Evolution of the Cloud & The Impact on: - IT - Budgets Fall Confer… · Finance: How CFOs Can Lead the Coming Productivity Boom, Dr. Michael Mandel, senior fellow at the Mack Institute

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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

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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

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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


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



Today’s Agenda




5

Questions



Evolution and Transformation


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


FIGURE REPRESENTS ACTIVE USER ACCOUNTS, NOT UNIQUE USERS

329 MILLION VS. POPULATION: 103%

FIGURE REPRESENTS MOBILE SUBSCRIPTIONS, NOT UNIQUE USERS


FIGURE REPRESENTS ACTIVE USER ACCOUNTS, NOT UNIQUE USERS

ACTIVE INTERNET USERS

ACTIVE SOCIAL MEDIA ACCOUNTS

MOBILE CONNECTIONS

ACTIVE MOBILE SOCIAL ACCOUNTS


Number of mobile connections worldwide 2008 to 2020

Source –www.statistica.com 2017

Digital Worldwide Snapshot of key digital indicators – 2017


Governments are Looking Towards Cloud Delivery Models

9

Traditional Leading

Edge

Private Cloud Public Cloud On-Premise

vs. vs.

Oracle Confidential


$

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



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

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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


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


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


Software-as-a-Service

15

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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.


Platform-as-a-Service

16 16 Copyright © 2017 Oracle and/or its affiliates. All rights reserved. |

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.


Infrastructure-as-a-Service

17

17 17 Copyright © 2017 Oracle and/or its affiliates. All rights reserved. |

CLOUD


Technology and platform services such as database, computing infrastructure and other services, often using the customers own software.



Today’s Agenda




18

Questions



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


Changing Dynamics For IT

20


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

https://gcn.com/articles/2017/04/10/it-modernization-taxonomy.aspx

https://gcn.com/articles/2017/04/10/it-modernization-taxonomy.aspx

http://www.nextgov.com/technology-news/tech-insider/2017/06/what-future-artificial-intelligence-government-could-look/138352/


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


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



Today’s Agenda




24

Questions



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.


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


EMERGING TECHNOLOGIES ARE CREATING NEW OPPORTUNITIES AND CHANGING THE WAY GOVERNMENT WORKS

Artificial Intelligence /

Machine Learning Blockchain

Autonomous Software IoT

Human Interface/Voice

Interactive

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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


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


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

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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,

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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

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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


Questions?

Documents

Evolution of the Cloud & The Impact on: - IT - Budgets Fall Confer… · Finance: How CFOs Can Lead the Coming Productivity Boom, Dr. Michael Mandel, senior fellow at the Mack Institute