To re-implement or upgrade The R12 dilemma solved
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1 To re-implement or upgrade The R12 dilemma solved
2 Agenda Topic Page Introductions 2 Delivering Value with Oracle E-Business Suite Release Panel Discussion 15 Deloitte Point of View 20 Copyright 2012 Deloitte Consulting LLP. All rights reserved. 1
3 The presenters meeting with you today Presenters Ognjen Pavlovic Vice President Oracle Corporation Oracle E-Business Suite Development Brad Goverman Principal Deloitte Consulting R12 Upgrade COE Jeff Taylor Senior Manager Deloitte Consulting R12 Upgrade COE Jeff Eshelman IS Director J. M. Smucker R12 Program Manager Katherine Schwertley Program Manager Xilinx R12 Upgrade IT Program Manager Chao-Yee Watson Program Manager Xilinx R12 Upgrade Business Program Manager For additional information contact: David Maher - damaher@deloitte.com As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see 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. Copyright 2012 Deloitte Consulting LLP. All rights reserved. 2
4 Content presented by Oracle To view, please jump to page 17.
5 Panel Introductions
6 The J. M. Smucker Company Jeff Eshelman, Program Manager About J.M. Smucker Founded in 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) Copyright 2012 Deloitte Consulting LLP. All rights reserved. 5
7 Xilinx Katherine Schwertley IT Program Manager Chao-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 to 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 Copyright 2012 Deloitte Consulting LLP. All rights reserved. 6
8 Panel Discussion
9 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 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. Brad Goverman Principal Deloitte Consulting R12 Upgrade COE Jeff Eshelman IS Director J. M. Smucker R12 Program Manager Katherine Schwertley Program Manager Xilinx R12 Upgrade IT Program Manager Chao-Yee Watson Program Manager Xilinx R12 Upgrade Business Program Manager Copyright 2012 Deloitte Consulting LLP. All rights reserved. 8
10 Deloitte Point of View
11 Deloitte s point of view is that a business focus is required for an effective R12 upgrade Value through business model changes Full business transformation 1. Understand the drivers to justify upgrading to R12 2. Understand your current applications landscape Objective Value through capability redesign Upgrade enabled transformation 3. Identify pain points in the current state environment 4. Identify opportunities to implement functionality in R12 Replace old IT system Technical upgrade/ system replacement 5. Define the scope and objectives of the upgrade Very limited process and functional change Focus on ERP and non-erp improvements while considering policies, metrics, etc. Focus on structural business changes 6. Develop an upgrade roadmap Approach Copyright 2012 Deloitte Consulting LLP. All rights reserved. 10
12 Should I upgrade or re-implement? 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 Specific business criteria Upgrade Re-implementation Are there structural changes required to configurations (e.g., chart of accounts, business groups/legal entities, etc.) Are there significant customizations to the data and forms in the current instance that will be redesigned or replaced by delivered R12 functionality? Are there significant business process re-designs (e.g., moving from a GL-centric to Projects-centric process)? Will there be significant changes to the underlying technical infrastructure and/or architecture (e.g., operating system or server configuration) Are there significant volumes of historical data that are better archived rather than retained in the production instance? No No No No No Yes Yes Yes Yes Yes Copyright 2012 Deloitte Consulting LLP. All rights reserved. 11
13 Developing a roadmap for an R12 upgrade Step 1: Conduct R12 Workshops Step 2: Conduct R12 Assessments Step 3: Execute 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 Today we will discuss steps to get started developing your road map Copyright 2012 Deloitte Consulting LLP. All rights reserved. 12
14 R12 upgrade workshop 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. Agenda items Work Streams Assess Project Management Process and Package 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. Present Deloitte Assessment Workshop Discover Security & Controls Information Technology Change Management Assess the value, accessibility, and security of data and information assets. Determine tasks related to maintain appropriate security and controls. 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. Approach Tax Identify and analyze enterprise's global tax strategy and related statutory/regulatory requirements. Assess impact due to upgrade. 1. Assess Gather information about the business drivers, current pain points, usage of applications and technical architecture 2. Discover Discover new R12 features and identify opportunities 3. Approach Analyze findings and develop recommendations 4. Present Present high-level executive summary Copyright 2012 Deloitte Consulting LLP. All rights reserved. 13
