fusion

Do I upgrade to Oracle R12.2 or Fusion Application release 7? Summarized Pros and Cons with key points to guide your decision making

on Tuesday, 01 October 2013. Posted in Enterprise Software , fusion, Blog

Do I upgrade to Oracle R12.2 or Fusion Application release 7? Summarized Pros and Cons with key points to guide your decision making

EBS customers often ask this question but do not get answers to their satisfaction, the answer seems to be consistently ‘it depends’ and most companies begin an assessment effort to understand the business and technological needs of the organization and analyze how those needs can be met by each solution.

 

Let’s begin and get to the points,

Business/Functional Processes and functionality – Oracle Fusion applications is ready for prime time, when it comes to functionality no major difference exists between Fusion Applications and EBS 12.2. A plus on Fusion you get embedded analytics and analytical power that EBS does not have - The GL is underpinned by Essbase and for accountants you can replace the screens with excels spreadsheets .The one delta - downside for government customers within the financial suite of Fusion, encumbrance accounting not available in release 7. What is encumbrance accounting? Encumbrance accounting is mostly used in public sector municipal, government, and schools. It is a reservation of the fund prior to accrual of the expenses. An encumbrance is a transaction that occurs when someone needs to put money away (to hold it) for a specific purpose. In government accounting, an encumbrance is created when a Purchase Order is issued to buy goods or services. The money has not yet been spent, but is selected for that purchase and no one else can use it.

In our everyday life, it`s like you put money into an envelope to hold it to pay a bill, you have encumbered that money. Similar in putting an envelope in your office drawer marked “Phone bill”, the money you put in the envelope for the next bill is your encumbrance. How much should be encumbered? How much do you think your bill is going to be? That’s encumbrance.


User Experience:
Fusion applications makes R12 look bad when you compare the user experience; I have seen customers express a WOW effect when demoing Fusion. Oracle has really taken their time to get Fusion applications right, they have concentrated heavily on the user interface and user experience and they got it right. In my opinion, this is the biggest advantage of Fusion, end users love the look and feel and the functionality empowerment towards the end user in my opinion is a notch above release 12.

 oraclefusion201310

Development: If you are looking at Fusion Applications you need to have a hard look at your existing EBS RICE(Reports-Interface-Conversions-Extension) and determine if they are really needed and whether there is a strong enough business case to carry them forward. Do not ask yourself should I replicate my 50 extensions in Fusion apps; use it as an opportunity to make processes fit as per application. The customizations towards external 3rd party systems using Oracle Fusion Middleware works well in release 7.

Cost/Internal Staff/Long term support - Fusion Applications is built on cutting edge technology and consequently, the hardware required to support it needs to be that much bigger. Internal staff will require re-training and if you look at some facts on the Oracle Fusion customers already in production, they opted for a cloud deployment –current stats 8/10 deployments in production with Fusion apps have been deployed in the cloud. I think clients are taking this approach mostly because expertise does not exist internally and to build the support knowledge this will create challenges to your business case and your project timeline.

Applications Unlimited Program - Customers that have significant investments in EBS, have no other choice than to utilize the co-existence deployment model. Oracle made long-term commitments to older products like EBS or PeopleSoft through its Applications Unlimited Program; I think this has caused a less attractive proposition to go with Fusion applications, I suspect Oracle will begin in 2014 some client incentives to get their clients onto Fusion apps. Customers should not feel it's a one-size-fits-all scenario, from my independent Oracle client discussions some clients have begun their co-existence strategy in implementing HCM, others CRM, others small steps with Fusion Accounting Hub linking to their current ERP financial transactions, others with Fusion GL,AP,etc.

Stability - One of the most common comments I receive, Fusion is not mature, in my opinion that is an incorrect statement, Fusion is a lot more mature than people are realizing out there, especially around HCM and Financials including Fusion accounting Hub, with Fusion you can envision a global instance for your global organization, harder to do than with R12 .

Licensing – As per my knowledge the cost of licensing between Fusion and R12 are similar, but the internal infrastructure cost grows more for Fusion. I think this is the main reason clients are selecting a SaaS deployment approach. The cost savings will come from customers moving to SaaS with Fusion.

Upgrading Starting point – If you plan to upgrade to EBS 12.2, a direct path is included with the releases 11.5.10.2, 12.0 and 12.1

Link to the complete documentation EBS 12.2 Product Information Center (Note 1581299.1)

If you plan to move to Fusion Applications, begin by reading (DOC.id 250.2) here is the link Life Cycle Manager 

Then reference back to Fusion applications- Product Information Center (Doc ID 100.2 ) Link

My view on the current Oracle client mindset is that they are mostly following an approach that is better to continue with the older more mature products with current technologies till the organization is convinced about the benefits from the upgraded system before deciding in favor of a move to Fusion apps, the time will come soon I think, were Oracle will start pushing incentives towards Fusion!

Feel free to share your thoughts on the topic!

