woensdag 4 mei 2016

Implementing Oracle Cloud ERP: Co-existence or complete new implementation?

Since more and more companies are thinking about Oracle Cloud ERP, it is worth looking into two of the ways for implementing this new ERP suite.
Currently, by far the most companies are using ‘Conventional’ ERP such as E-Business Suite (EBS) or PeopleSoft. More often than not, these running applications are complex and require a careful approach when moving to the cloud.
Below I distinguish two types of cloud ERP implementations: the co-existence approach and the complete new implementation approach.
Co-existence approach
A co-existence (hybrid) approach indicates that the existing ERP system will not move to the cloud in one go, but will move in several phases.
An often heard example is finance VS procurement. The CPO wants to be flexible and adapt to the quickly changing market of procurement (which can be accomplished by moving to the cloud) but the CFO is not yet ready to move. In this case, the company can make the decision to procure via the cloud and stay on premise for a while longer with the finance department.
Of course this method requires integration between cloud and on premise. This can be achieved through multiple existing connectors. Oracle knows that most companies will move towards a co-existence solution at first, and has developed ways to achieve this. 

Full new implementation

Next to a co-existence approach the option exists to do a complete new installation. This means that the complete business will move the cloud in one go.

This inevitably has a big impact on the business and requires more preparation than the co-existence solution. Things to think about are fitting the full business process to the solution, testing, migration and change management. Compared with the co-existence, a full new implementation can also bring more risks and requires to have buy in from the complete business. If the implementation causes issues, there is no basis to fall back on as is the case with the co-existence solution.

The benefits of this approach are that there is a onetime effort and investment involved. After the full implementation the project is complete and no phased approach is needed.