these accelerators do not customize the software code, it is easy to modify the configuration during the course of testing. Oracle Accelerate Partners’ solutions utilize the best practices in OBAs to typically configure the applications to 80%-90% to where they need to be for a specific customer. From there, the leverage their previous experience to configure the applications to a 100% solution. As long as the customer and partner agree to “stick to the plan”, this approach virtually eliminates scope creep. In fact, partners help their customers avoid the temptation of expanded scope by giving them the confidence that they can consume functionality as they are ready to digest it. Since Oracle’s applications feature built in integrations and can be continuously configured—rather than customized—first phase activities do not close the door to future additions. Partners also guide customers in selecting the right deployment and financing model. Customers do not have to make the “black or white” choices of either 100% in-house or 100% outsourced and of 100% purchased vs 100% leased. Oracle and its partners offer the flexibility to choose a blended approach. Rapid Time to Value • Partners employ training and tools to accelerate end user adoption • Incorporate leading practices gained from thousands of successful midsize company

implementations completed by partners and Oracle Consulting • Partners keep customers focused on desired scope to speed time to value


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The Right Scope • Skilled in determining the perfect project scope for customer business needs, budget,

and future plans • Specialize in building the optimal project plan based on customer scope, time, budget,

and resources • Advise customers on the ideal deployment and financing model Demonstrated Customer Success • Oracle has over 40,000 applications customers, 25,000 of which are midsize

companies, or those with under $500MM in revenue • Over half of those 25,000 are companies with revenues of under $100MM Note: In this context, “business accelerators” is synonymous with “rapid implementation tools”. “Oracle Business Accelerators” as a proper noun refers specifically to the rapid implementation tools built for EnterpriseOne, E-Business Suite, and PeopleSoft Enterprise by Oracle. Some Accelerate solutions are implemented rapidly using tools and methodologies developed by partners without Oracle’s involvement. These rapid implementation tools can be referred to generically as “business accelerators”. When referring specifically to the tools built by Oracle or by partners using Oracle tools EnterpriseOne, E-Business Suite, and PeopleSoft Enterprise use the term “Oracle Business Accelerators”.


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Oracle enterprise applications—delivered through the Oracle Accelerate program—have three distinct competitive differentiators: • Industry capabilities without customization • Enterprise-class or “Top tier” applications that are the same for midsize companies as

those deployed by our largest customers • Rapid implementation tools that feature industry best practices and are available to all

partners In terms of messaging, one or more of these differentiators may be called out depending upon the perceived competitive situation. In the midsize space (companies below $500 million in annual revenue), Oracle has two distinct classes of competitors. Post consolidation, only Oracle and SAP remain as “top tier” or “tier-one” vendors. Microsoft is a tier-one company that offers solutions with the characteristics of tier two and three vendors. “Tier-two” vendors include Lawson, Sage, Infor (SSA), QAD, and Epicor. Tier three vendors are too numerous to name.

Messaging against SAP SAP is the only other vendor that can match the depth and breadth of Oracle’s applications. It is possible to configure SAP apps to industry needs. But this is considered to be a more complex process than with Oracle apps. Consequently, SAP’s partners often customize the code to simplify or create industry and geography specific solutions. While this approach can lead to a rapid implementation it only is rapid as long as the customer wants exactly what the SAP partner provides.

COMPETITIVE DIFFERENTIATORS

Oracle’s competes against SAP at the high end of the midsize revenue spectrum and against Microsoft and myriad Tier Two and Three vendors toward the lower end.


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Also, SAP markets three products to midsize companies—SAP BusinessOne, Business by Design, and All in One. All in One is the only product that offers all of SAP’s industry capabilities. It is often compared to pouring wet cement. It can go in and fit, but as the customers’ needs evolve, the SAP implementations are often perceived as rigid. BusinessOne is a completely separate line of code that SAP bought. It does not integrate with SAPs other products and has only basic functionality. Business by Design is their new SaaS offering for which development has been repeatedly delayed and consequently is not viewed as a viable option for risk adverse companies. Thus, growing midsize companies considering SAP are going to be faced with one of three scenarios:

