Top 10 Considerations for Upgrading
CA User Group Meeting
Romeo Sequeira
Why Upgrade?
QAD Proprietary
2
Proactive Application Management
Regular Applications Value Reviews
Competitive
Opportunity
Competitiveness
Practical Competitive
Optimum
Go Live
Status Quo
Periodic
Application
Refresh
Competitive
Erosion
Time
By harnessing the power of new technology,
you can achieve competitive advantage
QAD Proprietary
3
Upgrade Cost Drivers
Can customizations
be reduced ?
Can upgrade provide
new business value?
Productivity
Cost
Business justification examines the overall impact to
your organization’s performance
QAD Proprietary
4
Benefits of Upgrading
 Take advantage of new functionality
 Reduce customizations
 Reduce operational costs
 Respond to globalization and
consolidation needs
 Increase user productivity
 Ensure compliance
 Optimize application and system
performance
 Drive lean principles throughout the
organization
QAD Proprietary
5
Value of Upgrading
According to Aberdeen Group, Best-in-Class manufacturing
companies are 35% more likely than Laggard companies to
operate on a current version of ERP.
QAD Proprietary
6
QAD Enterprise
Applications 2009
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7
global
platform
Munich
domains
Shared Services
Sarbanes-Oxley Compliance
Enterprise Integration
Flexible global Deployment
Common Data
Global Governance
Interoperability & Integration
Washington
Tokyo
Rio de Janeiro
Sydney
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8
total enterprise
capability
Enterprise Resource Planning
Enterprise Asset Management
Product Lifecycle Management
Demand Management
Customer Relationship Management
Service and Support Management
Transportation Management
Product Information Management
QAD Proprietary
9
human
engineering
.NET User Interface
Data Access
Integration
Consistency
Roles
Process
QAD Proprietary
10
Recent Enhancements, New Modules
2007
MANUFACTURING
EXECUTION
WORKBENCH
QAD Proprietary
JUST-IN-TIME
SEQUENCING
TRANSPORTATION
MANAGEMENT
DESKTOP
SHIPPING
SALES FORCE
AUTOMATION
.NET UI
2007
MARKETING
AUTOMATION
QAD ENTERPRISE
APPLICATIONS 2007
11
Recent Enhancements, New Modules
2008
GLOBAL
ENTERPRISE
EDITION
QAD Proprietary
JUST-IN-TIME
SEQUENCING
ENHANCED
CONTROLS
MOBILE
FIELD
SERVICE
PRODUCTION
SCHEDULER
WORKBENCH
CONFIGURATOR
.NET UI
2007
DEMAND
MANAGEMENT
DISTRIBUTED
ORDER
MANAGEMENT
12
QAD Enterprise Applications
Development
2002
MFG/PRO
eB2
2005
MFG/PRO
eB2.1
March
2007
QAD
2007
September
2007
QAD
2007.1
March
2008
September
2008
April
2009
QAD
2008 EE
QAD
2008.1 EE
QAD
2009 EE
QAD
2008 SE
QAD
2008.1 SE
QAD
2009 SE
QAD Standard Financials
Shared Services Domains
QAD Enterprise Financials (EF)
QAD Internationalizations
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13
Two versions of QAD 2009
 QAD 2009 Enterprise Edition (EE)
– Includes Enterprise Financials
– Also includes enhancements in other areas of Enterprise
Applications, including Manufacturing & Distribution
– New UI Shell version
 QAD 2009 Standard Edition (SE)
– Includes Standard Financials (as in eB2.1)
– Equals QAD 2007.1 plus Service Packs
– New UI Shell version
 Differences in add-on availability and versions of addons
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14
Upgrade
Considerations
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15
Top 10 Considerations for an Upgrade
1. Technical Considerations
2. Business Considerations
3. Security Considerations
4. Implementation Considerations
5. Customization Considerations
QAD Proprietary
Top 10 Considerations for an Upgrade
(contd.)
