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Decide Now - JD Edwards Support Options
The document discusses options for JD Edwards World customers facing the end of vendor support for versions A7.3 and A8.1 at the end of 2013. It outlines three decision paths: ignore the issue, wait and see what happens, or decide now on a strategic direction. Under the decide now path, the options of upgrading to A9.3, migrating to a new ERP platform, staying on the current version with sustaining support or third-party maintenance, or pursuing self-support are reviewed. Third-party maintenance is presented as an option to extend the life of the current system and realize 50% savings over vendor maintenance costs.
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Decide Now - JD Edwards Support Options
- 1. Your Future JDEdwards World Strategy Options and Analysis for World A7.3 and A8.1 Users January 16, 2013 EXCELLENCE IN GLOBAL SUPPORT AND CONSULTING
- 2. Agenda • SpinnakerSupport Overview • IT Strategy and Decision Making • JD Edwards Support and Product Strategy • Decisions Faced by JD Edwards World Customers • Viable Options Review and Customer Examples • Questions and Answers Copyright © 2013 Spinnaker 2
- 3. SPINNAKER SUPPORT OVERVIEW Copyright © 2013 Spinnaker 3
- 4. Spinnaker Support: At-a-Glance Experience & Approach Fast Facts Experience & Approach • Over 10 years in business • Long-Term Client Relationships • 160+ Clients Globally • Stable & Expert Resources • 100% Customer References • Average 15+ Years Experience • 24x7x365 Support Availability • Collaborative Approach • Global Presence - Offices in • Proven Tools, Process and Denver, London, Singapore Methodology • Customer Service Culture • IP Policy & Process Adherence Copyright © 2013 Spinnaker 4
- 5. Mission and Values Mission To operate the most respected and talented Enterprise Application Services firm focused on Support and Consulting, where our customers and employees are valued beyond comparison. Values • Outstanding customer service and responsiveness • Best people providing best service • Creative solutions to difficult issues • Attention to detail • References from every customer • Honesty and integrity Copyright © 2013 Spinnaker 5
- 6. Spinnaker Today •Founded in 2002 by Rob Benson and Matt Stava • Served hundreds of clients over the past decade • 205+ resources across 3 continents • Strong, stable business • Growth and evolution spurred by client demand Recent Rewards Inc. Magazine – Inc. 500 List Supply and Demand Chain “Fastest Growing Private Companies” UK Oracle User Group Executive 100 Recognized by Supply list for multiple, consecutive years Partner of the Year Award & Demand Executive Magazine Copyright © 2013 Spinnaker 6
- 7. What We Provide Maintenance Co-Sourcing Consulting • Replace Oracle Maintenance • Application Managed Services • Implementation Services ⁻ User Support • Technology Services • Critical Software Bug Fixes ⁻ Business Process • Regulatory Updates • Strategic Business Services ⁻ Development • Customization Support ⁻ Staff Backfill • Supply Chain Services ⁻ As Needed Support • Highly Responsive • CNC Managed Services • Tracking and Management • Regulatory Compliance Individually, the services are powerful solutions for software support needs. Combined, they help companies optimize highly-valued IT budgets Copyright © 2013 Spinnaker 7
- 8. Sample Spinnaker SupportCustomers Consulting Co-Sourcing Maintenance Copyright © 2013 Spinnaker 8
- 9. Large Customer Examples Customer Revenue Employees Instances Abbot Labs $30.8B 90,000 24 Abitibi Consolidated $5.3B 17,000 2 Caterpillar $32B 104,000 1 Dole Food Company $8.5B 49,000 21 Goodrich $6.7B 25,000 6 Merck $10B 90,000 55 OshKosh Corp $9.8B 12,300 1 Universal Music $42.5B 104,000 46 Ethan Allan $.59B 4,800 3 “We understand complex JDE implementations” Copyright © 2013 Spinnaker 9
