In part two of this blog series, we delve into essential questions to consider before making the transition to Oracle Cloud Infrastructure (OCI) or Oracle Fusion Cloud ERP (Cloud ERP). These questions will guide you in evaluating your organization’s readiness and specific needs. Additionally, we will explore the various migration scenarios available, providing insights into the different pathways you can take to ensure a smooth and successful transition to the cloud.
When considering a transition to OCI, Cloud ERP, or a hybrid environment, it’s crucial to engage with a set of questions that will guide your decision-making process. It’s important to approach these questions with honesty—perhaps even a level of brutal honesty—to ensure that your organization’s needs are genuinely addressed.
Or, check out this on-demand session from OATUG’s Ascend conference with Bruce Meghan, VP of ERP and Project Solutions at Project Partners:
What To Ask Yourself Before Moving to Oracle Cloud
The First Question: What are you trying to accomplish?
Before making any decisions, you need a clear and defined understanding of your objectives. Are you aiming to enhance operational efficiency, reduce costs, improve scalability, or replace outdated systems? Clarifying your goals will not only help shape your strategy but also serve as a benchmark against which you can measure the success of your implementation. Documenting these objectives will provide a reference point for your team throughout the transition.
The Second Question: How much change will come to the organization based on the method you choose?
The degree of transformation required can vary significantly depending on whether you opt for OCI, Cloud ERP, or a hybrid solution. It’s imperative to conduct a thorough impact assessment to identify how these changes will affect your organization’s processes, culture, and structure. A robust change management strategy is essential; without it, the resulting friction could undermine the initiative. Consideration should be given to training requirements, resistance management, and communication strategies that will guide your team through this transition.
The Third Question: How will we achieve our goals?
Once your objectives are clear and the scope of change understood, the next step is to formulate a concrete action plan. This plan should outline specific initiatives, resource allocation, timelines, and key performance indicators (KPIs) to monitor progress. Engaging stakeholders at every level can enhance buy-in and collaboration, ensuring that all team members are aligned with the project’s vision. Develop contingency plans to address potential challenges you may encounter and remain flexible to adapt to unexpected developments. Answering this question will enable you to bypass question number four altogether.
The Fourth Question: As the implementation progresses, continually ask yourself, ‘What were we thinking?’ or ‘Why are we doing this?’
It’s not uncommon to face moments of doubt during the implementation phase. However, if you have clear goals and objectives combined with a solid Organizational Change Management (OCM) plan, you will avoid having to answer the “What were we thinking?” and “Why are we doing this?” questions altogether. These questions can increase the friction surrounding the cloud migration initiative. By establishing your initial goals and motivations, you can mitigate the risk of confusion and misalignment that could lead to project setbacks. Foster an open dialogue within your team where concerns can be voiced early on.
Approaches to Your Oracle Cloud-Based Solution
In this section, we will explore several comprehensive strategies for migrating to an Oracle Cloud-based solution, outlining specific goals and critical components of each approach.
Scenario One: Global Enterprise with Disparate ERP Systems Using On-Premise EBS Model
In this scenario, the objective is to transition to a unified platform that harmonizes operations across all entities within the organization. The first step involves conducting a thorough readiness assessment to identify existing gaps in business processes that may hinder integration.
The migration process begins by transferring the on-premise Oracle E-Business Suite (EBS) entities to Oracle Cloud Infrastructure (OCI). Following the migration, it’s essential to address any identified business process gaps through necessary adjustments or closures. To validate the migration, the first entity transitioned to OCI serves as a proof of concept, allowing teams to confirm the stability and functionality of processes in a cloud environment.
After ensuring that the proof-of-concept functions effectively, the next phase involves rolling out the solution to other entities within the organization. Prioritization is key here; strategic decisions must determine the order in which regions will transition to the new platform. This phased approach not only streamlines the migration process but also provides a systematic pathway for establishing a standardized cloud platform across the global enterprise. This strategy provides organizations with a standardized cloud platform to plan their migration to Oracle Cloud ERP, mitigating the risks associated with managing multiple ERP systems simultaneously.
Scenario Two: Global Enterprise with a Common On-Premise EBS Model
In this case, the client operates under a unified on-premise EBS configuration that has been extensively customized. The primary goal remains the same: to migrate to a cloud environment while retaining critical custom code that supports their business processes.
As in the first scenario, the migration begins with a comprehensive assessment to evaluate potential impacts on integration points and process changes. Following this, a robust testing phase is initiated to ensure that all custom objects function correctly in the cloud environment. This includes not only migration but also thorough remediation testing to ensure that all customized features operate seamlessly post-transition.
Upon successful validation, the instance is released to the business, resulting in a cloud-based global enterprise solution. This approach uniquely allows clients to maintain their customizations while transitioning to a cloud infrastructure, recognizing that customization capabilities are more limited in Cloud ERP compared to EBS. Clients can utilize their ten years of continued support for EBS to navigate the transition thoughtfully, leveraging the advantages of cloud technology while they formulate a long-term strategy for ERP application readiness.
Scenario Three: Cloud ERP Migration
Here, we consider a scenario where the organization focuses on migrating to a Cloud ERP to establish a unified platform across all entities. As always, the initial phase involves conducting a readiness assessment, which evaluates potential gaps in business processes, user knowledge, integration capabilities, and other key areas impacted by the transition from legacy systems to the new Cloud ERP applications.
In this case, it is essential to select a mid-sized entity—one that embodies the range of standard business processes undertaken by the entire organization—as a proof of concept for the cloud solution. This selection should not be the largest entity; rather, it needs to represent a typical cross-section of the business’s operations.
After implementing the proof of concept and allowing it to run for a predetermined period, the organization can evaluate the solution’s stability and address any identified issues. Once satisfied, the rollout of the solution can commence across the broader enterprise, aligned with a carefully crafted strategy. This methodology ensures that organizations can make adjustments based on feedback from initial implementation, subsequently refining the approach for subsequent waves of deployment. Furthermore, it allows room for adaptability regarding legal or regulatory requirements that might arise as the solution extends into different regions.
Scenario Four: Cloud ERP Migration from a Non-Legacy Oracle System
In this final scenario, we encounter an organization executing a Cloud ERP migration from a singular entity with a non-legacy Oracle system. The migration process closely mirrors that of the third scenario, starting with a thorough assessment to pinpoint any potential gaps in business processes, user proficiency, and integration concerns.
Unlike the phased rollout approach in the previous scenario, this migration employs a “big bang” strategy, allowing the entire organization’s operations to integrate into the cloud simultaneously. This method significantly accelerates the transition timeline, yielding a swift return on investment as all departments and functions become aligned on the new platform simultaneously.
By deploying this strategy, organizations can achieve a swift and comprehensive transformation, minimizing disruptions while maximizing the benefits of transitioning to a modern Cloud ERP system.
These enhanced approaches provide a framework for enterprises to navigate their journey to a cloud-based environment effectively, ensuring they are well-prepared for the new operational landscape.
