If you hear this term first time , read previous post on Fusion and underline application.

Fusion Application announcement came last year prior to OOW 2010.Though fusion application suite is not ready for sale to the public yet, but Oracle Fusion Applications for Finance has many new capabilities that will be welcomed not just by Finance professionals but by line-of-business managers and employees.

Oracle Fusion Financials

The first release of Oracle Fusion Applications Financials covers general ledger, accounts payable, accounts receivable and collection Management, fixed assets, cash management and employee expenses. As mention is earlier post encumbrance and commitment accounting along with treasury management which included Cash management is excluded from the first version release.

Comparing with existing Oracle ERP(Oracle EBS, people soft like wise) with Fusion ERP, there would be significant Key differentiators.

Key Differentiators feature for Oracle Fusion Financials

Here would like to highlight a few features and capabilities that appeared to be significantly better and different from the other Oracle application suites.

1. Focus on simplified & intuitive user experience: After user logs into the system, based on the roles and privileges he has, a landing page would appear with relevant dashboards and areas to perform his day-to-day activities. No more switching back and forth between responsibilities (like Oracle EBS), all necessary data, transaction information, activities to perform, required analytics, navigation are pushed to him in one single page !!! A General Accounting Dashboard is such a great feature as you can see below:
   1. 
2. Rich User Interface with web 2.0 features for enhanced user experience
3. Integrated Business Analytical layer for better & Faster decision making: This is yet another beauty, where users no longer need to hunt for IT support/in-house IT or run reports in order to get analytical information out of data/transactions. The system shows relevant analytics data on the same page along with transactions when necessary which helps users to make better and faster decisions. This Superior reporting capabilities is enhanced by :
   • Simplified reporting platform natively built on top of a multi-dimensional data model (Multi dimensional Essbase cube has been
     introduced in Fusion Accounting)
   • Single step posting to multi-dimensional balances pre-aggregated at every level, that empower user to see
     • Journals : they can view projected account balances before posting
     • Payables Invoices : they can view supplier holds , identify previously matched lines to prevent overbilling & errors
     • Receivables Receipts : they can Intelligently apply receipts with rules-driven recommendations .
   • Self service and interactive reporting support live drilldowns to source transactions (Even to transactions from non-Fusion ERPs)
   • 
   • If you looks at the above figure you can find these component (left hand side) in diagram
     1. OTBI: Oracle Transactional Business Intelligence (used for ad-hoc and transactional data analysis)
     2. OBIA: Oracle Business Intelligence Applications (Used for historic and trend analysis)
     3. BIP: Business Intelligence Publisher (Standard reporting with variety of formats)
     4. Account Monitor, Account Inspector, Smart View (Excel based): Used for ad-hoc analysis and inquiry on financial data
4. Role based Structure for better compliance and security across the organization: Based on the common business practices, various roles have been defined in the system and each role will have certain permission and privilege to perform certain activities. Based on the role user plays in the business, appropriate system roles will be assigned to him. Moreover, apart from hundreds of seeded roles, flexiblity to configure them as per your business needs is still there.
5. Co-Existence Capability: Certain functionalities of Fusion Application are made available to co exist with Application Unlimited systems (EBS, PeopleSoft, JDE,Siebel etc). By integrating such fusion application features with existing ERP systems, customers can leverage certain fusion application features without compromising their existing investments in Application Unlimited ERP systems.
6. Extension ability of data model and user interface which allows users to handle their business requirements without customizing the application.
7. Uncompromised consistency throughout the Applications: Amazingly consistent design and architecture across all Applications functions enhances user productivity to a great extent. Moreover, it also reduces the maintenance and enhancement costs as well.
8. Tight integration with desktop tools: Spreadsheet integration Is another beauty in the application that minimize data entry errors processed data with Fusion.This not only minimize data entry also provide a familiar environment that is highly efficient for user since long time.
9. Embedded Out-of-the-box imaging integration : Oracle Imaging and Process Management provides an integrated document management capability to support accounts payable invoice automations. This will reduce workload by eliminating paper-based processes
10. Best of Basic architectural concept : If you recall Key accounting flex field concept of EBS , Ledger Concept of R12 Financial architectural that is coupled with Peoplesoft tree structures and effective dates concept, that makes Fusion is best of breed. This also armed with use of the Oracle Essbase multidimensional database to hold aggregate GL balances.
11. Multiple balancing segments :You can create balance sheet and other Management reporting package across multiple business dimension

