Upgrade to Oracle E-Business - Sonata · PDF file1 INTRODUCTION Oracle E-Business Suite R12 is the latest version of the ERP solution from Oracle which is a significant upgrade on

TRANSITION TO NEXTGENERATION APPLICATIONSFrom Dilemma to Decision

Ifath IlyasLead – Oracle ApplicationsSonata Software Limited

Upgrade to Oracle E-Business Suite R12

The world continues to change, even more now, in a way that is unseen. The fiercely competitive global market and ever turbulent economies are forcing modern enterprises to equip themselves with the latest tools of trade as well as persistently innovate and enhance operational competence to stay ahead in the global race. Enterprises today need systems that are scalable, flexible, secure and stable to keep pace with the competitive marketplace.WHITEPAPER

1. INTRODUCTION

2. WHAT IS THE BUSINESS VALUE OF UPGRADING TO R12?

3. R11i DE-SUPPORT RISK? RUNNING AN OUTDATED ERP VERSION?

4. UPGRADE? OR RE-IMPLEMENT?

5. BUDGET REQUIREMENTS?

6. HOW TO ENSURE BUSINESS CONTINUITY? HOW TO GUARANTEE A SMOOTH CUT-OVER TO PRODUCTION?

7. IS THERE AN OPTION OF MOVING TO A GLOBAL SINGLE INSTANCE? WILL IT REDUCE COST?

8. CAN CORE CHANGES BE MADE TO EXISTING COA OR ORG STRUCTURE ALONG WITH UPGRADE?

9. WILL EXISTING CUSTOMIZATIONS BREAK?

10. ARE THERE ANY TOOLS THAT WILL ANALYZE AND ASSESS TO HELP MAKE BETTER INFORMED DECISIONS WITH FACTS AND FIGURES?

11. CONCLUSION

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TABLE OF CONTENTS





1INTRODUCTIONOracle E-Business Suite R12 is the latest version of the ERP solution from Oracle which is a significant

upgrade on the widely used Oracle EBS 11i. EBS R12 offers extensive operational and functional

improvements over EBS 11i. To keep pace with changing market dynamics, it is imperative for

organizations running their ERP on EBS 11i to reassess and look for ways to maximize their ROI on

Oracle ERP by opting for Upgrade to EBS R12 and stay up to date with latest functionalities and

capitalize on crucial performance improvements that R12 offers.

While upgrade means that it is a necessary step forward for organizations, most customers are often

faced with dilemma when considering an upgrade. Questions that characterize this dilemma can be

many and may cloud upon the ultimate goal of long term application strategies to realize maximum

return on their new and existing Oracle investments, to take advantage of Oracle’s offer of greater

value and new advantages for business with each new version of EBS being released.

These questions can effectively be addressed by choosing the right experts who will help in wending

one’s way through to a tailored upgrade roadmap which fits you best. This helps in identifying one’s

business drivers that necessitate an upgrade which help one move ahead when all questions are

answered adequately.

This whitepaper aims at answering some of these pressing questions and help one to be more

knowledgeable to take strategic decisions.

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WHAT IS THE BUSINESS VALUEOF UPGRADING TO R12?2

Unlike common perceptions, EBS R12 isn’t just old wine in a new bottle. The overall value proposition

of R12 upgrade is huge and covers various aspects of what is needed to run ERP more efficiently. Its

major Financials initiatives feature Ledger and Ledger Sets, Multi Org Access Control (MOAC),

Subledger Accounting, Tax Engine, changes to Bank Model etc. It also offers enhancements to many

product areas and also many new products.

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R12 offers opportunities to eliminate customizations with its enhancements and new products.

It offers greater flexibility to fit the business needs and paves the way for opportunities in

automation and process improvements. With the launch of newer products within R12, adding

these and using them will come at a low cost since the implementation that is already done is

being leveraged.

R12 is also Oracle Fusion Middleware certified, which means that most of the tech stack is based

on new open standards based technologies, which is the way forward for all systems and

applications to move away from proprietary tools and technologies.

Upgrade can also be combined with other long awaited system changes like architectural

changes to business, database or operating system upgrade, platform migration etc. This can be

planned with proper phasing and scoping to maximize results.

1.3 Market Chat

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R11i DE-SUPPORT RISK?RUNNING AN OUTDATEDERP VERSION?3

Oracle’s Lifetime Support policy provides access to experts for as long as the Oracle products are

licensed. This support consists of 3 stages – Premier, Extended and Sustaining Support. With EBS 11i

now on Sustaining Support, it is time to take control and put the upgrade strategy in shape. Although

Sustaining Support is available for as long as the products are licensed, it does not include many of the

necessary features that might be needed to keep the ERP up and running for long.

