best practices brochure

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Oracle Corporation

World Headquarters

500 Oracle Parkway

edwood Shores,

CA 94065

USA

Worldwide Inquiries

Phone+1.650.506.7000

+1.800.ORCLE1

oracle.com

BEST PRACTICES PROGRAM


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instances into one. From 2004 until January 2008, Oracle ran our E-Business Suite in the GSI model at a costsavings o between US$1 billion and US$2 billion dollars annually in the rst ew years and achieving closer to aUS$3 billion dollar savings in the last year.

In January 2008, Oracle successully executed a three-pronged project which involved upgrading our existing GSIinstance rom Oracle E-Business Suite 11i to Oracle E-Business Suite 12, implementing a new Siebel CRM 8.0global CRM instance, and implementing a new global corporate data warehouse leveraging Oracle BusinessIntelligence.

Oracles upgrade to Oracle E-Business Suite 12 was straightorward, with the notable exceptionthat we split theCRM unction out rom the instance. We kept our ERP unctions running on the E-Business Suite and moved ourCRM unction to a new Siebel instance. Although the company could have continued to run exclusively on OracleE-Business Suite applications, it chose to take advantage o its agship Siebel CRM product. oday, all the leadprocessing, partner management, opportunity management, sales orecasting, territory management, campaignmanagement, and marketing are done with Oracles Siebel products. When an opportunity becomes a quote, acontract, or an order, it ows into Oracle E-Business Suite unctional applications, where it joins the rest o Oraclesglobal enterprise resource planning (ERP) systems, including the general ledger.

THE STRATEGIC ROLE OF IT IN DRIVING CORPORATE SUCCESS

Bret Fuller

Introduction

Oracle has achieved amazing business results through business process improvement and leveraging our own soware. Te Oracle ransormation started in 1999,when Oracle announced plans to implement a Global Single Instance (GSI) o the E-Business Suite applications to run its worldwide operations. As the companyreaped benets in eciency and cost savings, the transormation served as a guide or and a ellowship with customers that were also challenged with the efects o

doing business globally and integrating acquisitions quickly and cost-efectively. Te GSI project was completed in 2004 and consolidated over 70 separate nancial

Although Oracles E-Business Suite and Siebel CRM unctionality were similar, Oracle chose to run the Siebel products. Tis decision drove global process stan-dardization across the sales, marketing, and partner organizations, allowing Oracle to eliminate a number o systems that had been maintained despite the pushtoward process simplication and standardization.

Oracles internal implementation is the worlds largest implementation o Siebel CRM 8 to date. As well, Oracles internal implementation o Oracle BusinessIntelligence Applications 7.9.1 or Siebel CRM 8 content and the July 2008 implementation o Oracle Business Intelligence Applications 7.9.4 or OracleE-Business Suite 12 ERP content is the worlds largest implementation to date. In this way, Oracle is gaining valuable insights that allow it to truly understand itscustomers needs and collaborate with them as they move orward in their own business evolutions.

Oracle Business Intelligence Suite (OBI) is used by the Siebel CRM system or reporting, and Oracle has leveraged the business intelligence implementationrequired by the CRM system to create a single, global platorm or the corporate data warehouse and extended the data warehouse to include ERP data rom theOracle E-Business Suite.

Within Oracle, I plays a critical role in Oracles product development cycle. We are an early adopter o our products, taking new releases o Oracles Applications,Application Server, and Database and implementing them, and their new unctions (within Oracle) beore our customers do, in order to validate them.

I, in conjunction with our internal business and development partners, has developed and improved many internal I processes over time. Tese processes allowus to move and improve at an unbelievable rate. Tese processes have helped us to become a true world-class I operation.

Tis brochure will give you an overview o what Oracle has accomplished as a Corporation and how we actually accomplished it. We gain signicant experiencewhen we use our own soware to run our business. In addition when we share best practices and the lessons we have learned, our customers benet with increasedreturns on their Oracle investments. We believe this inormation will help you maximize your return on the investment you have made in Oracle products.

Finally, we always welcome eedback rom ellow customers. Please do not hesitate to contact us with questions or input at [email protected]. Wehope that you will be able to leverage much o the inormation in this second ormal edition o Oracle@Oracle!

Sincerely,

Bret FullerSenior Vice President, Oracle@Oracle Best Practices Program, Oracle Corporation


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LIS OF OPICS

Strategic Role o I...................................................................................................................................................................................................................................................................................................................................

Best Practices ..............................................................................................................................................................................................................................................................................................................................................

Contact Email Address at Oracle.........................................................................................................................................................................................................................................................................................................

Oracle@Oracle ..........................................................................................................................................................................................................................................................................................................................................

How I is Organized ...............................................................................................................................................................................................................................................................................................................................

I Roles .......................................................................................................................................................................................................................................................................................................................................................

I Priorities ................................................................................................................................................................................................................................................................................................................................................

Early Adopter Role ...................................................................................................................................................................................................................................................................................................................................

Global Single Instance (GSI) ................................................................................................................................................................................................................................................................................................................

Consolidation Story (ER P)....................................................................................................................................................................................................................................................................................................................

Why Consolidate.......................................................................................................................................................................................................................................................................................................................................

Consolidation ypes.................................................................................................................................................................................................................................................................................................................................

Oracle Pre Consolidation (ERP) .......................................................................................................................................................................................................................................................................................................10

Te GSI Consolidation Program.......................................................................................................................................................................................................................................................................................................10

Oracle Post Consolidation (ERP) .....................................................................................................................................................................................................................................................................................................10

Benefts o Consolidation (ERP) .......................................................................................................................................................................................................................................................................................................11

Visibility, Accountability, Security .....................................................................................................................................................................................................................................................................................................12Keys to Success (ERP)..........................................................................................................................................................................................................................................................................................................................12

Why Implement Siebel CRM..............................................................................................................................................................................................................................................................................................................13

Business Benefts (CRM).....................................................................................................................................................................................................................................................................................................................14

Governance and Best Practices (CRM)...........................................................................................................................................................................................................................................................................................15

Keys to Success (CRM)........................................................................................................................................................................................................................................................................................................................16

Approach to Enterprise Reporting .....................................................................................................................................................................................................................................................................................................17

Pre and Post Implementation (Reporting) .....................................................................................................................................................................................................................................................................................17

ransparency & Collaboration ..........................................................................................................................................................................................................................................................................................................18

Roles & Responsibilities (Reporting) ...............................................................................................................................................................................................................................................................................................18

Key Elements o Enterprise Reporting..............................................................................................................................................................................................................................................................................................19

Key Business Drivers or Enterprise Reporting..............................................................................................................................................................................................................................................................................19

Architecture (ERP) ...............................................................................................................................................................................................................................................................................................................................20

Business Continuity and Disaster Recovery ....................................................................................................................................................................................................................................................................................21Architecture (CRM). .............................................................................................................................................................................................................................................................................................................................22

Architecture (Corporate Data Warehouse) ....................................................................................................................................................................................................................................................................................23

Change Management............................................................................................................................................................................................................................................................................................................................24

Support Policy.........................................................................................................................................................................................................................................................................................................................................24

Capacity Planning.................................................................................................................................................................................................................................................................................................................................25

Load Balancing & Failover.................................................................................................................................................................................................................................................................................................................25

Perormance Management..................................................................................................................................................................................................................................................................................................................25

Regulatory Compliance........................................................................................................................................................................................................................................................................................................................26

Compliance Approach..........................................................................................................................................................................................................................................................................................................................26

Mergers & Acquisitions ........................................................................................................................................................................................................................................................................................................................27

Recommendations or M&A...............................................................................................................................................................................................................................................................................................................28

Acquired Companies .............................................................................................................................................................................................................................................................................................................................28

Partnering with the Business ...............................................................................................................................................................................................................................................................................................................29

Global Process Owner...........................................................................................................................................................................................................................................................................................................................29

Program & Project Management .......................................................................................................................................................................................................................................................................................................29

Project ypes ...........................................................................................................................................................................................................................................................................................................................................29

Project Methodology .............................................................................................................................................................................................................................................................................................................................30

Sarbanes-Oxley....................................................................................................................................................................................................................................................................................................................................... 30

Enterprise Planning...............................................................................................................................................................................................................................................................................................................................31

Keys to Success (Planning) .................................................................................................................................................................................................................................................................................................................32


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THE STRATEGIC ROLE OF IT IN DRIVING CORPORATE SUCCESS

Best Practices rom Oracle I

odays business world is an ever-changing environmen o increasing complexiy and challenges, requiring corporaions o build agiliy and

exibiliy ino heir I inrasrucure o swily adap o changes in he markeplace. Inormaion echnology in general and EnerpriseApplicaions in paricular, are major keys o a companys success. Oracle Corporaion has achieved enormous benes wih EnerpriseApplicaions. Oracles I division is responsible or running Oracles inernal business applicaions and is a key componen in driving successhroughou Oracle.

