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. 26508NSS 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 Oracle and Java are registered trademarks of Oracle Corporation and/or its affiliates. Not permissible for KPMG audit clients and their affiliates.
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