To re-implement or upgrade

The R12 dilemma solved

Agenda

Topic Page

Introductions 2

Delivering Value with Oracle E-Business

3
Suite Release 12.1

Panel Discussion 15

Deloitte Point of View 20

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 1

The presenters meeting with you today…

Presenters

Ognjen Pavlovic Brad Goverman Jeff Taylor

Vice President Principal Senior Manager
Oracle Corporation Deloitte Consulting Deloitte Consulting
Oracle E-Business R12 Upgrade COE R12 Upgrade COE
Suite Development

Jeff Eshelman Katherine Chao-Yee

IS Director Schwertley Watson
J. M. Smucker Program Manager Program Manager
R12 Program Manager Xilinx Xilinx
R12 Upgrade R12 Upgrade
IT Program Manager 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 www.deloitte.com/us/about 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

Content presented by Oracle
To view, please jump to page 17.
Panel Introductions
 The J. M. Smucker Company

Jeff Eshelman, Program Manager

• About J.M. Smucker

– Founded in 1897. 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

 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 11.5.10 to 12.1.3
– 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
Panel Discussion
Panel discussion

1. What caused you to make the decision to 7. As part of your scope did you include any new
upgrade at this time process areas

2. Why did you decide on R12 vs waiting for 8. What do you feel has been your biggest
fusion challenge or risk during the upgrade process
and how did you deal with it
3. How did you justify, get approval and funding
for the upgrade 9. How much down time did you require to
implement the upgrade and how did you work
4. Did you develop a business case for the around business continuity issues
upgrade
10. What would you have done differently if you
5. When you were considering the upgrade did had to do it over again.
you purchase any additional modules
11. What benefits have realized / anticipate
6. Did you also upgrade hardware, infrastructure realizing from the upgrade
and other 3rd party products
12. What does your post upgrade roadmap look
like.
Brad Goverman Jeff Eshelman Katherine Chao-Yee Watson
Principal IS Director Schwertley Program Manager
Deloitte Consulting J. M. Smucker Program Manager Xilinx
R12 Upgrade COE R12 Program Manager Xilinx R12 Upgrade Business
R12 Upgrade Program Manager
IT Program Manager

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 8

Deloitte Point of View
Deloitte’s point of view is that a business focus is required for an effective
R12 upgrade

1. Understand the drivers to justify

business model
Value through

upgrading to R12
changes

Full business
transformation
2. Understand your current
applications landscape
Value through

3. Identify pain points in the current

Objective

capability
redesign

Upgrade
enabled state environment
transformation

4. Identify opportunities to implement

functionality in R12
Replace old

Technical
IT system

upgrade/ 5. Define the scope and objectives of

system
replacement the upgrade

Very limited Focus on ERP and Focus on 6. Develop an upgrade roadmap

process and non-ERP structural
functional change improvements while business
considering policies, changes
metrics, etc.

Approach

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 10

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 No Yes
accounts, business groups/legal entities, etc.)

Are there significant customizations to the data and forms in the No Yes
current instance that will be redesigned or replaced by delivered
R12 functionality?
Are there significant business process re-designs (e.g., moving from No Yes
a GL-centric to Projects-centric process)?

Will there be significant changes to the underlying technical No Yes

infrastructure and/or architecture (e.g., operating system or server
configuration)

Are there significant volumes of historical data that are better No Yes
archived rather than retained in the production instance?

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 11

Developing a roadmap for an R12 upgrade

Conduct upgrade workshop

Step 1: • Identify goals and drivers
Conduct R12 • Answer strategic questions
• Identify R12 upgrade value
Workshops • Start developing roadmap

Conduct upgrade assessment

Step 2: • Identify improvement opportunities
• Define application and process scope
Conduct R12 • Define RICEW & technical scope
Assessments • Confirm upgrade vs. re-implementation
• Publish R12 upgrade roadmap

Execute R12 upgrade

Step 3: • Execute R12 upgrade roadmap
Execute • Design process enhancements
R12 Upgrade • 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
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

Plan, execute, monitor, and control the project. Drive key assessment
Project Management recommendations around the implementation roadmap.
Assess
Analyze business processes, comparing requirements to Oracle
Process and Package functionality. Identify improvement opportunities achieved by enabling
those processes with solutions such as Oracle.
Assess the value, accessibility, and security of data and information
Security & Controls assets. Determine tasks related to maintain appropriate security
Deloitte
Present

and controls.
Discover

Assessment Analyze infrastructure requirements that are essential to future solution

Information Technology
Workshop support. Estimate effort and risk involved in customizing the software.
Assess current approach to communications, stakeholder
Change Management engagement, training, and transition. Determine steps required to
address adoption/sustainability of change initiatives.

Tax Identify and analyze enterprise's global tax strategy and related
statutory/regulatory requirements. Assess impact due to upgrade.
Approach

1. Assess 2. Discover 3. Approach 4. Present

Gather information about Discover new Analyze findings and Present high-level
the business drivers, R12 features and identify develop recommendations executive summary
current pain points, usage opportunities
of applications and
technical architecture

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 13

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

During the current state discussion we
will gather information about the
business drivers, current pain points,
Objectives 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

• Deloitte R12 Enterprise Value • Industry Trends and • Upgrade vs. • High Level Assessment
Mapped to Client Environment Impacts reimplementation Report
• Workshop Questionnaire • New Modules • Our EVD-driven R12
• R12 Vision & Strategy • Key R12 Features upgrade methodology
• Point Upgrades • Upgrade assessment tools
• Understand 11i Pain Points • Lessons learned
Key
Activities • Current Overall Landscape • Sample timeframes
• Technology Footprint
• Application Maintenance

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 14

For additional information about Oracle EBS R12 upgrades contact

David Maher damaher@deloitte.com

Copyright © 2012 Deloitte Consulting LLP. All rights reserved. 15

 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 www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member
firms. Please see www.deloitte.com/us/about 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

The following slides are presented by Oracle Corporation.