Oracle@Oracle summarizes Oracle Corporations experience rom its internal deployment o its own products.It is intended to help customers maximize the value o their investment in Oracle products.

Is key iniiaives include he consolidaion o sysems, sandardizaion o business processes, he move o shared services, and securiy andcorporae compliance. Tese iniiaives are delivered wihin an environmen ha consanly demands ha I do more wih less.

Wih he recen 2008 implemenaion o Oracles Siebel CM suie, Oracle has moved oward more o a bes o breed approach wihin I andour experiences o implemening our producs becomes even more perinen o a wider range o our cusomers.

Oracle is a ruly global company wih global business unis operaing across more han 70 subsidiaries and we operae global inrasrucure osuppor our operaions, including local legal consideraions. Oracle sared he globalizaion process over 14 years ago and has accumulaed avariey o proven bes pracices during his period.

Te Oracle@Oracle series o aricles illusraes how I operaes and execues is role wihin Oracle in working wih he business unis o makeOracle a world-class company, providing he bes reurn o he Corporaion and ensuring ha Oracle is ready or any se o challenges. We believehis experience wil l assis Oracles cusomers o improve heir operaions and successully compee in odays challenging business world.

Tis brochure includes:

About Oracle@Oracle . Te role o he Oracle@Oracle Bes Pracices program, he role I plays, how I is organized, and Is prioriies wihinOracle.

Is Early Adopter Role. Is role wih Oracle Produc Developmen (Applicaions, Applicaion Server, and Daabase) managing upgrades andreleases.

Te Global Single Instance Philosophy. Te philosophy and approach o consolidaion, simplicaion and sandardizaion wihin Oracle.

Te Oracle Global Consolidation Story. How Oracle achieved moving o a Global Single Insance, which resuled in a rue inormaion sysemand signican savings.

Te Siebel CRM Implementation at Oracle. How Oracle implemened he Siebel CM suie and moved o global processes or Sales,

Markeing and Alliances & Channels.

Enterprise Reporting at Oracle. How Oracle implemened a Global Daa Warehouse o suppor consolidaed Enerprise-wide reporing andprovide a single cohesive business view o suppor decision-making.

Oracles Architecture. How Oracle has archieced is own producion insances o suppor use o is own producs and he business coninuiyand disaser recovery pracices.


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Operational Best Practices within Oracle I. How Oracles operaions and processes suppor he usage o is own producs. Tis includesChange Managemen, I Suppor Policies, Capaciy Planning, Load Balancing & Failover and Perormance Managemen.

Corporate Governance and Compliance. How I addressed Sarbanes-Oxley (SOX) and how our sandardizaion o processes helped achievecompliance.

Handling Mergers and Acquisitions. How I approaches he inegraion o acquired companies and how our consolidaion has simplied hisask.

Partnering with the Business. How I works and prioriizes wih he business - he Global Process Owner (GPO)/Global Soluion Owner(GSO) model.

Program and Project Management. Te I mehodology o manage divisional projecs and programs. Tis secion includes examples o hownew producs are implemened and deails experiences wih specic projecs.

More Inormation

Conac [email protected] more inormaion abou Oracle@Oracle bes pracices.

ABOUT ORACLE@ORACLE

Te Oracle@Oracle Bes Pracices group has been esablished o pu dedicaed resources ino promoing wha Oracle has underaken inernallyin implemening is own producs. Tis includes sharing bes pracices, sraegies, he benes achieved and he key success acors rom heimplemenaion and upgrade experience we have gained wihin our inernal I uncions. Te objecive is o bring experience and insigh o hecusomer inuencing process by supporing he sales, markeing and consuling cycles, by bringing Oracles cusomers in direc conac wih heemployees who have implemened Oracles producs, and using his knowledge o help hem wih heir own implemenaion or upgradeprograms.
mailto:[email protected]:[email protected]


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ABOUT IT WITHIN ORACLE

How We Are Organized

Inormaion echnology wihin Oracle is organized wihinhree disinc groups.

Applicaions I (AI). Implemens and suppors Oraclesapplicaion soluions ha allow Oracle o run is business.Te soluion is chiey comprised o he Oracle E-BusinessSuie and he Oracle Siebel CM Suie, along wih limiedexensions and bespoke applicaions and hird-pary soware.All o our applicaions run on Oracle Fusion Midldleware andOracles Daabase.

Global I (GI). esponsible or providing he inrasrucure,neworks, deskops and Global Helpdesk required or Oracleo run is business. Tis includes he award winning ier IVDaa Ceners ha provide he availabiliy, securiy and peror-

mance or Oracle and is hosed cusomers.

Produc Developmen I (PDI). Implemens and supporsOracles email, calendar and conerencing applicaion soluions ha allow Oracle o communicae. Tis includes Oracle Beehive, which providesenerprise class messaging and collaboraion applicaions.

Te raionale behind he I srucure wihin Oracle is or each I group o work closely wihin is paren organizaion o leverage our experienceand o improve he cusomer experience. AI and PDI are wihin Produc Developmen o work closely wih developmen o enhance ourapplicaions producs or our cusomers. GI is posiioned wihin Suppor or he Synergies wih he On-Demand hosing provision ha heSuppor organizaions provide o Oracle cusomers.

I Roles

In supporing Oracle, I perorms a number o diferen roles:

We deliver business solutions o our business parners across Oracle. We also enable and drive business process improvemens by parneringwih he Business and Developmen groups and by execuing direcives rom Execuive Managemen.

We are an early adopter o Oracles producs, aking new releases o Oracles Applicaions, Applicaions Server, and Daabase and implemeninghem wihin Oracle o improve he producs or our cusomers.

We ensure that Oracle complies wih is Corporae Governance and securiy obligaions.

We support Corporae Iniiaives and Mergers and Acquisiions.

We showcase Oracles Producs or our cusomers via he Oracle@Oracle Bes Pracices program o leverage our inernal experience or ourcusomers.

We continually aim to consolidate and simpliy operations and instances across Oracle and maximize he reurn o Oracle across all Lines oBusiness (LOBs).


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I Priorities

Ongoing Business and Production Support1. . Ensuring Oracles business can operae as efecively as possible, uilizing he applicaionsoluions o ulll heir business objecives and obligaions. Producion suppor includes he managemen o day-o-day service requess, aswell as proacive sysem mainenance and improvemens.

Corporate Governance, Compliance, and Security2. . Ensuring Oracle applicaion environmens are managed in accordance wih ourdocumened conrols and processes o mee our obligaions or SOX, or our Inernal and Exernal Audiors, and or oher governancerelaed groups, such as our Global Inormaion Securiy Division.

Mergers and Acquisitions Support3. . Parnering wih he Corporae Developmen Division o ensure ha we swily inegrae acquiredcompanies ino Oracle o mee ax and legal guidelines. Our mission is o inegrae all acquired eniies ino Oracles global operaions asquickly and seamlessly as possible.

Quality A ssurance/Feedback/Early Adopter or Development4. . Our goal is o implemen relevan new produc releases and uncionaliyimmediaely upon release, o ensure ha he producs and uncionaliy are used in our producion environmen beore hey are used in anycusomer producion environmen. We leverage he early adoper program o resolve poenial issues wih he Developmen organizaionsbeore hey have he opporuniy o afec our cusomers. Applicaions I and Produc Developmen I repor ino Oracles ProducDevelopmen organizaion, which suppors ormal eedback on our producs direcly ino he developmen groups responsible or building

producs. Te early adoper role involves implemening new producs, new releases o exising producs, new eaures, pach ses, securiyupdaes, and bug xes.

Project and Process Work5. . We work wih our inernal business parners o provide hem wih soluions o suppor he atainmen o heirbusiness objecives. In addiion, we prioriize our work across he diferen business groups wihin Oracle o provide he larges eurn onInvesmen (OI) o Oracle, as a whole.

