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Expansion Plan


Growing midsize organizations gain competitive advantage with modern ERP cloud.


by Alison Weiss, February 2014

A survey from CFO Research found 64 percent of senior finance executives believe a complete implementation of cloud applications can reduce operating costs by as much as 20 percent. And 81 percent believe cloud can also increase productivity.

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Oracle Enterprise Resource Planning Cloud (Oracle ERP Cloud) addresses this interest, reducing ERP complexity, risk, and cost while boosting innovation and agility. The solution helps organizations of all sizes avoid fixed capital investments during periods of economic uncertainty, and delivers timely access to the latest software capabilities. Oracle ERP Cloud has seen proven success in Fortune 500 companies, but it also gives midsize organizations access to the same ERP competitive advantages enjoyed by their larger counterparts.

It’s a big milestone when managers at smaller organizations implement ERP, says Rondy C. Ng, senior vice president of application development at Oracle. But until recently, they’ve been limited to lightweight or scoped-down ERP solutions because full-featured on-premises solutions were considered (rightly or wrongly) prohibitively expensive.

According to Ng, tier 2 solutions have limited multilanguage, multicurrency, and multi-GAAP support as well as limited support for country-specific legislative reporting and payment formats. “As organizations grow and need to operate in other countries with different accounting requirements, those tier 2 solutions may not be sufficient,” says Ng.

The question to ask is, ‘why not Oracle cloud?’ rather than ‘why cloud?’
Rondy C. Ng,
Senior Vice President of Application Development, Oracle

Migrating from a less-than-enterprise-class ERP system typically means a costly and frustrating ERP replacement. In contrast, choosing a flexible cloud-based ERP solution from the outset reduces the impact of ERP replacement risk, favoring a solution that can easily scale as the business grows.

Oracle ERP Cloud is a complete solution that spans financial accounting, procurement, and project portfolio management. So, managers are no longer limited to using cloud applications for specialized or siloed department functions, which Ng says has been typical of first-generation cloud services. Oracle ERP Cloud is also fully integrated out of the box with Oracle Human Capital Management Cloud and Oracle Customer Experience Cloud.

64
percentage of senior finance executives who believe a complete implementation of cloud applications can reduce operating costs by as much as 20 percent (Source: The Business Value of Cloud Computing, CFO Research, 2012)

Further, for organizations that are not ready to completely replace on-premises ERP systems with cloud-based options, Oracle ERP Cloud provides a low-cost, high-value coexistence strategy. For example, customers who want to add advanced financial reporting to existing on-premises applications can simply subscribe to Oracle Financials Cloud without installing anything locally or investing in a new technical infrastructure.

In the last 18 months, Ng has seen momentum building among customers toward adopting cloud-based ERP solutions. He believes that CFOs of fast-growing midsize organizations will increasingly turn to the cloud to build a modern business platform for sustainable growth. “It’s a standard consideration when it comes to ERP deployment,” Ng says. “The question to ask is, ‘Why not Oracle Cloud?’ rather than ‘Why cloud?’”

Alison Weiss is a frequent contributor to Profit.

 
 
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