17
 <Insert Picture Here>

Delivering Value with Oracle E-Business Suite Release 12.1

Ognjen Pavlovic
Vice President, Application Development
 EBS Product Update: Continued Releases & Innovation
Ongoing Consumable Low Upgrade Cost Point Releases

Released Planned

Major Release 11i10 12 12.1 12.x

Minor Release 12.1.2 12.1.3 RUP1…RUP2…RUP3…

Nov. Jan. May Dec Aug

2004 2007 2009 2009 2010

19
 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
• Drive consistent, integrated best practices • Centralized Finance Architecture
CFO • Reduce cost of back office operations • Expense Reporting & Imaging
• Improve DSO and cash flow • Credit & Collections

• Develop enterprise wide HCM strategy • Performance & Compensation

VP • Improve talent acquisition effectiveness • 360 Degree View of Employee
of HR • Improve workforce retention • Succession Planning

• Manage and sense demand • Complete Value Chain Planning

COO • Optimize manufacturing operations • Manufacturing Operations Center
• Improve order accuracy & logistics efficiency • Enhanced Warehouse Management

• Understand how & where money is utilized • Spend Analytics & Classification
CPO • Achieve the best possible price for spend • Leverage Sourcing Auctions
• Ensure spend contracts are utilized • Run Spend against Contracts

• Fast and business oriented implementation • Business Accelerators

CIO • Accelerated user adoption • Pre-built UPK Content
• Lower systems management costs • Systems Management Packs

20
 R12.1 Opportunities for Customers
Enhanced Products and New SKUs Across the E-Business Suite

Enhanced Product Areas New Products in 12/12.1

• Buyers Workbench, Sourcing, • Spend Analysis, Classification &
Procurement Contracts, Electronic Invoicing, Supplier Lifecycle Management
iSupplier Portal

HCM • Learning Mgmt, Performance Mgmt, • Succession Planning, Incentive

Talent Profile, Incentive Compensation Comp Analytics/ HR Analytics

• Shared Services, Advanced • Financials Accounting Hub, Federal

Financials Collections, Internet Expenses, Financial Analytics
Channel Revenue Mgmt
• Value Chain Planning, Landed Cost
SCM • Enterprise Asset Management, Management, Manufacturing
Warehouse Management Execution

Projects • Project Management for Asset Based • Projects Analytics

Industries (Util, E&C, O&G etc.)

• Price Protection, Supplier Ship &

CRM • Service & Field Service Debit

• PIM for Telco, PIM for Retail, Site

MDM • Core Product Hub Hub, Supplier Hub
• Wholesale Distribution, Public Sector, High Technology , Engineering & Construction,
Industries Life Sciences, Retail, Professional Services, Communications, Consumer Goods,
Utilities

21
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
Finding Additional Information on 12.1
Accelerate your evaluation and planning

Contains
• Presentations
• RCDs
• RVPs
• Videos
• Customer
Stories
• White Papers
• etc
http://launch.oracle.com/?EBSUpgrade

23
 <Insert Picture Here>

Planning Your Roadmap

24
 E-Business Suite Support Timelines
5 Yrs of Premier and 3 Yrs of Extended Support

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Nov ‘10 Nov ‘13

11.5.10 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: http://www.oracle.com/support/library/extended-support-faq.pdf

25
Oracle E-Business Suite 12.x
Planned Enhancements

26
Post R12.1.3 Roadmap:
Functional Enhancements
RCDs are on MOS:
Doc 1302189.1

27
 50+ E-Business Suite Quick Wins Modules

Responsibility Quick Win Modules

Chief Sourcing, Contracts, iSupplier Portal, Spend Analysis, Spend Classification &
Supplier Lifecycle Management, Supplier Hub, Services Procurement,
Procurement OSN/Electronic Invoicing

Chief HR/Talent Learning Mgmt, Self Service Human Resources, Talent Profile, Incentive
Officer Compensation, Succession Planning, Incentive Comp Analytics, HR Analytics

CFO / Controller
Financials Accounting Hub, Advanced Collections, iReceivables, Internet
Head of Shared Expenses, Channel Revenue Mgmt
Svc

Chief Operations / Enterprise Asset Management, Warehouse Management, Mobile Supply Chain
(MSCA) Value Chain Planning, Landed Cost Management, Manufacturing
Manufacturing / Execution, Advanced Pricing, Spares Parts Planning, Depot Repair, Field
Logistics Service, Environmental Reporting and Accounting, SNO, Inventory Optimization

28
 Recommendations
Upgrade, Optimize, Extend

Upgrade Optimize Extend

Latest Oracle Performance with Oracle Business Value with
Applications Release Technology & Systems Co-existence Opportunities

E-Business VCP 12.1 Oracle SOA Suite Oracle SCM

BI Apps
Suite 12.1 Demantra 7.3 and AIA OBIEE Apps

ATG OTM 6.1 Oracle ADF & Oracle Identity Hyperion Fusion
Commerce 10 WMS 12.1 WebCenter Mgmt EPM Apps

Oracle Content Oracle Enterprise CRM

Agile GRC
Management Mgr Cloud

HCM
Exadata Exalogic ATG
Cloud

Industry
Apps

29