In part three of this blog series, we explore effective strategies for addressing EBS customizations when transitioning to cloud solutions. Our experts will also outline the importance of prioritizing meticulous planning, thorough change management, and comprehensive readiness assessments. By doing so, organizations can leverage their existing investments and embrace the benefits of modernized systems, while also strategically planning for the cloud and avoiding common pitfalls that leadership often encounters during such transitions.
Or, check out this on-demand session from OATUG’s Ascend conference with Bruce Meghan, VP of ERP and Project Solutions at Project Partners:
EBS Customizations & Integrations: What Do I Do with the Work That I’ve Already Done?
Imagine you’re at the helm of a dynamic company that has implemented Oracle E-Business Suite (EBS), complete with an intricate web of customizations, integrations, and unique features tailored to meet its specific needs. The pivotal question arises: Should the company transition to Oracle Cloud Infrastructure (OCI) or opt for a complete transformation to Oracle Cloud ERP? It’s a pivotal moment, as moving to Cloud ERP may not necessarily mean losing all those hard-earned customizations and integrations. Instead, it will require a meticulous redevelopment of these components.
The process begins with a comprehensive analysis of all custom content. Decision-makers must critically assess each item and ask, “Is item X truly necessary?” Upon delving deeper, they might discover that the functionality they relied on within EBS has been seamlessly integrated into Cloud ERP’s out-of-the-box features. This insight could streamline the transition. However, for certain items, it may become apparent that there is no equivalent solution in the new system, necessitating additional development efforts. This is where Oracle Integration Cloud (OIC) comes into play, offering significant advantages.
With OIC, organizations can leverage a multitude of integrations and customizations within the cloud environment. This capability also opens the door to harnessing database processing power and implementing Generative AI technologies, empowering teams to take the reins of their transition rather than feeling rushed through the process.
However, a common pitfall becomes evident: companies often adopt a surface-level approach when evaluating which integrations and custom objects are truly essential. This lack of a thorough analysis can lead to oversights, with teams either discarding critical components or clinging to unnecessary ones. When the organization moves forward without a clear understanding, it finds itself scrambling to address gaps, ultimately leading to delays and complications in the project timeline. So, careful planning and foresight are essential to ensure a successful transition to the cloud.
How Much Change Are We Introducing and How Are We Going to Achieve Our Goal?
An effective strategy is incomplete without the critical aspect of Organizational Change Management. Often overlooked during the planning process, change management plays a pivotal role, especially when navigating significant transitions. Reflecting on the three major cloud migration approaches organizations take (discussed in part two of this blog series), consider a global organization transitioning to an EBS to OCI model. In this scenario, the change management impact is primarily centered around tool modifications and perhaps a few process adjustments, resulting in minimal disruption for end users.
In contrast, when a global organization shifts to a Cloud ERP solution, the complexities of change management are multifaceted. This transition involves numerous changes, including modifications to tools, alterations in personnel roles, training requirements, and adjustments to user interfaces, as well as considerations around integration functionalities. Each of these elements significantly influences how users will interact with the new system.
If the plan involves a straightforward migration to a cloud-based, single-entity Cloud ERP, many of these considerations remain relevant. However, the pace and focus differ, as there’s typically a shorter runway compared to a phased rollout strategy. Furthermore, the complexity of managing multiple ERP systems concurrently is not a factor in this scenario.
Cloud Readiness: Time To Prepare
To effectively prepare for cloud readiness, conducting a thorough readiness assessment is essential. Begin by documenting your current solutions and mapping out your integration points. This involves identifying bottlenecks and pain points within your existing processes and suggesting updates to various tools or configurations that may need to be altered.
It is equally important to clearly outline any gaps in understanding or functionality, and to propose potential solutions for these gaps. This groundwork sets the stage for developing a comprehensive change roadmap, which will guide you through the myriad of tasks that lie ahead. Additionally, from this roadmap, you should be able to establish a realistic timeline that details the effort required for the implementation process.
To ensure comprehensive cloud readiness, here are the key preparatory steps:
- Documentation of the current solutions and all integration points
- Identification of bottlenecks and pain points that need addressing
- Updates to processes, tools, and configurations that are integral to the transition
- Assessment of gaps in understanding, along with proposed solutions
- Development of a detailed change roadmap
- Creation of a timeline that outlines the effort involved in the implementation
These components collectively contribute to a robust change management plan, empowering you to build and refine your roadmap for a successful implementation.
Avoid Leadership Missteps
In navigating the intricate landscape of change management, it’s essential to clarify the pathways that will take us to our desired outcomes, while also steering clear of common leadership pitfalls. Below, we outline critical leadership missteps that can derail progress:
- Underestimating Complexity: Change often involves a multitude of interconnected factors that can complicate implementation.
- Ineffective Communications: Clear and open lines of communication are vital to ensure all stakeholders understand the vision and their roles.
- Ignoring Change Impact: Failing to assess how changes affect various facets of the organization can lead to significant oversights.
- Inadequate Resources: A lack of sufficient resources can cripple even the most well-planned initiatives.
- Lack of Vision/Clarity: Without a clear roadmap, teams can easily lose direction and motivation.
- Ignoring Resistance: Neglecting the natural resistance to change can create rifts and slow down progress.
- Insufficient Involvement: Engaging the right individuals at all levels is crucial for fostering commitment and support.
One of the most prevalent issues we encounter is the tendency to overlook resistance to impending changes. Management might optimistically assert, “They’ll come around,” assuming that time will ease objections, yet this is often not the case. Such dismissal can foster friction and result in substantial delays during the execution phase of a project.
Don’t Narrow Your Focus
A common oversight in many assessments is their narrow focus on the future state. While it’s important to map out how we’ll transition from the current situation to our goals from a timeline and effort standpoint, we must also consider how to effectively leverage our internal talent to propel the project forward. Harnessing the capabilities of our internal staff is not just a strategic advantage—it can yield significant long-term benefits with minimal complications.
The key lies in utilizing best practices that engage all available resources. Identify team members who will take ownership of the project from within; if these individuals can dedicate their time fully, that’s ideal. However, even partial commitment can be beneficial. When internal resources are actively involved in the project, they contribute invaluable insights during the design phase, rather than waiting until the later stages, like testing.
Establishing this early ownership generates momentum that accelerates throughout the project lifecycle, ultimately driving higher user adoption rates during the go-live phase. Additionally, improved internal capabilities reduce reliance on external resources, leading to lower costs as internal teams can shoulder some of the responsibilities previously handled by external hires. This proactive approach diminishes the risk of schedule and budget overruns due to a well-established knowledge base that can effectively navigate challenges as they arise.
Did you miss part one and part two of this series? Click below to continue reading (or watch the webinar above)
- Part one: Read here
- Part two: Read here
