it business solutions as an effective enterprise management tool sergejs jermakovs application sales...

IT Business Solutions as an effective enterprise management tool

Sergejs JermakovsApplication Sales ManagerOracle Latvia

• Enterprise Applications &

Decision Drivers• Development Tendences• Business Solutions Positioning• Cost of Business Solution• Recommended steps

Agenda

• Enterprise Applications &

Decision Drivers• Development Tendences• Business Solutions Positioning• Cost of Business Solution• Recommended steps

Source: IDC, 2004

ENTERPRISE APPLICATIONS

ERM SCM

• Accounting• HRM/Payroll• Inventory Management• Procurement/Sales OrderProcessing• Maintenance Management• Others

• Sales Automation• Marketing Automation• Customer Service & Contact Center

• Manufacturing• Retail• Wholesale distribution• Logistic

CRM

~ Project Management~ Business Performance Management~ Contract Management~ Treasury Management

IDC’s Enterprise Applications Market Segments

The 90’s Are Over

1990’s ERP Solution Decision Drivers

• Windows• Client/Server technology• Dude: the word is E-Business• Armageddon: Dec. 31 2000!• Fear, Uncertainty and Doubt: The Euro

Great Expectations

• Tight integration• Proved ROI • Business processes understanding• Change management• BI, CPM, EPB, B2B, “to B or not to B”?• No surprizes!

- and outsourced it to Flextronics

Ericsson has stopped their production of mobile phones!

Here’s the sportscar from the Finnish tractor manufacturer Valmet

- sold under the Porsche Boxster brand

- from now on they are manufactured by Sanmina-SCI

IBM, the PC pioneer, has now manufactured it’s last laptop

Microsoft is becoming a hardware manufacturer!

- Not really, the only thing MS has built on the XBox is the brand

Supply Chain Drivers

Lower CostsReduce Inventory

Reduce Manufacturing & IT Costs

Lower CostsReduce Inventory

Reduce Manufacturing & IT Costs

Improve Customer ServiceMeet Quality & Delivery Commitments

Drive Increased Revenues

Improve Customer ServiceMeet Quality & Delivery Commitments

Drive Increased Revenues

Increase EfficiencyAccelerate Productivity & Cycle Time Gains

Enable Real-Time Visibility Across the Supply Chain

Increase EfficiencyAccelerate Productivity & Cycle Time Gains

Enable Real-Time Visibility Across the Supply Chain

Agenda

• Enterprise Applications &

Decision Drivers• Development Tendences• Business Solutions Positioning• Cost of Business Solution• Recommended steps

Services

Agenda

• Enterprise Applications &

Decision Drivers• Development Tendences• Business Solutions Positioning• Cost of Business Solution• Recommended steps

Customer Profiles

UPPER

LOWER

UPPER

Platform

• IBM iSeries• Sun/HP/IBM LINUX• Oracle/DB2/SQL Server

Characteristics

• Higher OLTP• >$250 million A/R• >500 employees• Stable growth• Strong IT dept

Concerns

• Integration• Analytics• Customization

LOWER

Platform

• Intel• Microsoft• Other DBMS

Characteristics

• Lower OLTP• < $250 million A/R• < 500 employees• Rapid growth• Stretched IT Dept

Concerns

• Ease of use• Ease of rollout• Quick ROI

MID MARKET

14 million

7,000

13,000

0.04

%0.

08%

0.88

%99

.0%

125,000

Sizing the Western European SMB Market

500-999 Employees

100–499 Employees

1–99 Employees

Source: IDC Western Europe SMB Program

1000+ Employees

Number of companies in Western Europe, 2004Number of companies in Western Europe, 2004

Small and Medium

Businesses

ERP vendorsRevenue

Amount

Agenda

• Enterprise Applications• ERP Solution Decision Drivers• Development Tendences• Business Solutions Positioning• Cost of Business Solution• Recommended steps

Cost of Business Solution

• ERP modules (functionality)

• Hardware

• Additional programming

• Implementatiion

• Project management

• Support

• Upgrades

Return on Investment(ROI)

Cost-Benefit Analysis (CBA)

Total cost of ownership (TCO)

%100

TCO

TCOCBAROI

Agenda

• Enterprise Applications &

Decision Drivers• Development Tendences• Business Solutions Positioning• Cost of Business Solution• Recommended steps

• IT strategy

• Internal project group

• Requirement specification

• Existing business processes

• Missing functionality

• External consultants

• ROI calculation

Recommended steps

Questions

Contacts

Sergey JermakovApplication Sales Manager Oracle Latvia21 K.Valdemara Str., Riga, Latvia, LV-1010http://www.oracle.com/solutions/Phone:  +371 7046090Fax:  +371 7287017

Direct:  +371 7046084Mobile:  +371 9130906E-mail:  sergejs.jermakovs@oracle.com