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Upgrading to Oracle R12
I n n o v a t e I n t e g r a t e O p e r a t eI n n o v a t e I n t e g r a t e O p e r a t e
I n n o v a t e I n t e g r a t e O p e r a t e
Agenda
Upgrade Decision
R12 Changes
Upgrade Approach Considerations
Lessons Learned
What Next?
I n n o v a t e I n t e g r a t e O p e r a t e
Upgrade Decision
Upgrade Drivers
Functionality improvements for the business
Business and/or organizational changes
Reduce maintenance costs
Oracle support
Upgrade Concerns
How much will an upgrade cost?
How long with an upgrade take?
How will our business benefit from an upgrade?
What are the risks of upgrading?
I n n o v a t e I n t e g r a t e O p e r a t e
Primary considerations of the timing decision:
Business drivers
Oracle de-support horizon
Projected length of an upgrade project
When to Upgrade?
I n n o v a t e I n t e g r a t e O p e r a t e
Perspectives on Business Drivers
Changes in business processes create the need for specific
R12 features
Change in R12 features provide opportunity to improve
business processes
Weigh decision to upgrade against introducing a temporary
custom solution
Decision to upgrade should be user driven, based on the new
features and their applicability to the business
Is implementing a new module better completed on an
upgraded R12 platform?
When to UpgradeBusiness Drivers
I n n o v a t e I n t e g r a t e O p e r a t e
For 11.5.10
Premier Support ends November 2010
Extended Support ends November 2013
• Extended support fees begin November 2011
When to UpgradeOracle de-support horizon
I n n o v a t e I n t e g r a t e O p e r a t e
Primary factors affecting the length of an upgrade project:
New features
Re-engineering processes
Modifying structures
Replacing current customizations with standard functionality
Carrying over current customizations to R12
Extensive regression testing
Size your upgrade as needed to complete in 4-8 months
When to UpgradeHow long will it take?
I n n o v a t e I n t e g r a t e O p e r a t e
R12 Functionality ChangesSummary
Foundation/Architecture
• Move away from Oracle Forms to web/HTML pages
• Many seeded reports ported to XML Publisher
• TCA expanded for suppliers & banks• Organization setup and maintenance• Many features consolidated into centralized modules
• Shared services support• Integration with Edge products
I n n o v a t e I n t e g r a t e O p e r a t e
R12 Functionality ChangesSummary
Financials
• Financial accounting structural changes
• Improved legal entity structuring and reporting
• Consistent Sub-ledger accounting processing
• Robust ledger structures and reporting• IFRS support• Improved inter-company support & reporting (through AGIS)
• Centralized tax processing with EBTax• Expanded payments processing with approvals management
• Advanced collections• Channel revenue management• Expanded asset depreciation methods• Landed cost management functionality • Month end close process changes via SLA
Operations
• OM – Item order-ability for products for product categories
• OM – credit card security & encryption• OPM integration with inventory• OPM MRP replaced with APS (unconstrained)
• OPM forecasting merged with discrete forecasting
• PO – advanced pricing for purchasing• PO – advanced procurement for complex goods and services
• ASCP – distribution planning• WIP – improved MES with supervisor workbench
I n n o v a t e I n t e g r a t e O p e r a t e
R12 ChangesFinancial Management Architecture
I n n o v a t e I n t e g r a t e O p e r a t e
R12 ChangesSets of Books to Ledgers
Same subledger
transactions can
create multiple
accounting
representations
(called Primary and
Secondary ledgers)
Ledger A1
Ledger BLedger A
Subledger
Accounting
Dr Cr
Process and report on many
Ledgers at the same time
(called Reporting Currencies
11i analogy: MRC)
Ledger A2
US GAAP
US COA
US Calendar
USDFrench GAAP/IAS
Plan Compatible
French Calendar
USD
US GAAP
US COA
US Calendar
USDUS GAAP
US COA
US Calendar
AUD
From 3 Cs to 4 Cs:
Currency, Calendar, Chart and
Accounting Convention
I n n o v a t e I n t e g r a t e O p e r a t e
R12 ChangesMulti-Org to Multi-Access
Single Responsibility
Sample Tasks
• Accounting Setup
• Collections
• Requisition Demand & Purchase Orders
• Invoices & Payments
• Customer Data Management
• Sales Orders
• Receiving & Drop Ship
Perform multiple tasks across operating
units without changing responsibilities
Canada
Legal Entity
UK
Legal Entity
U.S.
Legal Entity
U.S.
Operating Unit
Canada
Operating Unit
UK
Operating Unit
Setup Tasks for MOAC
• Create Security Profile (thru HR)
• Assign value to Profile Options: MO: Security Profile and MO: Default Operating Unit
I n n o v a t e I n t e g r a t e O p e r a t e
“How does an upgrade improve our business?”
“What are the measurable benefits of an upgrade project?”
