In this blog and webinar, we delve into the planning and preparation stages to help you ask the right questions and create a successful roadmap to Oracle Cloud. By the end, you will gain clarity on the various paths available, recognizing that there isn’t a one-size-fits-all solution. We’ll explore Oracle Cloud Infrastructure (OCI), Oracle Cloud ERP, and hybrid models, weighing their pros and cons as well as the timing and essential considerations to keep in mind before making your decision.
Available in the on-demand webinar only: We present case studies that detail specific journeys undertaken by organizations, including the challenges they faced and how we assisted them in achieving successful implementations. Lastly, we’ll discuss the readiness assessment tools we offer our customers, so that when you’re ready to embark on your journey, we can help you evaluate your current state and effectively craft your ERP roadmap.
To watch the discussion live, click the video below:
Cloud Journey: Planning & Preparation
To effectively begin your cloud journey, it’s essential to start with a comprehensive cloud readiness assessment. This involves documenting your current systems, such as Oracle E-Business Suite (EBS) or another ERP, along with their integration points with other systems, like payroll. During this assessment, it’s essential to identify any bottlenecks and pain points within your existing setup and to evaluate potential updates to processes, tools, and configurations.
After gaining a clear understanding of the gaps between your current state and your goals, you can brainstorm potential solutions to address these gaps. The challenges you encounter may vary based on your decision to migrate from EBS to OCI or to switch to a Cloud ERP system.
Change Roadmap
Developing a change roadmap is crucial for outlining your strategy, including a detailed timeline and specific requirements for a seamless transition. This roadmap should address not only changes in processes or tools, but also resource needs and strategies to achieve your goals.
Evaluate the relationship between technical debt and future initiatives to determine which elements can be improved or removed. Identify the business drivers relevant to the transition, which involves more than data migration—it requires reinvigorating practices, streamlining IT processes, and consolidating business processes.
Finally, establish key metrics to measure progress. Many organizations overlook the importance of thorough planning. Without a solid foundation, building the rest becomes a challenging task.
What Happens If The Assessment is Skipped in a Cloud Journey?
Organizations sometimes opt to forgo proper assessments, or they conduct assessments that lack sufficient depth and detail. This has led to two significant issues. First, if a client does not perform a thorough evaluation—regardless of the chosen model—it can create uncertainty in the project. This uncertainty poses a serious risk to the organization’s ability to implement desired changes effectively. Consequently, this may lead to significant cost overruns due to delays and disruptions within the organization, as the changes have not been adequately assessed and evaluated. Therefore, change management is a crucial element that requires careful evaluation. It’s vital to understand the extent of the changes being introduced and to have a solid plan in place for effective implementation.
One common challenge in this process is that, without adequate planning, a considerable amount of remediation work often becomes necessary at the end. For instance, end-user testing may fail to meet requirements, which can slow down the project. Ultimately, involving as many stakeholders as possible in the business process is essential for ensuring a smoother transition and successful implementation.
When you’re in the assessment phase, ask yourself the critical questions displayed on the screen to challenge yourself effectively:
- What is it that we’re really trying to accomplish?
- What do we need to resolve?
These questions will help you identify your goals. Once your goals and objectives are established, you can move on to:
- How do we achieve these goals?
- Is it through a new software set?
- Are we staying on an ERP system, such as EBS, and transitioning to an OCI model?
- What are the resource demands on us to deliver the change?
Organizations that can fully dedicate or allocate most of their internal resources to a significant change initiative tend to have more success than those that rely entirely on a system integrator or can only invest their resources part-time.
After addressing how to achieve your goals, you’ll face significant decisions regarding the amount of change your choices will bring to the organization. Consider whether your organization is risk-averse or willing to take risks, as this will influence your approach.
Once you’ve adequately addressed these three key components, it can help you avoid later questions about the purpose of the initiative, such as, “Why are we doing this?” By doing the necessary upfront work, you can minimize these types of inquiries. While such questions may still arise regardless of your efforts, addressing them early can reduce their impact and keep you focused on delivering the chosen solution.
The EBS to OCI Approach
When considering a transition from an E-Business Suite (EBS) to Oracle Cloud Infrastructure (OCI), it’s essential to recognize how this approach can benefit global firms with multiple entities worldwide. Suppose your organization relies on EBS and has numerous integrations with other tools—such as BlackLine or Sidetrade, and perhaps various payroll systems—along with customizations or extensions in your EBS environment. In that case, this migration model may be more suitable for you.
Instead of investing extensive effort in rebuilding all your integrations and addressing customizations and extensions, you can achieve a quicker transition to the Cloud Infrastructure by migrating your EBS platform directly into OCI. From a change management perspective, this has a minimal impact on the user community. Essentially, users will go to bed on Friday night using one URL to access their system and wake up Monday morning with a new URL. This is the extent of the change for them.
On the technical side, some effort is required to facilitate the migration process. However, this model allows for a faster transition while enabling you to take advantage of the Cloud Infrastructure that Oracle provides. This can also give you the time to develop your long-term strategy for transitioning from EBS to Fusion Cloud ERP.
Pros of Moving EBS to OCI:
Migrating from Oracle EBS to OCI involves minimal change management, as the user interface remains essentially unchanged, with no data conversion required. In contrast, moving to Fusion ERP requires data conversion. Organizations can also leverage generative AI, enabling a quicker transition while maintaining full access to custom objects and extensions, which reduces total ownership costs and improves scalability. Additionally, OCI provides access to a marketplace for third-party applications and new services.
