The Truth Behind the Billion Dollar Story and Lessons for the Dod
Secretary of Defense
Corporate Fellows Program
FINAL REPORT
ORACLE CORPORATION
Lt Col Linda R. Medler, USAF
May 2002
ORACLE CORPORATION
THE TRUTH BEHIND THE BILLION DOLLAR STORY AND LESSONS FOR THE DOD
by
Linda R. Medler, Lt Col, USAF
A Research Report Submitted to the Faculty
In Partial Fulfillment of the Graduation Requirements
Advisor: Mr. Eric Briggs, Director, Secretary of Defense Corporate Fellow Program
Washington, DC
May 2002
Disclaimer
The views expressed in this academic research paper are those of the author(s) and do not reflect the official policy or position of the US government or the Department of Defense. In accordance with Air Force Instruction 51-303, it is not copyrighted, but is the property of the United States government.
Contents
Page
DISCLAIMER ii
ILLUSTRATIONS vi
TABLES vii
PREFACE viii
EXECUTIVE SUMMARY xiii
ORACLE CORPORATION 1
Products and Services 2
Database 2
Tools and Applications 2
Consulting 2
Education 3
Support Services 3
Research and Development and Software Security 4
Financial Information 5
Leadership and Culture 7
Quality and Culture 7
The “Ellison” Factor 8
STANDARDIZING BUSINESS PROCESSES 12
Simplifying the Business 12
Sell Side, Buy Side, and Inside 13
Sell Side 14
Buy Side 17
Results of the Buy and Sell Process Transformation 21
INSIDE: CORPORATE RESTRUCTURING 23
Business As Usual—Fiefdoms and Stovepipes 23
Business in the Old Organizational Structure 23
A Simple Example--Marketing 24
Mandate for Change 25
Admitting there’s a Problem—the First Hurdle 25
Business the New Way 26
The Shared Services Model 27
Human Resources or the “B2E Transformation” 28
The Same Story for Finance 30
Eating Their Own Dog Food 33
Shared Services and Self-Service Lessons for the DoD 35
IT CONSOLIDATION AT ORACLE 39
Snap-Shot of IT Consolidation 40
Oracle’s E-Business Philosophy 41
Consolidating E-Mail—An Idea Who’s Time Had Come 42
E-mail Consolidation Approach 43
Corporate Fellows Program
FINAL REPORT
ORACLE CORPORATION
Lt Col Linda R. Medler, USAF
May 2002
ORACLE CORPORATION
THE TRUTH BEHIND THE BILLION DOLLAR STORY AND LESSONS FOR THE DOD
by
Linda R. Medler, Lt Col, USAF
A Research Report Submitted to the Faculty
In Partial Fulfillment of the Graduation Requirements
Advisor: Mr. Eric Briggs, Director, Secretary of Defense Corporate Fellow Program
Washington, DC
May 2002
Disclaimer
The views expressed in this academic research paper are those of the author(s) and do not reflect the official policy or position of the US government or the Department of Defense. In accordance with Air Force Instruction 51-303, it is not copyrighted, but is the property of the United States government.
Contents
Page
DISCLAIMER ii
ILLUSTRATIONS vi
TABLES vii
PREFACE viii
EXECUTIVE SUMMARY xiii
ORACLE CORPORATION 1
Products and Services 2
Database 2
Tools and Applications 2
Consulting 2
Education 3
Support Services 3
Research and Development and Software Security 4
Financial Information 5
Leadership and Culture 7
Quality and Culture 7
The “Ellison” Factor 8
STANDARDIZING BUSINESS PROCESSES 12
Simplifying the Business 12
Sell Side, Buy Side, and Inside 13
Sell Side 14
Buy Side 17
Results of the Buy and Sell Process Transformation 21
INSIDE: CORPORATE RESTRUCTURING 23
Business As Usual—Fiefdoms and Stovepipes 23
Business in the Old Organizational Structure 23
A Simple Example--Marketing 24
Mandate for Change 25
Admitting there’s a Problem—the First Hurdle 25
Business the New Way 26
The Shared Services Model 27
Human Resources or the “B2E Transformation” 28
The Same Story for Finance 30
Eating Their Own Dog Food 33
Shared Services and Self-Service Lessons for the DoD 35
IT CONSOLIDATION AT ORACLE 39
Snap-Shot of IT Consolidation 40
Oracle’s E-Business Philosophy 41
Consolidating E-Mail—An Idea Who’s Time Had Come 42
E-mail Consolidation Approach 43
Bibliography: Interview with Ed Allen. Vice President-Development-Defense. Oracle Government, Education and Healthcare, Oracle Corporation, Reston, VA: September 28, 2001. Baum, David and others. “Oracle 25 Years of Technology Innovation.” Oracle Magazine, November/December, 2001, pp. 65-82. Davidson, Mary Ann. Security Seminar. “Information Security.” Lecture. Chief Security Officer. Oracle Government, Education and Healthcare, Oracle Corporation, Reston, VA: October 16, 2001. ________________________ “Information Security: Shell Game or Reality?’ Lecture. Secretary of Defense Corporate Fellows Company Day. Oracle Chief Security Officer. Oracle Corporation, Redwood Shores, VA: March 6, 2002. Davies, Ted Dragan, Richard V. “Clash of the Titans.” PC Magazine, March 26, 2002, on-line, Internet,25 April 2002, available from http://www.pcmag.com/article/asp, p Entis, Ira. “Homeland Security.” Oracle Customers-DoD. Lecture. Oracle Government Education and Healthcare, Reston, VA: 14 May 2002. “Final Report of the Secretary of Defense Corporate Fellows Program, 2001-2002.” Secretary of Henley, Jeff. Chief Financial Officer, “Driving e-Business Shareholder Value.” Briefing, Oracle Corporation, Redwood Shores, CA: Quarter 2, 2001. Interview with Tim Hoechst. Senior Vice President-Technology, Oracle Government, Education and Healthcare, Oracle Corporation, Reston, VA: September 27, 2001. Interviews with Cindy Kuzemka. Business Development Manager, Oracle Government, Education and Healthcare, Oracle Corporation, Reston, VA: October 8, 2001 and October 11, 2001. Interviews with John Miller. Vice President-Development-Defense, Oracle Government, Education, and Healthcare, Oracle Corporation, Reston, VA, August 24, 2001 and September 28, 2001. Interview with Jim McFarland. Vice President-Advanced Programs, Oracle Government, Education and Healthcare, Oracle Corporation, Reston, VA: September 27, 2001. “Oracle 9i Application Server Unified Messaging 9.0.2.” Oracle Corporation, n.p. available on line: http://messaging.us.oracle.com/collateral, 2002. Oracle Corporation. 2000 Annual Report. (Redwood Shores: 2001), on line, Internet, 25 April 2002, available from: