Joint ventures have been an integral part of business forever. Entire industries operate this way—oil & gas, engineering, and construction, for example—and for good reason. Joint ventures can help your company increase its capacity, share risks and costs, and gain access to new expertise, markets, and distribution networks. And as digital transformation introduces new business and operating models, more and more companies are waking up to the potential of joint ventures. For many, they offer competitive differentiation and can be core to future success.
Despite the many benefits and opportunities of joint ventures, some companies are still reluctant to form and manage joint operating agreements. Why? Some of the more common concerns and challenges include:
- Changing company business processes to work with partners.
- Managing the ongoing terms and conditions of a joint operating agreements.
- Complexity around accurate accounting, metrics, and reporting to joint venture partners.
Some of these challenges are cultural and are the product of sheer inertia. But others are the result of using improper tools. Using cumbersome spreadsheets or standalone, third-party applications can unnecessarily complicate matters.
With an integrated, automated approach to financial management (especially project costing) and human resources, many of these challenges can be eliminated. Consider the Williams Companies as an example. It is one of the largest energy infrastructure organizations in the US and engages in joint ventures as an integral part of its risk management and growth strategy. It turned to Oracle Fusion Cloud Joint Venture Mangement for automation, allowing Williams to focus on innovation in an increasingly competitive and volatile industry. Brian Letzkus, CIO at Williams, characterized their reliance on Oracle Fusion Cloud ERP this way: “Joint Venture Management is a big part of our strategy moving forward and will be key for us for years to come. It meant a lot to the team and our executives that we were able to have a voice in development and assurance it aligns with our requirements.”
Oracle Fusion Cloud Joint Venture Management, part of Oracle Cloud ERP, provides a central place to easily define and manage joint ventures according to the terms and conditions of operating agreements. For customers already on Oracle Fusion Cloud ERP, setup is minimal, and it can enable your company to:
- Shorten your financial close window with automated joint venture processing.
- Improve cash flow with accurate and auditable partner invoicing.
- Minimize dispute resolution costs with a transactions audit trail.
- Gain real-time visibility into the financial state of joint ventures by automating transaction processing.
- Ensure compliance and manage exceptions with the joint operating agreement through role-based processes.
Ultimately, Oracle Joint Venture Management helps you run your business with global partners—without the need to change your existing business processes. And it doesn’t require you to turn your enterprise apps upside down.
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