ERP CLOUD: Assessing Readiness and Building the Roadmap. San Francisco, October 2015, Michael Reddy
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1 ERP CLOUD: Assessing Readiness and Building the Roadmap San Francisco, October 2015, Michael Reddy
2 This Talk will Balance Strategy, Tactics and Approach 2
3 We are and We are not Addressing Migrating Workloads to the Cloud Cloud Native Build (PaaS) Managed Platform Services Infra as a Service (IaaS) Software as a Service (SaaS) Business Process as a Service (BPaaS) Focus of this assessment discussion 3
4 Agenda View of SaaS ERP Market Situations Ripe for ERP Cloud Quick Walk Thru Close and Q&A 4
5 SaaS ERP Assessment and Roadmapping is the Same and Different 5
6 Gartner Hype Cycle The 2014 Gartner Hype Cycle for Emerging Technologies 6
7 SaaS ERP Will Follow Suit Cynical ERP crowd Hype-cycle fatigue ERP fatigue SaaS ERP Seasoned buyers of technology Understand the business case for change Have the largest business case Truly need something new soon* Today *In just a few years, ERP users will go from being the people with the most robust technology to the laggards 7
8 Everyone is Doing it or at Least a lot of People are Doing it 69% of enterprises expect to make moderate-to-heavy cloud investments over the next three years as they migrate core business functions to the cloud. 44% of enterprises are relying on cloud computing to launch new business models today, predicting this will increase to 55% in three years. 32% are using cloud computing to streamline their supply chains today. Senior executives predict this figure will increase to 56% in three years. Oxford Economics Study 8
9 SaaS ERP Capabilities will Drive these Advances The impact of cloud on business, today and in three years To what extent has the adoption of cloud computing had an impact on the following areas of your business? What impact do you expect to see in three years? Impact and Transformative Impact responses. Oxford Economics Study 9
10 Situations that Make Sense 10
11 What Situations are Ready for an Assessment around ERP Cloud? 2-Tier: Rollout Function/Value Stream 2-Tier: Corporate Full ERP/Replace 2-Tier: Acquisition 2-Tier: Subsidiary 11
12 Functional/Value Stream SaaS is Old Hat Function/Value Stream Like other SaaS solutions Replacing nothing Less about current requirements Hard to avoid SaaS vs SaaS Typically not a cost play 12
13 Full Replace Situations Vary Small/Medium Business Divestitures Replacing Disparate Systems Cost Play SaaS v. SaaS v. On-Premise Full ERP/Replace 2-Tier: Subsidiary 13
14 Unique value propositions for 2-Tier Non-Mfg / Non-Core US subsidiary Different Business (Service arm) Replacing Disparate Systems SaaS v. SaaS v. On- Premise Subsidiary Global Rollout 2-Tier Corporate HQ Acquisition Non-Manufacturing Global location Smaller Countries Not on Core System Corporate System is Heavy Cost Play; time play 14
15 The Assessment and Roadmap 15
16 Dimensions and Concepts of a SaaS Assessment/Roadmap Function/ Capability Business Value Hardware* Software Training Implementation Roadmap Other 16
17 The Paradigm for Advancing/Improving is Changing vs. 1. Incremental Adoption of Capabilities 2. Optional Adoption by Individual, not Role 3. Passive Adoption Through Updates 4. Platform-based Advancements Marketplace 17
18 The Basic Approach Survey Maturity Model Capabilities Vision Bus. Case/ Roadmap 2 Hours, 2 days, 2 weeks Iterative, Agile, Sprints [fill-in-buzz-word] Stay away from Current State Requirements Stay away from the Details* Build Consensus on the Paradigm Capability Driven Platform as Secret Sauce REQUIREMENTS 18
19 Survey: Business/IT Basics + End-to-End Processes Survey Maturity Model Capabilities Vision Bus. Case/ Roadmap 19
20 Maturity Model: Finding Starting Point and Goals Survey Maturity Model Capabilities Vision Bus. Case/ Roadmap 20
21 Roadmap: Building a Path to Capability Adoption Survey Maturity Model Capabilities Vision Bus. Case/ Roadmap x Continue Start Here 21
22 Business Case: Collecting Value and Costs Survey Maturity Model Capabilities Vision Bus. Case/ Roadmap Business Value Tie to Capabilities Use Maturity Model and KPIs Cost Reduction/Avoidance Be wary of displaced vendors reactions New Costs 22
23 T-Shirt Sizing: Getting to ROM Costs Example; An Oracle Cloud Procurement: An implementation can fit into a T-Shirt size Small, Medium, Large, Extra Large depending on some key criteria, then drive the scope Entity size Need to be live by a specific date Countries Oracle Cloud Procurement modules in Scope Number of levels move on the Maturity Model Modules from the Oracle Cloud Procurement suite Programmatic data conversion Systems integrated Currencies Languages Departments that are different Approval hierarchies Punch-outs Number of Users Training included Organizational Change Management Post Go Live Support Cloud Procurement Assessment Overview October 2015 Copyright Capgemini All Rights Reserved 23
24 Business Case: Qualitative Benefits Checklist Use a checklist to find important (quality over quantity) non-financial benefits Cloud cost flexibility Less reliance on IT Optional, lower risk improvements Enhanced ability to attract talent Accelerated new product launch Data security, integrity etc. Iterate with the Stakeholders to find the ones that resonate 24
25 Summary 25
26 Resources and Contact information SaaS Assessment Exchange Michael Reddy Vice President, North America Oracle Leader Capgemini NA LLC Capgemini.com Mobile: www. Capgemini.com 26
27 About Capgemini Now with 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR billion (about $14 billion USD at 2014 average rate). Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience, and draws on Rightshore, its worldwide delivery model. Learn more about us at The information contained in this presentation is proprietary. Copyright 2015 Capgemini. All rights reserved. Rightshore is a trademark belonging to Capgemini.
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