Co-op Group puts Oracle HCM Cloud at the centre of its HR-driven business transformation

Cloud solution is replacing a "highly customised" E-Business Suite

The Co-operative Group spilled the beans on its ongoing Oracle HCM Cloud deployment this week, describing an ambitious project designed to bring enhanced HR functions to a wide range of business areas.

Speaking to Computing at Oracle's OpenWorld 2016 conference in San Francisco, head of IT at the Co-operative Group Simon Locke said he inherited the project when he joined the company in 2015 - just in time for the tendering process.

"[Oracle HCM Cloud] matched up functionally to the business. It was as good as anything from that perspective," said Locke.

The Co-op, which was already using a highly customised version of Oracle E-Business Suite, eventually chose Oracle HMC Cloud over alternatives from SAP and Workday.

Being an existing Oracle user meant cost was a significant factor in the decision, said Locke.

"We could strike a good deal in that space," he said, "and of course Oracle were keen to get large customers onto the product too, so we felt we got a good deal out of it."

One of the main reasons for moving to the cloud was the realisation that the firm's existing E-Business Suite would eventually need upgrading and that this would be a daunting "mega project", said Locke. The Oracle E-Business Suite is due to be retired by July 2017.

Rolling out

After selecting HCM Cloud in May 2015, Locke brought in IBM to oversee a phased implementation.

Recruitment and performance management went live with HCM Cloud in March 2016 while HR payroll and compensation are due to go live between January and April next year.

Before the March rollout the Co-op had no performance management capabilities at all, while its recruitment systems only offered "basic functionality".

The HCM Cloud HR module will play a big part in the Co-op's ongoing business transformation project, which it has dubbed "Back to Being Co-op". This initiative aims to return the company to its "traditional values", and will include a logo change and a new staff training programme.

Co-op Group puts Oracle HCM Cloud at the centre of its HR-driven business transformation

Cloud solution is replacing a "highly customised" E-Business Suite

Locke said the company opted for a phased rollout rather than a big bang approach because of the "fragmented" state of its on-premise systems, which, he said, reflects the huge diversity of the business, which employs 70,000 staff in operations ranging from supermarkets and funeral services to legal services, insurance and travel.

The sheer variety of businesses has posed a real challenge, Locke said.

"It's been one of our major challenges. If you imagine, in a food store, until recently they didn't have any Wi-Fi - that's a challenge, the infrastructure and the bandwidth is very different.

"In terms of the technology in the store, there might be a PC there, but it may not have access for everybody, so we've got to look at the mobile solutions that are out there to understand exactly how to implement them. We're still working that out with the business areas. One of the lessons learned so far is around business change, and ensuring we work much more closely with the business areas to allow them to pull a product as opposed to us trying to push it out as a centralised IT or HR implementation."

So does the Co-op plan to extend its Oracle cloud footprint to other areas? Locke said he doesn't believe the Co-op will ever be in a position to become cloud-only or a "fully Oracle organisation".

"I can certainly see advantages with going with a single vendor," he said, "but also disadvantages around that. I think we'd want to keep our options open for the time being.

"We're working with quite a few vendors at the moment."