The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle...

15
Research Report: Best Practices The Untold Stories behind the Traction in Oracle Fusion HCM Adoption Six Representative Customers in Recent Oracle Fusion HCM Implementations By Holger Mueller Vice President and Principal Analyst Content Editor: R “Ray” Wang Copy Editor: Maria Shao November 25, 2013 Produced exclusively for Constellation Research clients

Transcript of The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle...

Page 1: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Research Report Best Practices

The Untold Stories behind

the Traction in Oracle

Fusion HCM Adoption

Six Representative Customers in Recent Oracle

Fusion HCM Implementations

By Holger Mueller

Vice President and Principal Analyst

Content Editor R ldquoRayrdquo Wang

Copy Editor Maria Shao

November 25 2013

Produced exclusively for Constellation Research clients

Table of Contents

Purpose and Intent 3

Executive Summary 3

Perception of Oracle Fusion HCM Has Not Been Favorable in the Past Buthellip 4

Recent Oracle Fusion HCM Deployments Reveal Four Emerging Patterns of Selection 4

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale 5

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud

Delivery5

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans6

7 Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM 8

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months 8

Rotterdam European Municipality Chooses Fusion HCM for More Agility 9

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages 10

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists 12

Recommendations Begin with the End in Mind 12

Disclosures 13

About Constellation Research 15

Organizational Highlights 15

copy 2013 Constellation Research Inc All rights reserved 2

Purpose and Intent

As the vendor selection inquiries short list requests and contract negotiations volume

increase in the human capital management (HCM) space Constellation recently took a deeper look at a key player on the HCM vendor landscape This report discusses where

Oracle HCM is in the market what types of selection patterns have emerged and when Oracle Fusion HCM may be a candidate for vendor selection short lists in a very hot HCM market

This report provides insights into three of Constellationrsquos primary business research themes the Consumerization of IT Technology Optimization and the Future of Work

Executive Summary

Organizations are now at the beginning of a 20-year replacement cycle for human capital

management (HCM) technology Over the past decade the market of large enterprise solutions has consolidated into two major players Oracle and SAP challenged by a number of new cloud entrants Oracle offers three HCM solutions in the enterprise business solutions

market with Oracle E-Business Suite (EBS) PeopleSoft and Oracle HCM Cloud (Fusion HCM)

While Oracle announced the release of Fusion Applications its business automation suite

built from scratch in May 2010 the market has not had much exposure to the customer wins and momentum of the release Over the past six months Constellation has seen an increase in interest in Oracle Fusion HCM Recent inquires vendor short lists and contract

negotiation projects show a growing momentum

At Oracle OpenWorld 2013 Constellation interviewed a dozen Oracle customers who have

implemented Oracle Fusion HCM Based on those interviews customer inquiries and conversations with implementation partners Constellation believes itrsquos important to not only

move to the cloud but also consider Fusion HCM when functionality usabilitymobility integration and flexible deployment matter

copy 2013 Constellation Research Inc All rights reserved 3

Perception of Oracle Fusion HCM Has Not Been Favorable in the Past Buthellip Oraclersquos Fusion Applications are the next-generation end-to-end enterprise applications built on a vertically integrated Oracle technology stack designed to support best practices

of automation and incorporated with the best features of Oraclersquos many application acquisitions as well as Oraclersquos products built in-house The effort to build a complete

business automation suite from scratch is a massive undertaking and no other competitor has recently built from scratch Not surprisingly the project took Oracle more than five years to move from concept to reality amid its flurry of acquisitions and its move to cloud

computing

While Oracle Fusion Applications were being developed Oracle found overwhelming success

in convincing customers to stay with existing applications in its Apps Unlimited program The programrsquos success led to weak initial adoption of the new Fusion Applications upon release In fact adoption has taken much more effort than expected by Oracle As a result

many industry watchers journalists and technology analysts have made the wrong assumption that Oracle Fusion Applications have failed in the marketplace

Based on customer conversations inquiry calls and vendor selection projects Constellation identifies three key factors for the low initial adoption in one area Fusion HCM

1 Lack of end-to-end customer references Early adopters had few references to

rely on Most users adopted small modules and not the end-to-end applications

2 Minimal communication by Oracle The Fusion Applications team took careful

steps to protect customers during the initial implementations Minimal press and marketing fanfare were provided for customer wins and go-lives

3 Slow adoption by PeopleSoft base The average customer of PeopleSoft owned by Oracle now faces a decision to either upgrade or move to a new product Oraclersquos success with Applications Unlimited and a heavily customized PeopleSoft customer

base have kept PeopleSoft customers happy with minimal business rationale to move to Fusion Applications

Recent Oracle Fusion HCM Deployments Reveal Four Emerging Patterns of Selection

At some point organizations must make the decision to determine go-forward steps for existing enterprise software installations In Oraclersquos case customers are running mature

installations of both the Oracle E-Business Suite and PeopleSoft for HCM automation Leaders must determine whether to maintain upgrade move to third-party maintenance or replace Constellation sees four major forces triggering the re-evaluation of the future

application landscape

copy 2013 Constellation Research Inc All rights reserved 4

1 Customers seek updated best practices A large number of Oracle customers run their automation on enterprise software that was conceived and built in the last

century Many customers realize that it is time to upgrade their HCM automation

2 The cloud is now mainstream but customers want deployment choice

Success with cloud developments drives executives to consider new options amid tightening of capital and reduction of IT budgets Many executives have experienced cloud benefits first hand from more minor point-based automation solutions

However some clients have security requirements that require flexibility in deployment options beyond multi-tenant cloud

3 Maintenance proves to be a greater challenge than expected In the past enterprises have strongly relied on customization to make their enterprise software product fit their automation needs As a direct consequence of that approach many

enterprises sit on a lot of custom functionality that they no longer can maintain A clean slate for their enterprise automation becomes more of a necessity than a desire

4 New cloud integration strategies make it easier for enterprises to consider replacement Traditional HCM implementations consumed up to 50 percent of the budget for complex point-to-point integration Over time managing complex point-

to-point integration keeps customers from achieving agility Cloud integration has reduced this pain and made it more palatable for companies to move to upgrade or

replace existing implementations

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale

Constellation spoke with six of Oraclersquos premium reference customers at Oracle OpenWorld

2013 The case studies reflect recent client inquiries vendor selection efforts and customer reference checks The emerging patterns chosen reflect the most recent state of Fusion

HCM applications adoption

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud Delivery

This large global bank with over 60000 employees and almost 30000 external support staff in 55 countries upgraded to Oracle Fusion HCM from PeopleSoft 88 The financial services institution views its HR core system as a key system of record The HR system

feeds the banks access control system which enables trading and finance systems which are under potential high scrutiny from auditors

Challenges in administering the older PeopleSoft system led the bank to consider an upgrade or replacement The bank had recently emerged from a regime that prioritized

copy 2013 Constellation Research Inc All rights reserved 5

customization over standardization consequently the bank had to manage extensive customizations