Cons of Moving EBS to OCI:
On the downside, users miss out on application-based generative AI available in Cloud ERP, and patching responsibilities fall on the client in EBS. While Cloud ERP features continuous updates with quarterly patches, staying current in EBS requires effective patch management.
The Hybrid Approach
The term “hybrid” can refer to two different models. For example, one model could involve a company using EBS for some operations while managing its supply chain on the cloud and handling financials with EBS as well.
Another model, as an example, might involve a global company that is currently using an ERP system but wants to migrate to the cloud. In this case, the company could implement a smaller entity that covers about 80% of its business processes. They would run this entity on Cloud ERP as a proof of concept. Once the proof of concept is stabilized, they can begin rolling out the cloud system across their various global regions. We have seen this model deployed numerous times, and many of our clients have successfully implemented it.
The hybrid approach involves migrating the EBS to OCI while simultaneously integrating Oracle Fusion Cloud applications. This model may require a longer implementation time due to its involvement with Fusion and various integrations. Although both tools are Oracle products, the integration between Fusion applications and the E-Business Suite may not fully meet your business requirements. This could necessitate additional effort to bridge the gaps.
Moreover, implementing these integrations may result in temporary work that might eventually become obsolete. However, if this is part of a long-term strategy, the initial investment in these integrations can yield significant returns over time. This approach is often more prevalent in smaller, non-multinational organizations that can adapt quickly.
Another key aspect of the hybrid approach is considering the level of customization in your existing system and the specific modules you are using. Some components might be advantageous to migrate to Fusion, while others may not. During this transition, it is essential to assess where applications will be positioned within the overall ecosystem. This includes understanding how EBS interacts with external applications and determining the most effective way to leverage those services. Ultimately, it’s crucial to identify the aspects of your environment that are being modernized throughout this process.
Pros of the Hybrid Approach:
The hybrid approach enables on-demand resource adjustments without requiring significant hardware investments, thanks to the SaaS model. Its pay-as-you-go structure reduces capital and operational expenses, lowering server costs. Maintenance is simpler, with cloud automation cutting IT overhead and enhancing reliability. Additionally, improved security features, including built-in compliance and data protection, ensure robust security for your EBS environment.
Cons of the Hybrid Approach:
Migration can be complex, requiring significant rework of customizations and integrations, so careful planning is essential to avoid disruptions. Staff will also need training on new tools and workflows.
Another concern is vendor lock-in, as reliance on the cloud provider’s infrastructure limits customization options compared to traditional EBS environments. While Oracle provides quarterly patches, this reliance on integrations can be seen as a limitation of the hybrid model.
The EBS to Fusion Cloud ERP Approach
Oracle’s long-term goal is to transition to Fusion Cloud ERP. Therefore, it’s vital to assess which customizations can be eliminated. Fusion regularly releases updates, and many customizations that were previously necessary are now becoming standard features within the product offerings.
Take the time to evaluate all these changes and make informed decisions regarding your approach—whether you have multiple pathways to achieve your goals or a single path. This will help you meet the needs of your internal customers and business objectives while maintaining a competitive edge in the industry.
Pros of Transitioning from EBS to Fusion Cloud ERP:
Moving to Cloud ERP offers a significant reduction in total cost of ownership, as it eliminates the need for server upgrades and hardware maintenance. This enables your DBAs to focus on more strategic tasks rather than managing infrastructure. Essentially, by transitioning to either Cloud ERP or Oracle Cloud Infrastructure (OCI), you shift your business’s focus away from managing infrastructure, enabling you to concentrate on running your business more effectively.
Most companies do not exist solely to manage their internal infrastructure. Moreover, applications in Cloud ERP are continuously improved through regular quarterly updates, which include essential patches.
A key distinction between Cloud ERP and OCI is that Cloud ERP incorporates specific generative AI capabilities within its applications. Additionally, it utilizes near-real-time integration capabilities through Oracle Integration Cloud (OIC). OIC provides a rules-based integration framework that allows for more efficient processes. For example, in project management, if a task changes status, an integration can trigger an immediate action, as opposed to the older batch model used in EBS, where integrations were executed two or three times a day or once overnight. This ensures that you receive near-real-time data, keeping everything current and up-to-date.
Cons of Transitioning from EBS to Fusion Cloud ERP:
A significant challenge you will face is change management. While the core functions in Cloud ERP are similar to EBS, the workflows and appearance will differ. Cloud ERP is built around best practices, so if your business processes don’t align with the software, you’ll need to adjust them or consider a Platform as a Service (PaaS) solution.
The delivery time for transitioning from EBS to OCI will be longer than for transitioning from EBS to OCI, as the latter is primarily a technical implementation. In contrast, the former involves a comprehensive functional and technical rollout.
It’s also vital to consider your application ecosystem. When updates occur, conduct testing to ensure integrations and data flows remain intact. Although issues are rare, they can happen during code updates, so document processes, create runbooks, and have a testing plan ready. Be mindful of these factors as you proceed.
Oracle Construction & Engineering Application Considerations
Oracle’s Construction and Engineering products, such as Primavera Unifier and P6 EPPM, can seamlessly integrate with various systems without any issues. The Primavera products are designed to work independently across different environments.
There are no constraints when it comes to using these applications; you are not required to use Cloud ERP or EBS. You have the flexibility to choose the system that best fits your needs.
