Mismatched ERP and HR apps cost more than you think

March 13, 2023 | 4 minute read
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As businesses grow, they invest in a wide variety of software solutions. Typically, they acquire individual applications to address challenges and seize new opportunities as they arise. In the short term, this approach can work. But in the long term, it creates difficulties.

Circumstances change as the company grows, and decision makers need a consolidated view of information generated by multiple applications. It’s easy to inadvertently create a situation in which executives lack visibility across the organization. The increasing size and diversity of the application portfolio can create business challenges in and of itself, too. Often processes become dependent on error-prone, high-latency, manual handoffs. As a result, what seemed like a good approach in the short term means the company can’t make full use of its resources in the long term.

Nowhere are these challenges more acute than at the intersection of ERP and HCM because those applications manage two of the most critical assets: finances and people. Incompatible finance and HR data creates high-stakes blind spots, and process disconnects invite difficulties, if not disaster. In contrast, integrated ERP and HCM offer major benefits.

Benefits of a complete cloud suite

When organizations deploy Oracle Fusion Cloud ERP and HCM together, they create one, unified platform that provides:

  • A better user experience: A consistent UX for self-service applications (e.g., benefits, procurement, travel, and expenses) cuts training costs and speeds up adoption, including the use of modern UX technologies like conversational user interfaces.
  • More nimble, precise planning and forecasting: Merging data from every corner of your business at very low latency (e.g., daily updates) and using a consolidated analytics framework reveals insights at a pace that’s otherwise impossible. And you don’t need to build a data warehouse for every analytics use case or slow your general ledger by adding non-financial data.
  • Simplified data and single source of truth: Critical data elements like employee, supplier, and location are defined once and then used by all modules. This avoids conflicts and reconciliation issues, and makes it far easier to combine transactional data with other information (e.g., information related to products, customers, assets, etc.) for the purposes of even more advanced analytics.
  • Simplified vendor management: Reducing the number of application providers cuts the complexity of cloud application deployments—including ongoing management and any company-specific configurations or extensions. It also simplifies the adoption of new innovations across cloud infrastructure, platform services, and applications.
  • Streamlined business processes: Using fewer tools enables you to create and configure workflows in ways that generate considerably less friction. This is important to end users and managers alike, especially in processes that intersect finance and HR (e.g., proper approval routing for an employee purchase requisition based on employee location, business unit, cost center, item category, and spend authority in the management approval chain).
  • Unified security: Reducing the number of applications eliminates vulnerabilities, simplifies access for all user communities, and allows for more consistent governance.

Experts agree

Industry watchers agree on the wisdom of optimizing the application portfolio for the needs of the entire enterprise rather than just one department or a single business challenge:

“By leveraging a single technology cloud platform across ERP and HCM, our clients historically have found that economies of scale can lead to YOY operating cost savings of 20% or more. It also simplifies their support model and provides a single source for analytics.” —Sheryl Johnson, PwC Oracle HCM Practice Leader; and Kevin Sullivan, PwC Global and US Oracle Practice Leader

“79% of organizations improved collaboration between finance, HR, and IT as a result of moving to an integrated cloud.” —“Collaborative planning in an uncertain world” from 2021 MIT Technology Review Insights

Click the “Learn more” button if you’d like to learn more about how unifying Oracle Cloud ERP and Oracle Cloud HCM can help your company. We’ll send you a guidebook from Nucleus Research to help you get more from fewer applications.

If you're an Oracle Partner and want to learn more, visit the Oracle Partner Community.

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Fusion Development

The Fusion Development team is responsible for building, maintaining, and driving innovation on the Oracle Fusion Cloud Applications Suite, which includes Oracle ERP, EPM, SCM, HCM, and CX. Its members are based throughout the world with central offices in the US, India, Mexico, The Philippines, and Romania.

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