- 10. IT STRATEGY ANDDECISION MAKING Copyright © 2013 Spinnaker 10
- 11. Decisiveness…. “The willingness tomake decisions, even in the face of complexity or uncertainty” Copyright © 2013 Spinnaker 11
- 12. Decisiveness…. “The willingness tomake decisions, even in the face of complexity or uncertainty” Copyright © 2013 Spinnaker 12
- 13. “A decision withoutthe pressure of consequence is hardly a decision at all” - Eric Langmuir Copyright © 2013 Spinnaker 13
- 14. Changes in ComputingStructure Mainframe Computing 1970's 1980's 1990's 2000's 2010's Copyright © 2013 Spinnaker 14
- 15. Changes in ComputingStructure Distributed Computing Mainframe Computing 1970's 1980's 1990's 2000's 2010's Copyright © 2013 Spinnaker 15
- 16. Changes in ComputingStructure Internet Computing Distributed Computing Mainframe Computing 1970's 1980's 1990's 2000's 2010's Copyright © 2013 Spinnaker 16
- 17. Role of theIT Executive 2010's 2000's Hardware and 1990's Communications ERP and Applications 1980's CIO Role Strategic Business Created Solutions 1970's Copyright © 2013 Spinnaker 17
- 18. Role of theIT Executive 2010's Move from “Hardware and 2000's Networking” TO Hardware and 1990's “Driving Business Communications ValueApplications ERP and through 1980's CIO Role Technology” Strategic Business Created Solutions 1970's Copyright © 2013 Spinnaker 18
- 19. Who is drivingyour IT strategy? • Your Business? • You? • Your Vendors? Copyright © 2013 Spinnaker 19
- 20. Who is drivingyour IT strategy? 73% of upgrade decisions sited end-of-support as a compelling reason Oracle User Group Survey by Unisphere Research, 2012 Copyright © 2013 Spinnaker 20
- 21. Your IT Strategy Copyright © 2013 Spinnaker 21
- 22. Your IT Strategy Copyright © 2013 Spinnaker 22
- 23. JD EDWARDS WORLDMAINTENANCE Copyright © 2013 Spinnaker 23
- 24. Oracle Support Terms • Premier Support • Extended Support • Sustaining Support Copyright © 2013 Spinnaker 24
- 25. JDE World SupportEnd Dates Oracle®/Vertex® PR Tax Oracle® World Extended Version Integration Support End Support End Dates Date A7.3 December 2013 December 2013 A8.1 December 2013 December 2013 A9.1 April 2015 December 2013 A9.2 April 2017 December 2013 A9.2.1 May 2018 December 2013 Copyright © 2013 Spinnaker 25
- 26. The Problem •Version A7.3 and A8.1 move to Sustaining Support on 12/31/2013 • Sustaining Support – does not provide fundamental protections such as: – New bug fixes, updates, security alerts – Tax and regulatory updates – Upgrade scripts or certifications • Many organizations have not have a defined strategy for how to deal with this problem • Your business decision is being dictated by support policies rather than what’s best for your organization Copyright © 2013 Spinnaker 26
- 27. QUESTIONS Copyright ©2013 Spinnaker 27
- 28. THREE DECISION PATHS Copyright © 2013 Spinnaker 28
- 29. Decision Path 1 Ignore • Lowest short term cost • Least disruptive • Not very strategic Copyright © 2013 Spinnaker 29
- 30. Decision Path 1 Ignore • Lowest short term cost • Least disruptive • Not very strategic Copyright © 2013 Spinnaker 30
- 31. Decision Path 1 “Decision making is the specific executive task” - Peter F. Drucker Copyright © 2013 Spinnaker 31
- 32. Decision Path 2 Wait and See What Happens – Will Oracle extend support dates? – Can I upgrade in time before end of support? – I’m about to retire, this is someone else’s problem Is this a decision? Not Really….. Copyright © 2013 Spinnaker 32
- 33. Decision Path 3 Decide Now • Review business and cost structures • Prepare a pathway to meet your objectives • Decide and plan for your strategic direction Copyright © 2013 Spinnaker 33
- 34. Decision Path 3 Short Term Upgrade Longer Term Short Term Migrate to New ERP Long Term Sustaining Support Stay on Current 3rd Party Version Maintenance Self Support Copyright © 2013 Spinnaker 34
