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REALITY VERSUS MYTH:

CO-EXISTENCE OF FUSION APPLICATIONS HCM WITH


ORACLE E-BUSINESS SUITE HRMS

A White Paper prepared by IT Convergence


presented at Collaborate 13

Author

IT Convergence Fusion Center of Excellence

Copyright

IT Convergence 2013

CO-EXISTENCE OF FUSION APPLICATIONS HCM WITH ORACLE E-BUSINESS SUITE HRMS

TABLE OF CONTENTS
Abstract....................................................................................................................................................................................... 3
Introduction to Fusion Applications ........................................................................................................................................... 3
The principles of Fusion Applications.......................................................................................................................................... 3
Fusion Applications Modularity and Integration Options ............................................................................................................ 4
Co-existence options for Fusion Applications Human Capital Management ............................................................................... 6
HR-to-HR Coexistence ............................................................................................................................................................... 8
File Based Data Loader (FBL) Coexistence.............................................................................................................................. 10
Spreadsheet Loader Solution ................................................................................................................................................... 11
HCM Extracts ............................................................................................................................................................................ 12
Conclusion ................................................................................................................................................................................ 13
HR2HR ............................................................................................................................................................................ 13
HCM Spreadsheet Loader ............................................................................................................................................... 13
HCM File Loader .............................................................................................................................................................. 14
HCM System Extract ........................................................................................................................................................ 14
Dont Walk the Path to Fusion Alone ........................................................................................................................................ 14

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EBS-Fusion Applications Coexistence Easy in Theory


Maintaining Oracle E-Business Suite as a One Source of Truth and complementing it with features of Fusion
Applications to provide a Best of Breed solution is a great idea on paper that can be a real challenge to make work in
practice. In addition to being an Oracle solution provider, IT Convergence is also an Oracle end-user, running both the
Oracle E-Business Suite in house alongside Oracle Fusion Applications. We invite you to learn from our first hand
experience with the different co-existence options and why IT Convergence chose the HR2HR approach. This white
paper shares our experience and provides an overview of the technical concepts of each co-existence option, evaluated
for ITCs on-premise installation but also compatible with SaaS implementations.

Introduction to Fusion Applications


Oracle Fusion Applications became generally available in October 2011 and thus began the journey of new business
solution into a territory dominated by big and old players, including multiple products from Oracle, now called
Applications Unlimited (Oracle E-Business Suite, PeopleSoft, JD Edwards, and Siebel).
One of the reasons why Oracle built a product from scratch was the need to clearly define its product lines. While this
might have been the most important reason, it was far from the only reason.
Another reason is that today many organizations are embracing service-oriented applications and they want industrystandard applications platforms and enterprise resource planning systems that adapt to this model. The information
technology industry has moved the paradigm from having all the software in a single suite to running independent best
of breed solutions. And this approach is leading to a world where each system needs to be capable of integrating with
others in the most efficient and cost effective approach.
The adoption of cloud computing for businesses is now reaching maturity. Cloud applications no longer imply high risks
to production, and one of the benefits that the cloud delivers is that ability to deploy new tools in a fast and selective
approach. The options for Fusion Application are: on-premise or in the cloud. But Fusion adopters do not face an
either/or proposition. Because the code is the same, users can seamlessly switch between cloud and on-premise
applications, allowing companies to configure hybrid environments that are tailored to their precise needs.
Finally, the modularity of Fusion Applications allows organizations to deploy exactly what they need and integrate it with
existing IT assets.

The principles of Fusion Applications

Oracle Fusion Applications were built with three game-changing goals in mind:
Establishing a new standard for innovation,
Establishing a new standard for Work
Establishing new Standard for Adoption.

