oracle e-business suite 12: the upgrade-versus … · the upgrade-versus-reimplement decision...

Oracle E-Business Suite 12:The Upgrade-Versus-Reimplement Decision

Thursday, September 23, 201012:00 PM

Moscone West L2, Room 2018Session ID: S316483

Helene Abrams Founder and CEO – eprentise, LLCSkip Straus Account Executive – eprentise, LLC

www.eprentise.com 2

Agenda

E-Business Suite Trends and Drivers Definitions and Decision Factors

Upgrade

Reimplement

Factors that Contribute to The Total Cost of Ownership (TCO) of Oracle E-Business Suite

Upgrade Considerations and Getting to R12 Reducing the Total Cost of Ownership of EBS

and Leveraging R12

( Software + Upgrade ) vs. Reimplement

Scenario Analysis

10 Reasons to Choose Upgrade Instead of Reimplement

www.eprentise.com 3

eprentise Transformation

The transition from 11i to R12 is a high-stakes major initiative for any E-Business Suite (EBS) customer. Companies plan the transition for approximately a year, then set budgets, line up resources, and do the work over one to two years. Projects may cost in the range of several million dollars to tens of millions, and are often proportional to the size and complexity of the business.

The Game Has Changed.E-Business Suite 11i customers can upgrade instead of reimplement, shorten the time-to-value, at a lower cost, and provide a better R12 result for both the Business and IT.

www.eprentise.com 4

Oracle E-Business Suite Customer Trends

Create a single, global chart of accounts

Reorganize entities, sets of books, and operating units.

Consolidate multiple EBS instances

Resolve duplicates and standardizedata.

Eliminate customizations

Add new modulesor functionality

and … Plan or ExecuteTransition From 11i to R12

www.eprentise.com 5

Drivers

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 ofOwnership (TCO) of EBS.

Exploit new R12 functionality. Establish a single source

of truth.

www.eprentise.com 6

Definitions

Upgrade Upgrade 11i

instance All setup

configurations All data

Has been the preferred path to new EBS releases

Reimplement Set up and implement

brand new R12 instance

Migrate and load existing data (history)

Re-position legacy 11i instance(s)

Many experts now advising this path

www.eprentise.com 7

Decision Factors – 11i to R12

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 R12 goal

Upgrading is better, if you can

www.eprentise.com 8

Upgrade Considerations: Factors that Contribute to theTotal Cost of Ownership of Oracle E-Business SuiteProblem Results inMultiple Instances • Infrastructure Costs

• Resources• Customizations, Interfaces, Application

Integration• Support, Maintenance, Upgrades

Data Quality • Ongoing Transformations for Analytics• Customer, Supplier, Employee Inconsistencies• Governance

Multiple Charts of Accounts

• Complexity to Reconcile• Statutory and Regulatory Compliance • Long Close Cycle

Lack of Common Business Processes

• Training• Lack of Visibility• Redundant Processes

www.eprentise.com 9

Upgrade Considerations: What Needs to Change?

1. Fundamental Configuration Setups

2. Legal Entity, Set of Books, Calendar, and Operating Unit structures

3. Org Units structure

4. Number of E-Business Suite Instances

5. Chart of Accounts Structure (COA)

6. Number of COAs

7. Business Processes

8. Data cleanliness and standards

9. Customizations and enhancements

10. Obsolete data

11. Business Intelligence environment

www.eprentise.com 10

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

USDEURGBPAUD

PHPUSD

BND

TWDUSD

MYR

CNYUSD

INRUSD

GBPEURUSDSGDCADAUDHKDCHFDKKJPY

MOP

HKD

USD

SGDUSD

LKR

NOKNZDSEK

RUB

USD

MXN

USD

CADUSD

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

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Canada

Sri LankaMaldives

SingaporePhilippines

Macau

UK

UK

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US

CanadaComerica

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

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Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg

GPS US

201301401

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

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Seg Bk


Reducing Costs – Data Quality

Jobs & Positions

Configuration

Field Label

Security

Report Content

Configuration

Constraints

Different but same DFF

Same but different DFF

Missing DFF Target

Missing DFF Source

Instance 1

Dir. Of Apps

July 9, 2010

Labor

Hierarchical

Report A

Bi-monthly

300 Hrs

XYZ

XA-01

1-2-3

Instance 2

Fin. Systems

10-07-09

Labour

No Security

Report A

Two-week

199.99 Hrs

Xyz-1

XA-01

RBMet

adat

a A

naly

sis

Consolidation

ConsolidatedInstance

Fin. Systems

10-07-09

Labour

No Security

Report A

Two-week

199.99 Hrs

Xyz-1

XA-01, XA-02

1-2-3

RB


Reducing Costs – Common Business Processes

Operating a Shared Services Center

Reduced Headcount

Improved Services

Measure Against Best Practices Benchmarks


Leveraging R12 to Reduce Costs Common Accounting Engine Subledger Accounting (SLA) Multi-Org Access Control (MOAC) Provides the ability to manage

customers and suppliers across operating units without changing responsibilities Users can be assigned to multiple

operating units Processes and transactions can

span operating units Increases efficiency of operating a

shared service center Streamlined access, processing, and

reporting Provides the ability to negotiate

with suppliers and leverage purchasing power

Ledgers and Ledger Sets

Define create accounting rules and events A single transaction will update multiple

ledgers according to rules Widely applicable to foreign subsidiaries,

compliance with multiple regulations (IFRS, US GAAP)

Streamlines close process, ensures consistent financial reporting


Getting to R12: Transformation plus Oracle Upgrade

eprentiseTransformation

11iUpgradable

Oracle 11i R12 Upgrade R12

11i DataTransformed

R12 DataTransformed &

R12 formats

11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups

11i Data

• Instance you always wished for, AND it’s upgradable.

• Use it as long as you want, until you need the valued-added R12 features.

11i Data

• Business process changes• Business structure changes, incl. OUs• COA changes• Clean data, compliant with standards• Shared service centers• Instance consolidation

Upgrade enables R12 Features• Centralized accounting architecture• Global tax engine • New ledger and ledger

set architecture • Multi-org access control features • Centralized banking model • Advanced global intercompany

system

No data loss No data loss

Upgrade = eprentise Transformation + Oracle Upgrade

• Single Global Instance• Lowest future cost

structure• Highest business value

Path from one or more EBS 11i instances to a single global R12 instance


11iUpgradable


11i DataTransformed


R12 formats

11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups

11i Data

• Instance you always wished for, AND it’s upgradable.

• Use it as long as you want, until you need the valued-added R12 features.

11i Data

• Business process changes• Business structure changes, incl. OUs• COA changes• Clean data, compliant with standards• Shared service centers• Instance consolidation

Upgrade enables R12 Features• Centralized accounting architecture• Global tax engine • New ledger and ledger

set architecture • Multi-org access control features • Centralized banking model • Advanced global intercompany

system

No data loss No data loss

Upgrade = eprentise Transformation + Oracle Upgrade

• Single Global Instance• Lowest future cost

structure• Highest business value

Path from one or more EBS 11i instances to a single global R12 instance


Getting to R12: Reimplementation plus Data Migration

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


11iUpgradable


11i 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: Transform plus Upgrade


No Reimplementation. Retain All History. EBS 1 EBS 2

1.B Reorganization

EBS 1COA w/ Obsolete

COA

EBS 2COA w/non-std calendar

1.A ChangeCOA

EBS 1COA w/ Global

COA

EBS 2COA w/ Global

calendar

2.Consolidation

EBS 1 GlobalGlobal COA and

calendar

3. R12 Upgrade EBS 1 Global

R12

11.5.10

11.5.10

11.5.10

11.5.10

11.5.10

1. Change EBS 1’s COA so both instances have new standard global COA.

2. Change EBS 2’s calendar so both have global calendar.

3. Consolidate the two 11i instances. Capture the business process benefits.

4. Upgrade to R12, one instance only. Capture the Ledger, Ledger Set, and Subledger Accounting benefits.

R1211.5.10

Getting to R12: Example Scenario


10 Reasons to Choose Upgrade

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.


You Don’t Have to Reimplement

Reasons That Customers Used To Think That Reimplementing Was The Only Option

Condition Removed by (Software +

Upgrade)?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.


Questions?

www.eprentise.com

Thank You!Helene Abrams eprentise, LLC [email protected]

Skip Straus eprentise, LLC [email protected]

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

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