R12 Upgrade Webinar-Final - OAUGsooaug.communities.oaug.org/multisites/sooaug/media/Documents/... · Ongoing Consumable Low Upgrade Cost Point Releases 12 12.1 ... New Capabilities

To re-implement or upgradeThe R12 dilemma solved

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 1

Agenda

Topic Page

Introductions 2

Delivering Value with Oracle E-Business Suite Release 12.1 3

Panel Discussion 15

Deloitte Point of View 20


The presenters meeting with you today…

Ognjen PavlovicVice President Oracle CorporationOracle E-Business Suite Development

Presenters

Brad GovermanPrincipalDeloitte ConsultingR12 Upgrade COE

Jeff TaylorSenior ManagerDeloitte ConsultingR12 Upgrade COE

Jeff EshelmanIS Director J. M. SmuckerR12 Program Manager

Katherine SchwertleyProgram Manager XilinxR12 UpgradeIT Program Manager

Chao-Yee WatsonProgram ManagerXilinxR12 Upgrade Business Program Manager

For additional information contact: David Maher - [email protected]

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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Panel Introductions


• About J.M. Smucker– Founded in 1897. First products were apple cider and apple butter– From $687M in annual sales in 2002, Smucker has grown to nearly $5B sales today– Brands include Smucker’s®, Folgers®, Jif®, Pillsbury®, Crisco®

• Business Reason to Upgrade– Provides a foundation for our Company’s future growth– Protects our systems investment by upgrading to a fully supported platform– Supports the integrity, security, reliability and access to business critical data– Aligns with Smucker’s strategic roadmap to effectively leverage business application

investments for future growth• Project overview

– Process-focused approach to endeavor to provide an effective upgrade– Complex environment with Oracle and integrated

third-party products– High focus on change management

• Currently we are– Starting month 10 of a 26-month project, concluding

Design/Validation and focusing on Build (project schedule was extended 12 months due to an acquisition)

Jeff Eshelman, Program Manager

The J. M. Smucker Company


Katherine Schwertley – IT Program ManagerChao-Yee Watson – Business Program Manager

• About Xilinx– Xilinx is the world’s leading provider of programmable platforms, with $2.4B in revenues in

fiscal year 2011 and nearly 50 percent market share.– Xilinx programmable chips are the innovation platform of choice for today’s leading companies

for the design of tens of thousands of products that improve the quality of our everyday lives.

• Business reason to upgrade– Stay on current releases of the eBusiness suite – Provide a foundation for functionality enhancements in Finance, Human Resources and

Operations areas.

• Project Overview– Upgrade from 11.5.10 to 12.1.3– Reduce custom footprint by replacing customizations with standard R12 functionality where

feasible.– Implement a limited set of high value R12 new features.

• Xilinx completed its upgrade on Nov 20, 2011, per original schedule– Upgrade completed over 3 day weekend– Shipping returned to normal volume within 2 business days– Subsequent financial closes completed on time– Experienced spike in support cases, as expected post go-live, but began trending towards

normal levels of support within 2 months of go-live

Xilinx

Panel Discussion


1. What caused you to make the decision to upgrade at this time

2. Why did you decide on R12 vs waiting for fusion

3. How did you justify, get approval and funding for the upgrade

4. Did you develop a business case for the upgrade

5. When you were considering the upgrade did you purchase any additional modules

6. Did you also upgrade hardware, infrastructure and other 3rd party products

Panel discussion

7. As part of your scope did you include any new process areas

8. What do you feel has been your biggest challenge or risk during the upgrade process and how did you deal with it

9. How much down time did you require to implement the upgrade and how did you work around business continuity issues

10. What would you have done differently if you had to do it over again.

11. What benefits have realized / anticipate realizing from the upgrade

12. What does your post upgrade roadmap look like.

Jeff EshelmanIS Director J. M. SmuckerR12 Program Manager

Chao-Yee WatsonProgram ManagerXilinxR12 Upgrade Business Program Manager

Katherine SchwertleyProgram Manager XilinxR12 Upgrade IT Program Manager

Brad GovermanPrincipalDeloitte ConsultingR12 Upgrade COE

Deloitte Point of View


Deloitte’s point of view is that a business focus is required for an effective R12 upgrade

