Going to Oracle EBS Release 12? Upgrading Is Faster, Better and Cheaper than Reimplementing

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Many organizations think they cannot upgrade to Oracle E-Business Suite (EBS) Release 12 because of existing setups or obsolete structures and configurations. Not true. They ARE able to change existing 11i Oracle EBS setups to meet new requirements, while preserving all history. An upgrade has a lower cost than a reimplementation, and they can change their configurations to streamline their business processes in R12.

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  • Thank you for joining today’s presentation entitledGoing to Release 12? Upgrading Is Faster, Better and Cheaper than Reimplementing. I’m Julissa Gonzalez with eprentise marketing and communications.Before we get started, I want to review a few housekeeping items and let you know how you can participate in today’s web event. We’re looking at an example of the GoToWebinar Attendee Interface, which is made up of two parts. There is a Control Panel at the right. Within that Control Panel is how you can participate in today’s event, so let’s look at that.By clicking the orange arrow, you can open and close your Control Panel.From the View Menu you can also set the Control Panel not to auto-hide when inactive if you prefer to keep it always open. The Audio pane provides audio information. By default you have joined the Webinar via Mic & Speakers. Click Audio Setup to select your computer speaker or headset devices.If you prefer, you can join the audio via telephone by selecting Use Telephone, and the dial-in information will be displayed, including an Audio PIN.During the presentation, you have the ability to send questions to our Webinar staff through the Questions pane. Simply type in your question and click send. At the end of the presentation we will do a Q&A session to answer as many questions as we have time for. We will also post all of the questions and answers on our new LinekdIn group, EBS Answers, within 2 weeks. We invite you to join this interactive group to see the Q&A, ask follow up questions or even provide your own answers, comments or discussions. The link to that group page was in your webinar invitation email and will also be included in your follow up email. We will be presenting polling questions during the session. If you would like to receive CPE credit for today’s webinar, you must respond to all the polling questions. The CPE certificate will be emailed to you within 2 weeks.As a final reminder, today’s Webinar is being recorded, and everyone will receive an email with a link to view a recording of today’s event.
  • There are some common trends that we are seeing with EBS customers. Many of our customers want to reduce the complexity in their EBS environment and streamline their processes so that they can have the agility to change as their business changes. Statutory and regulatory considerations along with the roll-out of IFRS accounting standards mean that there has to be traceability and transparency across the entire organization. For many, this means creating a single global chart of accounts, consolidating multiple E-Business Suite Instances, put standard operating procedures in place and eliminating the silos of information that were controlled regionally. Moving to R12 provides an incentive to make the changes.
  • The bottom line that is driving many of the changes is a need to reduce operating costs, whether by centralizing data centers or operating a shared service center, or changing terms among common suppliers and customers. R12 with Multiple Organization Access Control and other R12 features enable many cost-saving initiatives. Having a single source of truth that is complete, consistent, and correct was the original goal when Oracle Applications were first implemented. Companies have already made a huge investment in their Oracle Applications. Now, many view R12 as a way to capitalize on their original investment.
  • So, the big question now is how to get from here to there. There are two choices – an upgrade, or a reimplementation. An upgrade means that you apply patches to your current, existing environment to move from R11 to R12. A reimplementation means that you install a clean R12 version of Oracle E-Business Suite, configure all set-up parameters, and then move your existing data into the new instance. But wait, it’s not as easy as that.An R12 Upgrade is when a current 11.5.x Oracle EBS Customer wants to ‘upgrade’ theircurrent Production instance(s) (Both configurations & data) to an R12 Release• The Upgrade always includes an Application upgrade (R11i to R12)• The Upgrade sometimes includes a Database upgrade – this depends upon theCustomer’s current database version• Oracle Development has released ‘Upgrade Scripts’ which are run against the R11iInstance. These scripts perform the following:• Move R11i configurations & data to R12 tables / fields, where applicable• Populate new R12 tables / fields, where applicable (Example: SLA tables)6 Copyright © 2011, Oracle and/or its affiliates. All rightsreserved.• After the Upgrade, the instance contains the following:• All R11i data within the old R11i tables• New R12 tables / fields populated with configurations & data, where applicable• Latest R11i CEMLI code, prior to the upgrade• Latest R11i Patch sets, prior to the upgrade (includes Localizations & installed Languages)• There are both Pre & Post Upgrade Tasks that are required to be performed in order tohave a functioning instance. These will be discussed in detail within this presentation.
