Oracle E-Business Suite Upgrade vs. Re-Implementation A Third Way 14 th February 2013 Imagine. Implement. Improve.
Agenda Claremont Overview Speaker Introductions R12 Drivers Traditional Options An alternate Option- The 3 rd Way Q&A
Company Overview David Golding Imagine. Implement. Improve.
Company Background Founded in Dec 2004 Focussed Oracle Services Provider UK offices in Newcastle and Guildford Near Shore Development Centre in Croatia Oracle Gold Partner
What Do We Do? Consultancy Managed Services Capabilities Products Implementation Upgrade Health Checks Project Management Strategy Functional Technical System Administration DBA Hosting Core E-Business Suite Lease & Asset Management CRM Integration & BPM Data Migration & Development Lease 100 Collections 30 Real Estate 100 EAM 100 Hermes DataLoad Business Intelligence & Performance Management
Webinar Speakers David Golding Claremont Consultancy Director 20 years consultancy management experience Oracle E-Business Suite since 1992 Delivering business and IT change programmes. Advising executives on strategic direction david.golding@claremont.co.uk Michael Lane Claremont Managing Technical Consultant 18 years development experience in E-Business Suite Upgrade experience 9.4.2 -> 10.7 up to 11i -> R12 Author of Claremont s upgrade methodology: Kairos michael.lane@claremont.co.uk
Imagine. Implement. Improve. R12 Drivers
Background and Project Drivers 11.5.10 Premier Extended Sustaining December 2014 Requirement to migrate to Release 12 by Q4 2014 No further R11 Legislative updates, enhancements or fixes Fiscal support through April 5 th 2014 Investment Decision/Business Case Hygiene requirement to maintain support Opportunity to re align business or extend footprint Upgrade vs Re-implementation
The Business Challenge Should We Start Again? We need to realign our ERP with our Business Business Acquisition/Divesiture Business Alignment/Fit Accounting Calendar Change Regulatory change IFRS We need to transform the way we work Shared Service Support Global Chart of Accounts Improved Analytics Automated/Standardised processes We are burdened by the old & unnecessary Data Alignment and Cleansing Data we no longer need Customisation Support We would like to maximise ERP investment New Modules New Functionality Legacy System Retirement Hybrid Applications Route to Fusion Applications
Challenging Conventional Wisdom Your company has outgrown its current Chart of Accounts (COA) EBS Data Transformation Your policies and costs and pricing are not consistent across the organization Your E-Business Suite database is overgrown with a large amount of obsolete data. Data Quality and Standardization Oracle have traditionally said You need to reimplement Corporate Reorganization You want to merge ledgers or sets of books Your organization structure has changed, and you are continually reorganizing You want to move to a shared Service Model You are divesting businesses or business functions You want to go to a central data centre and consolidate Your Oracle E-Business Suites into a single instance. Sharing Information Align EBS to Your Current Business Your company has outgrown its current Chart of Accounts (COA) You want to go to a single global chart of accounts
Kairos R12 Upgrade Methodology Claremont has developed Kairos to enable business change through an Upgrade Align (New Chart of Accounts) Enhance (enable unused or new functionality) Consolidate (Sets of Books/ OU s) Extend EBS footprint Simplify (remove customisations) Adopt/mix On Premise' and Cloud deployments Explorer Insight Transform Configure Reconciler What approach should we take? How big, how long and what does it take? How can we implement change without reimplementing? How can we replicate configuration through the key project phases? How do we ensure our upgraded data is complete, transactable and reconcilable? Underpinned by IPR and products that enable business change yet : Reduces the cost of R12 migration projects Reduces the risks associated with delivering business change Automates repetitive tasks and testing Ensures smooth transition to BAU support
Imagine. Implement. Improve. How to get there?
Traditional Options Upgrade Quickest Cheapest Keep current set-up (COA, org structures etc.) Live with current data quality Re-implementation Longer duration & more effort More expensive typically 20-30% more than an upgrade Extra effort comes from: Re-analysis of business requirements Data migration & cleansing CRPs Documenting and getting approval for all of the above
Pros & Cons Upgrade There is no such thing as a technical R12 upgrade All or nothing, can t upgrade part of the application Re-implementation Very good option in some circumstances EBS configuration doesn t match your business Data quality is so poor that the value of the application is reduced You require more than one upgrade to get to R12, i.e. you re still on 11.5.8 (or earlier)
Oracle s view You would consider doing a reimplementation under circumstances such as: You wish to change configurations that are not easily changed, such as your chart of accounts definition, costing method, or calendar. Your enterprise has undergone significant changes in the number and structure of its business units and organizations since your original Oracle implementation. Planning Your Oracle E-Business Suite Upgrade from Release 11i to Release 12, Oracle Corporation. February 2012
Another option is available to you Upgrade Cheaper but inflexible Re-Implementation Large business case required Hybrid Upgrade Upgrade + Business Benefits
The 3 rd Way The Hybrid Upgrade Options are available to achieve some of the business benefits of a re-implementation as part of an upgrade project Features of R12 help you to achieve this 3 rd party software is also available Some examples..
Update your configuration Re-organise your COA Change financial period names and dates Merge or divest legal entities, operating units, business groups
Simplify Customisations Could be done at any time, but an upgrade is a very good time to review & reduce You probably don t use all the custom code in your system so throw it out! R12 new features allow for simplification e.g. BI Publisher in multi-language installs or same data/multi-output reports Some R12 new features may replace your customisations, check.
Extend your modules & features footprint This is not as hard as you think in an upgrade project. Shared data is already in place OM (AR & INV), CZ(INV), CSI(AR) Adding neighbouring and aligned modules is less complex than a completely new process Add the new module in R12 post-upgrade, you ll only test it once
Imagine. Implement. Improve. Conclusions
Middle Ground Oracle s view: As you decide between an upgrade versus a reimplementation, realize that there is no right or wrong approach only what best suits your business. In practice, we see more upgrades than re-implementations, with most customers finding that they can use the standard upgrade to get to 12.1, and then adjust their setups or create additional setups as needed a complete re-install and reimplementation is not required. Planning Your Oracle E-Business Suite Upgrade from Release 11i to Release 12, Oracle Corporation. February 2012
Benefits of the Hybrid Approach 11i De-support is coming in 2014 Adding some business improvement into your upgrade is an opportunity to get something back A hybrid business case is an easier sell Re-implementations are bigger, more expensive and involve a lot more business staff than an upgrade You are going to have to do the upgrade anyway It s an opportunity to engage the business
Imagine. Implement. Improve. Questions & Answers
Questions & Answers