1. Too expensive to implement, maintain, and adapt—All in One 2. Not enough—Business One 3. Not ready—Business by Design SAP’s rapid implementation strategy “Fast Start” is largely a marketing push developed as a reaction to Oracle Accelerate. Fast Start begins with an on-line questionnaire and turns the input received into “requirements.” SAP can then turn these requirements into a demonstration by using canned data and flows lined up against a set list of the “requirements.” SAP All-in-One Fast Start partners are very skilled in delivering these canned demonstrations and can deliver them on the first visit since they have already collected requirements. This can be very compelling to prospects. Fast Start is, in practice, much more rigid than Oracle Accelerate. During deployment, Fast Start, simply loads the right application modules mapped against the “Requirements.” Only after the initial load of software is complete is any of the custom configuration done. Implementations using Oracle Business Accelerators actually can beat this approach. Oracle Business Accelerators should be used to provide actual customer configurations during the scoping process. Then when Accelerators are used to load the software, many of the customers’ specific configuration parameters are set in the new instance of software. This provides 2 big advantages: first, much of the uncertainty of implementation is removed in the scoping process, and second, this provides a better fit to the customers’ needs upon initial installation. In combination Oracle’s approach using Oracle Business Accelerators provides a better match to the customers’ needs, gets them live faster, and reduces risk through the actual work done in the scoping process. All messaging that will position Oracle against SAP should hammer home the following points: • Oracle products grow with you—All three Oracle enterprise application suites (E-

Business Suite, JD Edwards EnterpriseOne, and PeopleSoft Enterprise) are being deployed by midsize companies now. All are scalable and grow with the customer so that they are never faced with a “rip and replace” scenario.


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• Low Total Cost of Ownership—encompassing licenses, implementation, and ongoing maintenance. It is rare that an SAP implementation will cost less than an equivalent Oracle deployment.

• Flexible, Configurable Applications—Oracle applications are easily configured in the initial implementation and can be tweaked as a customer’s business changes.

Messaging Against Tier Two and Three Vendors Tier two and three vendors share some combination of these characteristics: • Very industry specific capabilities for targeted industries • Very generic capabilities that must be customized to industry needs • Designed to be easy for smaller companies but not scalable to large transaction

volumes • Limited R&D investment • Financial viability issues • Skill set requirements that are scarcely available Microsoft has the financial strength of a tier one vendor but its products consist of acquired tier two and three solutions. The messaging used against these vendors in marketing to midsize companies needs to address these market perceptions: • Oracle is too expensive to buy, implement, and maintain • Oracle is too complex to manage with a small IT staff • We don’t need the broad footprint and deep capabilities of Oracle applications If these perceptions can be countered, every company would want the power of Oracle applications. Oracle is too expensive to buy, implement, and maintain— • Oracle Accelerate provides the world’s best software at a low price • Oracle delivers higher value than Tier Two and Three vendors at a low TCO • Oracle’s enterprise-class software scales with growth for lower long term TCO • Oracle’s flexible financing options match a customer’s capital strategy • With Oracle Accelerate solutions, customers start realizing benefits sooner and have a

lower risk of cost overruns Oracle is too complex to manage with a small IT staff— • Most of our midsize companies have IT staffs of 2-10 people • Customers deploy only what they need as they need it in a phased approach • Oracle and its partners provide customers with incremental resources on an as-

needed, on demands basis • Oracle and its partners offer customers a wide range of deployment options so

customers only pay for what they need now We don’t need the broad footprint and deep capabilities of Oracle applications— • Oracle Accelerate addresses urgent, business-critical needs with an industry solution

that allows you to grow and change without re-implementing


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• Even small business need global capabilities that aren’t available in Tier Two and Three solutions

• Midsize companies now look to technology to manage complex global needs since they don’t have vast human resources

Emphasizing the success stories of Oracle midsize applications customers and partners can change these perceptions. Oracle gains credibility because it is not Oracle saying it but the customer. Success stories frequently mention that the customer faced complex challenges, that Oracle was affordable, and that the project was implemented with few internal resources augmented by partner expertise. Point out the positive, tangible advantages to partnering with the largest business software company in the world. • Oracle’s financial strength—do you want to bet on which of those Tier Two and Three

vendors will survive? • Oracle’s annual multi-billion dollar investment in innovative R&D—How much can a

Tier Two or Three vendor spend on innovation? • Oracle experts are everywhere—How deep is the talent pool for experts on Tier Two

and Three applications? • Oracle’s Applications Unlimited commitment—How high is the risk that a Tier Two or

Three product will reach end of life due to acquisition or financial insolvency?


