ORACLEGetting a grip on Big Data

Submitted by:

Rohit MangtaniKomalpreet Kapur

Iqra MuneerPriyesh Patel

Brief Contents Introduction to Oracle

What is Big Data?

Financial Analysis

Marketing and Strategies

Conclusion and Discussion

What is Oracle?Oracle Corporation is an American multinational computer technology corporation headquartered in Redwood City, California, United States. The company primarily specializes in developing and marketing database software and technology, cloud engineered systems and enterprise software products – particularly its own brands of database management systems.

At the heart of Oracle is a single focus: finding better ways to

manage data.

History of Oracle•In 1977, system development laboratories were founded which was the precursor to Oracle Corporation.•In 1986 Oracle goes public on NASDAQ and launches its SQL software. •By 1987 Oracle is confirmed as the world’s largest database management software company.•In 2011 Oracle’s database, system was the first one to pass nine industry standard security evaluations.•For more than three and a half decades Oracle has been a leader in database software.

Oracle’s VisionThe success of Oracle’s products and services is based on three principles:

• Simplify – Enterprises must increase the speed of information delivery with integrated systems. •Standardize – Enterprises must reduce cost and maintenance with open, easily available technology. • Automate – Enterprises must improve operational efficiency with technology and best practices

Key Success Factors

•Technical expertise. •Meet the real needs of customers better than the competitors. •Develop core products that lead to higher levels of customer satisfaction. •Process integration is considered to hold the key to future competitive success.  

Strengths

•Offers consulting, education and support services for its customers.

•Strong sales distribution channels both domestically and internationally .

•Experience and knowledge in the areas of data storage, business applications and e- marketing

Weaknesses• As impressive as Oracle’s strategy is in terms of innovation and thinking, it needs to advertise it more and use it to leverage client interest in current solutions.

•Less control over some international operations than domestic because of reliance on partnerships and alliances instead of direct involvement

Big Data

What is Big Data?

•Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

•Big data generates value from the storage and processing of very large quantities of digital information that cannot be analyzed with traditional computing techniques.

WHO IS GENERATING BIG DATA ?

Social media and networks(all of us

are generating

data)

Scientific instruments(collecting all sorts of data)

Mobile devices

(tracking all objects all the time)

Sensor technology

and networks(measuring all kinds of

data) • Collecting Data is No longer is a problem but, the ability to manage, analyze, summarize, visualize, and discover knowledge from the collected data in a timely manner and in a scalable fashion is what possesses a challenge.

Volume•Data

quantity

Velocity•Data

Speed

Variety•Data

Types

Three Characteristics of Big Data: 3Vs

Similarities and Differences between

Traditional and the new methods

Similarities:

•The main goal of the data management companies is to collect and analyze the data which both traditional and big database does.

•Both methods effectively help in assessing the marketing needs and to get customers’ insights.

Differences:

•Traditional database can be effective only if the data is in a structured form whereas big data can store unstructured data effectively.

•Traditional database finding method produces large amount of data whereas Big Data is smaller in size compared to the data of Traditional methods.

•Big Data provides with real time information where as Traditional method cant.

VALUE OF BIG DATA ANALYTICS• Big data is more real-

time in nature than traditional DW applications.

• Traditional DW architectures (e.g. Exadata, Teradata) are not well-suited for big data apps.

• Shared nothing, massively parallel processing, scale out architectures are well-suited for big data apps

Use of Big Data•It helps to analyze a variety of data by exploring and experimenting for more precise personalized interactions and quicker, more accurate anticipation of changing behavior and situations. Speed discoveries and next best action into operational activities.

•Big data helps you prioritize and plan your implementation while considering business impact, and existing data, technology and skills.

•Benefits include:•Improved insight into customer behavioral data•Adoption of analytics as a competitive weapon•Increased yield, productivity or profitability•Clearer visibility into emerging threats and risks

- Ad-hoc querying and reporting- Data mining techniques- Structured data, typical sources- Small to mid-size datasets

- Optimizations and predictive analytics- Complex statistical analysis- All types of data, and many sources- Very large datasets- More of a real-time

What’s driving Big Data?

• The digital universe is expected to grow more than double every two years, reaching 44 trillion gigabytes of information by 2020, according to IDC (international data corporation). Tapping into this rich flow of new information provides the foundation for more personalized and relevant customer conversations and improved marketing effectiveness.

Does Big Data help in improving Marketing effectiveness?

• The importance of big data doesn’t revolve around how much data you have, but what you do with it.

• You can take data from any source and analyze it to find answers that enable.

• 1) cost reductions, 2) time reductions, 3) new product development and optimized offerings, and 4) smart decision making.

Why is Big Data Important?

o When you combine big data with high-powered analytics, you can accomplish business-related tasks such as:

• Determining root causes of failures, issues and defects in near-real time.

• Generating coupons at the point of sale based on the customer’s buying habits.

• Recalculating entire risk portfolios in minutes.

• Detecting fraudulent behavior before it affects your organization.

• Skills • Lack of tools and training to exploit Big Data • Integration • Adding Big Data to existing architecture is

complex • Too much effort required in data preparation • Security

Barriers to Big Data Complexity

• Data Security – Theft of data• Costs – collecting data without any strategy.• Bad Data - collecting irrelevant, out of date, data. • Bad Analytics- Misinterpreting the patterns shown

by your data• Privacy

24

Downsides of Big Data

• $15 billion on software firms only specializing in data management and analytics.