1. Understand the drivers to justify upgrading to R12

2. Understand your current applications landscape

3. Identify pain points in the current state environment

4. Identify opportunities to implement functionality in R12

5. Define the scope and objectives of the upgrade

6. Develop an upgrade roadmap

Obj

ectiv

e

Rep

lace

old

IT

sys

tem

Valu

e th

roug

h ca

pabi

lity

rede

sign

Valu

e th

roug

h bu

sine

ss m

odel

ch

ange

s

Approach

Very limited process and

functional change

Focus on ERP and non-ERP

improvements while considering policies,

metrics, etc.

Focus on structural business changes

Technical upgrade/system

replacement

Upgrade enabled

transformation

Full business transformation


• There are no “written in stone” rules regarding upgrading vs. re-implementing a significant ERP system

• Considerations that must be weighed heavily as to what is the right direction for each client situation

Should I upgrade or re-implement?

Specific business criteria Upgrade Re-implementation

Are there structural changes required to configurations (e.g., chart of accounts, business groups/legal entities, etc.)

No Yes

Are there significant customizations to the data and forms in the current instance that will be redesigned or replaced by delivered R12 functionality?

No Yes

Are there significant business process re-designs (e.g., moving from a GL-centric to Projects-centric process)?

No Yes

Will there be significant changes to the underlying technical infrastructure and/or architecture (e.g., operating system or server configuration)

No Yes

Are there significant volumes of historical data that are better archived rather than retained in the production instance?

No Yes


Developing a roadmap for an R12 upgrade

Conduct upgrade workshop• Identify goals and drivers • Answer strategic questions• Identify R12 upgrade value• Start developing roadmap

Conduct upgrade assessment• Identify improvement opportunities • Define application and process scope • Define RICEW & technical scope• Confirm upgrade vs. re-implementation • Publish R12 upgrade roadmap

Execute R12 upgrade• Execute R12 upgrade roadmap• Design process enhancements• Implement new application functionality • Retrofit rationalized customizations• Upgrade applications

Step 1:Conduct R12Workshops

Step 2:Conduct R12Assessments

Step 3:Execute R12 Upgrade

Today we will discuss steps to get started developing your road map


Tax

Security & Controls

Change Management

Process and Package

Information Technology

Project Management

R12 upgrade workshop

Agenda items Work Streams

DeloitteAssessment Workshop

Assess

Pres

ent

Plan, execute, monitor, and control the project. Drive key assessment recommendations around the implementation roadmap.

Analyze business processes, comparing requirements to Oracle functionality. Identify improvement opportunities achieved by enabling those processes with solutions such as Oracle.

Analyze infrastructure requirements that are essential to future solution support. Estimate effort and risk involved in customizing the software.

Assess current approach to communications, stakeholder engagement, training, and transition. Determine steps required to address adoption/sustainability of change initiatives.

Assess the value, accessibility, and security of data and information assets. Determine tasks related to maintain appropriate security and controls.D

iscover

Approach

1. AssessGather information about

the business drivers, current pain points, usage

of applications and technical architecture

2. DiscoverDiscover new

R12 features and identify opportunities

3. ApproachAnalyze findings and

develop recommendations

4. PresentPresent high-level

executive summary

Identify and analyze enterprise's global tax strategy and related statutory/regulatory requirements. Assess impact due to upgrade.

Deloitte’s methodology leverages several components from EVD to integrate key work streams into each assessment. The approach is conducted in four sessions; Assess, Discover, Approach, and Present.


