Cloud migration that integrates finance and HR systems is proven to improve internal collaboration – between the functions and with the IT team, and deliver better performance in terms of cost and time to deliver.
Were you aware that 35 percent of companies intend to develop a shared finance and HRfunction? A research conducted by MIT Technology and commissioned by Oracle, reveals that collaboration between these two functions is no longer just a cost-saving measure-it’s a strategic necessity in any organization.
The roles of HR and finance have always been intertwined, but today they are truly converging. CFOs are being asked to take a more active role in defining business strategies, which requires a firm understanding of the company’s talent and resourcing needs. In turn, HR leaders need a clear view of each team’s budgets and strategic priorities if they are to recruit and retain the right people. And both lines of business need the ability to shift gears quickly to keep pace with digital disruption, new business models, and emerging technologies like AI, machine learning, and more.
The convergence of finance and HR data is leading teams to consider a unified system in the cloud. Many companies run separate, disconnected HR and finance systems-often on premises, and sometimes from different software vendors. This not only leads to integration challenges, but to a lack of insight-each system has its own record of workforce-related costs, and the two don’t always reconcile.
To understand the benefits of unifying finance and HR, let’s consider the case of employee onboarding. When you hire a new employee, there are three actions that you must take: define the person’s role, assign the new person to a manager, and add a line of business/cost center.
When finance and HR applications run on a shared cloud platform, each of these steps is quick and easy; there is no need to re-enter the data or wait for IT to map the data across finance and HR systems. A “single person record” defines an employee’s role, data access privileges, reporting hierarchy, and other characteristics, eliminating the need to create and maintain multiple sets of employee records. This global definition is shared by Oracle ERP Cloud and Oracle HCM Cloud-improving data integrity and control.
A connected cloud for HR and finance offers continuous updates and innovations, mobile accessibility from anywhere, and shareable dashboards and reports-which can drive improved collaboration between finance and HR teams.
Finance and HR leaders get better insight right away. They can spend more of their time developing and planning strategies to recruit and retain the right people-not only for today, but to meet future business needs. In fact, 31% of survey respondents said that cloud systems give them more time to focus on company strategy.
The benefits sound exciting, but the reality as always, is that change is hard-and technology projects can be intimidating, especially for line of business leaders. Migrating finance and HR systems to the cloud significantly improves collaboration and productivity. Cloud migration that integrates finance and HR systems is proven to improve internal collaboration – between the functions and with the IT team, and deliver better performance in terms of cost and time to deliver. Forward-looking organizations understand that their survival depends not merely on digital transformation, but on a dramatic cultural shift as well. By initiating their migration to the cloud with Finance and HR, companies can leverage their two most powerful assets-people and money-to reap immediate savings and efficiencies as well as gain long-term strategic advantage, tipping the balance between success and failure for their cloud initiatives.[“Source-economictimes”]