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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Evolution of the Cloud & The Impact on: - IT - Budgets - Future Decisions
Bob Sabo – ERP/EPM Cloud Strategic Programs Director, Oracle Public Sector October 11, 2018
Tennessee Government Finance Officers Association
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. |
Today’s Agenda
Evolution/Transformation
Impact on IT, Budgets and Finance
Welcome and Introductions
2
Questions
Future Decisions – Path to the Cloud
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 3
ERP/EPM Cloud Strategic Programs Director Oracle Public Sector
Industry Expert for municipal and state government Authored white papers on transparency, budgeting and shared services in government MPA Syracuse University
22 years with Oracle Public Sector 10 years with Government Former City Manager
Bob Sabo
Wilton,
CT
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
4
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. |
Today’s Agenda
Evolution/Transformation
Impact on IT, Budgets and Finance
Welcome and Introductions
5
Questions
Future Decisions – Path to the Cloud
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 6
Evolution and Transformation
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Digital in the USA Snapshot of key digital indicators – January 2015
320 MILLION
TOTAL POPULATION
URBANISATION: 82%
FIGURE REPRESENTS TOTAL NATIONAL POPULATION, INCLUDING CHILDREN
Sources: We are Social – Compendium of Digital Statistics – January 2015; Wikipedia; InternetLiveStats, InternetWorldStats; Facebook, Tencent, VKontakte, LiveInternet; GSMA Intelligence
280 MILLION PENETRATION: 87%
FIGURE INCLUDES ACCESS VIA FIXED AND MOBILE CONNECTIONS
186 MILLION PENETRATION: 58%
FIGURE REPRESENTS ACTIVE USER ACCOUNTS, NOT UNIQUE USERS
329 MILLION VS. POPULATION: 103%
FIGURE REPRESENTS MOBILE SUBSCRIPTIONS, NOT UNIQUE USERS
160 MILLION PENETRATION: 50%
FIGURE REPRESENTS ACTIVE USER ACCOUNTS, NOT UNIQUE USERS
ACTIVE INTERNET USERS
ACTIVE SOCIAL MEDIA ACCOUNTS
MOBILE CONNECTIONS
ACTIVE MOBILE SOCIAL ACCOUNTS
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Number of mobile connections worldwide 2008 to 2020
Source –www.statistica.com 2017
Digital Worldwide Snapshot of key digital indicators – 2017
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Governments are Looking Towards Cloud Delivery Models
9
Traditional Leading
Edge
Private Cloud Public Cloud On-Premise
vs. vs.
Oracle Confidential
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$
Four Key Drivers Impacting Cloud Application Adoption
Complex IT Environments
IT orgs are deciding they want to get out of the infrastructure business
Painful & Costly Upgrades
Orgs are deciding they never want to go
through another major upgrade ever again
Budget Pressures
Orgs need to reduce costs & move to more
predictable cost curves
Changing User Expectations
The digital standard is becoming the standard for
HCM & ERP applications
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. |
Gartner predicts that the cloud will become the default option for software deployment by 2020.
Technology Evolution to the Cloud
11
CIO Magazine August 2016 – “ERP Heads for the Cloud”
Cloud services can radically improve the productivity of the finance function by accelerating the diffusion of new best practices that are emerging around technologies like blockchain, artificial intelligence, and machine learning. Intelligent Finance: How CFOs Can Lead the Coming Productivity Boom, Dr. Michael Mandel, senior fellow at the Mack Institute for Innovation Management at the Wharton School
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Research firm Gartner predicts that the cloud will become the default option for software deployment by 2020. (CIO Magazine August 2016 – “ERP Heads for the Cloud”)
99+ % of new public
Sector RFP’s specifying Cloud
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Clear Case for Moving to the Cloud
13
Aberdeen Group has found that cloud costs less regardless of organization size
$10m to $200m $200m to $500m $500m to $1B $1B+
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Upgrade
Hardware
Services
Maintenance
Software
Subscription
73%
75%
73%
83%
Cloud
On-Prem
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Public Cloud (SaaS) Applications
Next-generation apps/UI Single code line
Multi-tenancy architecture*
Updates applied by vendor
Rapid release cycle All-inclusive subscription pricing
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Software-as-a-Service
15
15 Copyright © 2017 Oracle and/or its affiliates. All rights reserved. |
CLOUD
The Most Complete Cloud
Back office and citizen facing applications such as financials, procurement, project management, human resources, payroll, 311, grants management, maintenance management.
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Platform-as-a-Service
16 16 Copyright © 2017 Oracle and/or its affiliates. All rights reserved. |
CLOUD
The Most Complete Cloud
Services that can be standalone or complement a SaaS instance such as; business intelligence, new application development, document/content management, mobile applications, integration and security tools.
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Infrastructure-as-a-Service
17
17 17 Copyright © 2017 Oracle and/or its affiliates. All rights reserved. |
CLOUD
The Most Complete Cloud
Technology and platform services such as database, computing infrastructure and other services, often using the customers own software.
