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. Watch the webinar recording: https://vimeo.com/68803958 Website: www.eprentise.com Twitter: @eprentise Google+: https://plus.google.com/u/0/+Eprentise/posts Facebook: https://www.facebook.com/eprentise
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Going to Oracle EBS Release 12? Upgrading Is Faster, Better and Cheaper than Reimplementing
- 1. Helene Abrams, CEO eprentise habrams@eprentise.com Going to Release 12? Upgrading Is Faster, Better and Cheaper than Reimplementing
- 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 our new LinkedIn Group, EBS Answers: http://www.linkedin.com/groups/EBS-Answers- 4683349/about Everyone will receive an email within 24 hours with a link to view a recorded version of today‟s session. Polling questions will be presented during the session. If you want CPE credit for this webinar, you must answer all of the polling questions.
- 3. Learning Objectives Objective 1: Identify the pros and cons of a traditional migration approach and the remodeling approach. Objective 2: List the items that require change consideration during the upgrade process. Objective 3: Identify ten reasons to choose upgrade over reimplementation for your transition to E-Business Suite Release 12.
- 4. Agenda Introduction Oracle ® E-Business Suite (EBS) Trends and Drivers Definitions and Decision Factors Upgrade Reimplement Factors that Contribute to The Total Cost of Ownership (TCO) of EBS Upgrade Considerations and Getting to R12 Reducing the TCO of EBS and Leveraging R12 Upgrading vs. Reimplementing Scenario Analysis 10 Reasons to Upgrade Instead of Reimplement
- 5. eprentise Can… …So Our Customers Can: Consolidate Multiple EBS Instances Change Underlying Structures and Configurations Chart of Accounts, Other Flexfields Inventory Organizations Operating Groups, Legal Entities, Ledgers Calendars Costing Methods Resolve Duplicates, Change Sequences, IDs Separate Data Introduction: Finished but not Done : Transformation Software for E-Business Suite Reduce Operating Costs and Increase Efficiencies Shared Services Data Centers Adapt to Change Align with New Business Initiatives Mergers, Acquisitions, Divestitures Pattern-Based Strategies • Make ERP an Adaptive Technology Avoid a Reimplementation Reduce Complexity and Control Risk Improve Business Continuity, Service Quality and Compliance Establish Data Quality Standards and a Single Source of Truth Company Overview: Established 2006 l Helene Abrams, CEO
- 6. Create a single, global chart of accounts Reorganize entities, sets of books and operating units Consolidate multiple EBS instances Resolve duplicates and standardize data Eliminate customizations Add new modules or functionality and … plan or execute transition from 11i to R12 EBS Customer Trends
- 7. Establish common business processes and standards Produce standard reports Operate a shared service center or a centralized data center Rationalize suppliers, customers, products Reduce Total Cost of Ownership (TCO) of EBS Exploit new R12 functionality Establish a single source of truth Drivers
- 8. Upgrade Path Oracle supplied scripts „convert‟ data from current Oracle Applications release to R12 Supported tools, utilities, and documentation used Entire data and application available after upgrade Clear, straightforward, proven method Reimplementation Path : New Implementation Configure a new instance Write scripts to extract data from existing instance, transform it to new configuration parameters, write scripts to load into new R12 instance Generally bring over a year‟s worth of data and maintain “old” instance for history A Fork in the Road - Definitions
- 9. Why Some Consultants Recommend Reimplementation Elimination of customizations Desire to consolidate multiple EBS instances Early instability of Oracle upgrade process Difficult to change underlying structures Chart of accounts, calendar, currency Business group, ledger, legal entity, OU structure Oracle – Planning Your Oracle E-Business Suite Upgrade, 2012 OpenWorld
- 10. What are the Choices? From Oracle Consulting R12 Upgrade Guidance, 2011
