1. Oracle vs. PeopleSoft David Fox James Hill Matt Tschabold

2. Oracle PeopleSoft Why The Take Over? What is ERP? The Takeover Major Players Recap

3. Founded in 1977 Founded by Larry Ellison Roughly 55,000 Employees Services provided include: Database Software Security Data Warehousing Enterprise Management Software Consulting RFID’s, Radio Frequency Identification and more…

4. Founded in 1987 Founded by Dave Duffield & Ken Morris Primary Focus on ERP Software One Week before the start of the Oracle hostile take over PeopleSoft offered a bid to take over J.D. Edwards for $1.7 billion, which would have made PeopleSoft the second largest ERP software company

5. To begin Oracle was in a database market with stiff competition and profit margins becoming slim and markets becoming stale Oracle needed to expand into a newer market which would help it regain their success ERP, Enterprise Resource Planning, was seen as one of the waves of the future and an attractive market to enter To pursue ERP software there were two options; development or acquisition Oracle chose to acquire a company and found only two options; PeopleSoft and SAP A restructuring led to an attempt at an ERP induced takeover with PeopleSoft rather than SAP due to the total cost and feasibility

6. What is ERP? Management Information Systems integrating and automating business practices associated with the operations or production and distribution aspects of a company engaged in manufacturing products or services. ERP incorporates: Manufacturing, Logistics, Distribution, Inventory, Shipping, Invoicing, Accounting. By bringing in an ERP consultant each firms receives a unique ERP system which integrates all of the functions above though a highly complex software system.

7. Why ERP? Advantages: With out a system in place, software applications may not be able to communicate in an effective interface. It can change how a product is made either more efficiently of effectively. Computer securities included with each ERP system to prevent internal and external theft and data tampering. Front office and back end operations can be integrated using an ERP model. Disadvantages: Inadequate levels of investment and ongoing training for the personnel involved. There are limitations to ERP programs. Success depends on skills of the workforce, personnel turnover, expensive to install, ERP vendors charge annual license fees, tech support issues, ERP’s are sometimes seen as too rigid and difficult to use, can suffer from “weakest link” problem, high switching costs.

8. June 6 th 2003: Oracle begins with by ambushing PeopleSoft with a hostile takeover bid of $5.1 billion Bid takes place days after PeopleSoft agreed to a $1.7 billion dollar deal with JD Edwards To resist the take over bid and bids in the future PeopleSoft pursued many options reassurance to the shareholders of both higher profitability and reliability without a merger poison pills spread throughout the attempt better severance packages for staff Anti trust lawsuits on competitiveness July 18 th 2003: PeopleSoft completes its merge with JD Edwards

9. Oracle takes suit against PeopleSoft in the first of many court battles to get poison pills removed In February and March of 2004 both the DOJ & European Commission agree that the deal was anti competitive further halting the attempted acquisition Microsoft announces serious consideration into an acquisition of SAP This announcement works in favor of Oracle claiming that due to stronger competition the merger will not be anti competitive As a result of this information and a long court battle, Oracle is victorious in their claims of having the merger not being anti-competitive

10. After the lawsuit on anti competitiveness was resolved Oracle once again bids on PeopleSoft Severance packages are increased as a result PeopleSoft fires Conway due to lack of faith in his leadership ability Claims on the true worth of PeopleSoft by the founder of PeopleSoft circulated Once again the courts intervene to gauge what the true worth of the company is In the court cases Oracle promises to support PeopleSoft customers until 2013 As a result of these actions Oracle brokers a deal to close out the acquisition at $10.3 billion

11. SAP Oracle Applications Microsoft Dynamics (Formerly Microsoft Business Division) The Sage Group SSA Global Technologies Lawson Software Visma Industrial and Financial Systems Exact Software QAD Epicor NetSuite SIV.AG 24SevenOffice

12. Oracle PeopleSoft Taken Over Prompted by Oracle’s Desire to Have ERP ERP is Designed to Improve Productivity The Takeover Major Players