6. Financial / Regulatory Considerations
7. Standardization Considerations
8. Reporting Considerations
9. Training Considerations
10.Tool Considerations
QAD Proprietary
1. Technical
Considerations
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18
Technical Considerations
Architectural
– Number of databases
– Number of domains
– Options
• Single database with multiple domains
• Multiple databases with multiple domains
• Single database with single domain
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Technical Considerations
Database and domains considerations
– Strategy for points of failure (single or multiple)
– Database maintenance or shutdowns strategy
– Language considerations in the same database
– How many sites are you willing to upgrade at once
– Time zone considerations
– What level of separation or granularity do you require
QAD Proprietary
Technical Considerations
Hardware considerations
– Centralized, decentralized or hosted
– Number of servers
– Location of servers
– Server size and capacity
– Will existing infrastructure support the envisioned
environments
QAD Proprietary
Technical Considerations
Data communication considerations
– Network bandwidth
– Network latency
– Bridges between ISP providers
– What UI’s will be running
– What other applications will be running over the lines
(telecom, radio frequency, email systems, and voice)
QAD Proprietary
Technical Considerations
Business Continuity strategy
– Up time requirements and support strategy
– Backup strategy
– Fail over strategy
– Disaster Recovery strategy
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Technical Considerations
Presentation
Exposed
Services
QXtend
EDI
Business Services
Data Access
Platforms
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2. Business
Considerations
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25
Business Considerations
 Is there a clear understanding of business drivers / objectives and
reporting requirements (KPIs / Metrics) at all levels?
 Measure baseline metrics before upgrade
 What is the level of local autonomy versus central control?
 Is there an understanding of internal supply chain requirements and
flow?
 Degree of change management or managing change that will be
required
 Is there a clear definition and understanding regarding shared services
requirements ?
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26
Business Considerations
The amount of business process reengineering
that is envisioned to support initiatives such as
Lean, Shared services, etc.
–
–
–
–
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Customer Service Applications
Support Operations
Accounts Receivable
Accounts Payable
Business Considerations
– Is there an understanding of what new functionality is
available or net change from legacy version
– Will there be new features and functionality the
business will be taking advantage
•
•
•
•
•
•
•
•
•
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Enhanced security
CRM
Lean manufacturing
PIM
Production schedulers
EAM
DOM or CSS
Configurator
Warehousing
3. Security
Considerations
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29
Segregation of Duties (SOD)
 Objective
– Limit the duties of individuals to certain areas of responsibility
– Minimize the ability of any individual to misappropriate company property –
without collusion between individuals
 Specify roles that are conflicting from a segregation of duties perspective
 Identify users that have any access rights that are part of conflicting roles
User
Role A
Access right
Access right
….
QAD Proprietary
Conflicts
Role B
Access right
Access right
….
Segregation of Duties (SOD)
Partition all activities (menu options) to only
one category
Define sets of categories that are mutually
exclusive
– No individual can have access privileges to functions
that are defined as being mutually exclusive
Establish rules and verify no violations
– Rule 1: Activities granted to a role must belong to compatible SOD
categories
– Rule 2: User roles must have compatible SOD categories
QAD Proprietary
Role Based Security
All application security in QAD 2009 EE is role
based
Roles are defined for each discrete area of the
business using Segregation of Duties concepts
Roles are linked to menu functions using Role
Permissions
Users are assigned access to Domains and
Entities
Users are assigned to roles for Entities and
Domains
QAD Proprietary
Business Considerations
 Define Roles and Permissions
 Segregation of Duties:
– Define conflicting roles
 User Interface depending on Role
QAD Proprietary
Role Membership
 Users will typically be assigned more than one role
 Users may have different roles in different
Domains/Entities
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Default Roles and Permissions
Default set of pre-defined roles and permissions
supplied with QAD 2009 EE
– Around 80 roles are already defined
Roles are defined using Segregation of Duties
Principles
– Separate role for PO creation and PO receipt
– Separate roles for supplier creation, supplier invoice
recording and supplier payments
