r12 --- a big step forward prepared for norcaloaug january 17, 2008 partnership for success october...
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R12 --- A Big Step Forward
Prepared for NorCalOAUG
January 17, 2008
Partnership for Success
October 12, 2007
2 • 10/12/07Proprietary and Confidential
About XsigoAbout NaviSiteXsigo Project Objectives & Decision ProcessScope of the ProjectImplementation ApproachR12 FeaturesWhat Worked WellWhat Did Not Work So WellUpgrade ConsiderationsSummary
About XsigoAbout NaviSiteXsigo Project Objectives & Decision ProcessScope of the ProjectImplementation ApproachR12 FeaturesWhat Worked WellWhat Did Not Work So WellUpgrade ConsiderationsSummary
3 • 10/12/07Proprietary and Confidential
About Xsigo
• Founded 2004 • Location:
– Sunnyvale, CA
• Funding– Kleiner Perkins,
– Greylock Partners,
– Khosla Ventures
– Juniper Networks
• Board members include:– Ray Lane: Former President, Oracle
– Mark Leslie: Co-Founder, VERITAS
– Vinod Khosla: Co-Founder, Sun
– Ashok Krishnamurthi: Founding team at Juniper
“Xsigo offers a compelling solution that delivers I/O virtualization. Solutions like this will enable greater flexibility and change the way organizations deliver IT services.”
- John Humphreys, IDC
4 • 10/12/07Proprietary and Confidential
VP780 I/O Director24 Server ports•Expansion switch available for connection to hundreds of servers
15 I/O module slots• 4 X 1Gb Ethernet• 1 x 10Gb Ethernet• 2 x 4Gb Fibre Channel• SSL offload module
Hardware-based architecture• Fully non-blocking fabric• 780 Gb/s aggregate bandwidth
4U height
Redundant hot swappable fans and power supplies.
Custom silicon• Line rate throughput
5 • 10/12/07Proprietary and Confidential
How Xsigo Helps
70% fewer cables, cards.No edge switches.
Without Xsigo With Xsigo
6 • 10/12/07Proprietary and Confidential
About NaviSiteAbout NaviSite
7 • 10/12/07Proprietary and Confidential
NaviSite – Fast Facts
• Founded in 1997
• Employees: ~700
• Customers: ~ 1400
• Bay Area Office: San Jose
• Other major offices
– Key Offices: Andover, Houston, Atlanta, Chicago, New York, London
– West Coverage: San Jose, Portland/Seattle, Los Angeles, Denver
– Offshore Operations: India - New Delhi
• Data Centers
– 16 facilities around the globe (including Las Vegas, LA, San Jose, San Francisco)
– N+1 Redundancy in All Critical Systems
– SAS 70 Type II Certified
Visit us at: http://www.navisite.com/
8 • 10/12/07Proprietary and Confidential
Services Overview• Hosting Services
– Application Management (Oracle, 3rd Party, Custom Apps)– Managed Messaging – Managed Services for IT Infrastructure– Content Distribution– Dedicated Web Hosting– Co-location Services
• Professional Services– Planning, Implementation, Upgrades, Maintenance, Optimization,
Compliance/Governance• Technology: Architecture, Infrastructure, BI, DWH and Security• Applications: Oracle Application Products
• Outsourcing Services– IT Planning Services– Custom Application Development & Management Services– Software QA and Testing
9 • 10/12/07Proprietary and Confidential
Hosting Services at a Glance Hosting Services at a Glance
Hosting & Application Management Delivery Team
Managed Applications
Demantra/Agile/
HyperionOracle Siebel PeopleSoft JDE
Capabilities
Client/Account Management
Support (Level I – III)
Application Management
Upgrades PatchingSystem
Enhancements/Customizations
10 • 10/12/07Proprietary and Confidential
Professional Services Offerings at a Glance
Program & Project Management
Business ConsultingSystem Selection Process
