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Jill HughesOracle Business Intelligence

Demystifying “Oracle BI”

Some Terms

OBI EE: Oracle Business Intelligence Enterprise Edition• This is the “strategic” BI Platform for Oracle that was inherited from the

Siebel acquisition.

OBI SE: Oracle Business Intelligence Standard Edition• This is the new packaging of Oracle Discoverer & other legacy Oracle

BI technologies.

Pre-Packaged Oracle BI Applications• BI application solutions for EBS, PSFT, JDE, SEBL, and SAP, that

generally include pre-built ETL, DW, Metrics, Reports & Dashboards.• These solutions are:

• DBI: Daily Business Intelligence• EPM: Enterprise Performance Management BI Applications

­ Packaged, subject-specific warehouses and data marts

• OBI Applications: Business Intelligence Applications (from Siebel)

User Interface

DataSources

Oracle Business Intelligence Applications

Pre-Siebel Acquisition – Oracle Offerings

BIPlatform

DBI UI(PerformanceManagement

Viewer)

DBI Apps

EBS

Financials D

BI

Sup

ply Chain D

BI

HC

M D

BI…

Oracle DBI

3rd-Party(BusinessObjects,

Cognos, etc)

EPM BI Apps

JDEPSFT

Financial W

arehouse

HC

M W

arehouse

SC

M W

arehouse

PeopleSoft EPM

Other

User Interface

DataSources

BIPlatform

Oracle Business Intelligence Applications

Pre-Siebel Acquisition – Siebel Offerings

SBA Apps

SBA UI(Dashboards,

Answers, Alerts)

Financial A

nalytics

Sup

ply Chain A

nalytics

Workfo

rce A

nalytics…

JDE Other

SAPEBSPSFT SEBL

Siebel Business Analytics

User Interface

DataSources

BIPlatform

SBA Apps

OBI EE(Dashboards,

Answers, Alerts)

Financial A

nalytics

Sup

ply Chain A

nalytics

Workfo

rce A

nalytics…

Oracle Business Intelligence Applications

Oracle Offerings Today

Siebel SBARenamed to:

Oracle Business Intelligence

Enterprise Edition (OBI EE)

DBI UI(PerformanceManagement

Viewer)

DBI Apps

EBS

Financials D

BI

Sup

ply Chain D

BI

HC

M D

BI…

Oracle DBI

3rd-Party UI(BusinessObjects,

Cognos, etc)

EPM BI AppsF

inancial Warehou

se

HC

M W

arehouse

SC

M W

arehouse…

PeopleSoft EPM

JDEPSFT

Other

Siebel Business Analytics

JDE Other

SAPEBSPSFT SEBL

User Interface

DataSources

3rd-Party(BusinessObjects,

Cognos, etc)

EPM BI Apps

DBI UI(PerformanceManagement

Viewer)

DBI Apps

Oracle Business Intelligence Applications

‘Better Together’ Offerings – By End FY2007

SBA Apps

OBI EE(Dashboards,

Answers, Alerts)

Financial A

nalytics

Sup

ply Chain A

nalytics

Workfo

rce A

nalytics…OBI EE

(Dashboards,Answers, Alerts)

Financials D

BI

Sup

ply Chain D

BI

HC

M D

BI…

OBI EE(Dashboards,

Answers, Alerts)

“OBI EE” as the new UI

CY2006 Delivery

EBS

Oracle DBI PeopleSoft EPM Siebel Business Analytics

Financial W

arehouse

HC

M W

arehouse

SC

M W

arehouse …

JDE Other

SAPEBSPSFT SEBL

JDEPSFT

Other

BIPlatform

OBI Myths Myth: Oracle’s BI Technology Strategy is still being debated

• Truth: OBI EE technology is the centerpiece of Oracle’s BI Strategy.

Myth: Oracle’s EPM/DBI strategy is going away• Truth: OBI EE is the Business Intelligence platform on which the pre-built Siebel BI

Applications are built, and OBI EE is also the new Business Intelligence platform for EPM & DBI. This gives us the ability to offer our customers the “BI application” solution that best meets their needs.

Myth: The Siebel BI Applications are for Siebel CRM only• Truth: These applications are ready to go today for Oracle EBS, PeopleSoft, and SAP, with

JDE coming this fiscal year.

Myth: Oracle is going to buy Business Objects (or some other BI vendor…)• Truth: Who knows? A BOBJ (or other) purchase will always be on the radar. But such a

purchase has nothing to do with product strategy – OBI EE is the strategic technology choice.

