Oracle E-Business Suite (EBS) – a comprehensive collection of business applications has been a key tool for enterprises managing intricate business operations. It provides a strong base for diverse organizational requirements, spanning finance, HR, and operations. However, as cloud computing has advanced, migrating Oracle EBS to a cloud-based alternative has become crucial for businesses aiming to capitalize on the advantages of cloud technology. One of the most preferred cloud-based options for this migration is Oracle Fusion ERP.
As per one of the Oracle reports, the total Cost of Ownership is up to 50% lower with Oracle fusion as compared to the Oracle EBS or on-premise ERP. Also, a McKinsey Report shows that by the end of this year, businesses will be investing 80% of their IT budget toward cloud-based solutions.
However, this transition can be challenging and requires alignment of teams, change management, and consultation on best practices. A comfortable pace, careful planning and execution to the achievement of optimal cost outcomes, functionality, and performance, and working towards an ideal migration plan are the keys to ensuring a smooth transition.
In this article, we will delve into the benefits and challenges of Oracle EBS to Fusion Migration and guide how businesses can successfully navigate this migration process.
Why Migrate from Oracle EBS to Fusion?
Oracle EBS to Fusion Migration can offer businesses a range of benefits including:
Lower Costs
Migrating to Oracle Fusion can significantly reduce the Total Cost of Ownership by nearly 30%. According to the latest study, running business operations in Oracle Fusion is up to 38% cheaper than any other on-premises deployment and also up to 44% cheaper than any other cloud deployment.
The cloud model offloads much of the support, maintenance, and upgrade costs to the cloud provider, thereby reducing the burden on internal IT teams.
Advanced Security and Compliance
Fusion ERP offers advanced security and compliance features that are crucial for businesses operating in today’s complex regulatory environment.
This includes features like audit trails, data encryption, and role-based access control, which help businesses protect their data and remain compliant with regulations.
Better Performance
Oracle Fusion offers an impressive 33% increase in performance and delivers reporting capabilities that are up to 10 times faster. It provides superior computing power, storage, networking, and managed database instances, ensuring high-performance results.
Advanced Functionality
Oracle Fusion ERP delivers a range of advanced functionalities and features unavailable in EBS, designed for high performance to ensure that applications run more efficiently.
These features include embedded analytics, AI-driven automation, and mobile access, which help businesses improve their decision-making and processes.
Better Integration
Fusion ERP is built on an open, modern architecture that allows better integration with other business applications, Oracle updates, and the latest technologies.
This helps businesses reduce the risk of inconsistencies and errors, improve data accuracy, and streamline their operations.
Easier to Use and Manage
Oracle delivers specialized tools and automation to simplify deployment, migration, upgrades, and maintenance processes, helping to save time and mitigate risks. This allows implementations to be completed in a matter of weeks instead of months, greatly reducing the overall timeline.
Cloud-based Deployment
The cloud-based infrastructure offers easy scaling of resources based on various business needs, thereby providing great flexibility, accessibility, and scalability.
Also, cloud-based deployment means businesses can avoid the complexities and costs associated with maintaining on-premise infrastructure.
Best Practices to Prepare for a Seamless Migration
Adhering to best practices is crucial for a smooth, successful Oracle EBS to Fusion Migration process. These practices include:
Evaluation of the Current Environment
It is important to understand the complexity of your current environment. Businesses must evaluate their current EBS system to identify integrations, customizations, or other features that need to be migrated to the new system.
Choosing a Migration Strategy
During Oracle EBS to Fusion Migration, it is important to select the right strategy. There are several strategies, including the “Lift & Shift” approach, which involves moving the existing EBS system to the cloud with minimal changes, essentially replicating the on-premises environment in the cloud.
Another approach is the “Move & Improve” strategy, which involves moving Oracle EBS to the cloud and optimizing or upgrading the applications during the migration.
Developing a Plan and Assessment
Businesses need to develop a detailed migration plan with clear milestones and limitations that outline all steps. Migrating data from Oracle EBS to Fusion ERP can be complex, so it is important to create a detailed plan that includes data mapping, validation, and cleansing.
Also, businesses must ensure their data is backed up properly before starting the migration process.
Engaging Stakeholders
It is vital to engage all relevant stakeholders, including IT staff, business leaders, and end-users in the migration process. This ensures that everyone is well aware of the Oracle EBS to Fusion Migration process and understands their role.
Conducting Rigorous Testing
Businesses need to conduct comprehensive testing in a cloud environment that closely replicates the production environment.
The tests include integration, customizations, performance, and user acceptance tests. Testing ensures that the new system is working as expected and is meeting business needs.
Employee Training & Change Management
Training the team on best practices and new cloud functionalities is important. Businesses need to develop a training plan that includes hands-on training, training materials, and ongoing support to help users adjust to the new system. Effectively managing change minimizes disruptions.
Monitoring and Optimizing Post-Migration
Businesses need to continuously monitor the cloud environment for security and performance and optimize resources to effectively manage costs.
Challenges Faced During Oracle EBS to Fusion Migration
When using the Cloud, the data needs are dynamic and require substantial mapping and transforming. The data migration process is a key step in the transition of an organization from Oracle EBS to Oracle Fusion. The process is time-consuming, expensive, and resource sensitive. Below mentioned are the challenges of this migration.
Data Migration
Migrating Stacks of data can be laborious, time-consuming, and has its fair share of challenges. Particularly for organizations that do not have access to proven solutions for taking up these complex tasks. Businesses have to ensure that their data are mapped properly, cleansed, and validated before migrating to the new system. This process can be challenging for businesses with complex and large data sets.
Manual Reengineering Process
The architecture of Oracle Fusion ERP is different than EBS which means that businesses may have to re-engineer their business process to take benefit of the functionality of the new system. This may require significant changes to the workflows and procedures of the organization.
Integration
Businesses globally have integrated EBS with other business applications like supply chain management systems or CRM. While migrating, businesses have to make sure that these integrations are configured and tested properly so that they continue to work seamlessly.
Customization
Businesses customize their EBS to meet their particular needs. These customizations, however, may not be compatible with Fusion ERP, which can make the process of migration more challenging. Organizations have to evaluate their customizations carefully and determine the ones that can be migrated to a new system and the ones that have to be re-implemented.
Wrapping Up
While the process of migrating from Oracle EBS to Fusion ERP can be challenging, the benefits of moving to a cloud-based, modern ERP system are significant. By following the best practices mentioned above, businesses can prepare for a successful Oracle EBS to Fusion Migration. Seeking expert assistance can also be beneficial. Collaborating with partners or experts experienced in Oracle EBS and Fusion migrations can ensure a smoother transition with minimal risk and downtime.
If you are considering migrating from Oracle EBS to Fusion ERP, partnering with experienced professionals can make a significant difference. Rostan Technologies, a preferred vendor for global organizations, specializes in seamless Oracle EBS to Fusion migrations. Contact us today to learn how we can help you future-proof your ERP system and ensure a smooth, efficient transition to the cloud.