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When do we re-implement instead of upgrade?

Especially when the effort/cost required for both the options is approximately the same? If we were to assume the upgrade is from any of the 11i versions to R12, what are the key factors which will help us reach  a logical conclusion on this topic?
Two sides to this debate would be:

A) in favor of re-implementation (to avoid pain of resolving upgrade issues)

B) in favor of upgrade (to leverage Oracle's upgrade path and support)

To start off this thread, my starting comments in favor of option 'A' are:

Re-implementation provides more opportunities as listed below:

- get rid of old transactional data

- better control over golive cut-over

- less risk/dependency on DBAs/Oracle

I invite your thoughts on either of the above mentioned options.


Following are a few pros and cons:



1. Reconfiguration of existing processes thus opportunity to correct mistake and optimize processes.
2. Opportunity to cleanup existing data
3. Phased as opposed to big bang
4. No system downtime


1. Implementation cost and time would be high
2. Setup time would be high
3. Data conversion would be required
4. Bigger team size


1. Less implementation time with low customizations
2. No additional time required for setup
3. Upgrade can be done in one shot
4. No data conversion
5. Small team

1. Have to live with existing Issues
2. System downtime
3. Critical upgrade issues require support from Oracle

Dear Ashish,

Thank you for contributing. Some of the points you have highlighted are really important and stimulate addtional thoughts. I was wondering if you could describe little bit on below points under Upgrade-Pros:
1. Less implementation time with low customizations
3. Upgrade can be done in one shot

Here is my response to your query:

1. Less implementation time with low customizations

- In Upgrade, If there is heavy customization (i.e. lots of RICEW components), then it will take lots of time.. While Oracle provide scripts for all the standard components, it is the Customization, which requires careful planning & lots of development effort.. If customization is low (say, it is only few custom report in a small installation), Upgrade will be much more quicker.. In Reimplementation, since we have opportunity to improve upon existing mapping & taking advantage of new functionalities, there are good chances of reduction in no of customizations. But, this also increase Implementation time.

3. Upgrade can be done in one shot

- In Reimplementation, it is usually a phased approach, as you are looking for reconfiguration, and improving the processes.. In upgrade, since it is not the criteria, and also Upgrade require downtime.. it is done in single shot.. Sometime, for critical project, it is done in two steps, first the database upgrade (Usually required) and second apps upgrade. This break the system downtime in two parts, and hence system will not be down for long time.. Also, this is usually carried out during weekends to avoid heavy business transactions.

Ashish pointed out pros and cons of each approach. Before suggesting any approach or its pros and cons, we should understand the following from the client organization:
1) What are the key reasons for the business to go to R12? What are the issues they have in the current version of 11.5.10?
2) Do they want to increase the scope of the ERP area (In addition to existing Oracle modules, they would like to have few more business operations on the ERP platform)?
3) What is the scope of resource availability and budget from the client end?

Suggestion of implementation vs. upgrade is dependent on a combination of answers from 1 to 3.

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