Rightsizing Oracle Upgrade

to EBS R12
with a Pre-Assessment Program
 Table of Content

Oracle EBS roadmap 3

Why Upgrade to R12 5
HCLs Global Upgrade Program 6
Pre-Upgrade Assessment 6
Upgrade 6
Post- Upgrade 7
Why Assessment? 7
AssessPRO 7
Scope
Methodology
Deliverables
Assessment Case Study 8

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Organizations in their drive to upgrade, often follow a piecemeal approach leading to organizational fatigue,
expensive rework, and lost return on investment. As the industry moves to service-oriented architecture (SOA) and
the beginning of the next upgrade cycle, enterprises should take advantage of this unique opportunity to plan
strategically and initiate a long-term applications strategy as they consider their upgrade- they should view upgrades
as a means to consolidate disparate applications, upgrade to single global instance or even to define the
infrastructure roadmap and a subsequent application/infrastructure optimization.

Let us start the upgrade quest by taking a glance at the Oracle EBS Global Business Release of R12.

Oracle EBS (E-Business Suite) Roadmap

As part of Oracles commitment to provide customers with unlimited applications and an integrated product suite,
Oracle EBS continues to evolve offering extensive functional and operational improvements one version after the
other. Oracle R12 or Release 12 is functionally rich, serving global enterprises with its 3-pronged mantra (see below)
of a Global Release (global purely from a geographic context but also because of its comprehensive functional and
business coverage)-

Think globally: by providing integrated business information to support decision-making and effectively

ensuring compliance across the global enterprise. This enables a global view of customer, supplier, partner
& operations by-
Integrated performance management
Strategic Network Optimization
Global Inventory Optimization

Work globally: by moving from single global access across multiple lines of business to deeper industry vertical

workflows. A few features of R12 which ensure this-

Global Financial Management
HR Localization Expansion 30 Countries covering 87% of the Worlds GDP
Global Transportation Management

Manage Systems globally: by using tools and functionality to enable central management of the application

suite, increase ease of integration, and significantly reduce the effort required to implement the suite by -
Integration with core industry applications
Comprehensive Integration Repository
New User Experience
Simplified Maintenance Management

Did u know?
2,500+ customers have downloaded Oracle EBS 12 as of
Feb, 2008
900+ customers actively engaging Support
200+customers proactively tracked by Development
50+customers live

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A snapshot of the R12 Financial features which make it truly global is tabulated below-

R12 Feature 11i Pain Areas

Are these reasons enough for you to upgrade to R12? Let's look at the dilemmas
customers face while considering upgrades.

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 Upgrade Dilemma
While considering upgrades, customers are often faced with numerous alternatives and often fail to recognize and
link together the multivariate business/technical/functional challenges mandating upgrades. Some of the typical
customer concerns include:

What is the Business Value of upgrading to the latest version (R12)?

What are the best practices for upgrades?

-Should I look at (N-1) or the greatest & the latest?
What are Business/ Technology/Functional value of Upgrades?

Fear of de-support/outdated legacy systems

Upgrade vs. Reimplementation

Can I consolidate to a single Instance while upgrading?

Should I upgrade first and then implement Functionality?

What are the architectural considerations which make R12 superior as compared to 11i versions?

With all these questions and considerations, customers are often unable to decide the best course of action and opt
for upgrade in an ad-hoc manner without being able to fully realize its value and utilize it to define a long term
applications strategy.

The following sections elaborate on the key drivers for R12 upgrade, and present HCLs Global Upgrade Program- A
collaborative approach to upgrades spanning the upgrade lifecycle. HCL has designed this approach based on its
upgrade experience in coalition with customers feedback and typical customer scenarios.

Why upgrade to R12

Different organizations may have different incentives for considering upgrades but they should not forget that the
final objective should be to align upgrades with the long term application strategy and hence should consider a
holistic approach instead of the ad-hoc piecemeal approach. HCL defines Upgrade imperatives under the following
categories-

Business- Changing nature of businesses along with global footprint necessitates change in the IT application

set-up every few years to support new business requirements and scale up to the anticipated growth.
Functional- From Governance, compliance to regulatory requirements to faster time to market ,companies

want to incorporate functionalities which help them create a differentiated product offering in the marketplace
and run an efficient Global business.
Technology- Scalability, removal of redundancy and real-time visibility are but a few of the technical

imperatives for a Global Enterprise.

