PeopleSoft HCM 9.2 is here and sure enough it brings quite a bit of excitement to the user community. Though this excitement will start to normalize in a few years as PeopleSoft will get onto a quick agile update/upgrade path and users will see new versions coming out every year, but for now let’s bask in its glory. Like every other release, customers have already started engaging consulting firms to assess the all-important question: upgrade or not to upgrade. We all understand upgrades as often and as soon is the best practice but we all know there is a possibility of impact with every upgrade (do your risk/return evaluation) and there is only limited amount of investment and unlimited amount of pending work (do your cost/benefit analysis). Here are my thoughts on it:
If you are on version 8.3 or below, I am not sure what you are doing to survive but you should stop worrying about the investment and start worrying about the value loss and integration and compliance risk. In short just not evaluate but execute. PeopleSoft 9.2 will be a complete reimplementation but it will be one that will provide latest set of integration and analytical tools. It provides whole suite of integrated talent management products that will considerably reduce total cost of ownership and move HR from administrating to strategizing. With its user configurable tools and reporting, it will reduce the IT spending and customizations.
Now if you are 9 or below (but above 8.3) then you have some work to do. Major additional functionality for you will be either in terms or tools or talent management suite. If you have already spent considerable amount of time and money to customize your talent management suite and you are either equal, above or not substantial below the value that PeopleSoft 9.2 provides then a tools only upgrade might be a good value addition. If you are in need of the talent management suite (eCompensation, eProfiles, eDevelopment etc etc) then you should give upgrade a serious consideration.
Now if you are on 9.1 then it gets more complicated. Why you ask because you have more choices. So if your implementation is sufficiently meeting your business process needs then waiting and giving other high priority items a “go” is probably good. If you are happy with your 9.1 implementation overall except talent management then you can implement just 9.2 talent management and integrate using talent link. This will give you a two fold approach to get what is required now and then evaluate further the core. On the other hand if you are happy with your 9.1 implementation with minimum customizations (in all three cases you should be happy) then you should evaluate the low cost strategy to move to 9.2 and latest tool version. Upgrade will provide you will some additional functionality and keep you current for next best thing.
Again, upgrading to the current version is the best practice but deriving the right value from your IT investment should be the primary goal of a CIO.