– Separate roles for inquiry access by functional area
Tools provided for the automatic loading and
editing of default roles and permissions
– XML integration already available
QAD Proprietary
4. Implementation
Considerations
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36
Implementation Considerations
Is this project considered a new implementation,
technical upgrade or is it a reimplementation
– Will a business process assessment (BPA) be
required
– Will business process reengineering (BPR) be
required
Is this project a “Lilly pad” for another upgrade –
If so how can it be positioned for the next
upgrade
QAD Proprietary
Upgrade Scenarios
Technical Migration with data conversion
Customization
Data
Conversion
Small
Process
Changes
Optimization
Technical Migration without data conversion
Conversion
Data
Load
Small
Process
Changes
Optimization
Re-Implementation
Re-define Business Processes
QAD Proprietary
Non-Intrusive
Customizations
Data
Load
38
Centralize/Standardize First
QAD MFG/PRO
8.6, 9.0, eB, eB2
QAD 2007
QAD 2008 Standard Edition
ERP
Database
Plant 1
ERP
Database
Plant 1
ERP
Database
Plant 2
ERP
Database
Plant 2
ERP
Database
Plant 3
ERP
Database
Plant 3
QAD Proprietary
ERP
Database
Plant 1, 2 and 3
QAD 2009
Enterprise Edition
ERP
Database
Plant 1, 2 and 3
39
Migrate first to QAD 2009 Enterprise
Edition, than Centralize and Standardize
QAD MFG/PRO
8.6, 9.0, eB, eB2
QAD Proprietary
QAD 2009 Enterprise Edition
ERP
Database
Plant 1
ERP
Database
Plant 1
ERP
Database
Plant 2
ERP
Database
Plant 2
ERP
Database
Plant 3
ERP
Database
Plant 3
ERP
Database
Plant 1, 2 and 3
40
Q-Advantage Implementation Methodology
Plan
Design &
Configure
Test &
Implement
Accept
Deploy &
Manage
Evolve
Kick-off Project
Complete Process
& Technical
Design
Train
End Users
Complete Final
Data Load
Agree on
Business Process
Solution Design
Train Core Team
Complete Data
Validation &
Functional Testing
Execute Cut-Over
Plan
Agree on Project
Controls
Build System, Scripts &
User Procedures &
Convert Data
Complete System
& Performance
Testing
Post-Launch
Evaluation
Agree on Project
Plan & Resources
Develop, Deliver
& Test
Custom Solution
Conduct
Stakeholder
Validation Session
Manage
Applications &
Support
Determine Core
Model / Rollout
Requirements
Validate / Refine
Solution
via CRP Cycles
Develop Cut-Over
& Deployment
Strategy
Adjust Core Model
& Rollout Plan
Communication & Change Management
Program & Project Management
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41
5. Customization
Considerations
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42
Customization Considerations
The number and types of customizations to the
legacy system
– Is there a definitive list of customizations
– Is there an understanding of who owns each customization
– Is there an understanding of what each customization does.
– A go forward review and migration strategy for all
customization will be required
– Remember - every customization in a multi domained
database will have to be domainized
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Customization Considerations
 API’s and interfaces to 3rd party software
– Needs to be fully identified and go forward strategy
developed.
 Is it within scope to update 3rd party software solutions
QAD Proprietary
Customization Considerations
CUSTOMIZATIONS
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45
Customization Considerations
Maintenance
Reports
CUSTOMIZATIONS
QAD Proprietary
46
Customization Considerations
Customizations Not Used
Maintenance
Reports
CUSTOMIZATIONS
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47
Customization Considerations
Customizations Not Used
QAD Enterprise
Applications
2009 EE or SE
Maintenance
Reports
CUSTOMIZATIONS
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Customization Considerations
Customizations Not Used
QAD Enterprise
Applications
2009 EE or SE
Maintenance
Reports
QAD.NET
User
Interface
CUSTOMIZATIONS
QAD Proprietary
49
Customization Considerations
QAD Enterprise
Applications
2009 EE or SE
Reports
ICT
QAD.NET
User
Interface
CUSTOMIZATIONS
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50
Customization Considerations
Always make sure that the domainization has
been done on the customization to be migrated
before starting the Realization
Do not just compile your old programs against
the new database
– Not even reporting!
Make sure you are trained in the Data Model of
the new release (be aware of the changes
related to add-on modules)
Always consider ICT as alternative
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6. Financial /
Regulatory
Considerations
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Financial / Regulatory Considerations
Do current polices, practices and system utilization
optimally meet requirements
– SOX requirements
– IFRS requirements
– US GAAP reporting requirement
– Local regulatory reporting requirements
– Tax reporting requirements
– FDA validation requirements
– ISO compliance
QAD Proprietary
Financial Considerations
 Do current policies, practices and system utilization
optimally meet requirements and what is the impact of
an upgrade?
