CLOUD A CHANGE OF THINKING NOT JUST A CHANGE IN TECHNOLOGY.

Transcription

1 CLOUD A CHANGE OF THINKING NOT JUST A CHANGE IN TECHNOLOGY North America (HQ) Europe Asia

2 TABLE OF CONTENTS PAGE 1 INTRODUCTION PAGE 2 WHY IS CLOUD A NEW WAY OF THINKING? PAGE 3 THE BUSINESS NO LONGER PROVIDES A WISH LIST IT S ALL ABOUT ADOPTION PAGE 4 PACKAGED APPLICATIONS VERSUS DEVELOPMENT FRAMEWORKS PAGE 5 PERSONALIZATION VERSUS CUSTOMIZATION PAGE 6 ADDITIONAL ADVANTAGES OF CLOUD APPLICATIONS PAGE 7 OUT WITH THE OLD AND IN WITH THE NEW PAGE 8 CHANGE MANAGEMENT - CRITICAL FOR CLOUD APPLICATIONS PAGE 9 APPLICATION TESTING DURING IMPLEMENTATION PAGE 10 CLOUD = A NEW APPROACH

3 INTRODUCTION Hidden in the hype that surrounds cloud applications, there is an underlying message that is often overlooked. While many people focus on the clear return on investment that comes from a reduction in IT infrastructure and headcount costs, they may overlook the need for a new level of discipline required when implementing and maintaining cloud applications. Cloud is not simply a new technology that shifts ownership of legacy expenses from the consumer to the vendor, it s a new way of thinking about IT applications and the functionality these applications provide to the business. Cloud is as much of a new way of thinking as it is a technology change. Page 1

4 WHY IS CLOUD A NEW WAY OF THINKING? Page 2 1. Implementing cloud applications is focused on adopting modern best practices, not just fulfilling the wish lists of the business 2. Customized applications are replaced with personalized applications 3. Change management is critical

5 THE BUSINESS NO LONGER PROVIDES A WISH LIST IT S ALL ABOUT ADOPTION Historically, a new project began with an empty whiteboard and a single question: How do you want the system to function? From this brainstorming session, a list of requirements was developed; statements that began with the phrase, The system shall. Successful implementations depend on three factors: How well the software could be customized to fit the requirements The technical ability of the implementation team to create those customizations. The budget allocated to create those customizations Many of today s legacy applications are more of a framework to support customized applications rather than a packaged all-encompassing application. Therefore, the business processes drove the application design and thus the final product. Page 3

6 PACKAGED APPLICATIONS versus DEVELOPMENT FRAMEWORKS Cloud application vendors have spent millions of dollars in research and development to instill best practices into their applications. The driving influence behind this change in architecture is that cloud applications are complete packaged applications, not development frameworks. In order to support these applications, vendors must be able to perform upgrades and routine maintenance (the ownership of these activities having moved to the cloud vendor). They cannot allow users to customize the application in a way that will impede upgrades or maintenance patches. In order to gain customer adoption, vendors must provide a system that operates efficiently and supports industry and functional best practices without the need for customization. Page 4

7 PERSONALIZATION VERSUS CUSTOMIZATION This is not to say that when you switch on a cloud application what you see is all you can get. Cloud vendors still provide a certain level of configuration and personalization. The language change from customization to personalization is necessary to create a demarcation point between the old approach (think of triggers on underlying tables and full custom application packages) and the new method. Personalization allows customers to add user-defined fields, change screen layouts, and adjust workflows and notifications. For example, in Oracle Cloud ERP, functionality is provided to allow for contract negotiation in the Procurement Contracts module. This module has a full set of workflows and editing tools to track contract history. Customers who wish to have this functionality will use the tools provided by this module, such as: create a new contract, export to word, pass the document back and forth for changes, upload the changes, etc. In a legacy system, a customer might have wanted different processes. For example developing a customized web interface for all users to operate in a Google Docs type environment. Here the customized web interface requires regression Page 5 testing and updates whenever there is an upgrade to the base system (translation: if the vendor changed its table structure in an upgrade, your web interface would break). In legacy applications, the sky was the limit on look, feel, and functionality; in cloud applications, you have to follow the prescribed screens to accomplish the task. However, with personalization, there are additional fields that can be added to screens to allow for the capture of company or industryspecific information that might not be a standard, out-ofthe-box attribute

