r12 --- a big step forward prepared for norcaloaug january 17, 2008 partnership for success october...

R12 --- A Big Step Forward

Prepared for NorCalOAUG

January 17, 2008

Partnership for Success

October 12, 2007

2 • 10/12/07Proprietary and Confidential

About XsigoAbout NaviSiteXsigo Project Objectives & Decision ProcessScope of the ProjectImplementation ApproachR12 FeaturesWhat Worked WellWhat Did Not Work So WellUpgrade ConsiderationsSummary

About XsigoAbout NaviSiteXsigo Project Objectives & Decision ProcessScope of the ProjectImplementation ApproachR12 FeaturesWhat Worked WellWhat Did Not Work So WellUpgrade ConsiderationsSummary


About Xsigo

• Founded 2004 • Location:

– Sunnyvale, CA

• Funding– Kleiner Perkins,

– Greylock Partners,

– Khosla Ventures

– Juniper Networks

• Board members include:– Ray Lane: Former President, Oracle

– Mark Leslie: Co-Founder, VERITAS

– Vinod Khosla: Co-Founder, Sun

– Ashok Krishnamurthi: Founding team at Juniper

“Xsigo offers a compelling solution that delivers I/O virtualization. Solutions like this will enable greater flexibility and change the way organizations deliver IT services.”

- John Humphreys, IDC


VP780 I/O Director24 Server ports•Expansion switch available for connection to hundreds of servers

15 I/O module slots• 4 X 1Gb Ethernet• 1 x 10Gb Ethernet• 2 x 4Gb Fibre Channel• SSL offload module

Hardware-based architecture• Fully non-blocking fabric• 780 Gb/s aggregate bandwidth

4U height

Redundant hot swappable fans and power supplies.

Custom silicon• Line rate throughput


How Xsigo Helps

70% fewer cables, cards.No edge switches.

Without Xsigo With Xsigo


About NaviSiteAbout NaviSite


NaviSite – Fast Facts

• Founded in 1997

• Employees: ~700

• Customers: ~ 1400

• Bay Area Office: San Jose

• Other major offices

– Key Offices: Andover, Houston, Atlanta, Chicago, New York, London

– West Coverage: San Jose, Portland/Seattle, Los Angeles, Denver

– Offshore Operations: India - New Delhi

• Data Centers

– 16 facilities around the globe (including Las Vegas, LA, San Jose, San Francisco)

– N+1 Redundancy in All Critical Systems

– SAS 70 Type II Certified

Visit us at: http://www.navisite.com/


Services Overview• Hosting Services

– Application Management (Oracle, 3rd Party, Custom Apps)– Managed Messaging – Managed Services for IT Infrastructure– Content Distribution– Dedicated Web Hosting– Co-location Services

• Professional Services– Planning, Implementation, Upgrades, Maintenance, Optimization,

Compliance/Governance• Technology: Architecture, Infrastructure, BI, DWH and Security• Applications: Oracle Application Products

• Outsourcing Services– IT Planning Services– Custom Application Development & Management Services– Software QA and Testing


Hosting Services at a Glance Hosting Services at a Glance

Hosting & Application Management Delivery Team

Managed Applications

Demantra/Agile/

HyperionOracle Siebel PeopleSoft JDE

Capabilities

Client/Account Management

Support (Level I – III)

Application Management

Upgrades PatchingSystem

Enhancements/Customizations


Professional Services Offerings at a Glance

Program & Project Management

Business ConsultingSystem Selection Process

Enterprise Technical Architecture

ERP and CRM System Implementation and Transformation

Applied Technology Services (Custom Development, Conversions, Interfaces)

Adoption & Learning

Health check &Assessment

SOX - Compliance &Governance

UpgradeConsolidation

M & ASpin- Off

EnterpriseBusiness

Intelligence

OptimizationServices

Change Management

Global Delivery Global Roll Out

Man

aged

Services

Ind

ust

ry B

ased

So

luti

on

s

PEOPLE• Right blend of product knowledge,

business / Industry experience and

consulting skills• Global Presence

PROCESS• Use Oracle’s AIM Methodology• Establish a Global Business Model• Facilitated Workshops Approach

TOOLS• Utilize Process Flows Approach• Use tools and templates for rapid

deployment

Core Technology Services (Database, Middleware, Messaging, Security, Enterprise Management)