  • Going to Oracle EBS Release 12? Upgrading Is Faster, Better and Cheaper than Reimplementing

    1. 1. Helene Abrams, CEOeprentisehabrams@eprentise.comGoing to Release 12? Upgrading Is Faster,Better and Cheaper than Reimplementing
    2. 2. Webinar Mechanics Open and close your panel. View, select, and test your audio. Submit text questions. Raise your hand. Q&A addressed at the end of the session.Answers will be posted within two weeks on ournew LinkedIn Group, EBS Answers:http://www.linkedin.com/groups/EBS-Answers-4683349/about Everyone will receive an email within 24 hourswith a link to view a recorded version of today‟ssession. Polling questions will be presented during thesession. If you want CPE credit for this webinar,you must answer all of the polling questions.
    3. 3. Learning ObjectivesObjective 1: Identify the pros and cons of a traditionalmigration approach and the remodeling approach.Objective 2: List the items that require change considerationduring the upgrade process.Objective 3: Identify ten reasons to choose upgrade overreimplementation for your transition to E-Business SuiteRelease 12.
    4. 4. AgendaIntroductionOracle ® E-Business Suite (EBS) Trends and DriversDefinitions and Decision Factors Upgrade Reimplement Factors that Contribute to The Total Cost of Ownership (TCO) of EBSUpgrade Considerations and Getting to R12 Reducing the TCO of EBS and Leveraging R12 Upgrading vs. Reimplementing Scenario Analysis10 Reasons to Upgrade Instead of Reimplement
    5. 5. eprentise Can… …So Our Customers Can:Consolidate Multiple EBS InstancesChange Underlying Structures andConfigurations Chart of Accounts, Other Flexfields Inventory Organizations Operating Groups, LegalEntities, Ledgers Calendars Costing MethodsResolve Duplicates, ChangeSequences, IDsSeparate DataIntroduction: Finished but not Done: Transformation Software for E-Business SuiteReduce Operating Costs and IncreaseEfficiencies Shared Services Data CentersAdapt to Change Align with New Business Initiatives Mergers, Acquisitions, Divestitures Pattern-Based Strategies• Make ERP an AdaptiveTechnologyAvoid a ReimplementationReduce Complexity and Control RiskImprove Business Continuity, ServiceQuality and ComplianceEstablish Data Quality Standards and aSingle Source of TruthCompany Overview: Established 2006 l Helene Abrams, CEO
    6. 6. Create a single, global chart of accountsReorganize entities, sets of books and operating unitsConsolidate multiple EBS instancesResolve duplicates and standardize dataEliminate customizationsAdd new modules or functionalityand … plan or executetransition from 11i to R12EBS Customer Trends
    7. 7. Establish common business processes and standardsProduce standard reportsOperate a shared service center or a centralized data centerRationalize suppliers, customers, productsReduce Total Cost of Ownership (TCO) of EBSExploit new R12 functionalityEstablish a single source of truthDrivers
    8. 8. Upgrade Path Oracle supplied scripts„convert‟ data from currentOracle Applications release toR12 Supported tools, utilities, anddocumentation used Entire data and applicationavailable after upgrade Clear, straightforward, provenmethodReimplementation Path :New Implementation Configure a new instance Write scripts to extract datafrom existing instance,transform it to newconfiguration parameters, writescripts to load into new R12instance Generally bring over a year‟sworth of data and maintain“old” instance for historyA Fork in the Road - Definitions
    9. 9. Why Some Consultants Recommend ReimplementationElimination of customizationsDesire to consolidate multiple EBSinstancesEarly instability of Oracle upgradeprocessDifficult to change underlyingstructures Chart of accounts, calendar, currency Business group, ledger, legal entity, OUstructureOracle – Planning Your Oracle E-Business Suite Upgrade, 2012 OpenWorld
    10. 10. What are the Choices?From Oracle Consulting R12 Upgrade Guidance, 2011
    11. 11. Long project duration Generally 1-2 yearsResource Intensive Technical resources to write extract scripts, transformation code, andload scripts Technical resources to unit test the code Functional resources to make all new configuration decisions,understand the new functionality of R12Can cost upwards of $20,000,000 for a global companyBut… Reimplementation is Not Always aGood Choice
