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February 2013

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Oracle Business Intelligence Applications Deliver A Three-Year, Risk-Adjusted ROI of 97 Percent

To help customers understand the value and impact of an investment in business intelligence applications, and to demonstrate the quantitative and qualitative benefits of Oracle Business Intelligence Applications, Oracle recently commissioned Forrester Consulting to conduct a Total Economic Impact (TEI) study of the solutions. The study found that Oracle Business Intelligence Applications can deliver a three-year risk-adjusted ROI of 97 percent.1

“I believe this study demonstrates that by integrating business intelligence at the application layer, Oracle Business Intelligence Applications enable users with all levels of technical expertise to make valuable and profitable decisions,” says Rashmi Vittal, director of product marketing, Oracle Business Analytics.

After conducting in-depth interviews with four Oracle Business Intelligence Applications customers who shared quantitative and qualitative results, the study found that the companies realized the following key benefits:

  • 97 percent ROI.2 A three-year risk-adjusted return on investment of 97 percent with a 20-month payback period.
  • Lower procurement spend.3 Five percent lower procurement costs in the first year, which increased to 7 percent in the second year.
  • Accounts payable savings.4 More than US$1 million per year in savings by the third year.
  • Lower inventory working capital.5 A 15 percent reduction in inventory for affected product categories over three years.
  • Increased gross sales and prices. Increased gross sales by 0.4 percent in affected parts of the organization,6 and increased average sales price by 0.3 percent7 over three years.
  • IT and business labor savings. Efficiencies in both the IT and business sides of the organization.

Forrester’s TEI analysis measures costs and benefits in areas typically accounted for within IT. It also weighs the enabling value of a technology in increasing the effectiveness of overall business processes. This study provides enterprises with a framework by which to evaluate the potential financial impact of Oracle Business Intelligence Applications.

About Oracle BI Applications
Oracle Business Intelligence Applications are complete, prebuilt business intelligence solutions designed to deliver intuitive, role-based intelligence across every level of an organization, from front-line employees to senior management.

Designed for heterogeneous environments, these solutions enable organizations to gain insight from a range of data sources and applications, including Oracle E-Business Suite, Oracle’s PeopleSoft, Oracle’s Siebel CRM, Oracle’s JD Edwards EnterpriseOne, and Oracle Fusion Applications, as well as SAP and other third-party sources.

Read the Total Economic Impact study.

1 Source: “The Total Economic Impact of Oracle Business Intelligence Applications," a study conducted by Forrester Consulting on behalf of Oracle, October 2012.
2 Composite organization achieved this return.
3 This benefit was realized by three of the companies surveyed.
4 US$1 million in savings represents composite organization savings in total over three years.
5 15 percent reduction in working capital is for the composite organization held constant over three years.
6 0.4 percent improvement is for composite organization at a gross margin of 40 percent.
7 Composite organization achieved 0.3 percent increase in sales margin.

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