people soft migration

8/8/2019 People Soft Migration

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PeopleSoft Migration toMicrosoft Business Solutions

7.27.04

Prepared by a Microsoft Certified Partner


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PeopleSoft Migration to MBS [2]

PeopleSoft Migration toMicrosoft Business Solutions Abstract

Mid-sized companies and divisions of larger organizations currently using the PeopleSoft suite of Enterprise

Resource Planning (ERP) applications may be finding out that software designed for Enterprise Organizations

create a set of issues that they didnt expect. PeopleSoft is built with an extensive array of technical and

functional capabilities to meet the demands of a diverse global customer base.

Many customers rationalized their purchase with the idea that if it works for the big companies, it surely will

meet my requirements. That couldnt be further from the truth. While Mid-market companies require some

advanced functionality, such as multiple languages and currencies, they are generally lacking in the following

key areas:

Mid-sized companies dont have the same volume and scale requirements.

Mid-sized companies dont have large technical or functional staffs to support their ERP

implementation.

As the skill sets of functional and technical staffs are limited, training and ramp-up take longer. It may

also be necessary to supplement the implementation with expensive external consulting services.

The extensive functional capabilities may actually complicate rather than simplify the work processes.

The same holds true in the technical environment where advanced tuning skills are required to

maintain the systems performance.

In short, mid-sized companies may be burdened with a complex technical environment that they dont

understand, dont need and cant support.

The Microsoft Business Solutions (MBS) ERP applications, residing on the Microsoft Technology stack, offer a

cost effective alternative to PeopleSoft.

MBS products are designed with core functionality necessary for most Mid-market companies.

License and maintenance fees are less. You pay for what you need and you use what you pay for.

Upgrades take weeks not months. The applications can be tailored without expensive programming,

thereby reducing user training and maintenance costs.

The applications are built in a single database structure, providing for true real-time capabilities and

simplified business processes, which makes the end-users more productive and the systems more

easily adaptable to your changing business environment.

The reality is that many companies could migrate to the MBS suite of products in less time than their next

PeopleSoft upgrade and at less cost. The new implementation provides a customer the opportunity toconcentrate on simplifying business processes and eliminating unnecessary steps created to support the

software (i.e., batch processing activities). The new MBS environment will be easier for the end users to use

and maintain. Since most companies already operate some elements of the Microsoft technology stack, the

chances are good that the technical maintenance and support will also be readily available in house.


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>>> Contents

Comparing the Total Ownership Experience between PeopleSoft and MBS Axapta

o End User Functionality

o Implementation

Technical Maintenance & Support

o Periodic Upgrades

Putting it All TogetherTotal Cost of Ownership Comparison

Specific Issues or Concerns About Migrating from PeopleSoft

General Requirements

Should I Migrate from PeopleSoft to Microsoft


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>>> Comparing the Total Ownership Experience between PeopleSoftand MBS Axapta

The best way to illustrate the similarities and differences between the products is to compare and contrast

each of the aspects of ownership. Starting with end-user functionality and continuing through implementation,

training, technical support, upgrades, and Cost of Ownership, we can see that the MBS suite provides a more

cost effective ownership experience for Mid-market companies.

End User FunctionalityPeopleSoft offers a full product line across the ERP landscape, including Financials, Human Resources,

Customer Relationship Management (CRM), and Supply Chain Management. They also provide deep

functionality that has been built in over time through a combination of product enhancements and acquisitions.

PeopleSoft internally builds enhancements to its products through a combination of the PeopleToolsdevelopment environment and a highly table-driven design. While this adds flexibility, it introduces complexity.

A single transaction sometimes takes a user several screens to complete. Customizing the screens to reduce

input adds to the cost of implementation, support, and upgrades.

PeopleSoft also provides a modular design. Applications may reside on the same platform but in different

instances of the database. This is a great feature for scalability and also allows the ability to rapidly add and

integrate applications to the product suites through acquisitions.

The downside is a lack of data integration.

Batch processing is required to post information across the product suites.

Real-time integration is accomplished through an Integration Broker that adds another process to

implementation and maintenance.

Drill down to source data is difficult as you cross applications.

In contrast, the MBS Axapta products all reside in a single database. No need for batch processing or

integration brokers. Transactions automatically flow in real time across the application suite. Enter a customer

order in CRM and the appropriate areas of the Financial and Supply Chain modules are updated automatically.

The Axapta architecture is based on a data driven model. Customizations are easily accomplished at

appropriate levels.

Data drill downs are seamless and easy for an end user to accomplish.

Ad-hoc and structured reporting across applications is easier because the data is in one place and has

one tool.

PeopleSoft provides extensive reporting capabilities within their applications. In addition to standard reports

and ad-hoc Query tools, PeopleSoft makes use of Crystal reports and a utility called SQR for increased

complexity.

The most recent addition to the reporting family is a very sophisticated Enterprise Performance Management

(EPM) product suite that features data warehouse tools, integration across multiple data sources and Business

Intelligence capabilities, all of which give users the tools to build complex Key Performance Indicators and other

performance metrics. The EPM suite is an extra cost suite and comes at a significant price point.


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In contrast, MBS Axapta has the same powerful set of standard tools for query and reporting with built-in

capability to capture data across applications because it all resides in a single database. Axapta also includes

in the base price a comprehensive set of Business Analytics that give end users tools that they can easily learn

and use to build performance metrics to run their business.

The reporting tools are tied directly to the Microsoft software platform. Reports can be printed or

emailed directly from the desktop.

ImplementationThe time, cost, and resource commitment required to implement any suite of ERP applications varies widely

based on the number of modules, complexity, and amount of customization required. There are several widely-

held benchmarks within the industry that are used when defining the implementation process.

The length of a typical implementation can be from 4 to 12 months. Axapta falls at the low end of the

range with PeopleSoft in the middle and SAP at the high end of the range.

Implementation costs can run from a low of 1.5 to nearly 7 times the license fees to estimate

Implementation costs. Once again, Axapta is at the low end, with PeopleSoft in the middle of the range,

and SAP at the top.

External Consulting Resources are frequently used to support the implementation.

You can use Microsoft Pivot Tables

from Microsoft Excel to view data


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Lets examine these areas more closely as they relate to PeopleSoft and MBS.

Project Tasks & LengthThe typical project tasks associated with an implementation are generally the same regardless of the vendor.

The timeline may also be the same. In the table below is a list of standard tasks associated with a typical

implementation project. The project should take between 12 and 25 weeks. Significant differences begin to

show up in resource commitments depending on the complexity, degree of customization, and the availability

of internal resources to commit to the project.

Project Phase PeopleSoft Duration MBS Axapta Duration

Assessment (PM) 1 week 1 weekPlanning and Analysis 6 weeks 3 weeks

Design and Development 8 weeks 4 weeks

Testing and Training 4 weeks 4 weeks

Deployment 4 weeks 2 weeks

Total Implementation Project 23 weeks 14 weeks

Resource Requirement Est PeopleSoft Hours Est MBS Axapta Hours

Project Manager 120 80

Functional Specialist 880 560

Technical Specialist 880 200

External Consultants 880 400

Total Estimated Hours 2,760 1,240


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As we stated earlier, PeopleSoft applications are feature rich, but built with a table-driven modular design. Thisnecessitates several requirements for the implementation team, which oftentimes dont exist in a mid-sized

company.

Highly-skilled technical and functional resources to take on the complexity of the application.

More training courses to learn the key technical and functional elements of the software.

Greater dependency on external consultants to meet both the resource gaps and skill set gaps within

the organization.

Implementation CostsBecause of the complexity and design of PeopleSoft, the implementation is generally going to cost more than

the MBS suite. It will cost more because you will need to provide more training for your internal resources.

You will need to outsource or hire significant skill sets that you dont have in house (and theyre probably more

expensive). Also, youll need to customize the software to make it easy to use for your limited user team, ineffect, taking away the extensive functionality that you, as a Mid-market company, probably wont need or use.

If the average software investment for a typical PeopleSoft suite of modules in the Upper Mid-market is

between $500,000 and $2,000,000 (source GIGA Information Group) then the average implementation at the

mid-point of 3.0 times the license fees will run between $1,500,000 and $6,000,000.

Contrast that to MBS Axapta where the typical software investment for a mid-sized company is between

$150,000 and $500,000. At 1.5 times the license fees, the average implementation will only cost between

$250,000 and $750,000.

There are several reasons why this will hold true.

Axapta is designed to meet Mid-market needs, eliminating the need for customizations to make thesystem easy to use.

The product exists entirely on the Microsoft technology stack. This eliminates the need for excessive

technical training and learning new skills sets to implement and support the product.

The product is easier to learn and implement, thereby reducing the need for external consultants.

External Consulting ResourcesEvery Tier One vendor, including PeopleSoft, has a professional services organization. In the case of

PeopleSoft, the consultant base is nearly 4,000. They also charge premium rates up to $200 per hour.

In addition, all of the major system integrators have consulting organizations to support PeopleSoft, Oracle

and SAP. In almost every implementation, PeopleSoft recommends the use of their consultants or partners to

participate in the implementation. The number of external consultants can range from 2 to 10 full-time team

members, depending on the number of modules, time frames, and degree of complexity in the implementation.

MBS, on the other hand, has a limited consulting organization. Most customers work with local partners to

provide services on an as-needed basis to support their implementation. External consultants are rarely full

time for the length of the project and the total number is rarely more than 2 or 3.


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>>> Technical Maintenance & Support

There are several fundamental differences in the requirements to support the PeopleSoft environment vs. MBS

Axapta. The PeopleSoft Pure Internet Architecture requires a wide array of technologies and skill sets to install

and maintain. The annual vendor maintenance fees are 20% vs. Microsofts 16%.

Technology Stack RequirementsPeopleSoft supports all of the major database products on the market today. The majority of the customer

base is generally on a UNIX operating system with either Oracle or IBMs DB2 as the database. But thats not

all. PeopleSoft also requires Windows 2000 (or 2000 Server), Websphere or Weblogic, COBOL and SQR. This

is a robust operating environment that will scale to high volumes and large numbers of users. However, this is

probably outside the typical skills and requirements of a mid-sized company.

Contrast that to MBS Axapta. The single database architecture is SQLServer and the applications reside

completely within the Microsoft technology stack. Its likely that you already have some of the skill sets in house

running Microsoft Exchange and Office. The MBS Axapta is not likely to scale to the volumes that PeopleSoft

does. Is this something that a Mid-market company needsprobably not.

Technical ResourcesThe typical PeopleSoft environment requires at least three skill types that often dont exist in a single person.

Even if they did, you would require more hours in the day to support routine maintenance. The skills include a

DBA, UNIX Systems Administrator and a Technical Lead.

DBAThe PeopleSoft environment requires multiple instances of the databases and should be tuned

periodically to ensure optimal performance.

UNIX Systems AdministratorPeopleSoft in either an Oracle or DB2 environment requires a UNIXadministrator for installation, maintenance and upgrades.

Technical LeadThe technical lead will provide user support for reports and customizations. At a

minimum, skills include JAVA, PeopleTools, SQR, and COBOL at a minimum.

The MBS Axapta environment requires fewer skill sets and these can generally be shared with the existing team

that supports the Microsoft technology platform. In most cases, users can perform all of the reporting functions

and most of the system personalizationwithout a technical lead. Where PeopleSoft may require 2 to 3 people

to support the environment, MBS Axapta needs only 1 to 1.5 people.

Annual Maintenance CostsAccording to GIGA research, the annual cost to support a PeopleSoft environment is 20 to 25% of the initial

investment (including the cost to implement). MBS Axapta will be less because the vendor maintenance portion

is 16%, not 20% where PeopleSoft is today.

As the table on the following page illustrates, supporting a PeopleSoft environment every year is significantly

more expensive than MBS Axapta. As IT budgets continue to get squeezed, you need to ask yourself if you need

to pay for technology you may never use.


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Description PeopleSoft MBS AxaptaHardware1 $120,000 $120,000Software $500,000 $200,000

Implementation Cost2 $1,500,000 $300,000Total Investment $2,120,000 $620,000

Annual Maintenance %3 25% 21%

Annual Maintenance Costs $530,000 $130,200

This is an estimate of the base hardware configuration needed to run PeopleSoft or MBS Axapta. The

configuration requirements would be based on the volume, size and concurrent users. PeopleSoft operates in

a web-client environment that ultimately requires less processing power on the client machine. However, in our

experience, most customers are still providing more powerful computing environments for end-users as the

price/performance levels improve. Most customers also run some version of Windows, Exchange and Office

that negates the ability to use lower powered clients.

1 Hardware Costs

2 Implementation Costs

Using standard industry figures, PeopleSoft

implementation is calculated at 3.0 times the

software license fees; whereas, Axapta is

calculated at 1.5 times the software license fees.

3Annual Maintenance %

This percentage is an industry average quoted

from GIGA research and represents the total of all

costs associated with operating and maintainingthe applications. It includes software maintenance

and support from the vendor, internal personnel

costs, and external consulting fees. MBS Axapta

is calculated at 4% less, as their annual software

maintenance is 16% vs. PeopleSofts 20%.

Processor ....................8 @ 750 MHz

External Cacheper Processor ...............8 MB

Memory .......................32 GB (64 @ 512 MB DIMMS)

10000 RPM FC-ALDisk Drive ....................12 @ 36 GB

DVD-ROM 10 Drive .......1

Gigabit Ethernet Port ... 1

Ethernet Port ...............1 @ 10/100BASE-T

Serial Port ...................2 RS-232C/RS-423

Power Supply ...............3 @ 1500 Watt

Server License .............Yes

List Price ....................$119,995.00


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In the previous graph, we used the following factors to calculate our costs.

Hardware CostsWe assumed that both products would require the acquisition of similar hardware

platforms to run similar volumes and end users.

Software License FeesBased on the low end of the average for PeopleSoft from GIGA research

report dated August 2002. Actual pricing for Axapta is based on a 600 user complete suite of modules.

ImplementationCalculated at 1.5 times the license.

UpgradesTwo upgrades over the 5 year period. PeopleSoft calculated as a three-month effort with

two external resources at $24,000 per month each. Axapta is calculated at one month with two

external resources at $20,000 each.

Annual Support CostsPeopleSoft is calculated at 25% of the initial investment and MBS Axapta

is calculated at 21% of initial investment. Initial investment equals hardware, software, and

implementation costs. The difference is that software maintenance fees are 20% for PeopleSoft and

16% for Axapta.

What could you do with an extra $600,000 added to your bottom line each year? If you are facing your next

PeopleSoft upgrade or just frustrated with the complexity of the applications, perhaps its time for a change.

>>> Specific Issues or Concerns About Migrating from PeopleSoft

If you are interested in transitioning from PeopleSoft to a Microsoft Business Solutions product, there are

several areas that need to be considered when making the transition.

Data and Process MigrationThe PeopleSoft applications are different and there are several areas around the structure of the data and the

business processes that must be examined when considering a migration.

PeopleSoft databases require case sensitivity, while Axaptas database is inherently case insensitive,

leading to potential data integrity issues during migration. This is usually handled in the migration

toolsets of each product.

Data model incompatibilities (e.g., the use of Set IDs, BUs, and tree structures) between PeopleSoft

and Axapta raise issues with data migration and/or consolidated reporting.

PeopleSoft is modular and therefore uses a number of batch processes to flow data through their

systems. Business processes will most likely need to be refined and simplified because Axapta doesnt

require any batch transactions to post transactions.

Technical support and maintenance procedures require redefinition. In most cases, it will be learning

the single database structure and highly flexible Axapta layering tools for customization and upgrades.

Migration of data out of PeopleSoft into Axapta must go through the Axapta import wizard to maintainintegrity; whereas PeopleSoft typically imports and exports directly to/from the database.

External InterfacesPeopleSoft and MBS use different technologies to interface and integrate with external systems. An analysis of

any third-party interfaces is required and the following may require additional development in Axapta.

Interfaces, reporting, extraction, and maintenance tools, as well as electronic business exchanges

must be carefully reviewed and, in most cases, will require a significant redevelopment effort.


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If you are using component Interfaces into PeopleSoft, these must be rewritten using Axapta COM+

Connector.

If you are using Integration Brokers and Application Messaging into and out of PeopleSoft, Microsoft

BizTalk and .NET technologies will be required to replicate this in Axapta.

Reporting RequirementsAs noted earlier, PeopleSoft has built-in Query capabilities plus three additional reporting toolsSQR,

Crystal Reports and nVision for General Ledger. The reporting tools in Axapta are capable of meeting all of

the reporting needs. As part of the migration, the reports currently produced in PeopleSoft should be evaluated

and redeveloped in the Axapta reporting tools.

nVision ReportsProvide high-level financial data mostly from the General Ledger. These reports

can be generated in the basic Axapta application report writer and also provide significant drill-down

abilities into the source date. Users should consider what nVision or Crystal reports could be replacedwith effective drill downs to source data within Axapta to reduce output.

Report DistributionAxapta reports can be generated by individual users and distributed in hard copy

or by email. Check the distribution process within PeopleSoft to see if it can be simplified in Axapta.

Business IntelligenceAxapta incorporates extensive OLAP capabilities. See if any SQR or Crystal

reports are sending data to external OLAP systems, which may be replaced in Axapta.

SQR ReportsCertain types or SQR reports that perform complex routines may need to be built using

custom code in Axapta. These reports should be analyzed and redeveloped only if necessary.

>>> General Requirements

End User and Technical Support Retraining RequirementsPeopleSoft and MBS Axapta have similar interfaces in that they both operate in a Windows environment.However, users and technical staff will need to be trained in the applications and technical architecture. MBS

offers complete documentation and a full range of online and classroom training options to minimize the time

and expense of training.

Architectural Requirements and CompatibilityBefore embarking on a migration, make sure that any non-MBS initiatives that might affect the ERP applications

will be compatible with the new environment. Its also important to review the configuration of the desktops to

ensure that Axapta client deployment requirements are met.

Application Functionality DifferencesPeopleSoft Uses hierarchical tree structures in financial reporting and chart field validation. Axapta uses a

concept called Dimensions. These differences must be reconciled as part of the migration.

PeopleSofts application modularity makes it more cumbersome to navigate, access data, and maintain tables.

Axapta operates in a single environment. This will result in considerable business process differences. For

example, its no longer necessary to run batch AP posting jobs each night. That, in turn, eliminates the need for

daily reconciliation of the AP interface.


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>>> Should I Migrate from PeopleSoft to Microsoft?If you are thinking about simplifying your ERP applications and reducing the total cost of ownership, give

yourself a simple checkup.

Capture total cost of PeopleSoft Operations

o Annual Vendor Maintenance Fees

o Internal Support Personnel

o External Consultantsif any

o Extra SoftwareFor example, Oracle Database if PeopleSoft is the only application running on it

Evaluate your latest PeopleSoft upgrade

o How much did it cost?

o How long did it take?

o How many external consultants were involved? Evaluate your PeopleSoft technical environment

o Are there excessive customizations?

o What are the transaction volumes?

o What is the number of users?

o Is the technical PeopleSoft environment stable?

Evaluate your PeopleSoft functional environment

o Measure user satisfaction

o Identify functional gaps

o Determine user productivity issues

Evaluate MBS Axapta

o Compare functional requirements to Axapta features

o Evaluate Microsoft technology stack

o Identify product gaps

o Identify data conversion issues

o Identify system interface and integration issues

o Develop High-level Migration project plans and cost estimates

Prepare an ROI analysis

o Identify the Benefits:

Improve employee productivity

Reduce software maintenance costs

Reduce upgrade costs

Eliminate unnecessary software license fees

Eliminate external consultants

o Identify the cost to migrate

Calculate new software license and implementationCalculate ongoing TCO

o Calculate ROI

What are the annual savings?

What is the payback period?

A structured ROI tool should be used to analyze and justify any large IT decision. ROI is the most important

metric to use for choosing an application and prioritizing projects within a company during budgeting.

ROI = average benefit over three years/initial cost.


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Payback Period is the time it takes for benefits returned to equal the initial cost of the project. This is a

key measurement of riskin the rapidly-changing technology area, look for payback periods of less than

one year and dont be afraid to discard a solution in favor of a better one once the solution has surpassed

its payback period.

For companies that havent defined a corporate standard for ROI analysis, objective companies such as

Nucleus Research provide toolsets to capture the appropriate cost, identify the benefits, and calculate the

numbers necessary to make informed choices.

people soft migration

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