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Building a product on open standards allows organizations to lower costs by relying on skills commonly available in the
marketplace and to lower risk by easing integration with other applications, which in turn makes it easier to configure,
maintain and protect all configurations during upgrades.
Companies must adapt quickly to market challenges and the on-premise nature of current ERP systems is difficult to
change and cannot easily be adjusted at a moments notice.
With Fusion Applications, Oracle intends to address these issues by delivering an ERP solution that businesses can
manipulate with simple configuration changes that are instantly applied to all relevant objects, thus adapting to new
business requirements in a timely manner. Oracle is basing these changes on a new platform that has a role-based user
experience, intelligence business processes, and a unified information repository. Every component is built on open
standards such as Java, BPEL, XML, HTML, AJAX, RSS, mobile and others. An example of embedded analytics in
Oracle Fusion can be seen in Illustration 1.
In the past, each individual business software application structured security in a different way. As a result, system
security became a nightmare for those in charge of provisioning and deprovisioning users. Oracle Fusion Applications
has a new security standard built upon a role-based user experience. It is very common for employees in global
organizations to wear multiple hats, and to work effectively they need functionality that not only addresses their various
roles, but also delivers the information needed to make decisions. This functionality of role-based user experience
connects your resources with the right people in order to get the job done.
Ease of adaptability is another key concept behind the Fusion Applications user experience. Capitalizing the E-Business
Suite experience, Oracle decided to focus on adaptability. In the past, even minor modifications needed to be reviewed,
incorporated and tested each time a new patch was applied or a minor upgrade installed, which proved a very timeconsuming task.
The ability to extend Oracle Fusion Applications easily gives end-users a huge advantage. The concept works like this:
Developers build on Fusion Middleware, supported by Fusion Middlewares Metadata Services (MDS), allowing the IT
team to store changed metadata separately from the original metadata. So when patches or upgrades are applied, they
affect only the original metadata. After a patch or upgrade, the changed metadata is reapplied, preserving the changes.

Fusion Applications Modularity and Integration Options


Since the release of Fusion Applications, many organizations have begun including it in their strategic plans, keeping in
mind key objectives such as:

Protecting the investment on Oracle Products


Mitigating the risks of upgrading, reimplementing or coexisting
Minimizing the interruption of business
Getting the most value out of Oracle Fusion Applications

There are two scenarios where Fusion Applications can help organizations meet their needs and support their objectives
based on a co-existence approach.

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In the first scenario are organizations that are relatively up-to-date with software releases such as Oracle E-Business
Suite R12.X and have low complexity customizations or extensions (for example, interfaces with third-party systems).
They should consider a phased approach as a strategic roadmap to minimize the risk.
In the second scenario are organizations willing to implement solution components that are not yet available in Fusion
Applications. With co-existence, they can continue to benefit from their existing solutions while taking advantage of new
functionality in Oracle Fusion Applications.
The concept of modularity is key for a phased approach in co-existence with your current Oracle investment. Oracle
Fusion Applications originally comes with 7 families: Oracle Fusion Financial Management, Human Capital
Management, Sales, Supply Chain Management, Procurement, Project Portfolio Management and Governance Risk
Controls. Within each of these families are many new modules, as shown below:

Illustration 1: Oracle Fusion Applications product families

This new concept of co-existence is based on 3 pillars: Financials & Supply Chain Management, Human Capital
Management and CRM Sales.

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Illustration 2: Oracle Fusion Applications Co-existence strategy

As part of the Oracle Fusion Applications suite, Oracle provides a number of pre-packaged integrations in the format of:

Real Time Requirements: standardized Web Services, canonical definitions


Master Data Synchronization: batch, ETL, ODI.
Some of the out-of-the-box coexistence processes are:

Oracle Fusion Distributed Order Orchestration with Oracle E-Business Suite Order Capture
Oracle Fusion Accounting Hub with E-Business Suite Financials
Oracle Fusion Shared Spend, Sourcing and Contracts with Oracle E-Business Suite Requisitioning
Oracle Fusion Incentive Compensation with Oracle E-Business Suite CRM and HCM

It is very important to understand that there isnt a single integration solution, approach or technology that fits all
integration requirements. However, we will present some tested options that can assist you in evaluating which criteria
can be applied to the integration challenges of your organization and will help you select the right approach and tools for
your specific requirements.

Co-existence options for Fusion Applications Human Capital Management


Oracle Fusion Applications are the only applications that provide preconfigured Talent Management capabilities with
Enterprise Human Resource applications, and can be run in the cloud or on-premise. Primary coexistence processes
include: Oracle Fusion Talent Management and Compensation with Oracle E-Business Suite Human Resources and
Payroll.
There are multiple options for the coexistence strategy that provide choices for different business needs.

