How to unlock value from your Oracle and PeopleSoft upgrades to ‘transformative’

Transcription

How to unlock value from your Oracle and PeopleSoft upgrades to ‘transformative’
Advancing from ‘technical’
to ‘transformative’
How to unlock value from your
Oracle and PeopleSoft upgrades
Value Creation & ROI
Business
Transformation
Upgrade
Business
Performance
Upgrade
Core
Technology
Upgrade
Smart companies learn to effectively manage
change. Value creation and return on investment
(ROI) increase as companies advance from a core
technology upgrade to a business performance
upgrade, and ultimately to a business
transformation upgrade. Organizations should
embrace change as an opportunity to drive
transformation whenever possible.
• Increasing ownership costs of aging customizations and
extensions
• Difficulty in justifying another upgrade because previous
implementation benefits were not realized
• Decentralized ERP processes, but cost reduction pressures
drive your organization toward shared services
• The older ERP data model doesn’t provide reliable
information and complex analytics to make better business
decisions.
Upgrade Value Assessment
KPMG’s Upgrade Value Assessment (UVA), built on KPMG’s
transformation framework, aligns business objectives, relevant
ERP value drivers, and technical considerations to create
a tailored, cost-benefit analysis-based upgrade roadmap.
During the UVA, we analyze six key areas to provide a
customized assessment and approach:
• Current ERP environment (configuration and technical
components)
• ERP/business process integration
• New features/value drivers
• Business process improvement opportunities
• Technology infrastructure improvement opportunities
• Upgrade execution costs
Creating business value: Upgrade now or stay the course?
Internal and external drivers force companies to make
difficult choices. Business requirements and expectations
often must be balanced with market demands, technology
challenges, compliance requirements, and available resources.
For companies using older versions of Oracle’s E-Business
Suite (EBS) or PeopleSoft Enterprise solutions, weighing
the costs of upgrading is an important decision that can be
influenced by several factors:
• Premier support has ended, or is ending, on your current
systems
• Issues with cost effectively addressing the changes in
accounting, regulation, and compliance requirements
AdVAnCing frOm ‘teCHniCAl’ tO ‘trAnSfOrmAtiVe’
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and
“cutting through complexity” are registered trademarks or trademarks of KPMG International.
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KPMG’s UVA offers an efficient and effective means to sort
through the myriad of new application features, focus on the
most relevant, and quantify the value they can provide. We align
the business and technology aspects to create a balanced view
for both sides of the organization.
Value Creation
Cost/Benefit
$’s
Upgrade Enabled
Transformation Benefits
UVA accelerators
At the heart of our approach are KPMG’s UVA accelerators,
which consist of our new features catalogs, process control
catalogs, process analysis tools, and our upgrade-focused
business case models. These accelerators enable us to build
a comprehensive, client-specific business case to meet
your objectives and help discover the value of new version
capabilities.
We utilize an application diagnostic tool to highlight
opportunities for companies to reduce costs, increase cash
flow and shorten cycle time by extracting more than 150 key
business process metrics and providing a monthly business
process scorecard. This tool enables fast and painless
base lining of current process performance, and identifies
quantifiable high-value improvement opportunities to gain
return from your upgrade investment.
Business case and upgrade roadmap
Our business case tools map relevant value drivers to strategic,
hard, soft, and ownership costs, each with its associated
benefits and shortfalls. This helps you objectively evaluate
and prioritize elements of the upgrade based on benefit
contribution, cost, and timing.
Beyond the business case, we also create an upgrade
roadmap that links your upgrade path to your other
transformation and operational initiatives. The roadmap helps
ensure that the upgrade is compatible with your business
vision and objectives – a necessar y condition for achieving
long-term, sustainable ROI.
Upgrade transformation rOi impact
Benefits result from adopting new features and modules, and
replacing manual processes and customizations with standard
functionality. True ROI results from an “upgrade-enabled
transformation,” aligning a core technology upgrade with
business performance and transformation initiatives.
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of
KPMG International. 26508NSS
Improved
Operational
Lower Efficiency
Overhead
Differentiating Costs
Internal
Customer
Service
Automation Benefits
Achieved through ERP
Investment
Break
Even
Process
Cost
Fewer Avoidance
Operational
Errors
Reduced
Better
Upgrade business Manual
Cost closings process
Improved
ERP
investment Data &
Technology
Integration
Costs
Benefits
By aligning the technical aspects of an upgrade with business
performance and transformation initiatives, an upgrade can be
justified based on tangible business-oriented ROI.
Upgrade-enabled transformation benefits
1. Reduced times to close, process designs, data models and
new functionality create sustainable benefits
2. Eliminates manual process steps and reconciliation, which
are tedious, time consuming and costly, and offer little return
3. Finance as a strategic business partner helps achieve greater
visibility and insight that drives performance
4. Reduced maintenance/reconciliation, process
standardization and shared services affect operational costs
5. Technology can streamline time and resource usage to
facilitate a focus on more strategic activities
driving efficiencies through the Upgrade Value
Assessment
Current inefficiencies
Future improvements
Data analysis and
reporting
Operational excellence
Customer invoicing
Alignment between business
and IT
Transaction processing
Integrated business processes
based on industry practices
Problem resolution
Accurate and timely financial
reporting information
Business processes
Reconcilable finance and
operating reporting
Limited capabilities in
existing and new Oracle
E-Business Suite
Address scalability challenges
Process and technical
scalability challenges
Significantly improve IT support
capabilities
Increasing Oracle
maintenance costs
Improve customer value
the KPmg and Oracle alliance advantage
Oracle long has recognized KPMG as a trusted business
advisor and industry thought leader. We have built important
relationships with Oracle product strategy and development
teams, fostering a deep understanding of product roadmaps
and aligning business requirements to technology functionality.
Our structured relationship with Oracle delivers direct value
to our clients and can help them achieve the most from their
Oracle solutions.
KPmg differentiators
Our clients work with us to get the job done. We take your
toughest challenges and help you find the right answers,
execute on them, and capture the benefits. We understand how
interconnected your organization is – from your operations and
functions to your regulatory environment and fiscal structures.
We can help you capitalize on your core capabilities and work
to eliminate weaknesses. Our global breadth, coupled with our
local knowledge, provide us the experience and insight to more
effectively work to your agenda, challenge your thinking, and
deliver the value you deserve.
KPmg insights
The KPMG knowledge base of articles and publications
demonstrates our understanding of the complex business
challenges faced by companies around the world. Check out
our thought leadership.
for additional information on KPmg’s erP upgrade value assessment
or other erP-related services, please contact:
H. reeves Smith
KPMG LLP
National Director – Oracle Business Development
Phone: 404-222-3497
Cell: 404-229-5960
[email protected]
kpmg.com
© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of
independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss
entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are
registered trademarks or trademarks of KPMG International. 26508NSS
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