r12 upgrade webinar-final -...
TRANSCRIPT
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 1
Agenda
Topic Page
Introductions 2
Delivering Value with Oracle E-Business Suite Release 12.1 3
Panel Discussion 15
Deloitte Point of View 20
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 2
The presenters meeting with you today…
Ognjen PavlovicVice President Oracle CorporationOracle E-Business Suite Development
Presenters
Brad GovermanPrincipalDeloitte ConsultingR12 Upgrade COE
Jeff TaylorSenior ManagerDeloitte ConsultingR12 Upgrade COE
Jeff EshelmanIS Director J. M. SmuckerR12 Program Manager
Katherine SchwertleyProgram Manager XilinxR12 UpgradeIT Program Manager
Chao-Yee WatsonProgram ManagerXilinxR12 Upgrade Business Program Manager
For additional information contact: David Maher - [email protected]
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 5
• About J.M. Smucker– Founded in 1897. First products were apple cider and apple butter– From $687M in annual sales in 2002, Smucker has grown to nearly $5B sales today– Brands include Smucker’s®, Folgers®, Jif®, Pillsbury®, Crisco®
• Business Reason to Upgrade– Provides a foundation for our Company’s future growth– Protects our systems investment by upgrading to a fully supported platform– Supports the integrity, security, reliability and access to business critical data– Aligns with Smucker’s strategic roadmap to effectively leverage business application
investments for future growth• Project overview
– Process-focused approach to endeavor to provide an effective upgrade– Complex environment with Oracle and integrated
third-party products– High focus on change management
• Currently we are– Starting month 10 of a 26-month project, concluding
Design/Validation and focusing on Build (project schedule was extended 12 months due to an acquisition)
Jeff Eshelman, Program Manager
The J. M. Smucker Company
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 6
Katherine Schwertley – IT Program ManagerChao-Yee Watson – Business Program Manager
• About Xilinx– Xilinx is the world’s leading provider of programmable platforms, with $2.4B in revenues in
fiscal year 2011 and nearly 50 percent market share.– Xilinx programmable chips are the innovation platform of choice for today’s leading companies
for the design of tens of thousands of products that improve the quality of our everyday lives.
• Business reason to upgrade– Stay on current releases of the eBusiness suite – Provide a foundation for functionality enhancements in Finance, Human Resources and
Operations areas.
• Project Overview– Upgrade from 11.5.10 to 12.1.3– Reduce custom footprint by replacing customizations with standard R12 functionality where
feasible.– Implement a limited set of high value R12 new features.
• Xilinx completed its upgrade on Nov 20, 2011, per original schedule– Upgrade completed over 3 day weekend– Shipping returned to normal volume within 2 business days– Subsequent financial closes completed on time– Experienced spike in support cases, as expected post go-live, but began trending towards
normal levels of support within 2 months of go-live
Xilinx
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 8
1. What caused you to make the decision to upgrade at this time
2. Why did you decide on R12 vs waiting for fusion
3. How did you justify, get approval and funding for the upgrade
4. Did you develop a business case for the upgrade
5. When you were considering the upgrade did you purchase any additional modules
6. Did you also upgrade hardware, infrastructure and other 3rd party products
Panel discussion
7. As part of your scope did you include any new process areas
8. What do you feel has been your biggest challenge or risk during the upgrade process and how did you deal with it
9. How much down time did you require to implement the upgrade and how did you work around business continuity issues
10. What would you have done differently if you had to do it over again.
11. What benefits have realized / anticipate realizing from the upgrade
12. What does your post upgrade roadmap look like.
Jeff EshelmanIS Director J. M. SmuckerR12 Program Manager
Chao-Yee WatsonProgram ManagerXilinxR12 Upgrade Business Program Manager
Katherine SchwertleyProgram Manager XilinxR12 Upgrade IT Program Manager
Brad GovermanPrincipalDeloitte ConsultingR12 Upgrade COE
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 10
Deloitte’s point of view is that a business focus is required for an effective R12 upgrade
1. Understand the drivers to justify upgrading to R12
2. Understand your current applications landscape
3. Identify pain points in the current state environment
4. Identify opportunities to implement functionality in R12
5. Define the scope and objectives of the upgrade
6. Develop an upgrade roadmap
Obj
ectiv
e
Rep
lace
old
IT
sys
tem
Valu
e th
roug
h ca
pabi
lity
rede
sign
Valu
e th
roug
h bu
sine
ss m
odel
ch
ange
s
Approach
Very limited process and
functional change
Focus on ERP and non-ERP
improvements while considering policies,
metrics, etc.
Focus on structural business changes
Technical upgrade/system
replacement
Upgrade enabled
transformation
Full business transformation
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 11
• There are no “written in stone” rules regarding upgrading vs. re-implementing a significant ERP system
• Considerations that must be weighed heavily as to what is the right direction for each client situation
Should I upgrade or re-implement?
Specific business criteria Upgrade Re-implementation
Are there structural changes required to configurations (e.g., chart of accounts, business groups/legal entities, etc.)
No Yes
Are there significant customizations to the data and forms in the current instance that will be redesigned or replaced by delivered R12 functionality?
