A Primer on Upgrading to 11i

New York, NY

September 21, 2004

New York Metro Area User Group Day

Heidi Zee, Director of Service Quality

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Contents

Background

11i Upgrade Considerations

11i Upgrade Approach

Case Studies

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Background

Heidi Zee• Director of Service Quality – methodology, risk mitigation, project

troubleshooting• 10 years experience implementing Oracle Applications at PWC and

IBM• Global implementations and rollouts, business process improvement

ThoughtDigital• Oracle E-Business Suite focused consultancy• Offices in New York, Redbank NJ, Reston VA, Pittsburgh PA• 40 consultants with an average 10 years E-Business Suite

experience• 70% Full-lifecycle implementations• 30% re-implementation/upgrades• Certified Oracle Partner

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11i Upgrade Business Drivers

Newer release of Oracle has enhanced functionality which can:

• Automate additional business processes

• Eliminate cost and maintenance of custom functionality

Change in business model:• Chart of accounts redesign

• M&A activity

• Centralized business systems

Oracle no longer supporting current version of module or application

Instance consolidation

Sarbanes-Oxley requirements

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11i Upgrade vs. Re-implementation?

What’s the difference?

• Upgrade• Same platform• Apply patches• Run through upgrade checklist• Validate customizations still apply• No changes to flexfield structures

• Re-implementation• Different platform• Similar to implementation• Validate customizations still apply

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11i Upgrade vs. Re-implementation? (cont’d)

Upgrade if possible

Re-implementation is necessary when:• Business

• Significant change in business model• Consolidation of business units• Opportunity to change business process• How important is transaction history? – if hasn’t changed much,

then just upgrade• Evaluate timing of initial implementation – business changes

• System• Change key flexfields• Take advantage of certain functionality which requires very

different configuration:• Turn on average daily balance• Encumbrance accounting (budgetary control)• Intercompany – adding a new segment

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Preparing for the Upgrade

When to start planning for the 11i upgrade• Business drivers• Experienced user base, looking to leverage new

functionality• Typically assess 3-5 years after initial implementation

How to build internal support for the 11i Upgrade • Executive sponsorship

• Business improvement project – not an IT project• Executive sponsor from the business side

• Gain input from the user base, get initial buy-in from those who are most affected

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Developing an Effective Upgrade Plan

Important planning considerations• Treat all activities like a new implementation• Resources who understand both releases• Understand the customizations

• Full catalog – make sure you don’t leave anything behind• 11i functionality eliminate need to carry over

• Training• Testing, testing, testing• Strong database administration skills (upgrade, not re-imp)

Key components of an effective plan• Enough time to assess business processes and confirm

business requirements• Enough time for testing of functional upgrade, technical

customizations, and integration testing• A minimum of three iterations of the upgrade cycle (upgrade,

not re-imp)

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Upgrade Risks

Identifying risks means understanding your environment - be honest• People

• Time commitment - is the staff able to support and contribute to an upgrade?

• Oracle “fluency” – are they ready to take on more functionality and potential complexity?

• Processes• Effectiveness of current business processes - are things working

properly?• Timing for the business – is this going to coincide with a particularly

busy time of year for sales?• Technology

• Current issues with functionality or user performance - does the current system support the business needs?

• Database and operating system growth - can it handle changes required by an upgrade?

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Upgrade Risks (cont’d)

Production outages - upgrades require production outages during cutover

Oracle patches – upgrades rely heavily on patches and potentially Oracle Support

Risk mitigation strategies• Track risks upfront before they become issues• Communicate expectations and timing sooner rather than later• Be clear about TAR’s management and Oracle Support

relationship• Budget enough trials to accurately estimate Production cutover

timeline• Budget enough resources and time to migrate complex

customizations if necessary

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Implementation Approach

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Implementation Approach

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Upgrade Approach

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Case Studies

Comcast Cable

Webster Bank

New Line Cinema

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Case Study - Comcast Cable

Client:• Largest cable company in the world with approximately 22

million subscribers• Key Business Driver - Oracle de-supporting 10.7 character• Over 1200 users

Timeline:• 2003 – initial upgrade planning, prototype developed as

upgrade proof of concept (sample of each business unit, re-implemented)

• 2004 – upgrade from 10.7 to 11.5.9

Project Highlights:• Reimplementation• GL, AP, PO, INV, PA, FA• 8 months, 5 people

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Case Study - Comcast Cable (cont’d)Challenges:• Buy $4 billion in capital expenditures, no systematic process to

track/control• $130 billion assets managed by spreadsheet – conversion, design

FA process• Conversion volumes – tuning, rewrote standard imports

• 18 million journal lines• 300,000 PO lines• 1 million inventory items

• 3 million AP invoices processed annually – maintain controls, seamless transition

Results:• Streamline capital purchase process• Eliminated custom application (10.7) leveraging standard 11i

functionality• Considerably improved conversion metrics (e.g. item import 80

hours 16 hours) – minimal break in production during cutover

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Case Study - Webster Bank

Client:• Webster Bank regional commercial and retailing banking

institution in CT• $16 billion in assets• Key Business Driver - leveraging New Release 11i

Functionality

Timeline:• Late 1990’s – initial Implementation• 2003 – upgrade from Release 11 to 11.5.9

Project Highlights:• Upgrade – not reimplementation• Extensive User Workshops• GL, AP, FA, iExpenses• 10 weeks, average 3 consultants

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Case Study - Webster Bank (cont’d)

Challenges:• Lack of formal documentation• Data corruption problems - required resolution by

ThoughtDigital before the upgrade could be performed• Redesign i-Expense workflow process for over 1500 users

Results:• Upgrade performed without disruption to Webster’s

ongoing operations• Effectively implemented many new Release 11i features

and processes• Eliminated customizations to simplify Webster’s new

environment

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Case Study - New Line Cinema

Client:• NewLineCinema distributor and producer of theatrical films,

division of Time Warner • New Line Cinema Home Video, Marketing business units• Key Business Driver - staying current with technology

Timeline:• 2000: initial implementation 11.0.3• 2004: upgrade 11.5.9

Project Highlights:• Upgrade – not re-implementation• GL, AP, CM, PO, FA, PA • 20 week project, average 3.5 TD resource• 4 upgrade iterations

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Case Study - New Line Cinema (cont’d)

Challenges:• Windows NT platform – limited documentation or

troubleshooting support• 170 systems for imaging (scanned/attached AP invoices) –

highly customized• “Rapid PO” customization – complex custom user interface

not migrated, but recreated to leverage new 11i functionality and maintain simplicity of use

Results:• Users found “Rapid PO” more user friendly and intuitive

than before• Upgraded to more stable 11.5.9 environment – allows to

expand the Oracle footprint to include additional business processes and business units

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Question and Answers

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Thank You

Heidi Zee

ThoughtDigital

Director of Service Quality

(212) 590-2553

heidi.zee@thoughtdigital.com