A business unit can perform many business functions in Oracle Fusion

Applications. Prior to Oracle Fusion Applications, operating units in Oracle E-

Business Suite were assumed to perform all business functions, while in Oracle
PeopleSoft, each business unit had one specific business function. Oracle Fusion
Applications blends these two models and allows defining business units with one
or many business functions.

Business Functions
A business function represents a business process or an activity that can be performed
by people working within a business unit and describes how a business unit is used.
The following business functions exist in Oracle Fusion applications:

 Billing and revenue management

 Collections management
 Customer contract management
 Customer payments
 Expense management
 Incentive compensation
 Marketing
 Materials management
 Inventory management
 Order fulfillment orchestration
 Payables invoicing
 Payables payments
 Procurement
 Procurement contract management
 Project accounting
 Receiving
 Requisitioning
 Sales

Although there is no relationship implemented in Oracle Fusion Applications, a business

function logically indicates a presence of a department in the business unit with people
performing tasks associated with these business functions. A business unit can have
many departments performing various business functions. Optionally, you can define a
hierarchy of "divisions", business units, and departments as a tree over HCM
organization units to represent your enterprise structure.

Note
This hierarchy definition is not required in the setup of your applications, but is a
recommended best practice.

Your enterprise procedures can require a manager of a business unit to have

responsibility for their profit and loss statement. In such cases, any segment that allows
the identification of associated revenue and costs can be used as a profit center
identification. The segment can be qualified as a cost center segment.

However, there are cases where a business unit is performing only general and
administrative functions, in which case your manager's financial goals are limited to cost
containment or recovering of service costs. For example, if a shared service center at
the corporate office provides services for more commercially-oriented business units, it
does not show a profit and therefore, only tracks its costs.

In other cases, where your managers have a responsibility for the assets of the
business unit, a balance sheet can be produced. The recommended best practice to
produce a balance sheet is to setup the business unit as a balancing segment in the
chart of accounts. The business unit balancing segment can roll up to divisions or other
entities to represent your enterprise structure.

When a business function produces financial transactions, a business unit must be

assigned to a "primary ledger", and a default "legal entity". Each business unit can post
transactions to a single primary ledger, but it can process transactions for many legal
entities.

The following business functions generate financial transactions and will require a
primary ledger and a default legal entity:

 Billing and revenue management

 Collections management
 Customer payments
 Expense management
 Materials management
 Payables invoicing
 Project accounting
 Receiving
 Requisitioning
Business Unit Hierarchy: Example
For example, your InFusion America Company provides:

 Air quality monitoring systems through your division InFusion Air Systems
 Customer financing through your division InFusion Financial Services

The InFusion Air Systems division further segments your business into the System
Components and Installation Services subdivisions. Your subdivisions are divided by
business units:

 System Components by products: Air Compressors and Air Transmission

 Installation Services by services: Electrical and Mechanical

Oracle Fusion applications facilitates independent balance sheet rollups for legal and
management reporting by offering up to three "balancing segments". Hierarchies
created using the management segment can provide the divisional results. For example,
it is possible to define management segment values to correspond to business units,
and arrange them in a hierarchy where the higher nodes correspond to divisions and
subdivisions, as in the Infusion US Division example above.
Senior management with roles:

Lawrence J. Ellison
Chairman of the Board and Chief Technology Officer

Larry Ellison is chairman of Oracle Corporation and chief technology officer. He founded the
company in 1977 and served as CEO until September 2014. Larry Ellison introduces
Oracle’s solutions for PaaS, Oracle Cloud Platform. Launched Oracle
Cloud Platform Services in June 2015. Announced the next generation
of Engineered Systems, the Oracle Server X5-2. Discussed modern
business in the cloud during his 2014 keynote address at Oracle
CloudWorld San Francisco. Larry Ellison discusses the impact of IT on
the healthcare industry and society.

Mary Ann Davidson

Chief Security Officer

Mary Ann Davidson is the chief security officer at Oracle, responsible

for Oracle software security assurance. She represents Oracle on the
board of directors of the Information Technology Information Sharing
and Analysis Center (IT-ISAC), and serves on the international board
of the Information Systems Security Association (ISSA). She has been
named one of Information Security’s top five "Women of Vision," is a
Federal 100 Award recipient from Federal Computer Week, and was
recently named to the ISSA Hall of Fame.
Davidson has served on the Defense Science Board and was a
member of the Center for Strategic and International Studies
Commission on Cybersecurity for the 44th Presidency. She has
testified on cybersecurity to the US House of Representatives (Energy
and Commerce Committee, Armed Services Committee, and
Homeland Security Subcommittee on Emerging Threats,
Cybersecurity, and Science and Technology), and the US Senate
Committee on Commerce, Science, and Technology.

