Key Evolutions of ERP

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1 Fusion Application Adoption - A Paradigm Shift from the Legacy ERP G. Brett Beaubouef, PMP, CISA CARDINAL POINT SOLUTIONS The evolution of ERP implementations has just taken a giant leap forward! This paper will provide an overview of how the adoption of Fusion Applications will better enable organizations to implement sound business processes that focus on user roles. Your next ERP is built from the ground up to provide the information a user requires to get the job done efficiently and effectively in a collaborative environment. This session is geared towards firms that want to transform their back office from a data processing function to one focusing on data analysis. In this paper, we will explore how Fusion Applications can be deployed with minimal or no customizations by adopting powerful configuration and extension capabilities delivered in these applications. Background The ERP industry has gone through several iterations to reach its current level. Initially focused on automating back office functions, ERP has evolved to address customer-facing activities and complete business processes. With the initial release of ERP, one of the key game changers was the ability of business users to access data and generate reports without direct IT involvement. This empowerment of the business user had a significant impact on business agility. Today, we continue to see ERP vendors focus on providing business-friendly tools for reporting and analysis. Still, we see a new evolution brewing in the ERP industry, what we like to call Adaptive ERP, where business users can perform on-demand actions to meet business changes real-time. Key Evolutions of ERP COLLABORATE 13 Copyright 2013 Cardinal Point Solutions, LLC Page 1

2 As ERP solutions evolve, we also need to evolve how ERP is implemented. Customers want to realize ERP value in weeks, not months or years. Traditional implementation approaches that focus on developing a point in time solution is no longer viable. We need an implementation approach that will take full advantage of an ERP solution designed for an agile world. The following sections will elaborate on the how Oracle Fusion Applications have been designed for an evolving world and how we can take full advantage of these changes. Agile, Iterative Development and Modeling In the beginning of the ERP industry, there was no generally accepted methodology for implementing an ERP solution. Therefore, many System Integrators (Sis) that leverage existing detailed requirementsdriven, waterfall methodology focused on formal documentation to drive implementations. Detailed requirements were defined, reviewed, designed and developed outside the ERP solution. Consider the follow illustration: This approach results in a dual maintenance of configuration data outside the ERP solution. It also presents opportunities to create misalignment in ERP expectations (i.e. what we think the ERP solution can perform versus what the ERP solution can actually perform). Granted, many first generation ERP solutions did not have the tools and features that enabled modeling. There was also a lack of detailed ERP model metadata that enabled inter-related features to be implemented in an iterative fashion (i.e. it was an all or nothing proposition). Review the following comparison to understand how Oracle Fusion Applications can better support an agile implementation approach: COLLABORATE 13 Copyright 2013 Cardinal Point Solutions, LLC Page 2

3 Activity How Can Oracle Fusion Support Business Process Composer Business Process Modeling Oracle Business Process Composer is a web-based application that enables process analysts to create and customize business processes. These processes are contained within an Oracle BPM project. Business Process Composer enables process analysts to easily collaborate with process developers who use Oracle BPM Studio to create process-based business applications. Business Process Composer (see description above) Functional Setup Manager Prototyping Configuration Functional Setup Manager is a one-stop shop for all implementation activities from planning to deployment. FSM is a separate module/product, managing setups and the various branches of products houses. Fusion includes FSM to allow implementation by business users. Functional Setup Manager (see description above) Page Composer The Page Composer options are the most immediately obvious, supporting most of the user interface adjustments you might like to make. This is the main tool used for both standard Personalization - applying to just one user, as well as the more extensive Admin Personalization s that apply to a group of users. This includes changing layouts, showing or hiding components, and adding standard ADF components from a predefined resource catalog. Flexfields Extensibility An extensible flexfield is similar to a descriptive flexfield in that it provides a customizable expansion space that implementers, such as Oracle Fusion Applications customers, can use to configure additional attributes (segments) without additional programming. As with descriptive flexfields, each segment is represented in the database as a single column. However, with extensible flexfields the context values and context-sensitive segments are stored in a child table. Rules Engine Oracle Business Rules enable dynamic decisions at runtime allowing you to automate policies, computations, and reasoning while separating rule logic from underlying application code. This allows more agile rule maintenance and empowers business analysts with the ability to modify rule logic without programmer assistance and without interrupting business processes. COLLABORATE 13 Copyright 2013 Cardinal Point Solutions, LLC Page 3

