Tools Release 8.97 install to Ent Server

Hi,
I am confused on how to install tools release to my Solaris Enterprise Server. Below is the situation:

I have uploaded and distributed Tools Release 8.97.2.7 (897E27_06_25.par) to my existing Enterprise Server running on Solaris and 8.10/8.96.2.0.
I now need to change the current tools release to 8.97.2.7 from 8.96.2.0.

For this, should I :
Process#1 -
Go to my Enterprise Server managed instance in Server Manager.
Click Change button in Software Component Version and select the new tools release.
This process is mentioned in Chapter 15 of Server Manager Guide ( Ref: Change a Managed EnterpriseOne Software Component)

------OR------

Process#2 -
Go to my Enterprise Server's Managed home in Server Manager. Click on Create New Managed Instance.
Then select Install New Enterprise Server and then provide the required details.
This process is mentioned in Chapter 20 of the Server Manager Guide ( Ref: Create (Install) an Enterprise Server as a New Managed Instance)

Please tell me which process should I follow? (I have already taken a back up system folder and ini files in Enterprise Server.)
Do I need to stop EnterpriseOne services before I install tools release or it stops automatically? (Server manager mentions nothing about this.)

Any pointers would be highly appreciated.

Regards,
Sam
....

Assuming you created the instance in server manager for your enterprise server by "Registering an existing enterprise server", you would perform the following steps:

1. Download the .PAR file and add it to the management console's software components
2. Using SM, distribute that tools release to the management agent you used to register your enterprise server
3. Go to the managed instance for the enterprise server and use the "change component" to perform the tools release upgrade.