Should I upgrade to Oracle R12?

by Brian Livingston, Senior Consultant

When Oracle announced that Premier Support for Oracle E-Business Suite R11i would end in Nov 2010, IT departments started wondering when they’d need to make the switch to R12.

Understandably, many simply delayed the decision, mostly to avoid perceived additional costs and disruption. But in a recent survey commissioned by Rocela, a whopping 65% of respondents advised that they’re considering, are upgrading or have already upgraded to Oracle R12.

So, why the sudden change of heart?

The risks of non-compliance

One key reason may be the legislative requirements for HRMS customers. Under “Sustaining Support”, these customers will only be provided with Severity 1 production bug fixes, and not legislative updates.

This means that any changes made by Inland Revenue around tax codes, National Insurance and the like can’t be reflected in the following tax year by older versions of Oracle software. It doesn’t take long to imagine the dramatic impact this could have on the compliance position of Payroll customers, leaving organisations at considerable risk.

Sharing the load

Aside from legislative hurdles, there’s also the significantly more compelling fact that Oracle R12’s shared services model of operation can actually drive cost savings and increase information quality. Centralising information through a shared service center can create a consolidated view of essential decision-making data, accessible globally.

Standardisation of common business practices also adds to the timeliness and accuracy of data. With consistent business processes throughout the enterprise, information can be gathered uniformly, with consistent quality.

Assess the benefits

The upgrade to Oracle R12 guarantees compliance with legislation, offers the unique opportunity to roll out new business processes and makes concepts such as shared services a reality.

The software’s functionality will also allow organisations to make better, smarter decisions, and will enable enterprises to become more competitive by increasing application performance. All these factors combined will deliver the most sought after business benefit: cost saving.

It’s no wonder that there’s an increase in upgrade activity, however many IT departments still view the process of upgrading to a new software platform as a complex and costly process.

This doesn’t have to be the case. Providing the right assessment process and partners are in place and able to offer tried and tested services to help you decide whether upgrading is the right move and what the implementation plan should be.

The best advice for enterprises is don’t get left behind – get smart about the R12 upgrade and find partners with the knowledge and expertise to help you make the right choice.

Finally, we have just recently added a new case study to our website on Oracle R12 Upgrades – you can read this here.  We hope you find it interesting.

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