Oracle Japan Strategy Business Transformation and Development

Transcription

1 Japan Strategy Business Transformation and Development Environment Recognition Business Environment Economic stagnation GDP decline Sluggish share prices Sluggish capital investment Deflationary force Corporate Governance Advanced network tech. IT investment Keywords High ROI Intelligence productivity Utilize existing information Strengthen IT governance Increasing Information Dependence of SMEs 2 1

2 Continue Making Progress to Targets Outlined in Innovation 2003 Innovation 2003 target (as of January 15, 2003) Recover and maintain operating margins of 30% FY03 result Realized (30%) FY04-06 Maintain / Improve Over 100 billion revenue in FY06 Achieve target 15% average annual operating income growth Achieve target 3 Positioning and Goals of Innovation Full-scale Development in FY05, 06 Positioning Goal (Yen in billions) FY03 Strategy Launch FY04 Transformation FY03 FY04 FY05 FY06 35% 34% 33% 32% 31% 30% 29% 28% 27% Operating Margin FY05 Implementation YoY Growth 20% 15% 10% 5% 0% -5% FY04 FY06 Growth FY05 FY06 Revenues Operating Income Operating Margin Revenue Growth Op Inc Growth 4 2

3 FY04 Revenue by LOB 3.6B 3.2B 12.7% 13.5B 8.2B 39.5% S/W Prod Support Consl. Educ. New Business Model 28.4B 31B 9.0% New Business Model Margin Focus 40.5B 41B 1.0% FY03 FY04 Continuous Growth Alleviate Downward Trend 5 Status of Innovation 2003 Key Initiatives Back Office Shared Center Utilize China Development Center Development Innovation 2003 Direct Sales Partner Network China Business Unit Flow Based Approach Outsourcing NeO 6 3

4 Status of Innovation 2003 Key Initiatives Back Office Shared Center Utilize China Development Center Development Shared Innovation 2003 Direct Sales Partner Network China Business Unit ervice Center Partially transferred to Sydney in Apr. Flow 2003 Based Approach Outsourcing NeO 7 Status of Innovation 2003 Key Initiatives Back Office Direct Launched Shared Tokyo Center Center in July with 60 employees Planning to increase to 100 Utilize Partner China Network Member Development Partner Center Status +300 partners Development Target +700 partners Innovation 2003 Direct Sales Partner Network China Business Unit Flow Based Approach China Business Unit Outsourcing Established NeO in Mar. 03 First location in Shanghai beginning Aug

5 Status of Innovation 2003 Key Initiatives Back Office Short-term implementation methoddirect Flow Shared Based Approach Center 3 cases Short-term fixed price solution Utilize China NeO Development 23 partners Center with 38 solutions Development as of Jun. 18th Innovation 2003 Sales Partner Network China Business Unit Flow Based Approach Outsourcing NeO 9 Status of Innovation 2003 Key Initiatives Back Office Shared Center Utilize China Development Center Development Direct China Development Partner Center Network Success of China first project Business Unit utilizing Chinese resources 75% Cost savings Innovation 2003 Sales Flow Based Approach Outsourcing NeO 10 5

6 FY04 Action Plan Linux New EBS Business Model New Products Product Business Environment Market Development of new markets Launch Outsourcing Direct for real 11 Appendix 6

7 Linux Strategy Inaugural year of Linux Enterprise Enterprise Platform with Linux Shift to high-end market from small-medium size market To be a mission critical system Linux with all advantages Target CAGR 50% (M Yen) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Linux RDBMS Market forecast in Japan(revenue base) Source: IDC Japan, Aug CAGR 45.5% Linux share by RDBMS in Japan Company A 10.8% Company B 4.2% Japan 85% Source: MIC Research Institute (FY2001) 13 Company Info. Since Jun.1st, 2001 President Takeshi Sato Capital 400M Major stock holders: Japan 58.5% NEC 14% SunBridge 4% Miracle Linux Strategic partner of Japan for Linux Revenues Strategy of FY04 T Enterprise Linux(9i RAC/64bit) T Expand professional services T Market share 45% ( 37.2% in 2002) 0 +48% FY01 FY02 FY03 Mission To be the most trusted company for Linux area with providing customer oriented high quality software product and professional services Source: IDC Japan, Feb

