1 Insert Picture Here Value of Upgrading

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Value of Upgrading to Release 12. 1 for E-Business Suite Projects Dean Herback Oracle EBS Projects Strategy Adwait Marathe Oracle EBS Projects Development

Program Agenda • R 12. 1 Upgrade Overview Functional – Recent Release History – Projects Specific Changes – Upgrade Considerations and Resources • R 12. 1 Upgrade Overview Technical – Overview – Upgrade Best Practices – Lessons Learnt • 12. 1 Customer Success – PICO Holdings 3

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. 4

Functional Overview 5

EBS Product Update: Continued Releases And Innovation Planned Released EBS R 12 EBS 11 i 10 Major Release EBS R 12. 1 EBS 12. 1. 2 Minor Release 2004 Functional Innovation 2007 Financials, Technology New 2009 2010 EBS 12. 1. 3 EBS 12. x 2011+ Procurement, HCM, Service, SCM, Projects, Financials, Technology, MDM EBS R 12. 1. 3 released on Aug 20, 2010 – Functional Enhancements across suite, plus statutory/regulatory updates and error corrections 6

E-Business Suite Release 12 The Global Business Release – Oracle Projects THINK GLOBALLY WORK GLOBALLY To Make the Right To Be More Decisions Competitive Achieve global view of Work better across customer, supplier, partner applications, divisions, and & operations regions • Project Portfolio Analysis • Multi-Org Access Control • Removal of Supplier Cost Adjustment Restrictions MANAGE GLOBALLY To Lower Cost & Increase Performance Implement, manage, and scale global applications easier • Subledger Accounting • e. Tax • Simplified Maintenance Management • Enhance Expenditure Inquiry with batched adjustments 7 7

Increase Operational Control and Efficiency What’s New in Projects Procurement Results: Supply Chain Applications Technology E-Business ü Managing your full Project Lifecycle with less effort Suite Human Capital Financials & Projects ü Automating Project Operations and Finances ü Make better decisions with greater insight Customer & Master Data Management 8

E-Business Suite Release 12. 1 Oracle Projects Application Integration Superior Ownership Experience Extend enterprise boundaries Implement, manage and with enhanced business upgrade applications at processes lower cost • UPK Content for EBS • MSP 2007 Certification • Improved Services Procurement Integration • BI Publisher Reporting • Setup Automation Product Innovation Improve user satisfaction through increased productivity • Project Manager Reporting Pack • Self-Services Expenditure Inquiry • Advance Processing - • Increased Automation in Enhanced Integration between AR and Project Billing Resource Management 9 9

Oracle Projects Release 12. 1, 12. 1. 2, 12. 1. 3 Project Reporting • Project Analytics • Federal Financials Analytics Project Management § Planning Enhancements • P 6 Integration • MSP Integration Enhancements Project Portfolio Analysis Project Management Global Project Repository • Supplier Cost Dashboard § Self Services Expenditure Inquiry § Performance Reporting Setup Audit • Reporting Performance Improvements § Program APIs Project Resource Management Project Collaboration Project Costing Project Billing Project Contracts Enterprise and Project Insight Personalized Role-Based Views Project Foundation § i. Setup/R 12 Diagnostics Resource Management • Improved Searches • Date Validations & Defaults • Streamlined Project Costing Navigation • Integrated Services Procurement • Supplier Payment Controls • E&C Deduction Processing • Project Security in Project Billing Oracle Purchasing • Prepayment Receipt Application • Effective Date Funds Consumption • UI Improvements • Enhanced Change Management 10

R 12. 1 Upgrade Overview Functional • Architectural/Financial uptakes that benefit projects users • Catch up all of 11 i 10 M RUP 4 enhancements/patches • New functionality leveraging Fusion technology • Easier upgrade path if and when you decide to move to Fusion 11

Building the Business Case for Upgrading • Evaluate the new 12. 1 features in the products you are currently running – Opportunities to eliminate customizations – Greater flexibility to match the needs of your business – Opportunities for additional automation and process improvement • Look for adjacent products that might add value – Many products are much stronger at the 12. 1 level than they were in 11. 5. 10 – Adding modules is low cost since you are leveraging the implementation work you have already done – Some customers have justified the upgrade primarily by the need to get to the 12. 1 level so they could implement additional products 12