15 R12 upgrade workshop - details Our workshop approach is broken down into four sessions with key activities identified for each session Assess Discover Approach Present 6 Hours 6 Hours 2 hours Post Assessment Objectives During the current state discussion we will gather information about the business drivers, current pain points, usage of applications and technical architecture During the R12 features and opportunities discussion we will discuss new features and modules During the R12 upgrade approach discussion we will outline the methodology, tools, and considerations for any upgrade We will wrap up the workshop by discussing the information presented, initial opinions and next steps in the form of deliverables Key Activities Deloitte R12 Enterprise Value Mapped to Client Environment Workshop Questionnaire R12 Vision & Strategy Understand 11i Pain Points Current Overall Landscape Technology Footprint Application Maintenance 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 Copyright 2012 Deloitte Consulting LLP. All rights reserved. 14
16 For additional information about Oracle EBS R12 upgrades contact David Maher Copyright 2012 Deloitte Consulting LLP. All rights reserved. 15
17 About This Publication This 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. About Deloitte Deloitte 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 for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see 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. Copyright 2011 Deloitte Development LLC. All rights reserved. Copyright 2012 Deloitte Consulting LLP. All rights reserved. 16
18 The following slides are presented by Oracle Corporation. 17
19 <Insert Picture Here> Delivering Value with Oracle E-Business Suite Release 12.1 Ognjen Pavlovic Vice President, Application Development
20 EBS Product Update: Continued Releases & Innovation Ongoing Consumable Low Upgrade Cost Point Releases Released Planned Major Release 11i x Minor Release RUP1 RUP2 RUP3 Nov Jan May 2009 Dec 2009 Aug
21 E-Business Suite 12.1 Aligns With Business Objectives New Capabilities for Customers across E-Business Suite for 11i Customers Role Business Objectives Enabling 12.1 Capabilities CFO Drive consistent, integrated best practices Reduce cost of back office operations Improve DSO and cash flow Centralized Finance Architecture Expense Reporting & Imaging Credit & Collections VP of HR Develop enterprise wide HCM strategy Improve talent acquisition effectiveness Improve workforce retention Performance & Compensation 360 Degree View of Employee Succession Planning COO Manage and sense demand Optimize manufacturing operations Improve order accuracy & logistics efficiency Complete Value Chain Planning Manufacturing Operations Center Enhanced Warehouse Management CPO Understand how & where money is utilized Achieve the best possible price for spend Ensure spend contracts are utilized Spend Analytics & Classification Leverage Sourcing Auctions Run Spend against Contracts CIO Fast and business oriented implementation Accelerated user adoption Lower systems management costs Business Accelerators Pre-built UPK Content Systems Management Packs 20
22 R12.1 Opportunities for Customers Enhanced Products and New SKUs Across the E-Business Suite Enhanced Product Areas New Products in 12/12.1 Procurement HCM Financials SCM Projects Buyers Workbench, Sourcing, Contracts, Electronic Invoicing, isupplier Portal Learning Mgmt, Performance Mgmt, Talent Profile, Incentive Compensation Shared Services, Advanced Collections, Internet Expenses, Channel Revenue Mgmt Enterprise Asset Management, Warehouse Management Project Management for Asset Based Industries (Util, E&C, O&G etc.) Spend Analysis, Classification & Supplier Lifecycle Management Succession Planning, Incentive Comp Analytics/ HR Analytics Financials Accounting Hub, Federal Financial Analytics Value Chain Planning, Landed Cost Management, Manufacturing Execution Projects Analytics CRM Service & Field Service Price Protection, Supplier Ship & Debit 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 21
23 Building the Business Case for Upgrading Value Proposition is in E-Business Suite R12.1 and Adjacent Products 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 22
24 Finding Additional Information on 12.1 Accelerate your evaluation and planning Contains Presentations RCDs RVPs Videos Customer Stories White Papers etc 23
25 <Insert Picture Here> Planning Your Roadmap 24
26 E-Business Suite Support Timelines 5 Yrs of Premier and 3 Yrs of Extended Support Nov 10 Nov Premier Extended Sustaining Fee Waived Jan 12 Jan 15 R12 Premier Extended Sustaining GA Fee Waived May 14 May 17 R12.1 Premier Extended Sustaining GA Fee Waived thru May 15 More info: 25
27 Oracle E-Business Suite 12.x Planned Enhancements 26
28 Post R Roadmap: Functional Enhancements RCDs are on MOS: Doc
29 50+ E-Business Suite Quick Wins Modules Responsibility Quick Win Modules Chief Procurement Sourcing, Contracts, isupplier Portal, Spend Analysis, Spend Classification & Supplier Lifecycle Management, Supplier Hub, Services Procurement, OSN/Electronic Invoicing Chief HR/Talent Officer Learning Mgmt, Self Service Human Resources, Talent Profile, Incentive Compensation, Succession Planning, Incentive Comp Analytics, HR Analytics CFO / Controller Head of Shared Svc Financials Accounting Hub, Advanced Collections, ireceivables, Internet Expenses, Channel Revenue Mgmt Chief Operations / Manufacturing / Logistics 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 28
30 Recommendations Upgrade, Optimize, Extend Upgrade Latest Oracle Applications Release Optimize Performance with Oracle Technology & Systems Extend Business Value with Co-existence Opportunities E-Business Suite 12.1 VCP 12.1 Demantra 7.3 Oracle SOA Suite and AIA Oracle OBIEE BI Apps SCM Apps ATG Commerce 10 OTM 6.1 WMS 12.1 Oracle ADF & WebCenter Oracle Identity Mgmt Hyperion EPM Fusion Apps Agile Oracle Content Management Oracle Enterprise Mgr GRC CRM Cloud Exadata Exalogic ATG HCM Cloud Industry Apps 29
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