    12. 12. The Cost of a ReimplementationReimplementation TasksTo Implement orReimplement(person days)Cost based on $800/day AssumptionsConfiguration of New Instance 603 Business Cycles (purchase-to-pay, order-to-cash, hire-to-retire),One month,2 functional resources per business cycleCreate Extract Scripts 240 2 technical resources, 2 months per business cycleCreate Transformation Code 180 3 technical resources, 1 month per business cycleCreate Load Scripts 240 2 technical resources, 2 months per business cycleUnit Test Scripts/Code 180 3 technical resources, 1 month per business cycleResolve Exceptions 90 3 technical resources, .5 month per business cycleImplementation Conference RoomPilot I60 One month,2 functional resources per business cycleChanges for Conference RoomPilot I30 One month,.5 functional resource per business cycleIntegration Testing 60 One month, 2 functional resources per business cycleImplementation Conference RoomPilot II60 One month, 2 functional resources per business cycleChanges for Conference RoomPilot II30 One month,.5 functional resource per business cycleUAT 180 One month, 3 functional resources per business cycleProduction Go Live Cutover 45 3 resources 15 daysTotal Person Days 1455 $1,164,000.00 Duration approximately 14 monthsExample for a single instance
    13. 13. The Cost of an UpgradePhase 3 - Technical Upgrade to R12Duration(workdays)Total Tech& Func StaffNeeded forPhaseFunctionalDaysTechnicalDaysFunctionalCostTechnicalCostStaffResourceCostTechnical Upgrade Instance:11.5.10 to R1220 5 30 60 24,000 48,000 72,000Subtotal - Resource Costs 72,000Example for a single instance
    14. 14. • Reimplement – what do you do with:• Existing business history data in the 11i instance(s)?• Legacy instance(s) after R12 go-live?• Decision Factors• Each has widely accepted goals for the result in R12• 11i environment may already align with the R12 target• 11i factor may be upgraded easily• Some conditions cannot be changed with the Oracle upgrade softwareby itself• Non-issues if you implement R12 – because you are not changing the11i environment• Ideas from Oracle‟s R12: Upgrade vs. Reimplement (Financials)• Evaluate conditions; see what complicates achieving the target goal• Upgrading is better, if you canDecision Factors – 11i to R12
    15. 15. Change chart of accountsChange calendar, currencyRestructure business group,sets of books, legal entities,operating unitsConsolidate instancesYou end up with just what youneed to changeNew Route: Remodeling an 11i Instance
    16. 16. Pros and ConsTraditional Migration Approach(Reimplementation)Remodeling Approach(Upgrade)Pros Cons Pros ConsCommon approach,oftenrecommended byconsultingorganizations.No standard extract/transformscripts. Very similar to a customdevelopment project requiring amore formal development andtesting methodology includingdocumentation, error handling,and development standards.Shorter project duration withfewer resources translates tolower costs. Project can easilybe completed in 3-8months That means that thesavings of a single instance areavailable sooner.Not widely understoodamong Oracleprofessionals. Customerneeds strong sponsor.No need toupgrade Current 11ito New R12 due tostraight datamigration into anR12 instance.More risk in extract, transform, andload (ETL) that will not besupported by Oracle.Only testing that is required isfunctional testing.For consolidation, instancesneed to be at the sameversion/patch level