IS EARLY ADOPER ROLE

As oulined in I Prioriy 4, a Oracle, he I Division is an inegral par o he Produc Developmen Division. We work closely wih he produc

engineers o ensure ha he released producs are o he highes possible qualiy beore Oracle Cusomers implemen hem. We do his in heollowing ways:

Sharing Insances. Being a large muli-naional company ha runs on a Global Single Insance model, we have he daa and environmen ha1.provides a very efecive proving ground or our producs. Large simulaed es environmens will never be able o compleely simulaeproducion daa ha has exised or many years wih a variey o complex ransacions. For signican releases, we use a copy o ourproducion environmen, work wih Produc Developmen, perorm numerous upgrade and produc ess o ensure ha new versions o ourproducs are easy o upgrade o, and will work well in our cusomers environmens.

unning Business Scenarios. We parner wih he Produc Developmen groups o es our business scenarios on he upgraded environ-2.mens o veriy ha he new uncionaliy o he applicaions/daabase has no unexpecedly afeced how we ran he applicaions on a priorrelease. We also use hese ess o veriy ha here isn any perormance degregaion or oher issues wih he daabase version we arecurrenly using. Any issues ound are addressed o ensure ha our cusomers have an excellen ownership experience wih he new release.

An example o how we operae can be illusraed wih he release o version 11i.10 o he E-Business Suie. Te release was made available onNovember 1, 2004. Wihin seven weeks o he release, we had upgraded our producion Global Single Insance and were running our globaloperaions on he new release. In parallel wih he applicaions upgrade, we also upgraded our GSI insance o he 10G version o he daabase.Despie he aggressive schedule, all projec daes were me on ime and wihou any disrupion o Oracles business operaions.


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A Oracle, as an Enerprise Inormaion company we say as curren as possible wih he laes versions o soware. Tis no only allows us oensure ha he releases we provide o our cusomers are veried in our own producion environmen, bu i also ensures ha we are able oreceive he benes o leveraging he ull breah o he uncionaliy. Finally, by keeping curren, we are in a much beter posiion o receive hebes suppor possible rom Oracle. Oracle recommends ha cusomers keep curren in erms o he versions o Oracle soware hey are runningIn general, his means ha cusomers should be running one o he laes wo releases o any given soware. We leverage he experience we gaino improve he produc and he upgrade experience. We also use his knowledge o assis wih improving our cusomers abiliy o ake he laesreleases o upgrade heir own environmens.

In addiion, our aggressive approach o implemening new releases o our soware allows us o se expecaions wih he Oracle business unis.Tey know ha hey wil l receive he laes produc eaures on a regular cycle and can work wih I o ensure ha hey can leverage he neweaures o each release or pach se as quickly as possible. Tis helps improve he agiliy o heir business and heir responsiveness o changes inhe markeplace.

In many companies, even soware companies, he I uncion does no regularly upgrade o he laes releases o heir enerprise sowaresoluions. Tis means ha hey periodically have a large and cosly muli-monh or muli-year projec o move rom one soware release o henex. In hese cases, no only are he benes lised above no achieved, here is also disconinuiy in he business and a slowness o adap sysemsand business processes o he needs o he company. I also increases he endency o make cusom xes o he code due o he long wai beweennew releases. Tis in urn hen makes he upgrades more cosly o progress since he cusom xes have o be modied o be upgraded, which in

urn leads o increased suppor and mainenance coss.

Being within Product Development allows us to leverage the experience we gained, not only to improvethe product and the upgrade, but also to use this knowledge to assist with improving our customers user experience.

At Oracle we look to implement the latest releases when they are ready and plan or these up to a year in advance, pending confrmation o

release dates. We handle this not only at the Application product level, but also in terms o releases to the Application Server and the Databaseproducts. Tis provides us with a regular schedule o improvements to our production systems and a very active showcase or our products to

our customers.

Applicaion I (AI) has been perorming applicaions upgrades across Oracle or many years and now has a rened model and approach oreach upgrade [see he Program and Projec Managemen secion].

Te approach provides muliple benes o Oracle, including:

Repeatable Process1. . Having a repeaable process has allowed our business users o become amiliar wih he process, heir expecaionshave been se and hey are in aligned wih I.

Upgrades Are Delivered On ime2. . A repeaable process coordinaed wih he business users ensures ha upgrades are delivered on ime.

Managed Risk and Issues3. . Our repeaable process also allows us o minimize he risk o issues and hence improve he qualiy o he deliv-ered release. Similarly, we look o pach our environmens on a regular basis and have a se patern o releases (we call hem bundles) on amore granular level. Tis schedule avoids our quarer end periods where our environmens are rozen or audi conrol purposes. We plan

our ouages o ake ino accoun as many o he scheduling aspecs o our company as possible o minimize he downime o our business ona global basis.


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THE GLOBAL SINGLE INSTANCE PHILOSOPHY

Why Consolidate and Go Global?

THE ORACLE GLOBAL CONSOLIDATION STORY

Alhough Oracle has now become somewha o a bes o breed I companyand moved rom a global single insance (GSI) o he Oracle E-Business Suie, oseparae insances or he EP applicaions on he E-Business Suie and CMapplicaions on he Siebel CM Suie. Tis sill reconciles wih Oracles

philosophy on he benes o a single consolidaed insance and does noconravene he principle behind he GSI.

Oracle has Global Single Insances by uncion and/or produc line. We haveseparae insances or Email, EP sysems (on he E-Business Suie), CRM Systems(on Oracles Siebel producs) and or our exernal Suppor sysems. Te EP andCM insances could have coninued o run exclusively on he E-Business Suie,however Oracle chose o promoe is agship Siebel CM produc and also oshowcase he upgrade pah rom Oracles EP and CM applicaions o Fusion.

Jus prior o 2000, Oracle embarked on a journey o consolidae all is producion Enerprise esource Planning (EP) and Cusomer elaion-ship (CM) sysems o a Global Single Insance (GSI). Oracles old model o separae, geographically based sysems simply could no providehe Corporaion wih he inormaion i needed o run is business. For example, i was no possible o deermine how many people are employedby Oracle or undersand how much o wha produc Oracle sold wihou waiing or a period o close and consolidaing he inormaion. oday,we have real ime access o answer hese and many oher quesions immediaely.

Consolidation ypes

Te key underlying value o consolidaion is he Inormaion. I is also abou improving ser vice and reducing coss (hardware, aciliies and head-coun coss), bu essenially he key driver is inormaion, gaining real ime access o inormaion, improving he qualiy o he inormaion, andhe availabiliy and access o he inormaion. A corporaion in odays markeplace canno underesimae he value o accurae, consisen, imelyand meaningul inormaion.

Tere are basically our levels, or ypes, o consolidaion. Addiional benes are achieved wih each addiional level o consolidaion. Oracleencourages is cusomers o consolidae as much as possible or heir business.

Data Center (Hardware and System Services) Level1. . Consolidaing separae daabase insances ino a single Daa Cener (eiher regionalor global), as well as consolidaing servers and moving rom muliple domains o a single domain. Te key benes o his level are reducedaciliy and headcoun coss or sysems adminisraion, along wih beter sysem service and availabiliy. Tis level allows superior DaaCener services a a signicanly reduced cos.

Te Soware and Database Level2. . Once Daa Cener operaions have consolidaed, he insances (DBs) and applicaions in ha Daa

Cener can be consolidaed. Te key benes o his level are improved access and beter inormaion rom your daa.

Te Business Process Level3. . Consolidaing o a single global se o business processes across he business globally. Agreeing upon globalprocesses allows you o consolidae he sysems involved wih hose processes ino a combined insance. Te key benes o his level areaccurae comparisons o daa across all l ines o business, reduced processing and ransacion coss, and an increased abiliy o leverage bespracices across he company.

Te Shared Services and Process Administration Level4. . Once global processes have been esablished, you can implemen he nal levelo consolidaion. Tis is consolidaing he services o manage and conrol he business processes. Te key benes o his level are a urher

Te benes and advanages o Oracle rom consolidaion as oulined in he ollowing secion mean ha wherever possible Oracle seeks oconsolidae insances globally.


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Oracle: Pre Consolidation

A he sar o he Consolidaion Program, Oracle looked signicanlydiferen o how i does oday. We were a counry/regional cenricCorporaion ha had muliple Daa Ceners, muliple daabases andmuliple environmens o suppor he producion insances. We had avariey o applicaions deployed on a variey o plaorms and operaingsysems. We also had inconsisen usage o he applicaions, diferenbusiness pracices overseen by muliple I suppor groups and ouremphasis was ransacion-based, as opposed o inormaion-based sysems.In summary, our daa was compleely ragmened and i was almosimpossible o obain accurae, consisen, imely, and meaningulinormaion.