Business Imperatives Technology Imperatives

Legacy modernization
Growing User Base- Additional investment to be
considered in the form of Licenses,
Infrastructure etc
Mergers & Acquisitions- leading to diverse
business applications and the resulting
complexity
Global expansion- requiring global instances
catering to local needs
High maintenance cost
Cost of supporting customizations
Reducing total cost of ownership
Business changes such as acquisition
leading to standardization and migration
Technology Imperatives
End of Premier support of Oracle EBS 11.5.9 in June08 . Premier
support elapsed for earlier EBS versions
Maintenance of High level of customizations
Reduced IT and compliance costs
Outdated Technology Stack
Siloed applications
Conflicting standards
Mismatched computing platforms
Single-purpose code that can't be reused
Limited their ability to serve the business
Enterprise Integration
Integration of information systems -expensive and time consuming
Interoperability, performance, security, and usability
Scope for the integration effort-not adequately defined
Tools Advancement
Provide a stepping stone to Fusion

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Functional Imperatives
New module Implementation
Reengineering of Business Processes and IT Applications
Eliminating Customizations
Access to advanced functionality
Improved security and compliance

Simplification of Business processes

Maintenance becomes easy

Facilitates smooth change Management
Lesser documentation requirements

Incorporate the enhanced functional feature-set of R12-

Centralized and Standardized Finance Functions

Integrated performance management
Strategic Network Optimization
Global Inventory Optimization
Simplified Self-Service Reporting
More Productive Shared Service Operations
Legislative and Regulatory requirements

Pre-Upgrade Upgrade Post-Upgrade

Upgrade vs.
Pure-play upgrade offerings- Application Support and

Reimplementation Technical/Functional Maintenance
Upgrade Pre-Assessment
upgrade Global Rollouts

Scope of upgrade New module implementation Infrastructure Support

Functional/Technical Data conversion services
requirements Data Archiving
Customization analysis Value-Added Services
New module Value-Added Services Implementation of

implementation Migration associated
Out-of-box functionality Instance Consolidation Oracle stack- OTM,

Enhanced feature-set Application Optimization Stellent,
Infrastructure set-up Hyperion, etc

required SOA based on FMW

Upgrade Financial
Models
analysis

Value-Added Services
Usage Analysis

Instance consolidation study

Process fitment study

HCL Global Upgrade Program

End-to-End Upgrade Services

Pre-Upgrade Assessment
HCL offers pre-assessment services to its customers through its Pre Assessment Methodology called
AssessPROTM which advices the customer on the benefits to switch over to latest versions of Oracle EBS R12. The
scope and methodology are discussed in detail in the next section.

Upgrade
HCL has extensive experience in handling upgrades to 11i versions and has developed and perfected
methodologies and tools which are a culmination of best practices across complex upgrade landscapes. These
proprietary tools & project accelerators like EbizsmartUpgrade and HUM methodology ensure uninterrupted

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services while upgrading a client's system from Oracle 11i to Oracle R12. In addition, HCL is certified by Oracle as the
Oracle Business Accelerators Implementer. It is thus enabled to implement Oracle R12/R11i using OBA
methodology, and accelerate implementation time frames with improved quality of solutions, which are used in all our
upgrade projects to speed up execution. HCL also uses Oracle's Maintenance wizard, Setup and Rapid Install to
further smoothen the process.

Under Oracle's Partner Program, HCL is recognized at the highest level of partnership - the Certified Advantage
Partner. Therefore we have early access to new product releases and trainings including beta versions, and are early
adopters of new Oracle technology such as 10g and E-business suite 12i.

Post Upgrade
At the final stage of transition during the Upgrade process, HCL kick-starts the post upgrade set up. Once the set up is
complete, HCL provides support and maintenance for the newly upgraded application, including infrastructure
support, for a limited span of time. During this time, HCL also proposes further optimization of the client's application
landscape and has often been involved in subsequent Global Rollouts, Instance Consolidation, Standardization, etc.

