A Roadmap to R12: Does Anyone Know the Way?11i to New R12 due to straight data migration into an R12...

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A Roadmap to R12:Does Anyone Know the Way?

Helene AbramsCEO

[email protected]

Session 8913

The Reimplement vs. Upgrade Decision

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Agenda Introduction 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

2Copyright © 2011 eprentise. All rights reserved.

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Introduction eprentise

Established in 2006 Transformation software for E-Business Suite Helene Abrams, CEO

Who we serve Large and middle-market US-based and international customers from both

private and public sectors

What we do Provide software that assists companies looking to upgrade to R12,

particularly companies that need to re-structure their business to change configurations, consolidate instances, separate data, or address other significant organizational changes they have experienced since originally implementing EBS.

Copyright © 2011 eprentise. All rights reserved.3

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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


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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


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A Fork in the Road - DefinitionsUpgrade 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 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.


Has been the preferred path to new EBS releases Many experts now advising this path

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Why Experts are Recommending Reimplementation Elimination of customizations

Difficult to change underlying structures Chart of Accounts, calendar, currency

Business Group, Ledger, Legal Entity, OU structure

Desire to consolidate multiple EBS instances

Early instability of Oracle upgrade process


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Reimplementation – Not Always a Good Choice 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


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Calculating the Cost of a ReimplementationReimplementation 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 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 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 60One 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 180One month, 3 functional resources per business cycle

Production Go Live Cutover 45 3 resources 15 daysTotal Person Days 1455 $1,164,000.00 Duration approximately 14 months


Example for a single instance

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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 Phase 3 72,000

Example for a single instance

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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


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New Route: Remodeling an 11i Instance Change Chart of Accounts

Change Calendar, Currency

Restructure Business Group, Sets of Books, Legal Entities, Operating Units

Consolidate Instances


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Pros and Cons of the Two ApproachesTraditional Migration Approach

(Reimplementation)Remodeling Approach(software + 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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Pros and Cons, ContinuedTraditional Migration Approach – Cons Remodeling Approach – Pros

Requires technical knowledge of all tables and usage in the E-Business Suite.

Repeatable results, reusable as requirements change. As requirements change, only need to add/change rules, a step that is usually done by a functional user on a specially designed user interface in the software In a very short time.

APIs do not exist for all tables. There is a risk of compromising the data integrity by extracting and loading data incorrectly. Oracle Support not available.

All data integrity is maintained because the code is automatically generated.

History is generally not converted. Generally a sunset instance is required for reporting, reconciliation, business intelligence, and audits. Every time the sunset instance is accessed, data must be transformed to align with the R12 instance.

All history is converted so there is no need to maintain a sunset instance for reporting, reconciliation, etc. All the data is complete and consistent.

Need to configure R12 instance No need to configure R12 instance

Scripts are written for the current state of the data. Any changes require re-writing of the scripts.

Full documentation of existing instance including comparison of instances

12-24 months duration 3-8 months duration


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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 E-Business Suite Instances

Chart of Accounts Structure (COA)

Number of COAs

Business Processes

Data cleanliness and standards

Customizations and enhancements

Obsolete data

Business Intelligence environment


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Reducing Costs and Complexity

Taiwan

Malaysia

China

India

UK

Russia

DolEx US

DloEx Mexico

DolEx Guatemala

Eurofil

Muzo

Hong Kong

Maldives

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Canada

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USDEURGBPAUD

PHPUSD

BND

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MOP

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NOKNZDSEK

RUB

USD

MXN

USD

CADUSD

GTQ

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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

NAm USD

AsiaPac USD

NAm CAD

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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

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Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg

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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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Getting to R12: Remodeling + Oracle Upgrade


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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

Getting to R12: Reimplementation + Migration

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


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 Consolidation Scenario withDifferent Versions of EBS

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10 Reasons to Choose Upgrade1. 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.


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You Don’t Have to ReimplementReasons 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.


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QUESTIONS?


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Thank You!Helene Abrams eprentise [email protected]

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


A Roadmap to R12: Does Anyone Know the Way?11i to New R12 due to straight data migration into an R12...

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