Implementing Oracle Applications in a complex world

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					    EOUG - Vienna, April 1998



      Programme Stream          n. 304




         Implementing
                 Oracle
          Applications
          in a complex
                 world
1                         Angelo Caruso, 1998
                         Personally...




    Now with Oracle Italy as Applications
    Education manager;
    Formerly with Business Reply, a Software
    Integration and Consulting house specialized
    in ERP systems, as a Partner ;
    A career as a Software Consultant and Project
    Manager;
    Educator in a Post-Graduate school as a
    personal interest.
                               Email: angelocr@tin.it

2                                            Angelo Caruso, 1998
                           The issue...




                  Why ERP
                 projects go
                  wrong ?

    problems;
    critical phases;
    time overruns;
    budget overruns;
    partial objectives
    fulfilment...
3                                         Angelo Caruso, 1998
                     Presentation contents




    What Oracle Applications really are ?

    Oracle Applications significance and
    underlying ideas;

    Why implementing them;

    A paradigm for enterprise innovation;

    Practical projects hints.

4                                            Angelo Caruso, 1998
                          What Oracle Applications really are ?



    The IT Manager point of view:

                                                          Human Resources
                      General Ledger
                                                     Payables
    Purchasing                                                     Service
                   Quality
                                A fully integrated,
                                                                  MRP
     Assets
                                 solid, database
                                   based, set of
                                software modules                             WIP
        Receivables
                                                         Cost Management

                              Order Entry
          ....
                                                                         Inventory
          Bills of Material                 Sales and Marketing

5                                                                       Angelo Caruso, 1998
                              What Oracle Applications really are ?



    The Top Manager point of view:

                                                           Human Resources
                      General Ledger
                                                      Payables
    Purchasing                                                      Service
                   Quality
                                 A complete set of
                                                                   MRP
     Assets
                                 carefully crafted
                                business processes,
                                    rules, and                                WIP
        Receivables
                                    structures
                                                          Cost Management

                               Order Entry
          ....
                                                                          Inventory
          Bills of Material                  Sales and Marketing

6                                                                        Angelo Caruso, 1998
              All in All




         Advanced
        Technology
           and
    Business Experience
         together.

    Available and ready
7         to use !         Angelo Caruso, 1998
                Oracle Applications underlying concepts




    There are some general, and very important,
    business concepts, inside Oracle Applications, we
    must understand and prepare our organization
    to acquire:

                   event/event driven;
                   process;
                   syncronization;
                   configuration.

                          Let’s briefly go through them.
8                                                Angelo Caruso, 1998
                      Event/Event driven




    The same, single, stymulus should
    be known, have a suitable well
    documented response, and cause
    an appropriate specific (re)action,
    in each part of the enterprise.
                 common language;
                 common cooperative behaviour;
                 repeatability;
                 enterprise integration.
9                                          Angelo Caruso, 1998
              Process/Process Centered Organization




     Process: Series of operations
     deliberately undertaken in view of a
     desired objective.
     Business Processes have the objective
     of creating value, ie: something a
     customer is willing to pay for.

     Processes break the functional barriers
     and tend to optimize the enterprise
     operations toward the customer.
10                                          Angelo Caruso, 1998
                          Syncronization




     In just a few words; syncronize processes
     on basic events; simplify and integrate
     operations based on the same events,
     data items and similar objectives.

                     Management Accounting;
                     Project Accounting;
                     Product/Services Accounting;
                     Fiscal Accounting.

11                                         Angelo Caruso, 1998
                       Configuration vs Customization



     Customization: modifying a software module code, so
     to adapt it to a specific situation requirements.
     Configuration: using software built in tables,
     variables and supplied choices to make it work as
     near as possible to needs.

     Fortunately, Oracle Applications have very flexible and
     powerful configuration capabilities. Use them and
     whenever possible change your organization towards
     the “best in class” business processes proposed by the
     modules.
         Beware ! Customization has several dangerous
         drawbacks ! You can suffer unsuspected bad
         effects for a very long time.
12                                                       Angelo Caruso, 1998
                   Two different kind of advantages




     Hard Advantages: Directly obtainable by
     adopting Oracle Applications modules
     inside a business.
     Soft Advantages: Made possible (enabled)
     by adopting Oracle Applications modules
     inside a business.

         Do decide beforehands which kind of advantages
         is your business looking for. Hard ones are just
         inside the box; soft ones, more valuables, require
         changing the way you work !
13                                                   Angelo Caruso, 1998
                   A paradigm for Enterprise
                          Innovation


     Our enterprise, from a systemic point of view
     is an entity dynamically interacting in its
     environment
     this entity is a dynamic equilibrium of three
     strictly tied components:
                  Organizational aspects;
                  Human aspects;
                  Technology aspects

     equilibrium should be preserved during
     and after change.
14                                          Angelo Caruso, 1998
             An Enterprise Model




                         tech-
                         nology
     human




                                          Mario Rossi
                                          Presidente


                orga-              Furio Bo

              nization            Assistente


                         Giorgio Verdi    Enzo Bianchi     Franco Bolli
                         Dir. Vendite    Dir. Produzione   Dir. Logistica


15                                                         Angelo Caruso, 1998
                         An Enterprise Innovation Program




                         tech-                               tech-
                         nology                              nology
     human                               human

             As is                               To be


               orga-                               orga-
              nization                            nization




     A well designed path between two equilibrium states

16                                                    Angelo Caruso, 1998
                                    From the beginning...




                           tech-                                     tech-
                           nology                                    nology
     human                                     human

             As is                                     To be


                 orga-                                     orga-
                nization                                  nization

                                     design
       assess                                    define


      ...study, document, share and reach an agreement.
17                                                            Angelo Caruso, 1998
                              Our project is...




                        migration path
             human                          human




             tech-      migration path      tech-
     As is   nology                         nology       To be


              orga-     migration path       orga-
             nization                       nization



      ...a three dimensional enterprise change program.
18                                                   Angelo Caruso, 1998
                                   The three paths



     Technology Aspects Migration: The I.T. Consulting Domain;
                 • Which tools ?


     Organization Aspects Migration: The Management Consulting
     Domain;
                 • How will we work ?


     Human Aspects Migration: The People Information and
     Education Domain;
                 •Which impacts on us ?

                                        Each path is equally critical to
                                        the success of the program !
19                                                           Angelo Caruso, 1998
                                 A word to the Wise...



     Common causes of failure are:
             • not recognizing the significant efforts required to
             obtain soft advantages;
             • not defining and communicating clear program
             objectives;
             • not managing all the three paths with due care and
             attention;
             • improving tools and technology only;
             • understate the importance of human aspects
             • fail to put resources on support action and activities.
                                     Success, and failure as
                                     well, are in the details !!
20                                                              Angelo Caruso, 1998
                        The Program Management Team



     • The Sponsor
       • “This program is of capital importance
         for us and for our business”;

     • The Program/Project Manager
       • “A senior business computer-literate
         person will keep everything under
         control”;

     • The Business Advisor
       • “Deep experience of our business and
         our company will be paramount”

     • The Three Team Leaders
       • “Each change path is of high
21       importance to us”                        Angelo Caruso, 1998
                   At the end ...




      ...your Oracle
        Application
     Project will be a
     success, and will
      maintain all its
         promises !
22                                  Angelo Caruso, 1998