 

Oracle Fusion Applications Workflow for Project Implementation & answers to questions received by e-mail on Fusion

on Wednesday, 27 February 2013. Posted in Enterprise Software , Featured, fusion

Oracle Fusion Applications Workflow for Project Implementation & answers to questions received by e-mail on Fusion

 

 

We are now at release 6 of Oracle fusion applications (11.1.6), many questions have been raised on the implementation approach. Fusion don't forget is a combination of multiple Enterprise systems that Oracle acquired and yes Oracle took some of each to create Fusion.

Below is a visual diagram I created on the steps required to implement an instance of fusion applications:

 Oracle fusion apps implementaiton workflow

 

In general , it took me about 3 days to configure HCM and Financials, the functional configuration enables your Offerings and Functional Areas for implementation, and you select the Feature Choices, which typically enable you to integrate Offerings. Below is a screenshot

 

fusion apps setup

Question – What are some of the differences between EBS and Fusion Applications?

This questions comes often and people still believe no major changes exist,    below are 4 of them in the areas of Authentication, Authorization, Security and Segregation of duties.

 

E-Business

Fusion Application

Authentication

FND_USER

FMW(Fusion MiddleWare) OAM/LDAP

Authorization

AOL security model

FMW OPSS Oracle Platform Security Services

Security platform

Proprietary

FMW OPSS

Segregation Of Duties (SOD)

No functionality

Predefined SOD policies
Application Access Controls
Governor (AACG)

Question – In Fusion Applications Vision data does not exist anymore?

This is a common myth; here is a screenshot with some vision data

 fusion vision

Question 3 – Oracle Fusion Applications Documentation not available online?

Below is the link to Oracle Fusion Applications release 11.1.6

 fusion apps doc 11.1.6

http://docs.oracle.com/cd/E37583_01/index.htm

Oracle Fusion documentation is improving rapidly, it know include lots of detail with examples to help us take the right decisions.

 

 

Test drove for the last 6 months Oracle Fusion Applications, they have achieved Incredible Things, 7 Pros and 2 Challenges of Fusion Applications.

on Wednesday, 13 February 2013. Posted in fusion, Blog, Enterprise Architecture

Test drove for the last 6 months Oracle Fusion Applications, they have achieved Incredible Things, 7 Pros and 2 Challenges of Fusion Applications.

 

As most of you know for the past 6 months with some individuals in Palo Alto,CA. I have been testing, educating myself on the next generation of Oracle applications called Oracle Fusions Applications. What is Oracle Fusion Applications? It is inspired by the best of breed of Oracle’s application: Peoplesoft (HRMS), E-Business Suite (Financials), Primavera (Projects), JD Edwards (Manufacturing/Financials) and Siebel (Embedded analytics)

The question that everyone is asking should i stay on my current ERP or replace my systems with Fusion applications: (I must get an email every two weeks on this topic). Before i share my thoughts on this topic, let me share my experience for the last 6 months on the current version of the Fusion applications:

Pros

1)The response time is solid, look and feel is great.

 fusionalextest2147

2) They have incorporated a configuration setup workflow that makes it much easier to configure your module. Above screenshot I logged in with Fusion Functional Setup Manager (FSM) this is a one- stop shop for all implementation activities from planning to deployment. FSM is a separate module product, who manages all setups and all the various branches of products groups. Fusion includes FSM to allow implementation by others than the IT department or consultants. This includes plenty of checklists and simplifies the job of the project manager to setup and monitor the setup tasks as identified by Fusion itself. (Functional setup much quicker and easier to perform!)

3) What I appreciated the most was the export setup data, this functionality also allows users to easily migrate configurations from one instance to another (Test/ Production), works great did not encounter any major issues.

fusionalexexportsetups

 

4) Oracle Fusion Architecture provides an open architecture ecosystem, which is service & event- enabled.

5) Current present day applications have been on proprietary tools like People Tools, Forms, which require niche skill sets to manage and maintain.

6) Fusion has been developed; with Open standards based technology and is built on re-known Oracle Fusion Middleware (ADF, JAVA, SOA, BPEL, WEB 2.0 etc).

7) Currently CRM and HCM families are the most popular modules of Fusion, followed by Supply chain management (SCM).  Below are all the family products:

 fusionapplications

Where does PeopleSoft, EBS, Primavera, JDE and Siebel go from there? All these ERP’s had released a major version after the announcement of Fusion GA(General Availability), and there's no end in sight for future support(I guess until 2020). In fact, I think Oracle has good reason to keep these Enterprise systems going, even with Fusion now as an option.

I don't think Oracle is in a rush to try to get people to move to Fusion. PeopleSoft, EBS etc...They are very profitable business for them.

If you just look at PeopleSoft are far more profitable than Fusion precisely because the latter is so new. The dilemma for customers is when to opt for innovation over stability.

Oracle Fusion implementation can be done in 4 ways by

  1. Upgrading—Replacing an existing Oracle Applications instance with a new release (either a currently installed Oracle Applications version or Oracle Fusion Applications)
  2. Reimplementation—Treating an existing Oracle Applications installation as a “legacy system” and implementing some components of a live Oracle Fusion Applications installation or an entirely new Oracle Fusion Applications installation
  3. Coexistence—Adding Oracle Fusion Applications solutions to a customer’s existing Oracle Applications solutions, rather than upgrading or implementing new solutions in place of existing solutions
  4. Migration of data—Converting data from one Oracle instance to another Oracle instance by using Oracle’s Open Interfaces API and other Oracle or third-party conversion tools

I am strong believer of co-existence strategy and architecture for Oracle E-Business Suite, PeopleSoft, JD Edwards and Siebel apps and Fusion, for the following 3 reasons:

1- Risk mitigation, Fusion applications is still in my view a new product

2- You require revamping your technology skills within your organization to extend, maintain and support the various components of Oracle Fusion Applications here is my short list (A coexistence strategy can help you slowly adapt with the change of technologies):

  • SQL, PL/SQL, JAVA & java script
  • XML – Extended Markup Language
  • CSS – Cascading Style Sheets
  • XSL – Extensible Style sheet Language
  • ADF – Application Development Framework
  • JSF – Java Server Faces
  • Web Services
  • BPEL – Business Process Execution Language
  • AIA – Application Integration Architecture
  • Web Center
  • BI Publisher
  • OBIEE – Oracle Business Intelligence Enterprise Edition
  • Hyperion Essbase
  • WebLogic Server Administration
  • Oracle Identity Management

3- Most corporations have invested significant money in their current technologies, and will require a strong business case with facts and numbers on the added value of going to Fusion in a big bang approach.

Interest will remain high with Fusion applications and my predictions in the next 5-8 years everyone will be on Fusion similar model like SAP. Why 5-8 years? Most corporations require lots of inter connections to other systems (spider web architecture) and have invested in significant customizations to meet the corporations global business requirements.

My overall experience with the Fusion applications exceeded my expectations. Would appreciate to hear from clients and others that are live with Fusion.

The taxation process: Five issues to consider

on Tuesday, 01 January 2013. Posted in fusion

Businesses have an obligation with the government to collect the right amount of tax on the business or services being provided and, when making purchases, to make sure that they are self-assessing the right amount of tax that’s due on those purchases, Whether you’re a large or small business, this complexity is probably going to create the need for automation.

Whether you are using Vertex, Taxware or a home made program you must look into automating your process.

Consider the following five points:

1.       Time is money. Your salespeople should have one main focus: selling your product. If your tax computation isn’t automated, they have to take time out of their day to consult tax charts, multiply and add corresponding tax, and input that information into your financial program. While a handful of companies may not have enough volume to warrant making a change to an automated program, the majority will see a fast return-on-investment

2.       Some purchases are not taxable—and some are. Imagine if your customer purchased 100 items from you. Your invoice lists each, along with price and shipping charges. But only some of the items are taxable. How do you handle this? “By not automating, in this case someone has to spend the time looking at each of those individual line items to see if they are subject to tax, and apply the appropriate rate. “That’s a lot of work, especially if you have a heavy sales volume. You risk not only slowing down your invoice processing, but also bringing in errors, which put you at risk of an audit.”

3.       You can input once instead of twice. The majority of tax software available today can easily link up to your Oracle financial software package as well as on-demand financial suites. This means that your sales tax information can be aggregated and brought into your financial program automatically.

4.       Software has a better memory than you do. Your customer base may hail from every state in the union, and from countries all over the world. Some customers may be tax-exempt. Others may pay one sales tax when purchasing for their Austin, Texas office, and another when shipping products to New York.

 5.       You’ve got a paper trail. Unfortunately, it sometimes happens: people get audited. Businesses get audited. If your tax records are automated, you can prepare for the process more easily, and backup your computations. 

WEB 2.0 and Fusion

on Tuesday, 01 January 2013. Posted in fusion

People are increasingly entering the work force never having lived their lives without the Internet. That means they expect collaboration tools, instant messaging, search and other Net-related technologies to be an integral part of their tools in the workplace. Oracle expects Fusion applications to have a heavy presence on the desktop. In a demonstration in San Francisco  during the apps conference, the speaker showed an Oracle applet that sits on the desktop and remains present when the user clicks on a tool linked to the Oracle database or other data sources. For example, it remains present when Microsoft Outlook is called up to review sales leads, and provides context drawn from Oracle's database. People will be able to share the information with their customers, even if those clients do not own any Oracle applications. A sales representative, for example, could e-mail a quote to a customer, who would then call it up and view it through the same user interface. The customer could then click on a collaboration tab and engage in an instant-messaging conversation with the sales representative. The business software maker plans to indefinitely support and invest in applications from PeopleSoft, J.D. Edwards and Siebel Systems.

Fusion application screenshots and Exalogic announcement

on Tuesday, 01 January 2013. Posted in fusion, Blog

Sneak peek at Oracle fusion applications screenshots

http://www.flickr.com/photos/oracle_images/sets/72157624867161443/ 

Larry Ellison quote at the keynote: Fusion Applications "runs on 100% vanilla FMW. Interesting …Oracle announces Exalogic Elastic Cloud

http://www.oracle.com/us/corporate/press/173459

Last year 25000 attendees this year a whopping 41000 attendees(new record)

 

Copyright 2015 Appsconsultant.com. All rights reserved.