Benefits to EBS Financials Users

Financial user can still can find lot many benefit with Fusion Financial application other than Differentiators mention above.Some of them are:

• Graphical hierarchies (trees)
• Shared reference data (SetId)
• Centralized inter-unit setup and processing
• Rules-based engine for AP matching
• Open item reconciliation processing
• Comprehensive budgetary controls
• Multi-level, flexible cash positioning
• Travel authorizations and cash advances

Hope this post helps you gain a better understanding of Fusion Applications functionality and help to establish a roadmap which you might be thinking for your company/customer in Fusion area.Lets hear more updated from Oracle on this in next few months :)

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So WHAT IS “ORACLE FUSION”?

People often get confuse with this term .To start with, it will be a good idea to know the difference between Fusion Applications and Middleware. Oracle Fusion is composed of two parts: Fusion middle ware and Fusion applications.

1. Oracle Fusion Middle ware aka FMW : Comprises of the Oracle Application Server and other technology stack components that Oracle has acquired in past few years.
   • Fusion Middleware is a family of middleware products covering areas like BI, Identity Management, Content Management and SOA.
   • Each of these areas has it’s own stack of products. Fusion Middleware was previously called Oracle Application Server.
2. Oracle Fusion Applications ….you can called as ERP module for Fusion : Oracle Fusion Applications is Oracle’s next generation suite of applications that eventually replace E-Business Suite. It will assimilate best of breed features from:
   • E-Business Suite
   • JD Edwards
   • PeopleSoft
   • Siebel.

Fusion Applications is build on top of the Oracle Fusion Middleware technology stack using Oracle’s Fusion Architecture as blueprint.

Therefore Fusion you can be refer to any of three things Middleware, Application, Architecture.With this Oracle is not only moving to the next generation technology stack like SOA, BPEL, BAM, JSF, Ajax, ESB, etc, but will also bring together the best in class underpinnings, of each of the incumbent suites, like Business Structure, Security Model, Workflow Process, and Event Models which you will find in later part of discussion.Before let have a quick look on Oracle’s Fusion Architecture .

ORACLE FUSION ARCHITECTURE

Oracle Fusion Architecture (OFA) is a standards-based technology reference architecture or blueprint for building applications. Note that Oracle Fusion Architecture is not a product, and can be used without licensing it from Oracle. Many organizations use it to write applications that can run on Oracle Fusion Middleware or that compliment Oracle Fusion Applications.[Adopted http://www.oracle.com]

Oracle Fusion Architecture is based on the following core principles:

• Model Driven: For applications, business processes and business information
• Service & Event- enabled: For extensible, modular, flexible applications and processes
• Information Centric: For complete and consistent, actionable, real-time intelligence
• Grid-Ready: Must be scalable, available, secure, manageable on low-cost hardware
• Standards-based: Must be open, pluggable in a heterogeneous environment

The Oracle Fusion Architecture’s SOA and EDA(event-driven architecture) technology consists of

• An integrated service environment (ISE) to develop services
• A multi-protocol enterprise service bus (ESB) to integrate applications
• A services registry for discovering and managing the life cycle of services
• A BPEL-based orchestration engine to tie services into business processes
• A business rules engine to enable business policies to be captured and automated
• A Web services management and security solution to enforce authentication and authorization policies on services and to monitor services and processes for compliance to SLAs

Combining all you can see the Architectural presentation as fig below:

Fusion Middleware Component for E-Business Suite

In the Fusion Middleware of E-Business Suite, here are the list of components :

On the technology front, Fusion Applications is completely developed using Fusion Middleware 11g on Oracle database 11g. Here is the list of technologies used in developing Fusion Applications:

• BI Publisher
• Application Integration Architecture (AIA)
• Applications Development Framework (ADF)
• Applications Server
• Business Intelligence Enterprise Edition (OBIEE)
• Content Management
• Database 11g
• Enterprise Manager
• Fusion apps are metadata driven which is managed by the MDS
  framework

let summarize these all in various components and products and tools

WHAT IS IN FUSION V1.0 ORACLE FUSION APPLICATIONS

Oracle Fusion Applications offer a complete suite spanning seven critical business areas consist of 100+ Oracle Fusion Applications modules which is targeted for first release.These are distributed across the following product families: 34 – Sales & Marketing; 21 – Human Resources; 13 – Financials; 6 – Purchasing; 7 – Projects Portfolio Management; 10 – Supply Chain Management; and 10 – Governance, Risk and Compliance. Majors are:

• Financial management
• Supply chain management
• Procurement
• Human capital management
• Project portfolio management
• Sales
• Governance, risk, and compliance
• Enterprise performance management

 

Not is scope so far(v1.0) are CRM(Service, Call Centre, Order Capture), SCM(Core Manufacturing, Manufacturing Execution),Industry(Public Sector -encumbrance accounting, etc.)

