a roadmap to r12: does anyone know the way? - · pdf filea roadmap to r12: does anyone know...

A Roadmap to R12:Does Anyone Know the Way?

Oracle Apps Reimplement VS Upgrade

www.eprentise.com

Satish TiwariSr. Vice President –Sakeesoft Pvt. Ltd.

Vice President Development [email protected]

Learning Objectives

After completion of this program you will be able to:

§ Objective 1: Identify the pros and cons of a traditional migration approach and the remodeling approach.

Objective 2: List the items that require change

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§ 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.

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-

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§ 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

3Copyright © 2011 eprentise. All rights reserved.

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

What We Provide Why? So customers can:§ Reduce operating costs and increase efficiencies

§ Shared Services

§ Data Centers

§ Adapt to change

§ Alignment with new business initiatives

§ Mergers, Acquisitions, Divestitures

§ Transformation Softwarefor E-Business Suite that:

§ Consolidates multiple EBS instances

§ Changes underlying structures, configurations

§ Chart of Accounts, Other Flexfields


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§ Mergers, Acquisitions, Divestitures

§ Pattern-Based Strategies

§ Making 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

§ Chart of Accounts, Other Flexfields

§ Inventory Organizations

§ Operating Groups, Legal Entities, Ledgers

§ Calendars

§ Resolves duplicates, changes sequences, IDs

§ Separates data

§ Divestiture

§ Testing Subsets

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

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§ Eliminate customizations

§ Add new modulesor functionality

and … Plan or ExecuteTransition From 11i to R12


Drivers§ Establish common business processes and standards

§ Produce standard reports

§ Operate a shared service center or acentralized data center

§ Rationalize suppliers,customers, products

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§ Reduce Total Cost ofOwnership (TCO) of EBS

§ Exploit new R12 functionality§ Establish a single source

of truth


Why R12?

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Source:Metalink support –Extended support note

Upgrade path


Source:oracle open world/stevenChan

A Fork in the Road - DefinitionsUpgrade Path

§ Oracle supplied scripts ‘convert’ data from current Oracle Applications release to R12.

§ Supported tools, utilities, and

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

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§ Supported tools, utilities, and documentation used

§ Entire data and application available after upgrade

§ Clear, straightforward, proven method

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

Why Experts are Recommending Reimplementation

§ Elimination of customizations

§ Difficult to change underlying structures

§ Chart of Accounts, calendar, currency

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§ 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

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§ 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 Reimplementation

Reimplementation Tasks

To Implement or

Reimplement (person days)

Cost based on $/Rs---/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 cycle

Example for a single instance

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Resolve 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 $........................Duration approximately 14 months


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instance

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


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Subtotal - Resource Costs Phase 3

Example for a single instance

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

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§ 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


New Route: Remodeling an 11i Instance

§ Change Chart of Accounts

§ Change Calendar, Currency

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

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§ 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

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

Not widely understood among Oracle professionals. Customer needs strong sponsor.

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methodology including documentation, error handling, and development standards.

the savings of a single instance are available sooner.

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


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 All history is converted so there is no need to maintain a

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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


Upgrade Considerations: What Needs to Change?

§ Fundamental Configuration Setups

§ Legal Entity, Set of Books, Calendar, and Operating Unit structures

§ Number of COAs

§ Business Processes

§ Data cleanliness and standards

§ Customizations and

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§ Org Units structure

§ Number of E-Business Suite Instances

§ Chart of Accounts Structure (COA)

§ Customizations and enhancements

§ Obsolete data

§ Business Intelligence environment


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Getting to R12: Remodeling + Oracle Upgrade


11iNot

Upgradable

11i DataCustomer Extract

& TransformSelected 11i Data

11i Data History [partial?]

Customer Load 11i Data History

11iNot

Upgradable





11iNot

Upgradable

11iHistory

Restricted Access

11i Data• Read-Only• History

11iHistory

Restricted Access


R1211i DataCustomer Extract




Via Public API & Interface

Tables

11iHistory

Restricted Access

11i Data• Read-Only• HistoryCreate “

sunset”instance

– read-only restrict

ed access

• Multiple instances, one active• Historical data spans both, but different formats

Reimplementation = Customer Implementation + Data Migration

11iNot

Upgradable





11iNot

Upgradable





11iNot

Upgradable

11iHistory

Restricted Access


11iHistory

Restricted Access


R1211i DataCustomer Extract




Via Public API & Interface

Tables

11iHistory

Restricted Access

11i Data• Read-Only• HistoryCreate “

sunset”instance

– read-only restrict

ed access

• Multiple instances, one active• Historical data spans both, but different formats

Reimplementation = Customer Implementation + Data Migration

Getting to R12: Reimplementation + Migration

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Implement NewE-Business Suite

R12 FreshImplementation

R12 Data• Seeded • Configured

R12 Data• Seeded • Configured• History [partial]

Custom SQL & DB Utilities

Clone R12 em

pty instance b

efore history lo

ad

Path from multiple EBS 11i instances to a single global R12 instance plus multiple legacy instances

Implement NewE-Business Suite

R12 FreshImplementation

R12 Data• Seeded • Configured

R12 Data• Seeded • Configured• History [partial]

Custom SQL & DB Utilities

Clone R12 em

pty instance b

efore history lo

ad

Path from multiple EBS 11i instances to a single global R12 instance plus multiple legacy instances

eprentiseTransformation

11iUpgradable

Oracle 11i àR12 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


R12

11i DataTransformed


11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups



11iUpgradable


R12

11i DataTransformed


11iObsolete Setups

11i Data

11iObsolete Setups

11iObsolete Setups


For comparison: Remodeling plus Upgrade


EBS 1COA w/ Obsolete

COA

1.A ChangeCOA

EBS 1COA w/ Global

COA

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.

Getting to R12: Example Consolidation Scenario withDifferent Versions of EBS

No Reimplementation. Retain All History.þ EBS 1 þ EBS 2

1.B Reorganization

EBS 2COA w/non-std calendar

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

R1211.5.10


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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.

7. True single instance for past and future data.

8. Avoid multiple custom conversions and legacy instances.

9. Upgrade offers the most

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familiar 11i.

4. Transaction data will be changed, too.

5. Your history matters.

6. Avoid custom data conversion.

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.”

ü

Multiple instances. ü

Obsolete non-global COA.Want global COA.

ü

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Want global COA.

Multiple COAs and want a single one or fewer COAs. ü

Multiple different business processes. Want to realize benefits of standard global business processes.

ü

Data is inconsistent or dirty. Data administration standards have not been enforced .

ü

Many customizations and enhancements. ü*


QUESTIONS?


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Thank You!

Satish Tiwari eprentise [email protected]

www.eprentise.com

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a roadmap to r12: does anyone know the way? - · pdf filea roadmap to r12: does anyone know...

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