4 Data Composer Customization Where basic options like flexfields are not enough to support the additional data attributes required for your business operation, the Data Composer allows access to edit and create ADF Business Objects. Just to be clear, these are not new database fields or records, but the abstraction of them based on real-world entities, such as Purchase Orders or Customers. It is the ADF Business Objects that are used at runtime by the user interface. BI Composer Analytics This composer is embedded in Fusion Applications, under Reports and Analytics, thanks to OBIEE Server option for integrating its native composer tool with any ADF application (including your own custom ones). This allows users to modify the embedded page analytics, such as adding content from the BI Catalog, as well as adjusting existing content such as modifying the analysis' columns, add alternative views, sort and filter the data, and apply conditional formatting. Source: Oracle Fusion Applications Blog, January2013; Oracle Fusion Applications Developer's Guide Functional Setup Manager Utilize the Functional Setup Manager to define and validate detailed implementation scope statements. Instead of utilizing the traditional module approach which usually drives a big bang deployment, focus on business processes. Allow Functional Setup Manager to identify the key dependencies across a business process to ensure a valid deployment approach. A specific and focused implementation scope definition is a key enabler for rapid implementations. Business Process Composer SI partners should also consider utilizing the Business Process Composer to identify both functional and organizational changes that will occur during the implementation. Document variations and process exceptions directly within the Business Process Composer to ensure that the business model remains a living model for future reference. Also, consider utilizing the Business Process Composer to facilitate What If scenarios to quantify potential impacts. Iterative Development Gone are the days when IT, SIs, and Business Users trade documents like functional specifications and report mock-ups to define requirements. Oracle Fusion Applications provide modeling tools like BI Composer and Page Composer to capture requirements real-time within the tool. Specifications will no longer be separate documents but will (and should) live in the ERP solution. Get design feedback realtime versus the traditional document approval routing. COLLABORATE 13 Copyright 2013 Cardinal Point Solutions, LLC Page 4

5 Shifting Focus from Technology to Business It s elementary! The greater the enablement an ERP solution can provide to users on the front line of daily business interactions and changes, the greater capability for ERP adaptability. Adaptably implies speed and agility. Business users will continue to become involved in what we consider logical development. There are two key differences between logical development and technical development. 1. User: With logical development, business users and process owners (not developers) develop extensions with intuitive development tools. 2. Type of Development: Logical development should focus on extensions. Examples of extensions are business rules and analysis. A key characteristic of extensions is that they need to change frequently to adapt to an ever changing business environment. Do not mistake this as a call for the IT organization to disappear! Far from it. There will always be software bugs and unique customer environments that will require technology specialists. However, as second generation ERP solutions like Oracle Fusion Applications mature, we can see a paradigm shift occurring in which IT organizations need to focus higher up on the Technology Service Value Chain. Opportunity with Oracle Oracle should be commended for making an evolutionary leap in ERP architecture with the creation and development of Oracle Fusion Applications. A solid foundation is established and we anticipate the following future enhancements to promote continued iterative and agile deployments: COLLABORATE 13 Copyright 2013 Cardinal Point Solutions, LLC Page 5

6 Conclusion Automated Testing - A key strategy to maximizing the ERP investment is a commitment to frequent upgrades. This effort can be challenging given the level of effort required to perform a software upgrade or update. Oracle has addressed this concern by giving customers the flexibility of selective updates. We applaud Oracle for this! We look forward to continued efforts to provide a fully integrated testing tool for Oracle Fusion Applications. In addition, there is a need for prepackaged testing scripts that can be utilized internally to minimize a Fusion customer s testing efforts Implementation Documentation & Wizards - Requirements, designs and functional configurations should be incorporated within the ERP solution rather than in static documents. In the future we will look to Oracle Fusion Applications to offer additional capabilities capturing business requirements and configuration decisions; as well as to provide guidance for customers regarding what information to gather in supporting feature set deployments. Composers - Today, Application Composers are available for Fusion HCM and CRM. We look forward to the availability of composers across all solution sets. Oracle Fusion ERP applications represent a fundamental shift in how ERP supports business. Oracle Fusion represents a beginning, not an end to this effort. First generation ERP solutions could only provide limited flexibility given fundamental architectural constraints. Oracle Fusion ERP enables business users to create a unique user experience without paying the penalty of a customization. There are several opportunities for greater business agility and lower Total Cost of Ownership. With key architecture concepts developed in Oracle Fusion, we are looking forward to greater capabilities that will enable agile business solutions for Oracle customers. For more information please contact us at: Info@CardinalPointSolutions.com. COLLABORATE 13 Copyright 2013 Cardinal Point Solutions, LLC Page 6

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