Myth: TSMs sell OBI EE; ASMs sell OBI Applications; BI sells both• Truth: We sell what best fits the customer’s needs. Pre-built BI Apps are a major differentiator,

whether it’s EPM, DBI, or SBA. Application deals are 3-4x larger than pure Technology deals.

• Message to TSM’s: Would you rather get 100% of a 200K deal, or 50% of a 800K deal (our average sales prices over the past 5 years).

The Market Situation

Let’s start with a simple proposition

Everyone in your company can do their jobs better if they made decisions and took actions based on actual information rather than “best guess” or “how we did it last year”

Sounds simple, but….

BI Challenges Today

• Fragmented• In-consistent• Report-centric• Restricted• Non-Intuitive

Hasn’t the promise of BI been there for the past decade?

…not easy to achieve!

The Business Intelligence Marketplace

0

60%

50%

40%

30%

20%

70%

10%

80%Current % User Penetration

66%66%51%51%

33%33% 30%30%10%10%

ERP SCM CRM BI Tools

BIApps

2010 Seat Estimates0

60

40

20

80

100Estimated User Potential

59 Million

ERPERP

CRMCRM

SCMSCM

BITools

BITools

BIApps

BIApps

98 Million

Sources:­Goldman­Sachs­Estimates­&­Department­of­Labor

2003

2004

2005E

2006E

2007E

2008E

$8B

$6B

$4B

$2B

$10B

Source: IDC, 2004

BI Applications

BI Tools

0

$3.8B

$3.7B

$7.5B$4.1

B

$8.1B

$4.2B

$4.6B

$8.8B

$4.5B

$5.1B

$9.6B

$4.7B

$5.6B

$10.3B

$6.2B

$11.1B

$4.0B

$12B

$4.9B

Market Size

Insight-Driven Business Processes

“Business intelligence (BI) is moving into the context of the business process, not just to make users’ information experience more effective, but also to allow for business process optimization.”

Software Macro-Trends: Reshaping Enterprise Software - Sep 2005

Oracle History in the Market

80-85% of COGN, BOBJ & HYSL’s revenue come from selling their “Tools” on top of an Oracle DW.

SAP sells SAP/BW with every deal – it looks and feels like a clean, integrated story (even if it’s not true).

At Oracle, in Commercial for FY06:• ~18M in total revenue for CPM/EPM• Avg deal size ~$64K• 3rd Largest EPM Deal in Q4: 700K for EPM/Scorecard

• And yet $1.4M went to BOBJ for the BI piece

Oracle dominates in the DW market share, but is largely not visible in the BI tools market…not yet at least.

Siebel Business Analytics History

In November 2001, Siebel bought nQuire Software – 55 employees, not much revenue, revolutionary BI Platform that is now OBI EE.

In FY2005, 27% of Siebel’s Revenue came from Siebel Business Analytics – both technology & applications.

There are now over 800 SBA (OBI EE) customers• 20% ONLY use the BI Technology (OBI EE ONLY)• 5% ONLY use restricted “application-only” version of OBI EE• 75% use BOTH the pre-packaged BI applications and the BI

Technology for custom-built BI applications on existing data warehouses & other sources

Siebel Business Analytics History

3.5%Fair Isaac7

4.1%SAP AG5

6.0%NetIQ3

5.8%Epiphany4

1.9%NCR Teradata10

Coremetrics

Business Objects

SPSS

SAS Institute

Siebel Systems

Vendor

2.1%

3.1%

3.6%

12.7%

15.4%

% Share

9

8

6

2

1

Rank

Market Leader in Analytic Applications

for Sales, Service, and Marketing

Sources: IDC Vendor Rankings, Worldwide Customer Analytics Applications (2003), July 2004

Fastest Growing in BI Market

Siebel BI License Rev (U.S. $ Millions)2005 Revenue $120.3M

2003 20040

60

50

40

30

20

70

10

80

90

100

110

Oracle & Siebel in the BI “Tools” Marketplace

GARTNER COMMENTS ON THE SBA BI Platform

“Unlike other mega software vendors, Siebel's BI platform is application source independent and is, arguably, the best front end to a Teradata data warehouse.”

“Siebel Business Analytics is one of the more innovative and comprehensive sets of functionality among the BI platform vendors, including some advanced analysis and data-mining functionality and packaged industry-specific analytical applications.”

BI Platform acquired from nQuire Software in Nov 2001

Aerospace & Defense

Commercial Banks

Pharmaceutical

Computer Office Equip

Diversified Financials

Railroad

Medical Products & Equip

Telecommunications

Securities

Network & Comms Equip

Life & Health Insurance

5 of the top 6

4 of the top 5

8 of the top 9

6 of the top 9

3 of the top 4

3 of the top 4

3 of the top 6

5 of the top 6

3 of the top 6

2 of the top 4

3 of the top 5

Siebel Business Analytics History

So, the Opportunity for Us

Get in front of Cognos, Business Objects & Hyperion opportunities

Become #1 in the Business Intelligence marketplace in the next 18 months.

