The Oracle Cloud Applications are designed for organizations across industries with at least $750 million in annual revenue. Smaller organizations can run the application set but are often resource-constrained, which leads to less functionality being adopted or implemented.
Oracle started developing its Cloud Applications seven to eight years ago. While rebranding Oracle Fusion into the Cloud Apps and broadening the scope of functional areas has benefited Oracle’s cloud ERP offering, it still lacks some functionality. This is slowing down their new sale and cloud conversion rates.
The intent of the product is to bring best practices from their other products (CRM, Manufacturing, Financials – Seibel, JDE and EBS). However, not all complex processes and functionality have been built into the new application, and Oracle is relying on system integrators for heavy configuration or product extensions to supply basic functionality. Many organizations, including Panorama clients, see the Cloud Apps as too risky and too expensive.
However, the Cloud Apps do have an intuitive user interface. Historically, separate applications, like Transportation Management or Demand Forecasting, had different user interfaces and were difficult to navigate. With the Cloud Apps, Oracle has done a nice job of combining functionality of these separate applications while updating and harmonizing the user interface.
Despite the intuitive user interface, we have found that user adoption rates for the Cloud Apps are behind the curve when compared to other leading vendors regarding innovation, deployment methods and overall maturity. For example, Oracle has been developing their artificial intelligence platform for many years, but it has lagged in functionality for production and distribution environments.
Another challenge for the Cloud Apps has been Oracle’s recent change in leadership. Last year, Thomas Kurian, Oracle’s President of Product Development in charge of the Cloud Apps, left the company, leaving the focus of the future development of the Cloud Apps unclear. Kurian wanted Oracle to be more public-platform-agnostic, inclusive of Amazon Web Services (AWS) and Microsoft Azure. This conflicted with Oracle co-founder, Larry Ellison’s desire to continue to operate solely on the Oracle platform.
What does this mean for Cloud App customers and potential customers? For the time being, the Cloud Apps will only operate on the Oracle platform and not the Azure or AWS platforms. This may pose challenges for some organizations as full dedication to the Oracle platform, including toolsets and services, is often too much to ask for mid-sized organizations. Platforms like Azure and AWS make it easier for customers to source experienced resources to support their ERP systems.
Oracle’s dedication to the Oracle platform has also affected customers’ ability to automate certain business processes as some functionality is still in development. While Oracle continues to develop functionality, it is hesitant to tie future releases to specific dates. As a result, many system integrators are developing their own extensions as a bridge until Oracle releases the necessary functionality.
During ERP implementation, organizations often become frustrated with products that lack certain functionality as this can mean a longer time to full benefits realization and return on investment. However, this does not need to lead to ERP failure, as long as the organization sets realistic expectations and has a plan for continuous improvement.
Despite slow product development, the Cloud Applications is headed in the right direction, with new functionality emerging every day. Based on RFP summaries from our recent client engagements, we have found that the Cloud Apps can meet most clients’ financial, manufacturing, consumer-packaged goods and supply chain management needs.