Te GSI Consolidation Program

When Oracle sared is Global Single Insance (GSI) Consolidaion Program, i had more han 65 insances and we increased his o morehan 70 insances by creaing ve regional insances based on characer ses, as Oracle had no delivered our curren Unicode soluion a haime. We creaed wo insances in Europe (Wesern European and Easern European), one or he Americas, one or Asia Pacic, and one orLain America. We adoped he regional insance approach so ha we could ully uilize muliple consolidaion windows on a regional basis andperorm consolidaions in he regions in parallel, raher han sequenially. We avoided signican Daa Migraions during he enire ourh quarerand during each quarer-end monh o Oracles Financial eporing periods. Tis reduced he number o available slos we could uilize or DaaMigraions.

By January 2001 we had reduced he number o insances o 20 and by January 2002 urher reduced his o 10 insances. We had consolidaedo hree regional insances by January 2003 and achieved a single EP insance in January 2004. We hen combined our global EP and CMinsances and achieved our goal o a Global Single Insance in Ocober 2004.

Since hen we have migraed a muliude o acquired companys daa ino his insance, including PeopleSo, Siebel, Hyperion and BEA, o namea ew.

Oracle: Post Consolidation

A he conclusion o Oracles Consolidaion Program in 2004, he Oracle I landscape looked very diferen. We had a primary Daa Cener inAusin, exas, wih a remoe Business Coninuiy Plan (BCP) Daa Cener in Colorado Springs. We had a Global Single Insance, wih a signi-canly reduced number o supporing environmens, all conrolled o he same sandards and wih he same processes. Te insance was runninghe Oracle E-Business Suie (boh EP and CM) on a single echnology sack, suppored by a single I group (disribued across a numbero counries around he globe). We had all applicaions running or all counries o he same se o business processes wih a single applicaionsseup. Te business processes and ransacion processing were suppored by regional Shared Service Ceners. We now had a consolidaed globalinormaion sysem, whereas beore, we had ragmened ransacional sysems. Tis ensured ha Oracle had he inormaion necessary or quickand ecien decision-making.

We no longer had ragmened daa, raher a ul l Global Inormaion Sysem providing beter inormaion or decision making wih accurae,consisen, imely, and meaningul inormaion.

reducion o resource and aciliy coss, bu mos imporanly i allows or beter and more conrolled execuion and suppor o hoseservices. Wih ewer resources you will atain more ocus and beter execuion.

From our Oracle experience, we would recommend consolidaing as much as possible o obain he maximum reurn or your Corporaion.


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Noe: Oracle currenly perorms a number o uncions a is Shared Service Ceners, including: acical Purchasing, Accouns Payable, OrderAdminisraion, Accouns eceivable, Cash Managemen, evenue Accouning, evenue ecogniion, General Accouning, Collecions andDaa Librarians - Cusomer Daa.

We embarked on a journey to consolidate all our production ERP and CRM systems. Our old model o separate

geographically based systems simply could not provide the corporation with the inormation we needed to run our business.

Visibility, Accountability, and Security

Te previous benes provide a signican business advanage or Oracle, where visibiliy, accounabiliy and securiy are a a premium. Oracleis accounable o shareholders and he public, he Chie Execuive Ocer (CEO) and Board o Direcors, our employees, as well as he Securiiesand Exchange Commission (SEC) and oher regulaory agencies. Having implemened sandard processes and shared services, we have increasedour visibiliy ino operaions. Oracles consolidaion allows i o reduce is exposure and ensure he minimum disrupion and risk o businessoperaions.

Keys to SuccessTroughou he whole Consolidaion Program, AI sough o coninuously improve is model and approach owards consolidaion. As a resul,AI was able o documen is perormance and leverage his o make improvemens. Te early consolidaion projecs were used as prooypes,which led o he rapid developmen o a repeaable program o qualiy projecs, coninually meeing aggressive schedules.

Te ollowing summary is a lis o some o he keys o success ha Oracle idenied hroughou he Consolidaion Program. We believe hese keypoins will help our cusomers acing similar challenges in ataining he signican benes o consolidaion.

Obtain and Leverage Executive Management Commitment.1. Tis is essenial or swi prioriizaion and decision-making. A Seeringgroup should be creaed o ensure ha I and Business prioriies are aligned and open issues are closed as soon as possible. A Oracle, weremoved he global I coss rom he local cos srucure o ensure local managemen commimen o he Consolidaion Program. In addi-ion, i is criical o have a srucure o allow quick decisions o be made. A bad decision can be correced; a delay or no decision simply adds

ime and coss o he projec wihou any bene. Do no allow a managemen by commitee menaliy o ener ino he projec.

Create a Realistic Plan.2. A Oracle, we buil exibiliy ino he plan o minimize he chance o any delay and o ensure we progressed quicklyo our goal o a Global Single Insance. We grouped similar counries ino a single projec o ensure a swi implemenaion. We consolidaediniially o regional insances, allowing us o run consolidaions in parallel across muliple counries and regions, o maximize he windowso opporuniy o migrae daa ino he Global Single Insance. We excluded he inroducion o new uncionaliy ino he consolidaionprojec when necessary o ensure he criical pah only included essenial asks. We migraed all daa in an insance a he ime o migra-ion, perorming daa cleansing eiher in he original insance or as a pos consolidaion ask. We did no perorm daa cleansing during hemigraion in order o reduce complexiy and risk. We involved users early in he esing process and had a clear communicaion plan o seexpecaions.

Simpliy and Consolidate as Much as Possible.3. A Oracle we looked o consolidae as much as possible, moving o global businessprocesses and shared services o provide increasing reurns o Oracle, raher han he one of coss o a echnical server consolidaion. We

also looked o uilize ools like Unicode o handle muli-characer se issues and o simpliy operaions as much as possible.

Organize Globally or Centrally.4. We seup and uil ized he Global Process Owner (GPO) model [see he secion: Parnering wih heBusiness] as a Global Decision making orum which signicanly reduced local issues wih processes and local sauory requiremens. Tisminimized any regional obsrucions and allowed us o ocus on progressing he program. I was essenial or us o dene he global businessprocess ooprin in parnership wih he business. Tis allowed us o maximize he reurn o Oracle while minimizing he number o localcounry excepions o he global ooprin. Tis was one o he keys o obaining a ruly global inormaion sysem wih meaningul andnon-ragmened daa.


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Automate and Centralize Business Processes.5. I is imporan o ensure ha end-o-end Business Flows are documened as par o heglobal ooprin and here is inegraion across all he applicaions in use. All key applicaions should be included in he scope o he oo-prin (e.g. H). I is also v ial or swi progress, o ensure ha business processes are changed o he applicaions. Adding enhancemenso he applicaions and developmen phases o he criical pah, raher han modiying he business processes, wil l signicanly increasehe schedule or he whole Consolidaion Program. A Oracle, we also documened, wihin he global ooprin, he local / cenral spli oresponsibiliies beween he local counry and he Shared Service Cener (SSC). We hen added simulaion esing o he implemenaion

phase o ensure ha here was no breakage in he processes beween he SSC and local counry business.

Move to a Shared Service Model.6. I is always dicul o ensure ha sandard processes are mainained once implemened. However,implemening a SSC model means ha a single cenrally locaed eam in he SSC can perorm he global processes or muliple counries,reducing he opporuniy or excepions or bad pracices arising wihin one counry. Te SSC can police he sandard processes and helpmiigae any issues. We also appoined Counry Conrollers wihin he SSC. Tis Accoun Manager role signicanly helped he ransiionrom he local counry o he SSC by ocusing on resolving any issues ha were idenied during he ransiion.

Deploy Standard, Out o the Box Products.7. A Oracle, we mosly deployed ou o he box producs, resising changes o he applicaions.Tis minimized he amoun o suppor and mainenance on he consolidaed environmen and allowed us o easily upgrade o new releaseswihou having o redo a large number o cusomizaions.

Leverage Sel-Service.8. Te inroducion o sel-service applicaions signicanly simplies a number o business ows. Moving o a sel-service model has reduced ransacional coss, improved urnaround imes, and improved he qualiy o daa.