Davidson has a BS in mechanical engineering from the University of

Virginia and an MBA from the Wharton School of the University of
Pennsylvania. She received the Navy Achievement Medal when she
served as a commissioned officer in the US Navy Civil Engineer
Corps.

 Jeb Dasteel
Senior Vice President and Chief Customer Officer

Jeb Dasteel is senior vice president and chief customer officer at

Oracle. He is responsible for driving customer focus into all aspects
of Oracle's business. In this capacity, Dasteel serves as a customer
advocate and works with the Oracle organization to develop and
deliver customer programs that increase customer retention, value
delivered, satisfaction, and loyalty. He has been with Oracle for 18
years in a number of corporate and field-based roles. Prior to joining
Oracle in 1998, Dasteel worked as an IT strategy and business
consultant at Gemini Consulting, helping Fortune 500 organizations
define and implement IT strategies that supported their business
objectives.

 Mark Hurd
Chief Executive Officer

Mark Hurd is chief executive officer of Oracle Corporation and a

member of the company’s board of directors. He joined Oracle in
2010, bringing more than 30 years of technology industry leadership,
computer hardware expertise, and executive management experience
to his role with the company.
Mark Hurd manages corporate direction and strategy at Oracle,
facilitating company activity in consulting, sales, marketing, alliances
and channels, and support. He is also responsible for Oracle’s global
business units for industries, creating products for specific markets
and industries such as telecommunications, financial services, health
sciences, and utilities. Since joining Oracle, Hurd has worked to share
Oracle’s strategy and vision with customers, partners, shareholders,
and investors.
 Douglas Kehring
Executive Vice President, Chief of Staff, and Head of Corporate
Development

Douglas Kehring has served as Oracle's executive vice president,

chief of staff since March 2015. As chief of staff, he is responsible for
helping drive Oracle’s business transformation to the cloud, including
organizations, systems, and processes. In early 2016, Oracle
launched a critical component of that transformation, the Oracle
Accelerated Buying Experience, that allows customers to purchase
Oracle Cloud services quickly and easily.
Kehring also continues to serve as the head of Oracle's corporate
development group, a position he has held since 2005. The corporate
development group provides planning, advisory, execution, and
integration management services to Oracle on mergers and
acquisitions, source-code and object-code licensing, strategic
investments, joint ventures, and other related transactions.

 Thomas Kurian
President, Product Development

Thomas Kurian is president of Oracle product development and

reports to Oracle executive chairman of the board and chief
technology officer Larry Ellison. He is responsible for leading software
development and transitioning the company’s technology to Oracle
Cloud. For the past several years, Kurian has been responsible for the
Oracle Fusion Middleware family of products. Under his leadership,
that business became the fastest-growing within Oracle and the
industry’s leading middleware product suite. Since 2008, Kurian has
also led the development for Oracle’s next-generation business
applications, Oracle Fusion Applications.

Kurian has been with Oracle since 1996, holding various product
management and development positions. Prior to joining Oracle, he
worked as a consultant in London, Brussels, and San Francisco with
international management consulting firm McKinsey & Company,
serving clients in the software, telecommunications, and financial
services industries.

 Edward Screven
Chief Corporate Architect

Edward Screven is chief corporate architect at Oracle. Reporting to

Executive Chairman and Chief Technical Officer Larry Ellison, he
drives technology and architecture decisions across all Oracle
products to ensure that product development is consistent with
Oracle's overall strategy. An Oracle veteran since 1986, he is
responsible for Oracle's open-source businesses, including Linux,
virtualization, and MySQL. Screven also leads company-wide
strategic initiatives, including industry standards and security.

 Judith Sim
Chief Marketing Officer

Judith Sim is chief marketing officer at Oracle Corporation. Sim

joined Oracle in 1991 and has held various customer-related and
marketing positions during her tenure. Currently, she is head of
corporate marketing programs, including corporate communications,
global customer programs, advertising, campaigns, events, and
corporate branding.

 Mark Sunday
Chief Information Officer and Senior Vice President

Mark Sunday is chief information officer and senior vice president at

Oracle. He is responsible for providing the global communications,
computing, and security infrastructure that enables Oracle’s internal
business operations as well as a variety of hosting and education
services for Oracle customers.

Additionally, Sunday and his team strive to be the first adopter,

biggest influencer, and best promoter of relevant Oracle technologies.
He routinely shares his insights in optimizing business results through
the use of technology, developing world-class global teams, fueling
innovation, and enabling IT operational excellence.

Prior to joining Oracle in 2006, Sunday was senior vice president and
chief information officer of Siebel Systems. With more than 30 years in
the high tech industry, he has also served in various IT leadership
positions at Motorola, ST Microelectronics, and Texas Instruments.
Sunday holds a BSE from the University of Michigan and an MBA
from Southern Methodist University.

