PGCBM-20 Group Project Assignment: Part-I Course: Organisation Structure, Design and Change

Chapter: 1
1. What is the name of the organization? Give a short account of the history of the company. Describe the way it has grown and developed. Name of the Organization: Oracle Corporation History of the Company: In 1977, Larry Ellison, with his former co-workers Bob Miner & Ed Oates, started a company called Software Development Laboratories (SDL), which used to develop the original version of the Oracle software. The name Oracle originated from the code name of a CIA-funded project Ellison had worked on for a previous employer.

The name of the company was later changed to Oracle Systems Corporation, to align itself more closely with its flagship product and it became known as Oracle Corporation since 1995 following the merger between Oracle Systems Corporation and Oracle Corporation. The below timeline explains how the company grew and developed over the years: 1977: Larry Ellison and friends founded Software Development Laboratories. 1979: SDL changed its company-name to "Relational Software, Inc." (RSI) and introduced its product Oracle V2 as an early commercially available relational database system. 1982: RSI in its turn changed its name, becoming known as "Oracle Corporation", to align itself more closely with its flagship product. 1983: The Company released Oracle version 3. 1984: Oracle Corporation released Oracle version 4, which supported readconsistency. 1985: Oracle Corporation released Oracle version 5, which supported the client server model. 1986: Oracle version 5.1 started supporting distributed queries. 1988: Oracle RDBMS version 6 came out with support for PL/SQL embedded within Oracle Forms v3. 1989: Oracle Corporation entered the application products market and developed its ERP product. 1990: Oracle Applications release 8 1992: Oracle version 7 appeared with support for referential integrity, stored procedures and triggers. 1997: Oracle Corporation released version 8, which supported object-oriented development and multimedia applications. 1999: The release of Oracle8i aimed to provide a database inter-operating better with the internet. 2000: Oracle E-Business Suite 11i pioneers integrated enterprise application software.

2001: Oracle9i went into release with 400 new features. 2003: Oracle Corporation released Oracle Database 10g. 2005: Oracle Database 10.2.0.1also known as Oracle Database 10g Release 2 (10gR2)appeared. 2006: Oracle Corporation announces Unbreakable Linux and acquires i-flex 2007: Oracle Database 10g release 2 sets a new world record TPC-H 3000 GB benchmark result. Oracle Corporation released Oracle Database 11g for Linux and for Microsoft Windows.

2008: Oracle Corporation acquires BEA Systems. 2010: Oracle Corporation acquires Sun Microsystems. 2011: Oracle Corporation acquires web content management system FatWire Software.

Source: Company Website

2. JSR Centre. (To be collated as and when received)

3. Draw a model of the way the organization creates value. Briefly describe its inputs, throughputs, outputs and environment. Creating value is a matter of fundamental importance to all companies including Oracle, because it addresses the economic logic of why the organization exists at all. Oracle creates value by specializing in developing and marketing computer hardware systems and enterprise software products particularly database management systems and using them to produce Solutions for their customers. Oracle outputs are its various products such as various databases, Oracle Fusion Middleware, Oracle Enterprise Manager, Oracle Secure Enterprise Search, Oracle Beehive, Oracle Collaboration Suite Development software, Oracle Corporation's tools for developing applications, the Sun hardware range (resulting from the purchase of Sun Microsystems), pre-engineered and pre-assembled hardware/software bundles for enterprise use etc. Oracle also sells a suite of business applications. The Oracle E-

Business Suite includes software to perform various enterprise functions related to, for instance, financials, manufacturing, customer relationship management (CRM), enterprise resource planning (ERP) and human resource management. Users can access these facilities through a browser interface over the Internet or via a corporate intranet. Oracle Corporation works with "Oracle Certified Partners" to enhance its overall product-range. The variety of applications from third-party vendors includes database applications for archiving, splitting and control, ERP and CRM systems, as well as more niche and focused products providing a range of commercial functions in the areas of human resources, financial control and governance, risk management, and compliance (GRC). Inputs include resources such as raw material, machinery, information and knowledge, human resources, and capital. Throughput is measured by the revenue Oracle receives (or not) at the point of sale. Oracles environment consists of its suppliers, distributors, customers, competitors, and the government. There are also macro forces such as economic, political, demographic, cultural, environmental, international, and technological forces at work in its environment. 4. Do an initial analysis of the organizations major problems or issues. What challenges confront the organization today for example, in its efforts to attract customers, to lower costs, to increase operating efficiency? How does its organizational design relate to these problems? Organizations major issues: The most challenging issue in front of the company is increased competition in a dynamic marketplace full of weighty competitors such as IBM, Microsoft and SAP AG. Oracles strategy has been one of co-operation as well as acquisition. Since they share many of the same customers, Oracle and IBM tend to support each other's products in many middleware and application categories, and IBM's hardware divisions work closely with Oracle on performance-optimizing server-technologies. Oracle and SAP also has a long history of cooperation. Despite the current SAP partnership with Microsoft, and the increasing integration of SAP applications with

