Going to Release 12? Upgrading Is Faster, Better and ... · PDF fileBetter and Cheaper than...

© 2013 eprentise. All rights reserved.

Helene Abrams, CEO

eprentise [email protected]

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


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http://www.linkedin.com/groups/EBS-Answers-4683349/about



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.

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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

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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 Helene Abrams, CEO

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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

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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

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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

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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

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© 2013 eprentise. All rights reserved. | 10

What are the Choices?

From Oracle Consulting R12 Upgrade Guidance, 2011


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

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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

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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

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• 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

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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

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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

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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

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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

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Reducing Costs and Complexity

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Malaysia

China

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Russia

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DolEx Guatemala

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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

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NAm CAD

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GPS GBP

GPS BND

GPS MYR

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GPS TWD

GPS CNY

GPS CHF

GPS DKK

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GPS NOK

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GPS SEK

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Getting to R12 by Upgrading/Remodeling

6-10 Month Project for “Simple” New Instance

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11iNot

Upgradable

11i DataCustomer Extract

& TransformSelected 11i Data

11i Data History [partial?]

Customer Load 11i Data History

11iNot

Upgradable





11iNot

Upgradable

Implement NewE-Business Suite

R12 FreshImplementation

11iHistory

Restricted Access

11i Data• Read-Only• History

11iHistory

Restricted Access


R1211i Data

R12 Data• Seeded • Configured

R12 Data• Seeded • Configured• History [partial]

Customer Extract & Transform

Selected 11i Data11i Data History

[partial?] Customer Load 11i Data History

Via Public API & Interface

Tables

Custom SQL & DB Utilities

11iHistory

Restricted Access


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

11iNot

Upgradable





11iNot

Upgradable





11iNot

Upgradable

Implement NewE-Business Suite

R12 FreshImplementation

11iHistory

Restricted Access


11iHistory

Restricted Access


R1211i Data

R12 Data• Seeded • Configured

R12 Data• Seeded • Configured• History [partial]

Customer Extract & Transform

Selected 11i Data11i Data History

[partial?] Customer Load 11i Data History

Via Public API & Interface

Tables

Custom SQL & DB Utilities

11iHistory

Restricted Access


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

eprentiseTransformation

11iUpgradable

Oracle 11i R12 Upgrade R12

11i DataTransformed

R12 DataTransformed &

R12 formats

11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups

11i Data11i Data No data loss No data loss


11iUpgradable


11i DataTransformed


R12 formats

11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups



11iUpgradable


11i DataTransformed


R12 formats

11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups


For comparison: Remodeling plus Upgrade

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Getting to R12 by Reimplementing

12-18 Month Project for “Simple” New Instance


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

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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

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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

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Questions?

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Thank You!

- One World, One System, A Single Source of Truth -

Helene Abrams, CEO www.eprentise.com

[email protected]

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

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Going to Release 12? Upgrading Is Faster, Better and ... · PDF fileBetter and Cheaper than...

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