The critical role of cloud transformation in federal agencies

In today's digital-first era, federal agencies must harness the power of cloud-based technology to drive enhanced performance and operational effectiveness. Government leaders are increasingly recognizing the need to take on cloud transformation to modernize operations and effectively deliver on their missions. Cloud transformation offers a comprehensive solution that optimizes supply chain management, finance operations and organizational efficiency.

The challenges, benefits, implementation best practices and risks associated with a federal agency’s cloud transformation journey are explored below.

What technological challenges are federal agencies facing today that impact organizational performance?

One of the most significant challenges is the continued reliance on manual processes, often completed offline, in homegrown systems and managed via Excel. These processes are not only time-consuming and tedious but also prone to errors that can hinder operational efficiency. This reliance on repetitive, mundane, manual processes lowers the motivation and enthusiasm of the workforce and sub-optimizes the productivity of the staff performing these lower value-added tasks.

Another challenge is the lack of access to accurate and reporting capabilities. Without timely insights, decision-makers are often left in the dark, making it difficult to support critical day-to-day decisions.

What are the key benefits of cloud transformation for federal agencies?

Migrating to cloud-based systems across supply chain and finance operations can help federal agencies achieve greater efficiency, cost savings and operation excellence.

Supply chain:

• Real-time inventory tracking provides agencies with instant visibility into stock levels and locations at any moment, allowing them to respond quickly to supply needs and avoid operational disruptions.
• Mobile inventory management ensures seamless receiving, putaway, consumption and counting from any location.
• A modern self-service procurement platform further streamlines purchasing activities for both employees and buyers, simplifying processes and reducing administrative burdens.

Finance operations

• Automated invoice processing and approval reduce the manual workload, minimize errors and accelerate payment cycles, leading to more efficient financial management.
• Integrated financial planning capabilities support accurate budget and forecast financials, workforce needs and capital assets, ensuring resources are strategically allocated.
• Automated financial reporting packages delivered directly to stakeholders' inboxes provide real-time insights into financial health, empowering decision-makers with timely and actionable information.

Why is cloud transformation critical for federal agencies?

Cloud transformation is essential for federal agencies due to its ability to drive ongoing innovation and cost savings while connecting critical processes. With cloud platforms, agencies benefit from continuous innovation through quarterly updates that introduce new functionalities to enhance business processes, allowing them to stay ahead without the need for disruptive system upgrades. Additionally, cloud transformation reduces IT overhead and eliminates the need for maintaining legacy hardware, leading to significant cost savings.

Cloud solutions integrate workflows across finance, supply chain and other departments, making processes more efficient and eliminating manual, time-consuming tasks. By leveraging cloud-enabled tools like workflow automation, user workbenches and real-time notifications, agencies can boost productivity, streamline operations and ensure tasks flow seamlessly across departments without unnecessary delays or redundant reporting.

What is the best practice approach to designing and implementing cloud transformation?

1. Define clear strategic objectives, pain points and key performance indicators (KPIs): By understanding the goals and challenges, agencies can create a focused approach that will guide their cloud transformation efforts.
2. Build a well-structured roadmap: This road map should align with business priorities, and consider licensing expiration dates, recurring business cycles, resource availability and competing initiatives to ensure a well-timed implementation.
3. Define the scope of the transformation: Agencies must identify which capabilities are critical, helping streamline the process and reduce complexity.
4. Assign sufficient resources: Implementing a new system can require significant time and effort from key personnel. It is vital to ensure that the right project team resources are selected, given the authority to make decisions and that their regular duties are backfilled to avoid disruptions to day-to-day operations.
5. Begin data cleanup early: Poor data quality can cause significant delays during implementation. Before migrating to a cloud system, data must be cleansed to avoid delays and disruptions to the implementation timeline, ensuring a smoother transition.
6. Prioritize change management: Long-time system users may find it difficult to adapt to a new cloud system, becoming resistant to change. Developing a robust change management program that includes comprehensive training and clear communication helps employees feel comfortable and excited about the new system.

How can Baker Tilly support your cloud transformation?

Baker Tilly’s Oracle Cloud practice understands the complexities of cloud transformation in the federal sector. There is no one-size-fits-all approach to transformations; however, there are efficiencies to be gained by harnessing the experience and lessons learned of the collective federal sector to tackle law and federal policies applicable to many federal entities. Baker Tilly’s FedStart methodology infuses industry best practice, as well as accelerated design for Federal requirements, to allow us to focus on your unique challenges during implementation.

Explore Baker Tilly’s Recon program, where you can work with our federal experts to discover the benefits of Oracle Cloud Federal Financials. Gain hands-on experience, test critical functionality at your own pace and prepare for your cloud applications journey. With a low-cost, low-risk approach, Baker Tilly’s Recon program helps you explore how cloud applications can meet your requirements and transform your business processes.