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The Creative Destruction of Oracle

Although Oracle was one of the last major software companies to launch itself in the cloud, he married the idea of ​​creative destruction in a breathtaking way. With BYOL – Bring Your Own License – the company has inspired a move from its traditional software customers to its infrastructure cloud.

With the recently announced Soar program, Oracle has embarked on an effort to translate customers and their legacy applications to Fusion applications running in the cloud.

He continued the translation exercise on Tuesday, offering a new online learning platform called "Oracle LaunchPad", as well as elements such as free QuickStart learning events. and a Starter Pack for a guided education.

Oracle also announced a very flat customer service modality consisting of platinum level service for each customer – free of charge – and personalized service at prices determined by need.

It's worth noting that this sounds a lot like the Salesforce Trailhead program, which is an autorythmated educational system with learning and gamified testing, online content and a little more. My point of view is not so much to go into all the goodness of Salesforce as to say that it looks more like an example of convergent evolution than a simple copy.

What is convergent evolution?

To digress briefly, convergent evolution occurs when something – say structures like the eye or the wings – evolves several times but independently. Take wings, for example. They have evolved independently in insects, birds, pterosaurs and bats. In other words, if there is a result you are aiming for, there are very few ways to achieve it. (Thank you for letting me scratch this itch.) So you have to wait for an overlap.

In this case, Oracle tries to disrupt its service model by proposing a mode that corresponds to the new reality rather than adapting its old features. It's hard to disagree with that. However, Oracle sees its mission a little differently from other providers because it has to convert or migrate a huge installed base from the existing world to the cloud, while others could start their efforts in the cloud more easily.

Oracle's customers are mostly businesses or small businesses that might have less tolerance for migrations that are "efficient" than 90%. With this as reality at ground level, it makes sense to be as proactive as possible with service and support. Hence the offer of free service and education at the platinum level.

In the mix

Much of the non-call center portion of the offer is online and asynchronous, which means that a lot of content and training modules are available to customers on their terms.

It includes the following elements:

  • Comprehensive Training Paths for All Positions: Adapted to the specific needs of administrators, performers, and business users, learning paths guide users through their training. cloud learning. skills and topics.
  • Searchable Content: Powerful filtering capabilities help users find the training they need. Users can search and choose where to start by filtering the role, skill level, cloud service, and functional area into a cloud service.
  • Custom Dashboard: Users can edit their learning profile to better identify training topics that meet their specific needs.
  • Gamification and Tutorials: The modules feature integrated product images and videos with demonstrations. As users complete the modules, they can answer quizzes and earn points and badges that accumulate throughout the process.
  • Live Events Start: Live Quick Start events allow customers to learn Oracle experts and ask questions in a live forum.

The new programs will cover Oracle cloud offerings in ERP, SCM HCM, EPM and, more importantly, for the world of CRM, CX. But first look for the most robust coverage in North America.

My two bits

Whether you're a bird or a bat, a program like this looks like wings for me. That's what the company had to do to be an actor, because whatever the financial benefits associated with moving to the cloud, customers would not bet on their business without a guarantee of success.

We used to discuss creative destruction in terms of equipment or devices – things that last. However, our understanding has expanded over most of the century since Joseph Schumpeter formulated the concept for the first time. Today, we better understand that it really applies to all the products we deliver to customers – the "things" and services that promote success and satisfaction.

From the beginning, Oracle realized that cloud and subscription-related business models represented high and unacceptable business risks in the form of attrition and churn. The company worked to reduce the risk in its model, and Tuesday's announcements are a good example of how. In the process, you may have to say that Oracle is becoming a different business – another example of convergent evolution.


Denis Pombriant is a well-known analyst, strategist, editor and speaker in the CRM industry. His new book, You Can not Buy Customer Loyalty, but You Can Earn It is now available on Amazon. His 2015 book, Solving for the Customer is also available here.
Email Denis.

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