Enterprise Technical Architecture
ERP and CRM System Implementation and Transformation
Applied Technology Services (Custom Development, Conversions, Interfaces)
Adoption & Learning
Health check &Assessment
SOX - Compliance &Governance
UpgradeConsolidation
M & ASpin- Off
EnterpriseBusiness
Intelligence
OptimizationServices
Change Management
Global Delivery Global Roll Out
Man
aged
Services
Ind
ust
ry B
ased
So
luti
on
s
PEOPLE• Right blend of product knowledge,
business / Industry experience and
consulting skills• Global Presence
PROCESS• Use Oracle’s AIM Methodology• Establish a Global Business Model• Facilitated Workshops Approach
TOOLS• Utilize Process Flows Approach• Use tools and templates for rapid
deployment
Core Technology Services (Database, Middleware, Messaging, Security, Enterprise Management)
Enterprise Business Process ExecutionData Hubs / Data Consolidations
Business ContinuityHigh Availability / Disaster Recovery
11 • 10/12/07Proprietary and Confidential
Xsigo Project Objectives & Decision Process
Xsigo Project Objectives & Decision Process
12 • 10/12/07Proprietary and Confidential
Prior State of ERP: August, 2006
• Development stage company• Running 3rd tier ERP
– Order Entry, MRP, Financials
• 3rd party products spec’d for CRM, configurator, etc..– Integrated via middleware– No solution for installed base, fixed assets– Limited global capabilities
• Desire to build ‘Best in class IT infrastructure’– Significant functional expectations across the business
• Rapid global growth expected
13 • 10/12/07Proprietary and Confidential
ERP Decision Drivers
• Strong functionality• End to end enterprise management and reporting• Jump-start best in class business processes• Build foundation for global growth• Lowest total cost of ownership• Partnership with ERP vendor and Integrator
14 • 10/12/07Proprietary and Confidential
ERP Alternatives Considered
• Plan of record: Tier3 ERP + other 3rd parties + middleware– Requires upgrade to Tier1 in 12-18 mo.
• Tier 2 applications– Requires upgrade to Tier1 in 24 mo.
• Tier 1 applications– Higher cost in near-term
15 • 10/12/07Proprietary and Confidential
Initial Decision: Oracle 11.5.10 + Navisite
• Lowest total COO:– NPV of Oracle/Navisite solution 5% -25% lower than
other alternatives– Far less business disruption implementing now vs.
upgrading later
• Best in Class business templates– Lower implementation cost– ‘Quantum Leap’ in process & controls– Shortens path to SOX 404 compliance
• Hosted by Navisite• After first month (coinciding with the Oracle R12
release), decision changed to deploy R12 based on new functionality and Xsigo's commitment to stay with state of art technology.
16 • 10/12/07Proprietary and Confidential
Decision to move to R12
• Nov 06: Decision finalized on Oracle• Jan 07: Project started with 11.5.10
– R12 not available until late January
– Original go-live planned for April 1, 2007
• Course change in Feb 07: implement R12– Key new/improved functionality:
• Greatly improved UI (esp. in CRM Modules)• Pre-delivered report templates• Other technology enhancements (HTML, etc.)
– Avoid costly and time-consuming upgrade in 12-15 mo.
• Added 1 month to schedule: went live on schedule May 4, 2007
17 • 10/12/07Proprietary and Confidential
Scope of the ProjectScope of the Project
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Major Implementation
• 20 business applications• 36 business workflows• First R12 deployment in North America
– 2nd worldwide (‘Like Avis: We try Harder!’)