Dont Underestimate the Hardest Part - Managing the Change.9. A Oracle, we are used o change, bu even so, we spen he rs ewweeks o each counry projec ensuring ha he scope was dened and managemen and user expecaions were se a he appropriae level.As par o his process, he SSC and local organizaion changes were reviewed, as well as he program schedule. Managing change is a vialacor or all he componens o he Consolidaion Program. In a muli-naional Consolidaion Program here are many challenges andchange is inheren in all o hem never underesimae he impac on your plans and ulimaely your goals.

THE SIEBEL CRM IMPLEMENTATION AT ORACLE

Why Implement Siebel CRM?When Oracle acquired Siebel Sysems in 2006, we had he unique opporuniy o leverage he bes o our applicaion suies or inernal use. Ourexecuive eam decided o implemen Siebel CM or Sales, Markeing, and Alliances & Channels in order o improve global processes and oshowcase our agship CM produc alongside he E-Business Suie or Enerprise esource Planning. Tis decision drove global process san-dardizaion across all lines o business, allowing Oracle o eliminae a number o disparae sales and markeing sysems ha had been mainainedon a regional or group basis, despie he push oward process simplicaion and sandardizaion.

Adoping our own bes-in-class CM soluion has allowed us o:

Esablish a se o globally consisen, ecien, sreamlined and scalable cusomer acing processes rom campaign o opporuniy o quoeinegraion

Leverage he bes pracices available in our sandard producs while minimizing cusomizaions

Eliminae cusom applicaions and cenralize cusomer daa o improve inegriy, compleeness and overall daa qualiy

Deliver business inelligence buil on a single source o ruh or pipeline, orecas and campaign daa

Build a compelling sory abou he breadh and deph o Oracle oferings and he abiliy o our eams o deliver a ully inegraed porolio obusiness applicaions, inegraed ogeher by leveraging Oracles Applicaion Inegraion Archiecure (AIA) echnology


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Business Benets

Prior o he commencemen o he program, Oracles muliple sales organizaions were ollowing diferen sales mehodologies in a number oareas. In addiion, here were a number o disparae cusom applicaions and poin soluions ha were used by he Sales and Markeingorganizaions o run heir business.

Moving o he Siebel CM ecosysem has signicanly improved Oracles abiliy o manage cusomer ineracions:

Sales.1. Oracle now has one common se o global processes o manage leads and opporuniies. Oracle has signicanly improved and sreamlined our sales processes, and here is now beter communicaion beween Markeing and Sales, ensuring high qualiy inormaion a everypoin in he cycle.

Marketing.2. Te program inroduced sreamlined lead ow and response processing, which led o decreased markeing campaign coss,improved markeing relaed daa qualiy, and improved budgeing and spend analysis on markeing campaigns.

Alliances & Channels.3. Parner opporuniy managemen has been enhanced and auomaed more ully. Tis in urn has allowed us oreocus ineracion cener represenaives oward more sraegic and value added aciviies.

Business Intelligence.4. Oracle has moved o an analyics soluion ha provides accoun, conac, opporuniy managemen and orecasingdaa in a single sysem using global processes, hus enabling deeper insigh ino individual and group campaign efeciveness and pipelinehealh via business analyics. [Oracles Business Inelligence (OBI) implemenaion is covered in more deail in he nex secion.]

Cost Structure.5. Leveraging Linux hardware and Oracles Grid and RC capabiliies gives us excellen scalabiliy a a very low cos.Addiionally, being virually a vanillia implemenaion o he Siebel soluion reduces uure mainenance and upgrade coss.

Te Siebel CRM Implementation Program

Oracles inernal implemenaion is he worlds larges deploymen o Siebel CM 8 o dae, wih 27,000 sales and markeing inernal users and12,000 parners globally. Te scope o he program includes:

oday, all campaign management,lead processing, opporuniymanagemen, sales orecasting,parner managemen, anderriory managemen across alllines o business are done wihOracles Siebel producs.

When an opporuniy becomesa quoe, a conrac, or an order, iows ino he Oracle E-Business

Suie applicaions.

Enabling inegraed businessprocesses ha ow seamlesslybeween Siebel CM and heOracle E-Business Suie callsor sae-o-he-ar applicaion


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inegraion, which or our implemenaion means using he Siebel EAI ramework, Oracle Fusion Middleware and he BPEL Process Manager,o deploy a robus se o web services. I provides he oundaion ha keeps daa synchronized and allows or an inegraed business processbeween opporuniy managemen processes in Siebel CM, wih quoe and order managemen processes in he Oracle E-Business Suie.

An inegral par o he Global CM ecosysem is he deploymen o an Oracle Business Inelligence (BI) plaorm (ormerly Siebel Analyics)and CM Analyics Applicaions or reporing and BI. Our CM Analyics inrasrucure includes 50 subjec area. Tis enables users o builddashboards and repors rom a single source o ruh and has paved he way or he Corporae Warehouse. Sales Analyics delivers role-basedinelligence or sales reps, sales managers and execuives on pipeline and orecas and al lows perormance racking agains quoa, budge andrevenue. Markeing Analyics enables he creaion o precise cusomer segmens or efecive campaigns and visibiliy ino campaign resuls andOI.

We also recenly implemened Oracles Siebel Universal Conen Managemen (UCM) applicaion o consolidae disparae daa qualiy manage-men poin soluions wih a cenralized, sandard Maser Daa Managemen (MDM) applicaion.

Project Governance and Implementation Best Practices

Te projec o implemen global CM a Oracle ook 18 monhs rom kickof o deploymen. Te key milesones included business process re-engineering, requiremens, soluion design, conerence room pilo, healh checkpoins, inegraion esing, end-o-end soluion review, UA, and

producion ransiion aciviies. A big bang deploymen was considered he bes approach rom a cos- risk perspecive. Tis projec was execuedusing he sandard AI Projec Mehodology which is covered in a laer secion o his documen.

Te governance model enailed a ormalized Program Oce, Seering Commitee and Implemenaion eam, and was backed wih Execuivesponsorship. Five major projec sreams were creaed each wih separae process racks. Each sream ollowed a riangular managemen modelconsising o a Projec Manager, a Business Process Owner and an I Soluion Owner. Each process rack wihin a projec sream had an ISoluion Lead and a Business Analys Lead o enable process coordinaion wih an exended eam o Subjec Mater Expers (SMEs) and regionalresources.


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Te guiding principles or he projec and or he subsequen improvemen cycles include business process globalizaion, applicaionconsolidaion / daa cenralizaion, implemenaion o he naive produc, and keeping reporing inegral o he overall soluion.

Te projec used an ieraive soluion developmen mehodology an agile approach o muliple design ieraions ha engaged business,uncional, developmen, and esing eams concurrenly, hereby enabling rapid eedback c ycles, incremenal wins and susained commimen.Te muli-phased esing approach saring a soluion developmen and coninuing hrough he nal user accepance ensured individual sreamsme business requiremens and inegraed well beore producion ransiion. Te projec redened and communicaed he mehodology, enrancand exi crieria a each projec sage o keep he approach resh and aligned wih he curren sae.

Pos producion, a robus suppor model was pu in place or he rs 6 weeks pos go live, including regional command ceners, globalI/Business cha rooms, highly ocused issue racking and managemen using E-Business Suie Service eques Managemen, and requenupdae packs.

Keys to Success

Oracle coninues o evaluae is programs o ensure ha he keys o success wihin a program are reviewed and acored ino uure programs. Webelieve he ollowing poins will help our cusomers acing similar challenges o atain signican benes rom running similar programs:

Establish Governance and Roles.1. Te key o a successul program is o have a srucure in place o ensure efecive managemen and clariyo roles and responsibiliies.

Dene the Ecosystem and Guiding Principles.2. Ensure ha he uure sae ecosysem has been dened and all aciviies are aligned wihhe guiding principles.

Constantly Communicate Strategy and Plans.3. I is essenial o ensure ha everybody involved wih he program is aware o he approach,plan and progress, and any changes in hese. Tis requires coninuous communicaion.

Keep ransparency.4. Always ensure ha hose involved wih he program undersand ha ransparency is key o seting cusomerexpecaions and avoiding any miscommunicaions.

Empower eams and Ensure Accountability.5. Build and enable a srucure and engagemen model ha empowers he eam members andensure ha hey are accounable or heir acions and are ocused on he program delivery.

Ensure Ownership o Cross Line-o-Business Issues.6. Each issue needs an owner, paricularly when he issue crosses lines-o-business. Iis essenial ha he ownership is unequivocal and ha all inegraion poins where ownership could be ambiguous are claried and reviewedon a regular basis.

