R12 A Big Step Forward

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R12 --- A Big Step Forward

• Prepared for NorCalOAUG
• January 17, 2008

October 12, 2007
Partnership for Success
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• About XsigoAbout NaviSiteXsigo Project
  Objectives Decision ProcessScope of the
  ProjectImplementation ApproachR12 FeaturesWhat
  Worked WellWhat Did Not Work So WellUpgrade
  ConsiderationsSummary

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About Xsigo

• Founded 2004
• Location
• Sunnyvale, CA
• Funding
• Kleiner Perkins,
• Greylock Partners,
• 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

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
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VP780 I/O Director

• 24 Server ports
• Expansion switch available for connection to
  hundreds of servers

• Hardware-based architecture
• Fully non-blocking fabric
• 780 Gb/s aggregate bandwidth

4U height

• Custom silicon
• Line rate throughput

• 15 I/O module slots
• 4 X 1Gb Ethernet
• 1 x 10Gb Ethernet
• 2 x 4Gb Fibre Channel
• SSL offload module

Redundant hot swappable fans and power supplies.
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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

• 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)
• N1 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
• 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)
Application Management
Upgrades
Patching
System Enhancements/ Customizations
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Professional Services Offerings at a Glance
Program Project Management

• PEOPLE
• Right blend of product knowledge, business /
  Industry experience and consulting skills
• Global Presence
• PROCESS
• Use Oracles AIM Methodology
• Establish a Global Business Model
• Facilitated Workshops Approach
• TOOLS
• Utilize Process Flows Approach
• Use tools and templates for rapid deployment

Enterprise Technical Architecture
Business Consulting System Selection Process
ERP and CRM System Implementation and
Transformation
Applied Technology Services (Custom Development,
Conversions, Interfaces)
Core Technology Services (Database, Middleware,
Messaging, Security, Enterprise Management)
Managed Services
Industry Based Solutions
Enterprise Business Process Execution Data Hubs /
Data Consolidations
Business Continuity High Availability / Disaster
Recovery
Adoption Learning
Upgrade
Consolidation M A Spin- Off
Enterprise Business Intelligence
Optimization Services
Health check Assessment
SOX - Compliance Governance
Change Management
Global Delivery
Global Roll Out
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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 specd 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

• 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
• Manufacturing 13
  
• Sales and Service 12
• Accounting 9
  
• HR 1

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Business Transactions
The key Oracle data objects transactions
Returns
Service
Ship
Sell
Buy
Plan
Design
Pick Pack Ship Invoice
Lead Oppty Sales Forecast Quote Contract Order
Service Request Contract Renewal
Mfg Forecast MDS MPS Planned Order
Item BOM ECO Design Graphics
Req PO Receipt Asset Payment
RMA AE
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Oracle Solution Footprint
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Architecture Hardware
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Architecture Technology Stack
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Implementation Approach
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We employed a proven implementation approach to
accelerate implementation and mitigate project
risk

• 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 business model and process flows
• Leveraged Business Flows to
• Stimulate discussion of business requirements
• Review leading practices and best use of Oracle
  applications
• Establish an initial Conference Room Pilot
• Use of Accelerators with AIM for Business Flows
  tools, templates

P E O P L E
P R O C E S S
Achieving a balance between time, quality, and
cost
T O O L S
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Utilize Standard Templates
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

Total 18 people
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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

• Purchasing
• Professional Buyers workcenter easier user
  interface with all a buyer needs in one html form
  - Autocreate PO, create and query POs and
  blankets
• Professional Buyers workcenter shares the
  catalog with iProcurement
• Payables
• XML for AP checks
• Payment workbench easy to see status of job,
  next step and payment statistics
• iSupplier Portal
• New supplier onboarding process as well as
  supplier managed user maintenance
• Teleservice
• New HTML Customer Support Dashboard with work
  list
• Xsigo preferred over Universal Work Queue because
  of its ease of use and ability to pick SRs and
  Tasks 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

• 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 its 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
• 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 contdBenefits from Oracle ERP

• 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

• 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

• Are you at version 11.5.7 or higher?
• 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
• Consider implementing significant technical
  advances available in R12 for business benefits
  you may need
• 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_at_navisite.com
Navisite, Inc 2720 Zanker Rd. San Jose, Ca. 95134
650.823.0929 (Cell) www.navisite.com