• 3 ½ months from kickoff to go-live– 5 months from contract signing
19 • 10/12/07Proprietary and Confidential
Scope SummaryScope Summary
Business Area Oracle Business Flow Oracle Applications
Accounting
Accounting to Financial Reports
GL, AP, FA, AR, CM
Procure to Pay PO, AP, iExpense, iProcurement, iSupplier
Manufacturing Design to Release ENG, INV
Forecast to Plan MRP, OM
Sales Click to Order iStore, OM, INV
Order to Cash OM, BOM, INV, AR, PO
Opportunity to Forecast Sales, Quoting
Service Service Contract to Renewal Service Contracts, OM
Click to Resolution iSupport, Service Contracts, Teleservice
Human Resources
Hire to Retire Core HR
• 36 Oracle Business Flows:– Manufacturing: 13 – Sales and Service: 12– Accounting: 9 – HR: 1
20 • 10/12/07Proprietary and Confidential
Business Transactions
Mfg Forecast
MDS
MPS
Planned Order
Returns ServiceShipSell BuyPlanDesign
Item
BOM
ECO
Design Graphics
Req
PO
Receipt
Asset
Payment
Lead
Oppty
Sales Forecast
Quote
Contract
Order
Pick
Pack
Ship
Invoice
Service Request
Contract Renewal
RMA
AE
The key Oracle data objects & transactions:
21 • 10/12/07Proprietary and Confidential
Oracle Solution Footprint
Resellers
Oracle Applications
SalesLeads, Oppty,
Quotes, Service Contracts, Order,
Marketing, Proposals
Service Service Requests,
Returns
ManufacturingDesign, Plan, Manage &
Value Inventory, Procurement
A/R
General Ledger
Vendors
Supply ChainMake to
Specification
Distributors/Customers
Distributor
SalesRep Orders,iStore, Partner Mgmt,
iSupport, Returns
End Customer
Reseller
Future=
Purchasing, A/P, FA
April 1: for all Oracle products but iStore, Marketing, Proposals, Partner Mtgmt, Ebusiness for Financials
Order Management
Pick/Ship, Returns
Human Resources
ship
22 • 10/12/07Proprietary and Confidential
Architecture: Hardware
• Single Node• HP Linux server• 12 GB RAM• 4 CPUs @ 2.2Ghz
Database Tier
• 3 SUN V240 Servers• 2 x 3 CPUs @ 1.2 GHz• 8GB RAM• N + 1 Load Balance
Architecture
Middle Tier
• EMC Clarion CX300• 500GB Storage• Raid 1+0 for production• 1 Hot spare• N+1 Power Supply
Storage Tier
• iSupport, iExpenses• iStore, IProcurement
i-application Tier
23 • 10/12/07Proprietary and Confidential
Architecture: Technology StackTech Stack Component Version
Database 10.0.0.2
Oracle Applications 12.0
Application Server 1.0.2.2.2
J-Initiator 1.3.1.25
Portal 10.1.2
OID 10.1.2
24 • 10/12/07Proprietary and Confidential
Implementation ApproachImplementation Approach
25 • 10/12/07Proprietary and Confidential
We employed a proven implementation approach to accelerate implementation and mitigate project risk
• NaviSite provided the right blend of product knowledge, business experience and consulting skills.
• The project organization model optimized Xsigo / NaviSite resource mix.