- 11. Long project duration Generally 1-2 years Resource Intensive Technical resources to write extract scripts, transformation code, and load scripts Technical resources to unit test the code Functional resources to make all new configuration decisions, understand the new functionality of R12 Can cost upwards of $20,000,000 for a global company But… Reimplementation is Not Always a Good Choice
- 12. The Cost of a Reimplementation Reimplementation Tasks To Implement or Reimplement (person days) Cost based on $800/day Assumptions Configuration of New Instance 60 3 Business Cycles (purchase-to-pay, order-to-cash, hire-to-retire), One month,2 functional resources per business cycle Create Extract Scripts 240 2 technical resources, 2 months per business cycle Create Transformation Code 180 3 technical resources, 1 month per business cycle Create Load Scripts 240 2 technical resources, 2 months per business cycle Unit Test Scripts/Code 180 3 technical resources, 1 month per business cycle Resolve Exceptions 90 3 technical resources, .5 month per business cycle Implementation Conference Room Pilot I 60 One month,2 functional resources per business cycle Changes for Conference Room Pilot I 30 One month,.5 functional resource per business cycle Integration Testing 60 One month, 2 functional resources per business cycle Implementation Conference Room Pilot II 60 One month, 2 functional resources per business cycle Changes for Conference Room Pilot II 30 One month,.5 functional resource per business cycle UAT 180 One month, 3 functional resources per business cycle Production Go Live Cutover 45 3 resources 15 days Total Person Days 1455 $1,164,000.00 Duration approximately 14 months Example for a single instance
- 13. The Cost of an Upgrade Phase 3 - Technical Upgrade to R12 Duration (work days) Total Tech & Func Staff Needed for Phase Functional Days Technical Days Functional Cost Technical Cost Staff Resource Cost Technical Upgrade Instance: 11.5.10 to R12 20 5 30 60 24,000 48,000 72,000 Subtotal - Resource Costs 72,000 Example for a single instance
- 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 software by itself • Non-issues if you implement R12 – because you are not changing the 11i environment • Ideas from Oracle‟s R12: Upgrade vs. Reimplement (Financials) • Evaluate conditions; see what complicates achieving the target goal • Upgrading is better, if you can Decision Factors – 11i to R12
- 15. Change chart of accounts Change calendar, currency Restructure business group, sets of books, legal entities, operating units Consolidate instances You end up with just what you need to change New Route: Remodeling an 11i Instance
- 16. Pros and Cons Traditional Migration Approach (Reimplementation) Remodeling Approach (Upgrade) Pros Cons Pros Cons Common approach, often recommended by consulting organizations. No standard extract/transform scripts. Very similar to a custom development project requiring a more formal development and testing methodology including documentation, error handling, and development standards. Shorter project duration with fewer resources translates to lower costs. Project can easily be completed in 3-8 months That means that the savings of a single instance are available sooner. Not widely understood among Oracle professionals. Customer needs strong sponsor. No need to upgrade Current 11i to New R12 due to straight data migration into an R12 instance. More risk in extract, transform, and load (ETL) that will not be supported by Oracle. Only testing that is required is functional testing. For consolidation, instances need to be at the same version/patch level
- 17. Traditional New Implementation/Migration Approach – Cons Remodeling+ Upgrade Approach – Pros Oracle does not support creation of custom extract, transform, and load scripts. Oracle Support not compromised. History is not fully converted. Generally a historical entity is required for reporting, reconciliation, business intelligence, and audits. Every time the historical operating unit is accessed, data must be transformed to align with the migrated structure. All history is converted so there is no need to reference and maintain historical structures for reporting, reconciliation, etc. All the data is complete, consistent, and available