 Will documentation have to be updated?
 Financial reporting and consolidation
– Is current entity configuration and reporting satisfactory
– Are the financial consolidation toolsets adequate or will it be
replaced or upgraded
– Is QAD’s enterprise application 2009 in your upgrade plans
QAD Proprietary
QAD Internationalization
Compliance with laws and business practices
across the globe
Example audit files:
–
–
–
–
–
–
–
–
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Argentina
Brazil
Columbia
Venezuela
Spain
Portugal (SAF-T)
Germany (GDPdU)
China
File Description
Customer Invoices
Purchase Invoices
Tax – Other perceptions
VAT Retentions
(Customer/Supplier)
VAT- Sales
VAT- Purchases
Gross Income Retentions
Gross Income Perceptions
SUS (Social Security System)
retentions – Supplier Invoices
Customer Master data
Supplier Master data
Items Master data
Chart of Accounts
Cost Center Master data
Tax Usage master data
Accounting Balance
Accounting Movement
Bill of Material (BOM) master data
Inventory Transactions
Inventory Balance
Importation Invoices
Exportation Invoices
Legal Documents – Inbound
Legal Document - Outbound
Balance Sheet
Income Statement
Format File
Company Information
QAD Proprietary
Argentina Brazil
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
Colombia Venezuela China Spain SAF-T
ASCII
XML
ASCII
XML
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
ASCII
XML
XML
ASCII
ASCII
XML
XML
XML
XML
ASCII
ASCII
XML
XML
ASCII
ASCII
ASCII
ASCII
XML
XML
7. Standardization
Considerations
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57
Standardization Considerations
 Core models (for multi-site implementations)
– Do core models exist today and if not should they?
– Are the core models that exist today for both organic and acquisition
growth being followed?
 Is there a data standardization/normalization strategy
and is data replication required?
 What is the condition or state of your current data?
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Standardization Considerations
Non-domained tables standardization
– Users
– Currency code
– Country codes
– Site codes
– Entity codes
QAD Proprietary
Standardization Considerations
Is there data standardization / normalization
strategy and is data replication required
–
–
–
–
–
–
QAD Proprietary
Chart of Accounts
Customers
Suppliers
Item masters
Bill of Material
Other master data
Standardization Considerations
QAD Proprietary
QAD QXtend
Inbound
(QXI)
Domain 5
Domain 4
QAD QXtend
Outbound
(QXO)
Domain 3
Domain 2
Master Domain
Domain 1
Data Replication Solution
8. Reporting
Considerations
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62
Reporting Considerations
Requirement
 Ad hoc reporting
– Inquiries
– Typically a one-time request for data
Solution
.NET Browses
 Standard reporting
– Typically run weekly, monthly, etc.
– Fairly static in layout, query parameters, etc.
– Can be run in batches and on a schedule
 Forms and labels
– Invoices, orders, etc.
– Package labels, barcodes
 BI reporting
– Data Warehousing
– Metrics/models
– OLAP reporting
QAD Proprietary
.NET
Reporting
QAD BI
63
9. Training
Considerations
QAD Proprietary
64
Training Considerations
 For the average user, QAD.NET UI training only is
necessary for the new user interface.
 For an organization with heavy use of Excel,
advanced QAD.NET UI Browse training is advisable.
 Consider Enterprise Financials as an implementation
of a new module, so extensive training is necessary.
 The ‘traditional operational’ module area needs
minimal training effort during upgrade
 IT training, especially for the new infrastructure, due
to the QAD.NET solution requiring web technology.
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65
Training Considerations
QAD Proprietary
66
Training Considerations
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67
10. Tools
Considerations
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68
Tools
 Domain Conversion Tool
 Domain Merge Tool
 Program Tracer Tool
 Integrated Customization Toolkit (ICT)
 QScan
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69
Domain Conversion Tool
 Purpose
– Modifies a schema definition file to add domain to selected
tables and indexes, and modifies simple schema validation
statements
– Goes through the Progress source code and modifies all search
and create statements with the domain statement
 Benefits
– Reduces costs of manual update of the source set with the
domain statement
– Reduces the risks to get errors out of this manual process
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70
Source Code Transformation
How it Works
Read
Plug-ins
Create
Transform
Transform Code Lines
Find
fields
etc.