When Fusion is coming out

Hoping Oracle announced the general availability of Oracle Fusion Applications in the sometime in first quarter of this year

Fusion V1 & Fusion V2 functionality

Fusion V2 will be more likly to be more focused for Manufacturing, Supply Chain gaps, more localizations,and public sector functionality

MIGRATION TO ORACLE FUSION APPLICATIONS

The Oracle Fusion Applications platform was built with flexibility in mind,so companies can selectively add modules if and when it makes business
sense.

With the initial release of Oracle Fusion Applications likely focused on point solutions, most users will be concerned with how to integrate Oracle Fusion Applications into their core applications. This will be a substantially easier effort than migrating the entire core functionality

There are options/proposed path which can observed in various Oracle papers.

Here’s a plan for IT side which may be consider to be crafted roadmap for the future of enterprise applications

1. Continue on Your Current Path .That mean you need to evaluate the latest Applications Unlimited releases Oracle Applications releases such as Oracle E-Business Suite 12.1.3, PeopleSoft Enterprise 9.1, Siebel Customer Relationship Management 8.2, and JD Edwards EnterpriseOne 9.1 for the additional value they bring to the businesse .In addition to gaining value today, you will be in a position to upgrade to Oracle Fusion Applications in the future, if and when you choose.
   • EBS -> Fusion Apps
   • PeopleSoft Financials to Fusion Apps
   • PeopleSoft HRMS to Fusion Apps
   • Siebel CRM to Fusion Apps
2. Move to Fusion Step by Step . You need to adopt standards-based technology first. Consider Oracle Fusion Middleware as inhouse new initative and developing skill sets in technologies such as Oracle Application Development Framework, Oracle content management products, Oracle SOA Suite, and Oracle WebCenter. These tools will help you integrate, extend, and manage your applications environment today and prepare you to add Oracle Fusion Applications if and when you choose by upgrading one environment and then reimplement rest what ever/when ever.
3. Upgrade to Fusion Applications . Decide(if and when appropriate.)
   If you use any functionality that is not part of V1 but still see business value in going to Fusion Apps, this may result in multiple Fusion Apps instances.
4. Adopt a coexistence strategy . Add Oracle Fusion Applications modules to your existing environment or implement “pillars” (human capital management, sales, financials, or supply chain management applications whatever suits) to extend the power of Oracle Fusion Applications into your applications portfolio.

Product Supported Release for Fusion Upgrade

• E-Business Suite :Release 11.5.10, 12 or later
• PeopleSoft: Release 8.8, 8.0, 9.0 or later
• JD Edwards EnterpriseOne: Release 8.11, 8.12 or later 34
• JD Edwards World Release: A7.3, A8.1, A9.1 or later Siebel Release 7.9, 8.0 or later

You can refer to this for details http://www.oracle.com/support/library/brochure/lifetime-support-applications.pdf.

SKILL REQUIREMENT FOR FUSION SPACE

Inhouse IT as well as Consulting companies need skill such as BPM and process governance, to manage an Oracle Fusion Applications implementation.

The following technical skills are need to extend, maintain and support the various components of Oracle Fusion Applications:

• SQL, PL/SQL, JAVA & java script
• XML – Extended Markup Language
• CSS – Cascading Style Sheets
• XSL – Extensible Style sheet Language
• ADF – Application Development Framework
• JSF – Java Server Faces
• Web Services
• BPEL – Business Process Execution Language
• AIA – Application Integration Architecture
• Web Center
• BI Publisher
• OBIEE – Oracle Business Intelligence Enterprise Edition
• Hyperion Essbase
• WebLogic Server Administration
• Oracle Identity Management

Meanwhile you can keep reading Floyd Teter blog(see right handside blogroll) for more updates & thoughts from Fusion side.

Next few days, will share some more thoughts on hands-On perspective on Oracle Fusion Applications application business modules.until then keep watching this space.:)