OIC: Adapt or Perish

Wednesday, March 25, 2015 @ 03:03 PM gHale

By Gregory Hale
The landscape is changing and every company, big or small, needs to adapt or else they may just go away.

That was the message shared by Oracle Chief Executive Mark Hurd during his Wednesday keynote at the Oracle Industry Connect 2015 in Washington, DC. With Baby Boomer workers getting ready to leave the workforce over the next three years, the millennial workers are starting to come in and take their place. The catch is, Hurd said, they are much different than today’s workers are.

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“Millenials are the least loyal customers that are out there,” Hurd said. “You don’t produce, they find someone that will.”

In the older generation, “if we had bad service, we just yell at them and they would give us a coupon and we would go on our way. Now the leverage has changed. Millennials use social media go to Twitter, Facebook or YouTube.” They will let the world know about a bad customer experience. Conversely, if there is a positive or outstanding experience, they same thing can happen where the whole world will know about it. That could be a major opportunity.

In the end, it all comes down to people being there for people.

“Business is all about making the right decision at the right time that makes a difference,” Hurd said.

One of those business moves is making a big push in eight different industries that have a huge market growth and utilities was one of them.

“We want to bring discrete applications into the industries that are unique to the industries. Utilities are trying to reach the end customer from the meter. It is now a bigger deal to reach customers and they want to automate the relationship to reach the customer.”

Global GDP is $71 trillion, Hurd said and IT represents 3 percent of that figure, or $2.069 trillion. With that amount of spend, half goes toward the consumer side and the other half is from companies.

For companies the spending has been flat and consistent over the past 10 years with 82 percent of the spending focused on maintenance while the remaining 18 percent going toward innovation.

The consumer side on the other hand had IT spending at $250 billion 10 years ago and it is now at $1 trillion.

With IT budgets strained, it only makes sense to move to a platform that costs less and gives more benefits. That is where greater usage of the cloud comes into play.

“Customers want simple,” Hurd said. “They want to do less work. They don’t want to glue together piece parts. That is why the cloud is so attractive.”

As the level of business gets more intense, today it is all about making an informed and correct decision.

One of the facts Hurd pointed out was 50 percent of companies listed in the Fortune 500 in 2000 have gone out of business.

“It is all about survival,” Hurd said. “As a CEO, I will tell you how many friends you have: Zero.”

As a CEO, no one cares about you, he said. No one wants to know the family and what is new with the kids, all they want to know how the company is doing. They want to know the growth strategy.

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