Expose SAP’s “black box” BI Applications story

The way we do it is by selling packaged BI Applications, built on the new Oracle BI Platform (SBA), for PeopleSoft, EBS, Siebel, & JDE customers.

Oracle BI Solutions

How do my campaigns impact call-handle time & cost to serve?

What impact does supplier performance have on customer satisfaction and revenue consistency?

Ser

vice

S

ervi

ce

Customers

Sal

esS

ales

Mar

keti

ng

Mar

keti

ng

Dis

trib

uti

on

Dis

trib

uti

on

Fin

ance

Fin

ance

HR

/ W

ork

forc

eH

R /

Wo

rkfo

rce

Op

erat

ion

sO

per

atio

ns

Pro

cure

men

tP

rocu

rem

ent

Customers

Customers

Suppliers

Suppliers

Suppliers

BI Applications are Almost Always Heterogeneous

In a Call Center, how does agent tenure, training, & compensation affect productivity & cross-selling?

Oracle BI Tools & Packaged BI Applications

Oracle Enterprise Business Intelligence Platform

Proactive Detection & Alerts

Interactive Dashboards

IntelligentCustomerInteraction

MobileAnalytics

Predictive Analytics

Ad-Hoc Analytics

Senior Executives

ManagersFront Line Employees

Partners

Oracle Enterprise Business Oracle Enterprise Business Intelligence Platform (EE)Intelligence Platform (EE)

• Next-generation, scalable enterprise BI platform

• Relevant and actionable insight for all users

• Complete, real-time intelligence across enterprise sources

• One common, fully-integrated modern web architecture

ETL & Business Adapters

Oracle Business Intelligence Oracle Business Intelligence ApplicationsApplications

• Comprehensive suite of prebuilt analytic applications

• For Siebel, SAP, PeopleSoft, Oracle, and other sources

• Based on industry and analytic best practices

• Enable rapid deployment, low TCO, & assured business value

SalesAnalytics

ServiceAnalytics

MarketingAnalytics

SupplyChain

Analytics

FinanceAnalytics

WorkforceAnalytics

PreBuilt Enterprise Business Model

Customer InteractionCustomer InteractionSystemsSystems

Operational SystemsOperational Systems

Sales & Mktg IVR SCMFin/HR Service Web Help Desk

Enterprise Data Warehouse

(EPM and/or SBA)

Existing Data Existing Data Warehouse & Warehouse &

Data Mart Data Mart SourcesSources

DW Design

Benefit from BI Applications while maintaining single BI architecture

Build from Scratchwith Traditional BI Tools BI Applications

Back-end ETL andMapping

Define Metrics& Dashboards

Training & Roll-out

Prebuilt ETL Business Adapters for Oracle, SAP, others

Prebuilt DW designAdaptable to your enterprise DW

Role-based dashboards and alerts Thousands of pre-defined metrics

Weeks or months

Pre-built ETL Tailoring

DW Design Mod

Specific Metrics& Dashboards

Training & Rollout

Quarters or Years

Faster deployment Lower TCO Assured business value

”“

Leverage Prebuilt Oracle BI Applications Proven Rapid Time To Value

Deployed to 800 users in under 90 daysFinance, Service & Sales Analytics (SAP/SEBL)

Live in 120 daysSales Analytics (SEBL)

4 months from decision to live for 1200 usersPharma Analytics (SEBL)

Live in 100 days, 9000+ usersFinance, Sales, Help Desk and Marketing Analytics (MSFT, SEBL)

Having had experience of Siebel Business Analytics, I can vouch that it can be deployed as rapidly as they

claim...It is a product that really delivers.

Deployed to 100+ users in 3 monthsFinance Analytics (Oracle EBS)

Dedicated Sales Force for NA

Susan CookGVP Sales

N. America BI

David NovakSales VP

CommercialERP/CRM/Tech

Duane CologneSales VP

NASA & PSERP/CRM/Tech

ChannelsOracle Direct

Sales Strategy

Adam DriverSC Director

N. America BI

John DudaSC Manager

Commercial BI

Scott HilnerSC ManagerNASA & PS

ROIEnablement

47 BI Sales Reps, 3 Channels, 15 OD, 2 Strategy/Comp Intell 44 BI Sales Consultants

Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential

Where’s the Gold: Scenario 1Oracle Apps, Custom DW, Incumbent BI

Likely Issues Solution

• Poor user adoption of operational applications and incumbent BI tools (which are separate UI’s)

• Integrated OBI apps drive adoption of EBS because the users get informational value from using EBS

• Not getting answers to key business questions; not exploiting the information in EBS

• OBI Apps likely deliver these answers and make it much easier to answer new questions

• Looking to upgrade the 3rd party BI tool = $$$ license costs and it’s a re-deployment

• It will likely cost the same or less to move to a more complete total solution with the OBI Apps

• Looking to upgrade EBS, may need to make large investments in the BI/DW upgrade

• This is painful. OBI Apps are clearly the lowest TCO option. Easy upgrades are just part of the equation.