During the selection process the bank considered the usual short list of cloud vendors The bank ultimately decided to implement Oracle Fusion HCM over other systems because

Oracle Fusion HCM delivers choice in deployment and security Flexibility of Fusion Applications and PeopleSoft heritage provided peace of mind for the bank In addition the bank sought a cloud deployment administered and monitored by its

SaaS system provider For auditing requirements the bank required a separately caged instance At the time of selection Oracle was the only provider to offer a

separate caged system that nonetheless was operated in an Oracle data center and maintained by Oracle specialists Oraclersquos solution satisfied corporate governance requests from both internal and external sources

Decision makers prioritize integration of core HCM and talent management in one system The bank sought benefits from the integration of core HCM and

talent management in a single system A big part of the rollout is talent management in 2014 for all employees worldwide and in six languages Of note payroll systems are not part of the Fusion HCM scope and did not influence the vendor selection

Flexfields provide massive configurability The bank felt that the flexfield extension system enables a more agile extension accommodating numerous widely

varying integration interfaces Given the history of customization and complexity of integration points the bank prioritized this factor

The bank expects an Oracle Fusion HCM implementation to cost the same as the last major on-premises upgrade However the organization expects cheaper cost of ownership due to the cloud delivery model While over half of the financial investment goes into upgrading

and updating integration interfaces to the new core HR system the cost savings will come from faster and cheaper upgrades in the future The bank plans to consider a suite approach

with Oracle HCM as it evaluates Oraclersquos Taleo Recruitment offering and Learning Management Solutions

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans

This private college in Southern California educates about 10000 students and has approximately 1500 employees The college felt it was stuck on an older HCM solution and

needed to upgrade especially as a foundation for more advanced talent management functions The urgency was increased by problems in the system landscape that required a

quick vendor selection and even faster implementation of the new system

Therefore the decision makers agreed to choose a cloud-based HCM system The college evaluated the usual SaaS products and selected ultimately Oracle Fusion HCM as it saw a

more compelling user interface a more mature technical foundation and an easier way of integrating into the existing system landscape that already was partially based on Oracle

copy 2013 Constellation Research Inc All rights reserved 6

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 2: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Table of Contents

Purpose and Intent 3

Executive Summary 3

Perception of Oracle Fusion HCM Has Not Been Favorable in the Past Buthellip 4

Recent Oracle Fusion HCM Deployments Reveal Four Emerging Patterns of Selection 4

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale 5

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud

Delivery5

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans6

7 Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM 8

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months 8

Rotterdam European Municipality Chooses Fusion HCM for More Agility 9

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages 10

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists 12

Recommendations Begin with the End in Mind 12

Disclosures 13

About Constellation Research 15

Organizational Highlights 15

copy 2013 Constellation Research Inc All rights reserved 2

Purpose and Intent

As the vendor selection inquiries short list requests and contract negotiations volume

increase in the human capital management (HCM) space Constellation recently took a deeper look at a key player on the HCM vendor landscape This report discusses where

Oracle HCM is in the market what types of selection patterns have emerged and when Oracle Fusion HCM may be a candidate for vendor selection short lists in a very hot HCM market

This report provides insights into three of Constellationrsquos primary business research themes the Consumerization of IT Technology Optimization and the Future of Work

Executive Summary

Organizations are now at the beginning of a 20-year replacement cycle for human capital

management (HCM) technology Over the past decade the market of large enterprise solutions has consolidated into two major players Oracle and SAP challenged by a number of new cloud entrants Oracle offers three HCM solutions in the enterprise business solutions

market with Oracle E-Business Suite (EBS) PeopleSoft and Oracle HCM Cloud (Fusion HCM)

While Oracle announced the release of Fusion Applications its business automation suite

built from scratch in May 2010 the market has not had much exposure to the customer wins and momentum of the release Over the past six months Constellation has seen an increase in interest in Oracle Fusion HCM Recent inquires vendor short lists and contract

negotiation projects show a growing momentum

At Oracle OpenWorld 2013 Constellation interviewed a dozen Oracle customers who have

implemented Oracle Fusion HCM Based on those interviews customer inquiries and conversations with implementation partners Constellation believes itrsquos important to not only

move to the cloud but also consider Fusion HCM when functionality usabilitymobility integration and flexible deployment matter

copy 2013 Constellation Research Inc All rights reserved 3

Perception of Oracle Fusion HCM Has Not Been Favorable in the Past Buthellip Oraclersquos Fusion Applications are the next-generation end-to-end enterprise applications built on a vertically integrated Oracle technology stack designed to support best practices

of automation and incorporated with the best features of Oraclersquos many application acquisitions as well as Oraclersquos products built in-house The effort to build a complete

business automation suite from scratch is a massive undertaking and no other competitor has recently built from scratch Not surprisingly the project took Oracle more than five years to move from concept to reality amid its flurry of acquisitions and its move to cloud

computing

While Oracle Fusion Applications were being developed Oracle found overwhelming success

in convincing customers to stay with existing applications in its Apps Unlimited program The programrsquos success led to weak initial adoption of the new Fusion Applications upon release In fact adoption has taken much more effort than expected by Oracle As a result

many industry watchers journalists and technology analysts have made the wrong assumption that Oracle Fusion Applications have failed in the marketplace

Based on customer conversations inquiry calls and vendor selection projects Constellation identifies three key factors for the low initial adoption in one area Fusion HCM

1 Lack of end-to-end customer references Early adopters had few references to

rely on Most users adopted small modules and not the end-to-end applications

2 Minimal communication by Oracle The Fusion Applications team took careful

steps to protect customers during the initial implementations Minimal press and marketing fanfare were provided for customer wins and go-lives

3 Slow adoption by PeopleSoft base The average customer of PeopleSoft owned by Oracle now faces a decision to either upgrade or move to a new product Oraclersquos success with Applications Unlimited and a heavily customized PeopleSoft customer

base have kept PeopleSoft customers happy with minimal business rationale to move to Fusion Applications

Recent Oracle Fusion HCM Deployments Reveal Four Emerging Patterns of Selection

At some point organizations must make the decision to determine go-forward steps for existing enterprise software installations In Oraclersquos case customers are running mature

installations of both the Oracle E-Business Suite and PeopleSoft for HCM automation Leaders must determine whether to maintain upgrade move to third-party maintenance or replace Constellation sees four major forces triggering the re-evaluation of the future

application landscape

copy 2013 Constellation Research Inc All rights reserved 4

1 Customers seek updated best practices A large number of Oracle customers run their automation on enterprise software that was conceived and built in the last

century Many customers realize that it is time to upgrade their HCM automation

2 The cloud is now mainstream but customers want deployment choice

Success with cloud developments drives executives to consider new options amid tightening of capital and reduction of IT budgets Many executives have experienced cloud benefits first hand from more minor point-based automation solutions

However some clients have security requirements that require flexibility in deployment options beyond multi-tenant cloud

