Ch…Ch…Ch…Changes: On-Premise ERP vs. the Cloud

Transcription

Ch…Ch…Ch…Changes:
On-Premise ERP vs. the Cloud
Session ID#: 102480
Presented on Wednesday, April 16, 2015
© 2014 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
About your presenter
Deron Stoecklein
Senior Manager, Practice Lead
Business Advisory Services practice
Executive summary
Deron has over 15 years of experience, in Human Capital process analysis, system design and
implementation as well as organizational design and workforce strategy. Deron has specialized in
leading strategic system assessments, evaluations and implementations of operational and core
back-office systems including process redesign and standardization. With a diverse background in
Oracle Human Capital Management Product Solutions, Deron provides a strategic and operational
perspective for clients evaluating and implementation Oracle PeopleSoft, Oracle e-Business Suite
and Oracle Fusion HCM offerings while helping clients to leverage ERP systems and industry
solutions for process improvement and efficiency while leading clients through large-scale program
management, change enablement and transformational initiatives.
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Agenda
Ch-Ch-Ch-Changes: On-Premise ERP vs. the Cloud
When implementing an ERP for HCM, there are a number of constants that exist whether you are
putting in an on-premise solution or a cloud solution...it’s still an implementation, after all. In this
session, we’ll explore those constants, but also talk about those change elements that are new
realities only associated with cloud-based ERP HCM implementations that need to be managed, as
well.
•  To Cloud or Not to Cloud
•  Change Impacts
– 
– 
– 
– 
– 
Change Readiness and Assessment Tracking
Business Engagement and Communications
Training
Organizational Alignment
Quality Assurance Checkpoints
•  Role Impacts
–  What Goes Away
–  What Stays the Same
–  What's New
3
About Grant Thornton
4
One of the world's leading organizations of independent audit, tax
and advisory firms
38,000
people in over
100 countries
65% of
Grant Thornton
International Ltd1
Forbes Global
100 companies
US $4.7 billion revenues
40,197 personnel3
served by Grant Thornton
International member firms
2,975 partners
725 offices
Statistics as of Sept. 30, 2014
5th largest
global
accounting and
consulting firm
58%
of 2013
Fortune 100
Grant Thornton LLP2 (U.S.)
$1.4 billion revenues
6,456 personnel3
529 partners
57 offices
Statistics as of Dec. 31, 2014
5
Oracle service offerings
6
Integrating
ERP, EPM and BI
Business
Analytics
Enterprise
Performance
Management
We help our clients integrate transactions to report on
financial results and variances with governed standards.
Services include:
•  Reporting and analytics strategy
•  Governance and master data
•  Foundation analytics
•  Pre-built analytics
•  Advanced analytics
We help our clients transform data into usable
information. Our services give clients better visibility into
their business that enables actionable decision-making:
•  Enterprise planning, forecasting and strategic
planning
•  Consolidations and financial reporting
•  Profitability analysis
•  Change assurance
Enterprise
Resource
Planning
We help our clients manage transactional detail from
every process within their business. Connecting this
information with users and ensuring that it meets their
specific needs are critical to enabling sound decisionmaking. Services include:
•  System strategy
•  Implementation
•  Technology integration
•  Upgrades, optimization, and support
Human
Capital
Management
We help our clients develop an integrated approach for
addressing current and future talent management issues.
Our services provide our clients the flexibility to scale the
solution or solutions to their business strategy, operating
model, and culture. Specific services include:
•  Assessments
•  System strategy and implementation
•  HR intelligence
•  Upgrades, optimization, and support
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Exclusively focused on Oracle
Broad product specializations that set us apart
•  Specialization is achieved through competency
development, business results, demonstrated expertise
and verified client success
•  Platinum achievement requires applied experience be
demonstrated for at minimum of 5 product areas across the
disciplines of pre-sales, sales, implementation and support
•  Enables access to Oracle knowledge capital, product
strategies and support resources not available to other
partners which can be used to bring value to our clients
•  Specialized in 15 product areas across ERP, HCM, BI and
EPM enabling us to successfully deliver integrated, costeffective, scalable solutions delivering Business Harmony
for our clients
ERP
• 
• 
• 
• 
• 
E-Business Suite
JD Edwards
PeopleSoft
ERP Cloud Service
HCM Cloud Service
BI
• 
• 
• 
• 
• 
BI Foundation Suite
BI Applications
Endeca
DRM
BI Cloud Service (BICS)
EPM
• 
• 
• 
• 
Hyperion Planning
Hyperion Financial Management
HPCM
Planning and Budgeting Cloud Service (PBCS)
Specialized in 15
products across ERP,
EPM, HCM and BI
Our commitment to
delivering Oracle valueadded solutions for your
business
© 2015 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton InternaBonal Ltd 8
To cloud or not to cloud
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Living in the clouds
Application strategy
Combinations
Cloud/SaaS
Managed at
customer
Managed
at third party site
On Premise
Living in the clouds
Application strategy
No "one-size fits all"
Considerations for which approach to take include:
• 
• 
• 
• 
• 
• 
Infrastructure & physical requirements
Organization resources
Technical knowledge and expertise
Industry security and legislative requirements
Need for extension and customization
Need for fault-tolerance & redundancy
Decision criteria
License Economics
Build Internal Expertise
Leverage Fusion Expertise and Infrastructure
Local Data
Remote Data OK
Extensions and Customization Capable
On-Premise
Subscription Economics
Limited Extensions & No
Customization
Cloud/SaaS
Total cost of ownership
Cloud Ready
Not Cloud Ready
Subscription
Economics ($)
Middle of the
Road ($$)
License
Economics ($$$)
• 
• 
• 
• 
Significant Infrastructure Available
Many Technical Organization
Resources
Relatively Stable Growth Projected
Longer Timeline Available
• 
• 
• 
Reduced or Limited Infrastructure
Limited Technical Organizational
Resources
Faster Deployment(s) / Scalability
Needed
Expertise
Cloud Ready
Not Cloud Ready
Heavily leverage
external experts
Leverage some
external
expertise
Build/Maintain
internal
expertise
• 
• 
Heavy Internal Technical
Knowledge Desired
Internal Application Expertise
Desired
• 
• 
Desire to Minimize Technical
Knowledge Requirements
Leverage External Functional
Application Expertise
Data management
Cloud Ready
Not Cloud Ready
Remote data
just fine
Some data
external is
okay
Local data only
• 
• 
Heavy Industry Data Security or
Regulatory Requirements
Strong Legislative Requirements
• 
• 
Comfortable with Data "Outside the
Firewall"
Legislative Requirements Allow
Flexibility to Maintain Data in the
Cloud
Level of customization
Fair Amount of
Customization
Required
Heavy
Extensions and
Customizations
• 
• 
• 
Extensive Customizations Required
by the Business
Require Code Customization
Capability
No change in process
• 
• 
• 
Cloud Ready
Not Cloud Ready
Limited
Extensions / No
Customizations
Required Extensions to Configuration
Relatively Limited
Code Customization Not Required
Process and procedure changes
acceptable to meet requirements
Need for fault-tolerance and redundancy
One more decision point to be considered:
•  If you have a high need for fault-tolerance / redundancy and have an
existing robust Disaster Recovery program that relies on access to
underlying IT infrastructure and that you want to closely maintain,
that would point you away from a cloud solution
•  On the other hand, if you are looking to off-load the information systems
infrastructure costs associated with a robust Disaster Recovery plan, that
would be one favorable point of the cloud as a solution
Other considerations
Design
•  Still need to design with software in mind
•  Some limits to "customizations"— really extensions of the
configuration, not real customizations
Integrations from Cloud to Non-Cloud or Other Cloud
•  To other Applications (for example, other ERP/HRMS)
•  To 3rd Parties (for example, payroll vendors or benefits vendors)
Change
•  But, of a slightly different flavor…
Change impacts
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Change impacts
There are (at least) two distinct, but inter-related areas of change
strategy associated with adoption of a cloud solution:
Change Control:
Change associated with the technology that ensures the
system is introduced in a controlled and coordinated manner, reducing the possibility
of faults being introduced into the system or undoing changes made by other
applications and/or users. The objective is to minimize disruption to services, reduce
back-out activities, and ensure cost-effective utilization of resources.
Change Assurance:
Change associated with the "people" side of the
introduction of new technologies and/or processes—in this case, moving them from a
non- or partial cloud environment to one that is more or entirely cloud-based
Change assurance
Adoption of cloud technologies requires the same "people" related
strategies typically needed for non-cloud implementations, including:
• 
• 
• 
• 
• 
• 
Change readiness assessment(s)
Executive and stakeholder alignment
Business engagement and communications
Training
Organizational alignment (job impacts, role alignment, etc.)
Ongoing support and other resources (QRG's, etc.)
One element that bears special mention is that the IT organization typically has
the most adjustment to a cloud environment due to the difference in roles and
responsibilities.
Change impacts
Integrated framework
QA Checkpoint
Plan
Design
QA Checkpoint
Build
QA Checkpoint
Test
Deploy / Support
Change Readiness Assessment & Tracking
*Organizational
Readiness
Assessment
Readiness
Survey(s)
Readiness
Survey(s)
Post
Implementation
Assessment
Business Engagement & Communications
*Stakeholder
Assessment &
Resistance
Management
Business
Engagement &
Comm
Approach
Manage Stakeholders
Detailed
Communication
Plan
Execute Communication Plan
End User Training
Training
Approach
and Scope
Role-Based
Training
Curriculum
Develop
Training
Training
Delivery
Checklist
Deliver
Training
Organizational Alignment
Job
Impact
Analysis
Role
Definition
Role to End
User
Mapping
Change impacts
Change readiness and assessment tracking
Purpose:
Provides assessment of organizational readiness for change impacts across multiple dimensions,
identifies people-related risks and any resistance points within the organization. Progress and
change acceptance are tracked throughout the project.
Value:
§  Proactively identifies risks and potential areas of resistance
§  Highlights key dependencies for project leadership
§  Offers continuous monitoring of the organization's state of readiness
Key Deliverables:
Organizational
Readiness*
Post
Implementation
Assessment