within in a single operating unit. APIs do not exist for all tables. There is a risk of compromising the data integrity by extracting and loading data incorrectly. All data integrity is maintained because the code is automatically generated. More risk in extract, transform, and load (ETL). Scripts are written for the current state of the data. Any changes require re-writing of the scripts. Change control process may not be documented. It is easy for a developer to perform a quick fix without documenting it or determining the impact of the change. Only testing that is required is functional testing. Full audit trail of changes made. No standard extract/transform scripts. Very similar to a custom development project requiring a more formal development and testing methodology including documentation, error handling, and development standards. Shorter project duration with fewer resources translates to lower costs. 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 the business processes generally do not understand the complexity of the data structures in EBS. Repeatable results, reusable as requirements change. As requirements change, only need to add/change rules. Migration and Upgrade: Pros and Cons
- 18. Upgrade Considerations: What Needs to Change? Fundamental configuration setups Legal entity, set of books, calendar, and operating unit structures Org units structure Number of EBS instances Chart of accounts structure (COA) Number of COAs Business processes Data cleanliness and standards Customizations and enhancements Obsolete data Business Intelligence (BI) environment
- 19. Reducing Costs and Complexity Taiwan Malaysia China India UK Russia DolEx US DloEx Mexico DolEx Guatemala Eurofil Muzo Hong Kong Maldives Singapore Sri Lanka Philippines Brunei US Canada Macau USD EUR GBP AUD PHP USD BND TWD USD MYR CNY USD INR USD GBP EUR USD SGD CAD AUD HKD CHF DKK JPY MOP HKD USD SGD USD LKR NOK NZD SEK RUB USD MXN USD CAD USD GTQ EUR CZK AsiaPac LKR AsiaPac AUD AsiaPac EUR AsiaPac GBP AsiaPac BND AsiaPac PHP AsiaPac MYR AsiaPac INR AsiaPac TWD AsiaPac CNY Europe GBP Europe EUR Europe USD Europe SGD Europe CAD Europe AUD Europe HKD Europe CHF Europe DKK Europe JPY Europe NOK Europe NZD Europe SEK GPN RUS AsiaPac MOP AsiaPac HKD AsiaPac SGD DOLEX US DOLEX MX DOLEX GT GPN EUR GPN MZO NAm USD AsiaPac USD NAm CAD 021 023 911 912 913 025 401 201 301 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 Hong Kong Singapore Taiwan China India Sri Lanka Sri Lanka Sri Lanka Sri Lanka Brunei Philippines Malaysia India Taiwan China UK UK UK UK UK UK UK UK UK Canada Sri Lanka Maldives Singapore Philippines Macau UK UK UK UK US Canada Comerica GPS LKR GPS AUD GPS EUR GPS GBP GPS BND GPS MYR GPS INR GPS TWD GPS CNY GPS CHF GPS DKK GPS JPY GPS NOK GPS NZD GPS SEK GPS MOP GPS HKD GPS SGD GPS US GPS CAD 021 023 911 912 913 025 401 201 301 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 021 023 911 912 913 025 401 201 301 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg GPS US 201 301 401 Bk Seg GPN SRL GPN BRU GPN PHI GPN MLS GPN IND GPN TWN GPN CHN UK SOB GPN MAC GPN HK GPN SNG US SOB CAN SOB 525 575 585 505 570 804 802 803 801 915 565 545 851 205 021 023 911 912 913 025 024 027 028 029 030 031 951 952 953 954 955 956 957 958 959 006 106 105 103 107 022 960 961 962 963 001 005 002 GPN Book BalSegBalSeg 201 301 401 US SOB 205 565 570 801 802 803 525 575 585 505 804 915 545 851 DLX RUS EUR MZO Seg Bk
- 20. Getting to R12 by Upgrading/Remodeling 6-10 Month Project for “Simple” New Instance
- 21. 11i Not Upgradable 11i Data Customer Extract & Transform Selected 11i Data 11i Data History [partial?] Customer Load 11i Data History 11i Not Upgradable 11i Data Customer Extract & Transform Selected 11i Data 11i Data History [partial?] Customer Load 11i Data History 11i Not Upgradable Implement New E-Business Suite R12 Fresh Implementation 11i History Restricted Access 11i Data • Read-Only • History 11i History Restricted Access 11i Data • Read-Only • History R1211i Data R12 Data • Seeded • Configured R12 Data • Seeded • Configured • History [partial] Customer Extract & Transform Selected 11i Data 11i Data History [partial?] Customer Load 11i Data History Via