Reimplement is a 4-letter Word – Don’t10 Reasons to Upgrade to R12 Instead of Reimplementing

Helene Abrams - eprentise

Wednesday, April 21, 2010

4:00 PM

Reef D

Accelerating the Time for Change in E-Business Suite

2

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.

3

Agenda

E-Business Suite Trends and Drivers

Definitions and Decision Factors

eprentise

You Now Have a Choice

eprentise Software

eprentise + Upgrade vs. Reimplement

Scenario Analysis

10 Reasons to Upgrade

Business Benefits

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 standardize

data.

Eliminate customizations

Add new modules

or functionality

and … Plan or ExecuteTransition From 11i to R12

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 operating and

maintenance costs.

Exploit new R12 functionality.

Establish a single source

of truth.

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

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

8

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 (COA)

6. Number of COAs

7. Business Processes

8. Data cleanliness and standards

9. Customizations and enhancements

10. Obsolete data

11. Business Intelligence environment

9

You Now Have A Choice

eprentise Transformation plus Oracle Upgrade

Transform 11i fundamental setups, the conceptual design

Re-do annoying obsolete configurations

Transform 11i data to reflect new configurations

Consolidate instances

Oracle Upgrades newly configured, transformed, and consolidated 11i instance to R12

10

Game Changing Secret Sauce

Oracle EBS Setups “that are not easily changed”

Prevent more than the upgrade to R12

Block ongoing business flexagilityin 11i and R12

eprentise Transformation

FlexField: Change COA

Reorganization: Change “not easily changed” setups

In 11i AND R12

Consolidation: Many instances into one

Maintain EBS referential integrity – and the undocumented application-level constraints

11

Finished, But Not Done

Transformation Software for E-

Business Suite that:

Consolidates multiple EBS

instances

Changes underlying structures,

configurations

Chart of Accounts

Operating Groups, Legal Entities,

Ledgers

Calendars

Costing Methods

Resolves duplicates, changes

sequences, IDs

Separates data

Divestiture

Testing Subsets

Reduce operating costs and increase

efficiencies

Shared Services

Data Centers

Adapt to change

Pattern-Based Strategies

Making ERP an Adaptive Technology

Mergers, Acquisitions, Divestitures

Alignment with new business initiatives

Reduce complexity and control risk

Improve business continuity, service

quality, and compliance

Establish data quality standards and a

single source of truth

What We Provide Why? So customers can:

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eprentise Core Components

Metadata AnalysisAndKnowledge Repository

Rules Engine

User Interface

13

Change Chart of Accounts

14

Merge Operating Units

15

Change Calendar Period Dates

16

Consolidate Instances

17

eprentise Transformation plus Oracle Upgrade

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 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

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 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

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Reimplementation plus Data Migration

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 instanceseprentise

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: Transform plus Upgrade

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Example 11i to R12 Scenario

No Re-implementation. Retain All History EBS 1

EBS 2R1211.5.10

1.B eprentise

Reorganization

EBS 1COA w/ Obso

COA

EBS 2COA w/non-std calendar

1.A FlexFieldEBS 1COA w/ Global

COA

EBS 2COA w/ Global calendar

2. eprentise

Consolidation

EBS 1 GlobalGlobal COA and

calendar

3. R12

UpgradeEBS 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.

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10 Reasons to 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 eprentise?

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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Key Features and Business Benefits

Enforces Data Quality and Standards

Copy, Filter, Change, and Merge

Profiles and analyzes to look for changes

between source and target

Automatically generates code to

implement required changes

Complete, Consistent, and Correct

Enables Fastest and Safest Time to Value

Reduces project timelines and costs,

allowing IT executives to more efficiently

manage the project

Improves accuracy and predictability

Avoids risk and cost of R12

reimplementation

Make changes efficiently in known and stable 11i

instance, then upgrade to R12.

Permits Modeling Scenarios

Iterative approach accesses impact of

change before implementing

Allows Finance executives to quickly

see and analyze results

All-in-one solution

Thank You!

eprentise has helped many clients increase data visibility, increase data quality, and avoid re-implementing their Enterprise Resource Planning (ERP) systems.

Follow the eprentise company blog at http://www.eprentise.com/agilitybydesign/.

Contact

Helene Abramshabrams@eprentise.comwww.eprentise.com

888.943.53638815 Conroy Windermere RdSuite 302Orlando, FL 32835