1. Project Overview Sun Microsystems Analysis Term Paper Alexander Shusta

2. Industry Definition and Overview Enterprise level computer and accessory manufacturers. Major players in the industry – IBM, Sun, Hewlett Packard, Dell and Microsoft.

3. Competition is generally: Through differentiation Across many markets Supported by innovation and alliances.

4. Conclusions: Intra-industry competition is the number one source of pressure. Commodification of IT related technologies is eroding margins.

5. 0 50000 100000 150000 200000 250000 300000 350000 400000 199920002001200220032004 Total Sales for Enterprise Computer Manufacturing In millions of $

6. Sun Microsystems Profile CEO: Scott McNealy Last of the original founders still at Sun Management style emphasizes company vision and allowing subordinates to create specific strategies A true believer in technological advantage leading directly to competitive advantage.

7. Senior Executives Sun has 5 business units: Marketing and Strategy Worldwide Operations Sun Services Global Sales R&D – Hardware, Software, and Storage Systems.

8. Culture at Sun Use of IT to Gain Competitive Advantage Driven by a recognized need to improve business processes. Improved processes with: tighter integration with suppliers, better ability to forecast demand, ability to present a unified face to customers. Value is placed on innovation and technological solutions. There is a strong bias against technology that was “not born here.”

9. Business Process Analysis “ It became very clear that we needed to pull the whole company, and all of its systems, to a common base. We needed to have a better handle on our data. We needed to be able to provide Sun Services, our Global Sales Organization, as well as our finance departments with a more macro-level picture of what was going on with our customers at any point in time. ” - Michaele Rittenberg, VP of IT Strategy Results of this Analysis: Portals for Suppliers, Customers, and Sales Force. Intranet for developers and production managers to give real-time info. Sun Sigma program to implement Six Sigma controls on production processes.

10. Conclusion Sun’s Use of IT is Characterized by: An executive team that publicly supports IT initiatives. Strong employee buy-in of new systems (98% utilization rate for Sales Force Portal). Funding availability for new IT initiatives. Sun’s Business Processes have been a problem in the past, changes implemented: Integration with OS’s besides Solaris: New N1 Services Procurement System runs on Solaris, Linux, and Windows XP Server emphasizing open standards and compatibility. Acceptance of the value of other vendor’s technology. Ex. Partnership with AMD for new Opteron based servers.