Enterprise Biz-Apps Tracker
In continuation with my previous blog on use of Oracle Quality to manage business issues, we are now delving deep into our discussions with the next feature of Oracle to help you in managing your intellectual assets as part of our Oracle E+ series of blogs.
This Blog talks about the use of Oracle ERP as a single source of truth to track the cost of Enterprise Biz applications.
Once an ERP is implemented, the enterprise acquires a new intellectual asset. This intellectual asset will be added to your list of fixed assets. Though this asset will depreciate over a period of time, significant cost is also incurred in maintaining the asset and enhancing the existing functionalities. At times new business locations / sites will get added and the solution foot print will be extended to the new business sites. The cost of such projects should get added to the capital cost to the so called ERP asset. The enterprise treats all these activities as individual projects. There is also a need for the enterprises to use the ERP system as the business system and reduce the use of stand alone or legacy systems. The purpose of this approach is to make ERP as single 'source of truth' business system than just a financial reporting system
The broad heads under which cost is incurred for ERP systems are:
1. Continuous or discrete enhancements to the existing functionalities of ERP system.
2. Extending the solution foot print to the new sites / business units
3. Upgrading the application to the newer version as and when a new release occurs
4. General maintenance of the ERP system by housekeeping, back up, adding the new user groups etc.,
Absence of such solutions result in
1. Manual / stand alone transactions to track the costs associated
2. Additional reporting solutions are to be developed
3. Legacy systems continue to exist though a powerful ERP system in implemented
The effective solution available in Oracle is to define a project that is associated to the ERP system and add each of the above activity as a task and track the expenses associated. A new task can also be added for each enhancement. By enabling the project management module of Oracle project suite, it is possible to maintain and track the project schedules, progress as well. The ERP application itself can be defined as an asset and can be associated to an active project in the Project suite of modules.
The advantages of such a solution is
1. Financials are reported within ERP
2. Maximum use of ERP functionalities
3. Legacy systems can be faced out at the earliest
4. No manual tracking required
Other legacy systems and cost involved in maintaining them can also be defined as projects and tracking will be made easier. Also, all these costs can be rolled out to a master project called 'Business applications'.
One doubt would certainly arise in the minds of a consultant: "What to do if the projects suite of modules are not licensed nor installed?"
The solution in such cases is to install Projects modules in shared mode or negotiate with Oracle licensing team and try for these solutions and it is worth it!!!
Catch you in the next blog post where we will discuss more business scenarios and more tips to handle the same till then.....cherish and think through the impact of Oracle E+ (Efficiency Plus)