Enterprise Business Process ExecutionData Hubs / Data Consolidations

Business ContinuityHigh Availability / Disaster Recovery


Xsigo Project Objectives & Decision Process

Xsigo Project Objectives & Decision Process


Prior State of ERP: August, 2006

• Development stage company• Running 3rd tier ERP

– Order Entry, MRP, Financials

• 3rd party products spec’d for CRM, configurator, etc..– Integrated via middleware– No solution for installed base, fixed assets– Limited global capabilities

• Desire to build ‘Best in class IT infrastructure’– Significant functional expectations across the business

• Rapid global growth expected


ERP Decision Drivers

• Strong functionality• End to end enterprise management and reporting• Jump-start best in class business processes• Build foundation for global growth• Lowest total cost of ownership• Partnership with ERP vendor and Integrator


ERP Alternatives Considered

• Plan of record: Tier3 ERP + other 3rd parties + middleware– Requires upgrade to Tier1 in 12-18 mo.

• Tier 2 applications– Requires upgrade to Tier1 in 24 mo.

• Tier 1 applications– Higher cost in near-term


Initial Decision: Oracle 11.5.10 + Navisite

• Lowest total COO:– NPV of Oracle/Navisite solution 5% -25% lower than

other alternatives– Far less business disruption implementing now vs.

upgrading later

• Best in Class business templates– Lower implementation cost– ‘Quantum Leap’ in process & controls– Shortens path to SOX 404 compliance

• Hosted by Navisite• After first month (coinciding with the Oracle R12

release), decision changed to deploy R12 based on new functionality and Xsigo's commitment to stay with state of art technology.


Decision to move to R12

• Nov 06: Decision finalized on Oracle• Jan 07: Project started with 11.5.10

– R12 not available until late January

– Original go-live planned for April 1, 2007

• Course change in Feb 07: implement R12– Key new/improved functionality:

• Greatly improved UI (esp. in CRM Modules)• Pre-delivered report templates• Other technology enhancements (HTML, etc.)

– Avoid costly and time-consuming upgrade in 12-15 mo.

• Added 1 month to schedule: went live on schedule May 4, 2007


Scope of the ProjectScope of the Project


Major Implementation

• 20 business applications• 36 business workflows• First R12 deployment in North America

– 2nd worldwide (‘Like Avis: We try Harder!’)

• 3 ½ months from kickoff to go-live– 5 months from contract signing


Scope SummaryScope Summary

Business Area Oracle Business Flow Oracle Applications

Accounting

Accounting to Financial Reports

GL, AP, FA, AR, CM

Procure to Pay PO, AP, iExpense, iProcurement, iSupplier

Manufacturing Design to Release ENG, INV

Forecast to Plan MRP, OM

Sales Click to Order iStore, OM, INV

Order to Cash OM, BOM, INV, AR, PO

Opportunity to Forecast Sales, Quoting

Service Service Contract to Renewal Service Contracts, OM

Click to Resolution iSupport, Service Contracts, Teleservice

Human Resources

Hire to Retire Core HR

• 36 Oracle Business Flows:– Manufacturing: 13 – Sales and Service: 12– Accounting: 9 – HR: 1


Business Transactions

Mfg Forecast

MDS

MPS

Planned Order

Returns ServiceShipSell BuyPlanDesign

Item

BOM

ECO

Design Graphics

Req

PO

Receipt

Asset

Payment

Lead

Oppty

Sales Forecast

Quote

Contract

Order

Pick

Pack

Ship

Invoice

Service Request

Contract Renewal

RMA

AE

The key Oracle data objects & transactions:


Oracle Solution Footprint

Resellers

Oracle Applications

SalesLeads, Oppty,

Quotes, Service Contracts, Order,

Marketing, Proposals

Service Service Requests,

Returns

ManufacturingDesign, Plan, Manage &

Value Inventory, Procurement

A/R

General Ledger

Vendors

Supply ChainMake to

Specification

Distributors/Customers

Distributor

SalesRep Orders,iStore, Partner Mgmt,

iSupport, Returns

End Customer

Reseller

Future=

Purchasing, A/P, FA

April 1: for all Oracle products but iStore, Marketing, Proposals, Partner Mtgmt, Ebusiness for Financials

Order Management

Pick/Ship, Returns

Human Resources

ship


Architecture: Hardware

• Single Node• HP Linux server• 12 GB RAM• 4 CPUs @ 2.2Ghz

Database Tier

• 3 SUN V240 Servers• 2 x 3 CPUs @ 1.2 GHz• 8GB RAM• N + 1 Load Balance

Architecture

Middle Tier

• EMC Clarion CX300• 500GB Storage• Raid 1+0 for production• 1 Hot spare• N+1 Power Supply

Storage Tier

• iSupport, iExpenses• iStore, IProcurement

i-application Tier


Architecture: Technology StackTech Stack Component Version

Database 10.0.0.2

Oracle Applications 12.0

Application Server 1.0.2.2.2

J-Initiator 1.3.1.25

Portal 10.1.2

OID 10.1.2


Implementation ApproachImplementation Approach


We employed a proven implementation approach to accelerate implementation and mitigate project risk

• NaviSite provided the right blend of product knowledge, business experience and consulting skills.

• The project organization model optimized Xsigo / NaviSite resource mix.

• The Project Management Methodology has an integral component for risk identification, tracking and mitigation

• We established a Business Model Facilitated Workshops for key decisions

Established a common understanding of Xsigo Systems business model and process flows

• Leveraged Business Flows to:

Stimulate discussion of business requirements

Review leading practices and best use of Oracle applications

Establish an initial Conference Room Pilot

• Use of Accelerators with AIM for Business Flows tools, templates

PEOPLE

PROCESS

TOOLS

CostCost

TimeTime

QualityQuality

Achieving a balance between time, quality,

and cost


Utilize Standard Templates

Determine ExceptionDispositions

Update Flows

Update Procedures

Update Setups

Update Test Script

Prepare CRP 3.0Environment

Conduct CRP 3.0

Identify Exceptions

Determine ExceptionDispositions

Update Flows

Update Procedures

Update Setups

Update Test Script

Prepare CRP 2.0Environment

Conduct CRP 2.0

Identify Exceptions

Definition Build ProductionTransitionElaboration

Project Planning

ConductCRP 1.1

(Familiarization)

ConductCRP 1.2

(Mapping)

Identify Exceptions

ConductBusiness

Architecture Workshops

DesignExtensions

PrepareCustom

Test Scripts

Create and test Custom

Extensions

PrepareProduction

Environment

Convert and Verify Data

BeginProduction

MaintainSystem

ProposeFuture

Direction

Perform SystemsIntegration

Test

PerformAcceptance

Test

Using standard templates as baseline and minimizing exceptions allowed for a 3 ½ month implementation


Project Team

• Executive/Board Buy-in• Steering Committee:

– VP Operations, VP Finance, VP Support

• Implementation Team:– Functional ‘Power Users’ - 8

• Operations• Accounting/Finance• Sales

– IT: Director & Progr/Analyst– Navisite:

• Project Lead• Consultants 6-7

Total – 18 people


R12 FeaturesR12 Features


R12 Features used at XsigoR12 Features used at Xsigo• Costing

– Deferred COGS - defer COGS and recognize at time of Revenue Recognition

• Sales– Create leads and opportunities directly from the customer record

– Email Interactions: Oracle Sales for Handheld, e-mails sent or received using Outlook are logged in Interaction History for Contacts and Customers

• Sales Offline– Mobile users can create/update leads, opportunities and quotes while out in

the field and synchronize the new lead information back to the database.

• Sales for Handheld– Create and manage appointments and contacts via MS Outlook for

synchronization up to the database

– Create and manage appointments and contacts via the database for synchronization to the database MS Outlook.


R12 Features used at XsigoR12 Features used at Xsigo

• Purchasing– Professional Buyer’s workcenter – easier user interface with all a buyer needs

in one html form - Autocreate PO, create and query PO’s and blankets

– Professional Buyer’s workcenter shares the catalog with iProcurement

• Payables– XML for AP checks

– Payment workbench – easy to see status of job, next step and payment statistics

• iSupplier Portal– New supplier onboarding process as well as supplier managed user

maintenance

• Teleservice– New HTML Customer Support Dashboard with work list

• Xsigo preferred over Universal Work Queue because of it’s ease of use and ability to pick SR’s and Task’s from Group Queue


R12 Features used at XsigoR12 Features used at Xsigo• Service Contracts

– Approvals Management pulled out of Service Contracts and now contained in "Common" location and shared across modules

• Helped consolidate approvals management process, provided greater flexibility in assigning appropriate approver

– HTML Renewals Dashboard allowing users easy access and viewing of contracts available for renewal

• Light use currently, but in the future will give Contract Renewals manager central dashboard to view contracts up for renewal, which assists the automatic notifications that are generated from Service Contracts up for renewal

• iSupport– Enhanced Self Service Registration to leverage shared iStore user interface

• Very helpful in getting Xsigo the user registration they desired, and it is fully compatible with future iStore needs

– Ability to group Case/Request Types into Case/Request Type Categories for Logical display in iSupport

• Allowed Xsigo to categorize the Service Request types which greatly enhanced the “usability” for customers


R12 Features used at XsigoR12 Features used at Xsigo• Install Base

– Entirely new HTML user interface...dramatically improved functionality• This was critical at Xsigo, they found 11.5.10 to be virtually unusable in it’s former state. New

functionality provides; breadcrumbs to return to higher level information, significant increase in instance data organization, which allowed for easier user understanding and training, easier to build and display Item configurations (think ATO)

– Increased integration across Service Contracts, Teleservice, OM and Field Service allowing easy instance creation, update and transfer

• This was used across the spectrum for Xsigo to view Install Base properties, and will be utilized in the future as their Install Base matures and requires greater product maintenance

• Knowledge Management– Allows users to search for unstructured content stored in external locations such as files

servers.• Xsigo planned to take advantage of this in the future when they load specs and documents on

Chassis

– Extended Search capabilities to utilize the commonly used double-quotes "Search" • Xsigo really needed this enhanced search capability to locate relevant “solutions” stored in the

Knowledge Repository


What Worked WellWhat Worked Well


What Worked Well• Solid Partnership between Oracle, Navisite and Xsigo• NaviSite Consulting Services

– Excellent team of consulting resources– Very knowledgeable about the Oracle modules/flows

• NaviSite Hosting Services– Effective 24x7 support; Xsigo did not need to employ a DBA– “One neck to choke” with Navisite providing both hosting & consulting

• Resources & Support from Oracle– Due to R12, Oracle assigned a critical account manager– CAM helped facilitate direct communication with development

• Xsigo– Strong executive support– Strong commitment to go “vanilla”– Dedicated resources


What Worked Well – cont’dBenefits from Oracle ERP

• Integration across the enterprise• Sales force and support automation• Highly functional customer portal• Global capabilities• Common skillset• Consistent, accurate and timely reporting• Automated Workflow


What Did Not Work So WellWhat Did Not Work So Well


Lessons Learned

• User Uptake of Oracle– First Time Users

– Understanding Oracle terminology

• User Acceptance Testing– User testing should have incorporated additional time for training and

testing

• Super User Staffing– Small company, big Oracle footprint

– User churn

• Sequence of implementation– Should not have deferred tax to late in the project


Limited to Zero Sev 1 issues in Production

• As expected, we experienced issues“It felt like we were the 1st company to go live on R12!”

• Strong support from Oracle & Navisite

• Issues in post production were resolved quickly

0

5

10

15

20

25

30

Reported Open

Sev1

Sev2

Sev3


Upgrade Considerations


R12 Upgrade Paths

Refer: Oracle Applications Upgrade Guide: Release 11i to Release 12, Part No. B31566-01


Upgrade Considerations

• Are you at version 11.5.7 or higher?– If yes, you may upgrade directly to R12 based on your business situation– If no, since you have to first upgrade to 11.5.10.2 before upgrading to R12, you may

want to consider re-implementation as well, particularly if you have lots of extensions / customizations

• Consider implementing significant technical advances available in R12 for business benefits you may need

– 100% Active-active High-Availability and Scalability using Oracle Database Cluster (10gRAC) and Oracle Applications Cluster with Load-balancing

– Complete Business Continuity and Disaster Recovery using Oracle Database Physical DataGuard across remote data-centers

– Support for Oracle Automated Storage Management (ASM) for a variety of storage solutions

– Support for Advanced Security for External Users (e.g. for iSupport Portal)

• At least 2 complete cycles of successful test upgrades suggested before production cutover for upgrade

• If you need to change Operating System (e.g. Unix to Linux, or Windows to Unix/Linux), add another successful test cycle


SummarySummary


In Summary…

TCA Is Here To Stay

Tax Engine is Much Different

XML is Great

Technical Installation Is Much Quicker

Richer functionality in Financials and Procurement

R12 is the right direction….


Contact Information

Pete WolffeSenior [email protected]

Navisite, Inc2720 Zanker Rd.San Jose, Ca. 95134 650.823.0929 (Cell)

www.navisite.com

r12 --- a big step forward prepared for norcaloaug january 17, 2008 partnership for success october...

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