State of Technology Oracle ISM 611 Dr. Hamid Nemati 11/8/1999 Francis Andoh-Baidoo David S. Clark...

State of TechnologyState of TechnologyOracle

ISM 611Dr. Hamid Nemati11/8/1999

Francis Andoh-BaidooDavid S. ClarkDaniel B. MadejaPhillip PlanesKevin Thompson

Francis Andoh-BaidooDavid S. ClarkDaniel B. MadejaPhillip PlanesKevin Thompson

Oracle Corporation Oracle Corporation OverviewOverview

Oracle Corporation Oracle Corporation OverviewOverview

Founded in 1977

$9.1 billion in revenue for Q1 2000

Second largest application software company

Largest database software company

Operations in 145+ countries

Over 43,000 employees

RevenueRevenue $2.0 B 13%$2.0 B 13%

Net IncomeNet Income $237M 21%$237M 21%

EPSEPS $0.16 vs. $0.13 $0.16 vs. $0.13

Pretax MarginPretax Margin 22.6% vs. 20.5%22.6% vs. 20.5%

Q1 Fiscal 2000Q1 Fiscal 2000Q1 Fiscal 2000Q1 Fiscal 2000

Oracle CorporationOracle CorporationOracle CorporationOracle CorporationQ1 FY00 Revenue Highlights

TotalTotalRevenue Revenue Up 13%Up 13%

Geographic Geographic Revenue Revenue GrowthGrowth

License and Other Revenue License and Other Revenue Up 9%Up 9%

Service Revenue Service Revenue Up 16%Up 16%

Americas Americas Up 12% (LC 14%)Up 12% (LC 14%)

Asia Pacific Asia Pacific up 34% (LC 18%)up 34% (LC 18%)

Europe / Middle East / Africa Europe / Middle East / Africa Up 9% (LC 13%)Up 9% (LC 13%)

Revenue DistributionRevenue DistributionRevenue DistributionRevenue DistributionQ1 Fiscal Year 2000

Consultingand

Education32%

Product Revenues68%

Total Revenue $9.1 Billion

Americas Americas 59%59%

EMEAEMEA33%33%

Asia PacificAsia Pacific10%10%

Q1 Fiscal Year 2000Geographic DistributionGeographic DistributionGeographic DistributionGeographic Distribution

Oracle’s Two BusinessesOracle’s Two BusinessesOracle’s Two BusinessesOracle’s Two Businesses

Q1 FY00 Y-Y

$6.6 B 19%

$2.5 B 25%Applications

Database

Total $9.1 B 20 %

Oracle Leads 5:1 in UNIX ...Oracle Leads 5:1 in UNIX ...Oracle Leads 5:1 in UNIX ...Oracle Leads 5:1 in UNIX ...

Others8%

Sybase7%

Informix13%

Oracle 61%

IBM7%

NCR4%

Source: Dataquest, March 1999

1998 RDBMS Market Share on Unix

Database Growth Database Growth OpportunitiesOpportunities

Database Growth Database Growth OpportunitiesOpportunities

– E-business

– Data Warehousing

– Packaged Applications

– Release of 8i

– Middle Market

Nearly 2/3 of Fortune 100 Rely Nearly 2/3 of Fortune 100 Rely on Oracle for E-Commerceon Oracle for E-Commerce

Others36%Oracle

64%

Source: Collaborative Research 1999

Data WarehouseData WarehouseData WarehouseData Warehouse

Source: IDC, 1998

Ora

cle

IBM

Mic

roso

ft SAS

Ter

adat

a

0

100

200

300

400

500

600

Revenue($M)

OracleIBMMicrosoftSASTeradata

1997 WW Data Warehouse Data Management Revenue by Vendor

Oracle #1 in e-businessOracle #1 in e-businessOracle #1 in e-businessOracle #1 in e-business

100% pure internet ERP applications100% pure internet CRM applications100% pure internet database100% pure internet development tools

The only company with:

“If the Internet turns out not to be the future of computing, we’re toast. But if it is, we’re golden.”

