Do HR and finance leaders have time to assess their technology needs?
This is a guest Blog post from Andy Nellis – CEO of eResolve, specialists in providing ‘value add’ solutions using their expertise in ERP Technology and Business Management.
Please see our partner page for further details of eResolve and how they can help you with implementing, upgrading or enhancing your eBusiness Suite installation.
If there’s one question that all HR and finance leaders are asking themselves right now, it’s probably something like: “Should I start thinking about transitioning away from my ERP on-premise solution?”
Pose that question to software vendors and of course you will largely get the same answer: cloud ERP is the future, so it makes sense to begin the transition as soon as possible if your on-premise solution is falling short.
You can certainly make a strong argument for moving your ERP solution to the cloud. As per a joint study from Oracle and the MIT Technology Review[i], undertaken in 2017, nearly half (46%) of finance and HR professionals say a full cloud deployment has led to significantly improved collaboration between departments, and nearly half expect a significant improvement in the next two years.
The study, ‘Finance and HR: The Cloud’s New Power Partnership’, also revealed productivity benefits, with almost one-third (31%) of respondents saying they now spend less time doing manual work as a result of moving to the cloud, freeing up time to work towards larger strategic priorities.
But, advising organisations to migrate their HR/finance systems to the cloud without proper consideration is not something you would find e-Resolve doing. We prefer to spend time understanding our clients’ businesses, people and requirements before helping them to build their roadmap. Our approach is business first - rather than technology first, enabling us to deliver solutions that bring the envisaged benefits to our clients, and which can be measured against their business case to ensure the return on investment is achieved.
Does on-premise ERP still have a future?
The death knell for on-premise ERP will ring once the technology vendors stop supporting the software – but there’s no sign of that happening any time soon.
Last year, Cliff Godwin, Senior Vice President, Oracle E-Business Suite Development, guaranteed support for the EBS on-premises product until the year 2030 and beyond.
Speaking at an Oracle leadership forum in Australia, Godwin said the company knows it has plenty of customers, many of them in military or other sensitive government fields, which are likely years or decades away from being comfortable in the public cloud.
His advice for organisations was “if you are contemplating moving to cloud, do it for merits of the business not because you are afraid the suite is going to expire out from under you”.In other words, business needs and objectives, rather than technology, should dictate the solution.
Beginning with the business
Whether you’re a stakeholder working in Finance or HR, the right solution successfully implemented should help your function and in turn, your organisation achieve its goals in the short, medium and long term.
Let’s look at HR as an example. At the moment, less than one in ten (9%) HR teams feel like they are completely achieving their goals[ii].
Broadly, HR teams have the same common goals, which include:
- Optimise/map employee lifecycle
- Deliver better employee experience
- Enable effective remote working
- Reduce workloads with employee self-service
- Enable collaboration
- Embed social into HR systems and processes
- Attract and retain talent
- Predict future recruitment needs/talent shortages
- Continuously improve core HR processes
For HR leaders, it’s a case of using best practices, benchmark data, and knowledge about their own unique environment to draft their own organisation-specific HR goals which are aligned with the principal business strategy.
Leaders will go through this goal-setting process every year. But as the previously mentioned research shows, they’re not setting themselves up for success. Technology can help HR teams achieve all/more of their goals, but only if the best solution is identified, and backed up by a roadmap.
The best solution doesn’t have to be a cloud-based offering – but if your HR priorities are, for example, to enable effective remote working and improve collaboration, then it might be. It all depends on what you need to achieve and by when – and what it is about your current system that’s stopping you from getting there.
Don’t make the mistake of opting for a solution because the sales reps have done a great job of selling you the benefits. Whether it’s an upgrade of your ERP, a hybrid solution or a wholesale move to the Cloud that’s right for you, take the time to conduct a ‘landscape review’ of your organisation and then take your findings to market. Rest assured, on-premise ERP isn’t going anywhere right now, so you have time to decide the best route for your organisation to go down.
Also, don’t forget there will be an impact on your licensing, whether you are thinking of using the licences you own in the cloud or starting from scratch. Madora can help you assess the best solution whether you decide to stay on-premise for now or make the move to the cloud.
Do HR and finance leaders have time to assess their technology needs? @oralicencepro #oracle licensing