 Joyce Westerdahl
Executive Vice President, Human Resources

Joyce Westerdahl is leading Oracle HR’s cloud transformation to

ensure that business leaders and more than 135,000 employees are
enabled to achieve Oracle’s mission to be the number one cloud
company in the world. Since taking the lead of Oracle HR in 2000, she
has continuously implemented a roadmap of progressive HR
modernization initiatives intended to keep Oracle at the leading edge
of technology innovation.

In 1999, Westerdahl led the effort to convert HR management from

manual processing to a web-based, self-service model, increasing
organizational agility. In 2000, she continued the HR transformation
taking Oracle from multiple instances to a global, single instance of
the HR information system (HRIS), which vastly streamlined HR
processes and reporting, and ensured the company could deliver on
its robust acquisition strategy. Since 2005, Oracle HR has integrated
more than 100 acquisitions.

Westerdahl continues to transform HR by leveraging Oracle HCM

Cloud technology to provide better visibility, utilization, and
development of the company’s talent pool; more insightful analytics to
drive informed business decisions; improve the impact of
compensation models; and more effectively recruit, hire, and onboard
the right talent. The latest effort in the modernization of Oracle HR is
moving self-service transactions to a more user-oriented experience
and taking advantage of the continuous product innovation cycle in
Oracle HCM Cloud.

Westerdahl joined Oracle in 1990 and has held positions in both line
and corporate HR. She is passionate about sharing best practices and
frequently speaks with customers and partners about Oracle HR’s
journey and the results that continue to transform the HR organization
and the business. She has participated for more than 15 years as a
mentor for young women and contributes her time to helping students
gain industry-relevant skills prior to entering the workforce through
Oracle Academy and the Oracle Education Foundation. She is also
the executive director for the Oracle Women’s Leadership program
(OWL).

Business information Systems:

In 1999, Oracle announced plans to implement and use its own database and business
applications to run its worldwide operations. As the company reaped benefits in efficiency and
cost savings, the transformation served as a guide for and a fellowship with customers that were
also wrestling with the effects of doing business globally and integrating acquisitions quickly and
cost-effectively. Since 2004, Oracle has been running on Oracle E-Business Suite 11i in a GSI
that consolidated 70 separate Oracle E-Business Suite 11i instances at a cost savings of
between US$1 billion and US$2 billion dollars annually.
In January 2008, Oracle successfully executed a three-pronged upgrade to its GSI: moving from
Oracle E-Business Suite 11i to Oracle E-Business Suite 12, implementing Siebel CRM, and
installing a global corporate data warehouse.
No Longer Single, but Certainly Global
Oracle’s upgrade to Oracle E-Business Suite 12 was straightforward, with one notable
exception: the GSI has been split into two instances. Although the company could have
continued to run exclusively on Oracle E-Business Suite applications, it chose to take
advantage of its flagship Siebel CRM product. Today, all the lead processing, partner
management, opportunity management, sales forecasting, territory management, campaign
management, and marketing are done with Oracle’s Siebel products. When an opportunity
becomes a quote, a contract, or an order, it flows into Oracle E-Business Suite functional
applications, where it joins the rest of Oracle’s global enterprise resource planning (ERP)
systems, including the general ledger.

Oracle Business Intelligence Suite Enterprise Edition is used by the Siebel CRM system for
reporting, and Oracle has leveraged the business intelligence implementation required by the
CRM system to create a single, global platform for the corporate data warehouse and extended
the data warehouse to include ERP data from Oracle E-Business Suite.

Although Oracle E-Business Suite and Siebel CRM functionality were similar, Oracle chose to
run the Siebel products. This decision drove global process standardization across the sales,
marketing, and partner organizations, allowing Oracle to eliminate a number of systems that had
been maintained despite the push toward process simplification and standardization.

Oracle’s internal implementation is the world’s largest implementation of Siebel CRM 8 to date.
As well, Oracle’s internal implementation of Oracle Business Intelligence Applications 7.9.1 for
Siebel CRM 8 content and the July 2008 implementation of Oracle Business Intelligence
Applications 7.9.4 for Oracle E-Business Suite 12 ERP content will be the world’s largest
implementations to date. In this way, Oracle is gaining valuable insights that allow it to truly
understand its customers’ needs and partner with them as they move forward in their own
business evolutions.

Results Count: Proving the Value

Oracle has been live on its new global systems since January 2008, using them to
successfully run the business in the third and fourth quarters of FY08. The systems have
been used to service every phase of the customer cycle, to carry out the work of the
corporation, and to report the company’s quarterly results. According to Fuller, “ We learn so
much when we use our own software to run our business. And when we share best practices
and the lessons we’ve learned, our customers benefit with increased returns on their Oracle
investments.”