    17. 17. Traditional New Implementation/Migration Approach – Cons Remodeling+ Upgrade Approach – ProsOracle does not support creation of custom extract, transform, and loadscripts.Oracle Support not compromised.History is not fully converted. Generally a historical entity is required forreporting, reconciliation, business intelligence, and audits. Every time thehistorical operating unit is accessed, data must be transformed to align withthe migrated structure.All history is converted so there is no need to reference andmaintain historical structures for reporting, reconciliation,etc. All the data is complete, consistent, and available within in asingle operating unit.APIs do not exist for all tables. There is a risk of compromising the dataintegrity by extracting and loading data incorrectly.All data integrity is maintained because the code is automaticallygenerated.More risk in extract, transform, and load (ETL). Scripts are written for thecurrent state of the data. Any changes require re-writing of the scripts.Change control process may not be documented. It is easy for a developerto perform a quick fix without documenting it or determining the impact ofthe change.Only testing that is required is functional testing.Full audit trail of changes made.No standard extract/transform scripts. Very similar to a customdevelopment project requiring a more formal development and testingmethodology including documentation, error handling, and developmentstandards.Shorter project duration with fewer resources translates to lowercosts. Project can easily be completed in less than 8 months.Requires technical expertise of all tables and usage in the E-Business Suite.Developers who are not experienced in a particular type of migration or thebusiness processes generally do not understand the complexity of the datastructures in EBS.Repeatable results, reusable as requirements change. Asrequirements change, only need to add/change rules.Migration and Upgrade: Pros and Cons
    18. 18. Upgrade Considerations: What Needs toChange? Fundamental configurationsetups Legal entity, set of books,calendar, and operatingunit structures Org units structure Number of EBS instances Chart of accounts structure(COA) Number of COAs Business processes Data cleanliness andstandards Customizations andenhancements Obsolete data Business Intelligence (BI)environment
    19. 19. Reducing Costsand ComplexityTaiwanMalaysiaChinaIndiaUKRussiaDolEx USDloEx MexicoDolEx GuatemalaEurofilMuzoHong KongMaldivesSingaporeSri LankaPhilippinesBruneiUSCanadaMacauUSDEURGBPAUDPHPUSDBNDTWDUSDMYRCNYUSDINRUSDGBPEURUSDSGDCADAUDHKDCHFDKKJPYMOPHKDUSDSGDUSDLKRNOKNZDSEKRUBUSDMXNUSDCADUSDGTQEURCZKAsiaPac LKRAsiaPac AUDAsiaPac EURAsiaPac GBPAsiaPac BNDAsiaPac PHPAsiaPac MYRAsiaPac INRAsiaPac TWDAsiaPac CNYEurope GBPEurope EUREurope USDEurope SGDEurope CADEurope AUDEurope HKDEurope CHFEurope DKKEurope JPYEurope NOKEurope NZDEurope SEKGPN RUSAsiaPac MOPAsiaPac HKDAsiaPac SGDDOLEX USDOLEX MXDOLEX GTGPN EURGPN MZONAm USDAsiaPac USDNAm CAD021023911912913025401201301024027028029030031951952953954955956957958959006106105103107022960961962963001005002Hong KongSingaporeTaiwanChinaIndiaSri LankaSri LankaSri LankaSri LankaBruneiPhilippinesMalaysiaIndiaTaiwanChinaUKUKUKUKUKUKUKUKUKCanadaSri LankaMaldivesSingaporePhilippinesMacauUKUKUKUKUSCanadaComericaGPS LKRGPS AUDGPS EURGPS GBPGPS BNDGPS MYRGPS INRGPS TWDGPS CNYGPS CHFGPS DKKGPS JPYGPS NOKGPS NZDGPS SEKGPS MOPGPS HKDGPS SGDGPS USGPS CAD021023911912913025401201301024027028029030031951952953954955956957958959006106105103107022960961962963001005002021023911912913025401201301024027028029030031951952953954955956957958959006106105103107022960961962963001005002Location CCY Op Unit BalSegLocation GPS Book BalSegBalSegGPSUS201301401Bk SegGPN SRLGPN BRUGPN PHIGPN MLSGPN INDGPN TWNGPN CHNUK SOBGPN MACGPN HKGPN SNGUS SOBCAN SOB525575585505570804802803801915565545851205021023911912913025024027028029030031951952953954955956957958959006106105103107022960961962963001005002GPN Book BalSegBalSeg201301401USSOB205565570801802803525575585505804915545851DLXRUSEURMZOSeg Bk
    20. 20. Getting to R12 by Upgrading/Remodeling6-10MonthProject for“Simple”NewInstance
