R12 --- A Big Step Forward
Prepared for NorCalOAUG
January 17, 2008
October 12, 2007
Partnership for Success
 About Xsigo
About NaviSite
Xsigo Project Objectives & Decision Process
Scope of the Project
Implementation Approach
R12 Features
What Worked Well
What Did Not Work So Well
Upgrade Considerations
Summary
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About Xsigo
• Founded 2004
• Location:
– Sunnyvale, CA
• Funding
– Kleiner Perkins,
– Greylock Partners,
“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
– 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
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VP780 I/O Director
Hardware-based architecture
• Fully non-blocking fabric
• 780 Gb/s aggregate bandwidth
24 Server ports
• Expansion switch available for
connection to hundreds of servers
4U height
Custom silicon
• Line rate throughput
Redundant hot swappable fans
and power supplies.
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15 I/O module slots
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4 X 1Gb Ethernet
1 x 10Gb Ethernet
2 x 4Gb Fibre Channel
SSL offload module
How Xsigo Helps
Without Xsigo
With Xsigo
70% fewer cables, cards.
No edge switches.
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About NaviSite
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NaviSite – Fast Facts
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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/
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Services Overview
• Hosting Services
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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
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Hosting Services at a Glance
Hosting & Application Management Delivery Team
Managed Applications
Demantra/
Agile/
Hyperion
Oracle
Siebel
PeopleSoft
JDE
Capabilities
Client/Account
Management
Support
(Level I – III)
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Application
Management
Upgrades
Patching
System
Enhancements/
Customizations
Professional Services Offerings at a Glance
Program & Project Management
PROCESS
• Use Oracle’s AIM Methodology
• Establish a Global Business Model
• Facilitated Workshops Approach
ERP and CRM System Implementation and Transformation
Applied Technology Services (Custom Development, Conversions, Interfaces)
Core Technology Services
(Database, Middleware, Messaging, Security, Enterprise Management)
Enterprise Business Process Execution
Data Hubs / Data Consolidations
Business Continuity
High Availability / Disaster Recovery
Adoption & Learning
Optimization
Services
Enterprise
Business
Intelligence
TOOLS
Health check &
Assessment
Upgrade
SOX - Compliance &
Governance
• Utilize Process Flows Approach
• Use tools and templates for rapid
deployment
Change Management
Global Delivery
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Enterprise
Technical Architecture
Business Consulting
System Selection Process
Global Roll Out
Consolidation
M&A
Spin- Off
Managed Services
• Right blend of product knowledge,
business / Industry experience and
consulting skills
• Global Presence
Industry Based Solutions
PEOPLE
Xsigo Project Objectives &
Decision Process
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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
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ERP Decision Drivers
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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
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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
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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.
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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
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Scope of the Project
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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
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Scope Summary
• 36 Oracle Business Flows:
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Manufacturing: 13
Sales and Service: 12
Accounting: 9
HR: 1
Business Area
Accounting
Oracle Business Flow
Accounting to Financial
Reports
Procure to Pay
Oracle Applications
GL, AP, FA, AR, CM
Manufacturing
Design to Release
Forecast to Plan
PO, AP, iExpense, iProcurement,
iSupplier
ENG, INV
MRP, OM
Sales
Click to Order
Order to Cash
Opportunity to Forecast
Service Contract to Renewal
Click to Resolution
iStore, OM, INV
OM, BOM, INV, AR, PO
Sales, Quoting
Service Contracts, OM
iSupport, Service Contracts, Teleservice
Hire to Retire
Core HR
Service
Human
Resources
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Business Transactions
The key Oracle data objects & transactions:
Design
Item
BOM
ECO
Design
Graphics
Plan
Buy
Mfg
Forecast
MDS
MPS
Planned
Order
Req
PO
Receipt
Asset
Payment
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Sell
Lead
Oppty
Sales
Forecast
Quote
Contract
Order
Ship
Service
Returns
Pick
Pack
Ship
Invoice
Service
Request
Contract
Renewal
RMA
AE
Oracle Solution Footprint
Oracle Applications
Distributors/
Customers
Vendors
Sales
Leads, Oppty,
Quotes, Service
Contracts, Order,
Marketing,
Proposals
Distributor
SalesRep
Orders,
iStore,
Partner
Mgmt,
iSupport,
Returns
ship
Pick/Ship,
Returns
Manufacturing
Design, Plan, Manage &
Value Inventory,
Procurement
A/R
Purchasing, A/P, FA
Order
Management
Service
Service Requests,
Returns
End
Customer
General Ledger
Human Resources
Resellers
Reseller
April 1: for all Oracle products but iStore, Marketing, Proposals, Partner Mtgmt, Ebusiness for Financials
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Future
Supply
Chain
Make to
Specificati
on
Architecture: Hardware
Database Tier
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Single Node
HP Linux server
12 GB RAM
4 CPUs @ 2.2Ghz
