Ramón Álvarez
Director General
Oracle Mexico
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View from the Top

Moving Everything to the Cloud

Tue, 09/01/2015 - 16:57

Q: How important is the automotive industry for Oracle?

A: On a global level, the top 20 OEMs use Oracle technology. It is true that the degree of involvement depends on the company, but they all use our database and development tools and a large percentage use our Enterprise Resource Planning (ERP) applications. We have wide participation among Tier 1 and Tier 2 companies, especially in manufacturing systems, product integration services, and just-in-time (JIT) delivery operations. Oracle has spent over US$60 billion in supply chain management acquisitions such as Oracle Demantra and Oracle Transportation Management over the last five years, which shows our emphasis on developing more complete solutions. Most OEMs have a clear view of their desired ERP solutions, manufacturing systems, or human resources systems, and moving toward Tier 1 and Tier 2 companies, solutions are adapted based on clients. For most companies, the closer they are to an OEM, the more integration there is with Oracle’s solutions.

Q: How has Oracle adapted to Mexican companies, in terms of working environment, lean manufacturing, and logistic processes?

A: Oracle has two major segments when it comes to logistics solutions. The first one is our supply chain management system which, thanks to Demantra’s acquisition, is positioned as our best solution. The second one is our product lifecycle management (PLM) solution, used for the development of new products, particularly in the automotive industry. While most OEMs do not utilize this technology, they have assembly companies that can reach out to their Tier 2 or Tier 3 suppliers to create new specific products. Such innovations are created with PLM systems through a collaborative development with a number of different tools. Regarding supply chain management, we have a package called Oracle Lean Manufacturing, primarily developed for the automotive industry. The software contributes through the specialization of our solutions regarding JIT, manufacturing, and inventories processes that require advanced demand planning systems.

Q: Now that many OEMs are coming to Mexico and bringing their own supplier base, how will Oracle expand its presence in the industry?

A: Companies that were already providers for these OEMs in other regions of the world most likely have an Oracle solution. This means that once they arrive they can begin operations with the proper tools. Even so, there are some that are looking to expand those solutions. These companies ask Oracle to train their new local workforce, and also seek consulting services to adapt their practices to the Mexican market.

Oracle has internal specialization processes and our commercial workforce is divided into industries, including the automotive sector. Within that commercial group, our specialized agents liaise with any new suppliers, with the help of automotive-oriented partners, in order to implement the fullest and most complete solutions.

Q: What innovations is Oracle developing for the automotive industry? A: Companies can either set up their technology in Mexico or adapt their processes with the technologies they own. One additional trend we see is a migration to the Cloud instead of locally implementing a solution. For example, an OEM provider that has both Oracle and Cloud solutions in its main network systems may purchase a Cloud license to use its software. Oracle believes that Cloud is the future. The installation timeframe difference between products is abysmal, although this is an extremely important process in any industry. Cloud services radically change the way in which the industry works, providing adaptability to any required technology. The Cloud’s elasticity fits all specific necessities depending on highs and lows, and many companies see this as the best solution for managing overhead costs and profitability. By the end of 2015, our goal is to become the most significant Cloud provider worldwide. Oracle’s new approach is to provide any solution through our Cloud network and the automotive industry had one of the highest Rapid Planning demands in the market due to the sector’s complexity. Every player is looking toward customization and tropicalization of its solutions, and with the help of Oracle’s existing solutions coupled with its Cloud network, we expect to facilitate this achievement for many companies.