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: [email protected]