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

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Oracle ERP Cloud vs On-Prem: Part 4 - Implementation and Conclusion

4.  Implementation and Planning

The final in series briefly describes the implementation route once the organization decides on an ERP route. 


An ERP implementation project consists of discrete activities which break down the implementation process:  business analysis, development, implementation, and post-production support (Figure 2.2).  These primary activities are consistent with cloud, on-premise, and hybrid implementations but the timelines and budgets will vary.  A study conducted by Panorma Consulting concluded that over 50% of ERP implementation projects run over schedule and over budget (Panorma).  Due to the recent introduction of Cloud ERP applications and low client penetration, there is not sufficient data pertaining specifically to cloud implementations to determine how many are under budget and on time.  Hence, it is important for implementation partners like Infosys to develop a strategy which allows clients to segregate the various financial activities and build a strategy which incubates the implementation through a total value system (Figure 2.3).  Each of the financial processes (P2P, A2R, O2C, and R2R) consist of a primary activities, drivers, and linkages; the output of each process is generated by evaluating the impact of drivers (cost, agility, and talent) and linkages (people, processes, and technology) to determine the total cost of ownership, thus the return on investment of cloud and on-premise implementations (Figure 2.3). 

Figure 2.3:  Oracle Financials ERP Total Value System

Figure 2.3.1.png




















Figure 2.3.2.png





Conclusion

The decision to implement an ERP on the cloud or on-premise boils down to one thing:  margin.  It is vital for a corporation to find an ERP package which matches the company's needs; one which supports their businesses processes and offers value propositions to the business model.  The decision for companies with lower than 500 employees and greater than 2500 employees can be determined without undergoing a thorough evaluation process (Graph 3.1).  For medium businesses, however, the outcome of the chosen method of implementation is not as straight-forward.  Infosys' specialization in Oracle EBS along with a strategic partnership with Oracle allows clients to gain strategic advantage in evaluating the costs, agility, and resources to decide which model of Oracle ERP to implement. 

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