8 Additional ADVANTAGES OF CLOUD APPLICATIONS Besides ease of upgrade, there are other advantages to adopting the best practices delivered by cloud applications. First, the business can eliminate outdated processes that exist only because we ve always done it this way. Many times, these processes were put in place because of product deficiencies in previous systems; systems that were created from the ground up and heavily customized. Implementation times and project risks are reduced due to the switch from the traditional waterfall method of software development to an agile methodology required for cloud applications. Instead of asking the business What do you want? cloud implementation projects now focus on the application and ask What doesn t work for you? The entire implementation cycle has changed from buildtest-adopt to demo-adopt-personalize-test Page 6

9 OUT WITH THE OLD AND IN WITH THE NEW Old ERP systems were massive monolithic solutions that required a lot of development with thousands of pages of documentation and large teams of developers and support staff. New cloud solutions for ERP and HR allow your IT group to be more agile and lean. Documentation can be kept to a minimum with only a handful of key documents such as configuration workbooks and the technical and functional specifications. In modern cloud applications, the majority of the documentation is developed and maintained by the vendor since the vendor is the entity that is developing new functionality and delivering that new functionality on a regular schedule Page 7

10 CHANGE MANAGEMENT - CRITICAL FOR CLOUD APPLICATIONS A significant part of a cloud migration project is focused on change management; specifically, encouraging users to spend as much time as possible working in the new environment during the implementation cycle. One of the most common roadblocks to any IT project is a user base that is not comfortable with the new system. In legacy implementations, this was overcome with personalized documentation, training materials, and work guides. Now with cloud solutions, a user can spend a significant percentage of their time working with the new application while the deployment project is still underway. By keeping the users involved, they become comfortable with the new system before the project goes live. This keeps the cloud implementation project on track and reduces the risk of user panic. Because cloud projects are typically shorter than on-premises implementations, it is even more critical that users are given the opportunity to use the system as soon as possible. By demonstrating the new cloud system to users at the start of the project, they Page 8 are exposed to the environment s look and feel almost immediately. A rapid configuration and follow-on testing cycle then brings the users into the system within the first 3-4 weeks of a project.

11 APPLICATION TESTING DURING IMPLEMENTATION During the implementation phase users are asked to perform tasks that are designed to mimic their daily activities as a test of the new system. As they uncover problems with the system, help is available to resolve these issues, and as the implementation project continues, the users gain confidence in the system and in their ability to operate effectively within it. As changes are made to overcome any detected problems, the user is asked to try the tests again to ensure the problem has been resolved. While a cloud implementation project has dedicated testing cycles, users should also continue to use and test the system regularly. This creates a user base that is comfortable with the new system ensuring a smooth transition when the project goes live. Page 9

12 CLOUD = A NEW APPROACH Cloud is not simply a new technology that shifts ownership of legacy expenses from the consumer to the vendor, it s a new way of thinking about IT applications and the functionality these applications provide to the business. Cloud is less a technology change and more a new way of thinking. By changing the way we implement cloud applications, we adjust the expectations of the user base from the traditional waterfall wish-list, big budget approach to a lean, agile, user-adoption focused methodology. This will encourage stronger user adoption, better reliance on the vendor-provided documentation, and reduced project risk. The challenge shifts from budget and frameworkcapability constraints to strong change management. Page 10

13 ABOUT APPS ASSOCIATES Founded in 2002, Apps Associates is a global provider of business and technology consulting services that partners with companies to help them maximize the value from their IT investments. Services range from new technology deployments to 24x7 global support services with practices in BI, ERP, CRM, Integration, Cloud Services, Infrastructure, Testing Services and Custom Development. OUR STRATEGIC PARTNERS North America (HQ) Europe Asia