A Primer on Upgrading to 11i

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A Primer on Upgrading to 11i
New York Metro Area User Group Day
Heidi Zee, Director of Service Quality
New York, NY September 21, 2004
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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
• MA 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?

• Whats 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? (contd)

• 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 hasnt
  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 dont 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 (contd)

• 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 TARs 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 (contd)

• 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 1990s 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 (contd)

• 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 Websters
  ongoing operations
• Effectively implemented many new Release 11i
  features and processes
• Eliminated customizations to simplify Websters
  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 (contd)

• 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
• [phone]
• heidi.zee_at_thoughtdigital.com