On-Premise ERP vs. the Cloud

Transcription

2 About your presenter Deron Stoecklein Senior Manager, Practice Lead Business Advisory Services practice Executive summary Deron has over 15 years of experience, in Human Capital process analysis, system design and implementation as well as organizational design and workforce strategy. Deron has specialized in leading strategic system assessments, evaluations and implementations of operational and core back-office systems including process redesign and standardization. With a diverse background in Oracle Human Capital Management Product Solutions, Deron provides a strategic and operational perspective for clients evaluating and implementation Oracle PeopleSoft, Oracle e-business Suite and Oracle Fusion HCM offerings while helping clients to leverage ERP systems and industry solutions for process improvement and efficiency while leading clients through large-scale program management, change enablement and transformational initiatives Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd 2

3 Agenda Ch-Ch-Ch-Changes: On-Premise ERP vs. the Cloud When implementing an ERP for HCM, there are a number of constants that exist whether you are putting in an on-premise solution or a cloud solution...it s still an implementation, after all. In this session, we ll explore those constants, but also talk about those change elements that are new realities only associated with cloud-based ERP HCM implementations that need to be managed, as well. To Cloud or Not to Cloud Change Impacts Change Readiness and Assessment Tracking Business Engagement and Communications Training Organizational Alignment Quality Assurance Checkpoints Role Impacts What Goes Away What Stays the Same What's New 2015 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd 3

5 About Grant Thornton One of the world's leading organizations of independent audit, tax and advisory firms 38,000 people in over 100 countries 65% of Grant Thornton International Ltd1 Forbes Global 100 companies US $4.7 billion revenues 40,197 personnel3 served by Grant Thornton International member firms 2,975 partners 725 offices Statistics as of Sept. 30, th largest global accounting and consulting firm 58% of 2013 Fortune 100 Grant Thornton LLP2 (U.S.) $1.4 billion revenues 6,456 personnel3 529 partners 57 offices Statistics as of Dec. 31, Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd 5

7 Integrating ERP, EPM and BI Business Analytics We help our clients integrate transactions to report on financial results and variances with governed standards. Services include: Reporting and analytics strategy Governance and master data Foundation analytics Pre-built analytics Advanced analytics Enterprise Performance Management We help our clients transform data into usable information. Our services give clients better visibility into their business that enables actionable decision-making: Enterprise planning, forecasting and strategic planning Consolidations and financial reporting Profitability analysis Change assurance Enterprise Resource Planning Human Capital Management We help our clients manage transactional detail from every process within their business. Connecting this information with users and ensuring that it meets their specific needs are critical to enabling sound decisionmaking. Services include: System strategy Implementation Technology integration Upgrades, optimization, and support We help our clients develop an integrated approach for addressing current and future talent management issues. Our services provide our clients the flexibility to scale the solution or solutions to their business strategy, operating model, and culture. Specific services include: Assessments System strategy and implementation HR intelligence Upgrades, optimization, and support 2015 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd 7

8 Exclusively focused on Oracle Broad product specializations that set us apart Specialization is achieved through competency development, business results, demonstrated expertise and verified client success Platinum achievement requires applied experience be demonstrated for at minimum of 5 product areas across the disciplines of pre-sales, sales, implementation and support Enables access to Oracle knowledge capital, product strategies and support resources not available to other partners which can be used to bring value to our clients Specialized in 15 product areas across ERP, HCM, BI and EPM enabling us to successfully deliver integrated, costeffective, scalable solutions delivering Business Harmony for our clients ERP E-Business Suite JD Edwards PeopleSoft ERP Cloud Service HCM Cloud Service BI EPM BI Foundation Suite BI Applications Endeca DRM BI Cloud Service (BICS) Hyperion Planning Hyperion Financial Management HPCM Planning and Budgeting Cloud Service (PBCS) Specialized in 15 products across ERP, EPM, HCM and BI Our commitment to delivering Oracle valueadded solutions for your business 8

10 Living in the clouds Application strategy Combinations Cloud/SaaS Managed at customer Managed at third party site On Premise 10

11 Living in the clouds Application strategy No "one-size fits all" Considerations for which approach to take include: Infrastructure & physical requirements Organization resources Technical knowledge and expertise Industry security and legislative requirements Need for extension and customization Need for fault-tolerance & redundancy 11

