vs.Slide 2Outline of PresentationWho is Oracle?Who is PeopleSoft?Who is SAP?What are Enterprise Resource Planning Systems?Advantages of ERP SystemsDisadvantages of ERP SystemsOracle’sPeopleSoft’s role in ERP SystemsPeopleSoft ProductsWhat was CEO Larry J. Ellison’s thought process behind this conflict of interest?Slide 13Easing PeopleSoft users’ fear of takeoverWhat is Project Fusion?Slide 16Other customer retaining techniquesWhat is current status of conflict?Slide 19Timeline of the TakeoverOracle’s Moves Since PeopleSoftGroup Discussionvs.By Derek Brown, Adam Nasset, & Kelly PhelpsOutline of PresentationBrief history of Oracle, PeopleSoft, and SAPWhat are ERP Systems and what role do the companies play in this fieldWhy Oracle needed PeopleSoftStrategies used to acquire PeopleSoft and to appeal to PeopleSoft usersCurrent state of the Oracle\PeopleSoft acquisitionTimeline of the PeopleSoft acquisition and other companies and technologies that Oracle has purchased or acquiredGroup Discussion QuestionsWho is Oracle?Oracle, founded in 1977 is one of the major companies developing database management systems, tools for database development, and enterprise resource planning software in the world. The CEO for Oracle over the past several years has been Larry J. Ellison.Since this acquisition of PeopleSoft, Oracle has made a lot of other attempts to build up their ERP and core technologiesWho is PeopleSoft?PeopleSoft, Inc. was a software company that provided enterprise resource planning, human resource management and customer relationship management software solutions to large corporations worldwide. PeopleSoft was founded in Pleasanton, California, in 1987 by Dave Duffield and Ken Morris. PeopleSoft is easily customized to fit the specific business needs of each client, while still remaining generic enough to meet corporate and governmental tracking requirements. In 2003, PeopleSoft merged with smaller rival J.D. Edwards software.Who is SAP?SAP is the leading ERP software producerSAP’s main product SAP R/3More than 28,000 companies worldwide use their productsWhat are Enterprise Resource Planning Systems?Enterprise resource planning systems (ERPs) are management information systems that integrate and automate many of the business practices associated with the operations or production aspects of a company.ERP software can aid in the control of many business activities like: sales, delivery, billing, production, inventory management, and human resources management.ERPs are cross-functional and enterprise wide. To use ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. Most ERP vendors allow changing their software to suit the business needs of their customer.Advantages of ERP SystemsThe benefits from enterprise resource planning are claimed to include:The ability for macro-level decision making by having access to consolidated data/informationTransparency across entire organizationIntegration of all standard business processes (human resources, financials, operation)Lower inventory carrying costs, ordering costs and production costs.Lower accounting and record keeping costsLower investment in equipmentLower investment in plant Increased process transparency for the customer Flexibility for greater product customization, resulting in a better match to the exact needs of the customer Potential for increased sales volume, increased sales revenue (due to a higher effective price, ie. - no discounts), increased market share, and increased profitability due to customer satisfaction improvements Potential for increased profitability or increased market share (at a lower price) due to cost and efficiency improvementsDisadvantages of ERP SystemsThe disadvantages of the enterprise resource planning are claimed to be:the systems can be very expensive to install and maintainERPs are often seen as too rigid, and difficult to adapt to the specific Workflow and Business process of some companies--this is cited as one of the main causes of their failure.some systems can be difficult to usethe system is no better than the weakest link in the chainIf the ERP system is integrated with a supply chain management system, other potential problems include:the system is vulnerable to a strike or labor problem at any one link in the chainthere can be transportation inefficiencies if small lots of product are transported several times before reaching the consumer/useronce a system is established, switching cost are very high for any one of the partners (reduced flexibility and strategic control at the corporate level)there is a resistance to sharing sensitive internal information, information that may be essential to the processthere are compatibility problems with the various legacy systems of all the partnersOracle’s\PeopleSoft’s role in ERP SystemsPeopleSoft was an ERP vendor and provided consulting for their products. Oracle also provided some ERP uses for many companies and with the acquisition of PeopleSoft they greatly increased their influence in that market. Oracle’s database software is the backbone of many ERP systems.PeopleSoft ProductsThe whole software suite of PeopleSoft has changed from the client-server based design to web-centric design, called PeopleSoft Internet Architecture (PIA).The architecture is built around PeopleSoft’s own PeopleTools technology. The benefit of creating their own development platform allowed PeopleSoft applications to run under many different operating systems and database platforms. PeopleSoft’s products are modularized into specific components.What was CEO Larry J. Ellison’s thought process behind this conflict of interest?Before this conflict between Oracle and PeopleSoft, CEO Larry J. Ellison envisioned Oracle to do for corporate software what Microsoft had done for PC software.Ellison felt extremely threatened by Microsoft in the database field and wanted to expand into the growing ERP fieldPeopleSoft acquisition was an attempt to be able to compete with Germany’s SAP.PeopleSoft had just passed up Oracle as the second largest business software producerEasing PeopleSoft users’ fear of takeoverPeopleSoft had roughly 11,000 customers in 150 countries which generated approximately $3 billion in revenuePeopleSoft customers very