Making the decision to upgrade or switch to a new ERP
While the latest JDE release is pretty great, dealing with an older version can be a pain. If you haven’t made the move yet, work can be more difficult than it needs to be. On a micro level, daily tasks can be overly complicated. On a macro level, the business is probably at risk. Most likely the fact that something needs to be done – whether that’s a JDE upgrade or moving to cloud ERP – is keeping someone (or multiple someones) up at night.
Terillium has been a JD Edwards consulting partner for nearly 30 years. Our team has helped hundreds of companies upgrade to the latest version of JDE. Over the past ten years, we’ve also helped multiple companies move to cloud ERP – including NetSuite.
We’ve rounded up some of the things we’ve learned by leading companies through the JDE assessment process to find the best path forward.
Managing risk
Any ERP project involves some level of risk. So does operating on an older version of your software. JD Edwards users on version 9.1 or earlier (9.0, 8.12, Xe, World) are often facing the following risks:
- Cyber security risks
- Being off Oracle support – no longer on maintenance or a supported JDE version
- Financial risk if your data integrity is compromised
- Overall risk due to a lack of visibility into business performance
Other potential headaches from using an outdated version of JDE
- You’re still on maintenance but the fees are too high (especially for the business value)
- Your JDE user experience is less than ideal
- Your current system setup is inflexible and doesn’t allow for innovation and agility
- You have siloed systems and lack overall integration
- Your business processes are slow or overly complicated
- Your ERP is negatively affecting customer experience (issues with order processes, fulfillment, inventory management, shipment delays)
The bright side – what’s available with modern ERP software
Whether it’s upgrading to the latest release of JD Edwards EnterpriseOne or moving to cloud ERP – there are major benefits.
The benefits of a JDE upgrade
The biggest benefit of doing a JDE upgrade is getting to a more strategic position – aligning your technology with your business. Other benefits include:
- Increased cybersecurity
- Being on a supported version with guaranteed support through 2034
- Taking advantage of new features and functionality (UX One, Orchestrator, Mobile)
- Enhanced integration capabilities
- Better JDE user experience (options for personalization and easier navigation)
The benefits of moving to a cloud ERP – like NetSuite
The biggest benefit of moving to cloud ERP is getting to a position where your company is set up on the latest ERP technology. Other benefits include:
- Increased cybersecurity
- Uptime – NetSuite for example guarantees 99.96% uptime
- Automatic upgrades twice a year – every NetSuite user is always on the latest version
- One integrated ERP software suite
- Easily integrate with other important business applications
- Better user experience on both desktop and mobile
- Scalability
- Cost savings when reducing on-premise hardware
- Cost savings on software maintenance fees
Considering a JDE Upgrade
The type of upgrade your business needs is probably the biggest factor in your decision to upgrade JDE or switch to new ERP software. Will your upgrade be a:
- Technical upgrade (typically referred to as a “like for like”)
- Functional upgrade (a technical upgrade with some additional process improvements or functional enhancements)
- Transformational upgrade (essentially “starting from scratch”)
If your business is looking at a transformational or functional upgrade, it’s worth doing an assessment to consider other options to compare costs and other factors (ROI of the project, business benefits, features and functionality).
Switching to cloud ERP
It’s estimated that seventy-five percent of ERP software purchased this year will be cloud software as a service (SaaS). A global survey found that only 15% of companies use on-premise ERP today. One final ERP trend statistic: on average companies save 30-40% when switching to cloud ERP.
NetSuite
NetSuite is considered the world’s number one cloud ERP for a few reasons. It was the first true cloud ERP when it launched in 1998. Today it is used by over 37,000 customers worldwide. NetSuite is also kind of cool, as far as business software goes. The company culture is fun and innovative. Most importantly NetSuite is an excellent software solution. Some of the key features of NetSuite are:
- “Out of the box” functionality – compared to other ERP, it can be easier to implement
- Built-in industry best practices – easily leverage tools created for your industry
- Integrated tech stack – NetSuite is one suite of integrated business applications – and there are also over 600 external applications that integrate directly with NetSuite
Fusion Cloud ERP
NetSuite was acquired by Oracle in 2016, but prior to that acquisition Oracle had already launched a new cloud ERP – Fusion Cloud. Fusion Cloud is used by big brands like DropBox, Discover, Lyft, and FedEx. Oracle Fusion Cloud ERP was built to scale and grow with your business. It is an integrated software suite, with state-of-the-art security as well.
Cost considerations
There are a lot of factors to consider when it comes to comparing the cost of a JDE upgrade to the cost of implementing a new ERP. We’ve come across instances where it cost less to implement NetSuite than to upgrade JDE. We’ve also worked with companies where a JDE upgrade made the most sense – especially once you upgrade to EnterpriseOne 9.2. From there the yearly product updates are minor – big upgrade projects are no longer required.
The cost structure is different for SaaS ERP – like NetSuite. There isn’t a separate Oracle maintenance fee as you have with JDE, it’s all rolled into the recurring software subscription. With cloud ERP, there is no hardware to maintain or hosting to manage – NetSuite and Fusion Cloud are hosted in the cloud by Oracle. In terms of implementing cloud ERP, Fusion Cloud is often more expensive to implement compared to NetSuite.
To sum up, a few factors to take into consideration when evaluating your path forward with JDE:
- The cost to upgrade JDE
- Ongoing maintenance fees for JDE
- Implementation costs for cloud ERP
- Potential cost savings from lower software fees
- Potential cost savings on hardware or hosting services
