www.eprentise.com
A Roadmap to R12:Does Anyone Know the Way?
Helene AbramsCEO
Session 8913
The Reimplement vs. Upgrade Decision
www.eprentise.com
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-
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
2Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
Introduction eprentise
Established in 2006 Transformation software for E-Business Suite Helene Abrams, CEO
Who we serve Large and middle-market US-based and international customers from both
private and public sectors
What we do Provide software that assists companies looking to upgrade to R12,
particularly companies that need to re-structure their business to change configurations, consolidate instances, separate data, or address other significant organizational changes they have experienced since originally implementing EBS.
Copyright © 2011 eprentise. All rights reserved.3
www.eprentise.com
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
4Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
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
5Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
A Fork in the Road - DefinitionsUpgrade 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 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.
6Copyright © 2011 eprentise. All rights reserved.
Has been the preferred path to new EBS releases Many experts now advising this path
www.eprentise.com
Why Experts are Recommending Reimplementation Elimination of customizations
Difficult to change underlying structures Chart of Accounts, calendar, currency
Business Group, Ledger, Legal Entity, OU structure
Desire to consolidate multiple EBS instances
Early instability of Oracle upgrade process
Copyright © 2011 eprentise. All rights reserved.7
www.eprentise.com
Reimplementation – Not Always a Good Choice 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
Copyright © 2011 eprentise. All rights reserved.8
www.eprentise.com
Calculating the Cost of a ReimplementationReimplementation 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 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 cycleResolve 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 $1,164,000.00 Duration approximately 14 months
Copyright © 2011 eprentise. All rights reserved.9
Example for a single instance
www.eprentise.com
Cost of an Upgrade
Copyright © 2011 eprentise. All rights reserved.10
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 Phase 3 72,000
Example for a single instance
www.eprentise.com
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
11Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
New Route: Remodeling an 11i Instance Change Chart of Accounts
Change Calendar, Currency
Restructure Business Group, Sets of Books, Legal Entities, Operating Units
Consolidate Instances
Copyright © 2011 eprentise. All rights reserved.12
www.eprentise.com
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 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
13Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
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 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
14Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
Upgrade Considerations: What Needs to Change?
Fundamental Configuration Setups
Legal Entity, Set of Books, Calendar, and Operating Unit structures
Org Units structure
Number of E-Business Suite Instances
Chart of Accounts Structure (COA)
Number of COAs
Business Processes
Data cleanliness and standards
Customizations and enhancements
Obsolete data
Business Intelligence environment
Copyright © 2011 eprentise. All rights reserved.15
www.eprentise.com
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
16Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
Getting to R12: Remodeling + Oracle Upgrade
17Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
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
Getting to R12: Reimplementation + Migration
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: Remodeling plus Upgrade
18Copyright © 2011 eprentise. All rights reserved.
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:
Copyright © 2011 eprentise. All rights reserved.19
Example Consolidation Scenario withDifferent Versions of EBS
www.eprentise.com
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.
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.
Copyright © 2011 eprentise. All rights reserved.20
www.eprentise.com
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.”
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.
21Copyright © 2011 eprentise. All rights reserved.
www.eprentise.com
QUESTIONS?
Copyright © 2011 eprentise. All rights reserved.22
www.eprentise.com
Thank You!Helene Abrams eprentise [email protected]
- One World, One System, A Single Source of Truth -
23Copyright © 2011 eprentise. All rights reserved.