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Upgrading to Oracle R12

Agenda
Upgrade Decision
R12 Changes Upgrade Approach Considerations Lessons Learned What Next?

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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?

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When to Upgrade?
Primary considerations of the timing decision:

Business drivers
Oracle de-support horizon Projected length of an upgrade project

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When to Upgrade
Business Drivers 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?

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When to Upgrade
Oracle de-support horizon For 11.5.10
Premier Support ends November 2010 Extended Support ends November 2013
Extended support fees begin November 2011

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When to Upgrade
How long will it take? 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

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R12 Functionality Changes

Summary

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

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R12 Functionality Changes

Summary
Financials

Operations

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

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

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R12 Changes

Financial Management Architecture

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R12 Changes
Ledger A1 US GAAP US COA US Calendar

Sets of Books to Ledgers

From 3 Cs to 4 Cs:

Currency, Calendar, Chart and Accounting Convention

Ledger A US GAAP US COA US Calendar Ledger B French GAAP/IAS Plan Compatible French Calendar

USD
Ledger A2 US GAAP US COA US Calendar

USD

USD
Same subledger transactions can create multiple accounting representations (called Primary and Secondary ledgers)

AUD
Dr Cr

Process and report on many Ledgers at the same time (called Reporting Currencies 11i analogy: MRC)

Subledger Accounting

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R12 Changes

Multi-Org to Multi-Access

Perform multiple tasks across operating units without changing responsibilities

U.S.
Legal Entity

Canada
Legal Entity

UK
Legal Entity

U.S.
Operating Unit

Canada
Operating Unit

UK
Operating Unit

Single Responsibility

Setup Tasks for MOAC Create Security Profile (thru HR) Assign value to Profile Options: MO: Security Profile and MO: Default Operating Unit

Sample Tasks Accounting Setup Collections Requisition Demand & Purchase Orders Invoices & Payments Customer Data Management Sales Orders Receiving & Drop Ship

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Approach

Business Track Value Engineering How does an upgrade improve our business?

What are the measurable benefits of an upgrade project?

Increased Value from your Oracle Applications

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Approach

Business 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?

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Approach
Tactical Problem

Business Track Business Alignment Opportunities

Tactical Problem

Tactical Problem

Root Causes

Processes Applications

Tactical Problem

Solutions
Time spent fighting tactical fires rather than resolving misalignment root causes Real value created through alignment of business processes and applications

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Approach
Issues/ Problems
Issue 1 Issue 2 Problem 1 Problem 2

Business Track - Root Causes & Resolutions

Issue/ Problem Root Causes
RC1 RC2 RC3 Issue 1 Issue 6 Problem 1 Problem 3 Req 2 RC2 RC1

Root Cause Analysis

Root Cause

Problem 3 Req 1 Req 2 Req 3

Root Cause Resolutions

RC3

Business Track Scope Items

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Approach

Technical Track - Oracle E-Business Suite R12 Upgrade Paths

Current Level 11.0 11.5.1 11.5.8 11.5.9 or 11.5.10 Upgrade Path Release 11.5.10 CU2 > Release 12 Release 11.5.10 CU2 > Release 12 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?

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Approach
11.5.4 8.1.7 Solaris

Sample Technical Upgrade OS, DB, Apps

11.5.4 9.2.0.8 Solaris 11.5.10.2 9.2.0.8 Solaris 11.5.10.2 11gR2/OATM Solaris

Step 1

Step 2

Step 3

Step 4

12.1.1 11gR2 OATM RAC/Linux Shared AT

Step 7

12.1.1 11gR2 RAC Linux

Step 6

12.1.1 11gR2 Linux

Step 5

11.5.10.2 11gR2/OATM Linux

Step 1: Upgrade DB to 9.2.0.8 on Solaris

Step 8

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
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12.1.1 11gR2 OATM Linux RAC Shared ApplTop BigIP Parallel Concurrent Processing

Approach

How 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

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Lessons learned
From past upgrades
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
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Critical Success Factors

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

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What you need to do TODAY

Accept the fact that upgrading to R12 is no longer an if its 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
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Questions?

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