3 Maintenance proves to be a greater challenge than expected In the past enterprises have strongly relied on customization to make their enterprise software product fit their automation needs As a direct consequence of that approach many

enterprises sit on a lot of custom functionality that they no longer can maintain A clean slate for their enterprise automation becomes more of a necessity than a desire

4 New cloud integration strategies make it easier for enterprises to consider replacement Traditional HCM implementations consumed up to 50 percent of the budget for complex point-to-point integration Over time managing complex point-

to-point integration keeps customers from achieving agility Cloud integration has reduced this pain and made it more palatable for companies to move to upgrade or

replace existing implementations

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale

Constellation spoke with six of Oraclersquos premium reference customers at Oracle OpenWorld

2013 The case studies reflect recent client inquiries vendor selection efforts and customer reference checks The emerging patterns chosen reflect the most recent state of Fusion

HCM applications adoption

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud Delivery

This large global bank with over 60000 employees and almost 30000 external support staff in 55 countries upgraded to Oracle Fusion HCM from PeopleSoft 88 The financial services institution views its HR core system as a key system of record The HR system

feeds the banks access control system which enables trading and finance systems which are under potential high scrutiny from auditors

Challenges in administering the older PeopleSoft system led the bank to consider an upgrade or replacement The bank had recently emerged from a regime that prioritized

copy 2013 Constellation Research Inc All rights reserved 5

customization over standardization consequently the bank had to manage extensive customizations

During the selection process the bank considered the usual short list of cloud vendors The bank ultimately decided to implement Oracle Fusion HCM over other systems because

Oracle Fusion HCM delivers choice in deployment and security Flexibility of Fusion Applications and PeopleSoft heritage provided peace of mind for the bank In addition the bank sought a cloud deployment administered and monitored by its

SaaS system provider For auditing requirements the bank required a separately caged instance At the time of selection Oracle was the only provider to offer a

separate caged system that nonetheless was operated in an Oracle data center and maintained by Oracle specialists Oraclersquos solution satisfied corporate governance requests from both internal and external sources

Decision makers prioritize integration of core HCM and talent management in one system The bank sought benefits from the integration of core HCM and

talent management in a single system A big part of the rollout is talent management in 2014 for all employees worldwide and in six languages Of note payroll systems are not part of the Fusion HCM scope and did not influence the vendor selection

Flexfields provide massive configurability The bank felt that the flexfield extension system enables a more agile extension accommodating numerous widely

varying integration interfaces Given the history of customization and complexity of integration points the bank prioritized this factor

The bank expects an Oracle Fusion HCM implementation to cost the same as the last major on-premises upgrade However the organization expects cheaper cost of ownership due to the cloud delivery model While over half of the financial investment goes into upgrading

and updating integration interfaces to the new core HR system the cost savings will come from faster and cheaper upgrades in the future The bank plans to consider a suite approach

with Oracle HCM as it evaluates Oraclersquos Taleo Recruitment offering and Learning Management Solutions

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans

This private college in Southern California educates about 10000 students and has approximately 1500 employees The college felt it was stuck on an older HCM solution and

needed to upgrade especially as a foundation for more advanced talent management functions The urgency was increased by problems in the system landscape that required a

quick vendor selection and even faster implementation of the new system

Therefore the decision makers agreed to choose a cloud-based HCM system The college evaluated the usual SaaS products and selected ultimately Oracle Fusion HCM as it saw a

more compelling user interface a more mature technical foundation and an easier way of integrating into the existing system landscape that already was partially based on Oracle

copy 2013 Constellation Research Inc All rights reserved 6

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 3: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Purpose and Intent

As the vendor selection inquiries short list requests and contract negotiations volume

increase in the human capital management (HCM) space Constellation recently took a deeper look at a key player on the HCM vendor landscape This report discusses where

Oracle HCM is in the market what types of selection patterns have emerged and when Oracle Fusion HCM may be a candidate for vendor selection short lists in a very hot HCM market

This report provides insights into three of Constellationrsquos primary business research themes the Consumerization of IT Technology Optimization and the Future of Work

Executive Summary

Organizations are now at the beginning of a 20-year replacement cycle for human capital

management (HCM) technology Over the past decade the market of large enterprise solutions has consolidated into two major players Oracle and SAP challenged by a number of new cloud entrants Oracle offers three HCM solutions in the enterprise business solutions

market with Oracle E-Business Suite (EBS) PeopleSoft and Oracle HCM Cloud (Fusion HCM)

While Oracle announced the release of Fusion Applications its business automation suite

built from scratch in May 2010 the market has not had much exposure to the customer wins and momentum of the release Over the past six months Constellation has seen an increase in interest in Oracle Fusion HCM Recent inquires vendor short lists and contract

negotiation projects show a growing momentum

At Oracle OpenWorld 2013 Constellation interviewed a dozen Oracle customers who have

implemented Oracle Fusion HCM Based on those interviews customer inquiries and conversations with implementation partners Constellation believes itrsquos important to not only

move to the cloud but also consider Fusion HCM when functionality usabilitymobility integration and flexible deployment matter

copy 2013 Constellation Research Inc All rights reserved 3

Perception of Oracle Fusion HCM Has Not Been Favorable in the Past Buthellip Oraclersquos Fusion Applications are the next-generation end-to-end enterprise applications built on a vertically integrated Oracle technology stack designed to support best practices

of automation and incorporated with the best features of Oraclersquos many application acquisitions as well as Oraclersquos products built in-house The effort to build a complete

business automation suite from scratch is a massive undertaking and no other competitor has recently built from scratch Not surprisingly the project took Oracle more than five years to move from concept to reality amid its flurry of acquisitions and its move to cloud

computing

While Oracle Fusion Applications were being developed Oracle found overwhelming success

in convincing customers to stay with existing applications in its Apps Unlimited program The programrsquos success led to weak initial adoption of the new Fusion Applications upon release In fact adoption has taken much more effort than expected by Oracle As a result

many industry watchers journalists and technology analysts have made the wrong assumption that Oracle Fusion Applications have failed in the marketplace

Based on customer conversations inquiry calls and vendor selection projects Constellation identifies three key factors for the low initial adoption in one area Fusion HCM

1 Lack of end-to-end customer references Early adopters had few references to

rely on Most users adopted small modules and not the end-to-end applications

2 Minimal communication by Oracle The Fusion Applications team took careful

steps to protect customers during the initial implementations Minimal press and marketing fanfare were provided for customer wins and go-lives

3 Slow adoption by PeopleSoft base The average customer of PeopleSoft owned by Oracle now faces a decision to either upgrade or move to a new product Oraclersquos success with Applications Unlimited and a heavily customized PeopleSoft customer

base have kept PeopleSoft customers happy with minimal business rationale to move to Fusion Applications