12 To cloud or not to cloud Decision criteria License Economics Subscription Economics Build Internal Expertise Leverage Fusion Expertise and Infrastructure Local Data Remote Data OK Extensions and Customization Capable Limited Extensions & No Customization On-Premise Cloud/SaaS 12

13 To cloud or not to cloud Total cost of ownership Not Cloud Ready License Economics ($$$) Middle of the Road ($$) Subscription Economics ($) Cloud Ready Significant Infrastructure Available Many Technical Organization Resources Relatively Stable Growth Projected Longer Timeline Available Reduced or Limited Infrastructure Limited Technical Organizational Resources Faster Deployment(s) / Scalability Needed 13

14 To cloud or not to cloud Expertise Not Cloud Ready Build/Maintain internal expertise Leverage some external expertise Heavily leverage external experts Cloud Ready Heavy Internal Technical Knowledge Desired Internal Application Expertise Desired Desire to Minimize Technical Knowledge Requirements Leverage External Functional Application Expertise 14

15 To cloud or not to cloud Data management Not Cloud Ready Local data only Some data external is okay Remote data just fine Cloud Ready Heavy Industry Data Security or Regulatory Requirements Strong Legislative Requirements Comfortable with Data "Outside the Firewall" Legislative Requirements Allow Flexibility to Maintain Data in the Cloud 15

16 To cloud or not to cloud Level of customization Not Cloud Ready Heavy Extensions and Customizations Fair Amount of Customization Required Limited Extensions / No Customizations Cloud Ready Extensive Customizations Required by the Business Require Code Customization Capability No change in process Required Extensions to Configuration Relatively Limited Code Customization Not Required Process and procedure changes acceptable to meet requirements 16

17 To cloud or not to cloud Need for fault-tolerance and redundancy One more decision point to be considered: If you have a high need for fault-tolerance / redundancy and have an existing robust Disaster Recovery program that relies on access to underlying IT infrastructure and that you want to closely maintain, that would point you away from a cloud solution On the other hand, if you are looking to off-load the information systems infrastructure costs associated with a robust Disaster Recovery plan, that would be one favorable point of the cloud as a solution 17

18 To cloud or not to cloud Other considerations Design Still need to design with software in mind Some limits to "customizations" really extensions of the configuration, not real customizations Integrations from Cloud to Non-Cloud or Other Cloud To other Applications (for example, other ERP/HRMS) To 3rd Parties (for example, payroll vendors or benefits vendors) Change But, of a slightly different flavor 2015 Grant Thornton LLP All rights reserved U.S. member ﬁrm of Grant Thornton InternaBonal Ltd 18

20 Change impacts There are (at least) two distinct, but inter-related areas of change strategy associated with adoption of a cloud solution: Change Control: Change associated with the technology that ensures the system is introduced in a controlled and coordinated manner, reducing the possibility of faults being introduced into the system or undoing changes made by other applications and/or users. The objective is to minimize disruption to services, reduce back-out activities, and ensure cost-effective utilization of resources. Change Assurance: Change associated with the "people" side of the introduction of new technologies and/or processes in this case, moving them from a non- or partial cloud environment to one that is more or entirely cloud-based 20

21 Change assurance Adoption of cloud technologies requires the same "people" related strategies typically needed for non-cloud implementations, including: Change readiness assessment(s) Executive and stakeholder alignment Business engagement and communications Training Organizational alignment (job impacts, role alignment, etc.) Ongoing support and other resources (QRG's, etc.) One element that bears special mention is that the IT organization typically has the most adjustment to a cloud environment due to the difference in roles and responsibilities. 21

22 Change impacts Integrated framework QA Checkpoint QA Checkpoint QA Checkpoint Plan Design Build Test Deploy / Support Change Readiness Assessment & Tracking *Organizational Readiness Assessment Readiness Survey(s) Readiness Survey(s) Post Implementation Assessment Business Engagement & Communications *Stakeholder Assessment & Resistance Management Manage Stakeholders Business Engagement & Comm Approach Detailed Communication Plan Execute Communication Plan End User Training Training Approach and Scope Role-Based Training Curriculum Develop Training Training Delivery Checklist Deliver Training Organizational Alignment Job Impact Analysis Role Definition Role to End User Mapping 22