• The Project Management Methodology has an integral component for risk identification, tracking and mitigation
• We established a Business Model Facilitated Workshops for key decisions
Established a common understanding of Xsigo Systems business model and process flows
• Leveraged Business Flows to:
Stimulate discussion of business requirements
Review leading practices and best use of Oracle applications
Establish an initial Conference Room Pilot
• Use of Accelerators with AIM for Business Flows tools, templates
PEOPLE
PROCESS
TOOLS
CostCost
TimeTime
QualityQuality
Achieving a balance between time, quality,
and cost
26 • 10/12/07Proprietary and Confidential
Utilize Standard Templates
Determine ExceptionDispositions
Update Flows
Update Procedures
Update Setups
Update Test Script
Prepare CRP 3.0Environment
Conduct CRP 3.0
Identify Exceptions
Determine ExceptionDispositions
Update Flows
Update Procedures
Update Setups
Update Test Script
Prepare CRP 2.0Environment
Conduct CRP 2.0
Identify Exceptions
Definition Build ProductionTransitionElaboration
Project Planning
ConductCRP 1.1
(Familiarization)
ConductCRP 1.2
(Mapping)
Identify Exceptions
ConductBusiness
Architecture Workshops
DesignExtensions
PrepareCustom
Test Scripts
Create and test Custom
Extensions
PrepareProduction
Environment
Convert and Verify Data
BeginProduction
MaintainSystem
ProposeFuture
Direction
Perform SystemsIntegration
Test
PerformAcceptance
Test
Using standard templates as baseline and minimizing exceptions allowed for a 3 ½ month implementation
27 • 10/12/07Proprietary and Confidential
Project Team
• Executive/Board Buy-in• Steering Committee:
– VP Operations, VP Finance, VP Support
• Implementation Team:– Functional ‘Power Users’ - 8
• Operations• Accounting/Finance• Sales
– IT: Director & Progr/Analyst– Navisite:
• Project Lead• Consultants 6-7
Total – 18 people
28 • 10/12/07Proprietary and Confidential
R12 FeaturesR12 Features
29 • 10/12/07Proprietary and Confidential
R12 Features used at XsigoR12 Features used at Xsigo• Costing
– Deferred COGS - defer COGS and recognize at time of Revenue Recognition
• Sales– Create leads and opportunities directly from the customer record
– Email Interactions: Oracle Sales for Handheld, e-mails sent or received using Outlook are logged in Interaction History for Contacts and Customers
• Sales Offline– Mobile users can create/update leads, opportunities and quotes while out in
the field and synchronize the new lead information back to the database.
• Sales for Handheld– Create and manage appointments and contacts via MS Outlook for
synchronization up to the database
– Create and manage appointments and contacts via the database for synchronization to the database MS Outlook.
30 • 10/12/07Proprietary and Confidential
R12 Features used at XsigoR12 Features used at Xsigo
• Purchasing– Professional Buyer’s workcenter – easier user interface with all a buyer needs
in one html form - Autocreate PO, create and query PO’s and blankets
– Professional Buyer’s workcenter shares the catalog with iProcurement
• Payables– XML for AP checks
– Payment workbench – easy to see status of job, next step and payment statistics
• iSupplier Portal– New supplier onboarding process as well as supplier managed user
maintenance
• Teleservice– New HTML Customer Support Dashboard with work list
• Xsigo preferred over Universal Work Queue because of it’s ease of use and ability to pick SR’s and Task’s from Group Queue
31 • 10/12/07Proprietary and Confidential
R12 Features used at XsigoR12 Features used at Xsigo• Service Contracts
– Approvals Management pulled out of Service Contracts and now contained in "Common" location and shared across modules
• Helped consolidate approvals management process, provided greater flexibility in assigning appropriate approver
– HTML Renewals Dashboard allowing users easy access and viewing of contracts available for renewal
• Light use currently, but in the future will give Contract Renewals manager central dashboard to view contracts up for renewal, which assists the automatic notifications that are generated from Service Contracts up for renewal
• iSupport– Enhanced Self Service Registration to leverage shared iStore user interface
• Very helpful in getting Xsigo the user registration they desired, and it is fully compatible with future iStore needs
– Ability to group Case/Request Types into Case/Request Type Categories for Logical display in iSupport
• Allowed Xsigo to categorize the Service Request types which greatly enhanced the “usability” for customers
32 • 10/12/07Proprietary and Confidential
R12 Features used at XsigoR12 Features used at Xsigo• Install Base