No Yes
Are there significant business process re-designs (e.g., moving from a GL-centric to Projects-centric process)?
No Yes
Will there be significant changes to the underlying technical infrastructure and/or architecture (e.g., operating system or server configuration)
No Yes
Are there significant volumes of historical data that are better archived rather than retained in the production instance?
No Yes
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 12
Developing a roadmap for an R12 upgrade
Conduct upgrade workshop• Identify goals and drivers • Answer strategic questions• Identify R12 upgrade value• Start developing roadmap
Conduct upgrade assessment• Identify improvement opportunities • Define application and process scope • Define RICEW & technical scope• Confirm upgrade vs. re-implementation • Publish R12 upgrade roadmap
Execute R12 upgrade• Execute R12 upgrade roadmap• Design process enhancements• Implement new application functionality • Retrofit rationalized customizations• Upgrade applications
Step 1:Conduct R12Workshops
Step 2:Conduct R12Assessments
Step 3:Execute R12 Upgrade
Today we will discuss steps to get started developing your road map
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 13
Tax
Security & Controls
Change Management
Process and Package
Information Technology
Project Management
R12 upgrade workshop
Agenda items Work Streams
DeloitteAssessment Workshop
Assess
Pres
ent
Plan, execute, monitor, and control the project. Drive key assessment recommendations around the implementation roadmap.
Analyze business processes, comparing requirements to Oracle functionality. Identify improvement opportunities achieved by enabling those processes with solutions such as Oracle.
Analyze infrastructure requirements that are essential to future solution support. Estimate effort and risk involved in customizing the software.
Assess current approach to communications, stakeholder engagement, training, and transition. Determine steps required to address adoption/sustainability of change initiatives.
Assess the value, accessibility, and security of data and information assets. Determine tasks related to maintain appropriate security and controls.D
iscover
Approach
1. AssessGather information about
the business drivers, current pain points, usage
of applications and technical architecture
2. DiscoverDiscover new
R12 features and identify opportunities
3. ApproachAnalyze findings and
develop recommendations
4. PresentPresent high-level
executive summary
Identify and analyze enterprise's global tax strategy and related statutory/regulatory requirements. Assess impact due to upgrade.
Deloitte’s methodology leverages several components from EVD to integrate key work streams into each assessment. The approach is conducted in four sessions; Assess, Discover, Approach, and Present.
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 14
Our workshop approach is broken down into four sessions with key activities identified for each session
Discover Approach Present
Objectives
Key Activities
During the R12 upgrade approach discussion we will outline the methodology, tools, and considerations for any upgrade
During the R12 features and opportunities discussion we will discuss new features and modules
• Industry Trends and Impacts
• New Modules• Key R12 Features• Point Upgrades
• Upgrade vs. reimplementation
• Our EVD-driven R12 upgrade methodology
• Upgrade assessment tools• Lessons learned• Sample timeframes
• High Level Assessment Report
6 Hours 2 hours Post Assessment
Assess
6 Hours
During the current state discussion we will gather information about the business drivers, current pain points, usage of applications and technical architecture
• Deloitte R12 Enterprise Value Mapped to Client Environment
• Workshop Questionnaire• R12 Vision & Strategy• Understand 11i Pain Points• Current Overall Landscape• Technology Footprint• Application Maintenance
R12 upgrade workshop - details
We will wrap up the workshop by discussing the information presented, initial opinions and next steps in the form of deliverables
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 15
For additional information about Oracle EBS R12 upgrades contact
David Maher [email protected]
Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 16
Copyright © 2011 Deloitte Development LLC. All rights reserved.
About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
About This PublicationThis publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
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Delivering Value with Oracle E-Business Suite Release 12.1Ognjen PavlovicVice President, Application Development
19
EBS Product Update: Continued Releases & Innovation Ongoing Consumable Low Upgrade Cost Point Releases
12 12.1
12.1.2 12.1.3
PlannedReleased
Major Release
Minor Release
11i10 12.x
Nov. 2004
Jan. 2007
May 2009
Dec 2009
Aug2010
RUP1…RUP2…RUP3…
20
Business Objectives Enabling 12.1 Capabilities
E-Business Suite 12.1 Aligns With Business Objectives New Capabilities for Customers across E-Business Suite for 11i Customers
• Drive consistent, integrated best practices • Reduce cost of back office operations• Improve DSO and cash flow
• Centralized Finance Architecture • Expense Reporting & Imaging• Credit & Collections
CFO
• Spend Analytics & Classification• Leverage Sourcing Auctions• Run Spend against Contracts
• Understand how & where money is utilized• Achieve the best possible price for spend• Ensure spend contracts are utilized
CPO
Role
• Fast and business oriented implementation• Accelerated user adoption• Lower systems management costs
• Business Accelerators• Pre-built UPK Content • Systems Management Packs
CIO
• Develop enterprise wide HCM strategy• Improve talent acquisition effectiveness• Improve workforce retention
• Performance & Compensation • 360 Degree View of Employee• Succession Planning
VP of HR
• Manage and sense demand• Optimize manufacturing operations• Improve order accuracy & logistics efficiency
• Complete Value Chain Planning• Manufacturing Operations Center• Enhanced Warehouse Management
COO
21
Procurement
HCM
Financials
SCM
Projects
CRM
• Buyers Workbench, Sourcing, Contracts, Electronic Invoicing, iSupplier Portal
• Learning Mgmt, Performance Mgmt, Talent Profile, Incentive Compensation
• Service & Field Service
• Project Management for Asset Based Industries (Util, E&C, O&G etc.)
