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Tactics Group Incorporated

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Oracle R12 Decision Points:

Upgrade vs Re-implementation


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Agenda

Ø  New Features in Oracle E-Business Suite R12

Ø  Road Map to R12

Ø  Direct Upgrade Considerations

Ø  Re-implementation Considerations

Ø  Oracle Technology Tools

Ø  ROI Considerations

Ø  Questions and Answers


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Ø  Global Release

Ø Single Global Instance Capable (Enhanced)

Ø Multiple Operating Unit Access Control

Ø Multiple Legal Entities/Multiple Ledgers

Ø Single Tax calculation engine – eBusiness Tax

Ø SubLedger Accounting - Single transaction, multiple representations

New Features in R12


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New Features in R12 Ø  New Technology Stack and Deployment

Ø Utilizing 10gR2/11g database Ø Virtual Private Database Ø Security Data Vault

Ø BI Publisher for reporting Ø Allow one data extract with multiple presentation formats Ø Better document delivery process including email and fax

Ø Expand usage of Oracle Application Framework Ø New look and color scheme for web based forms Ø Additional wizard driven screens to enhance user experience

Ø 10g Fusion Middleware and 10g Developer Suite


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New Features in R12 Ø  Financials

Ø General Ledger Ø Supports multiple Ledgers and controls multiple Ledgers via Ledger

Set such as Open/Close Period Ø Access multiple Ledgers from a single responsibility Ø More robust Inter/Intra company accounting rule options

Ø Accounts Payable Ø Migrates the payment processing to Oracle Payment module Ø Adds Invoice Line concept to better match with AR design and to

support Subledger Accounting Ø Migrates Supplier data model to the Trading Community Architecture

(TCA) Ø New Supplier setup screen (OA Framework based)


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New Features in R12 Ø  Financials

Ø Accounts Receivable Ø New Customer setup screen (OA Framework based) Ø New Cash Application Queue Ø Better revenue accounting (match with COGS for any deferred

transactions) Ø Customer refund automation Ø eBusiness Tax integration Ø Line level cash application

Ø Fixed Assets Ø Automatic depreciation rollback on asset adjustment Ø New API to support Mass Addition preparation such as depreciation

expense account, Asset Category code, etc.


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New Features in R12 Ø  Order Management, Advanced Pricing, Shipping Execution

Ø Order Management Ø Item Orderability – Sales Order/Customer Item restrictions Ø Credit over-shipped quantity for referenced RMA Ø Post booking Item substitution Ø Internal Requisition/Sales Order change management Ø Productivity enhancements

Ø Mass Change on Quick Sales Order form Ø Copy function enhancements – ex. Go to new order


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New Features in R12 Ø  Order Management, Advanced Pricing, Shipping Execution

Ø  Advanced Pricing Ø Pricing Engine performance enhancements Ø PO Pricing enhancements Ø Price Books

Ø  Shipping Execution Ø Incremental Shipments for Over and Under Ship Tolerances


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New Features in R12 Ø  Manufacturing:

Ø Serialized control manufacturing Ø Shop Floor Device and Test Equipment integration Ø Electronic Records and Signatures (ERES) Ø  Improved Supervisor dashboard Ø Printing shop floor documentation Ø Usability enhancements

Ø Ready-status Ø Transaction validation

Ø Labor skill validation Ø Genealogy enhancements


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Now you want it, so what’s next?



Road Map to R12

R10.x Re-implementation

Release 12

R11.0.3 Re-implementation

Upgrade to R11i R11.0.3

Direct Upgrade R11.5.x

Re-implementation R11.5.x

Direct Upgrade



Decision Factors Considerations Risks

•  Business Value •  Data quality and impact on Financials •  Project scope •  New features and modules stability •  Feasibility to change the business •  Time table •  Project cost

•  New Technology •  Impact on other sub-systems •  Impact on existing hardware and network •  Impact on existing printers •  Impact on existing WRICEP elements

•  Staffing •  New skills needed •  New user training •  New procedures •  Outside vs. in-house resources


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Direct Upgrade Considerations – Business Value

•  Maintain historical data but data cleanup may be limited

•  Data quality and impact on Financials

•  Vary depending on the desire for business improvement

•  Project scope

•  Risk tolerance to add new modules •  New features and modules stability

•  Upgrade “as is” vs. upgrade with business process change

•  Feasibility to change the business

•  Possibly shorter implementation cycle depending upon WRICEP elements

•  Time table

•  Upgrade cost vs. feature benefits •  Project cost

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Direct Upgrade Considerations – New Technology

•  New tech stack will affect any existing sub-systems, e.g. database link for 11g to 8i via 10g

•  Impact on other sub-systems

•  Determine if existing hardware will support new tech stack - network bandwidth requirements are similar but more web based traffic.

•  Impact on existing hardware and network

•  New BI Publisher PDF printing may affect printers, e.g. postscript printers

•  Impact on existing printers

•  Change of data table structures and new MOAC virtual private database approach instead of “CLIENT_INFO” DB variable

•  Impact on existing WRICEP elements

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Direct Upgrade Considerations – Staffing •  New features, new data entry screens, new technology such as BI Publisher, Java for OAF screens, etc.