Microsoft products (such as Microsoft SQL Server, a competitor to Oracle Database), Oracle and SAP continue their cooperation. According to Oracle Corporation, the majority of SAP's customers use Oracle databases. In recent years, however, competition between Oracle and SAP has increased, and as a result, the rivalry between the two companies has grown, even developing into a feud between the cofounders of the two companies, where one party would frequently voice strong negative comments about the other company. Acquisition: Oracle acquired Innobase, supplier of the InnoDB codebase to MySQL, in part to compete better against open source alternatives, and acquired Sun Microsystems, owner of MySQL, in 2010. Pricing and Product-Mix to Attract Customers: Oracle Corporation offers term licensing for all Oracle products. It bases the list price for a term-license on a specific percentage of the perpetual license price. It has different product mix (enterprise edition, standard edition etc.) to cater to different customer segments. Oracle frequently provides special training offers for database-administrators.

Chapter: 2
1. Draw a stakeholder map that identifies your organizations major stakeholder groups. What kind of conflicts between its stakeholder groups would you expect to occur the most? Oracle Internal Stakeholders: Oracle Enterprise Repository stakeholders (Portfolio Management Team, Business Analysts, Project Architects, Developers, Registrars, Enterprise Architects, Program Manager, CIO, Executive Sponsor, Governance Champion) Project Implementation Stakeholders (Executive Sponsors, Sr. Management, Business team leads, End users of the application, Project team members) Infrastructure stakeholders (System Administrators, Network Administrators, SAN Administrators)

Oracle External Stakeholder: Clients who use Oracle Product (e.g. IBM, Cognizant, TCS etc.) Government Customers who use Oracle Licensed Version Hardware Suppliers (e.g., IBM, Dell, Intel etc.) Software Suppliers (e.g. IBM, Microsoft)

Oracle Fringe Stakeholder: ATMs outside Oracle Office Restaurant around Oracle buildings Shops nearby Oracle Office, etc.

Kind of Conflicts Most Likely to Occur: After recession during 2008-2010 Salary of all employee of Oracle didnt get increased as expected but the HR / Top Management were trying to convince all employees that salary will be hiked in next cycle with promotions. But, employees are not happy with their statements. This may lead to higher attrition rate. The one constant in database construction is change. At any moment, a smooth running project can be slowed by differing site conditions, design conflicts, supply chain problems or inspection delays. Its simply impossible to sit back and assume youll have the data thats needed to meet regulatory reporting requirements on time. It requires a forward thinking view to anticipate and quickly react to these unexpected changes. Customers are the people who request the system and are responsible for approving it. Usually customers pay for the development of the system. It is important to distinguish between these two groups of stakeholders because sometimes conflicting requirements are provided by both groups. Conflict between operations departments and human resources departments is nothing new. Line managers have and will always disagree with human resources staff on one issue or another. Regardless of what causes conflict between HR and line

management, the company's business model should delineate responsibilities and duties for their respective areas. Conflict between developer & project architect happens too often in company like Oracle. First, architect designs one project work flow after discussing with the Business Analyst. But conflict arises when developer opposes with this architecture.

2. JSR Centre. (To be collated as and when received)

3. Does the company have divisional managers? What functional managers seem to be most important to the organization in achieving competitive advantage? What is the functional background of the top management team? Yes, Oracle has divisional Managers. Functional Managers most important in achieving the Competitive Advantage are: 1. Product Development SVP 2. Software Development Senior Director 3. VP BI Technology 4. Chief marketing Officer 5. VP Corporate Events 6. VP EMEA marketing -North America Marketing, APAC, ANZ The Top Management team consists of:

1. CEO: Mr. Larry Ellison is one of the founders and the CEO of Oracle Corporation since 1977. He also races sailboats, flies planes, and plays tennis and guitar. 2. President and CFO: Mrs. Safra A. Catz has been President of Oracle Corporation since January 2004, a member of the Board of Directors since October 2001, and Chief Financial Officer as of April 2011. She first served as Oracles CFO from November 2005 to September 2008, as Executive Vice President from November 1999 to January 2004, and as Senior Vice President from April 1999 to October 1999. 3. President-Review: Mr. Mark Hurd is President of Oracle Corporation and a member of the companys Board of Directors. He joined Oracle in 2010. As President, he oversees the corporate direction and strategy for global field operations, including marketing, sales, consulting, alliances and channels, and support. He focuses on strategy, leadership, innovation, and customers.