Upgrade Considerations • Secure consulting skills early – 12. 1. x implementation experience will be in short supply for the next while – The number of customers upgrading to 12. 1 will be significantly higher than to 12. 0 • Some customers might want to consider a reimplementation rather than an upgrade • Consider increasing UAT and Training timeframes – Significant number of enhancements will increase time required 13

Key Message to EBS 11 i Customers Upgrade to EBS 12. 1 and Get More Return on Your Investment • Release VALUE: 12. 1 provides business value across the suite in addition to the Financials focused Release 12 – Customers should evaluate the business value of the Release 12. 1 – Leverage complementary Apps including Fusion Applications • QUALITY Results: Customers are live today on 12. 1 – New and existing customers are already live and upgrading – Customers are achieving predictable results => use OCS, Experienced SIs or Oracle On Demand. • Choose ROADMAP: 11 i support deadlines are coming up – Premier Support ends in Nov 2010; uplift fee waived until Nov 2011 – Extended Support ends in Nov 2013 14

Oracle E-Business Suite Release 12. 1 A Sample of Customers Who have Upgraded! • ATT: Upgrade from 11 i 10 • Financials, AP, FA • Largest Payables Deployment WW • Agilysys: Upgrade from 11 i 10 • Projects, Assets, Payables, i. Procurement • Needed integrated ERP system manage and balance maintenance to support continued growth • CPS: Upgrade from 11 i 10 • New Features and Functionality • Datacard: Upgrade from 11 i 9 • 40+ Modules: Financials, OM, Inv, WMS, i. Supplier, CRM, Projects, OTL, i. Procurement, Purchasing, etc. • Mc. Donald’s : Upgrade from 11 i 10 • Projects, Assets, Payables, i. Proc • Standardize construction mgmt processes, track and manage costs by project areas and ensure continued system support • Pentel America: Upgrade from 11 i 9 • Financials, Inventory, WMS • Better functionality; better support options; ability to eliminate customizations • Oracle Corp. Upgrade from Release 12 • Financials, HR, Procurement, SSHR, Contracts, etc. • Usana Health Sciences: Upgrade from 11 i 10 • Financials, PM, Adv Plan, Inv, WMS • Support the multi-national company, Improved inventory control, demand visibility, reduce cost of managing mfg processes 15

Oracle Projects For More Information… • Link to the Release Content Document for Projects • Up to and including R 12. 1. 3 • https: //metalink 2. oracle. com/metalink/plsql/ml 2_documents. show Document? p_database_id=NOT&p_id=561580. 1 • For more information about Oracle Applications • http: //www. oracle. com/applications/home. html • Building the Business Case for your Upgrade • Upgrade Advisor My Oracle Support note and communities • https: //support. oracle. com/CSP/main/article? cmd=show&type=NO T&id=250. 1 16

Building the Business Case for your Upgrade Accelerate your evaluation and planning http: //launch. oracle. com/? OOW 17

Upgrade Advisor on My Oracle Support 18

Technical Overview 19

12. 1 upgrade overview • R 12. 1 was generally available (GA) in May 2009 • Via Oracle Electronic Product Delivery (EPD)and oracle Store • For all the supported platforms and languages • Can be used by new and upgrading customers (11. 5. 9 and above) to go directly to R 12. 1 • If you are on R 11 i, use R 12. 1 Rapid Install from EPD. Follow instructions from the “Upgrade Guide: 11 i to 12. 1” • If you are on R 12. 0. X, use R 12. 1 Maintenance Pack (7303030) from My. Oracle Support (MOS). Follow instructions from “R 12. 1 Maintenance Pack Install Instructions 752619. 1)” 20