•  New skills needed

•  Focus on just delta training •  New user training

•  New business process and procedures with new upgrade

•  New procedures

•  Dependent upon your timeline, project budget and your in-house expertise - may use outside temporary help to backfill the staff and let the in-house staff participate in the new project

•  Outside vs. in-house resources

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Direct Upgrade – Final Thoughts! Ø  Depending upon your current environment, you will need to patch to

the current recommended level before applying the main upgrade patches. This will require a test phase.

Ø  Cleaning up data before the upgrade can help with upgrade performance. For example, address information for legal entities.

Ø  Follow all applicable pre/post upgrade steps in the Oracle documentation.


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Re-implementation Considerations – Business Value

•  Not much historical data but perhaps better data quality

•  Data quality and impact on Financials

•  Usually is larger than direct upgrade •  Project scope

•  Risk tolerance to add new modules (Same as direct upgrade)

•  New features and modules stability

•  Address the commitment to change before this decision is made

•  Feasibility to change the business

•  Relatively longer implementation cycle •  Time table

•  Re-implementation cost vs. new business process benefits

•  Project cost

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Re-implementation Considerations – New Technology (same as direct upgrade)

•  New tech stack will affect any existing sub-systems, e.g. database link for 11g to 8i via 10g.

•  Impact on other sub-systems

•  Determine if existing hardware will support new tech stack - network bandwidth requirements are similar but more web based traffic.

•  Impact on existing hardware and network

•  New BI Publisher PDF printing may affect printers, e.g. postscript printers

•  Impact on existing printers

•  Change of data table structures and new MOAC virtual private database approach instead of “CLIENT_INFO” DB variable

•  Impact on existing WRICEP elements

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Re-implementation Considerations – Staffing

•  New features, new data entry screens, new technology such as BI Publisher, Java for OAF screens, etc. (Same as direct upgrade)

•  New skills needed

•  May require brand new training depending on the change impact.

•  New user training

•  New business process and procedures with new upgrade. (Same as direct upgrade)

•  New procedures

•  Usually need some outside resourcing assistances if one wants take advantage of the best practice to configure the system.

•  Outside vs. in-house resources

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Re-implementation – Final Thoughts! Ø  Don’t fall for the “It’s Ok to add this new scope because this is a new

implementation” scope creep hole.

Ø  How are you planning on reporting the historical data with new data? Ø Oracle Business Intelligence products will be very helpful here

with some of the pre-built applications. However, the OBIEE project timeline needs to be in sync with the main project.



Utilizing Other Oracle Technologies Ø  Application Integration Architecture (AIA)

Ø This is an Enterprise Application Integration (EAI) tool based on the Oracle SOA Suite 11g technology, a WebLogic product acquired by Oracle

Ø This product provides many pre-built Application Adapters such as those for PeopleSoft/SAP/Oracle E-Business Suite

Ø This tool can be used to help build any integration with various systems during the Re-implementation. This tool is especially handy if you need to run R11i and R12 in a parallel mode. This tool may be used to transfer data between the two environment with some pre-built adapters

Ø The Oracle SOA Suite 11g is also the foundation integration tool used by Oracle Fusion Applications



Utilizing Other Oracle Technologies Ø  Oracle Business Intelligence Enterprise Edition (OBIEE)

Ø This is an Enterprise grade Business Intelligence product Ø The product is based on Siebel Data Warehouse Analytic platform

that covers the entire data warehousing life cycle such as ETL and tools for report building

Ø There are additional Pre-Built Analytic Solution Pack such as Financials Analytic that the user can purchase to speed up the development effort

Ø The product can be used to consolidate data from R11i and R12 during the Re-implementation when the two environments are running in parallel for a phased roll-out process



Decision Factors - Review Considerations Risks Upgrade Re-impl.

•  Business Value •  Data Quality and Impact on Financials •  Project Scope •  New Features and Modules Stability •  Feasibility to change the business •  Time Table •  Project Cost

X ü  ü  X ü  ü 

ü  X ü  ü  X X

•  New Technology •  Impact on other sub-systems •  Impact on existing hardware and network •  Impact on existing printers •  Impact on existing WRICEP elements

ü  ü  ü  ü 

ü  ü  ü  ü 

•  Staffing •  New Skills Needed •  New User Training •  New Procedures •  Outside vs. In-House Resources

ü  ü  ü  ü 

ü  ü  ü  X



Upgrade vs Re-implementation ROI Considerations

Ø  IT Staffing, Skill Set Impact and Direction Ø  Internal or outsource Ø  Training or new hire Ø  IT future growth goal is expansion or limited

Ø  Business Process Re-engineering Benefits Ø  Internal or outsource Ø  End user process improvement involvement

Ø  Data Cleanup Ø  Data retention requirements for quality or financial Ø  Accuracy and reporting Ø  Disk space reduction



Questions and Answers

oracle r12 decision points: upgrade vs re- · pdf fileoracle r12 decision points: upgrade vs...

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