• Enterprise Asset Management, Warehouse Management
• Shared Services, Advanced Collections, Internet Expenses, Channel Revenue Mgmt
• Spend Analysis, Classification & Supplier Lifecycle Management
• Succession Planning, Incentive Comp Analytics/ HR Analytics
• Projects Analytics
• Value Chain Planning, Landed Cost Management, Manufacturing Execution
• Financials Accounting Hub, Federal Financial Analytics
MDM • Core Product Hub • PIM for Telco, PIM for Retail, Site Hub, Supplier Hub
Industries• Wholesale Distribution, Public Sector, High Technology , Engineering & Construction,
Life Sciences, Retail, Professional Services, Communications, Consumer Goods, Utilities
• Price Protection, Supplier Ship & Debit
Enhanced Product Areas New Products in 12/12.1
R12.1 Opportunities for CustomersEnhanced Products and New SKUs Across the E-Business Suite
22
• Evaluate the new 12.1 features in the products you are currently running– Opportunities to eliminate customizations– Greater flexibility to match the needs of your business– Opportunities for additional automation and process improvement
• Look for adjacent products that might add value– Many products are much stronger at the 12.1 level than they were
in 11i10– Adding modules is low cost since you are leveraging the
implementation work you have already done– Some customers have justified the upgrade primarily by the need
to get to the 12.1 level so they could implement additional products
Building the Business Case for UpgradingValue Proposition is in E-Business Suite R12.1 and Adjacent Products
23
Finding Additional Information on 12.1Accelerate your evaluation and planning
Contains• Presentations• RCDs• RVPs• Videos• Customer
Stories• White Papers• etc
http://launch.oracle.com/?EBSUpgrade
25
E-Business Suite Support Timelines5 Yrs of Premier and 3 Yrs of Extended Support
2007 2008 2011
11.5.10
2012 2013
Premier
20142009
Extended Sustaining
2015 2016 2017
R12 Premier Extended Sustaining
R12.1 Premier Extended Sustaining
Nov ‘13
Jan ‘12 Jan ‘15
May ‘14 May ‘17
2010
GA
GA
Fee Waived
More info: http://www.oracle.com/support/library/extended-support-faq.pdf
Fee Waived thru May ‘15
Nov ‘10
Fee Waived
28
50+ E-Business Suite Quick Wins Modules
Chief Procurement
Sourcing, Contracts, iSupplier Portal, Spend Analysis, Spend Classification & Supplier Lifecycle Management, Supplier Hub, Services Procurement, OSN/Electronic Invoicing
Learning Mgmt, Self Service Human Resources, Talent Profile, Incentive Compensation, Succession Planning, Incentive Comp Analytics, HR Analytics
Enterprise Asset Management, Warehouse Management, Mobile Supply Chain (MSCA) Value Chain Planning, Landed Cost Management, Manufacturing Execution, Advanced Pricing, Spares Parts Planning, Depot Repair, Field Service, Environmental Reporting and Accounting, SNO, Inventory Optimization
Financials Accounting Hub, Advanced Collections, iReceivables, Internet Expenses, Channel Revenue Mgmt
Chief HR/Talent Officer
CFO / Controller Head of Shared
Svc
Chief Operations / Manufacturing /
Logistics
Quick Win ModulesResponsibility
29
RecommendationsUpgrade, Optimize, Extend
Upgrade Latest Oracle
Applications Release
Upgrade Latest Oracle
Applications Release
OptimizePerformance with Oracle Technology & Systems
OptimizePerformance with Oracle Technology & Systems
Extend Business Value with
Co-existence Opportunities
Extend Business Value with
Co-existence Opportunities
E-Business Suite 12.1
E-Business Suite 12.1
VCP 12.1Demantra 7.3
VCP 12.1Demantra 7.3
OTM 6.1WMS 12.1OTM 6.1
WMS 12.1
AgileAgile
ATG Commerce 10
ATG Commerce 10
Oracle SOA Suite and AIA
Oracle SOA Suite and AIA
Oracle ADF & WebCenter
Oracle ADF & WebCenter
Oracle Content Management
Oracle Content Management
ExadataExadata
Oracle OBIEEOracle OBIEE
Oracle Identity Mgmt
Oracle Identity Mgmt
Oracle Enterprise Mgr
Oracle Enterprise Mgr
ExalogicExalogic
BI AppsBI Apps
HyperionEPM
HyperionEPM
GRCGRC
ATGATG
Industry Apps
Industry Apps
SCM AppsSCM Apps
Fusion Apps
Fusion Apps
CRM CloudCRM
Cloud
HCM CloudHCM
Cloud