Oracle E-Business Suite 12: The Upgrade-Versus-Reimplement Decision Thursday, September 23, 2010 12:00 PM Moscone West L2, Room 2018 Session ID: S316483 Helene Abrams Founder and CEO – eprentise, LLC Skip Straus Account Executive – eprentise, LLC
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
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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.
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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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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
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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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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
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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
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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
911912913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106105103107
022
960
961
962
963
001
005002
Hong Kong
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
952
953
954
955
956
957
958
959
006
106105103107
022
960
961
962
963
001
005002
021
023
911912913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106105103107
022
960
961
962
963
001
005002
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
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
951952
953
954
955
956
957958959
006
106
105
103
107
022
960961962963
001
005002
GPN Book BalSegBalSeg
201301401
US SOB
205
565
570
801
802
803
525
575
585
505
804
915
545
851
DLX
RUS
EUR
MZO
Seg Bk
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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
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Reducing Costs – Common Business Processes
Operating a Shared Services Center
Reduced Headcount
Improved Services
Measure Against Best Practices Benchmarks
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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
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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
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
www.eprentise.com 15
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
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: Transform plus Upgrade
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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
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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.
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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.
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Thank You!Helene Abrams eprentise, LLC [email protected]
Skip Straus eprentise, LLC [email protected]
- One World, One System, A Single Source of Truth -