Recent Oracle Fusion HCM Deployments Reveal Four Emerging Patterns of Selection

At some point organizations must make the decision to determine go-forward steps for existing enterprise software installations In Oraclersquos case customers are running mature

installations of both the Oracle E-Business Suite and PeopleSoft for HCM automation Leaders must determine whether to maintain upgrade move to third-party maintenance or replace Constellation sees four major forces triggering the re-evaluation of the future

application landscape

copy 2013 Constellation Research Inc All rights reserved 4

1 Customers seek updated best practices A large number of Oracle customers run their automation on enterprise software that was conceived and built in the last

century Many customers realize that it is time to upgrade their HCM automation

2 The cloud is now mainstream but customers want deployment choice

Success with cloud developments drives executives to consider new options amid tightening of capital and reduction of IT budgets Many executives have experienced cloud benefits first hand from more minor point-based automation solutions

However some clients have security requirements that require flexibility in deployment options beyond multi-tenant cloud

3 Maintenance proves to be a greater challenge than expected In the past enterprises have strongly relied on customization to make their enterprise software product fit their automation needs As a direct consequence of that approach many

enterprises sit on a lot of custom functionality that they no longer can maintain A clean slate for their enterprise automation becomes more of a necessity than a desire

4 New cloud integration strategies make it easier for enterprises to consider replacement Traditional HCM implementations consumed up to 50 percent of the budget for complex point-to-point integration Over time managing complex point-

to-point integration keeps customers from achieving agility Cloud integration has reduced this pain and made it more palatable for companies to move to upgrade or

replace existing implementations

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale

Constellation spoke with six of Oraclersquos premium reference customers at Oracle OpenWorld

2013 The case studies reflect recent client inquiries vendor selection efforts and customer reference checks The emerging patterns chosen reflect the most recent state of Fusion

HCM applications adoption

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud Delivery

This large global bank with over 60000 employees and almost 30000 external support staff in 55 countries upgraded to Oracle Fusion HCM from PeopleSoft 88 The financial services institution views its HR core system as a key system of record The HR system

feeds the banks access control system which enables trading and finance systems which are under potential high scrutiny from auditors

Challenges in administering the older PeopleSoft system led the bank to consider an upgrade or replacement The bank had recently emerged from a regime that prioritized

copy 2013 Constellation Research Inc All rights reserved 5

customization over standardization consequently the bank had to manage extensive customizations

During the selection process the bank considered the usual short list of cloud vendors The bank ultimately decided to implement Oracle Fusion HCM over other systems because

Oracle Fusion HCM delivers choice in deployment and security Flexibility of Fusion Applications and PeopleSoft heritage provided peace of mind for the bank In addition the bank sought a cloud deployment administered and monitored by its

SaaS system provider For auditing requirements the bank required a separately caged instance At the time of selection Oracle was the only provider to offer a

separate caged system that nonetheless was operated in an Oracle data center and maintained by Oracle specialists Oraclersquos solution satisfied corporate governance requests from both internal and external sources

Decision makers prioritize integration of core HCM and talent management in one system The bank sought benefits from the integration of core HCM and

talent management in a single system A big part of the rollout is talent management in 2014 for all employees worldwide and in six languages Of note payroll systems are not part of the Fusion HCM scope and did not influence the vendor selection

Flexfields provide massive configurability The bank felt that the flexfield extension system enables a more agile extension accommodating numerous widely

varying integration interfaces Given the history of customization and complexity of integration points the bank prioritized this factor

The bank expects an Oracle Fusion HCM implementation to cost the same as the last major on-premises upgrade However the organization expects cheaper cost of ownership due to the cloud delivery model While over half of the financial investment goes into upgrading

and updating integration interfaces to the new core HR system the cost savings will come from faster and cheaper upgrades in the future The bank plans to consider a suite approach

with Oracle HCM as it evaluates Oraclersquos Taleo Recruitment offering and Learning Management Solutions

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans

This private college in Southern California educates about 10000 students and has approximately 1500 employees The college felt it was stuck on an older HCM solution and

needed to upgrade especially as a foundation for more advanced talent management functions The urgency was increased by problems in the system landscape that required a

quick vendor selection and even faster implementation of the new system

Therefore the decision makers agreed to choose a cloud-based HCM system The college evaluated the usual SaaS products and selected ultimately Oracle Fusion HCM as it saw a

more compelling user interface a more mature technical foundation and an easier way of integrating into the existing system landscape that already was partially based on Oracle

copy 2013 Constellation Research Inc All rights reserved 6

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 4: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Perception of Oracle Fusion HCM Has Not Been Favorable in the Past Buthellip Oraclersquos Fusion Applications are the next-generation end-to-end enterprise applications built on a vertically integrated Oracle technology stack designed to support best practices

of automation and incorporated with the best features of Oraclersquos many application acquisitions as well as Oraclersquos products built in-house The effort to build a complete

business automation suite from scratch is a massive undertaking and no other competitor has recently built from scratch Not surprisingly the project took Oracle more than five years to move from concept to reality amid its flurry of acquisitions and its move to cloud

computing

While Oracle Fusion Applications were being developed Oracle found overwhelming success

in convincing customers to stay with existing applications in its Apps Unlimited program The programrsquos success led to weak initial adoption of the new Fusion Applications upon release In fact adoption has taken much more effort than expected by Oracle As a result

many industry watchers journalists and technology analysts have made the wrong assumption that Oracle Fusion Applications have failed in the marketplace

Based on customer conversations inquiry calls and vendor selection projects Constellation identifies three key factors for the low initial adoption in one area Fusion HCM

1 Lack of end-to-end customer references Early adopters had few references to

rely on Most users adopted small modules and not the end-to-end applications

2 Minimal communication by Oracle The Fusion Applications team took careful

steps to protect customers during the initial implementations Minimal press and marketing fanfare were provided for customer wins and go-lives

3 Slow adoption by PeopleSoft base The average customer of PeopleSoft owned by Oracle now faces a decision to either upgrade or move to a new product Oraclersquos success with Applications Unlimited and a heavily customized PeopleSoft customer

base have kept PeopleSoft customers happy with minimal business rationale to move to Fusion Applications

Recent Oracle Fusion HCM Deployments Reveal Four Emerging Patterns of Selection

At some point organizations must make the decision to determine go-forward steps for existing enterprise software installations In Oraclersquos case customers are running mature

installations of both the Oracle E-Business Suite and PeopleSoft for HCM automation Leaders must determine whether to maintain upgrade move to third-party maintenance or replace Constellation sees four major forces triggering the re-evaluation of the future

application landscape

copy 2013 Constellation Research Inc All rights reserved 4

1 Customers seek updated best practices A large number of Oracle customers run their automation on enterprise software that was conceived and built in the last

century Many customers realize that it is time to upgrade their HCM automation

2 The cloud is now mainstream but customers want deployment choice

Success with cloud developments drives executives to consider new options amid tightening of capital and reduction of IT budgets Many executives have experienced cloud benefits first hand from more minor point-based automation solutions

However some clients have security requirements that require flexibility in deployment options beyond multi-tenant cloud

3 Maintenance proves to be a greater challenge than expected In the past enterprises have strongly relied on customization to make their enterprise software product fit their automation needs As a direct consequence of that approach many

enterprises sit on a lot of custom functionality that they no longer can maintain A clean slate for their enterprise automation becomes more of a necessity than a desire