12. 1 upgrade overview Upgrade Paths • Minimum EBS suite level for direct upgrade to R 12. 1 • 11 i 9, 11 i 9 CU 1, 11 i 9 CU 2 or above • 11 i 10, 11 i 10 CU 1, 11 i 10 CU 2 or above • R 12. 0. 0 and above • Minimum EBS suite level required for database to be at • 10 gr 2 (10. 2. 0. 4) : 11 i 9 CU 2, 11 i 10 CU 2 • 11 gr 1 (11. 1. 0. 7) : 11 i 10 CU 2, R 12. 0. 4 • 11 gr 2 (11. 2. 0. 1) : 11 i 10 CU 2, R 12. 0. 4 • One or more of the following choices apply based on your current configuration and your target configuration • Upgrade database and EBS level in a single downtime • Upgrade database and EBS level in separate downtimes 21

12. 1 upgrade overview R 12. 1 Technology Stack Technology Component Version included 11. 5. 10. 2 Version included 12. 0. 4 RI Version included R 12. 1 RI Version certified with Minimum required version for upgrade Apps Mid tier 6. 0. 8. 25 Forms/Repor ts 10. 1. 2. 2 10. 1. 2. 3 Apps Mid tier - Java Oracle Home / Apps Mid tier -JDK 1. 0. 2. 2/ 1. 4. 2 10. 1. 3. 0/ 1. 5 10. 1. 3. 4/1. 6. 0 10. 1. 3. 5 10. 1. 3. 4/1. 6. 0 Database/JD BC drivers 9. 2. 0. 6/9. 2. 0. 6 10. 2. 0. 3 11. 1. 0. 7/11. 1. 0. 7 11. 2. 0. 1 10. 2. 0. 4/11. 1. 0. 7 10. 1. 2. 3 Complete list at “Oracle E-Business Suite Release 12. 1. 1 Maintenance Pack Installation Instructions” (752619. 1) 22

12. 1 upgrade overview Technology advantages • Rich UI • • Look ahead LOVs Hover-over pop-ups Spider graphs Widgets • Better look and feel • XML Publisher – Customize reporting needs • Reporting Pack solution • Every RDF , report is converted in xml and RDF do co exists for e. g. PAXAUMTC & PAXAUMTC_XML 23

12. 1 upgrade overview Sample of hover pop-up • Hover your cursor on Project Number in the project list table to view project details 24 24

Operational Advantages • • • Supportability Stability Better performance / Opportunity to re engineer Frequent CUs Less Maintenance Costs 25

Upgrade Best Practices • Identification of required patches • Prepare a complete list of pre and post patches and recommended code levels • Keep the system current on AD/ATG/OAM code e. g. latest AD/ATG RUPs on 11 i/R 12. 0 and once on R 12. 1 • High priority patches from My Oracle Support • Consolidated Upgrade Patches (CUP) and required one offs that need to be applied in pre-install mode. R 12. 1 CUP 1 (7303029: 12. 1. 0) is available now • Review “Known-issues” sections from key documents to determine additional pre or post upgrade patches : • Release notes, MP Install Instructions 26 26

Upgrade Best Practices • Patch merging and sequencing • Take advantage of patch merge, hot patching and apply patches in the correct sequence. For e. g. apply MLS as hot patches • Complete pre upgrade activities • Identify and execute tasks that could be completed in a separate downtime period, prior to the production upgrade • Use applicable steps mentioned in the "Downtime reduction" and “Upgrade By Request” appendices E and G of the R 12. 1 upgrade guide • Upgrade RDBMS version to latest certified for the current APPS level ( 11. 2. 0. 1 / 11. 1. 0. 7 / 10. 2. 0. 4 ) • Convert to Oracle Applications Tablespace Model(OATM) • Compacts database, optimizes storage settings and reduces I/O • Other planned HW or OS upgrades 27 27

Upgrade Best Practices • Pre-upgrade activities continued. . . • Use TUMS (“The Upgrade Manual Script”) to avoid running tasks that are not relevant for your system • Convert to multiple organization architecture Document 210193. 1) • Drop MRC schema ( 11. 5. 10 and above ) • Gather stats with GATHER_AUTO option for all schemas • Minimize historical data to be upgraded as per business requirements – “Upgrade By Request” • Purge old and/or transient data before upgrading • Over 260 standard purge programs in R 12 • Use new “Purge Portal” in OAM to administrate 28 28

