Infosys’ blog on industry solutions, trends, business process transformation and global implementation in Oracle.

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ERP Cloud - "Temps S'il vous plaît"

 

Opportunities are like sunrises. If you wait too long, you miss them or pay a higher price.

 

Often we see Organizations reluctant to adopt Cloud as the next Generation Solution to the ERP world. "TIME PLEASE" -

  • We need more time to really to make this decision and also our organization strategy towards the same.

  • We don't want to be Guinea pig and experiments and observations to be done on us

  • It is all about starting everything from scratch. Rather I would upgrade to the latest version

  • We are very bad at change.

I really recollect my Young days of playing games and sports, when intermediate breaks and halts were on demand and often a choice taken by individuals. But more into my Teens, the more the maturity, one understands that breaks and intervals are predefined and one never has the choice. There is no "TIME PLEASE" requests. Furthermore time given is a reason to just lose the game and the advantage.  In the same way corporate ERP decision and strategies are more often formed with the following key considerations

  • Industry Drivers

  • Adoption rates

  • Security

  • Cost Optimization options.

ERP Cloud as a Product has also matured with its very unique Offerings and growing availability of functionalities, advance Technology options, matured market coverage for localizations and very enhanced security.

Cloud is being discussed about everywhere. More than 60% of the Business Finance is looking at increasing their Spend on cloud computing. While Customers are accepting that the challenges on ERP Cloud are not about technology, but the traditional problems that business faces every day. Challenges around data migration, business adoption and integrations remain, but cloud applications make user adoption easier. Users are adopting solutions and more accustomed to their daily problem and issues management and resolutions to the same.

What's unique about the cloud offerings and what makes it very successful

Available Anywhere

Being the Nature to be on Cloud makes the application and data available anywhere. 

Reduced Resources

Lesser Networking, Hardware and also multiple options of Servers and managed softwares makes this very unique Offering.

Security Richness

Right People, Right Tools and Transparency in keeping Data Secured and Safe makes data sensitivity rich on Cloud.

Higher Scalability

Go with the minimum and then you have the option to scale up making the rest of the product stream available on demand makes a unique proposition to adopt cloud.

Support from Cloud

Since the product's nature is very much to be available anywhere, the onsite offshore model would probably become more of an offshoring / near shoring model and make resources available for support from any part of the world.

As per Nucleus Research  - the Cost of ownership of traditional on premise ERP applications was 2.1 times more than ERP Cloud. While analyzing at the key ERP cost drivers -- hardware, software, consulting, implementation and education over a 3-year period -- assessed that initial costs for ERP on premise were 2.4 times greater than ERP cloud. After implementation, maintenance costs were the key differentiator, with average yearly costs for ERP cloud averaging 1.8 times less than ERP on premise. -  Source www. Oracle.com

"Nature is a mutable cloud which is always and never the same" - Ralph Waldo Emerson

All of these without a compromise on Transaction Visibility and dynamic Reporting capabilities across Organization's finance, procurement, supply chain, manufacturing and projects with add-on features of mobility, analytics and social collaboration.  Depicted below is a Total TCO for an Organization adopting Oracle ERP Cloud

Cost Parameters

Non Oracle ERP

Oracle ERP

ERP Cloud

Initial Hardware

880 K

285 K

0

Software Licenses

1.85 M

1.75 M

0.44 M

Consulting

2.25 M

1.6 M

1.48 M

Implementation and Deployment

2.48 M

1.5 M

650 K

Annual Maintenance

1.12 M

800 K

350 K

Upgrades and new Version adoption

1.5 M

1.2 M

450 K

Training

550 K

530 K

275 K

Source : Information from Nuclues Research

A comparison of the Product Maturity reveals the true benefits and enhanced functionalities that ERP cloud provides

It is very evident that Oracle ERP Cloud has the key advantage with all functionalities of an on premise product being made available on cloud. Organizations can expand themselves into new markets with multi legal entity, multi-GAAP, and multicurrency capabilities, delivering multidimensional reporting from a one source of truth with shared reference and master data. Eliminating the difficulty of intercompany tax and payment transactions with a standardized architecture and Compliance to local regulations and reporting requirements using delivered Out of the box, country specific localizations. All these with ERP cloud as the product of choice.

Agility in business modeling -- processing of over 150+ million transactions and adhering to the processing requirements of even the complex enterprise--is key to business model to succeed. Simplification, with a detailed drill down from the metrics, Dynamic Spread sheet Integrations to solve the last minute hurdles creating a barrier to the month end close, Modernization with Social Collaboration, tracking Project cost and revenue, enforcing Control's extensive rules, data standardization and enhanced strong Governance and risk compliance tools, the multi-dimensional reporting capabilities providing impacts from detailed insights ERP Cloud is a winning solution to today's modern CFO.

In today's finance world teams can easily account for 85 percent of their time on data collection and data validation, reports development, by maintaining and updating spreadsheets. Very often the actual and true, value-added work of analytics and decision making doesn't start before the end of the week-- woth a very less time focused on to develop real insights and make decisions.

Do you really want to be as you are and claim "TIME PLEASE" or move towards the next generation ERP? The choice is your' s. Better not be Late than being on Time. Decide, Adopt and Implement the modernized ERP solution.

Finally as quoted by Rabindranath Tagore - "Clouds come floating into my life, no longer to carry rain or usher storm, but to add color to my sunset sky."

Let us adopt, deploy and operate on ERP cloud and be part of the team advantage.



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