Public API & Interface Tables Custom SQL & DB Utilities 11i History Restricted Access 11i Data • Read-Only • History Clone R12 empty instance before history load Create “sunset” instance – read-only restricted access • Multiple instances, one active • Historical data spans both, but different formats Reimplementation = Customer Implementation + Data Migration Path from multiple EBS 11i instances to a single global R12 instance plus multiple legacy instances 11i Not Upgradable 11i Data Customer Extract & Transform Selected 11i Data 11i Data History [partial?] Customer Load 11i Data History 11i Not Upgradable 11i Data Customer Extract & Transform Selected 11i Data 11i Data History [partial?] Customer Load 11i Data History 11i Not Upgradable Implement New E-Business Suite R12 Fresh Implementation 11i History Restricted Access 11i Data • Read-Only • History 11i History Restricted Access 11i Data • Read-Only • History R1211i Data R12 Data • Seeded • Configured R12 Data • Seeded • Configured • History [partial] Customer Extract & Transform Selected 11i Data 11i Data History [partial?] Customer Load 11i Data History Via Public API & Interface Tables Custom SQL & DB Utilities 11i History Restricted Access 11i Data • Read-Only • History Clone R12 empty instance before history load Create “sunset” instance – read-only restricted access • Multiple instances, one active • Historical data spans both, but different formats Reimplementation = Customer Implementation + Data Migration Path from multiple EBS 11i instances to a single global R12 instance plus multiple legacy instances eprentise Transformation 11i Upgradable Oracle 11i R12 Upgrade R12 11i Data Transformed R12 Data Transformed & R12 formats 11i Obsolete Setups 11i Data 11i Obsolete Setups 11i Obsolete Setups 11i Data 11i Data No data loss No data loss eprentise Transformation 11i Upgradable Oracle 11i R12 Upgrade R12 11i Data Transformed R12 Data Transformed & R12 formats 11i Obsolete Setups 11i Data 11i Obsolete Setups 11i Obsolete Setups 11i Data 11i Data No data loss No data loss eprentise Transformation 11i Upgradable Oracle 11i R12 Upgrade R12 11i Data Transformed R12 Data Transformed & R12 formats 11i Obsolete Setups 11i Data 11i Obsolete Setups 11i Obsolete Setups 11i Data 11i Data No data loss No data loss For comparison: Remodeling plus Upgrade Getting to R12 by Reimplementing 12-18 Month Project for “Simple” New Instance
- 22. But I‟ve Already Started with a New Implementation…What Do I Do? EBS 1 R11.5.10 EBS 2 R12.1.3 1. R12 Technical Upgrade 2. Consolidate Consolidated R12.1.3 3. Remodel • Single Instance • All History • Gaps Resolved • Customization Portfolio Examined Remodeled R12.1.3 • Like Operations Together • Single COA • Single Calendar • Take Advantage of R12 Functionality • Complete, Consistent and Correct Data
- 23. Reasons That Customers Used To Think That Reimplementing Was The Only Option Condition Removed by Remodeling Approach Correct or update prior 11i setups “that are not easily changed” Multiple instances Obsolete non-global COA Want global COA Multiple COAs and want a single one or fewer COAs Multiple different business processes. Want to realize benefits of standard global business processes Data is inconsistent or dirty Data administration standards have not been enforced Many customizations and enhancements You Don‟t Have to Reimplement
- 24. 1. Reduced schedule and technical risk 2. You can change your chart of accounts 3. You test new EBS setups in familiar 11i 4. Transaction data will be changed, too 5. Your history matters 6. Avoid custom data conversion 7. True single instance for past and future data 8. Avoid multiple custom conversions and legacy instances 9. Upgrade offers the most direct path and shortest time to single instance R12 business value 10. Upgrades cost less 10 Reasons to Upgrade
- 25. Questions?
- 26. Thank You! - One World, One System, A Single Source of Truth - Helene Abrams, CEO www.eprentise.com habrams@eprentise.com Answers from this session will be posted within two weeks on our new LinkedIn Group, EBS Answers: http://www.linkedin.com/groups/EBS-Answers-4683349/about
Editor's Notes
- 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.