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Insert Picture Here Public SectorTransportationRalph MenzanoExecutive Director

Safe Harbor StatementThe following is intended to outline our generalproduct direction. It is intended for informationpurposes only, and may not be incorporated intoany contract. It is not a commitment to deliver anymaterial, code, or functionality, and should not berelied upon in making purchasing decision. Thedevelopment, release, and timing of any featuresor functionality described for Oracle’s productsremains at the sole discretion of Oracle.Oracle. All rights reserved.2

Oracle in the Transportation IndustryRalph MenzanoExecutive Director, Transportation610.212.8022ralph.menzano@oracle.com Former SEPTA CIO/VP of Technology Former CIO/VP of Technology, JPMorgan Chase Bank, GM, St. Gobain BA, MBA Villanova Gartner cover story Chair APTA IT Committee Adjunct Professor at Univ. of Penn. Board Member, Villanova UniversityMemberships:Author of “Making IT Happen”Oracle. All rights reserved.

Oracle Travel and Transportation IndustryDefinitionAviation Airlines Airports Air CargoRoadwaysPorts & Shipping Ocean Carriers Seaports Shipyards DMVsRail Freight Railroads Inter-CityPassenger Railways Mass Transit Light RailHospitality Travel Agencies Tourism HotelsCasinosGDS/CRSCar RentalsCruise LinesToll RoadsMission: Establish Oracle as the leading provider of enterprise business andinfrastructure software and hardware to the Travel and Transportation Industry.Oracle. All rights reserved.

Oracle in Public Sector TransportationMarket Pervasiveness50 of the Top 100 North American AirportsRunOracle Applications30 of the Top 40 North American Transits RunOracle Applications23 of the 50 State Highway Departments, 11 oftop 20 Toll Roads Run Oracle Applications12 of the Top 20 North American Seaports RunOracle ApplicationsFederal Departments of TransportationFRA, FAA, FHWA, FMC, FTA, & TransportApplicationsOracle. All rights reserved.IncludingCanada Run Oracle

Oracle in Ports & Shipping3 of the top 5 port operators owning more than100 ports run Oracle Applications7 of the top 10 ports run Oracle Applications7 of the top 15 shipping companies run OracleApplications8 of the top 10 ports run Oracle TechnologyOracle. All rights reserved.6

Oracle AcquisitionsMiddleware Platformand ManagementBusiness IntelligenceIdentity & AccessManagementPerformanceManagementEnterprise ContentManagementData Integration(Pending)Operating SystemsSystems ManagementOracle. All rights reserved.Virtual Machines

Managing WITH IT in the Public Sector-- Course for University of Pennsylvania,-- Fels School of GovernmentOutline:Why was course deemed necessary?Planning for IT SuccessJustifying IT ProjectsTechniques for IT Achievements

23 States Ranked in Fortune 100 (in 2006) 2005 Center for Digital Government. All Rights Reserved. Quote with Attribution Only1. Wal-Mart Stores 2882. Exxon Mobil 270FLORIDA ( 61)20. JP Morgan Chase 563. General Motors 193OHIO ( 54)4. Ford Motor 172PENNSYLVANIA ( 52)5. General Electric 15230. Johnson & Johnson 436. Chevron Texaco 147ILLINOIS ( 43)7. Conoco Phillips 121MICHIGAN ( 41)CALIFORNIA ( 112)8. Citigroup 108NEW YORK ( 107)9. Amer. Intl. Group 9810. Intl. Business Mach. 9614. Verizon Comm. 71TEXAS ( 69)45. Sears Robuck 36MASSACHUSETTS ( 34)NORTH CAROLINA ( 32)GEORGIA ( 32)54. Walt Disney 30VIRGINIA ( 30)NEW JERSEY ( 27)MARYLAND ( 26)Source: Center for Digital Government fiscal year 2005-2006 estimates; The 2005 Fortune 500WASHINGTON ( 26)WISCONSIN ( 26)76. Honeywell Int’l ( 75)TENNESSEE ( 25)78. Fedex 24MINNESOTA ( 24)INDIANA ( 21)OREGON ( 21)ALABAMA ( 21)90. MCI 22KENTUCKY ( 20)

