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Part 3: EBS Optimisation Business Outcomes.
In the second of this three part blog series we:
- Dispelled misnomers that E-Business Suite is dead.
- Demonstrated the need to have a detailed understanding of where your current costs lie.
- Articulated the need for well-defined business goals.
- Identified the imperative to have consensus on your critical success factors and having a method to quantify the outcomes from your key performance indicators.
In this 3rd and last blog in this series, we conclude by discussing the business outcomes from EBS optimisations to protect and extend your investments in Oracle E-Business Suite, move you forwards and enable a successful transition to SaaS ERP at a time that is right for your enterprise.
It is only through the exploitation of digital technologies and its supporting capabilities that will lead businesses to become truly digital and able to harvest tangible and quantifiable value.
When looking at a budgetary level, we see fundamental issues with persisting with on-premises hosting strategy, specifically that it dominates and drains IT budget allocation. This translates into significant numbers.
Across medium and large enterprises you can easily be talking in the order of $24m to $36m of budget just to "keep the lights on". In taking no action, it is inevitable that you will remain in this constant drain cycle, which is signalling to you that your IT is a cost, not a value creator, and that meaningful action is now required.
Why is this a drain cycle? Well, to continue down the on-premises hosting road you need 4 things: budget, time, skills and capacity. All of these are scarce resources and you need all four to succeed. Take any one away and the strategy fails. If you lose budget, you have skills retention and capacity challenges that potentially hinder the growth of the business. If you don’t maintain skills, undesirable and often unforeseen risks creep in in areas like your ability to maintain security and regulatory compliance. In order to operate on-premises at the rate of change required, more and more time investment is needed across increasingly diverse resources and domains of expertise, driving up the operational cost of ownership. This can trigger additional challenges in hiring and retaining the skills needed to operate your systems through an internal FTE strategy. Lastly, capacity is a finite resource in most 3rd party data centers which implicitly constrains systems scalability and can create a glass ceiling for scalibility potential in areas like physical floor space, power and cooling. Now is the time to consider whether the 2000s mantra of 'maintain operations at any cost' is viable and sustainable.
The solution then to the unsustainable budget-consuming nature of on-premises hosting is cloud adoption. Market analysts state potential savings of between 30-60% can be made through cloud infrastructure models, and this is what we are seeing in reality. However, as the graphic below demonstrates, not all transformation routes lead to the same size pot of gold:
To optimise business outcomes you should:
- Transform with a partner like Hitachi Vantara who has the deep, broad and practical skills and experience to deliver your business outcomes successfully.
- Select the right CSP for your ERP workload: Oracle-on-Oracle in our experience is typically more performant and cost effective than other public cloud infrastructure offerings.
It is only through the exploitation of digital technologies and its supporting capabilities that will lead businesses to become truly digital and able to harvest tangible and quantifiable business outcomes.
To do more with less, rehosting and retention of Oracle E-Business Suite is one strategy that can lead to significant cost realisation and avoid high proportions of IT budget being allocated to just 'keeping the lights on'. In doing so, more budget can be better released into areas like innovation, that can ultimately lead to future investments being cost neutral.
Reach out for further information on how Hitachi Vantara's ERP Optimisation solutions portfolio can help you stay lean, secure, compliant and competitive:
- Free ERP Costing Exercise: Understand the real cost of your current hosting strategy and learn what savings you could make.
- E-Business Suite Upgrade Services: Stay supported and compliant.
- E-Business Suite Migration Services: Move your ERP applications, database and integrations to Cloud IaaS in a non-disruptive manner.