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Technology Stocks : Oracle Corporation (ORCL)

ORCL 198.80

-5.6%

Nov 21 9:30 AM EST

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To: DeadHead who wrote (17501)	8/29/2002 3:52:56 PM
From: robert b furman	Read Replies (1) of 19079

Hi Dead Head, This is a small example: Starting January 1 all retail dealerships that are Ford, GM(some 7426 dealers alone),and Chrysler dealers will be changing their communication systems with the factory to "Olympus" standards. These will require dsl or T1 in lieu of dial up modems. Applications that will be encompassed will be orders,deliveries warranties plus an extreme amount of daily communication. Normally this data was transmitted thru Pulsat - a privately owned satellite system acquired when GM purchased Hughes. It is now being considered to migrate to a web based system (apparently huge cost savings). In addition GM will be migrating its entire parts business from an antiquated "Rapid system" to a database that will be uploaded daily rather than weekly.This will enable a point and click system between dealers as well as ordering from the factory. Down the road GM will be coordinating a jobber (aftermarket) parts coop that will handle all makes all years.This will be a huge undertaking.They have been running off mom and pop operations and giving large capitalized warehouses regional areas as they migrate to all makes all kinds aftermarket warehouses. In short many smaller companies (like my dealership) will be required to have a separate network for parts - a separate network for departmental one time billing ,and some sort of high speed network to the factory or perhaps the existing satellite network. These will all be implemented by January 03.So 7400 gm dealerships plus I'd guess another 5000 ford and 4000 chryslers are all going thru substantial upgrade /install of MULTIPLE systems. All of this is being driven by cost savings.The factory saves millions by being to supplement its inventory to the existing dealer parts inventory and the old slow system had antiquated costs. Parts delays were the problem of the factory and now my people will be able to locate the part thru a nationwide system.Gm gets huge people savings and productivity gains. The savings justify the creation of what will be perhaps one of the largest of all realtime databases. These kinds of projects are filtering down in many different industries.As the costs of the networks goes lower and the implimentation of the networks is plug and go simple, it will definately be more than slow growth. If anything the savings will be the only way enhanced profits can be saved vs sold. Bottom line growth with stable top line growth will be the future mantra of many businesses,I think. I believe Orcl is well positioned to really be in the sweet spot of the future savings. JMHO Bob

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