UEM Group going to cloud in big way with Oracle
UEM Group is implementing Oracle’s integrated enterprise resource planning or ERP cloud solution, a project that will cost RM150 million over the next 3 years.
For the moment however, there is a three to six month phase that Oracle’s VP of Cloud Applications Jasbir Singh called ‘blueprinting’, a smaller scale implementation on the cloud, before Oracle’s full SaaS suite comprising ERP, human capital management (HCM), supply chain management (HCM), and industry cloud is deployed across UEM Group’s vast organisation.
Jasbir is careful to point out that this blueprinting will happen in the cloud, making it ultimately cost-effective because of its consumption-based paying model.
There is tremendous amount of work involved, and UEM has already released announcement that system integrator giant Tech Mahindra would be deploying with the solution, with consultants PwC Consulting and Ernst &Young, also roped in.
Because of the amount of integration that needs to be done, UEM had opted for Oracle’s platform-as-a-service (PaaS) as well as infrastructure-as-a-service offerings. Jasbir explained, “If you need to extend your SaaS, then use our PaaS services like database-as-a-service and integration-as-a-service. This (layer) is where you do cloud-to-cloud integration.”
And there are numerous integrations to be done, within UEM Group with all its subsidiaries and core businesses like CIMA or Cement Industries of Malaysia Berhad, not to mention also with banks and the Inland Revenue Board.
It’s not all cloud solutions as UEM is acquiring on-premise software licenses for Oracle’s real estate management solution, JD Edwards, and hosting it on Oracle’s infrastructure which UEM subscribes to.
Other than JD Edwards, are the much touted SaaS suites that were created from scratch to have built-in analytics, built-in mobility support and embedded collaboration.
Jasbir pointed out, “Embedded collaboration (in our ERP) brings different divisions together, connecting structured data like employee number or purchase order number to unstructured data like communication that usually happen in emails, minute meetings and so on.”
No doubt, these are powerful capabilities to have during projects that require all divisions involved to collaborate tightly and efficiently.
However, most customers aren’t aware of what is possible and Jasbir bemoans the fact that the compliance matrix; an important part of the RFP or request for proposal and purchase process, is out-of-date.
He is hopeful that compliance matrices will become modern as more experience is gained building more clouds.
Resource for success
Oracle is committed to make the project a success and have allocated three customer success managers along with implementation success managers, to ensure the cloud solution goes live for UEM Group.
In short, Oracle has embedded a team of experts to ensure it’s successful.
Jasbir commented, “This is a significant transformation deal that is sending shockwaves through the industry because it’s a GLC going to the cloud.
“If it goes live, it proves the point that even a GLC is moving from a CAPEX model to an OPEX model. It allows them to think about what other spending they can shift to a consumption model… not just from a software aspect, but also legal, HR, payroll and more.”
No doubt, a success story would be an important proof point for more local GLCs to go to the cloud.