Write
QAD Proprietary
71
Domain Merge Tool
ERP
Database
ERP
Database
ERP
Database
AR
CO
PE
ERP
Database
BR
ERP
Database
MI
ERP
Database
CL
AR
Domain
ERP
Database
PR
ERP
Database
MX
CO
Domain
BR
Domain
ERP
Database
VE
PE
Domain
MI
Domain
CL
Domain
PR
Domain
MX
Domain
Single QAD QAD SE 2008 Database
QAD Proprietary
VE
Domain
Program Tracer Tool
 Purpose
– To identify what customized functions are actively used in your
application
– To identify how users are using your QAD applications
– The results of the Program Tracer helps you to eliminate
customizations and/or provide feedback on customization areas
that needs review
 Benefits
– Eliminate unused functions from those to be migrated
– Analyze how users use specific functions in order to improve the
overall process
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73
Program Tracer Tool
MFG/PRO Menu
36.14.13
29.11.4
29.11.13
5.5.3.3
5.13.1
7.9.2
13.6
……..
60.1.1
60.1.3.1
60.1.3.10
60.1.3.12
60.1.3.13
60.1.3.14
60.1.3.15
60.1.3.16
QAD Proprietary
Program
mgbatch.p
icloiq01.p
zzpttrrp.p
rssmt.p
poporc.p
rcshwb.p
bmpsiq.p
Menu Description
Batch Request Processor
Inventory Inquiry
Detailed Transaction History Inq
Schedule Maintenance
Purchase Order Receipts
Pre-Shipper/Shipper Workbench
Product Structure Inquiry
xsstana.p
xxpcorq.p
xxpcolsi.p
xxpcoriq.p
xxsixref.p
xxpcoprd.p
xxpcorp.p
xxpcolfd.p
Items by Group / PL /Desc Rep
Send Request to Windchill
Load Status Inquiry
PCO Request Inquiry
Site Cross-Reference
Delete UnReceived PCO Requests
PCO Report
Delete Import Log Files
Executed
4002
493
245
160
123
119
103
0
0
0
0
0
0
0
0
74
Integrated Customization Toolkit (ICT)
 Purpose
– The ICT Services Product enables you to develop customizations
in a non-intrusive way
– Eliminates or significantly reduces the need to change the
standard source code set
 Benefits
– Decrease of development costs for initial developments and
following upgrades of the customization
– Enables customization without having the source code rights
– Decrease implementation effort related to patches and services
packs with impact on the customization
– Easy to track changes and debug in case of issues
QAD Proprietary
75
QAD ICT Components
QAD Integrated Customization Toolkit
User Interface
Security / Role Model
QAD Standards
Business Logic
Database
QAD Proprietary
Tracking & Tracing
Control & Debugging
76
QScan Process
Identify Pain Points
Develop Recommendations
Establish Metrics
Quantify Benefits
QAD Proprietary
Inventory Control –
Pain Points, Issues
 High Inventory Levels for New Parts
 No visibility of WIP Stock
 Difficult to explain floor stock expenses on P&L
 Machined parts in the warehouse not being used
 Inventory counts not always accurate line shut down
 Receipts take too long due to PO record locking
 Warehouses – parts not identified properly
QAD Proprietary
Inventory Control –
Recommendations
 Implement
– Develop Inventory Analysis Reports
• Inventory Turns
• Excess and Obsolete
• Transaction Report
– Implement Cycle Count/Inventory Control module:
• ABC Classification designation
– Extend the use of RF for all inventory movement transactions
– Introduce Lean Concepts / Investigate MFG/PRO Lean module
– Change the way Material Flow is organized in QAD
QAD Proprietary
Inventory Control –
Benefits
 Better Control over New Parts Inventory  potential
cost savings (actual inventory = $30 million)
– Reduce Line stoppages
– Reduce expediting costs (freight)
 Storing Parts:
– Lower cost for warehousing space
– Lower cost for handling stock (transport, labeling, pickup and
putaway)
 More efficient stock handling in the warehouse (bar
coding)
QAD Proprietary
QAD Proprietary
Thank You
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82
Questions
QAD Proprietary