Going to Release 12? Upgrading Is Faster, Better and ... · PDF fileBetter and Cheaper than...
Transcript of 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
© 2013 eprentise. All rights reserved.
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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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What are the Choices?
From Oracle Consulting R12 Upgrade Guidance, 2011
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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
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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Singapore
TaiwanChinaIndia
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 LankaMaldives
SingaporePhilippines
Macau
UK
UK
UK
UK
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
GPS US
GPS CAD
021
023
911912913
025
401
201
301
024
027
028
029
030
031
951
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953
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Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg
GPS US
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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
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570
804
802
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801
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565
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GPN Book BalSegBalSeg
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US SOB
205
565
570
801
802
803
525
575
585
505
804
915
545
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DLX
RUS
EUR
MZO
Seg Bk
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© 2013 eprentise. All rights reserved.
Getting to R12 by Upgrading/Remodeling
6-10 Month Project for “Simple” New Instance
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© 2013 eprentise. All rights reserved.
11iNot
Upgradable
11i DataCustomer Extract
& TransformSelected 11i Data
11i Data History [partial?]
Customer Load 11i Data History
11iNot
Upgradable
11i DataCustomer Extract
& TransformSelected 11i Data
11i Data History [partial?]
Customer Load 11i Data History
11iNot
Upgradable
Implement NewE-Business Suite
R12 FreshImplementation
11iHistory
Restricted Access
11i Data• Read-Only• History
11iHistory
Restricted Access
11i Data• Read-Only• History
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
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
11iNot
Upgradable
11i DataCustomer Extract
& TransformSelected 11i Data
11i Data History [partial?]
Customer Load 11i Data History
11iNot
Upgradable
11i DataCustomer Extract
& TransformSelected 11i Data
11i Data History [partial?]
Customer Load 11i Data History
11iNot
Upgradable
Implement NewE-Business Suite
R12 FreshImplementation
11iHistory
Restricted Access
11i Data• Read-Only• History
11iHistory
Restricted Access
11i Data• Read-Only• History
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
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
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
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
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
For comparison: Remodeling plus Upgrade
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Getting to R12 by Reimplementing
12-18 Month Project for “Simple” New Instance
© 2013 eprentise. All rights reserved.
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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© 2013 eprentise. All rights reserved.
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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© 2013 eprentise. All rights reserved.
Thank You!
- One World, One System, A Single Source of Truth -
Helene Abrams, CEO www.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
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