Early Focus on Perormance and Scalability.7. Oen hese are le ou or addressed a he end o he program. Wih any signican changeso he echnology, i is imperaive o ocus on perormance and scalabiliy during all phases o he projec.

Analytics Core Reports.8. o manage scope and change, consider deploymen o only he key core repors in he iniial rollou and keepocus on reporing enablers -- analyics inrasrucure, ransacional sysems, and daa qualiy.

Incremental Wins Are Important.9. Incremenal wins are a key means o showing progress and ensuring coninuous buy-in o he programand susained moivaion.

Avoid Excessive Meetings.10. Wih such large involvemen across a global projec, i is essenial ha meeings are o a manageable lengh. Verylong conerences end up being couner-producive and creae diminishing rae o reurn.

Maximize Synergies.11. Ensure you know when and how o use various resources on each eam o maximize synergies, and reduce imeramesand risks.


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Measurement & Documentation.12. Failing o documen progress a an early sage wil l only creae a much larger hurdle o clear as heiniiaive progresses owards compleion.

As a resul o he implemenaion program we have a unied oundaion and consisen, end-o-end Campaign o Opporuniy o QuoeInegraion processes, enabling improved execuion and managemen o he business.

ENTERPRISE REPORTING AT ORACLE

Approach and Strategy

One o he key objecives or Oracles consolidaion programwas o consolidae he corporaions ragmened nancialdaa ono a single insance where i could be uilized asglobal inormaion, which would provide consisen, accu-rae, meaningul and imely inormaion o he Corporaion.Once he consolidaed insances were in place he challengewas o provide he nex phase and o leverage his global in-

ormaion o suppor decision-making by providing a singlecohesive business view.

Te sraegies o address his were o upgrade he EPinsance o E-Business Suie elease 12; deploy a separaeSiebel CM insance or Sales, Consuling and Markeing;replace he legacy suppor sysem wih Siebel Suppor and oimplemen a Single Enerprise Daa Warehouse (CorporaeDaa Warehouse CDW).

Te Enerprise eporing Sraegy was o provide inel-ligence o everyone wihin he corporaion, o provideoperaionally acionable inormaion in conex o 80,000

inormaion worker employees. Tis included a SingleCorporae eposiory wih secure, unied daa deniionsand an enerprise view rom nancial reporing hrougho deailed reporing. Te approach was o insall businesssewardship or reporing, which would enable prioriizaionby daa sewards and ensure securiy, allow conen sharing,and adopion and enablemen o reporing.

Pre and Post Implementation

Business Inelligence a Oracle was ransormed. Prior o he implemenaion, inormaion and hisorical daa rends were available o analyssonly who used numerous analyic ools or reporing.

Aer he implemenaion, inelligence is available o everyone. A secure, unied enerprise view is in place, which ofers real-ime predicive daa.Te Operaional Business Inelligence is wihin he ransacion sysems. Enerprise-wide governance has replaced disparae business processesand pre-buil analyics soluions wih an ad-hoc query inrasrucure are available. Tis allows insigh-driven sraegic decision-making and busi-ness process opimizaion.

Te resul is he larges curren deploymen o Siebel CM 8.0 Analyics worldwide, he larges deploymen o EBS elease 12 Analyics world-wide and he larges deploymen o ravel and Enerainmen Expense Analyics worldwide.


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Te archiecure was congured o exrac, ransorm and load (EL) daa rom he producion insances o he Global Corporae Warehouse(GCW).

Te daa sources include he Global Insances o he E-Business Suie (GSI), Siebel CM (GCM), Siebel Service, Planning & Budgeing andoher exernal daa sources such as Dun & Bradsree (D&B).

Oracle Business Inelligence (OBI) Applicaions reside on he GCW wih he pre- packaged Daa Warehouse schema, conen and dashboards.

ransparency and Collaboration

As a resul o he implemenaion o he Global Corporae Warehouse (GCW), Enerprise eporing is reaed as a sraegic corporae asse. TeLines o Business (LOB) wihin Oracle and AI co-developed he Analyics sraegy. An Enerprise eporing Seering Commitee (ESC) wasse up o represen he business unis and I and his group was empowered o prioriize he projec workload. Te program included very acivebusiness paricipaion and ownership, wih he ESC enorcing he governance model or a successul implemenaion. ransparency andcollaboraion was key or he success o he program.

Roles & Responsibilitiesoles and esponsibiliies were claried a he onse o he program. Te LOBs are responsible or he leadership o he Enerprise eporingSeering Commitee, which governs he prioriizaion process and he uncional wish lis. Te business appoined Daa Sewards o build andmainain he dashboards. Te business was also responsible or he adopion and upake o he soluion, rs line suppor, securiy, and adminis-raion access. I was responsible or he archiecure, echnical and operaional governance, and he inrasrucure. AI was also responsible orhe echnical roadmap and Daa Warehouse Operaions, as well as he conen and cericaion or business super-users, adopion planning anddevelopmen suppor.


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Key Business oles were seup o suppor he warehouse. A Subjec Area Program Manager was responsible or he success o each subjec area.A Fac / Dimension Owner was idenied o approve dimensions, populae he dicionary, prioriize xes, approve soluions and ceriy acsand dimensions. Business Super Users were idenied o build repors, caalog enries, perorm sysem esing, and provide end user suppor anddocumen requiremens.

Key Elements o Enterprise Reporting

o ensure success or similar programs he ollowing should be acored ino he soluion:

Be clear and transparent. Ensure ha he Business Inelligence sraegy, governance model, prioriizaion process and roles, processes andplans are all dened, visible and communicaed widely.

Specic Strategy or Analytics Processes. Have a single se o enerprise-class global processes and ensure a single global daareconciliaion process is in place.

Oracle Stafng. Align all resources o he common goal and ensure he eam is buil on an inclusive basis raher han a compeiive basis.

Te resul was a paradigm shi a Oracle wih aligned decision making across Oracle, based on a single cohesive business view wih sraegicopporuniies, execuion plans and shared merics. Oracle had global blended reporing. Every line-o-business in every region had inelligenceha could be analyzed on he same dimensions e.g. ime, geography, indusry, produc, sales channel. ransparen daa qualiy led o improveddaa qualiy. Enerprise eporing is a sraegic asse o he corporaion.

Key Business Drivers


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ORACLES ARCHITECTURE

Te Global Single Instance (GSI) or ERP Systems

Oracle has similar archiecures in place o suppor is diferen producion insances.

Te GSIAP archiecure consiss o pools o Linux mid ier Applicaion Servers allocaed o specic inernal and exernal ULs. When a useraccesses one o he ULs, BigIP perorms load balancing and assigns he connecion o one o he 39 mid iers in he pool. Te 12 OracleApplicaions Code ree (APPL_OP) is shared across all he mid iers using NeApps echnology. Te user session is hen direced o one o heinsances which reside on a 4-node F25K Sun Solaris cluser wih he daabase residing on EMC SAN sorage.


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Business Continuity and Disaster Recovery

Te remaining server capaciy is allocaed o a second domain o run muliple es daabases. Less processing capaciy is usually required oresing, alhough, i required, he ull es capaciy can be dedicaed o a single environmen o perorm high volume load esing aciviies. esdaabases are ull-size copies o he producion daabase, bu copied rom he he D sandby daabase, as a mehod o regularly veriy hesandby daabase.


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Te D sandby daabase sorage is physcially segregaed rom he es daabase sorage. Synchronizaion o changes o he operaing sysem andhardware are handled manually, and daabase changes are handled hrough Daaguard using physical replicaion.

In he even o disaserous loss o producion service in Ausin, mos es environmens in Colorado Springs are shudown, he daabase serverdomains are recongured o allocae mos o he capaciy o he sandby domain, ousanding archive logs are applied o he sandby daabase,and producion processing is iniiaed on he sandby environmen.

For he middle ier applicaion servers, he es machines are repurposed o D via a remoun o he shared applicaion and IAS code. NeAppsSnapMirror is used o keep he producion and sandby applicaion code synchronized, while he BigIP Load Balancer and DNS is synchronizedmanually.

Te CM OLP producion environmen (GCM) consiss o 21 Dell middle iers using Oracle Enerprise Linux (OEL). Te Siebelcomponens in use are spread across hese servers, according o usage, and wheher hey are accessing inernal or exernal urls. Te daabaseconguraion consiss o 4 x Dell 6950 daabase servers using RC echnology and 64 bi Oracle Enerprise Linux (OEL).