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Pain Point: “Our reports are outdated by time I get them and I don’t have confidence in their accuracy” Symptoms: • Current IT infrastructure consists of multiple disparate applications that have been

heavily modified and are connected through custom integrations • Reports are compiled through an iterative process of compiling departmental data that

has been summarized and scrubbed. Oracle Prescription: • Integrated • Enterprise Class Software • Depth in Applications

Pain Point: “Our current processes have gotten us this far but I don’t know where to go from here.” Symptoms: • Processes were developed somewhat informally over time and are not rigidly

documented • Processes reflect the genius of the founders and are not scalable to a diverse global

business • Internal resources are not savvy on industry best practices Oracle Prescription: • Leading practices • Enterprise Class Software • Expert Partners

MIDSIZE COMPANY PAIN POINTS

Midsize businesses and government entities face the same challenges as large enterprises. Their pains are compounded by a lack of IT resources—budget and staff.


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Pain Point: “Our global supply chain needs have outgrown the capabilities of our current IT Infrastructure.” Symptoms: • Human resources are applied to IT shortcomings • Business has evolved to something different than the original charter • Legacy systems are outdated (end of life, customized) • Legacy systems are generic and don’t feature industry-specific capabilities Oracle Prescription: • Enterprise Class Software • Expert Partners • Leading Practices • Depth in Applications

Pain Point: “We’re so busy…there is only a short window of opportunity each year to take on big IT projects.” Symptoms: • Executives develop fear of project cost and timeline overruns • Human resources are applied to new needs • Legacy systems are customized to meet new needs Oracle Prescription: • Business Accelerators • Expert Partners

Pain Point: “I only have a few people on my IT staff and they’re focused on maintaining our legacy applications.” Symptoms: • Organization develops an opinion that IT is not strategic to meeting business goals • IT is viewed as ineffective because they cannot address end user requests for new

capabilities Oracle Prescription: • Expert Partners • Business Accelerators

Pain Point: “I only have a small IT budget and I can’t afford top tier applications” Symptoms • IT is not viewed by executive team as a strategic enabler • Current IT resources are focused on maintaining systems and integrations (back

office, tactical) rather than addressing business needs (front line, strategic) • IT costs are inordinately high and unpredictable due to end of life solutions and

customized code • Scrutiny on capital purchases precludes a “traditional” software acquisition model

(purchase hardware and software; self maintained)


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Oracle Prescription: • Business Accelerators • Flexible Deployment Options • Focus on High Value Processes

Pain Point: “I can’t take the risk of implementing a tier one software solution for my small business.” Symptoms • IT is not viewed by executive team as a strategic enabler • Decision makers are not aware of how enterprise applications implementations have

evolved to shorter less expensive projects Oracle Prescription: • Focus on High Value Processes • Business Accelerators • Flexible Deployment Options • Expert Partners


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“We looked at other vendors but didn’t have the confidence their applications could be implemented quickly and at the proposed cost. With Oracle and DAZ Systems, Inc. that was never an issue. We knew that they could do it by their references and reputation. Also, a key factor in deciding on Oracle was that you don’t need to build an army to maintain the system.” —Brian Alikhani, IT Director, Corsair Microsystems, Inc. High Speed Memory Modules 300 employees Partner: DAZ Systems, Inc. “The costs are so low these days, especially using Oracle Business Accelerators. We’re just now starting to ship product and our goal is to keep as much of our costs variable as possible. We save a lot of money by outsourcing most of the Oracle system maintenance. I need one IT guy maybe six hours a week for the Oracle system.” —Andre Jaekel, CFO eZono Ultrasound Technologies for Medical Devices Startup Company Partner: Pyxis Consulting Group GmbH

MIDSIZE CUSTOMER QUOTES

Midsize customers referenced in any Accelerate marketing asset or activity should also always be customers of our Accelerate Solution providers


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“We were able to implement an advanced solution within our budget, and our current staffing level, due to Zanett’s use of Oracle’s Accelerators and the strength of Oracle’s JD Edwards EnterpriseOne applications. Chart of accounts set up in a new system is usually a big task, but we accomplished it in an afternoon. Now we can truly manage our business with real-time, accurate insight.” —Tom Frederick, CFO Creative Cabinets Systems, Inc. Customer Store Fixtures and Architectural Millwork 150 employees Partner: Zanett “We’re in a commodity market and it’s pretty tough. You have to run the company very lean, and the only way you can run the company very lean is to have information at your fingertips.” –Carlos Fandino, VP of Operations Gavina Gourmet Coffee $100M Revenue Partner: DAZ Systems Inc.

Documents

Oracle Accelerate Messaging Guide in template v6.5download.oracle.com/accelerate/Messaging_Guide_template_v6.5.pdf · Oracle Accelerate Messaging Roadmap 5 Messaging Structure: Core