New (and Newly Important) Drivers of Oracle ERP Cloud Migrations

While indirect tax leaders and their teams are familiar with most drivers of ERP cloud migrations, some of these catalysts (e.g., access to advanced functionalities) are rapidly evolving major changes (e.g., artificial intelligence). Other motivations – including cost-savings and regulatory compliance considerations – have taken on newfound importance in light of rapidly changing regulatory and economic environments.  

As tax groups work to strengthen global compliance by integrating tax automation into broader Oracle ERP Cloud migrations, it’s important to stay aligned with IT’s technology priorities and roadmaps. Key developments to consider include: 

• Cost-reduction is a widespread enterprise priority: In response to economic uncertainty and volatility, companies are focused on reducing costs while increasing organizational resilience and agility. CFOs are keenly aware when their companies need to maintain significant reserve funds in escrow accounts to cover potential tax errors, audit findings and subsequent penalties. The improved accuracy and compliance capabilities of cloud-based ERP and tax systems gives companies the opportunity to potentially reduce these reserves. By doing so, CFOs can free up capital for other business initiatives – including those designed to strengthen resilience and agility.
• The pace and volume of ERP cloud migration is accelerating: This uptick is driven by a range of factors including ERP vendors, like Oracle, that are providing additional incentives to their sales teams to entice customers to the transition from on-premises solutions to cloud-based solutions.
• New regulatory requirements are driving cloud migrations: Companies that operate globally must comply with a growing number of e-invoicing and real-time reporting mandates. E-invoicing compliance requirements affect tax along with many other business groups. Cloud-based ERP and tax systems are well-positioned to support e-invoicing compliance while quickly updating and scaling to address new regulations as well as changes to existing rules.
• Data is a crucial foundation – for companies and software vendors: Oracle and other ERPs vendors are creating comprehensive platforms where data flows seamlessly across all ERP, finance, procurement, and tax systems. This integration streamlines data flows across different solutions while equipping various business units, including tax, with richer inputs for forward-looking analytical insights.

I briefly mentioned AI at the top of this post, and it certainly warrants further discussion in the context of cloud migration and ERP and tax solutions.  

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