The Truth Behind the Billion Dollar Story and Lessons for the Dod

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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
DISCLAIMERii
ILLUSTRATIONSvi
TABLESvii
PREFACEviii
EXECUTIVE SUMMARYxiii
ORACLE CORPORATION1
Products and Services2
Database2
Tools and Applications2
Consulting2
Education3
Support Services3
Research and Development and Software Security4
Financial Information5
Leadership and Culture7
Quality and Culture7
The “Ellison” Factor8
STANDARDIZING BUSINESS PROCESSES12
Simplifying the Business12
Sell Side, Buy Side, and Inside13
Sell Side14
Buy Side17
Results of the Buy and Sell Process Transformation21
INSIDE: CORPORATE RESTRUCTURING23
Business As Usual—Fiefdoms and Stovepipes23
Business in the Old Organizational Structure23
A Simple Example--Marketing24
Mandate for Change25
Admitting there’s a Problem—the First Hurdle25
Business the New Way26
The Shared Services Model27
Human Resources or the “B2E Transformation”28
The Same Story for Finance30
Eating Their Own Dog Food33
Shared Services and Self-Service Lessons for the DoD35
IT CONSOLIDATION AT ORACLE39
Snap-Shot of IT Consolidation40
Oracle’s E-Business Philosophy41
Consolidating E-Mail—An Idea Who’s Time Had Come42
E-mail Consolidation Approach43
E-Mail Consolidation Goals43
The Solution44
What are the Results?46
Taking E-Mail a Step Further—Unified Messaging47
The Rest of the IT Consolidation Story48
Oracle’s Approach50
Change Management51
Before and After Comparison51
Global Help Desk52
But Does It Work?53
A Real Life Example53
It’s All About The Right Information55
my Oracle—A Productivity Portal56
What About All Those DoD Portal Initiatives?59
It’s Not the Technology That Changes Things60
IS IT ALL HYPE?63
The Booz-Allen-Hamilton (BAH) Independent Study63
Study Methodology63
Phase One: Substance Behind Oracle’s Numbers64
Phase Two: Applying the Result to a Notional Federal Agency68 What’s the Bottom line?69
What the Numbers Don’t Say71
LESSONS FOR THE DOD74
Top Ten No Brainers74
Closer to Home--A Practical Application83
The Virtual Pentagon: Good Idea-Bad Execution83
A Final Lesson—It’s A Target Rich Environment87
It’s All About Empowering the People88
A WORD ABOUT SEPTEMBER 11TH90
Oracle Homeland Security Task Force90
Office of Homeland Security91
An Obvious Patriotism92
CONCLUSIONS93
DOD ORACLE CUSTOMERS95
DoD Enterprise Licenses95
DoD Application’s Software Customers96
ORACLE SECURITY EVALUATIONS97
SDCFP FINDINGS AND RECOMMENDATIONS98
Organization Agility98
Transformational Culture98
Collaborative Teaming99
Change Management99
Information Technology (IT)100
Exploiting the Web100
IT Role in Organizational Success101
Business Processes102
Outsourcing102
Leveraging Size for Spend102
Supply Chain Management103
Organizing e-Business Transformation103
Human Capital104
Talent & Performance Management104
Efficient Employee/Customer Support104
BIBLIOGRAPHY105

Illustrations
Page
Figure 1. Oracle Operating Margins-1st Qtr FY2000 through 2nd Qtr FY20027 Figure 2-Oracle e-Business Blueprint13
Figure 3-Oracle’s Shared Services Business Model27
Figure 4-Oracle 11i e-Business Software Suite34
Figure...
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