going to release 12? upgrading is faster, better and ... · better and cheaper than reimplementing...
TRANSCRIPT
© 2016 eprentise. All rights reserved.
Helene Abrams, CEO
eprentise
Going to Release 12? Upgrading Is Faster,
Better and Cheaper than Reimplementing
© 2016 eprentise. All rights reserved.
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 l 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
USD
EUR
GBP
AUD
PHP
USD
BND
TWD
USD
MYR
CNY
USD
INR
USD
GBP
EUR
USD
SGD
CAD
AUD
HKD
CHF
DKK
JPY
MOP
HKD
USD
SGD
USD
LKR
NOK
NZD
SEK
RUB
USD
MXN
USD
CAD
USD
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
911
912
913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
Hong Kong
Singapore
Taiwan
China
India
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 Lanka
Maldives
Singapore
Philippines
Macau
UK
UK
UK
UK
US
Canada
Comerica
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
911
912
913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
021
023
911
912
913
025
401
201
301
024
027
028
029
030
031
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
Location CCY Op Unit BalSegLocation GPS Book BalSegBalSeg
GPS
US
201
301
401
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
951
952
953
954
955
956
957
958
959
006
106
105
103
107
022
960
961
962
963
001
005
002
GPN Book BalSegBalSeg
201
301
401
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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© 2016 eprentise. All rights reserved.
Getting to R12 by Upgrading/Remodeling
6-10
Month
Project for
“Simple”
New
Instance
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© 2016 eprentise. All rights reserved.
11i
Not
Upgradable
11i Data
Customer Extract
& Transform
Selected 11i Data
11i Data History
[partial?]
Customer Load
11i Data History
11i
Not
Upgradable
11i Data
Customer Extract
& Transform
Selected 11i Data
11i Data History
[partial?]
Customer Load
11i Data History
11i
Not
Upgradable
Implement New
E-Business SuiteR12 Fresh
Implementation
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 Data
11i Data History
[partial?]
Customer Load
11i Data HistoryVia 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
11i
Not
Upgradable
11i Data
Customer Extract
& Transform
Selected 11i Data
11i Data History
[partial?]
Customer Load
11i Data History
11i
Not
Upgradable
11i Data
Customer Extract
& Transform
Selected 11i Data
11i Data History
[partial?]
Customer Load
11i Data History
11i
Not
Upgradable
Implement New
E-Business SuiteR12 Fresh
Implementation
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 Data
11i Data History
[partial?]
Customer Load
11i Data HistoryVia 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
eprentise
Transformation
11i
Upgradable
Oracle 11i
R12 UpgradeR12
11i DataTransformed
R12 DataTransformed &
R12 formats
11i
Obsolete
Setups
11i Data
11i
Obsolete
Setups
11i
Obsolete
Setups
11i Data11i Data No data loss No data loss
eprentise
Transformation
11i
Upgradable
Oracle 11i
R12 UpgradeR12
11i DataTransformed
R12 DataTransformed &
R12 formats
11i
Obsolete
Setups
11i Data
11i
Obsolete
Setups
11i
Obsolete
Setups
11i Data11i Data No data loss No data loss
eprentise
Transformation
11i
Upgradable
Oracle 11i
R12 UpgradeR12
11i DataTransformed
R12 DataTransformed &
R12 formats
11i
Obsolete
Setups
11i Data
11i
Obsolete
Setups
11i
Obsolete
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
© 2016 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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© 2016 eprentise. All rights reserved.
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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Transformation Software Solutions
Two Product Lines:
FlexField®
Change chart of accounts in EBS
Built-in Rules
Changes data in all subledgers, Add-in for HR Cost Allocation
Retain all historical transactions
Quick, easy project, low price point
eprentise®
Transformation Software that remodels any setup data or consolidates multiple instances
Reorganizes configuration, master, and transaction data
Maintains all history resulting in a single source of truth
Based on a source that is transformed into a target
Generates rules and code to resolve conflicts
Metadata Analysis and intelligent knowledge repository
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