Navigating the Cloud Journey with Unit 4: Are We Facing a Downgrade or an Upgrade in Innovation?

Several years ago, I led Unit4's OneVision Programme, which deployed UBW (Unit4 Business World) globally and rolled out a BPO capability for HR and finance, supporting 24 global business units. It's safe to say that during the OneVision implementation, my team and I experienced every challenge a UBS implementation would encounter.

As Unit4 customers face the hard deadline to shift from on-premise to cloud, I can understand the challenges, frustrations, and inflexion points many grapple with. On the one hand, it offers the potential for flexibility, scalability, enhanced analytics, and modernisation, suggesting it's a move that few can or should ignore.

However, for Unit4 customers, the journey to the cloud is challenging. Listening to those in my network, I frequently hear reports of performance downgrades, data migration issues, and the reality of what appears to be a complex two-stage process, which has some questioning whether the shift to the cloud represents an upgrade or an operationally challenging downgrade.

Drawing from my experience leading business and technology transformation across private equity-backed firms and large enterprises, I've seen how critical it is to align technology transitions with business objectives. The cloud journey with Unit 4 reveals several important lessons for businesses at the crossroads of innovation.

The Two-Stage Journey: A Complex Transformation

Unit4's cloud migration approach is typically framed in a two-stage journey:

1. Phase 1 - "Lift and Shift": The initial step of moving on-premise systems to the cloud.

2. Phase 2 - Cloud Optimisation: Introducing cloud-native features like automation and advanced analytics.

In practice, you can find yourself stuck between these two phases. The first stage can leave you feeling like you have traded a stable, customised, on-premise solution for a cloud platform that does not necessarily deliver on promised improvements in your business context.

The resulting, inevitable delay between migration and the realisation of the projected cloud-native platform appears to be creating frustrations within what has traditionally been a low-churn customer base.

As someone who has managed the complexity of multiple business-enabled transformation initiatives, I know that the success of an initiative depends on a clear and transparent roadmap that delivers value at each stage. Unit 4's two-phase process highlights the importance of ensuring that the first phase provides tangible improvements and business benefits rather than creating a period of disruption.

Perceived Downgrade: Loss of Flexibility and Control

A recurring theme among Unit4 customers I talk with is the perceived loss of flexibility and control. Many have spent years optimising UBW, translated they have highly customised and align with unique operational workflows. But heres the rub, post transition to cloud, many find what the transition to can fall short of delivering the same level of customisation and workflow alignment.

In my own experience leading organisations through large-scale ERP system change, I have witnessed the internal disruption caused when you trade flexibility for scalability. While cloud systems like Unit4 can promise greater agility and lower costs in the long run, the transition process can feel like a step backward for companies accustomed to high-performance, finely-tuned on-premise solutions.

When embarking on the shift from on-premise to cloud it's essential to strike a balance between maintaining the critical operational workflows while embracing the standardisation that cloud platforms offers. One thing appears clear Unit4 will need to continue evolving its cloud solutions to offer more flexibility and customisation options to address these concerns.

Data Migration and Cost Management: Hidden Pitfalls

In my own UBW experience, the complexities of data migration can never be overestimated, and for me was a significant pain point. Moving historical data and complex records in an on-premise upgrade felt like mission impossible at times with inconsistencies, errors, and even data loss being a constant challenge. The transition from on-premise to cloud will be fraught with risk and the importance of a robust migration strategy, one that ensures the integrity of business-critical data during the transition can't be overstressed.

Another not so transparent issue are hidden fees related to scaling, storage, and additional services. From my experience in advising organisations on IT strategy, you need to build a clear and transparent cost structure when planning for cloud migration, you need to guard against unwelcome cost base surprises once the system is up and running.

Navigating the Cloud Journey with Unit4: Are We Facing a Downgrade or an Upgrade in Innovation?

The challenges are clear, but there is still a strong case for embracing Unit4's cloud-first strategy but perhaps on your terms not though a mandatory deadline. The new cloud platform holds the potential for rapid scaling, future-proofing, and leveraging emerging technologies like artificial intelligence and machine learning. The second phase of Unit4's journey, which promises enhanced automation and advanced analytics, is particularly compelling for businesses looking to innovate.

From a strategic advisory perspective, I encourage organisations to focus on the long-term potential of cloud systems while balancing the immediate pain of transition. While the initial migration may not yet deliver the same performance as a finely-tuned on-premise system, the agility and scalability of cloud-based ERP systems will be crucial as businesses adapt to future challenges.

In my experience, all transformation journeys come with friction. The cloud journey for Unit4 customers may feel like a downgrade at times, but the long-term benefits of scalability, automation, and innovation far outweigh the temporary setbacks. It's a necessary evolution for organisations looking to future-proof their operations and drive growth in a rapidly changing landscape.

The ultimate question for Unit4 customers is whether they view this cloud migration as a temporary downgrade or a crucial step toward digital innovation. As companies continue to assess their cloud strategies, the key will be ensuring that the short-term pain of migration is balanced by long-term strategic gains. Only then will Unit4's cloud journey be seen not just as a transition, but as a true transformation.

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