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October 2020

THE TOP 6 QUESTIONS A COMPANY DOES WHEN FACING AN ERP IMPLEMENTATION IN LATIN AMERICA.

 

Latin American projects are difficult to handle, to understand, to explain, to control. Why is that and how could we avoid risks?
Let’s have a look at some key questions Oracle clients use to do:

 

1. Can I plan same time in all countries? The region has 20 countries, most of them speak Spanish, but they all have different governments and laws. So even if it is the same region, you need to expect totally different implementation requirements and timing from country to country.

2. Why is said Latin America so challenging? When facing rollouts in this region, we think of the language barrier, taxes, and legal requirements, but there are also many other challenges that will impact on our plan:

  • Fiscal integrations needed (electronic invoice is mandatory in almost all region, but different in each country)
  • Frequent law changes
  • Not enough or easy to get information to plan well
  • Informality in business processes
  • Solving the post-go live support strategy
  • Different timing, cultural and communication ways
  • Important local budget restrictions
  • User resistance

For all of the above, doing a good plan is key for being successful in Latin America.

3. What does Oracle ERP Cloud provide in terms of localization? There are some good news too: Oracle ERP Cloud has important taxes and localization capabilities compared with Oracle on-prem ERPs.

  • Tax engine for calculating all taxes of the region.
  • Legal reporting available.
  • Integration with Electronic Invoice vendors in several countries (Argentina, Colombia…), or advanced capabilities for doing an automatic connection (Mexico, Brazil…).
  • Connectors with electronic bank payment 3rd parties, for many banks in the region.
  • Integrations available for updating fiscal data using OiC connectors already developed by Oracle.
  • DOC ID 2646729.1 (My Oracle Support) is highly recommended, if you look for detailed ERP Cloud Localization information about Latin America.

4. Why do we hear projects in Latin America use to fail? Simply put…my top one reason is “lack of information” … plans are underestimated because risks are not known, and the person that creates the plan does not have the right information to do it well. Avoiding this issue is possible.

5. How long does it take? How much? It depends on the country. Countries like Argentina or Chile can take 6 months average time, Mexico 5 months, Brazil not less than 9 months. But it is just average time. It is important to understand well the company requirements, the integrations, if there is a model to replicate or not…time and money can vary due to all these factors.

6. Our company uses EBS, PSFT or JDE in USA. We never implemented in Latin America because it was very costly for such small branches. Is Oracle ERP Cloud a cheaper option? Definitely! Implementing Financials Cloud only in small locations is an approach many companies are taking and analyzing. It is worth doing the exercise and comparing on-prem costs versus ERP Cloud ones.

 

Latin America is challenging, but doable. ITCROSS is convinced successful projects in Latin America can be achieved, and that typical pitfalls can be avoided.

 

Contact ITCROSS info@it-cross.com

 

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