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Apart from these, there may be a need to freeze the desktop and server configurations to be able to

run EBS 11i for a longer time in future. New versions of desktop or server-based components may not

function well with 11i.

Things will get more complicated while considering individual components of the EBS 11i tech stack

components like Oracle Database, Reports and Forms etc.

Establishing the target release of R12 to move to is of prime importance. Consider the support stages

and the features offered in various R12 releases to determine the best suited version of R12.

It is important to take necessary steps forward to migrate to an updated release version sooner so that

organizations have time to keep pace with industry’s leading practices and not just be a part of

the race but also excel further to stay ahead.

According to Oracle Lifetime Support Policy for Oracle Applications, Sustaining Support does not

include

Updates, fixes, security alerts,data fixes, and critical patch updates

New tax, legal, and regulatory updates

New upgrade scripts

Certification with new third-party products/versions

Certification with new Oracle products

2 Product Of IOT And Real Time Business Intelligence

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UPGRADE?OR RE-IMPLEMENT?4

Organizations can upgrade if satisfied with core Financials configurations such as Chart of Accounts

definition, Costing Method, Calendar etc.

Upgrade is ideal for organizations running a single instance of EBS and using standard business proc-

esses with minimal customizations. It is also best suited when all historical transaction data needs to be

carried forward.

On the other hand, organizations can consider re-implementation if dissatisfied with core Financials

configurations. If multiple instances need to be combined into a new Global Single Instance,

re-implementation is an option, though this can be achieved with a hybrid upgrade model too.

In practice, upgrades are opted against re-implementations by most enterprises.

If Sustaining Support for EBS 11i has been purchased, Oracle guarantees providing access to its experts as

long as the products are licensed.

R12 focuses on standardizing and simplifying, with focus to achieve rapid returns. R12 promises substan-

tial value in every product area. Upgrade to R12 is free and Oracle will provide support as long as licenses

are valid.

Budget considerations while choosing a partner, amassing the right project team, allocating necessary

time, resources and funds, establishing target timelines play a crucial role in achieving returns. It is impor-

tant to evaluate the scope and complexity of the instance and customizations in every stage of planning.

Budget planning should also cover full functional testing at full data volumes with complete production

data set. Automated testing tools should be planned if deemed necessary.

BUDGETREQUIREMENTS?5

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6HOW TO ENSUREBUSINESS CONTINUITY?

HOW TO GUARANTEE ASMOOTH CUTOVER TOPRODUCTION?

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Tips for ensuring business continuity

Choose the right partner for upgrade who will guarantee that daily business is not affected during the process of upgrade

Choose a partner who shows the most promising

and quality delivery

Share the requirements andwork through to come upwith the best strategy tokeep afloat both businessand the upgrade process simultaneously

Assess the organizational change requirements that may arise due to

upgrade and prepare for it to be implemented at the right time

during the project life cycle

Motivate and manage the busi-ness users to learn and adapt to

the new ways of working after upgrade

These have to be started early in a project to achieve best results.The following set of suggestions can be considered for a smooth cutover to Production:

Being prepared for all eventu-alities is the best strategy - Critical processes should be performed thoroughly during UAT to eliminate and resolve

exceptions

Production cutover should be carefully planned to ensure that it does not clash with critical closing activities or peak

business timelines

Minimize the duration of tasks performed before and after core upgrade processes are run on the production

environment

Use recommended down-time reduction techniques and consider use of tools to drive greater end-user

productivity

Work on early adaptation of new features so that there are no qualms when they are actually put to use in daily

live business

Careful planning and execution paired with extensive testing and minimum downtime will guarantee a smooth cutover to Production and then institute

stability of ERP there on

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7 IS THERE AN OPTIONOF MOVING TO A GLOBAL SINGLE INSTANCE? WILL IT REDUCE COST?

Merging of many instances into a Global Single Instance during an upgrade project can be made

possible by adopting a hybrid upgrade model. All decisions should be taken after carefully weighing

requirements vs practical possibilities and the time that each of these entails. Customers with complex

configurations will require more time to achieve a Global Single Instance.

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Many enterprises are running their various verticals on different

instances. In the wake of multiple acquisitions and/or business

expansion, centralized accounting is of prime importance to

achieve global efficiency from an ERP. Standardized accounting

rules will help streamline processes and support centralization of

business operations. This will also help achieve better consistency,

data reliability and more than anything, a greater global visibility.

