Are You Going to Fusion?

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Written by Helene Abrams Thursday, November 18 2010

An examination of the current state of Oracle Fusion Applications

There is much discussion and controversy over the decision to adopt Oracle’s next generation of Applications products. Fusion is not just an amalgamation of Oracle’s existing applications. Oracle touts the easy and clean user interface and how that makes users more efficient and effective in their day-to-day work because the information is accessible. The embedded key performance indicators allow users to make better decisions and react more quickly to changes. Oracle claims that Fusion’s open standards architecture reduces the barriers to innovation and allows hybrid applications in hybrid environments — on-premises, SAAS (Software As A Service), or in outsourced modes — to co-exist seamlessly. That’s the hype. This is the reality.

Fusion is currently a group of point solutions and is not going to be a fully functional ERP system until 2013, and it will not be able to replace existing EBS functionality. As Fusion modules begin to provide functionality of existing EBS modules, the EBS modules will be a replacement rather than an augmentation.

There are about 100 Fusion Application modules targeted for release this year (2010), primarily in the sales and marketing and HR areas with a few financial, procurement/supply chain, and projects modules. There is very limited support for order management, distribution and logistics, or manufacturing.

The pricing and licensing model for Fusion is unclear. It is likely that Fusion licenses will cost more, and users may be required to license Essbase to utilize some of the Fusion functionality.

Resources to implement Fusion will be scarce and expensive. There will be a high level of integration work required to integrate Fusion modules into an existing portfolio of applications. There is a high cost of maintaining the integrations as well.

Fusion will be in early adopter mode for several years and will not be a stable, "production-ready" environment. Users should expect to have extended test cycles with each product that is integrated into the Fusion environment.

Fusion will really be better positioned for new customers than for those who want to integrate disparate existing platforms.

Many of the EBS features will be incorporated into the Fusion framework, including an accounting flexfield and subledger accounting from R12. Essbase is a core component of the financial analysis applications, introducing a multidimensional database architecture to the existing relational structure of EBS.

We believe that a short-term (next 3-4 years) strategy for EBS customers is to make sure that their EBS environment reflects the way they want to do business, and then upgrade to R12.

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May Puzzle

David is often referred to as Rainman due to his peculiar ability to effortlessly figure out a certain date's day of the week. He recently displayed this talent when I asked him if there was a conflict with the upcoming Fuzzy Dice Conference and our weekly court-ordered community service. He asked the date of the convention. It was April 20th, 2012.

"Oh, that’s a Friday," he said, effortlessly. "And your sentences have you committed for the next few dozen Wednesdays so you'll be able to go." And of course he was right.

One day a few weeks ago I asked out loud in the office about the date June 5th. And of all people, my brother Tommy piped up and said "Oh, that's a Tuesday."

"That's right," said David.

Well how about Otcober 3rd?

"That's a Wednesday," said Tommy. Then I asked about Christmas Day 2012.

"Oh, that's a Tuesday." David nodded in agreement.

Do we now have two rainmen? Or had Tommy figured something out?

Show solution...

Solution

Here's what was going on. Tommy was using something called anchor dates. And these dates apply to each and every year. April 4th, or 4/4 we’ll call it from now on, June 6th or 6/6, 8/8, 10/10, 12/12, are all the same day of the week, each and every year.

So too are 5/9 and 9/5, May 9th and September 5th. So too are 7/11 and 11/7, and all the above dates are the same day of the week, as is the last day in February, Leap Year or not. And they’re all the same day as January 4th, it would otherwise be January 3rd, but this was a leap year, and that’s changes the anchor day from January 3rd to January 4th.

Tommy also knew that New Year's Day was a Sunday. He was sobered up by then. And he knew it was a Sunday because Christmas was a Sunday in 2011, so New Year's Day is a Sunday, so the Anchor Day for 2012, January 4th, has to be a Wednesday!

So if that's a Wednesday, then 4/4, 6/6, 8/8, 10/10, 12/12, 5/9, 9/5, 7/11, 11/7, and February 29th are all the same day of the week, and they're all Wednesdays. So when I ask for example, about October 3rd, he knew October 10th was a Wednesday, 10/10. So 10/3 must also be a Wednesday. 12/12 is a Wednesday in 2012, so it’s 12/26, which is two weeks later. So 12/25, or Christmas Day, must be a Tuesday.

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Basic Accounting Chart of Accounts Structure The Changing Enterprise Data Quality Data Systems Designing a Chart of Accounts Divestiture Financial Statement Generator (FSG) Reports R12 Return on Investment Analysis Trends & Technology Upgrade vs. Reimplementation Financial Standards

Success Tips for Oracle Project Management

Create a standard for documentation at the beginning of your project, and hold team members accountable for completing documentation requirements as well as keeping them at and above the standards required.
Before promulgating user documentation or training, it’s also a good idea to choose a representative from the among the business users base to review materials first.
If you are not sure about the resources and budget required, obtain several estimates from people that have experience with the same size and scope of your project.
Be explicit, before beginning the project, what internal resources are required for execution. This includes people, infrastructure, hardware, and software.
Help the project champion understand the impact your project will have on the organization and how its successful completion will make him or her an internal hero or heroine for supporting it.
Break up your project into smaller projects (try for projects that can be completed in 4-6 months, especially early on) to get success and demonstrate momentum.
Make sure that your testing includes reports, upstream and downstream interfaces, customizations, enhancements, and workflows.
Ensure that comprehensive transition reports and meetings between departing and incoming personnel are completed.
Instead of spending time and resources implementing third-party reporting, consider consolidating multiple instances, moving to a global chart of accounts (CoA), and/or standardizing on a consistent calendar.
Include governance, risk, and compliance management as part of the project plan.
Finally, celebrate the successes. Too many projects focus on defects, failures, or small cost over-runs without looking at the big picture and what was accomplished.

The Analyst Corner

John Van Decker, Research VP of Gartner, states:

"A single chart of accounts allows consistency in financial reporting across the enterprise by standardizing on common metrics and reporting structures, reduces dependencies on a separate financial consolidation system, and significantly reduces the costs incurred with ongoing, complex conversions and translations."