8 Pioneer New Markets Established Advanced Solution Development Group Solution Portfolio Growth Home Appliance 6 Trillion Time To Market TV Broadcasting (Include Satellite And Cable) 3.1Trillion Movie 0.6 Trillion Low Affinity with Technology High * Size of each Circle shows the size of Business * Source: Japan s Estimation Telecom 17 Trillion Medical Device 1 Trillion Education Newspaper Publishing 3.7 Trillion Game 0.6Trillion Music S/W 0.5Trillion Telematics 2 Trillion 1.6 Trillion Enterprise IT Investment 7.3 Trillion Pckg. Software 1.7 Trillio n Market size X Growth Potential X technology = Create a new market FY03 2b FY04 4.5b FY06 10b 15 Outsourcing Technology Exact response Provide workaround Provide patches Internet Support Provide technical info. Over 10 years of history Accumulated know-how Well organized support Excellent analysts and engineers Prevention Health check & review of operations Track the operating environment Review to maximize resource utilization Parameters check and tuning advice Support Business Success for Customers 16 8

9 Reduce Outsourcing Costs by Changing EBS Business Model Made-to-Order: SI model Ready-made model General Contractor Design & Estimation Procurement & Installation Expensive & Long Delivery term s Role Solution Architects Standardized Menu Provide customer guidance Clear Price and Short delivery term AIM, fit&gap Add-on Tools NeO, FBA Large Outsourcing Expense Effect High Profit Margin 17 Customer Importance / Deal Size Higher Selling Partner Innovate Business Process to Enhance Profitability Increase Customer Coverage Base Customers Nominated Accounts Others Sales Industry Sales Div. Customer Coverage Sales Consultant DB EBS Direct Cross Industry Sales Div. Core Technology EBS Products Lower 18 9

10 Realizing Systematic Selling by Direct Campaign to Cash Campaign Campaign Market Market Leads Opportunities Quotes Order Cash Cash Inbound Inbound High-Touch -Expert- IP Network CRM eselling Tools Customized demonstration Presentation Sample of System Diagram 9i Infrastructure powered by Products 19 s 20 Years of Innovation Announced: Dec Shipped: Oct Collaboration Suite 9i Application Server Real Application Clusters XML Databese Virtual Private Database Internet File System Various Award Winner Built in Java VM Internet Enabled Database VLDB Support Built in Messaging Object Relational Support Support for All Multimedia Data Warehousing Optimizations Parallel Operations Active Business Rules Distributed SQL & Transaction Support Cluster and MPP Support Multi-version Read Consistency Client/Server Support Platform Portability Commercial SQL Implementation World s Biggest Technology Site No. of Members 2.9 mm Worldwide, 200,000 in Japan

11 2002 RDBMS Revenue Market Share is No.1 in RDBMS Market Worldwide 2002 Japan 2002 B 11.1% C 3.6% D 1.7% Other 10.7% B 11.2% C 6.3% D 5.1% E 4.0% Others 2.9% A 33.6% A 16.9% 39.4% 53.6% Source: IDC, March 2003, includes New Licenses and Upgrades Source: IDC Japan, Preliminary July s Advantage vs. The Competition Information In One Place Single Data Model Single Database Integrated Solutions Integrated Technologies is #1 in RDBMS vendor both worldwide and in Japan 9iAS: Excellent cost performance Proven security: ISO15408(EAL4) compliant 22 11

12 NOTICE This material may include predictions, estimates or other information which are not the historical facts. While these forward-looking statements represent our current judgment based on the available information at the release of this material, they are subject to risks and uncertainties that could cause actual results to differ materially. For analyst meeting request or inquiries, please contact; Investor Relations Finance Div. TEL FAX IR Web Site: