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Oracle E-Business Suite Global

Implementation Project

ERP Projects
According to market research data, ERP projects
55 to 75% does not meet its objective
31% cancelled before completion
53% cost 189% more than original estimates

Cause of failure
Cross-functional agreement on enterprise wide business processes
Lack of visible, vocal, and meaningful executive sponsorship
Lack of formal and disciplined project management
Project team turn-over of key staf
Inability to identify and mitigate risks or remedy incidents that ultimately
escalate
Troubled user adoption
Too much software customization
Project viewed as IT project
Inadequate data cleansing
Source: Gartner, Analyst Firm and Standish Group, Research Firm

ERP Project (R12.2.3)


Its a Success but were not done yet!
One track, out of 6 is not ready

Project is under budget


66% reduction in customization
Global implementation
Finance, Supply Chain, Manufacturing, and Sales & Marketing
40 Oracle modules, including 8 new modules
Retrofit Enterprise Data Warehouse, reports and BI applications

Simplified
Org Structure (OUs, SOB, Inventory Orgs)
Pricing
Intercompany etc

Standardize on Oracle
Remove Trade Mgmt module build on Force.com
Replace Ariba with Oracle Sourcing
3

We faced challenges
Executives misalignment
Inefective implementation approach
Oracle Business Accelerator (OBA)

Cost over-run
Lost key resources
Much higher customization than
assumption
Missing detailed project plan
4

Our Journey

Dec-2011:
RFP
System
Integrator
Selection
Feb-2011:
Oracle R12 Upgrade
Assessment

Year 2012:
Several Upgrades
AIX to Linux
Exadata, Exalytics,
Exalogic

Apr-2013:
Kick-of
R12 Reimplementation

Aug-2006:
Oracle EBS R11i
Implementation

While waiting for R12 project


approval
Upgrade Infrastructure
Implement Oracle Exadata, Exalytic, Exalogic
Moved from AIX to Linux platform
Data center consolidation

Upgrade various up/down-stream systems that interact with Oracle ERP


Study various other application modules that could be a good fit for Com
Nameh biz
Oracle documentation, white papers
Product demonstration and discussion with product managers at Oracle and on-site

Prepared Project Infrastructure:


Oracle Content Management: Document Management System:
iGrafx: Process Flows Documentation
Jive: Business Social Media for Project related documentation & communication
HP-Quality Center : Defect Tracking System, documenting test scenario/cases
HP-ITG: Code migration
OUM (AIM) Templates (BR100, MD50, MD70 etc)
MS-Office, Project - 2007

Project Objectives
Standardize using
R12 mega
processes one version of the
truth for reporting
and analytics
Simplify with
streamlined
processes

Simplify

Standardi
ze

Globalize

Orac
le
R12

Global integration to
promote organization
alignment and
enterprise efficiency

Reduce
Customizatio
n

Reduce
customization
with a focus on
market
diferentiators in
the core areas

Optimize for core areas of diferentiation. Drive for


competitive cost and performance in all other areas
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Scope
Mega
Processes

Developmen
t
(in scope)

Out of
Scope

Forecast to Plan Source to Settle


Build to Stock
Order to Cash

Oracle
(RICEW)
Data Conversion
Less than 10%
customization of
current level

Business
Intelligence
Retrofit BI Reports
Retrofit BI
Applications
Retrofit BI
Dashboards

Market to
Customer
Finance to
Manage

Integration
Edge applications
(OTM, PeopleSoft
etc)
Third-party
systems
Trading Partners

Lifesize processes
PLCM

Oracle Modules
Financials

Credit
Management

Manufacturin
g

iStore

Sales &
Marketing

General Ledger

iExpense

Bill Of Materials

Shipping

Channel
Revenue Mgmt

Accounts
Receivable

Sub Ledger
Accounting

Work In
Progress

Global Order
Promising

Deduction
Management

Costing

Procurement

Channel Rebate
& POS

ASCP

Quality

Purchasing

Collaborative
Planning
Demantra
Demand
Planning
Mobile Supply
Chain Mgmt

Engineering

iProcurement

Application
Admin &
Integ

Order Mgmt
& Logistics

Sourcing

Order
Management

iSupplier Portal

E-Comm
Gateware

Inventory

Advanced
Pricing

Supplier Life
Cycle Mgmt

Workflows &
Alerts

Accounts
Payable
AGIS
Intercompany
Cash
Management
Advanced
Collection
Fixed Assets
E-Biz Tax

Supply Chain
Plan&
Logistics

Trading Comm
Architecture
XML-Gateway

Cost
System Integrator Cost
Functional Consultants
Project Management

Data Conversion & Data Cleansing Cost (Opex)


Development Cost
Oracle Development (RICEW)
BI/EDW Development
Integration
DBA/Tuning Expert

Professional Fees
Incremental Employee Cost
Business/IT resources dedicated to project (a backup resource is hired to do
their regular job)

New Software/Hardware Cost


Internal Resource Cost (rough estimate)
10

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Pr

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it o
za
i
n
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rg

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c
ru
t
S

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Project Governance Approach


Project Governance Structure
Selected
Strategic
Decisions

Executive Sponsors
Com Nameh
Steering Committee
Steering Committee Chair: Com Nameh Executive Sponsor
Com Nameh Executives, IBM

Key
Business
Decisions

Project Governance
Project Governance Leaders: Com Nameh Project Executive Director, Com Nameh Project
Manager,
IBM Project Manager

CrossFunctional
Decisions

Mega Process
Business
Leads

Testing Lead

Technical
Lead

Organization
Change
Management
Lead

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Detailed
Team
Decisions

5%

15%

80%

Project Plan
Issues / Actions
Log
Key Business
Decisions Log
Change
Control/Scope
Management
Risk Log
Status Reports

Workplan & Milestone Planning

Cascading Milestone &


Workplans

Program
Team

MASTER SCHEDULE

PMO

Milestone 1
Milestone 2
Milestone 3
Milestone 4

Alignment

Mega
Process
Teams

WORKPLANS
WORKPLANS
Activity
1
WORKPLANS
Activity
2 1
Activity
Activity
Activity
3 2 1
Activity
Activity
Activity
Activity
4 3 2
Activity
Activity
4 3
Activity 4

Mega Process Teams will maintain detailed Workplans that align with
the schedule requirements of the overall Project Plan. The overall
Project Plan does not contain the high level of detail contained in the
Mega Process Teams Workplans.
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Oracle Unified Method


(OUM)
OUM is rapid, broadly adaptive, and business-focused
It uses project phases and processes to include quality
and control checkpoints and allow coordination of
project activities throughout the project
OUM Phases:
Inception Global design phase
Elaboration Detailed design, create prototypes, and
baseline architecture
Construction Functionality development and System
integration testing
Transition User acceptance testing, training, and launch
Production Operate on new system and support users
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High-level Project Plan

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Test Cycles and Objectives


CRP1
Conference
Room
Room Pilot
Pilot

CRP2
Conference
Conference
Room Pilot

SIT1
System
System
Integration
Integration Test
Test

SIT2
System
System
Integration Test
Integration
Test

UAT
User
User
Acceptance
Acceptance
Test
Test
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Out of the box process flows


Demonstrate new modules, fit/gap analysis

End to end biz processes on a completely


configured system
Validate customization requirements (no
customization)
Test 70% Customization and master date
conversion
End to end biz process flows with developed
objects
100% customization and data conversion
Test end to end biz process flows
Validate processes and system readiness by
SMEs and biz team and sign-of
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Project Cadence
Weekly meetings
Monthly/Bi-weekly meetings
Daily meetings
During CRPs, SITs, UAT daily wrap-up
calls

Change Management meetings as


needed

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Challenges early on !!
6 weeks behind schedule
Misunderstood OBA potential, resulted delay in CRP1
instance
Reduced CRP1 scope from 12 OUs configuration to 7 OUs
Delayed starting first CRP

Executive misaligned
Project objectives: total transformation vs tech upgrade
Customization vs standardization discussions were
contentious
Not clear when to allow customization

Projected cost 35% higher than original estimates,


in first 5 months
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Actions taken
Executive alignment workshop (4 weeks)
A small group, led by IBM, conducted Executive Alignment workshop
Several key decisions made
Executive Mega Process ownership established
Steering Committee reformed
Strategies where customization is permissible

Controlled projected cost over run


Took over project management and organization change management
responsibilities
Used internal IT resources where ever possible
As we gain control on IT tasks, we roll-of external consultants

Adjust the plan


Re-assessed project tasks
Detailed planning for the Construction Phase
Added 4 weeks to the schedule

Team alignment, motivation, mentoring, put forward challenging tasks


with positive reinforcement!
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Our Success Factors


Strong executive sponsorship & support
Monthly, Bi-weekly steering committee meetings
Update Board members on quarterly basis
Monthly, Quarterly blogs and update in All Employees meeting on quarterly basis

A dedicated, smart, and committed team !!


Efective organizational change management
Thorough stakeholder analysis
End-users training plan and training material preparation
Document and communicate project progress, whats changing
Regular updates to Business Change Leads

Efective project management


Catch warning signals early on and proactively taking actions
Detailed planning and efective monitoring & controls
Clearly defined milestones and deliverables
Well defined roles & responsibilities
Processes & infrastructure templates, change management, risk management,
issues & decision logs, defect tracking, collaboration tools etc

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Tips & Techniques

Prepare for ERP Project


Pain points, hybrid solutions, complex processes
Data Quality
Integration map
up/down-stream systems, customers, vendors, partners, third party

Stakeholder analysis
Inventory of customization (RICEW)
Implementation strategy
Upgrade, Re-implementation, Hybrid

Study and research new modules


Scope outline
Estimate level of eforts involved
Exit strategy
Project infrastructure
Tools, Technologies
Templates
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Implementation vs Upgrade

Source: Deloitte Consulting

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Tips & Techniques

Clearly define project objectives and scope


Facts and assumptions
Communication plan
Detailed WBS, space milestones evenly
Monitor and control
Data cleansing, cut-over planning
Efective organizational change management
Current system, customization, processes, and
pain points
Teams capabilities and training needs
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Tips & Techniques


RFP Responses
Its usually long, read it carefully
Verify scope and deliverables
Check resource estimates
Fees, rate chart negotiate!

Screen SI consultants
Team structure, Roles & Responsibilities, RACI
SI vs IT work responsibilities
Work as a team
Plan contingency
Exit plan for legacy system
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Red Flags
Look for early warning signals and take
appropriate action:
No milestones
Missing periodic checkpoints
Missed milestone and deadlines
Shifting priorities and specifications
Infrequent or weak executive sponsorship
Staf turnover
Poor incident management and spotty
reporting
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Critical Factors for Successful Change


Soft
Factors

Hard Factors

The most successful companies


have realized that behavioral
and cultural change are crucial
to project success and are
considerably tougher to address
than the so-called hard
factors, such as structure,
performance measures and
incentives the soft stuff is
the hard stuff.

Real change depends on


transforming attitudes
throughout the organization and
its business partners. Above all,
people change business.
Therefore, practitioners place a
key responsibility for successful
change right at top
managements door.

92%

Top management sponsorship


Employee involvement

72%

Honest and timely communication

70%

Corporate culture that motivates


and promotes change

65%

Change agents (pioneers of change)

55%
48%

Change supported by culture


Efficient training programs

38%

Adjustment of performance measures

36%

Efficient organization structure


Monetary and non-monetary
incentives

33%
19%

Factors for successful change

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Key Success Factors


Organization understand the reasons and strategy behind the move
Executive sponsorship and support
Their job is to remove barriers and roadblocks

Develop project structure and clearly define roles and responsibilities


Efective Organizational Change Management
Identify key changes to system processes and organizational structure
Business Change Leads to communicate to end-users (formal & informal)
about the upcoming changes
Assess training needs, train end-users, provide refresher training as needed

Efective post go-live support


Decommission legacy system, reiterate benefits of new system
Manage expectations and identify area of continuous improvement

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Abstract
Oracle E-Business Suite 12.2.___ ERP implementation at Com name
began with four clearly defined objectives: process simplification,
standardization, globalization, and customization reduction.
It involved global implementation of Oracle Financials, Oracle Supply
Chain solutions, and moreplus several new Oracle modules.
Com Name standardized on Oracle by replacing hybrid systems such as
Tally ERP and several custom solutions.
It simplified the org structure, pricing, and intercompany and global
banking processes and cut customization to one third.
This session discusses the strategy, implementation method, and project
management and ofers advice, with practical tips and lesson learned
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