– Entirely new HTML user interface...dramatically improved functionality• This was critical at Xsigo, they found 11.5.10 to be virtually unusable in it’s former state. New
functionality provides; breadcrumbs to return to higher level information, significant increase in instance data organization, which allowed for easier user understanding and training, easier to build and display Item configurations (think ATO)
– Increased integration across Service Contracts, Teleservice, OM and Field Service allowing easy instance creation, update and transfer
• This was used across the spectrum for Xsigo to view Install Base properties, and will be utilized in the future as their Install Base matures and requires greater product maintenance
• Knowledge Management– Allows users to search for unstructured content stored in external locations such as files
servers.• Xsigo planned to take advantage of this in the future when they load specs and documents on
Chassis
– Extended Search capabilities to utilize the commonly used double-quotes "Search" • Xsigo really needed this enhanced search capability to locate relevant “solutions” stored in the
Knowledge Repository
33 • 10/12/07Proprietary and Confidential
What Worked WellWhat Worked Well
34 • 10/12/07Proprietary and Confidential
What Worked Well• Solid Partnership between Oracle, Navisite and Xsigo• NaviSite Consulting Services
– Excellent team of consulting resources– Very knowledgeable about the Oracle modules/flows
• NaviSite Hosting Services– Effective 24x7 support; Xsigo did not need to employ a DBA– “One neck to choke” with Navisite providing both hosting & consulting
• Resources & Support from Oracle– Due to R12, Oracle assigned a critical account manager– CAM helped facilitate direct communication with development
• Xsigo– Strong executive support– Strong commitment to go “vanilla”– Dedicated resources
35 • 10/12/07Proprietary and Confidential
What Worked Well – cont’dBenefits from Oracle ERP
• Integration across the enterprise• Sales force and support automation• Highly functional customer portal• Global capabilities• Common skillset• Consistent, accurate and timely reporting• Automated Workflow
36 • 10/12/07Proprietary and Confidential
What Did Not Work So WellWhat Did Not Work So Well
37 • 10/12/07Proprietary and Confidential
Lessons Learned
• User Uptake of Oracle– First Time Users
– Understanding Oracle terminology
• User Acceptance Testing– User testing should have incorporated additional time for training and
testing
• Super User Staffing– Small company, big Oracle footprint
– User churn
• Sequence of implementation– Should not have deferred tax to late in the project
38 • 10/12/07Proprietary and Confidential
Limited to Zero Sev 1 issues in Production
• As expected, we experienced issues“It felt like we were the 1st company to go live on R12!”
• Strong support from Oracle & Navisite
• Issues in post production were resolved quickly
0
5
10
15
20
25
30
Reported Open
Sev1
Sev2
Sev3
39 • 10/12/07Proprietary and Confidential
Upgrade Considerations
40 • 10/12/07Proprietary and Confidential
R12 Upgrade Paths
Refer: Oracle Applications Upgrade Guide: Release 11i to Release 12, Part No. B31566-01
41 • 10/12/07Proprietary and Confidential
Upgrade Considerations
• Are you at version 11.5.7 or higher?– If yes, you may upgrade directly to R12 based on your business situation– If no, since you have to first upgrade to 11.5.10.2 before upgrading to R12, you may
want to consider re-implementation as well, particularly if you have lots of extensions / customizations
• Consider implementing significant technical advances available in R12 for business benefits you may need
– 100% Active-active High-Availability and Scalability using Oracle Database Cluster (10gRAC) and Oracle Applications Cluster with Load-balancing
– Complete Business Continuity and Disaster Recovery using Oracle Database Physical DataGuard across remote data-centers
– Support for Oracle Automated Storage Management (ASM) for a variety of storage solutions
– Support for Advanced Security for External Users (e.g. for iSupport Portal)
• At least 2 complete cycles of successful test upgrades suggested before production cutover for upgrade
• If you need to change Operating System (e.g. Unix to Linux, or Windows to Unix/Linux), add another successful test cycle
42 • 10/12/07Proprietary and Confidential
SummarySummary
43 • 10/12/07Proprietary and Confidential
In Summary…
TCA Is Here To Stay
Tax Engine is Much Different
XML is Great
Technical Installation Is Much Quicker
Richer functionality in Financials and Procurement
R12 is the right direction….
44 • 10/12/07Proprietary and Confidential
Contact Information
Pete WolffeSenior [email protected]
Navisite, Inc2720 Zanker Rd.San Jose, Ca. 95134 650.823.0929 (Cell)
www.navisite.com