Speaking at Oracle’s annual Modern Supply Chain Experience event in San Jose, California, Mark Hurd shared his perspective on the future of supply chain management. Hurd recognized the rapid pace of change and how businesses can respond through cloud-based innovation. He discussed the current state of the IT industry, focusing on macroeconomics and the benefits of cloud computing. He also revisited his predictions on the future of the industry from Oracle OpenWorld 2017.
Hurd began by reviewing the current macroeconomic climate of the IT industry, noting the challenge for companies to outpace GDP growth without taking market share from rivals. Citing a recent healthcare company proposal, Hurd noted how a press release can impact stock price and Wall Street activity, disrupting business and creating additional management factors for CEOs and CFOs to consider. He also expressed the need for companies to react quickly to industry changes and disruptors, observing that half of the companies that were on the Fortune 1000 list in 2000 have disappeared.
Recognizing contributors to this trend, Hurd noted that the average application was built over twenty years ago, before the adoption of mobile devices and internet connectivity, and much of the spend in IT today is “spent keeping the status quo the status quo.”
Examining the history of the industry, Hurd described system fragmentation as companies turned to multiple vendors and partners for both hardware and software. He outlined the rise of the systems integration industry in California as well as the security and maintenance issues this fragmentation caused by creating independent systems that don’t work together. Hurd also detailed changes in both consumer and business purchasing behavior, with availability rapidly becoming a key factor in technology purchasing decisions. This shift in expectations has created the need for not only new systems, but processes built with different understandings of customer demands and a more integrated approach, with cloud computing offering a connected solution.
Hurd discussed the benefits of new cloud technology, featuring a lower total cost of ownership paired with increased security and quicker access to the latest innovations. He noted the efficiency increases and cost reductions available in supply chain logistics from the increased communication brought by a suite of interconnected applications. Hurd also reiterated that the existing mode of IT is not sustainable and that the move to the cloud is an inevitable, generational shift.
Hurd ended his presentation with an update to his cloud adoption predictions. Citing new industry research from analysts affirming the decrease in corporate data centers, Hurd noted the need for CEOs and CFOs to leave the capital structure of data centers and cost of customizations, with the cloud business model offering one solution with faster patch time and new feature integration. Hurd closed by describing the flexibility of cloud transitions to fit business needs, stating, “You don’t have to make monolithic changes with these technologies, you can do this thing modularly. You don’t have to rip everything out… you can start with various modules and begin the transition.”
Mark Hurd is the chief executive officer of Oracle Corporation and a member of Oracle’s Board of Directors. Under the leadership of Oracle founder and executive chairman Larry Ellison, Hurd joined Oracle in 2010 and became CEO in 2014 with Safra Catz. Leveraging thirty years of business experience in the technology industry at NCR Corporation and Hewlett-Packard, he oversees corporate direction and strategy as Oracle and its workforce become leaders in the cloud computing space under Hurd’s tenure.
Get more information about Mark Hurd here: https://markhurd.com