• This industry on its own is worth more than $100 billion and growing at almost 10% a year which is roughly twice as fast as the software business as a whole.

• In February 2012, the open source analyst firm Wikibon released the first market forecast for Big Data , listing $5.1B revenue in 2012 with growth to $53.4B in 2017

• The McKinsey Global Institute estimates that data volume is growing 40% per year, and will grow 44x between 2009 and 2020.

Future of Big Data

Financial Analysis

ORCL PVT1 MSFT IBM Industry

Market Cap: 149.98B N/A 404.09B 119.07B 251.75MEmployees: 132,000 74,4061 118,000 N/A 589.00

Qtrly Rev Growth (yoy): -0.06 N/A -0.10 -0.09 0.25

Revenue (ttm): 37.47B 21.34B1 88.08B 81.74B 134.25M

Gross Margin (ttm): 0.59 N/A 0.64 0.50 0.64

EBITDA (ttm): 15.21B N/A 30.46B 19.59B -338.00K

Operating Margin (ttm): 0.36 N/A 0.28 0.19 -0.07

Net Income (ttm): 9.20B 3.99B1 11.41B 13.36B N/A

EPS (ttm): 2.07 N/A 1.41 13.42 -0.13P/E (ttm): 17.21 N/A 36.16 9.14 30.17

PEG (5 yr expected): 1.72 N/A 1.89 1.24 0.87

P/S (ttm): 3.98 N/A 4.53 1.43 2.82

ORACLE FINANCE

Market Cap$150 Billion

P/S3.29 %

Beta 1.02891

ORACLE CORPORATION AND IT’S COMPETITORS

Oracle Corp

Hardware and software Hardware and software Software

IBM

1.6 % No Competition 4%

SAP

7 Not Applicable

7

Revenue Spend by Clients to maintain services

Client Review on the scale of 1 – 10 ( were 1 is the worst

service and 10 is unexpectedly good Service )

2013 2014 20150

5000

10000

15000

20000

25000

30000

8541 8914 8400

4518 4399 5310

25932 25432

22932

Line Chart

Oracle Moving average (Oracle)SAP IBMNumber of Years

Inco

me(

Soft

war

e) i

n M

illio

ns

Service 40%

Hardware 38%

Soft-ware22%

Income Distribution in Oracle (Big Data)

Service Hardware software

Oracle market themselves by providing quality product with quality service. Customers depend on Oracle for complete, modern, search portfolio

of enterprise and industry applications. That why Oracle service is engineered with high

performance, simplified management, and high availability at a lower TCO (Total cost of

ownership) to the product affordable to its customers. The company offers systems such as

built-in virtualization, cloud management and system management, which support Oracle and

non-Oracle application and solutions.

Marketing

Marketing Strategy

• Oracle follows a business-to-business marketing strategy by understanding business markets and business buyer behavior. Oracle engage their business customers by building profitable relationship by creating superior customer value.

• The company market its product by business seminars to share their vision, update their progress, and have their customers share their stories. Their customers are from both public and private sector across industries and geographic.

Blogs are Oracle’s best friend 

While video blogs and social media posts are useful, the real resources lie in blog posting. Why this medium? Because it enables learned professionals to deliver knowledge regarding a specific, intricate technology. For example, suppose a data center manager wants to optimize server use and deduces that virtualization is the best option. While this information may be way too complex for most of us, remember the target audience: IT workers  who already know what virtualization does and want to understand Oracle’s detailed take on the technology.

Oracle became the world’s second largest software company by listening to its customers, making smart decisions, building great products and staying ahead of the technological and marketing curve.

Customer Driven Strategy

The difficult truth is that your customers don’t care about your innovation or

products; they care only about the result you can help them achieve. So while many companies believe they’re focused on their customers’ success, they’re really focused

on their own success.

Challenges faced by Oracle

Big data is the next big thing for the data management companies. Oracle being one of the best companies in managing and providing data to the customers, also faces challenges. Many start ups are joining the fray to have a piece of the big data pie.But with the R&D capabilities and the integrated hardware and software line that Oracle posses it is impossible for small companies and startups to match the oracles might. But Oracle does face a serious threat from huge companies like IBM and Microsoft.

Conclusion

“Oracle believes that information matters. Oracle believes that information is power. Oracle believes in doing everything they can to help out customers lower costs, get information on demand, and make the best decisions so they can compete and win.”

In the future will Customer’s be concerned about the downside or less?

Question

Big data has enabled large companies to understand a customers’ spending process, as a result, these companies roll out benefits to these customers, which would in turn buy or use their products. For these companies the expense of these benefits is too small compared to getting a loyal customer. Just about every company today captures every transaction of the customer and roll out benefits to them. For e.g. giving airlines give out frequent flier benefits like use of VIP lounge at the airport, shopping retailers give points to frequent buyers, which in turn can be used to get discounts on the next purchases. Customers usually like these kinds of benefits and would become loyal to the airlines which has the most points on flying or shop at the place which rewards most points on a dollar spent. As long as such benefits are significant to the customers, I think customers would be less concerned about the downsides.

REFERENCES

www.youtube.com www.oracle.com http://www.itproportal.com/2013/08/05/the-bi

g-data-boom-what-why-and-how/ https://www.quora.com/What-does-Oracle-sel

l-and-who-are-its-target-customers http://www.oracle.com/us/corporate/oracle-fa

ct-sheet-079219.pdf http://www.crmsearch.com/oracle-strategy.ph

p www.wikipedia.com