Our workshop approach is broken down into four sessions with key activities identified for each session

Discover Approach Present

Objectives

Key Activities

During the R12 upgrade approach discussion we will outline the methodology, tools, and considerations for any upgrade

During the R12 features and opportunities discussion we will discuss new features and modules

• Industry Trends and Impacts

• New Modules• Key R12 Features• Point Upgrades

• Upgrade vs. reimplementation

• Our EVD-driven R12 upgrade methodology

• Upgrade assessment tools• Lessons learned• Sample timeframes

• High Level Assessment Report

6 Hours 2 hours Post Assessment

Assess

6 Hours

During the current state discussion we will gather information about the business drivers, current pain points, usage of applications and technical architecture

• Deloitte R12 Enterprise Value Mapped to Client Environment

• Workshop Questionnaire• R12 Vision & Strategy• Understand 11i Pain Points• Current Overall Landscape• Technology Footprint• Application Maintenance

R12 upgrade workshop - details

We will wrap up the workshop by discussing the information presented, initial opinions and next steps in the form of deliverables


For additional information about Oracle EBS R12 upgrades contact

David Maher [email protected]


Copyright © 2011 Deloitte Development LLC. All rights reserved.

About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

About This PublicationThis publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

17

The following slides are presented by Oracle Corporation.

<Insert Picture Here>

Delivering Value with Oracle E-Business Suite Release 12.1Ognjen PavlovicVice President, Application Development

19

EBS Product Update: Continued Releases & Innovation Ongoing Consumable Low Upgrade Cost Point Releases

12 12.1

12.1.2 12.1.3

PlannedReleased

Major Release

Minor Release

11i10 12.x

Nov. 2004

Jan. 2007

May 2009

Dec 2009

Aug2010

RUP1…RUP2…RUP3…

20

Business Objectives Enabling 12.1 Capabilities

E-Business Suite 12.1 Aligns With Business Objectives New Capabilities for Customers across E-Business Suite for 11i Customers

• Drive consistent, integrated best practices • Reduce cost of back office operations• Improve DSO and cash flow

• Centralized Finance Architecture • Expense Reporting & Imaging• Credit & Collections

CFO

• Spend Analytics & Classification• Leverage Sourcing Auctions• Run Spend against Contracts

• Understand how & where money is utilized• Achieve the best possible price for spend• Ensure spend contracts are utilized

CPO

Role

• Fast and business oriented implementation• Accelerated user adoption• Lower systems management costs

• Business Accelerators• Pre-built UPK Content • Systems Management Packs

CIO

• Develop enterprise wide HCM strategy• Improve talent acquisition effectiveness• Improve workforce retention

• Performance & Compensation • 360 Degree View of Employee• Succession Planning

VP of HR

• Manage and sense demand• Optimize manufacturing operations• Improve order accuracy & logistics efficiency

• Complete Value Chain Planning• Manufacturing Operations Center• Enhanced Warehouse Management

COO

21

Procurement

HCM

Financials

SCM

Projects

CRM

• Buyers Workbench, Sourcing, Contracts, Electronic Invoicing, iSupplier Portal

• Learning Mgmt, Performance Mgmt, Talent Profile, Incentive Compensation

• Service & Field Service

• Project Management for Asset Based Industries (Util, E&C, O&G etc.)

• Enterprise Asset Management, Warehouse Management

• Shared Services, Advanced Collections, Internet Expenses, Channel Revenue Mgmt

• Spend Analysis, Classification & Supplier Lifecycle Management

• Succession Planning, Incentive Comp Analytics/ HR Analytics

• Projects Analytics

• Value Chain Planning, Landed Cost Management, Manufacturing Execution

• Financials Accounting Hub, Federal Financial Analytics

MDM • Core Product Hub • PIM for Telco, PIM for Retail, Site Hub, Supplier Hub

Industries• Wholesale Distribution, Public Sector, High Technology , Engineering & Construction,

Life Sciences, Retail, Professional Services, Communications, Consumer Goods, Utilities

• Price Protection, Supplier Ship & Debit

Enhanced Product Areas New Products in 12/12.1

R12.1 Opportunities for CustomersEnhanced Products and New SKUs Across the E-Business Suite

