Background
Oracle Fusion Projects Management application is rapidly gaining popularity in the current business environment where efficiency in data management and project integration defines the ability of a firm to achieve the desired success in the market. Thakker defines Oracle Fusion Project Portfolio Management as “a modular suite of applications designed to work as a complete enterprise project portfolio management (PPM) solution or as extensions to your existing PPM applications portfolio” (43).
It has revolutionized project performance reporting by introducing new applications to project management. The traditional project portfolio management primarily focused on data input without allowing the user to analyze it into actionable intelligence that can be applied in normal operations (Kumar and García 78). The traditional system only emphasized the need to monitor projects’ life cycles to improve performance.
The Oracle Fusion PPM addresses these shortcomings by creating a new platform where raw data can be processed into actionable intelligence that is meaningful to different key stakeholders within an organization. Oracle Database Enterprise Edition along with its features can be downloaded and used at no cost. However, the license cost for Enterprise Edition is $ 47,500 per unit. This means that the actual cost would depend on the needs of an individual organization.
Integrating the new system in an organization should take about 3 months, including the period that it would require the firm to train its employees on how to use the system. The current IT department’s budget for the financial year 2019 for Ezdan Holding Group is QAR 2,184,630. However, it is unfortunate that the current system lacks analytical software to handle critical data for the organization. The new system will address this concern.
Key Challenges with Existing System
The IT department at Ezdan Holding Group is increasingly under pressure to improve its efficiency in data management to meet the emerging needs as the firm continues to expand. According to Ajvaz et al., in the current competitive business environment, it is critical to ensure that all departments of an organization can have access to information needed to inform specific actions and decisions (89). The data management system should not only be capable of processing data to actionable intelligence but also making the information accessible to multiple users simultaneously. However, the current system has some weaknesses that make it necessary for it to be replaced. The following are some of the key challenges of the existing system:
- The current system cannot analyze data into actionable intelligence that can inform the actions and decisions of key stakeholders within the organization.
- The current system cannot make information accessible to all stakeholders within the firm simultaneously. One department has to make an official request to another and wait for the delivery, a process that may inconvenience some employees.
- Manual data processing is time-consuming, especially when the firm has to deal with large data from its numerous customers around the world.
- The limited visibility of critical information makes it easy for unscrupulous employees to manipulate data that would facilitate the misappropriation of the firm’s assets.
- The current system would require the IT department of this company to hire more employees who will be involved in data management.
Key Requirements for New System
The IT department at Ezdan Holding Group has identified several challenges of the current system as discussed above. The best way of addressing the problem is to introduce a new automated system. When planning to introduce Oracle Fusion Project Portfolio Management, Thakker explains that a firm should be ready to meet specific key requirements (74). The following are some of the requirements that this company should take into consideration:
- The management of this company will need to take its employees through some form of training to equip them with the skills needed to operate under the new system. This requirement should be met before introducing the new system to ensure that there is a smooth flow of activities in the firm.
- The firm should be ready to meet the financial requirements for the project. The detailed cost of the new system is discussed in the fifth section of this report.
- Head of departments should be prepared effectively for the new system. They need to understand the fact that the centralized database would enable all relevant stakeholders to access data without having to send a request to other heads of departments.
- Customers should also be informed about the new system so that they can adjust their activities when necessary.
Key Benefits of the New System
Oracle Fusion PPM has a wide range of benefits for an organization because it was designed to address some of the current challenges that companies are going through when it comes to data management. It helps the management to determine the health of a set of projects, which makes it possible to make relevant investment decisions. The management can easily determine best-performing projects that need further investment and those that need to be terminated because of limited viability. The ability to integrate different departments through Oracle Financials, Oracle Supply Chain and Oracle HRM create an environment where different departments can work closely together by sharing relevant data needed to make a critical decision. The benefits of the new system can be discussed under two broad sections below:
Non-Financial Benefits
Improved efficiency and decision-making process is one of the main benefits of the new system. Resource planning is one of the critical functions within a given firm that defines its ability to achieve success. Knowing how to invest the limited resources in the most rewarding projects within a firm is critical. It enables the management to avoid spending many resources on unproductive resources. The fact that information is readily accessible to all the relevant stakeholders improves decision-making processes at various levels of management. Ajvaz et al. believe that it also enables departmental heads to coordinate their daily operational activities (56). The following are the other non-financial benefits of the new system:
- The new system has the capacity of reducing errors in data management processes. The automated system eliminates most of the human errors in data management.
- It creates easy access to data among stakeholders in different departments of the organization.
- The system improves communication and coordination of activities through its shared database.
- The management is capable of monitoring the progress in different projects of an organization.
Financial Benefits
Ezdan Holding Group will enjoy numerous benefits if it embraces the Oracle Fusion PPM. Although the initial cost of installing the new system may be high, the overall outcome of the project will be significantly beneficial to this company. Improved resource management will be another major impact of the Oracle Fusion PPM. When this company introduces the new system, it will be capable of reducing its annual expenses because of increased efficiency, reduction in time wastage, and a lean workforce. The table below identifies an estimation of the financial benefits that the company will enjoy in case the new system is introduced successfully. It is important to note that the table provides estimated values, which may be slightly higher or lower depending on the changing forces in the market.
Cost of New System
The management of this company should be ready to meet the cost of the new system. As Thakker explains, when introducing a new system, a company has to invest in infrastructure, human resources, permits, and many other relevant charges (39). The cost of the new system can be classified broadly into two, one-time cost and annual recurring cost.
One-Time Cost
One-time costs are charges that this company will need to make once when introducing the new system. One of them is the license cost for Enterprise Edition, which goes for $ 47,500 per unit. The data migration charge will cost this company about $ 30,000. The firm will need to pay for the new hardware for the system that may cost about $ 185,000 to meet the new needs of operating under the automated and integrated system. The estimated initial cost of the project for Ezdan Holding Group would be $ 262,500. The estimates may vary depending on the approach of implementation that the management takes.
Annual Recurring Cost
The company will also need to meet annual recurring costs for the company. The department of human resource management will pay for the training of employees on the use of the system. The cost of training is estimated to be $ 45,000 per year. The firm will have to improve the data management system, especially the hardware that would have to be repaired or replaced, at a cost of about $ 55,000 per year. The annual salary for the employees was not taken into consideration because the firm was meeting the same cost even in the previous system. As such, the recurring cost would be $ 100,000, while the total cost would be $ 362,500 for the first 12 months.
Next Steps
The cost-benefit analysis shows that the project is viable and the management of Ezdan Holding Group should consider implementing it. The financial implications of the firm are by far greater than the cost that the firm would have to meet to implement it. The system promises to improve operations at the company. It will reduce time wastage and enhance a sense of responsibility among the employees at different levels of management. The following are steps that the management should take as it seeks to introduce Oracle Fusion PPM in its operations:
- The IT department should seek approval of the management for the business case and secure necessary funding;
- The department should select the vendor of the software that would deliver the best result for the firm at a reasonable cost;
- The management of the IT department should work closely with the HR unit to plan and execute training for the employees;
- The firm should introduce the new system when it feels all the necessary measures have been taken.
Works Cited
Ajvaz, Vladimir, et al. Oracle Fusion Applications Development and Extensibility Handbook. McGraw-Hill Education, 2014.
Kumar, Vinay, and Daniel García. Beginning Oracle Webcenter Portal 12c: Build Next-Generation Enterprise Portals with Oracle Webcenter Portal. Springer, 2017.
Thakker, Tushar. Pro Oracle Fusion Applications: Installation and Administration. Springer, 2015.