Upgrade Best Practices • Adpatch options and other reporting tools • Use applicable adpatch options to reduce downtime and track key upgrade aspects using in-built tools • Key recommended fixes (Pre Upgrade) • Affecting Upgrade Performance • AD-Parallel improved scalability: 8917381 (Part of 9179588 AD CUP) • Forms/reports generation regression with 11 g: 8557019 • Projects • PJ_PF Oracle Projects Consolidated Upgrade Patch (CUP) for 12. 1. 1 : 9071598 (Part of 7303029 AU CUP) • General • Review documents 244040. 1 and 950896. 1 for latest EBS recommended performance fixes 29 29

Upgrade Pre & Post Recommendations • PRE Upgrade • Interface with payables • Adjustments on existing Prepayments, Prepayment Discounts and Prepayment Applications will be prohibited. • Customers have to ensure that all necessary adjustments are performed before upgrading to R 12. • Ensure all the adjustmenst to Expense reports and Supplier Invoices are fully processed prior to upgrade. (pa 120 u 05. sql ) • POST Upgrade • MRC : If you have some custom columns defined for MRC amounts, those may generate errors! • Understand configure new pillar features like ebtax, sla, moac etc. 30 30

Lessons Learnt • Properly size RDBMS for upgrade • • • init. ora Undo Shared pool DB Cache PGA Aggregate Target • Plan for additional storage for staging patches, pre-built code • Use production like hardware for UAT • Optimize CBO stats • Set plsql_no_compile=yes • Use higher batch size (10000 -20000) • Choose adequate numbers of workers 31

Lessons Learnt • Repeat the upgrade until all issues are fixed and downtime is consistent • Ensure new customizations comply to new standard • Test ! & More Test ! 32

References For More Information… • R 12. 1 documentation roadmap (790942. 1) • “Oracle E-Business Suite Release 12. 1 Info center” (806593. 1) • Database preparation guidelines for R 12. 1 upgrade (761570. 1) • Patching FAQs (459156. 1, 225165. 1) • Using staged or shared APPL_TOP and distributed AD • (734025. 1, 384248. 1, 236469. 1) • OAM “Patch Wizard” overview and FAQ (976188. 1, 976688. 1) • AD Command Line Options for Release R 12 (1078973. 1) • Recommended Performance Fixes (244040. 1, 950896. 1) • R 12 Upgrade Sizing & Best Practices (399362. 1) 33

PICO Holdings 34

Oracle Open. World 2010 EBS Projects Session Schedule Title Presenters Date/Time Location Barbara Fox, Oracle Selva Mudaliar, Oracle Wednesday 4: 45 PM Marriott Hotel Golden Gate B Patrick Krause, IT Convergence Rao Adivikolanu, Oracle Thursday 9: 00 AM Moscone West L 3 3000 CISDI's Transformed Enterprise: Running the Business with Oracle Projects 12 Rongxiang Liao, CISDI Li Zhiyou, CISDI Dean Herback, Oracle Kazim Isfahani, Oracle Thursday 10: 30 AM Moscone West L 3 3000 Managing Project Risk Using Oracle Projects at M. A. Mortenson Company Jeff Flake, M. A. Mortenson Dean Herback, Oracle Thursday 1: 30 PM Marriott Hotel Golden Gate B Carl Morley, Oracle Thursday 1: 30 PM Moscone West L 3 3000 Project Management Best Practices Oracle Project Analytics for Oracle EBusiness Suite Quick Wins that will make you a hero: EBusiness Suite Projects

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The Journey to Business Value Choose a Path That’s Right for You Continue on Your Current Path • Evaluate the latest Applications releases to add value to your business Move to Fusion Step by Step APPLICATIONS UNLIMITED • Enhance business value by augmenting Applications Unlimited with Fusion Middleware and Fusion Applications Upgrade to Fusion Applications • Upgrade by pillars or a global single instance 41