4 New cloud integration strategies make it easier for enterprises to consider replacement Traditional HCM implementations consumed up to 50 percent of the budget for complex point-to-point integration Over time managing complex point-

to-point integration keeps customers from achieving agility Cloud integration has reduced this pain and made it more palatable for companies to move to upgrade or

replace existing implementations

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale

Constellation spoke with six of Oraclersquos premium reference customers at Oracle OpenWorld

2013 The case studies reflect recent client inquiries vendor selection efforts and customer reference checks The emerging patterns chosen reflect the most recent state of Fusion

HCM applications adoption

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud Delivery

This large global bank with over 60000 employees and almost 30000 external support staff in 55 countries upgraded to Oracle Fusion HCM from PeopleSoft 88 The financial services institution views its HR core system as a key system of record The HR system

feeds the banks access control system which enables trading and finance systems which are under potential high scrutiny from auditors

Challenges in administering the older PeopleSoft system led the bank to consider an upgrade or replacement The bank had recently emerged from a regime that prioritized

copy 2013 Constellation Research Inc All rights reserved 5

customization over standardization consequently the bank had to manage extensive customizations

During the selection process the bank considered the usual short list of cloud vendors The bank ultimately decided to implement Oracle Fusion HCM over other systems because

Oracle Fusion HCM delivers choice in deployment and security Flexibility of Fusion Applications and PeopleSoft heritage provided peace of mind for the bank In addition the bank sought a cloud deployment administered and monitored by its

SaaS system provider For auditing requirements the bank required a separately caged instance At the time of selection Oracle was the only provider to offer a

separate caged system that nonetheless was operated in an Oracle data center and maintained by Oracle specialists Oraclersquos solution satisfied corporate governance requests from both internal and external sources

Decision makers prioritize integration of core HCM and talent management in one system The bank sought benefits from the integration of core HCM and

talent management in a single system A big part of the rollout is talent management in 2014 for all employees worldwide and in six languages Of note payroll systems are not part of the Fusion HCM scope and did not influence the vendor selection

Flexfields provide massive configurability The bank felt that the flexfield extension system enables a more agile extension accommodating numerous widely

varying integration interfaces Given the history of customization and complexity of integration points the bank prioritized this factor

The bank expects an Oracle Fusion HCM implementation to cost the same as the last major on-premises upgrade However the organization expects cheaper cost of ownership due to the cloud delivery model While over half of the financial investment goes into upgrading

and updating integration interfaces to the new core HR system the cost savings will come from faster and cheaper upgrades in the future The bank plans to consider a suite approach

with Oracle HCM as it evaluates Oraclersquos Taleo Recruitment offering and Learning Management Solutions

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans

This private college in Southern California educates about 10000 students and has approximately 1500 employees The college felt it was stuck on an older HCM solution and

needed to upgrade especially as a foundation for more advanced talent management functions The urgency was increased by problems in the system landscape that required a

quick vendor selection and even faster implementation of the new system

Therefore the decision makers agreed to choose a cloud-based HCM system The college evaluated the usual SaaS products and selected ultimately Oracle Fusion HCM as it saw a

more compelling user interface a more mature technical foundation and an easier way of integrating into the existing system landscape that already was partially based on Oracle

copy 2013 Constellation Research Inc All rights reserved 6

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 5: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

1 Customers seek updated best practices A large number of Oracle customers run their automation on enterprise software that was conceived and built in the last

century Many customers realize that it is time to upgrade their HCM automation

2 The cloud is now mainstream but customers want deployment choice

Success with cloud developments drives executives to consider new options amid tightening of capital and reduction of IT budgets Many executives have experienced cloud benefits first hand from more minor point-based automation solutions

However some clients have security requirements that require flexibility in deployment options beyond multi-tenant cloud

3 Maintenance proves to be a greater challenge than expected In the past enterprises have strongly relied on customization to make their enterprise software product fit their automation needs As a direct consequence of that approach many

enterprises sit on a lot of custom functionality that they no longer can maintain A clean slate for their enterprise automation becomes more of a necessity than a desire

4 New cloud integration strategies make it easier for enterprises to consider replacement Traditional HCM implementations consumed up to 50 percent of the budget for complex point-to-point integration Over time managing complex point-

to-point integration keeps customers from achieving agility Cloud integration has reduced this pain and made it more palatable for companies to move to upgrade or

replace existing implementations

Six Case Studies Reveal Successful Fusion HCM Deployments at Scale

Constellation spoke with six of Oraclersquos premium reference customers at Oracle OpenWorld

2013 The case studies reflect recent client inquiries vendor selection efforts and customer reference checks The emerging patterns chosen reflect the most recent state of Fusion

HCM applications adoption

Large European Bank Chooses Fusion HCM for Flexible Deployment and Secure Cloud Delivery

This large global bank with over 60000 employees and almost 30000 external support staff in 55 countries upgraded to Oracle Fusion HCM from PeopleSoft 88 The financial services institution views its HR core system as a key system of record The HR system

feeds the banks access control system which enables trading and finance systems which are under potential high scrutiny from auditors

Challenges in administering the older PeopleSoft system led the bank to consider an upgrade or replacement The bank had recently emerged from a regime that prioritized

copy 2013 Constellation Research Inc All rights reserved 5

customization over standardization consequently the bank had to manage extensive customizations

During the selection process the bank considered the usual short list of cloud vendors The bank ultimately decided to implement Oracle Fusion HCM over other systems because

Oracle Fusion HCM delivers choice in deployment and security Flexibility of Fusion Applications and PeopleSoft heritage provided peace of mind for the bank In addition the bank sought a cloud deployment administered and monitored by its

SaaS system provider For auditing requirements the bank required a separately caged instance At the time of selection Oracle was the only provider to offer a

separate caged system that nonetheless was operated in an Oracle data center and maintained by Oracle specialists Oraclersquos solution satisfied corporate governance requests from both internal and external sources

Decision makers prioritize integration of core HCM and talent management in one system The bank sought benefits from the integration of core HCM and

talent management in a single system A big part of the rollout is talent management in 2014 for all employees worldwide and in six languages Of note payroll systems are not part of the Fusion HCM scope and did not influence the vendor selection

Flexfields provide massive configurability The bank felt that the flexfield extension system enables a more agile extension accommodating numerous widely

varying integration interfaces Given the history of customization and complexity of integration points the bank prioritized this factor

The bank expects an Oracle Fusion HCM implementation to cost the same as the last major on-premises upgrade However the organization expects cheaper cost of ownership due to the cloud delivery model While over half of the financial investment goes into upgrading

and updating integration interfaces to the new core HR system the cost savings will come from faster and cheaper upgrades in the future The bank plans to consider a suite approach

with Oracle HCM as it evaluates Oraclersquos Taleo Recruitment offering and Learning Management Solutions

