ERP 2.0 (Cloud, New Functionality, FAH, Integration and M&A Focus)

Emtec, Inc. Proprietary & Confidential. All rights reserved 2014.
ERP 2.0
September 4th, 2014

Agenda
ERP Overview
Time to Migrate to the Cloud?
What are traditional ERP doing to combat SaaS solutions?
What are my Options?
Questions
2

Speakers
3
Jon Given Director – Oracle Financial Applications
•13 years of ERP and Reporting experience
•Solution Architect and Engagement Manager across PeopleSoft, EBS and Oracle Cloud ERP applications
•Background across Order to Cash, Procure to Pay and Record to Report business processes
•(312) 216-6905
•Jon.Given@emtecinc.com

ERP Overview

ERP History
•When first introduced, ERP was focused on
–Transactional processing and automation
–Enabling Controls
–Could be customized to replicate existing business processes
•ERP Today
–Exception based processing
–Role-based workflows
–Leverage delivered functionality with little (or no) customizations
–Agile and responsive to changing business conditions
–Critical to align data in support of analytics and reporting
5

Core ERP Functionality – Table Stakes
•Accounting and Finance
•Procure to Pay
•Order to Cash
•Project Portfolio Management
•Reporting
•Workflow
•Approvals and Controls
6

ERP 2.0 Functionality
•Modern User Experience
•Role-based dashboards
•Exception management
•Mobility
•Pre-built Analytics
•Adaptable
•Expandable
•Sustainable
7

ERP Providers
•Tier 1
–Oracle (PeopleSoft, EBS)
–SAP
•Tier 2
–Microsoft,
–Lawson
–Infor
–Oracle (JDE)
•SaaS
–Oracle Cloud (Fusion ERP)
–NetSuite
–Workday
–SAP Cloud
8

Time to migrate to the Cloud?

Companies Are Considering The Cloud
10
2013 CIO Survey: “More than half of CIO’s indicated that they would source all of their critical applications in the cloud by 2020”
“Business buyers are bypassing IT and buying cloud services directly”
“25% - 40% of IT spending takes place outside of the IT budget”
“Spending on the cloud is growing much faster than spending on on-premise deployment models for IT”
Source: Gartner

SaaS ERP
•Smaller up front software investment
–Evaluate monthly costs vs ongoing maintenance
–Operational expense vs capital
•Assumed faster time to value
•Potential to lower operational costs
•Seamlessly deploy new features and maintenance
11

Why doesn’t everyone move to SaaS
•SaaS still has limited share of ERP market (4% share)
•Cloud ERP (Hosted ERP) – 11% share
•Concerns around mission-critical and data sensitive tasks
•Slow replacement cycle for ERP applications
–Today - 6.4 years old
–2004 – 5.1 years old
•Integration challenges
•Limited or no ability to customize the applications
•High risk and cost associated with platform migration
12

Cloud Is The “Shiny New Object”
13
There is a lot of interest in the cloud because it is perceived to be a low cost alternative.
Gartner says the goal is not to move business processes to the cloud, the goal is to use cloud services to:
•Accelerate business outcome
•Reduce capitol expenditures
•Improve customer experience
•Reinvent processes as part of the digital strategy
But Is Cloud Cheaper?

Is Cloud Cheaper?
14
Many sources maintain that cloud is not always proven to be cheaper.
“A number of studies have been conducted which show cloud does not necessarily reduce TCO long term but it does reduce capital expenditures short term” - Gartner
Different Cloud offerings will produce differing TCO evaluations over the short and long-term. Some cloud services are not cheaper in the long run and can actually cost you more. Others are a great overall value short term and long term.
Aside from cost, many businesses can benefit greatly by offloading processes and services that are not part of their core business allowing them to achieve greater focus and competitive advantage.

Total Cost Of Ownership
15
In addition, there are many other benefits Cloud can bring to bare including:
•No capital costs
•Additional capacity on the fly
•No up-front software costs
•Standardization and agility
When analyzing the TCO of cloud V.S. on-premise, be sure to consider all factors including:
•Upfront software costs
•Hardware costs
•Annual support fees
•People costs for infrastructure, development, support, etc.
•Disaster Recovery
•Upgrades
•Lower power costs
SaaS typically includes these costs
Not all Cloud services are cheaper in the long run but todays SaaS business application can save you a lot of money!

Emtec Provides A Free TCO Analysis To Clients
16
Executive-Ready Dashboards
Detail-level TCO comparisons

What are traditional ERP doing to combat SaaS solutions?

Evolution of Traditional ERP
•Becoming more SaaS like
•Oracle has released Cloud ERP, but also made significant changes to traditional ERP products
–Continuous delivery model – no more “Feast or Famine” for new functionality
–PeopleSoft 9.2 is now a platform – no more major application upgrades
–Modern user experience
–Mobile functionality
–PeopleSoft Update Manager
18

PeopleSoft Roadmap - Old
19

PeopleSoft Roadmap
20

PeopleSoft Roadmap - Ongoing Investment
21

What are my options?

Deployment Strategies
23
Continue on Your Current Path
•Upgrade to the latest release of your existing applications
Adopt a Co-Existence Strategy
•Add new SaaS Applications modules or product family (i.e. HCM, ERP, CRM) to existing investments
Migrate to new Application Platform
•Deploy the complete suite of Fusion Applications

SaaS Implementation Considerations
24
“SaaS is more than just an alternative deployment model; it has unique characteristics that require new ways of thinking about vendor selection, contracting, risk tolerance and organizational skill set requirements.:
- CIO.com
Emtec has implemented a number of Cloud applications for its clients and has found that company interested in moving their business applications to the cloud should know that:
•Implementation of cloud solutions is very different from on-premise implementations that they are accustomed to
•Integration in the cloud can present challenges
•Cloud applications are “configurable” NOT customizable
•Data loading and configuration are very sequential and may require extra time
•Fewer environments typically come with SaaS than companies are accustomed to
•Muti-tenancy is not really a good thing as many vendors lead you to believe
•The same level of effort is required during many phases of a cloud implementation as is during an on-premise implementation

Co-Existence – Fusion Accounting Hub
•Fusion Accounting Hub
–As an accounting integration platform, FAH standardizes the accounting from non-Oracle third party transactional systems to efficiently create detailed, auditable, and reconcilable accounting to any general ledger system.
25

Co-Existence – Fusion Accounting Hub
•Fusion Accounting Hub
–As a reporting platform, FAH offers E-Business Suite and PeopleSoft customers exceptional reporting and analytics with minimal disruption to their current financial processes
–Packaged integration with PeopleSoft and EBS
–Can also integrate with 3rd party systems
26

Q & A

ERP 2.0 (Cloud, New Functionality, FAH, Integration and M&A Focus)

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