Oracle Rolls Out New Application - Analyst Blog

Oracle Corp. (ORCL) has introduced the PeopleSoft Mobile Inventory Management application, an important addition to its portfolio of inventory management and mobile solutions.

The PeopleSoft Mobile Inventory Management application enables users to perform common inventory transactions through handheld devices, personal digital assistants and radio frequency scanners, using Microsoft Corp.'s (MSFT) Windows operating system.

The ability to perform the transactions on wireless devices would result in real-time transaction processing, thus ensuring greater accuracy of data at any given time. The increased accuracy of data would in turn enable companies to project both stock and labor requirements more accurately, thus saving costs, such as inventory carrying costs and labor charges. Therefore, the tool is designed to improve operating efficiencies and margins of companies deploying it.

The Mobile Inventory Management application is an enhancement to Oracle's PeopleSoft Enterprise Supply Chain Management solution, an integrated suite of applications that streamlines planning and manufacturing and helps organizations to take critical supply chain decisions at real time and at minimum cost.

The application works on the flexible platform provided by Oracle Application Development Framework (ADF), as an integral part of Fusion Middleware 11g. ADF Mobile extends Oracle Application Development Framework to mobile users, through its two parts ADF Mobile Client and ADF Mobile Browser.

Oracle's highly integrated Supply Chain Management (SCM) tool powers information-driven supply chains. With Oracle SCM, companies can predict market requirements, innovate in response to volatile market conditions and align operations across global networks. Oracle, with its comprehensive solutions, services and support, already has more than 20,000 of the world's biggest companies as customers.

According to research firm Gartner Inc., supply chain management will be one of the fastest growing application software markets in 2011. We believe companies such as Oracle, Epicor Software Corp. (EPIC), Microsoft Business Solutions Inc., JDA Software Group Inc. (JDAS), SAP AG (SAP) will benefit from this strong growth over the long term.

Recommendation

We are positive on Oracle's longer-term growth prospects given its growing market share, focus on improving profitability, new product pipeline, cost saving initiatives and robust free cash flow. We maintain an Outperform rating on a long-term basis (6–12 months).

Currently, Oracle has a Zacks #2 Rank, which implies a Buy rating on a short-term basis.