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans

This private college in Southern California educates about 10000 students and has approximately 1500 employees The college felt it was stuck on an older HCM solution and

needed to upgrade especially as a foundation for more advanced talent management functions The urgency was increased by problems in the system landscape that required a

quick vendor selection and even faster implementation of the new system

Therefore the decision makers agreed to choose a cloud-based HCM system The college evaluated the usual SaaS products and selected ultimately Oracle Fusion HCM as it saw a

more compelling user interface a more mature technical foundation and an easier way of integrating into the existing system landscape that already was partially based on Oracle

copy 2013 Constellation Research Inc All rights reserved 6

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 6: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

customization over standardization consequently the bank had to manage extensive customizations

During the selection process the bank considered the usual short list of cloud vendors The bank ultimately decided to implement Oracle Fusion HCM over other systems because

Oracle Fusion HCM delivers choice in deployment and security Flexibility of Fusion Applications and PeopleSoft heritage provided peace of mind for the bank In addition the bank sought a cloud deployment administered and monitored by its

SaaS system provider For auditing requirements the bank required a separately caged instance At the time of selection Oracle was the only provider to offer a

separate caged system that nonetheless was operated in an Oracle data center and maintained by Oracle specialists Oraclersquos solution satisfied corporate governance requests from both internal and external sources

Decision makers prioritize integration of core HCM and talent management in one system The bank sought benefits from the integration of core HCM and

talent management in a single system A big part of the rollout is talent management in 2014 for all employees worldwide and in six languages Of note payroll systems are not part of the Fusion HCM scope and did not influence the vendor selection

Flexfields provide massive configurability The bank felt that the flexfield extension system enables a more agile extension accommodating numerous widely

varying integration interfaces Given the history of customization and complexity of integration points the bank prioritized this factor

The bank expects an Oracle Fusion HCM implementation to cost the same as the last major on-premises upgrade However the organization expects cheaper cost of ownership due to the cloud delivery model While over half of the financial investment goes into upgrading

and updating integration interfaces to the new core HR system the cost savings will come from faster and cheaper upgrades in the future The bank plans to consider a suite approach

with Oracle HCM as it evaluates Oraclersquos Taleo Recruitment offering and Learning Management Solutions

ACC Private College Moves HCM to the Cloud with Oracle Fusion HCM that Supports Future Expansion Plans

This private college in Southern California educates about 10000 students and has approximately 1500 employees The college felt it was stuck on an older HCM solution and

needed to upgrade especially as a foundation for more advanced talent management functions The urgency was increased by problems in the system landscape that required a

quick vendor selection and even faster implementation of the new system

Therefore the decision makers agreed to choose a cloud-based HCM system The college evaluated the usual SaaS products and selected ultimately Oracle Fusion HCM as it saw a

more compelling user interface a more mature technical foundation and an easier way of integrating into the existing system landscape that already was partially based on Oracle

copy 2013 Constellation Research Inc All rights reserved 6

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 7: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

What mattered most to the technical side was the fact that Oracle Fusion is implemented on top of a market-leading middleware product Oracle Fusion Middleware with well-trained

and abundant implementation resources available

The college made the selection of Oracle in spring 2012 and was live 17 weeks later on core

HCM for its employees Payroll is handled by a third-party product but the college is looking into replacing it with Oracle in coming months in connection with the implementation of the Fusion Workforce Compensation module

On the best practices side the college used offshore testing to ensure quality of both go-live code as well as ongoing updates thus keeping its HCM professionals free to focus on

subsequent rollout steps and key HR tasks In true cloud fashion the college does not know (and does not care) where the data center is located or where its Oracle Fusion HCM code and data are residing ndash as long as it keeps experiencing great system performance

After the compensation and payroll rollout the college plans to look into further Oracle Talent Management modules The college now has a modern HCM system and a very good

visibility and availability into core HR data It created a platform both for adding more HCM automation and for more integration with its additional enterprise functions

Siemens Large Multinational Picks Oracle Because of Complete Automation Capabilities

This large multinational enterprise has over 60000 employees in North America and its business leadership felt it was time to move to a cloud-based HCM system The enterprise

is currently running PeopleSoft 89 and originally considered upgrading the PeopleSoft system on premise But the cloud value proposition of a vendor-managed system and continuous updates proved too compelling to remain on-premises

The enterprise evaluated other cloud-based HCM vendors and selected Oracle Fusion HCM

Key decisive factors were Oraclersquos robust extensible integration platform strong focus on data protection and the ownership of the entire technology stack The decision was further

influenced by Oraclersquos leading presence in the ERP market and its strategic commitment to Fusion Cloud

The selection was made in late spring 2013 and the implementation is currently ongoing

with a planned go-live in 2015 The scope covers core HR benefits and payroll Similar to the bank mentioned earlier the integration effort is substantial This company operates over a dozen different finance systems that need to be integrated with a total of over a

100 interfaces to internal and external systems

The enterprise chose one of the well-known large system integrators as its partner for the implementation Siemens felt that it needed a partner with strong implementation capability

and ability to support strategic objectives The company expects significant benefits from an integrated and consistent cloud-based HCM platform for North America ndash including payroll Following successful implementation in North America a next step would be to

leverage this platform in other geographies

copy 2013 Constellation Research Inc All rights reserved 7

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 8: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Lifestyle Retailer Reinvents Store-Based HCM Processes with Fusion HCM

The US-based retailer with operations in over 30 states and over 5000 employees looked at implementing its first HCM system The company had grown so fast that - especially for the critical in-store HCM processes of talent acquisition performance management and e-

learning - it had relied on custom homegrown solutions Whatrsquos more the retailer thinks innovatively ndash for example it runs the e-learning system directly integrated with the

business intelligence system So when weaknesses in performance are identified in the business intelligence system it triggers not only a certain course selection for a weaker performing store but can even demand the creation of required e-learning courses to

address more systemic performance issues

Given the distributed nature of the business the retailer was going to look at cloud solutions

only Besides Oracle it looked at the usual suspects for cloud-based HCM but saw a lack of robust recruiting and onboarding functionality with other vendors The retailer also looked at its existing payroll vendor but decided that companyrsquos SaaS offering was premature

As a result the retailer selected Oracle Fusion HCM in spring 2013 It has been live on core HR since early September and is running parallel payroll runs with a cutover to the Oracle

Fusion Global Payroll planned for October 2013 The critical in-store HCM functionality is rolled out to store management on tablets to ensure system availability close to the retail operations happening in the store

Next steps for the retailer are to add performance management and onboarding functionality in rapid succession and to enable more advanced talent pooling capabilities to

get across store visibility into hiring pipelines

Executives are very happy with the decision Store employees are excited about using an integrated HCM system that can be accessed on a tablet The value of running its first HCM

system will be increased soon when the talent management functions are added

Blackrock Investment Firm Moves to Oracle Fusion HCM in Less Than Five Months

This well-known name in the investment industry with over 10000 employees and over 2000 contractors operates in over 30 countries The executive management of the firm

wanted to apply a traditional financial portfolio approach to the HCM field and it was clear that the existing Oracle E-Business Suite HCM implementation would not be able to satisfy

that philosophy

The selection committee looked both at ERP competitors and the usual cloud vendors and ended up selecting Oracle due to its better integration capabilities The firm has over 100

interfaces that are fed from its core HR system

Moreover the firm liked the flexible deployment options with Oracle Currently it runs