Upgrade Assessment
Often customers commit themselves to the Upgrade program without actually being fully aware of the scope, current
state, future requirements, etc, thereby leading to un-optimized deployment and lower ROI, often ending up in cost
and schedule over-runs. To eliminate such inconsistencies, HCL proposes a Pre-Assessment Program whereby
customers can get a complete picture of their As-Is and To-Be state with a well documented project charter and
timelines before the actual Upgrade process kicks off.

AssessPRO

HCLs proprietary approach to upgrade assessment has a well defined scope, covering-

Process Analysis

Functional/ technical processes

Estimate effort for BPR
Estimate for To-be process Design
Technology and Tools Analysis

Oracle Vs other ERP packages Validation & Business Case creation

A Reality Check of existing application of Oracle EBS and a roadmap for Upgrade
?
Understanding the new features available in R12 that can be leveraged
?
Infrastructure assessment hosting in house Vs outsourced
ERP upgrade assessment including implementation of new modules
Prepare and Plan for Mitigation of Risks for upgrade in terms of-
?
Cost and schedule over runs

Cut over into production

Other risks identified during the assessment (Client specific)

Financial Model Assessment

Comprehensive Project Charter for Upgrade of current Oracle EBS 11i version to Release 12

This evaluation exercise is carried out in 4 phases spanning 4-8 weeks depending on the current deployment -
its version, complexity, level of customization, etc. During this workshop, HCLs analysts and consultants would
engage in rigorous customer interviews, working with the clients business analysts and super users to
understand and analyze current processes and future requirements.

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PHASE I: Discover
Project kick off and scope confirmation
Assimilate and gather as-is process know-how
Existing documentation
Interviews with super users/Business users
Gather future requirements/identify pain areas
Functional/Technical/Business requirements- eg. Need for consolidated P&L reporting vs the current local
reporting
Infrastructure requirements
If the current set-up is scalable to meet future needs
Decommissioning requirement
Archival requirements

PHASE II: Assess

This phase involves in-depth analysis of the data gathered in the Discover phase.
Analysis of existing Processes-
Functional
Technical
Business Processes
Analysis of Existing Customization
Study of current infrastructure landscape
Analysis of upgrade approaches-
Staggered or Big-Bang vs HCLs hybrid approach
Evaluation of the appropriate upgrade path (Two Step/ Single Step)

Discover Assess Envision Recommend

N WEEKS
Requirement
Analysis of
Perform High
Prepare
Templatized
Gathering (Q& A) Processes level Fitment Comprehensive Approach-
Project Kick-off
Analysis of
Analysis of Upgrade Project
Gather Process
Functional and Business Charter including Customizations

documentation, Technical System processes, Project Plan, Evaluation
RICE list, User Processes Functional, Project Template
Manuals and Analysis of
technical and Organization, Fit Gap Analysis

System Existing Customization to Infrastructure, Template
Documentation Customizations R12 Functionality Effort Estimate New module

Gather
Analysis of
Perform Impact
and Project analysis Template
Activities

Infrastructure set- Technical Analysis on Pricing

up/requirements Architecture RICE, Processes
Gather Upgrade
Analysis of
and Architecture
requirements Infrastructure Perform impact

landscape analysis of
Analysis of
decommissioning
upgrade of existing
approach infrastructure
Batch Tools /
Upgrade

Process approaches- ROI
Evaluation analysis

HCL Analysts
HCL Analysts
HCL Analysts
HCL Analysts

Customer
Customer
Customer
Customer
Factors determining
Role Owners

Business Process Owners Business Business N weeks

Analysts Customer Bas
Analysts Analysts Size of Oracle
Infrastructure
Implementation
Specialists Complexity of
Upgrade
Customizations
Specialists Oracle EBS
Version
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PHASE III: Envision
This phase involves Hi-Level fitment analysis of the business process, functional and technical customization to the
selected Oracle EBS functionality, impact analysis on process and architecture, and infrastructure requirements.

PHASE IV: Recommend

The final phase rolls out a comprehensive project charter including project plan, project organization, infrastructure,
effort estimate and pricing options.

This Assessment program uses a templatized approach with standard templates used for Customization
evaluation, fit-gap analysis, new feature study, etc.

