Based on one survey IT Convergence conducted among Oracle OpenWorld 2016 visitors, of 340 people who are CIOs, CTOs, IT Managers, or Project Managers, 67% said cost savings in Oracle EBS implementations was the top initiative for their organizations.
With over 600 global ERP projects under our belt, today we are sharing 3 aspects organizations can consider to reduce the cost in a global implementation of Oracle EBS.
1. Go for a Single Global Instance
The overall cost of IT assets increases whenever you manage multiple business applications which require different hardware, licenses, and support in different countries.
Using one global ERP, such as Oracle E-Business Suite, allows you to consolidate the IT resources, support, and application licenses into one. Running a single instance of an ERP brings consistent processes and real-time reporting for the entire organization, and also eliminates the time and resources used, increasing visibility and business value.
2. Reduce the Number of Customizations
While a certain amount of customization is inevitable for some organizations' unique processes, a specific country or a unique industry, avoiding unnecessary customizations can significantly reduce implementation costs. It also produces savings in the long run, as customizations will likely require updates, testing, and maintenance whenever there are new patches installed, or new architectures or version releases.
When rolling out Oracle EBS globally or replacing the local ERP system with global Oracle instance, you need to define what is "Must have" vs "Nice to have". For example, in China, the government requires that the accounting software has the ability to display and print reports in Chinese and store data in Chinese. Hence, one of the most common questions our clients ask is whether or not Oracle's MLS (Multiple Language Support) option is required. The answer is UTF8 (or Unicode Transformation Format) is required, but MLS is not, though the vast majority do chose to go with MLS. (Here are more posts about implementing Oracle EBS in China)
3. Use Experienced Local Professionals
When conducting a global implementation, regional barriers includes different languages, time zones, currencies and reporting requirements that need to be adapted into the Oracle system. More importantly, it can be extremely challenging to deal with cultural barriers without proper guidance. Overcoming cultural hurdles relies far more on local knowledge than on technical knowledge. A smart and valuable partner can act as a neutral party and teach both your local users and global teams how to communicate without interference and work in unison to increase efficiency.
Beyond what we discussed above, there are other considerations for cost savings, for instance, migrating legacy systems, adopting new cost-efficient technologies such as Oracle ERP Cloud, or finding the right delivery model: Automation, Shared Services, Outsourcing, etc. Though cost savings will continue to be the top initiative for business in the future, it's not just about cutting the budget or squeezing expenses, but spending money smartly and innovatively.
Partnering with a technology advisor who has project experiences in your same industry, location or country will help you overcome specific requirements, provide you a established project toolkit and template, and reduce the project risk - ultimately saving your money.