• Don’t forget about the power of the tech stack integration when Oracle is the DW.

• If it’s an Oracle tech stack, your value prop just about doubled.

Characteristics

Oracle Apps Customer

Custom Data Warehouse

Some other BI tool on top

Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential

Where’s the Gold: Scenario 2Oracle Apps, No DW

Likely Issues Solution

• Do not have a true BI platform; operational reporting tools only allow for stop-gap, static reporting with little to no flexibility.

• OBI Apps require OBI EE, arguably the most advanced BI platform on the market.

• May have independent data marts that don’t allow cross-functional questions to be answered.

• OBI EE can “glue together” these independent data marts, leveraging these investments and allowing the toughest questions to get answered.

• Want a real Enterprise Data Warehouse but can’t afford to build it, or don’t have the time/knowledge/resources.

• OBI Apps include Enterprise Data Warehouse schemas that often implement in 90-120 days and cost a fraction of the build approach.

• Have user adoption and potentially data quality issues with EBS.

• Naturally, increasing the value of the information delivered to the end user will drive adoption of the operational application.

Characteristics

Oracle Apps Customer

NO Data Warehouse

Operational Reporting Tools Only

Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential

Where’s The Gold: Scenario 3New Prospect - Heavy Competition from SAP

Likely Issues Solution

• Probably believe SAP’s approach is more scalable and more robust than Oracle’s approach.

• We need to turn the tide on this perspective – SAP’s BI solution will simply NOT work in any environment other than SAP. Furthermore, it’s not cost effective except for a small number of users.

• Probably believe SAP BI solution is more seamlessly integrated into their ERP applications. They are very good at positioning this.

• The fact is, SAP BW is very limited in it’s usefulness to employees on the front-line. It provides solid information for financials, and is good for executives, but leaves all other employees wanting more.

• If they are already an SAP shop, but understand the limitations of BW, you can be sure they are looking at alternate BI vendors (not us).

• Oracle BI Applications are pre-packaged for SAP and are more robust than any others on the market due to the strength of the OBI EE platform.

Characteristics

Oracle Apps *Prospect*

Heavy Competition from SAP

Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential

Where’s The Gold: Scenario 4SEBL CRM, SEBL Analytics, ORCL Apps

Likely Issues Solution

• Are leveraging the power of an integrated CRM and BI solution with the Siebel deployment but have not yet realized those benefits with Oracle Applications.

• Easily extend their Siebel Analytics deployment by including the pre-packaged Oracle BI Applications for ERP – we can’t lose on the economics here.

• Are likely custom building data marts or data warehouse for their Oracle Applications and planning on using another BI technology with it.

• We need to find these immediately and convince them that the time-to-value on the build vs buy approach is a 5:1 ratio.

Characteristics

SEBL CRM

SEBL Analytics (OBI EE)

ORCL Apps

Copyright ©2006, Oracle. All rights reserved. Oracle & [customer] Confidential

Where’s The Gold: Scenario 5Oracle DW, Oracle Tech Shop, Incumbent BI

Likely Issues Solution

• Have a maintenance nightmare w/ existing BI technologies because of too many moving parts, un-integrated technologies, poor performance.

• These solutions do NOT manage change or upgrades well. They are “report-centric” architectures. Example: moving from BOBJ 6x to XI is a redeployment, not an upgrade.

• Want a tighter, more scalable interface b/w BI tools and Oracle DW

• Simple question: which BI platform is more tightly integrated with an Oracle DW – Oracle BI EE or anyone else? Same goes for the rest of the technology stack: Identity Mgmt, Portal, BPEL, etc.

• Can’t answer questions across different data sources (Oracle, Teradata, SQL, etc.)

• OBI EE is the technology leader in the ability to join across multiple data sources. It is also “arguably the best front end to a Teradata DW (Gartner)”.

• Can’t integrate BI tools with operational systems • OBI EE is 100% SOA and can be seamlessly integrated into existing UI’s and business processes.

Characteristics

Oracle DW Customer

Oracle Technology Shop

Incumbent BI Technology on Top