This Editor is once again attending the Oracle Open World conference here in San Francisco and Supply Chain Matters is publishing impressions throughout the week. As a reference, our prior blog commentaries included:

Highlights of Oracle’s Q1 FY17 financial performance last week

Our initial on-site Commentary One posting

Our Commentary Two posting.

In previous commentaries we observed that Oracle has been sharing the customer uptake counts for Oracle HCM Cloud and Oracle CX Cloud. While there was again specific mention of Oracle SCM Cloud (Oracle’s complete suite of Cloud based supply chain management and manufacturing applications) there was no customer data shared from the podium in Larry Ellison’s opening keynote. Our Commentary Two echoed customer uptake statistics shared by senior Oracle SCM executives.

We advise our readers to take context to the stated current total of 1090 Oracle SCM Cloud customers since there is the possibility of some double-counting of customers among ERP Cloud and SCM Cloud. Our on-site discussions yesterday indicated that SCM Cloud may be benefitting from the ongoing momentum of 2800 customers embarking on various applications within Oracle ERP Cloud. Development executives for Cloud ERP indicated to independent analysts that one of the current primary motivations for movement toward ERP Cloud is to undo many years of backbone systems customizations that have occurred, leading to increased maintenance and IT support costs. While the majority of on premise deployed Oracle E-Business customers remain with current deployments, Oracle executives indicated building customer inquiries and discussion reflecting on how they can take advantage of Cloud based deployments and the reduction of expensive and complex customizations. As those efforts continue towards Cloud deployment, it obviously opens up on-ramps to SCM Cloud to fill-in potential business process gaps. Oracle SCM executive Jon Chorley indicated that current active on-ramps to SCM Cloud have been early customer’s election to adopt indirect procurement, product innovation management, transportation and global trade management. Oracle SCM executives articulate such motivations towards Cloud as either:

  • Operational excellence
  • Innovate at the edge
  • Divisional level modernization (termed two-tier ERP)
  • Complete transformation to Cloud deployment model

The above stated, we did observe that the release pipeline for SCM Cloud is accelerating from previous levels.  First, SCM senior vice president Rick Jewell flatly indicated that the majority of Oracle’s development resources will be dedicated towards a continuous Cloud based applications development environment. Releases in the pipeline for 2017 include:

Supply Chain Collaboration Cloud, an application focused on supporting primarily outsourced supply chain collaboration and decision support needs.

Supply Chain Planning Cloud will introduce enhanced demand management capability via Oracle Demantra, a full sales and operations planning (S&OP) support utility for supporting multiple ERP and best-of-breed systems, and the beginning of enabling Oracle APS Release 11 Planning Central functionality to be enabled by the Cloud.

Oracle Quality Cloud was described as supporting something that Oracle SCM has not done previously, introducing end-to-end quality management support and quality management best practices.

Cloud SCM Release 13 in 2017 is expected to include some form of a supply chain analytics cloud application that would include analytics-driven navigation as well as newly developed Oracle analytics technologies pre-configured to support key supply chain decision support needs.

Other areas mentioned, not specifically in timeline include abilities to support Internet-of-Things data sensing of capital equipment and the sharing of analytics directly into manufacturing and shop-floor scheduling systems,  A sophisticated on-stage demo of potential functionality was demonstrated.

Before closing out this commentary, we share some additional thoughts. If your organization remains concerned about potential shift of applications hosting to the Cloud, you are obviously not alone.  Concerns for data and information security are natural and even acknowledged by enterprise technology providers such as Oracle.  Yet, do not be close minded as to not consider the operational, decision-making and/or financial benefits that Cloud based deployments can and will ultimately provide.  The reality remains that if your organization remains conservative, industry competitors or disrupters will move to gain important competitive advantages in cost, productivity and business agility.  Therefore, keep an eye toward developments and demand that Cloud technology providers provide required information and customer deployment references. Talk to early adopters and talk to independent analysts who have knowledge of this quickly changing landscape.

Yesterday, Oracle icon Larry Ellison delivered his second keynote and he did not disappoint. His two key themes were advances in Cloud based database technologies as well as Cloud infrastructure.  It was pointed and direct, and from this author’s view, provided many longer-term implications for supply chain planning, sales and operations planning, analytics and more demand-driven analytics needs.  We will address these functional implications in our next commentary.

Stay tuned to our continuing coverage of Oracle OpenWorld 2016.

Bob Ferrari

© Copyright 2016. The Ferrari Consulting and Research Group and the Supply Chain Matters® blog. All rights reserved.