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. |
Today’s Agenda
Evolution/Transformation
Impact on IT, Budgets and Finance
Welcome and Introductions
18
Questions
Future Decisions – Path to the Cloud
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |
Functional Contributors
SaaS On Premises
Cloud Transformation - Future of Work
Managers
IT
Patching, tuning, building reports, security, upgrades Focus on operational efficiency, historical data collection Transaction entry, account coding, error correction, spreadsheet manipulation
Process standardization, change management, strategic initiatives, innovations Process standardization, focus on agility, strategic decision making, team development Exception handling of automated processes, higher value activities
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Changing Dynamics For IT
20
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Public Sector Trends: Transformation
• Modernization and system sustainability are top of mind
• BI/Analytics driving integration across silos of systems
• Rapid IoT growth across government
• AI/Machine Learning adoption
• Streamline Business Processes
75% of Government IT investments go to operations & maintenance
*GCN – April 2017
30B IoT enabled devices by 2020 servicing many aspects of Government and citizen services
*IDC IoT Mapping
15% of some Government employees’ time consumed by repetitive tasks
* Nextgov – June 2017
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Nucleus Research Findings Support the Case for Cloud
22
3.2x
40%
25%
ROI than on-premises applications
Less spend on consulting resources
Less spend on internal resources for support
Source: Nucleus Research – report M108
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. |
Positive Impacts of Moving from On-Premise to Cloud
Benefits Cloud
Less dependency on IT
Lower cost of ownership
Ability to take advantage of software innovations or quick release cycles
Consistent user-experience
One vendor, one platform, one unified data model
52% Increased usage of Employee self-service
32% Increased time HR can spend consulting w/ business partners
20% Reduced HR personnel costs
$400K *Savings in administrative costs
PWC Research 2017 | *Nucleus Research 2017/2018
23
3.2 Times *More ROI than on premise applications
2.3 Times *Lower TCO than on premise applications
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Copyright © 2018 Oracle and/or its affiliates. All rights reserved. |
Today’s Agenda
Evolution/Transformation
Impact on IT, Budgets and Finance
Welcome and Introductions
24
Questions
Future Decisions – Path to the Cloud
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
YESTERDAY’S ERP ISN’T ENOUGH
The transformational potential of AI in financial management applications will come in the next two to three years as more AI technologies are embedded directly into financial management processes to automate complex, non-routine activities with little or no human intervention. Also, using AI to improve the accuracy and effectiveness of financial forecasting and planning will transform these processes.” Gartner Report: “Impacts of Artificial Intelligence on Financial Management Applications,” Analysts Nigel Rayner, Christopher Iervolino, Published November 7, 2017.
Blockchain and distributed ledger technology will transform the delivery of public and private services, redefine the relationship between government and the citizen in terms of data sharing, transparency and trust, and fundamentally improve the delivery of government services. State of Illinois
By 2021, more than 50% of enterprises will spend more per annum on bots and chatbot creation than traditional mobile app development. Gartner Top Strategic Predictions for 2018, October 2017
“Blockchain technology holds great promise for the financial industry, in terms of security and verifiability of transactions in real time and in terms of increased efficiency and new capabilities to transact business across the globe” Kristopher Knight, Deputy Secretary of State - Delaware.
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Improve Employee
Engagement
Social Sourcing
Citizen
Expectations
Go Digital
Innovation Reduce TCO
Talent Reviews
Social Capabilities System Upgrade
Avoidance
User Experience
Artificial Intelligence
Deliver Insight Talent Shortages
Organizational Design Culture
Bring Your
Own Device
Data-Driven Decisions Agile Teams
Chatbots
Social Learning
Blockchain
Continuous Feedback
Increasing transparency
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
EMERGING TECHNOLOGIES ARE CREATING NEW OPPORTUNITIES AND CHANGING THE WAY GOVERNMENT WORKS
Artificial Intelligence /
Machine Learning Blockchain
Autonomous Software IoT
Human Interface/Voice
Interactive
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Greater Efficiency
Touchless Transactions (Automated) Intelligent Defaulting Recommended User Actions Intelligent Document Reconciliation Audit Automation Intelligent Close Orchestration Automation of Compliance
Purpose-Built, Artificial Intelligence and Data-Driven Apps Amplify the Value of ERP Cloud Applications.
Adaptive Intelligent Apps For ERP
Better Insights Intelligent Payments Supplier Recommendations Intelligent Receivables Inventory Auto Fulfillment
More Influence
Connected Intelligence Continuous Close Exception Detection
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Blockchain Cloud Service
Build trusted
networks
Automate with
smart contracts
Integrate
blockchain with
applications
Provide
comprehensive
administration and
monitoring
CX Cloud HCM Cloud SCM Cloud ERP Cloud Other Apps
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
Foundational Autonomous Capabilities
30 30
Self-Driving
Automates all management, scaling, monitoring, tuning
Self-Securing
Protects from both external attacks and
malicious internal users
Self-Repairing
Protects from all downtime including
planned maintenance
Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Copyright © 2016 Oracle and/or its affiliates. All rights reserved. |
Is Cloud Ready for Government?
Yes!
• Solution is complete
• 99+% of new RFP’s asking for Cloud
• Small, medium and large jurisdictions adopting
• All types of entities have moved to Cloud; city, county, state, K12, public utilities, special districts, higher education.
• Vanderbilt Univ., City of Memphis, Shelby County Schools, Nashville Electric, Chattanooga Electric,
Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Define the Business Objectives What do you need to achieve, what efficiencies do you need to gain, how will you services and be positioned to grow and expand.
Define the Cloud Strategy Evaluate transaction, program and policy services that are candidates based on the strategic intent and which organizations will target customers.
Create the Roadmap Eliminate confusion if there are competing programs and identify activities that should be aligned to the shared services vision.
Deploy Cloud Services Determine the first components of the new operating model. Core decisions on the operating model impact the business case and implementation strategy.
Achieve New Operational Efficiencies Start leveraging new business capabilities to drive process improvement and help users do their job more efficiently.
5 Steps to Cloud
Key Considerations to Get Started
32 Confidential – Oracle Internal/Restricted/Highly Restricted
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In Summary…
PACE OF CHANGE ACCELERATING
YESTERDAY’S ERP CAN’T KEEP UP
NEED TO END TECHNOLOGY OBSOLESCENCE
BE MORE EFFIEICENT, PROVIDE MORE MEANINGFUL INSIGHTS
GOVERNMENTS NEED TO EMBRACE & PLAN FOR CLOUD ERP
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Questions?
Recommended