Apart from these advantages, there are other more palpable ones

- one single instance to maintain and plan beyond an R12

upgrade, to future ERP versions easily. Maintaining a single

instance will also mean rationalization of IT infrastructure and

hardware requirements. The IT staff required to maintain a single

instance will also reduce considerably resulting in reduced

support costs.

8CAN CORE CHANGESBE MADE TO EXISTING

COA OR ORG STRUCTUREALONG WITH UPGRADE?

Architectural changes such as

those that are mentioned here

are possible with planning and

enough time.

Allocate enough time and resources for making all

other changes that need to be combined with an

upgrade.

Consider taking expert opinions before making

decisions.

Hybrid upgrade models can be developed to suit –the requirements and timelines.

Consider the pros and cons of both upgrades and re-implementations and consider different possibilities of mixing these two methods if suited

4.1 Customer Arrival Phase

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If an organization envisions the expansion of their

ERP footprint to use more modules or products, it is

best to upgrade to the latest release of ERP first and

then implement more products. However, with the

right approach, these activities can also be planned

and executed together.

Plan for related system changes like the database

and Operating System Levels, platform migration to

be combined with upgrades. They can be phased

and scoped depending on the strategies that enter-

prises want to adapt. In practice, many enterprises

complete most of the database, operating system

and platform migrations as an initial phase preced-

ing the actual upgrade. This can be done with mini-

mum downtime and timelines will depend on how

much testing businesses will require.

WILL EXISTINGCUSTOMIZATIONS BREAK?9

When there are customizations, an Oracle EBS upgrade is most often not just about patches. It always involves

more exertion to retain or retire the existing customizations in 11i. They need to be addressed separately with a

mitigated and careful planning after impact analysis. Code retro fitment to adapt to technology and EBS version

changes, change management (if necessitated either through a need for enhancement or upgrade), unit testing,

functional testing, UAT, End user training and the actual migration will be required for a complete transition to a

newer version of EBS.

Some customizations may be retired and latest functionalities in R12 may replace them and be employed to fill the

gaps that older customizations addressed in 11i. Such replacements will be possible with proper mapping of busi-

ness process to a standard functionality in R12. Careful design and planning will enable a smooth switch to new

functionalities.

Organizations should also consider modifications that will help evolve the existing business processes that are

addressed through customizations. The upgrade opportunity should be used to make such changes wherever

suitable, once the right conclusions are in place.

Planning for such system changes along

with upgrade will require lesser downtime,

while it may increase business risk and lead

to complex troubleshooting. Allocation of

resources and deciding the right timelines

is crucial to attempting these changes

along with upgrade. Weigh multiple

downtimes against inherent complexities

to phase the changes accordingly. Stream-

line the processes to adapt to these

changes along with a new system to work

with.

4.2 Customer Inside Phase

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1ARE THERE ANY TOOLSTHAT WILL ANALYZEAND ASSESS TO HELPMAKE BETTER INFORMEDDECISIONS WITHFACTS AND FIGURES?0

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There are many Upgrade Impact Analysis and Assessment tools in the market which will help in accelerating

the evaluation and planning. These tools will help get up-to-date data in the hands of decision makers.

INSIGHT is Sonata’s answer for the upgrade dilemma enveloping all the customers who are at the cross-

roads to choosing the right path and enable them to take the most empowering upgrade decisions. A

change enabler, INSIGHT is a potential tool for Impact Analysis and Upgrade Readiness Assessment to make

well informed and supremely imaginative upgrade decisions to increase the ROI in Oracle’s EBS.





4.2 Customer Inside Phase

CONCLUSION

4.2 Customer Inside Phase4.2 Customer Inside Phase4.2 Customer Inside Phase4.2 Customer Inside Phase

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In essence, organizations can maximize their ERP investment

and unlock the full value of ERP Upgrade by making the right

choices early in the transformation – Partner, Upgrade Assess-

ment tool, ERP Version, Upgrade model and roadmap. Organi-

zations can adopt industry best practices, plan the upgrade

approach and prepare for execution accordingly with help

from industry experts. These strategic decisions are key to stay

ahead and improve continuously.





Sonata Software Ltd.

APS Trust Building, Bull Temple Road,

N. R. Colony, Bangalore - 560 019, India.

Tel : +91-80-6778 1999 | Email: [email protected]

www.sonata-software.com

ERPTransition ToNext Generation Applications;From Dilemma to Decision

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Upgrade to Oracle E-Business - Sonata · PDF file1 INTRODUCTION Oracle E-Business Suite R12 is the latest version of the ERP solution from Oracle which is a significant upgrade on