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ERP 2.0
September 4th, 2014
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Agenda
ERP Overview
Time to Migrate to the Cloud?
What are traditional ERP doing to combat SaaS solutions?
What are my Options?
Questions
2
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Emtec, Inc. Proprietary & Confidential. All rights reserved 2014. Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.
Speakers
3
Jon Given Director – Oracle Financial Applications • 13 years of ERP and Reporting experience
• Solution Architect and Engagement Manager across PeopleSoft,
EBS and Oracle Cloud ERP applications
• Background across Order to Cash, Procure to Pay and Record
to Report business processes
• (312) 216-6905
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Emtec, Inc. Proprietary & Confidential. All rights reserved 2014. Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.
ERP Overview
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ERP History
•When first introduced, ERP was focused on
–Transactional processing and automation
–Enabling Controls
–Could be customized to replicate existing business processes
•ERP Today
–Exception based processing
–Role-based workflows
–Leverage delivered functionality with little (or no)
customizations
–Agile and responsive to changing business conditions
–Critical to align data in support of analytics and reporting
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Core ERP Functionality – Table Stakes
•Accounting and Finance
•Procure to Pay
•Order to Cash
•Project Portfolio Management
•Reporting
•Workflow
•Approvals and Controls
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ERP 2.0 Functionality
•Modern User Experience
•Role-based dashboards
•Exception management
•Mobility
•Pre-built Analytics
•Adaptable
•Expandable
•Sustainable
7
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ERP Providers
•Tier 1
–Oracle (PeopleSoft, EBS)
–SAP
•Tier 2
–Microsoft,
–Lawson
–Infor
–Oracle (JDE)
•SaaS
–Oracle Cloud (Fusion ERP)
–NetSuite
–Workday
–SAP Cloud
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Time to migrate to the Cloud?
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Companies Are Considering The Cloud
10
2013 CIO Survey: “More than half of CIO’s indicated that they would source all of their critical applications in the cloud by 2020”
“Business buyers are bypassing IT and buying cloud services directly”
“25% - 40% of IT spending takes place outside of the IT budget”
“Spending on the cloud is growing much faster than spending on on-premise
deployment models for IT”
Source: Gartner
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SaaS ERP
•Smaller up front software investment
–Evaluate monthly costs vs ongoing maintenance
–Operational expense vs capital
•Assumed faster time to value
•Potential to lower operational costs
•Seamlessly deploy new features and maintenance
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Why doesn’t everyone move to SaaS
•SaaS still has limited share of ERP market (4% share)
•Cloud ERP (Hosted ERP) – 11% share
•Concerns around mission-critical and data sensitive tasks
•Slow replacement cycle for ERP applications
–Today - 6.4 years old
–2004 – 5.1 years old
•Integration challenges
•Limited or no ability to customize the applications
•High risk and cost associated with platform migration
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Cloud Is The “Shiny New Object”
13
There is a lot of interest in the cloud because
it is perceived to be a low cost alternative.
Gartner says the goal is not to move
business processes to the cloud, the goal is
to use cloud services to:
• Accelerate business outcome
• Reduce capitol expenditures
• Improve customer experience
• Reinvent processes as part of the
digital strategy
But Is Cloud
Cheaper?
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Is Cloud Cheaper?
14
Many sources maintain that cloud is not always proven to be cheaper.
“A number of studies have been conducted which show cloud does not
necessarily reduce TCO long term but it does reduce capital expenditures
short term”
- Gartner
Different Cloud offerings will produce differing TCO evaluations over the
short and long-term. Some cloud services are not cheaper in the long run
and can actually cost you more. Others are a great overall value short term
and long term.
Aside from cost, many businesses can benefit greatly by offloading
processes and services that are not part of their core business allowing
them to achieve greater focus and competitive advantage.
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Total Cost Of Ownership
15
In addition, there are many other benefits Cloud can bring to bare including:
• No capital costs
• Additional capacity on the fly
• No up-front software costs
• Standardization and agility
When analyzing the TCO of cloud V.S. on-premise, be sure to
consider all factors including:
• Upfront software costs
• Hardware costs
• Annual support fees
• People costs for infrastructure, development, support, etc.
• Disaster Recovery
• Upgrades
• Lower power costs
SaaS
typically
includes
these
costs
Not all Cloud services are cheaper in the long run but todays
SaaS business application can save you a lot of money!
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Emtec Provides A Free TCO Analysis To Clients
16
Executive-Ready
Dashboards
Detail-level TCO
comparisons
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What are traditional ERP doing to combat SaaS solutions?
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Evolution of Traditional ERP
•Becoming more SaaS like
•Oracle has released Cloud ERP, but also made significant
changes to traditional ERP products
–Continuous delivery model – no more “Feast or Famine” for
new functionality
–PeopleSoft 9.2 is now a platform – no more major application
upgrades
–Modern user experience
–Mobile functionality
–PeopleSoft Update Manager
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PeopleSoft Roadmap - Old
19
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PeopleSoft Roadmap
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PeopleSoft Roadmap - Ongoing Investment
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What are my options?
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Deployment Strategies
23
Continue on Your Current Path
• Upgrade to the latest release of your existing applications
Adopt a Co-Existence Strategy
• Add new SaaS Applications modules or product family (i.e. HCM, ERP, CRM) to existing investments
Migrate to new Application Platform
• Deploy the complete suite of Fusion Applications
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SaaS Implementation Considerations
24
“SaaS is more than just an alternative deployment model; it has unique characteristics
that require new ways of thinking about vendor selection, contracting, risk tolerance and
organizational skill set requirements.:
- CIO.com
Emtec has implemented a number of Cloud applications for its clients and has found that
company interested in moving their business applications to the cloud should know that:
• Implementation of cloud solutions is very different from on-premise
implementations that they are accustomed to
• Integration in the cloud can present challenges
• Cloud applications are “configurable” NOT customizable
• Data loading and configuration are very sequential and may require extra time
• Fewer environments typically come with SaaS than companies are accustomed to
• Muti-tenancy is not really a good thing as many vendors lead you to believe
• The same level of effort is required during many phases of a cloud implementation
as is during an on-premise implementation
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Co-Existence – Fusion Accounting Hub
•Fusion Accounting Hub
–As an accounting integration platform, FAH standardizes the accounting
from non-Oracle third party transactional systems to efficiently create
detailed, auditable, and reconcilable accounting to any general ledger
system.
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Co-Existence – Fusion Accounting Hub
•Fusion Accounting Hub
–As a reporting platform, FAH offers E-Business Suite and
PeopleSoft customers exceptional reporting and analytics with
minimal disruption to their current financial processes
–Packaged integration with PeopleSoft and EBS
–Can also integrate with 3rd party systems
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Q & A