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Illustration 3: Oracle Fusion Applications HCM coexistence options

Illustration 3 shows the different options that are available to integrate Fusion Applications HCM. These are:
HR-to-HR Interface: delivers the extract, transformation, file transport and intelligent synchronization and exchange of
selective business object data between PeopleSoft Enterprise/E-Business Suite HCM and Fusion HCM.
File Base Data Loader: Initial feed loads full extract of HCM data into Fusion Object Shape.
Spread Sheet Loader: Simplified data loading to Fusion HCM from standard spreadsheets using a flattened row format
for each object. Initial data creation and no support for loading history.
HCM Extracts: creates outbound interfaces for HR and Payroll to another application in coexistence or to 3rd party
service providers with the ability to extract changes only data.
The hybrid landscape with multiple systems and the fast-pace business environment create complex scenarios that call
for IT organizations to elaborate multiple ways of handling information inbound and outbound in a secure and costeffective approach.
Illustration 4 shows how Fusion Applications HCM can meet multiple capabilities depending on the implementation and
installation steps.

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Illustration 4: Oracle Fusion Applications Integration capabilities

HR-to-HR Coexistence
If your organization is running PeopleSoft HR 8.9 or Oracle E-Business Suite HRMS in Releases 11i, 12.0 & 12.1, and is
wiling to use Fusion Talent or Compensation Workbench before moving to full Fusion HR, this would be the most
suitable coexistence model.
It will allow your application to retain the existing HCM Application as system of record for Core HR Business Objects
and extend the functionality with Fusion Applications HCM modules.
This approach provides a simplified and well-documented setup on your Applications Unlimited and Fusion Applications
HCM, enabling an initial load (full load) of all the data from your source application into Fusion Applications HCM and
also ongoing data synchronization processing for changes (change data capture -CDC).

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Illustration 5: Oracle Fusion Applications HR-to-HR Coexistence

Illustration 5 shows some of the objects that are being migrated source-to-target and will be updated on a CDC
approach. It also shows the HR Extract, which will be described later in this paper, as an outbound interface.
The objects being migrated from Applications Unlimited are:

Work Structures
Business Units
Locations
Job Families
Jobs
Grades
Grade Rates
Positions
Departments
Dept Hierarchy
Transaction Data
Person
Work Relationship
Workforce compensation
Salary Basis
Salary
Pay Element entries
Talent Management
Content Items
Rating Models
Establishments
Profiles

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File Based Data Loader (FBL) Coexistence


This approach will probably fit organizations that did not invest in Oracles Applications Unlimited or are not willing to do
data transformations.
Illustration 6 shows the Fusion Applications Data Exchange module, which allows loading HCM Data based on the
definitions of the objects to be migrated.

Illustration 6: Oracle Fusion Applications File Base Data Loader (FBL) Coexistence

Some of the required tasks in order to execute coexistence include:

Configuring Oracle E-Business Suite HRMS systems for coexistence


Identifying the Business Groups to enable for HCM coexistence solution
Importing Oracle Fusion cross-reference data for setup mapping
Mapping EBS entities to Oracle Fusion using the WebADI spreadsheets
Extracting the EBS data for importing to Oracle Fusion as a zip file
Placing the extracted zip file in Oracle Fusion FTP Inbound server and invoking Oracle Fusion Web Service
Importing the compensation changes
Updating the EBS system with the compensation changes

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Illustration 7: Oracle Fusion Applications File Base Data Loader (FBL) Coexistence

Illustration 7 shows the integration of Oracle E-Business Suite HRMS with Oracle Fusion Talent Management using a
coexistence model.

Spreadsheet Loader Solution


A third option to upload data into Fusion Applications HCM is the Spreadsheet Loader Solution, which has some
limitations but can add value to re-implementations.
This is the best choice for loading bulk data into Fusion Apps with a simplified process based on standard spreadsheets
provided by the application. It supports all the objects described in the HR-to-HR coexistence approach and it works only
for data creation, meaning that it is not possible to submit updates.
One of the biggest cons of this coexistence option is that it does not support loading history -which in the Human
Resources world is generally required. Consequently, we would recommend it for limited volumes of data.

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HCM Extracts
The latest? tool for coexistence is called HCM Extracts and is very powerful for outbound information. One of the most
common usages is sending payroll information to a third-party system.