Chapter: 3
1. JSR Centre. (To be collated as and when received)

2. Analyze the effect of forces on complexity, dynamism and richness of the environment. From this analysis, how would you characterize the level of uncertainty in your organizations environment? Oracle is a product-based IT firm. In IT each has an interdependence of various other technologies similar been the case with Oracle. Effect of Complexity: Its products also had dependence on various other technologies. There were lots of uncertainty on the other peripheral products built on multiple technologies and different platforms. As a result, whenever any new versions of these products are launched, Oracle has to make enhancements to its products to make it compatible to these tools and products. This is a major source of uncertainty and to reduce this Oracle started acquisitions. To start with, Oracles very first acquisition was I-flex in year 2006 and till date there have been around 70 acquisitions. Effect of Dynamism: Dynamism in environment was always a cause of uncertainty for Oracle and will always remain. In the this field of technology, advancements will keep

on happening and any IT organization has to be strong enough in its R&D to keep on fulfilling the changing user requirements with technical advances. Keeping this in mind, Oracle has built up a dedicated R&D team that keeps on working on this R&D activity and passes on results to the developments teams. As a result, Oracle is releasing new products/versions in the market. Effect of Richness: The most important resource in IT industry is the skilled workforce. These are the teams possessing special skills or trained on specific technology to perform tasks on a particular technology or platform. The uncertainty faced in this respect is when a resource, who is working on some critical project, takes a separation call from the organization. The problem is to replace that skilled worker with minimum costs. To avoid this uncertainty, Oracle always keeps a backup resource reserve so that in such scenarios they do not face any difficulty.

3. Draw a chart of the main interorganizational linkage mechanisms t(e.g., long-term contracts, strategic alliances, mergers) that your organization uses to manage its symbiotic resource interdependencies. Using resource dependence theory and transaction cost theory, discuss why the organization chose to manage its interdependencies in this way. Do you think the organization has selected the most appropriate linkage mechanism? Why or why not? To manage its symbiotic resource interdependency Oracle uses formal way of interorganizational strategies such as the strategic alliance and merger and takeovers. Oracle follows the strategy of Strategic Alliance with other IT firms, and ITeS and Consulting firms to sell its product and manage its symbiotic interdependency. Oracle has a big-time interdependency on these IT services firms, the reason being these organizations uses Oracle products to develop various applications for end user/customers.

So what Oracle has done is it has developed strategic alliances with these firms and they are called Oracle Partners. Now by building such alliances Oracle pushes its products. The role of these partner firms is to recommend Oracle products for building up a solution for their customers and, in turn, they get some revenue share out of the licenses sold for those products. They also get their resources trained up by Oracle free of cost whenever required and also get technical help from Oracle for their projects. In this way Oracle reduces its Transaction costs. As per the theory Oracle definitely reduces the cost, because ultimately end user/customers come to these firms for a solution or consulting. So instead of spending time and resources on getting business directly from customers, Oracle focuses more towards partner development.

4. In view of the analysis you have just made, do you think your organization is doing a good or a not-so-good job of managing its environment? What recommendations would you make to improve its ability to obtain resources? Out of the six prominent forces of its specific environment namely, customers, distributors, suppliers, unions, competitors and government Oracle is taking care of its suppliers and competitors in both informal and formal ways. For example, its relationship with IBM, which is not only one of its prominent suppliers but also one of its biggest customers, is one good example of symbiotic interdependency and is based on networking as well as reputation and cooptation. Oracle has also used the policy of mergers and takeovers widely. Through its acquisition activities, Oracle seeks to strengthen its product offerings, accelerate innovation, meet customer demand more rapidly, and expand partner opportunities. However, for every new merger and/or acquisition, the company must weigh the transaction costs vis--vis the bureaucratic costs.

Furthermore, to leverage its strong local presence in every EU member state, Oracle is taking up initiatives to help grow the European economy through new technologies, innovation and R&D, supporting education and research, improving social and environmental conditions etc. This can be seen as an important step to manage a crucial stakeholder: the government of each EU country. However, global economic crisis is the most challenging issue these days in front of Oracle which operate in a complex and dynamic environment. Economic, Technological and International forces are going to impact the companys environment in a major way in the coming days. One important recommendation for the company would be to invest more and more in the developing areas of the world. A fast-devaluating rupee decreases the operating costs in India in real value, and India is known for its IT prowess. Oracle should keep such factors in mind and expand accordingly. Increasing global expansion would also open new sources of revenue for the company to leverage.