Fusion applications in a separate instance but in an Oracle data center fully managed by

copy 2013 Constellation Research Inc All rights reserved 8

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 9: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Oracle This setup allowed the firm to keep running some key integration custom software without modification even after moving to Fusion The firm is considering moving to a shared

instance In the meantime it values the capability to run the complete Fusion HCM instance in-house as well since it does not know where regulatory and compliance considerations

may take system deployment preferences

Thanks to the implementation of an interface abstraction layer the firm was able to go live on Oracle Fusion HCM in July 2013 after starting the implementation only in February This

was remarkably quick given that the firm decided to implement Fusion HCM from scratch to ensure the new financial portfolio-oriented system philosophy Despite this significant

scope the firm was able to implement Oracle Fusion HCM on a remarkably small budget largely because of similarities between the Oracle E-Business Suite and Fusion HCM

Currently both payroll and benefits are handled by third-party vendors but the firm is

evaluating whether to move payroll to Fusion HCM or look into an Oracle Talent Management Cloud rollout

The firm is particularly positive on the new user interface in Oracle HCM Cloud that has proven very popular and has received high marks from the line managers and employees using the product Moreover the new philosophy of applying a financial portfolio

management approach to the HCM function was implemented and is live in less than two quarters giving management a new and innovative way to lead HCM

Rotterdam European Municipality Chooses Fusion HCM for More Agility

This European municipality employs over 13000 workers and faces significant

transformation as it will have to reduce its workforce by close to 20 percent in the coming years To create a basis for rational decision making the leadership decided to implement a talent management solution to get a better understanding of the performance of individual

members of the workforce

The municipality was an existing Oracle E-Business Suite customer but it was clear to the

leadership that more enhanced talent management functionality would be needed The municipality wanted to stay with Oracle so the main question was whether to implement

Fusion HCM or the Taleo products Ultimately the municipality decided on Fusion HCM which decision makers felt was the more modern technology platform with longer term support and a foundation for future rollouts of Oracle Fusion Application products

Currently the municipality is live with the goal management performance management and talent review functionality of Fusion HCM Cloud The feedback from the user community

is very positive as users are pleased with the high usability of the Fusion HCM screens The biggest challenge was not the implementation of the new software but the change management required in moving from a paper-based to an electronic performance review

process

copy 2013 Constellation Research Inc All rights reserved 9

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 10: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

The municipality is using the public cloud deployment option of Oracle Fusion HCM seeing better performance and response times with the cloud-based deployment than with the

comparable on-site deployment of the last comparable software

The municipality is operating with parts of HCM automation residing in Oracle E-Business

Suite HCM and other parts of automation in Oracle Fusion HCM This makes the city a showcase for a tactical not big bang style approach of moving gradually from one of the older Oracle product families to Oracle Fusion HCM

The next step for the municipality is to roll out tablet-based usage of the current scope and then introduce the HR core functionality of Fusion HCM

The municipality has already seen the benefits of rolling out the state-of-the art talent management functionality inside of Fusion HCM creating a more factual data pool for the tough personnel decisions ahead At the same time it is operating on a small budget and

organically running both Fusion HCM and the HCM functionality of the Oracle E-Business Suite in concert

Big and Early Bets on Cloud Provided Big Returns and First Mover Advantages

In general Constellationrsquos early cloud clients gain seven pillars of competitive advantage (see Figure 1)

1 Lower operating costs Most cloud clients achieve cost savings by reducing the expense of upgrades from planning testing and acceptance The larger entities

clearly positioned the move to Oracle Fusion HCM as the last major investment into an upgrade or a re-implementation of a system Enterprises are tired of paying large amounts for a mega upgrade every seven to 10 years and instead

expect a continuous and regular upgrade process handled by their SaaS vendor allowing the enterprise to focus on training and change management

2 Access to continuous innovation Cloud vendors deliver upgrades between two to six times a year Customers can consume this innovation at a rapid rate Smaller entities typically have a more strategic and transformational ambition

about moving to a cloud-based system Whether it is moving from a paper-based system to software or applying new concepts like moving HR functions into the

hands of line-of-business managers the smaller enterprises tend to be bolder and more transformational than the large ones

3 Adoption and productivity Cloud vendors apply modern design thinking and

user experience concepts All of the Oracle Fusion HCM clients are seeing improved adoption and productivity in their user bases after moving to Fusion

HCM

copy 2013 Constellation Research Inc All rights reserved 10

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 11: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

4 Improved visibility Access to data is immediate Managers can monitor performance in real time Employees consume up-to-date data and can make

changes as needed All references reported increased visibility from the use of Oracle Fusion HCM Visibility will improve even more with increased accessibility

ndash all clients are planning to roll out Fusion HCM functionality on tablets

5 Capital expenditure reduction Customers can save on capital expense as they move to an operations expense scenario Interestingly enough this was not a

topic much mentioned by the customers we talked to It looks like capital expenditure reduction through cloud adoption is well understood and implicitly

expected

6 Real-time regulatory compliance Regulatory compliance is consumed by end users via updates and upgrades HCM data is governed by a variety of data privacy

and protection rules and other regulations that need to be followed Add an international rollout and regulatory compliance gets even more complex Not

surprisingly enterprises that have a preference for cloud-based deployments will prefer to go with vendors that have a global presence a proven track record implementing around the globe and offer sophisticated deployment options to

regional data centers to comply both with data privacy and protection rules as well as regional data abuse-related fears

7 Focus on business transformation not IT maintenance Teams can spend more time designing the employee journey instead of reverse engineering

integrations and chewing up time on configuration When speaking to the IT side of the enterprises it was also clear that the move to the cloud allowed the freeing up of IT resources for other strategic initiatives The HCM offering was not deemed

as strategic or could be moved to cloud and be professionally managed by Oracle

Figure 1 Early Adopters in Cloud Gain Seven Business Benefits

Lower operating costs

Access to continuous innovation

Adoption and productivity

Improved visibility

Capex reduction Regulatory compliance

Focus on business

transformation not IT

maintenance

copy 2013 Constellation Research Inc All rights reserved 11

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 12: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

The Bottom Line Why Fusion HCM Should Be Considered on Short Lists

Constellation foresees Oracle Fusion HCM on short lists and winning an HCM selection process when the following criteria are in play

Functionality matters ndash For a long time the SaaS products of ERP vendors lacked the functionality of early SaaS players and the dedicated talent management

vendors But not a single enterprise we talked to noticed a lack of Oracle Fusion HCM functionality compared to the other offerings they considered ndash giving proof that Oracle has achieved probably leadership in some parity in most and certainly good

enough functionality levels in all areas of HCM automation

Usability and mobility matter ndash All enterprises we talked to reported significant

improved usability for their users after moving to Oracle Fusion HCM And likewise all of them are moving to or at least seriously evaluating tablet-based rollouts

