Difference Between Oracle HCM and Oracle Fusion HCM

Oracle HCM (Human Capital Management) and Oracle Fusion HCM (Oracle Fusion Human Capital Management) are related, but they represent different generations of Oracle’s HR and talent management solutions. Here are the key differences between Oracle HCM and Oracle Fusion HCM:

1. Product Lineage:

   • Oracle HCM: Oracle HCM includes a suite of HR applications that have been available for many years. This product line includes Oracle E-Business Suite HCM and PeopleSoft HCM, which have been in use by organizations for an extended period.

   • Oracle Fusion HCM: Oracle Fusion HCM is part of Oracle’s Fusion Applications, which were introduced as a new generation of cloud-based business applications. Fusion HCM was designed from the ground up as a cloud-native solution, and it’s a more recent offering compared to Oracle HCM.

2. Deployment Model:

   • Oracle HCM: The traditional Oracle HCM applications, such as E-Business Suite HCM and PeopleSoft HCM, are typically deployed on-premises, although some organizations may also host them in private clouds.

   • Oracle Fusion HCM: Oracle Fusion HCM is a cloud-based solution and is available as a Software as a Service (SaaS) offering. It is designed to be accessed and managed entirely in the cloud.

3. Architecture and Technology:

   • Oracle HCM: Traditional Oracle HCM applications often use older technology stacks and architectures that may require more IT resources for maintenance and upgrades.

   • Oracle Fusion HCM: Oracle Fusion HCM is built on modern, cloud-native architecture, offering benefits such as scalability, automatic updates, and easier integration with other cloud services.

4. User Interface and User Experience:

   • Oracle HCM: Older Oracle HCM applications may have less intuitive user interfaces and may require more training for users.

   • Oracle Fusion HCM: Fusion HCM is known for its modern and user-friendly interface, designed to enhance the user experience and simplify navigation.

5. Functionality and Features:

   • Oracle HCM: Traditional Oracle HCM applications provide robust HR and payroll functionalities but may have limited capabilities for analytics, social collaboration, and other modern HR features.

   • Oracle Fusion HCM: Fusion HCM offers a broader range of features, including advanced analytics, social capabilities, mobile access, and a more comprehensive talent management suite.

6. Updates and Maintenance:

   • Oracle HCM: Updates and maintenance for on-premises Oracle HCM applications are typically managed by the organization’s IT team and may involve significant effort.

   • Oracle Fusion HCM: Fusion HCM is a SaaS solution, and Oracle manages updates and maintenance, ensuring that customers always have access to the latest features and security enhancements.

7. Cost and Licensing:

   • Oracle HCM: Costs for traditional Oracle HCM applications may include licensing fees, hardware, and IT staff for maintenance.

   • Oracle Fusion HCM: Fusion HCM typically involves a subscription-based pricing model, where customers pay for the services they use on a per-user basis.

Both Oracle HCM and Oracle Fusion HCM have their own strengths and may be suitable for different organizations based on their requirements, existing IT infrastructure, and preferences. The choice between the two depends on factors such as deployment preferences, budget, and desired functionality.