Storage Tier
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EMC Clarion CX300
500GB Storage
Raid 1+0 for production
1 Hot spare
N+1 Power Supply
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Middle Tier
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3 SUN V240 Servers
2 x 3 CPUs @ 1.2 GHz
8GB RAM
N + 1 Load Balance
Architecture
i-application Tier
• iSupport, iExpenses
• iStore, IProcurement
Architecture: Technology Stack
Tech 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
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Implementation Approach
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We employed a proven implementation approach to
accelerate implementation and mitigate project risk
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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 Achieving a balance
business model and process flows
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Leveraged Business Flows to:
between time, quality,
and cost
 Stimulate discussion of business requirements
Time
 Review leading practices and best use of Oracle
applications
 Establish an initial Conference Room Pilot
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Use of Accelerators with AIM for Business Flows
tools, templates
Quality
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Cost
Utilize Standard Templates
Definition
Elaboration
Build
Determine Exception
Dispositions
Determine Exception
Dispositions
Update Flows
Update Flows
Update Procedures
Update Procedures
Update Setups
Update Setups
Conduct
CRP 1.2
(Mapping)
Update Test Script
Prepare CRP 2.0
Environment
Conduct CRP 2.0
Update Test Script
Prepare CRP 3.0
Environment
Conduct CRP 3.0
Identify Exceptions
Identify Exceptions
Identify
Exceptions
Design
Extensions
Perform Systems
Integration
Test
Conduct
Business
Architecture
Workshops
Prepare
Custom
Test Scripts
Create and test
Custom
Extensions
Project
Planning
Conduct
CRP 1.1
(Familiarization)
Transition
Production
Prepare
Production
Environment
Convert and
Verify Data
Perform
Acceptance
Test
Begin
Production
Maintain
System
Propose
Future
Direction
Using standard templates as baseline and minimizing
exceptions allowed for a 3 ½ month implementation
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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
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Total – 18 people
R12 Features
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R12 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.
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R12 Features used at Xsigo
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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
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Payables
– XML for AP checks
– Payment workbench – easy to see status of job, next step and payment
statistics
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iSupplier Portal
– New supplier onboarding process as well as supplier managed user
maintenance
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Teleservice
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New HTML Customer Support Dashboard with work list
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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
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R12 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
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R12 Features used at Xsigo
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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
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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
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What Worked Well
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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
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What Worked Well – cont’d
Benefits from Oracle ERP
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Integration across the enterprise
Sales force and support automation
Highly functional customer portal
Global capabilities
Common skillset
Consistent, accurate and timely reporting
Automated Workflow
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What Did Not Work So Well
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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
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Limited to Zero Sev 1 issues in Production
30
25
20
Sev1
Sev2
15
Sev3
10
5
0
Reported
Open
• 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
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Upgrade Considerations
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R12 Upgrade Paths
Refer: Oracle Applications Upgrade Guide: Release 11i to Release 12, Part No. B31566-01
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Upgrade Considerations
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Are you at version 11.5.7 or higher?
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Consider implementing significant technical advances available in R12 for
business benefits you may need
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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
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
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Summary
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In Summary…
R12 is the right direction….
Richer functionality in Financials and Procurement
Technical Installation Is Much Quicker
XML is Great
Tax Engine is Much Different
TCA Is Here To Stay
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Contact Information
Pete Wolffe
Senior Director
pwolffe@navisite.com
Navisite, Inc
2720 Zanker Rd.
San Jose, Ca. 95134
650.823.0929 (Cell)
www.navisite.com
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