User access is disribued by BigIP in wo sages: Web Server (iAS) sessions are direced o he appropriae M pool or he paricularuncionaliy required. Big IP is hen used by he Siebel Server o evenly disribue he load beween he servers in hese pools.

GCM is closely inegraed wih he Global Corporae Warehouse (GCW). Sandard EL processes rom he GCM environmen populae heCorporae Warehouse wih denormalized daa or improved reporing perormance. Cusom EL processes populae GCW rom oher LOBenvironmens including Finance.

Global CRM Instance


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Global Corporate Warehouse Instance

Te Corporae Warehouse producion environmen (GCW) consiss o 4 x Dell 6950 daabase servers using RC echnology and 64 bi OracleEnerprise Linux (OEL). Te middle ier conguraion consiss o 10 x Linux middle iers using Oracle Enerprise Linux (OEL). BigIP providesiniial load balancing or OBIEE across he Web Servers.

Te Oracle Business Inelligence Suie Enerprise Ediion (OBIEE) Cluser Conroller load balances he acual daa queries across he OBIservers. Where users log ino Siebel CM and reques specic OBIEE repors and dashboards ha exis in he Warehouse hey are auomaicallyroued o his conen on he Warehouse.

Tere are also several Dell 1850s running MS Windows 2003 o run Siebel ools and he OBIEE Adminisraion ools.


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OPERATIONAL BEST PRACTICES WITHIN ORACLE IT

Change Management

A an operaional level, here are oher Bes Pracices used wihin Oracle I. Here are a ew noes on some seleced opics.

Oracle I has documened processes or change managemen in line wih compliance requiremens or Sarbanes Oxley (SOX). All applicaionchanges (boh echnical and uncional) require approval by he applicaion owner wihin I and he business owner(s) o any impaced areas.Excepions o he process need submission o I senior managemen or review o he risks and impac o he excepion beore hey are approved

Examples o change managemen bes pracices are:

All change requess mus ollow he pah hrough he ollowing environmens: Build/es > UA > Saging > Producion

Te person who ess he change canno also be he approver

All code mus be rerieved rom Source Conrol and no rom a es sysem

New uncionaliy is regression esed on he UA environmen and all changes are regression esed on he Saging environmen

Any unplanned downime on any environmen requires I senior managemen approval

All changes are made in a measured ashion and are esed or uncionaliy and perormance impac beore deploymen and all changes arerecorded as an audi rail. Change Managemen requess are managed via dened and published paching windows. Wherever possibleapplicaion roll-up pach ses are used o minimize ouages. New uncionaliy is only released during a single paching window each quarer hais published monhs in advance. Tis allows Oracle o manage expecaions and he work and esing schedule or he whole year.

Cloning or environmen managemen includes using he Disaser ecovery as he source or cloning rereshes. Oracle uses proprieary cloningand scrambles daa on key environmens. Cloning mehods ake copies rom producion uilizing scrips o ransorm raw-o-cooked daa leswhere needed. Copies o he applicaion code and iAS code (OracleHome) uilize NeApps SnapMirror. Oracle use ull size copies o he produc-ion environmen or es environmens and use Oracle Enerprise Manager (OEM), Sie Scope, Loadunner and proprieary sysems during heprocess.

Support Policy

Te general policy is ha AI provides 5x16 (day x hour) suppor or Applicaions ha have sucien global coverage. Applicaions deemed ascriical will ollow an excepion policy greaer han 5x16 and may exend o 7x24. Suppor coverage will vary due o he business cycles and weexpec 24 hour coverage over he close period. Some applicaions ha are no required o be suppored in all imezones may receive 5x8 coverageTe inrasrucure (hardware, DB, sorage, ec.) is all suppored 7x24.

Business Super User roles are in place o expedie issue resoluion by being he 1s level suppor or he business communiy. Te Business SuperUser is a criical paricipan in he ow o supporing Oracle Applicaions, which in urn suppors Oracle Corporaions success. Te Super Userriages all serv ice requess beore hey are delivered o I.

A Global Helpesk is in place o handle sel service applicaion and deskop suppor which do no ollow he Super User model. Tis is a cenralhelpdesk manned 7x24 which will handle rs line suppor, log he service reques and pass o he appropriae group including appropriaeescalaions.

Service equess are caegorized ino he ollowing and response levels are in place or bes pracice and moniored closely:

Severity 1 (P1) : Failure or severe degradaion o service, such ha time critical workcanno be compleed,AND which impacs mulipleusers or heir primary business uncion or has a legal or considerable revenue impac on Oracle or hreaens monh end close.


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Severity 2 (P2): Signican business impac. Used o denoe auls which afec more han one business user and which has a major impacon he cliens abiliy o conduc business. A single user issue may also be a P2 i i prevens hem perorming heir primary business uncion

Severity 3 (P3): esriced business impac. Usually denoes ha he problem is resriced o one user, or i more han one, ha a work-around is available allowing he clien o coninue o make use o he service.

Severity 4 (P4): Low business impac normally applied o requess or inormaion, or accoun requess. In his caegory, here is nodiscernible impac on he clien's abiliy o conduc business.

Capacity Planning

Capaciy Planning is no an exac science due o difering hardware conguraions or source environmens. Oracle has diferen ypes o servers,sorage and usages saisics. Tere are good inormaion sources o help guide decisions.

Oracle gahers long-erm daabase usage saisics or all source environmens via Auomaic Workload esposiory (AW) repors. Logical I/Ois a good meric o applicaion load. We use sar o deermine server load. Tere is a good correlaion beween logical I/O and CPU usage. Weadjus he load gures or diferen capaciy servers. For he middle iers we work ou he raio o users per server or specic uncional areas e.g.

orms, Sel Service Web Applicaions (SSWA) and add capaciy o accommodae increases in load.

Diferen ime zones usually have diferen peak and quie periods over he course o a 24 hour period. We consider periods o peak load over hecourse o he whole year o cover acors such as scal close and any seasonal increases. We also draw up a coningency plan and review i here isspecic uncionaliy ha is no needed during periods o heavy load. Wih Linux, he reallocaion o Middle ier resources is very sraighor-ward and inexpensive.

Load Balancing and Failover

Oracle reviews how he load is balanced or he bach applicaions. Concurren Manager Queues are dened or criical, non-criical and sysemrequired workload. Queues are allocaed and managed based on load and capaciy. eviews are conduced regularly o segregae criical and noncriical workload. Te ll-over is seup in he curren environmen or bach and on-line users using parallel concurren processing seup wihailover o one ho spare.

Perormance Management

Producion monioring and suppor is provided 24x7 or al l problems repored by users, or issues discovered during ineracive monioring andor problems repored auomaically by monioring ools. Oracle Enerprise Manager (OEM) 10G is he primary ool or merics collecion andperormance alers.

Tere is no window or overnigh processing. Any badly running code can impac every user on he sysem, so AW repors are used o look orhe wors perorming SQLs/egressions. Cusom applicaions mus be ully esed or uncionaliy and perormance impac. Oracle deploysresource limis and proles or suppor saf and denes proles or specic user roles. Tere are se session limis or each o hese. For concur-

ren managers, Oracle denes queues or quick/low load requess (quick wins). For long running/high load jobs, he number running in parallelis limied o conrol he load across he sysem. Discoverer jobs are moniored or high load and Oracle requenly run jobs o ge hese converedo run as concurren requess.

Load ess are always perormed beore deploymen on producion, especially or new applicaions or daabase versions, or major pach ses andany migraions. Cusom bach load ki is used or repeaable ess. Loadrunnner and Winrunner are used or like or like ess on diferen buildsand conguraions. Wherever possible, users are encouraged o paricipae in ess. We srongly recommend ha everyhing is esed and unedbeore deploymen on producion sysems.


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CORPORATE GOVERNANCE AND COMPLIANCE

Addressing Increased Regulatory Compliance Costs

Te Enron and WorldCom scandals have resuled in a renewed ocus on compliance and regulaion. o improve he invesors condence inhe capial markes subsequen o hese scandals, here has been a ra o regulaory acs inroduced o enorce governance and conrol. Oracle,

like oher global rms, aces a muliude o regulaory compliance programs ha i needs o comply wih, including SOX, European Union daaprivacy rules, and Caliornia SB1386 (o name a ew).

Acceping ha he regulaory acs are here o say, rms subsequenly have sared o look a ways o alleviae his increasing cos burden, in amove o provide susainabiliy or heir compliance program managemen.