Readiness
Survey
* Delivered in one document with Stakeholder Assessment
Change impacts
Business engagement and communications
Purpose:
Equip leaders to sponsor changes and drive a sense of ownership among employees. Targeted communications are
utilized to set expectations, manage resistance, and ensure common understanding among all impacted stakeholders.
Feedback mechanisms are in place and used to track and improve communication effectiveness
Value:
§  The project objectives and value are clearly articulated to various audiences
§  Stakeholder change acceptance is tracked throughout the project, with key influencers engaged
in the change network
§  Communications are planned, accurate, timely, and delivered through the appropriate channels
Key Deliverables:
Stakeholder
Assessment &
Resistance Mgt.*
Business
Engagement and
Communications
Approach
Detailed
Communications
Plan
Change impacts
Training
Purpose:
Comprehensive training and development programs are identified that will build skills and knowledge
based on impacts to current jobs and roles. Training addresses changes to process, activities
(behaviors), and software/technology.
Value:
§  Ensures that all required training delivery elements are accounted for and in place prior to
training delivery
§  The organization is set up to provide ongoing training and performance support
§  Training events reinforce business case, job/role impacts, and new performance measures
Key Deliverables:
Training
Approach
Training Delivery
Checklist
Role-Based
Training
Curriculum
Change impacts
Organizational alignment
Purpose:
Impacts to jobs are analyzed, and future state operating model and roles are clearly defined. Roles
are mapped to end users and necessary skills/competencies are evaluated.
Value:
§ 
§ 
§ 
Organizational structure, roles, and responsibilities are appropriately aligned to support the change
Gaps in skills/competencies are identified and addressed through training and talent management
Organizational performance metrics are cascaded to team and individual metrics, ensuring that everyone is
working toward a common set of objectives
Key Deliverables:
Job Impact
Analysis
Role to End-User
Mapping
Role Defini*on © 2015 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton InternaBonal Ltd 26
Change impacts
Quality assurance checkpoints
Purpose:
Regular assessments of effectiveness of various change assurance strategies and activities at key
milestones, typically as project transitions from one phase to the next.
Value:
§ 
§ 
Helps reduce project risk through ongoing assessment of progress toward adoption of the intended process and
technology changes as project moves along the implementation journey, reducing "surprises."
Provides independent, expert input on key components of the project change assurance planning and execution
to drive required adjustments to maximize achievement of desired results.
Key Deliverables:
QA Checkpoint 1
• 
• 
• 
• 
Readiness Survey Results
Communication Audit Results – Completion
Communication Audit Results – Effectiveness
Communication Detailed Plan Adjustments
QA Checkpoint 2
•  Above plus…
•  Training Approach Audit Results / Adjustments
QA Checkpoint 3
•  Above plus…
•  Role Impact Analysis, Definition, Mapping Audit
Results / Adjustments (led by Atkore)
Role impacts
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Role impacts
Functional HR user
What Goes Away…
•  A lot of manual paper processing
•  A lot of manual spreadsheet manipulation / consolidation
•  As much need to "call IT"
What's New…
•  More technical responsibility / opportunity
–  More configuration capabilities
–  Enhanced reporting / report writing capabilities
•  Greater involvement with vendor support team via Service Request
process
What Stays the Same…
•  Traditional functional strategy / process decisions
•  Required knowledge of HR business requirements
•  Understanding of how various inputs effect system(s) and their outputs
Role impacts
IT support
What Goes Away…
•  Heavy influx of calls from HR for support
•  Access to underlying "technical stack" or code base
•  Technical development beyond integrations
What's New…
•  Increased reliance on the vendor via Service Request (SR) process
•  Support model becomes more of a "triangulation" between vendor, IT and
HR process
•  Responsibility for supporting technology
•  Understanding of how various inputs effect system(s) and their outputs
•  Need for integration support to external systems (including outside vendors)
Role impacts
Employee
What Goes Away…
•  Always having to "call HR"
•  Manual paper documents for HR transactions
What's New…
•  Increased self-service for HR transactions—"DIY capability"
•  Access to own data at your fingertips
•  For managers, much richer data about employees
•  Responsibility for managing HR tasks (e.g., benefits enrollment,
performance forms, etc.)
Key takeaways
32
Key takeaways
•  There are some critical decision criteria to consider when
determining if Cloud ERP is right for your organization
•  A move to the Cloud brings with it change impacts that have a
different flavor from implementation of traditional on-premise ERP
systems
•  However, it is still an ERP implementation and many of the change
impacts and strategies for managing it remain constant
•  Key roles from HR to IT to Employees are all impacted by a Cloud
implementation in some ways that are the same and in some ways
that are different from a traditional ERP deployment
Thank you
34

Ch…Ch…Ch…Changes: On-Premise ERP vs. the Cloud

Transcription

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