Evolution of Ideas in rtunityEarly cessityCookbook- HighRisk- Long time toimplement- Potential ROI- Moderate Risk- Moderate timeto implement- Proven ROI- Low Risk- Short time toimplement- Moderate ROIExampleExampleExample- PC’s in 1985- PC’s in 1990- PC’s in 1995- No Risk- Implement forsurvival- Negative ROI ifnot doneExample- PC’s in 2000Source: Competing in Time: Using telecommunications for CompetitiveAdvantage, Peter G. W. Keen, 1986/1988, Ballinger, Cambridge, MA

Evolution of Computing TechnologyProductivityNetwork puting1970-19851985-20002000

Technology In The Transit IndustryProductivityLost twork EnabledComputing1985-20002000

DriversBusinessStrategyApplicationPortfolio PlanOperational NecessitiesCompetitive NecessitiesCompetitive OpportunitiesTechnologyPlanning TriadInfrastructurePlanRapid DeploymentTacticsResource( & People) PlanValue-AddedSystems

Business Justification of IT ProjectsHighLegalRequirementRevenueEnhancementEase tageLowHighResonance With Executives

System Development MethodologyPhase 1 - PlanPhase2 -2DesignPhase- DesignPhase 3 - BuildDesignate OpsManagerCreate ProjectTeamCreate SponsoringTeamPhase 4 - ImplementSystemInstalledSet SystemExpectationsCreate ProjectControlProjectPlanSoftware m Design& PrototypeGo BackTo ProposalNoCompleteProject RolloutTrainingNoRevised ProjectProposalYesNoYesApprovalApprovalGo To Go BackPhase 2 To WorkPost-ProjectReviewGo ToPhase 3Go BackTo WorkGo ToPhase 4

The Maintenance ParadoxTime100%0%Start-UpMaturityLongEstablished

Solution to the Paradox.Strategic SourcingTime100%Strategic Sourcingof Non-Core Services0%Start-UpMaturityLongEstablished

Strategic Sourcing Techniques Piggyback Procurements– State Contracts -- Competition Managed by Commonwealth ofPennsylvania; eliminate the need for internal attorney oversight Commercial Off-The-Shelf Software– Development effort“Outsourced” to Commercial software house Fully Loaded Hardware Purchase– Includes Set-Up, Migration, Maintenance, & Disposal Internship Programs– Staff Augmentation In Exchange For Workplace Experience General IT Blanket Contracts– On-Demand Staff Augmentation Without Long-Term Commitment Managed Services– Web Site Hosting, Application Service Provider’s, PublicInfrastructure

Managing WITH IT in the Public Sector-- Course for University of Pennsylvania,-- Fels School of GovernmentWhat’s Next ?-- Business Intelligence-- Enterprise Content Management-- Enterprise 2.0

9/11 Crisis in the Airline IndustrySouthwest Airlines adapts with Oracle BI83 million passengers a year63 destinations3300 flights a dayNeedsAfter Determine how long cash Ability to forecast within 2% ofbalances of 1 billion would last– immediately Develop capital spending plansand 15 month rolling forecastsin 1 day Create business cockpits forexecutives and other functionalareas to track key metricsoutcome, providing top-bottomand bottom-top analysis Analysis provided comfort level(no employees laid off; no needfor government loans) Finance moved to spending10% accumulating data and90% analyzing (75% / 25%before) 2009 Oracle Corporation – Proprietary and Confidential20

The Manifestation of “Accountability & Transparency” inPublic Sector rocurementAnalyticsBI ToolIncidentAnalyticsWarehouse cs

Internship Programs -Staff Augmentation In Exchange For Workplace Experience General IT Blanket Contracts -On-Demand Staff Augmentation Without Long-Term Commitment Managed Services -Web Site Hosting, Application Service Provider's, Public Infrastructure