If the market is a jungle, businesses need to adapt to survive. We’ve seen entire business models upended as organisations transform themselves to keep up. As we enter a new decade, more disruption will follow.
To facilitate this sea change, many businesses are exploring how they can evolve their crucial back office functions - including finance, HR and payroll - to be faster and more efficient. Enterprises today need to make strategic decisions based on accurate, consolidated data and rapidly implement change across the organisation in response to time-limited opportunities.
This means exploring new ERP systems and applications, as well as migrating entire back office functions to the cloud. However, recent history is a graveyard of failed implementations. Supermarket giant Lidl invested half a billion Euros and seven years into migrating to a new inventory management system, only for it to end up dead on arrival. Another botched ERP project at National Grid USA took over two years to complete and cost the operator $585 million, more than 150% of the cost of implementation.
Can you have your cake and eat it too?
The causes behind an implementation disaster can be many. However, any challenges that emerge are only magnified by the complexity of the project and a lack of flexibility from the implementer. These two elements are typically the death knell of a failed project.
Transforming your ERP system will always be a challenge. Yet, if you try and implement everything at once you could be creating a near-impossible task. With some of Oracle’s competitors, this is sadly the only option.
When organisations have to roll out their ERP implementation in one go, projects can become very large and have many points of failure. There’s much more risk involved, and the risk of failure becomes far more costly. It’s similar to splashing out on a huge wedding cake, but then having to eat it all at once - you’re much more likely to choke.
Oracle, by contrast, offers a platform that integrates across all our applications, putting them at your fingertips. You have more flexibility in the implementation, and the freedom to start with whatever applications you like. This enables enterprises to migrate piece by piece, leading to less costly and much less risky implementations. It’s like savouring your wedding cake slice by slice.
A craving for innovation
When selecting an ERP provider, also consider how far along their own cloud journey they are. Many of our rivals are still migrating their on-premise applications onto their new cloud-based systems. The problem facing their customers now, however, is they’re operating critical functions on a franken-construct of cloud and on-premises applications.
This has and will continue to cause major headaches, made even worse now that SAP plans to ‘switch off the lights’ for its main legacy systems by 2025. Organisations will constantly have to swap out current on-premise apps for the new cloud apps of their provider. Each time a change is made CTOs will need to ensure the new cloud application fits into their system the same way the old app did. If issues are found delays and costs are inevitable, impacting your operations, customers and bottom line.
When they should be innovating, our competitors will instead be spending a lot of time and money making their old applications cloud-native. Some, unable to innovate themselves, are even trying to acquire new companies to do it for them. Yet, it will take years to turn these new acquisitions into embedded features. Meanwhile, their customers won’t have access to the latest technologies, making them unable to outpace change.
By contrast, the Oracle platform and its apps have been cloud-native for years. When we roll out new updates and capabilities, they are released as one across all systems and applications. Our customers have access to the latest AI, ML, Voice and IoT innovations without worrying about implementation challenges or falling behind. If they decide to change business focus, or even alter their model completely, they can do so quickly.
Let's be clear - no implementation is ever a piece of cake. However, with our tools and cloud-native architecture, the process will be less complex and risky. With the pace of change constantly accelerating, companies need to be able to evolve faster than ever. Oracle’s priority is to take you from implementation to value creation as soon as possible.