The problem is that the quotes around the awk code actually close the starting quote and open a new pair of quotes respectively. See the parts highlighted in blue:
Code:
alias alertt='tail -f /u01/app/oracle/diag/rdbms/`echo $ORACLE_SID |awk '{print tolower($1)}'`/$ORACLE_SID/trace/alert_$ORACLE_SID.log'
To solve this you could embed the whole alias definition in double quotes instead of single ones. Even better you could define a function instead and use export -f to make it available to any other (sub)shell.