Integration matters ndash Enterprises know that their HCM core system is a vital

system in their application landscape and that a very large part of the implementation budget goes toward integration The functional richness of integration techniques

the robustness of platform and the reputation as a technology vendor in its own right helps Oracle in these situations

Flexible deployment matters ndash Enterprises want to be flexible in deploying Oracle

In talking to six enterprises we saw three deployment options in play ndash public shared public dedicated and public caged and hosted by Oracle Three of the six enterprises

mentioned possibly moving the deployment back on premise at some point ndash so having flexibility with Oracle Fusion HCM was key

Recommendations Begin with the End in Mind

Successful cloud deployments require organizations to align their business strategies with

their apps strategy While cloud lessens the risks in successful deployment and adoption Constellation suggests the following four recommendations to optimize the benefits of the cloud

1 Find a trusted vendor you can grow with The cloud journey spans a long-term lifecycle The average cloud customer stays with its vendor more than three years

and that number is growing

2 Invest in upfront planning and design Given that organizations replace HCM and financial systems at the latest every 25 years leaders should take advantage of the

opportunity to focus on proper design and change management Cost savings from upgrade avoidance re-implementation of legacy on-premises and future cost

avoidance of regulatory updates can provide the needed funding in cost justification models

copy 2013 Constellation Research Inc All rights reserved 12

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 13: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

3 Start using the cloud Constellation recommends enterprises to assess their cloud needs and formulate a comprehensive cloud strategy Enterprises should

continuously evolve their cloud strategies and plans The benefits of cloud adoption are proven and the risk of disruption by more cloud savvy competition is real What

remains to be determined is the path and the speed of adoption for each enterprise

4 Use the Enterprise Cloud Buyerrsquos Bill of Rights to bring the business procurement and IT teams together Walk through the best practices to establish

future cloud procurement policies CIOs can use the Bill of Rights to establish frameworks for business units to speed up the vendor selection process Procurement

staff can standardize templates to ensure speedy yet compliant purchases

Disclosures

Your trust is important to us and as such we believe in being open and transparent about our financial relationships With our clientsrsquo permission we publish their names on our

website

copy 2013 Constellation Research Inc All rights reserved 13

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 14: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

Analyst Bio Holger Mueller

Holger Mueller is a Vice President and Principal Analyst for the fundamental enablers of the

cloud IaaS PaaS with forays up the tech stack into Big Data and Analytics and sometimes SaaS Mueller provides strategy and counsel to key Constellation Research clients including

Chief Information Officers Chief Technology Officers Chief Product Officers investment analysts venture capitalists sell side firms and technology buyers

Prior to joining Constellation Research Mueller was VP of Products for NorthgateArinso a

KKR company There he led the transformation of products to the cloud and laid the foundation for new Business Process as a Service (BPaaS) capabilities Previously Mueller

was Chief Application Architect with SAP working on strategic projects and next-generation product capabilities Mueller was also VP of Products for FICO creating the foundation for the current Enterprise Decision Management Suite Before that he worked for Oracle in

various management functions both on the application development (CRM Fusion) and business development side Previously he worked for SAP starting the products suite that

is currently SAP CRM and worked in the Office of the Chairman for Hasso Plattner Mueller started his career with Kiefer amp Veittinger which he helped grow from a startup to Europersquos largest CRM vendor from 1995 onwards There he helped spearhead offshore development

in Bangalore India where the previous KampV Lab is now SAP Labs Bangalore Mueller has presented at numerous trade shows and industry events and writes his blog on enterprise

software at enswmublogspotcom

Mueller has a Diplom Kaufmann from University of Mannheim with a focus on Information Science Marketing International Management and Chemical Technology As a native

European Mueller speaks six languages

Mueller can be reached at holgerConstellationRcom

copy 2013 Constellation Research Inc All rights reserved 14

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15

Page 15: The Untold Stories Behind the Traction in Oracle Fusion ... · PDF filePerception of Oracle Fusion HCM Has Not Been Favorable in the Past, But Oracle’s Fusion Applications are the

About Constellation Research

Constellation Research explores the technologies and business models that not only disrupt

established players but also create transformational innovation We share our research insights with business leaders seeking more than just rubber stamp approval or rearview

mirror confirmation by traditional legacy analyst firms Every piece of research begins by understanding how to deliver business value applying real world experience and insights and incorporating disruptive technologies and innovative business models as

appropriate Our mission is to identify validate and share these insights with our clients

As a result our research community includes members of boards of directors C-suite executives line of business leaders and IT visionaries who are not afraid to challenge the

status quo Most of our clients share a common trait - the passion for learning innovating and delivering impactful results

Organizational Highlights

Founded and headquartered in the San Francisco Bay Area United States in 2010

Named Institute of Industry Analyst Relations (IIAR) New Analyst Firm of the Year in 2011

Serving over 200 buy-side and sell-side clients around the globe

Experienced research team with an average of 21 years of practitioner management and industry experience

Growing firm with 30 members including 9 research analysts and futurists 7 sales professionals 4 professional staff and a board of 10 industry-recognized advisors

Creators of the Constellation Supernova Awards - the industrys first and largest

recognition of innovators pioneers and teams who apply emerging and disruptive technology to drive business value

Organizers of the Constellation Connected Enterprise - an innovation summit and best practices knowledge-sharing retreat for business leaders

Website wwwConstellationRcom Twitter ConstellationRG Contact infoConstellationRcom Sales salesConstellationRcom

Unauthorized reproduction or distribution in whole or in part in any form including photocopying faxing image scanning e-mailing digitization or making available for electronic downloading is prohibited without written permission from Constellation Research Inc Prior to phot ocopying scanning and digitizing items for internal or personal use please contact Constellation Research Inc All trade names trademarks or registered trademarks are trade names trademarks or registered trademarks of their respective owners

Information contained in this publication has been compiled from sources believed to be reliable but the accuracy of this information is not guaranteed Constellation Research Inc disclaims all warranties and conditions with regard to the content express or implied including warranties of merchantability and fitness for a particular purpose nor assumes any legal liability for the accuracy completeness or usefulness of any information contained herein Any reference to a commercial product process or service does not imply or constitute an endorsement of the same by Constellation Research Inc

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold or distributed with the understanding that Constellation Research Inc is not engaged in rendering legal accounting or other professional service If legal advice or other expert assistance is required the services of a competent professional person should be sought Constellation Research Inc assumes no liability for how this information is used or applied nor makes any express warranties on outcomes (Modified from the Declaration of Principles jointly adopted by the American Bar Association and a Committee of Publishers and Associations)

Andalucia | Belfast | Boston | Chicago | Colorado Springs | Denver | Irvine | London | Los Angeles | New York | Pune | Sacramento | San Francisco

| Santa Monica | Salt Lake City | Sedona | Sydney | Tokyo | Toronto | Washington DC

copy 2013 Constellation Research Inc All rights reserved 15