    21. 21. 11iNotUpgradable11i DataCustomer Extract& TransformSelected 11i Data11i Data History[partial?]Customer Load11i Data History11iNotUpgradable11i DataCustomer Extract& TransformSelected 11i Data11i Data History[partial?]Customer Load11i Data History11iNotUpgradableImplement NewE-Business SuiteR12 FreshImplementation11iHistoryRestrictedAccess11i Data• Read-Only• History11iHistoryRestrictedAccess11i Data• Read-Only• HistoryR1211i DataR12 Data• Seeded• ConfiguredR12 Data• Seeded• Configured• History [partial]Customer Extract& TransformSelected 11i Data11i Data History[partial?]Customer Load11i Data HistoryVia Public API& InterfaceTablesCustom SQL &DB Utilities11iHistoryRestrictedAccess11i Data• Read-Only• HistoryClone R12 empty instance before history loadCreate “sunset” instance – read-only restricted access• Multiple instances, one active• Historical data spans both,but different formatsReimplementation = Customer Implementation+ Data MigrationPath from multiple EBS 11i instances to a singleglobal R12 instance plus multiple legacy instances11iNotUpgradable11i DataCustomer Extract& TransformSelected 11i Data11i Data History[partial?]Customer Load11i Data History11iNotUpgradable11i DataCustomer Extract& TransformSelected 11i Data11i Data History[partial?]Customer Load11i Data History11iNotUpgradableImplement NewE-Business SuiteR12 FreshImplementation11iHistoryRestrictedAccess11i Data• Read-Only• History11iHistoryRestrictedAccess11i Data• Read-Only• HistoryR1211i DataR12 Data• Seeded• ConfiguredR12 Data• Seeded• Configured• History [partial]Customer Extract& TransformSelected 11i Data11i Data History[partial?]Customer Load11i Data HistoryVia Public API& InterfaceTablesCustom SQL &DB Utilities11iHistoryRestrictedAccess11i Data• Read-Only• HistoryClone R12 empty instance before history loadCreate “sunset” instance – read-only restricted access• Multiple instances, one active• Historical data spans both,but different formatsReimplementation = Customer Implementation+ Data MigrationPath from multiple EBS 11i instances to a singleglobal R12 instance plus multiple legacy instanceseprentiseTransformation11iUpgradableOracle 11i R12 UpgradeR1211i DataTransformedR12 DataTransformed &R12 formats11iObsoleteSetups11i Data11iObsoleteSetups11iObsoleteSetups11i Data11i Data No data loss No data losseprentiseTransformation11iUpgradableOracle 11i R12 UpgradeR1211i DataTransformedR12 DataTransformed &R12 formats11iObsoleteSetups11i Data11iObsoleteSetups11iObsoleteSetups11i Data11i Data No data loss No data losseprentiseTransformation11iUpgradableOracle 11i R12 UpgradeR1211i DataTransformedR12 DataTransformed &R12 formats11iObsoleteSetups11i Data11iObsoleteSetups11iObsoleteSetups11i Data11i Data No data loss No data lossFor comparison: Remodeling plus UpgradeGetting to R12 by Reimplementing12-18MonthProject for“Simple”NewInstance
    22. 22. But I‟ve Already Started with a NewImplementation…What Do I Do?EBS 1R11.5.10EBS 2R12.1.31. R12TechnicalUpgrade2. ConsolidateConsolidatedR12.1.33. Remodel• Single Instance• All History• Gaps Resolved• CustomizationPortfolioExaminedRemodeledR12.1.3• Like Operations Together• Single COA• Single Calendar• Take Advantage of R12Functionality• Complete, Consistent andCorrect Data
    23. 23. Reasons That Customers Used To Think That ReimplementingWas The Only OptionCondition Removed byRemodeling ApproachCorrect or update prior 11i setups “that are not easily changed” Multiple instances Obsolete non-global COAWant global COAMultiple COAs and want a single one or fewer COAs Multiple different business processes. Want to realize benefits ofstandard global business processesData is inconsistent or dirtyData administration standards have not been enforcedMany customizations and enhancements You Don‟t Have to Reimplement
    24. 24. 1. Reduced schedule andtechnical risk2. You can change your chartof accounts3. You test new EBS setups infamiliar 11i4. Transaction data will bechanged, too5. Your history matters6. Avoid custom dataconversion7. True single instance for pastand future data8. Avoid multiple customconversions and legacyinstances9. Upgrade offers the mostdirect path and shortesttime to single instance R12business value10. Upgrades cost less10 Reasons to Upgrade
    25. 25. Questions?
    26. 26. Thank You!- One World, One System, A Single Source of Truth -Helene Abrams, CEOwww.eprentise.comhabrams@eprentise.comAnswers from this session will be posted within two weeks on our new LinkedInGroup, EBS Answers: http://www.linkedin.com/groups/EBS-Answers-4683349/about

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