22

• Evaluate the new 12.1 features in the products you are currently running– Opportunities to eliminate customizations– Greater flexibility to match the needs of your business– Opportunities for additional automation and process improvement

• Look for adjacent products that might add value– Many products are much stronger at the 12.1 level than they were

in 11i10– Adding modules is low cost since you are leveraging the

implementation work you have already done– Some customers have justified the upgrade primarily by the need

to get to the 12.1 level so they could implement additional products

Building the Business Case for UpgradingValue Proposition is in E-Business Suite R12.1 and Adjacent Products

23

Finding Additional Information on 12.1Accelerate your evaluation and planning

Contains• Presentations• RCDs• RVPs• Videos• Customer

Stories• White Papers• etc

http://launch.oracle.com/?EBSUpgrade

24

<Insert Picture Here>

Planning Your Roadmap

25

E-Business Suite Support Timelines5 Yrs of Premier and 3 Yrs of Extended Support

2007 2008 2011

11.5.10

2012 2013

Premier

20142009

Extended Sustaining

2015 2016 2017

R12 Premier Extended Sustaining

R12.1 Premier Extended Sustaining

Nov ‘13

Jan ‘12 Jan ‘15

May ‘14 May ‘17

2010

GA

GA

Fee Waived

More info: http://www.oracle.com/support/library/extended-support-faq.pdf

Fee Waived thru May ‘15

Nov ‘10

Fee Waived

26

Oracle E-Business Suite 12.xPlanned Enhancements

27

Post R12.1.3 Roadmap: Functional EnhancementsRCDs are on MOS: Doc 1302189.1

28

50+ E-Business Suite Quick Wins Modules

Chief Procurement

Sourcing, Contracts, iSupplier Portal, Spend Analysis, Spend Classification & Supplier Lifecycle Management, Supplier Hub, Services Procurement, OSN/Electronic Invoicing

Learning Mgmt, Self Service Human Resources, Talent Profile, Incentive Compensation, Succession Planning, Incentive Comp Analytics, HR Analytics

Enterprise Asset Management, Warehouse Management, Mobile Supply Chain (MSCA) Value Chain Planning, Landed Cost Management, Manufacturing Execution, Advanced Pricing, Spares Parts Planning, Depot Repair, Field Service, Environmental Reporting and Accounting, SNO, Inventory Optimization

Financials Accounting Hub, Advanced Collections, iReceivables, Internet Expenses, Channel Revenue Mgmt

Chief HR/Talent Officer

CFO / Controller Head of Shared

Svc

Chief Operations / Manufacturing /

Logistics

Quick Win ModulesResponsibility

29

RecommendationsUpgrade, Optimize, Extend

Upgrade Latest Oracle

Applications Release

Upgrade Latest Oracle

Applications Release

OptimizePerformance with Oracle Technology & Systems

OptimizePerformance with Oracle Technology & Systems

Extend Business Value with

Co-existence Opportunities

Extend Business Value with

Co-existence Opportunities

E-Business Suite 12.1

E-Business Suite 12.1

VCP 12.1Demantra 7.3

VCP 12.1Demantra 7.3

OTM 6.1WMS 12.1OTM 6.1

WMS 12.1

AgileAgile

ATG Commerce 10

ATG Commerce 10

Oracle SOA Suite and AIA

Oracle SOA Suite and AIA

Oracle ADF & WebCenter

Oracle ADF & WebCenter

Oracle Content Management

Oracle Content Management

ExadataExadata

Oracle OBIEEOracle OBIEE

Oracle Identity Mgmt

Oracle Identity Mgmt

Oracle Enterprise Mgr

Oracle Enterprise Mgr

ExalogicExalogic

BI AppsBI Apps

HyperionEPM

HyperionEPM

GRCGRC

ATGATG

Industry Apps

Industry Apps

SCM AppsSCM Apps

Fusion Apps

Fusion Apps

CRM CloudCRM

Cloud

HCM CloudHCM

Cloud