1
Illustration 8: Oracle Fusion Applications HCM Extracts diagram

The HCM Extracts can be used to connect HR and Payroll data with any other application in coexistence, especially
because the capability of extracting changes only, which is very costly in terms of custom development.

Illustration 9: Oracle Fusion Applications HCM Extracts delivery options

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The HCM Extract permits a fully documented setup for the metadata based extract by allowing proper documentation
and by executing the process either one time or based on a schedule through certain parameter values.
This feature offers a wide variety of uses: complex reporting, employees e-document repository updating, statutory
Reporting, data archiving, varied format output (pdf, csv, eft, xml, Excel etc.) and varied mode output (ftp, email, fax
etc.).

Conclusion
IT Convergence, just like many organizations who have implemented Oracle Solutions, is an advocate of following a coexistence path towards adopting Oracle Fusion Applications. We realized that sharing the forced upgrade
misconception did not do anything for our IT Strategy and, over the last year, the knowledge transfer helped us switch to
a realistic assessment of the return on our Oracle investment.
A strong requirement in Oracle E-Business Suite and this could be said for any Applications Unlimited is keeping the
solution up-to-date. While this is a responsibility, it also provides unmatched opportunities both to redesign the solution
by extending it with new features and functionalities, and to mitigate risks.
Fusion Applications provides a foundation that allows you to incorporate new functionalities not covered by your current
Oracle (or PeopleSoft, J.D. Edwards/Siebel) ERP solution.
A phased implementation approach, such as the one selected by IT Convergence, combined with an initial coexistence
scenario can provide key benefits and reduce costs and risks while ensuring there is no loss of functionality in existing
Oracle Applications solutions.
As a summary, lets review the coexistence elements of our solution:
HR2HR

Offers a closed solution for coexistence customers only, with end-to-end support to extract, transform, transport &
load HCM data between two known HR systems

Ideal for customers using PSoft HR 8.9 or EBS HR 12.0 & 12.1, who want to use Fusion Talent or Compensation
Workbench before moving to full Fusion HR
HCM SPREADSHEET LOADER

Offers simplified data loading to Fusion HCM from standard spreadsheets using a flattened row format for each

object
Ideal for customers using Fusion HR who want to load HCM data as easily as possible.
Works best for limited numbers of records with little or no history.
Available since R2
ADFdi version available with R4

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HCM FILE LOADER

Offers simplified data loading to Fusion HCM from a csv file using a standard file definition for each business

object
Possibility to create and submit changes for one object or all objects
Ability to convert selected data from a legacy HR system with full date-effective history
Ability to convert selected data with limited history
Initial version available with R4
Incremental Merge support scheduled for R7 with backports

HCM SYSTEM EXTRACT

Possibility to extract complex HCM data into an XML file; the file can be transformed and transposed using BI
Publisher into required file formats and delivered in various ways to an external 3rd party.

Facilitates very large or complex extract, transform, format, and distributions of data to 3rd party systems.
Improves efficiency in interface management with the separation of scheduled extracts to stage and the publishing
of multiple reports from a single extract.
Finally, given this product has only been in the market for a short period of time, to ensure success it is strongly
recommended to involve people with the necessary skills and experience early on the path to Oracle Fusion
Applications.

Dont Walk the Path to Fusion Alone


Oracle Fusion Applications represents the next frontier in Enterprise Resource Planning. And while that statement
implies a certain level of challenge, it also opens the door to opportunity. There are many different paths to Oracle
Fusion Applications, and fortunately you neednt choose nor walk your path alone.
IT Convergence is an Oracle Fusion Applications early adopter and as such we invite you to share in our insights. Check
out our white papers and Power Points weve published based on our own internal use of Oracle, read the latest in our
Oracle Fusion blog, check out our Oracle Fusion Applications consulting services or simply contact us at 1-800-6750032 and well be happy to put you in touch with one of our Fusion experts.

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LEGAL DISCLAIMER:

The information contained herein should be deemed reliable but not guaranteed. The author has made every attempt to provide current and
accurate information. If you have any comments or suggestions, please contact us: info@itconvergence.com.

IT Convergence White Paper:


Reality versus Myth:
Co-existence of Fusion Applications
HCM with Oracle E-Business Suite
HRMS
Environments April 2013

IT Convergence
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IT Convergence.
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