23 Change impacts Change readiness and assessment tracking Purpose: Provides assessment of organizational readiness for change impacts across multiple dimensions, identifies people-related risks and any resistance points within the organization. Progress and change acceptance are tracked throughout the project. Value: Proactively identifies risks and potential areas of resistance Highlights key dependencies for project leadership Offers continuous monitoring of the organization's state of readiness Key Deliverables: Organizational Readiness* Readiness Survey Post Implementation Assessment * Delivered in one document with Stakeholder Assessment 23

24 Change impacts Business engagement and communications Purpose: Equip leaders to sponsor changes and drive a sense of ownership among employees. Targeted communications are utilized to set expectations, manage resistance, and ensure common understanding among all impacted stakeholders. Feedback mechanisms are in place and used to track and improve communication effectiveness Value: The project objectives and value are clearly articulated to various audiences Stakeholder change acceptance is tracked throughout the project, with key influencers engaged in the change network Communications are planned, accurate, timely, and delivered through the appropriate channels Key Deliverables: Stakeholder Assessment & Resistance Mgt.* Business Engagement and Communications Approach Detailed Communications Plan * Delivered in one document with Stakeholder Assessment 24

25 Change impacts Training Purpose: Comprehensive training and development programs are identified that will build skills and knowledge based on impacts to current jobs and roles. Training addresses changes to process, activities (behaviors), and software/technology. Value: Ensures that all required training delivery elements are accounted for and in place prior to training delivery The organization is set up to provide ongoing training and performance support Training events reinforce business case, job/role impacts, and new performance measures Key Deliverables: Training Approach Role-Based Training Curriculum Training Delivery Checklist * Delivered in one document with Stakeholder Assessment 25

26 Change impacts Organizational alignment Purpose: Impacts to jobs are analyzed, and future state operating model and roles are clearly defined. Roles are mapped to end users and necessary skills/competencies are evaluated. Value: Organizational structure, roles, and responsibilities are appropriately aligned to support the change Gaps in skills/competencies are identified and addressed through training and talent management Organizational performance metrics are cascaded to team and individual metrics, ensuring that everyone is working toward a common set of objectives Key Deliverables: Job Impact Analysis Role to End-User Mapping Role Defini*on 26

27 Change impacts Quality assurance checkpoints Purpose: Regular assessments of effectiveness of various change assurance strategies and activities at key milestones, typically as project transitions from one phase to the next. Value: Helps reduce project risk through ongoing assessment of progress toward adoption of the intended process and technology changes as project moves along the implementation journey, reducing "surprises." Provides independent, expert input on key components of the project change assurance planning and execution to drive required adjustments to maximize achievement of desired results. Key Deliverables: QA Checkpoint 1 Readiness Survey Results Communication Audit Results Completion Communication Audit Results Effectiveness Communication Detailed Plan Adjustments QA Checkpoint 2 Above plus Training Approach Audit Results / Adjustments QA Checkpoint 3 Above plus Role Impact Analysis, Definition, Mapping Audit Results / Adjustments (led by Atkore) 27

29 Role impacts Functional HR user What Goes Away A lot of manual paper processing A lot of manual spreadsheet manipulation / consolidation As much need to "call IT" What's New More technical responsibility / opportunity More configuration capabilities Enhanced reporting / report writing capabilities Greater involvement with vendor support team via Service Request process What Stays the Same Traditional functional strategy / process decisions Required knowledge of HR business requirements Understanding of how various inputs effect system(s) and their outputs 29

30 Role impacts IT support What Goes Away Heavy influx of calls from HR for support Access to underlying "technical stack" or code base Technical development beyond integrations What's New Increased reliance on the vendor via Service Request (SR) process Support model becomes more of a "triangulation" between vendor, IT and HR process What Stays the Same Responsibility for supporting technology Understanding of how various inputs effect system(s) and their outputs Need for integration support to external systems (including outside vendors) 30

31 Role impacts Employee What Goes Away Always having to "call HR" Manual paper documents for HR transactions What's New Increased self-service for HR transactions "DIY capability" Access to own data at your fingertips For managers, much richer data about employees What Stays the Same Responsibility for managing HR tasks (e.g., benefits enrollment, performance forms, etc.) 31

33 Key takeaways There are some critical decision criteria to consider when determining if Cloud ERP is right for your organization A move to the Cloud brings with it change impacts that have a different flavor from implementation of traditional on-premise ERP systems However, it is still an ERP implementation and many of the change impacts and strategies for managing it remain constant Key roles from HR to IT to Employees are all impacted by a Cloud implementation in some ways that are the same and in some ways that are different from a traditional ERP deployment 33