emtec medinah 2014 · co-existence – fusion accounting hub •fusion accounting hub –as an...

Emtec, Inc. Proprietary & Confidential. All rights reserved 2014. Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.

ERP 2.0

September 4th, 2014


Agenda

ERP Overview

Time to Migrate to the Cloud?

What are traditional ERP doing to combat SaaS solutions?

What are my Options?

Questions

2


Speakers

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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

• [email protected]


ERP Overview


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

6


ERP 2.0 Functionality

•Modern User Experience

•Role-based dashboards

•Exception management

•Mobility

•Pre-built Analytics

•Adaptable

•Expandable

•Sustainable

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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?


Companies Are Considering The Cloud

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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


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”

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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?


Is Cloud Cheaper?

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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.


Total Cost Of Ownership

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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!


Emtec Provides A Free TCO Analysis To Clients

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Executive-Ready

Dashboards

Detail-level TCO

comparisons


What are traditional ERP doing to combat SaaS solutions?


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

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PeopleSoft Roadmap

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PeopleSoft Roadmap - Ongoing Investment

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What are my options?


Deployment Strategies

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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


SaaS Implementation Considerations

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“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


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

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