ApproachBusiness Track – Value Engineering
Increased Value from your Oracle Applications
I n n o v a t e I n t e g r a t e O p e r a t e
ApproachBusiness Track – Value Engineering
Business Track Questions to Answer:
What business problems will be fixed with the
upgrade?
Which misalignments between the business and its
supporting applications will be corrected?
What competitive advantages will the upgrade
provide and how will they impact the bottom line?
I n n o v a t e I n t e g r a t e O p e r a t e
ApproachBusiness Track – Business Alignment Opportunities
Tactical
Problem
Tactical
Problem
Tactical
Problem
Tactical
Problem
Root
Causes
Processes
Applications
Time spent fighting tactical fires rather
than resolving misalignment root
causes
SolutionsReal value created through alignment of
business processes and applications
I n n o v a t e I n t e g r a t e O p e r a t e
ApproachBusiness Track - Root Causes & Resolutions
Issues/Problems
Issue 1
Issue 2
Problem 1
Problem 2
Problem 3
Req 1
Req 2
Req 3
……
Root Cause Analysis
Root Causes
RC1
RC2
RC3
……
Issue/Problem
Root Cause
Issue 1RC1
Issue 6
Problem 1
RC2Problem 3
Req 2
…… RC3
Business
Track Scope
Items
Root Cause Resolutions
I n n o v a t e I n t e g r a t e O p e r a t e
ApproachTechnical Track - Oracle E-Business Suite R12 Upgrade Paths
Current Level Upgrade Path
11.0 Release 11.5.10 CU2 > Release 12
11.5.1 – 11.5.8 Release 11.5.10 CU2 > Release 12
11.5.9 or 11.5.10 Release 12
Database Version
10.2.0.3 – 11.2.0.1
Will you migrate hardware platforms?
Will you change the OS?
Will you change the application architecture?
I n n o v a t e I n t e g r a t e O p e r a t e
11.5.4
8.1.7
Solaris
11.5.4
9.2.0.8
Solaris
11.5.10.2
9.2.0.8
Solaris
12.1.1
11gR2
OATM
RAC/Linux
Shared AT
12.1.1
11gR2
OATM
Linux
RAC
Shared ApplTop
BigIP
Parallel Concurrent
Processing
Step 1
Step 4
Step 2
11.5.10.2
11gR2/OATM
SolarisStep 3
12.1.1
11gR2
RAC
Linux
12.1.1
11gR2
Linux
11.5.10.2
11gR2/OATM
LinuxStep 7
Step 5Step 6
Step 8
Step 1: Upgrade DB to 9.2.0.8 on Solaris
Step 2: Upgrade Apps to 11.5.10.2 on Solaris
Step 3: Upgrade Database to 11gR2 and new DB Physical Layout
Step 4: Migrate the Environment to Linux
Step 5: Upgrade Apps to R12
Step 6: Implement RAC
Step 7: Implement Shared Appltop
Step 8: Implement Parallel Concurrent Processing and
Forms Web Load Balancing with BIG-IP
ApproachSample Technical Upgrade – OS, DB, Apps
I n n o v a t e I n t e g r a t e O p e r a t e
ApproachHow to phase technical upgrade with business improvements
Upgrade phasing finalized based upon the business
track review and planned technical changes
Consider phasing technical upgrade and business
changes
Reduces “moving parts” of the upgrade
Moderate change inherent in technical upgrade
Prioritize business changes by net benefit/impact
Phase remaining changes at pace the business can adopt
I n n o v a t e I n t e g r a t e O p e r a t e
11i to R12 is not just a technical upgrade
R12 design is fundamentally different
Doing an upgrade without a business analysis layer could result in an
inefficient implementation
Do not assume all standard functionality will work
Some set-up and configuration changes may be required
Plan for extensive regression testing
Actively replace existing customizations with new/old
standard functionality
Opportunity to re-engineer processes
Squeeze inefficiencies out of the business operating system
Change management is critical
Upgrade should be planned around business events
Lessons learnedFrom past upgrades
I n n o v a t e I n t e g r a t e O p e r a t e
Identify one or more business sponsors
Process engineering commitments
Regression testing commitments
Clearly define business objectives
Define reasons and justification that make an upgrade “good to
do” rather than “have to do”
Project plan compensates for unexpected functionality issues
Do not wait until the last possible time to launch the upgrade
project
Build buffers into the project plan
Critical Success Factors
I n n o v a t e I n t e g r a t e O p e r a t e
Accept the fact that upgrading to R12 is no longer an “if” –
it’s a “when”
Know why you want to upgrade
Consider a Value Engineering analysis
Build your “good to do” case
Quantify the business benefits
Know how long it would take you to upgrade
Analyze customization replacements
Identify technical, application and business process actions
Create a project plan with requisite buffers
Quantify the cost
Internally agree on the business conditions and parameters
that would trigger the launch of the upgrade project
What you need to do TODAY
I n n o v a t e I n t e g r a t e O p e r a t eI n n o v a t e I n t e g r a t e O p e r a t e
Questions?
