Page 1: System Overview

Oracle Enterprise Resource Planning (ERP)

Oracle Enterprise Resource Planning (ERP) is a web-based platform that integrates multiple IT applications across the enterprise in order to support all functions of the business.  Oracle is a enterprise tool that utilizes multi-integrated functional applications, allowing medium to large business to eliminate manual operations in tracking, cross-referencing and analytics. There are numerous applications in Oracle ERP that can serve across industries - from human resource firms to healthcare, logistic firms to financial organizations and every industry in between.

The main functional areas incorporated with ERP are financial management, procurement / supply chain management, and project management; additional services include human capital management, customer relationship management, and governance/risk/compliance (Oracle, 2013a).   Oracle ERP is scalable, which means that the client can select the functions and services that it needs today with the option to seamlessly incorporate additional services in the future as the enterprise grows.  The principal benefit of Oracle ERP cloud is the use of a cross-functionally shared dataset, known as a database management system (DBMS), which can be accessed in real time by users across the enterprise in order to produce actionable business intelligence and analytics (Gallaugher, 2014, p. 794).

Oracle Fusion Financials Cloud Services integrate the functions of reporting and analysis in a format that provides flexibility and visibility for all users.  Fusion Financials includes the General Ledger, Payables, Assets, Expenses, and Receivables (Oracle, 2013b, p.3).  Employees can set automatic account alerts based on parameters they define and create Ad-Hoc reports that generate custom analytics (Oracle, 2013b, p.3).  Although the primary interface for the ERP is web-based forms, data can imported and exported in familiar spreadsheet formats (Oracle, 2013b, p.3).  The intent of these features is to increase productivity and provide real-time, relevant information from which to make sound business decisions.

            Oracle ERP Project Management Cloud can be used to effectively manage medium to large projects. The project management application serves as a unified location for timelines, scheduling, communication and budget tracking (Oracle, 2013c).  By using these functions, team leaders and members can focus on completing tasks, rather than spending time on reporting and tracking progress. This software can be modular or integrated with other Oracle applications, and the Cloud function allows easy access to real time information via tablet or mobile devices (Oracle, 2013c). 

Oracle’s procurement software provides flexibility and customization intended to suit specific business needs through the options or combination of on-demand products and on-premises deployments (Oracle, 2013d).  Oracle’s approach to procurement follows lean management practices to achieve reduced spending on goods and services through software that provides efficiency, visibility and automation.  Streamlining methods are also included to aid in employee efficiency, control, self-sufficiency and reduction of errors throughout the purchasing and payment processes (Oracle, 2013d).  Lastly, it supports policy compliance through identifying and managing policies across both procurement and financial areas (Oracle, 2013d).

In regards to IVK in The Adventures of an IT Leader by Austin, Nolan, & O'Donnell's (2009), Oracle ERP could be used to address some of the problems with the company’s IT posture.  As the company has grown, an increasing percentage of the IT budget has been devoted to infrastructure and maintenance cost, which has stifled investment in competitive IT innovation (Austin, Nolan, & O'Donnell's, 2009, p. 63).  In large part, this is the result of the increased complexity caused by ad-hoc customization and the lack of integrated IT systems solutions under the former CIO (Austin, Nolan, & O'Donnell's, 2009, p. 86).  Additionally, IVK IT’s original systems are based on batch processing, which creates delays in analyzing performance metrics and prevents effective synchronization of “back-office” applications with newer “front-office” assets (Austin, Nolan, & O'Donnell's, 2009, p. 85).  By moving to the cloud-based service of Oracle ERP, IVK can integrate applications across business units and stabilize the expense of maintenance and upgrades by reducing the total cost of ownership when compared to on-site assets (Dubey, & Wagle, 2007, p.5).  Since ERP is real-time, back and front-office processes can be better aligned, improving interoperability and productivity.  As we continue to analyze and asses the benefit of implementation of Oracle ERP at IVK, it is important to note that the ultimate success any ERP application will be dependent on a through understanding of requirements, unified support from management throughout the enterprise, and proper follow through in the deployment of the system (Schiff, 2014).