Lawrence J. Ellison, Chairman and CEO of Oracle

Oracle & e-BusinessOracle & e-Business

New Model for BusinessBased on the InternetNot just e-CommerceComponents of e-Business:

– Internet Platform– Enterprise-class Business Applications– Services to Implement, Support and Manage

Oracle’s Internet PlatformOracle’s Internet Platform

Centered on Oracle 8i Built-in Java Virtual Machine Oracle Internet File System Oracle interMedia Development Tools

– Jdeveloper– WebDB

Oracle Application Server Oracle 8i Lite

Oracle ApplicationsOracle Applications

Customer Relationship Management ERP Procurement Self-Service Applications Financial Applications Human Resources Strategic Enterprise Management Applications

Application Service ProvidersApplication Service Providers

Software is becoming a service ISP’s + ISV’s = ASP Oracle’s Business Online (world’s largest) Benefits of ASP’s

– No local infrastructure / resources required– Predictable Costs– Service Expertise– Automatic Upgrades– Data Back-Up

Oracle’s Service OrganizationsOracle’s Service Organizations

• Oracle Consulting

• Oracle Education

• Oracle Support

Services

Oracle ConsultingOracle Consulting

• Leverages Oracle’s knowledge to develop individual business solutions

• Wide range of business solutions:

• expand markets by identifying new customers, creating new offerings, and extending the supply chain

• improve efficiencies by automating the value delivery chain, lowering channel costs, and improving productivity

• identify and retain profitable customers, build brand loyalty, and enhance customer service

• design and implement a comprehensive data warehousing solution

Oracle EducationOracle Education

• World’s second-largest IT training provider, with offices in more than 60 countries

• Offered training services:• instructor-led training• interactive distance learning• network-based training• computer-based CD-ROM courses• in-depth seminars• customized classes• training needs assessment

• Certification programs

• Organizational Change Management

Oracle Support Services (OSS)Oracle Support Services (OSS)

• Industry’s leading provider of support for information management systems

• More than 3,000 professionals support over 120,000 customers

• Support around-the-clock, seven days a week, worldwide, and for any given product

• Customers can choose between web-based support, phone support, on-site support, and large systems support

• Different comprehensive support options are available to meet individual requirements

Oracle’s MetaLink 2.0Oracle’s MetaLink 2.0

• A “change in Oracle’s support paradigm”

• MetaLink 2.0 is an Internet Support Tool

• Internet as a medium to deliver quality, personalized and timely customer service

• Provides end-users with personalized, flexible self-service options

• Allows end-users to log and update technical assistance requests (TARs) online, receive product updates and information tailored to their individual needs, and download solutions

Oracle’s MetaLink 2.0 (cont.)Oracle’s MetaLink 2.0 (cont.)

• Empowers customers to prevent, analyze and solve problems with the same information sources used inside Oracle

• More than 180,000 customers use MetaLink

• Site is managed by more than 200 Oracle engineers that provide timely posting and updating of technical data

Oracle WarehouseOracle WarehouseComprehensive Set of Products

Designer and Enterprise ManagerDesigner and Enterprise Manager

CWM and Repository

WarehouseBuilder

WarehouseBuilder

ApplicationServer

ApplicationServerERP

Data

ExternalData

OperationalData

Express

Discoverer

Reports

Oracle8iDarwin

Oracle Business Intelligence

Oracle 8i

Source: Oracle, Darwin-Overview-WHT97.ppt

Oracle8iOracle8i

Internet EnabledScalable (with data and users)Fast querying capabilityPartitioning and “rolling windows”

Warehouse Builder 2.0Warehouse Builder 2.0

Fast implementationDesign, generation and loadingWritten completely in JavaGraphical and wizard drivenTightly integrated with Oracle8i

Common Warehouse Common Warehouse MetadataMetadata

Enables interoperability among vendor tools

Internet ready:– Uses Java programming language– XML for import/export– UML as modeling language

Application Program Interface

Data Mart Suite 2.0Data Mart Suite 2.0

Data Mart Designer 2.1Data Mart Builder 2.0Oracle8 - Enterprise EditionEnterprise Manager 1.5Oracle Discoverer 3.1Webb App ServerReports and Reports Server 3.0

OLAP Tool:

Oracle Express Server

Distributed over Web

Integrates with DBMS

Big picture and detail

Maintains high levels of

data integrity

Integration with popular

tools

Scalability

Backed with Oracle’s

experience

Analytical functions

Oracle Business IntelligenceOracle Business Intelligence

Darwin


Enterprise ManagerEnterprise Manager

Business Intelligence LevelsBusiness Intelligence Levels

Corporate Data

Analytical Tools Used

Bottom-UpMethodology

HiddenData Mining for classification, clustering, and predictions

Shallow Statistical & OLAPfor summaries, analysis, & forecasting

Top-DownMethodology

Surface SQL (Structured Query Language) for simple queries and reporting


Data MiningData Mining

Source: Oracle - Darwin Multimedia Presentation - www.oracle.com

Oracle Oracle DarwinDarwin

June 1999 - To improve data June 1999 - To improve data mining capability, Oraclemining capability, Oraclepurchases Darwin frompurchases Darwin from

Thinking Machines CorporationThinking Machines Corporation

Enterprise-wide Data Mining Enterprise-wide Data Mining Software - DarwinSoftware - Darwin

Intuitive GUI

“Wizards” to guide and automate

Powerful, scalable, parallel UNIX server

MS Excel integration

Client: Windows

Servers: – Sun Solaris– HP-UX– Windows NT (Release 4.0)

Power and Ease of Use


Data ManagementData Management

Access data– Data warehouses– Relational databases

(ODBC)– Support for SQL queries– SAS files– Flat files

Prepare data– sampling– randomization– computed fields– append, merge, select,

project, explode data– replace and set form


Model BuildingModel Building Classification & Regression Trees (C&RT)

– Classification and prediction of binary, multiclass, and continuous variables

– Decrease functions: gini and entropy

– Prune functions: cost and gini

Neural Networks– Classification and prediction of binary, multiclass, and continuous variables

– Activation functions: sigmoid, hypertangent, and linear

– Training algorithms: conjugate gradient, modified Newton, steepest descent, backpropagation, and genetic algorithm for optimizing neural networks

k-Nearest Neighbors (Memory-Based Reasoning)– Trainable k-Nearest Neighbors approach

– Classification and prediction of binary, multiclass, and continuous variables

– User-definable weights for input fields

Clustering– k-means

– Interactive graphics

++

+

+

+ +

++

---

-

- -

--

Induction TreeTree

?

++

+

+

+ +

++

---

-

- -

--

Neural NetsNet

?

++

+

+

+ +

++

---

-

- -

--

k-Nearest NeighborsMatch

?

ClusteringCluster

?? ?

???

? ??

?? ?

??? ??


Number of ProcessorsDarwin Module 1 2 4 8Tree 1 1.93 3.80 6.30Net 1 1.92 3.36 7.37Match (train) 1 2.00 4.04 7.97

Number of CPUs running in parallel

Per

form

ance

Sp

eed

-Up

1

2

3

4

5

6

7

8

1 2 3 4 5 6 7 8 9

Tree

Net

Match(train)

Linear Scalability

Data Size

Mo

del

Acc

ura

cy

Small Large

Lo

w

Hig

h

Enterprise-wide Data Mining Enterprise-wide Data Mining SoftwareSoftware

Scalable, Parallel Performance and Model Accuracy


New Features in Darwin New Features in Darwin Release 3.5Release 3.5

Data import wizard– Databases– Text

Missing value treatment wizard

Model Seeker Computed fields Tree display Key fields wizard Multi-model

comparison Lift charts for Tree

Editable workflow More...

Cumulative Targets vs. Percent of Population

Cu

mu

lati

ve T

arg

ets


Source: Oracle, 35New-40preview97.ppt

Darwin Release 3.5 New Darwin Release 3.5 New FeaturesFeatures

Editable WorkflowEditable Workflow

Interactive means of querying workflow objects

Ability to edit workflow


Clustering wizard– k-means

ODBC write-back to the database


Cumulative Targets vs. Percent of Population

Cu

mu

lati

ve

Tar

get

s


Windows NT & UNIX servers Native database access Faster algorithms Better parallelism Enhanced clustering


Benefits SummaryBenefits Summary Understand customer

behavior– Who is likely to churn?– What are the profiles of

my customers?– What is my expected

profitability?– Where are my best retention

and cross-sell opportunities?

Mine more data, faster

Build better models

Generate business intelligence

Improve customer relationship management


AnyAnyQuestions ??Questions ??

??

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