Oracles Internal Compliance Approach

Faced wih he growing coss associaed wih meeing hese regulaions as discree projecs, Oracle has looked a improving eciencies wihin isoperaions, including he I inrasrucure, o provide susainabiliy o his growing lis o regulaory demands. Oracles response o resolving hishas cenered on addressing hree key acors impacing he operaional susainabiliy o compliance programsManagemen, OrganizaionalDesign, and I Inrasrucure.

Te ollowing are acors ha he Oracle business and I have pu in place o aciliae compliance:

Process Standardization. o manage he requiremens relaed o nancial reporing and disclosure, Oracles move o global sandard pro-cesses (or is nancial processing) served as a key componen. By ensuring everyone works of he same se o business processes or a givenbusiness uncion, Oracle achieved consisency in operaions and removed he risks relaed o inconsisen processes in he areas relaed ohe companys nancial reporing.

Process Execution via Shared Service Centers. Oracle Shared Ceners are responsible or execuing Oracles global nancial processes,providing eciency and consisency in he nancial operaions. I also means ha we perorm our SOX 404-relaed esing in one place.

I Inrastructure. Much o our inrasrucure is based on he COBI ramework wih a ocus on access conrol, segregaion o duies, andchange managemen. We also ocused on improving our esing conrols and leveraging wha we learned during our rs year o complyingwih SOX. We also implemened Oracle Inernal Conrols Manager (ICM, a COBI/IIL ceried soluion) o help manage a number oour inernal conrols.

Education and Feedback. I provides consan raining or our employees on he underlying requiremens o compliance needs, and heircorresponding impac on day-o-day process managemen.

Organization Structure. Te ollowing organizaion srucures were pu in place o aciliae compliance:

Te Business Practices Group (under he Chie Financial Ocer) responsible or dening he bes pracices or Oracle business process.Tis group is separae rom Finance Operaions (who manage he execuion o nancial process and reporing).

Te Intrnal Audit eam is also separae rom he Financial eam. Tis Inernal Audi eam has an independen view o our processes and

repors heir ndings direcly o he Audi Commitee.

Te Centralized Compliance Unit wihin he Finance organizaion, which co-ordinaes he overall SOX program or Oracle. Tis groupcoordinaes wih a number o inernal groups, including I. Tey also repor heir ndings o he Audi Commitee.

Te AI Compliance Group is a dedicaed group we have seup o liaise wih he inernal and exernal audiors. Tey are responsible orSOX Compliance and or he Inernal Managemen esing (IM) across AI and oher groups.


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Te AI Planning & Operations eams. In order o miigae any poenial exposure o conrols impacing our producion environmens,AI creaed an operaions eam or each AI Group o provide a gaeway or change managemen. Tis group veries ha all changes o anyo our I environmens comply wih our documened conrols.

Oracle and I have used his approach o successully comply wih is audi obligaions wih minimal disrupion or addiional work. Being on aGlobal Single Insance and using a global se o business processes or all counries, has signicanly enhanced Oracles abiliy o mee regulaoryconrols, while minimizing he cos o compliance.

HANDLING MERGERS AND ACQUISITIONS

Oracles Approach to Achieving Rapid Integration

Over he las ew years, Oracle has been involved in a number o acquisiions. Oracles sandard approach o Mergers and Acquisiions is heAbsorpion model, where he acquired company is moved o Oracles inrasrucure and processes. Tis allows Oracle o inegrae he acquiredeniy in he shores imeline wih minimum disrupion.

In order o rapidly inegrae acquired companies, Oracle ollows a sandard procedure, which has been developed based on prior acquisiions.

Oracle careully selecs is acquisiions o complimen and srenghen is exising produc suie.

Once acquisiion plans are in place, i reviews he ax and legal consideraions in order o rapidly combine legal eniies or all acquiredcompany subsidiaries globally.

Communicaion is vial or rapid progress and Oracle has esablished a nework o conacs or M&As across all lines o business.

Oracle has esablished a comprehensive approach o conac and communicae wih he cusomer base o he acquired company, o ensureha hey undersand he sraegy behind he acquisiion and o ensure ha any quesions hey may have are answered.

Oracle has migraed he acquired companies daa o he appropriae Global Single Insance (EP-EBS, CM-Siebel). Te approach omigraion is o have a consisen se o daa migraed or all counries wihin each o he acquired companies. Te minimal amoun o daa ismoved, including:

Consuling ProjecsEducaion EnrollmensHInsalled BaseProducs/PricingSuppor ConracsSales erriories

Exising applicaions raining and orienaion programs enable consisen raining or al l new hires and enables rapid inegraion o allaspecs o he acquired company ino Oracle.


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Oracle I Recommendations or an Efective M&A Approach

Oracle has been able o esablish a as and efecive approach or inegraing acquired companies based on he ollowing keys o success:

Global Processes and Global Instances Facilitate Rapid Absorption. Oracle has sandard business processes in operaion across all o issubsidiaries on our Global Insances. Tis aciliaes rapid absorpion o he acquired companys processes and daa o Oracles inrasrucure

and processes. Tese processes are documened wih a comprehensive se o emplaes and checkliss o ensure hey can ui lized or heacquired company.

Well Dened and Repeatable Process or M&A Activity. AI has esablished a small dedicaed M&A eam wih he abiliy o engage keyI resources rapidly as required. A orum exiss or I groups o coordinae heir plans and o inerace wih acquired I and business groupso agree ownership o asks and aciviies early in he M&A liecycle. Tis includes people inegraion, daa migraion, daa reenion, legacysysem access, ensuring exising license obligaions are me, ha applicaions backups and nal shudown o idenied applicaions are inplace and o ensure ha hardware relocaion and decommission is managed and approved.

Regular and Consistent Communications. In a rapid inegraion environmen, wih all lines o business and counries involved, i is vialha communicaions are piched a he righ level hrough an esablished nework o key conacs. Disposiion plans are well undersood andagreed by all paries in advance. Geting he laes developmens is crucial or a swi and simple inegraion.

Keep it Simple. M&As are, by heir very naure, complex wih consideraions involving Legal, ax and oher key business unis. In ordero rapidly adsorb he acquired companies, i is essenial o minimize disrupion o boh companies and heir cusomers and o minimize hedaa migraions and changes o processes.

PeopleSo was acquired in January 2005 and ully inegraed on Oracle processes wih heir enire core daa migraed ino Oracles Global SingleInsance, or all counries (excep Japan which is a separae lised company) by July 2005. Siebel Sysems was acquired in January 2006 and wasully inegraed ino Oracle, using Oracle business processes and applicaions by June 2006. Boh were large acquisiions and boh were ully in-egraed wihin monhs o he change o conrol dae using he approach and environmens laid ou in his secion. Teir own applicaions couldhen be disposiioned in l ine wih daa reenion requiremens or ax and Legal consideraions.

All o these actors plus a continuous ramework or process improvement have led to a very successul integration approach.

Acquired Companies

Oracle has acquired a number o oher companies since 2005. Te ollowing are an example o some o he acquired companies. All have beenadsorbed and ully inegraed ino Oracle wihin monhs:

FY2005: 4 Acquisitions including PeopleSo

FY2006: 15 Acquisitions including Siebel

FY2007: 15 Acquisitions including Hyperion and Portal

FY2008: 15 Acquisitions including Agile and BEA

FY2009: 2 Acquisitions as o printing, Skywire and ClearApp

For a ull lis o publically announced acquisiions, see htp://www.oracle.com/corporae/acquisiion.hml.
http://www.oracle.com/corporate/acquisition.htmlhttp://www.oracle.com/corporate/acquisition.html


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Major versus Standard Projects

AIs projecs are spli ino wo main groups: Sandard Projecs and Major Projecs.

Standard Projects

Major Projects

Sandard projecs are projecs such as produc enhancemens, counry or produc rollous, and individual LOB projecs ha are non-invasive innaure. Tey ypically wi ll no have a signican cross LOB impac or risk and can share a es environmen wih oher sandard projecs. Teseprojecs ollow sandard Developmen, es, and UA environmen ows, and do no meri a specic review o he environmens. I hey miss apaching window or any o he environmens in roue o producion, hen hey simply are included in he nex available paching window whenhey are ready.

Major projecs are ypically large projecs or upgrades and hey afec muliple lines o business. Aer hese major projecs, we always reresh ourcore es environmens o ensure hey are all aligned.

In AIs approach o managing projecs, he key deliverables and he approvals required are idenical, regardless o he ype o he projec.Dividing

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