The final deliverable of this eight week long program comprises:

Scope of Client's Upgrade Project

Key Business Drivers

Benefits of the Upgrade

Infrastructure Needs

Upgrade Approach Evaluation

Steps involved in Upgrade

Key Milestones and indicative timelines

Risks associated with the Upgrade

Team Size

Training Needs

The entire upgrade assessment program can be supplemented with value-added offerings like usage analysis,
application portfolio analysis, infrastructure portfolio analysis and recommendations on optimization as per the
clients need.

Pre-Assessment Case Study

Application Roadmap for a leading Storage Equipment manufacturer
The client, a leading storage equipment manufacturer, has witnessed inorganic growth leading to a plethora of
disparate applications/processes. The growth momentum along with future imperatives required a scalable
application architecture, consolidation and standardization of processes across the organization. Before
spearheading such a transformational initiative, the client wanted to evaluate options and prepare a charter for this
initiative.

The clients application landscape was primarily on Oracle EBS 11.5.9 and it was considering upgrade to R12 while
consolidating other third party systems to R12. In addition, the client also required new modules like iProcurement
and ASCP and an infrastructure Assessment of the upgrade process.

With its AssessPROTM program, HCL initiated the 6 week assessment at the client site evaluating the following:
Oracle Vs. SAP Validation

ERP Upgrade/ Reimplementation assessment including new module implementation

Financial models for upgrade- hosted vs. in-house

Implementation of new modules like iProcurement and ASCP to address specific requirements

Implementation of Configure-to- Order business model to address some of the major problems in: Bundled

Sales, Differed Sales, Software Sales and Tracking Configured order

Replacement of Optio forms with XML forms (Oracle)

Replacement of DW (Cognos) with FSG reports; 75% of customizations are reports and move all reports to DW

Involving key stakeholders and super users, HCL prepared an exhaustive Project Charter for Upgrade of the current
11.5.9 Oracle Apps to Release 12. The client is now ready to upgrade to R12 having well tabulated project timelines
that mitigate the risks involved and understanding of new model features.

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Why HCL for Upgrade to Oracle EBS R12?

R12 Expertise HCL is credited with taking the first customer live on Oracle R12 and has over 6+ Oracle

R12 Implementation projects running currently with over 3+ upgrades

Certified Oracle Business Accelerators Implementer - enabling HCL to implement Oracle R12 using OBA

methodology and accelerate implementation time frames with improved quality of solutions
Upgrade experience - HCL has handled several large complex upgrades and consolidation of Oracle EBS

versions for Fortune 500 companies.

Global Upgrade Program - A systematic program ensuring recurring costs benefits with a phased approach

to upgrade - Pre-Assessment, Upgrade and Post-upgrade Support

Pre-Assessment program - A time and cost effective assessment program to help customers decide their

upgrade path before taking the plunge.

Multiple approaches customized to client requirements- Big Bang, Staggered and Hybrid

Tool-driven upgrades - HCL has a proprietary eBizSmartUpgrade tool to automate and ensure a seamless

upgrade process.
Focused methodology with well defined milestones for smooth transition

Remote Upgrades - Technical upgrade via remote connectivity which saves cost and time

HCL Oracle Universe

HCL's Oracle universe - an integrated services group provides technology-based business optimization on
Oracle enterprise software products like Oracle e-Business, Siebel CRM, JD Edwards, PeopleSoft, OTM,
Hyperion, OBIEE, Retek, Stellent and on Oracle technology platforms in data warehousing, business
intelligence, Fusion middleware and Oracle database. HCL is a Certified Advantage Partner of Oracle and
works with Oracle as the Preferred Go-to-Market Partner in select geographies for specific verticals.

The dedicated CoE on HCM, CRM, SCM, ERP, and Technology provides technology-based business
optimization solutions on Package Application, Fusion Middleware, Business Intelligence & Data
Warehousing. We deliver end-to-end services including blue printing, global rollouts, application
implementation, migration / upgrades, maintenance, database management, configurations, helpdesk
support, Integration and Development services across verticals.

Oracle Universe has two dedicated competency labs in India and US to provide thrust on value added industry
solutions and build pre-configured and extended bolt-on+ solutions. Being a certified advantage partner we
have early access to new product releases and trainings including beta versions and are early adopters of new
Oracle technology such as 10g and E-business suite 12i.

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