Oracle Applications Release 11i Upgrade? or Re-implement?

Oracle ApplicationsRelease 11i Upgrade? or Re-implement? Oracle Applications R11i Installation and Upgrade Workshop OAUG November 2001

Contents • KPMG Consulting Overview • Business Case for Moving to Release 11i • Re-implement or Upgrade? • Tools for Upgrade The information contained in the following pages is intended solely for the addressed recipient. The recipient agrees to treat the information contained in this document as confidential and/or proprietary information of KPMG Consulting, Inc. The recipient also agrees that this document may contain trade secrets of KPMG Consulting which would provide a competitive advantage to others. As a result, the information contained in this document shall not be disclosed, used or duplicated, in whole or in part, for any purpose other than to evaluate KPMG Consulting.

Global Oracle Resources Over 1,300 Oracle Applications Consultants worldwide Over 700 consultants in North America Over 600 internationally-based consultants Our typical consultant has 6-12 years industry experience, and 4-6 years Oracle experience Oracle Solution Center located in Mountain View, California US Industry Centers of Excellence located in Mountain View CA, Irving TX, Chicago IL (HT), McLean VA (CIM), and Denver CO (CC) KPMG Consulting’s Oracle Applications Practice is structured as a global business – Americas, Europe, Middle East and Africa (EMA), and Asia Pacific

Leading Oracle Service Provider Global Alliance Partner Rapid Implementation with Real ROI Co-Development of Products KCIN develops eProjectWeb toolkit for R2i Oracle KCIN joins the Oracle Application Partner Program (OPP) KCIN starts national Oracle practice KCIN releases R2i Oracle Solution for R11 Apps KCIN joins the Oracle Alliance Program Oracle practice becomes a KCIN Global practice KCIN releases R2i Oracle Solution for R11i Apps 1993 1998 1997 2000 1994 1995 1996 1999 2001 KCIN rated top-performing integrator in OPP program KCIN develops Oracle R2i (Rapid Return on Investment) Solution for Release 10.7 Apps KCIN’s first Oracle implementation KCIN develops ePMO toolset for collaborative program management KCIN creates Check Upgrade service for Oracle release upgrades KCIN helps Cisco to implement Oracle Release 10 in 9 months KPMG Consulting and Oracle Relationship • Implementing Oracle Applications product suites since 1993. • Over 600 consultants in the United States and over 1300 worldwide. • Successfully implemented over 350 Oracle projects in the United States and over 500 worldwide. KCIN receives Outstanding Oracle Practice Award for FY00

Why go to Oracle 11i? • … A whole other discussion

Upgrade Market Segmentation • 5 States of Customer Readiness • The pie chart reflects tentative segmentation* of existing Oracle Applications users that want to upgrade to 11i * Rough estimates

Factors in Decision • Technical Architecture • Organizational Climate, Resources (Personnel\Time) • Applications Installed and Used • Changes to Configuration • Extensions / Scope • Business Processes

Considerations There are only two situations where the decision whether to upgrade or re-implement is clearly indicated: Re-implement • Are you multi-install (e.g., AP1, AP2, etc.), the precursor to Multi-Org? • Do you have multiple production instances you need to consolidate? Upgrade No Yes No Yes

Variable Considerations Other factors will vary in importance depending your particular business issues and the significance of the factor for your situation. These factors have a less clear cut answer; more subjective than objective, although you can apply weighted measures to help you choose the right approach for your environment.

Considerations Sliding Scale Re-implement Upgrade • Extensions • How much have you customized and extended your Applications? • How many of your extensions can be replaced by new features or functionality in 11i? • Have your extensions potentially compromised the integrity of your data (vs what Oracle would expect)? • 3rd Party COTS applications • How significantly have you integrated other COTS applications that could be replaced with new Oracle Applications modules, features or functionality? Minimally Significantly Few Most Unlikely Most likely Significantly Minimally

Considerations Sliding Scale Re-implement Upgrade • Overall Application Fit • Does your Application configuration still fit your business? • If not, are the necessary changes easily modifiable (i.e., not COA, Costing Method, etc.)? • Has your business structure changed significantly since your implementation (e.g., more/less business units/orgs, languages, currencies)? Mostly Not particularly Mostly Not particularly Extensively Not at all

Considerations Sliding Scale Re-implement Upgrade • Application Module Specifics • Are you currently utilizing Application Modules that have significantly changed in 11i (e.g., Order Management, CRM, PA, AR Customer functionality)? • Do you have complicated configuration of significantly changed functionality (e.g., workflow, order cycles)? • Do you have extensive or complicated configuration of obsolete features or functionality (e.g., FlexBuilder, Alerts etc.)? Minimal Extensive Minimal Extensive Minimal Extensive

Considerations Sliding Scale Re-implement Upgrade • Business Organization Climate • Knowing what you now know about the Applications, what would you do differently (configuration, extensions, processes, etc.)? • Will revisiting “requirements” create significant internal or political issues within organization? Very little A Lot Very likely Unlikely

Considerations Sliding Scale Re-implement Upgrade • Application Data • How good/clean is your data (good, bad, ugly/stupid)? • How much of your data is still important? • Were you a beta implementation that may have left data issues? • Application Environment Complexity • Is your current environment highly complex due to extensions, additional integrated custom or COTS applications that will result in an unacceptably lengthy down time for an upgrade? • Application Hardware Environment • Do you need to move to a different hardware platform? Very Hardly All Only the latest Not at All Multiple modules Not particularly Very Slightly diff. Significantly diff.

Factors in Not in Decision There are a number of factors, very important to the project end result, that are not necessarily a factor in whether to upgrade or to re-implement: • Current user interface (Character, SmartClient, NCA/ICA) – e.g., retraining on Navigation required regardless of whether you upgrade or re-implement • New Hardware is required – ideally you get new hardware on which to perform your test upgrades prior to putting it in production; even OS upgrades can be reasonably accommodated in an upgrade … with one exception … changing platforms (e.g., NT to UNIX) • User Testing Resources – don’t make the mistake of assuming that an upgrade requires less testing than a re-implementation

Factors in Not in Decision There are other “myths” circulating about situations where you reportedly can’t upgrade, some of which are related to specific 11i releases (11.5.1 …. 11.5.5): Release 10.7 PA can’t be upgraded to Release 11i – not true Release 10.7 FA can’t be upgraded to Release 11i – not true Release 10.7 CRM can’t be upgraded to Release 11i – had to wait until 11.5.4

How Do You Decide? Minimalist Approach – Key personnel quickly evaluate where you fall on the sliding scale for all critical factors; could be as simple as a ½ to 2 day facilitated session to determine the best approach for your organization. Formalized or In-Depth Approach – invest in more detailed analysis to collect objective metrics for evaluating whether to re-implement or upgrade? It’s not exclusively a technical or functional decision … it’s an organizational one.

Complications – Tools There are tools that further complicate your approach planning process … or can resolve an issue where only one factor fall significantly toward one approach or the other: • Crystallize – COA and other Application configuration changes • Kintana • Taviz • Tickmark • Data Warehouse • OuterBay Technologies • … and more …. (visit the Exhibit Hall)

Contributors • Solution Beacon, LLC • O2WORKS • Stonebridge Technologies • OAUG Forum, Fall 2001, “Hold ‘Em or Fold ‘Em: 11i Upgrade or Fresh Install”, Marcia D. Michalik, Edison Day & Associates, Ltd.

Questions and Answers • Alicia Hoekstra, KPMG Consulting, Inc. • Mark Clark, O2WORKS • Eric Riegelman, Stonebridge Technologies

Oracle Applications Release 11i Upgrade? or Re-implement?