- 35. Decision Path 3 Short Term Upgrade Longer Term Short Term Migrate to New ERP Long Term Sustaining Support Stay on Current 3rd Party Version Maintenance Self Support Copyright © 2013 Spinnaker 35
- 36. Decision Path 3 Short Term Upgrade Longer Term Short Term Migrate to New ERP Long Term Sustaining Support Stay on Current 3rd Party Version Maintenance Self Support Copyright © 2013 Spinnaker 36
- 37. Decision Path 3 Short Term Upgrade Longer Term Short Term Migrate to New ERP Long Term Sustaining Support Stay on Current 3rd Party Version Maintenance Self Support Copyright © 2013 Spinnaker 37
- 38. Decision Path 3 Short Term Upgrade Longer Term Short Term Migrate to New ERP Long Term Sustaining Support Stay on Current 3rd Party Version Maintenance Self Support Copyright © 2013 Spinnaker 38
- 39. Decision Path 3 Short Term Upgrade Longer Term Short Term Migrate to New ERP Long Term Sustaining Support Stay on Current 3rd Party Version Maintenance Self Support Copyright © 2013 Spinnaker 39
- 40. Option Analysis 1.Upgrade to A9.3 2. Migrate to new ERP platform 3. Stay on Current Version Copyright © 2013 Spinnaker 40
- 41. UPGRADE TO A9.3 Copyright © 2013 Spinnaker 41
- 42. Option: Upgrade toA9.3 • Upgrade Costs – Assessment – Implementation – Testing – Training • Change Management • Operational Support • On-going Maintenance Copyright © 2013 Spinnaker 42
- 43. Option: Upgrade toA9.3 Oracle User Group Survey by Unisphere Research, 2012 Copyright © 2013 Spinnaker 43
- 44. Your Options: Upgradeto A9.3 69% Oracle User Group Survey by Unisphere Research, 2012 Copyright © 2013 Spinnaker 44
- 45. Option: Upgrade toA9.3 • Take advantage of new features and technology (Over 1400 changes between A7.3 and A9.2) • Significantly expanded functionality • Much improved tools • Greatly enhanced usability • Required for Vertex Payroll support However….. Will these things drive value for YOUR business? Copyright © 2013 Spinnaker 45
- 46. MIGRATE TO NEWERP Copyright © 2013 Spinnaker 46
- 47. Option: ERP PlatformMigration Very few top-tier alternatives: Solution Tier Vendors Market Share 1 Oracle/SAP 37% 2 Infor, Microsoft, Sage, Lawson 17% 3 Specialized, Vertical 46% Gartner Market Share Analysis, 2010 Copyright © 2013 Spinnaker 47
- 48. Option: ERP PlatformMigration • Upgrade Costs – Assessment – Implementation – Testing – Training • Change Management • Operational Support • On-going Maintenance • Software Licensing Costs Copyright © 2013 Spinnaker 48
- 49. STAY ON CURRENTVERSION Copyright © 2013 Spinnaker 49
- 50. Option: Sustaining Support • Continue to pay full maintenance amount for minimal value • New bug fixes are not provided • No Tax and regulatory updates for your version • Preserve ability to receive future versions of the software Copyright © 2013 Spinnaker 50
- 51. Option: Self Support • Greatest savings, eliminate maintenance payment • All regulatory updates provided by your staff • Must have the programming expertise to fix bugs in the systems – Core Code – Customizations • Immediate help may not be available in a “system down” emergency • Greatest risk, but may be an option Copyright © 2013 Spinnaker 51
- 52. Option: Third-Party Maintenance • Extend the life of your current ERP solution • Deliver of premium support on your current version – 24/7 support, which includes immediate response times – Bug fixes – Tax and regulatory updates – Deep understanding of your unique environment – Online, interactive troubleshooting – Customizations analysis – Proactive routine phone calls – A Support Partner Not a Vendor • Savings of 50% of current maintenance spend Copyright © 2013 Spinnaker 52
- 53. Option: Third-Party Maintenance JD Edwards Version A8.1 Vendor (Oracle) Model 2013 2014 2015 2016 2017 2018 2019 Annual Maintenance $ 72,000 $ 76,320 $ 80,899 $ 85,753 $ 90,898 $ 96,352 $ 102,133 Vendor Extended Support Uplift1 $ 9,090 $ 19,270 $ 19,270 Staff time researching issues $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 Upgrade to Maintain Support2 $ 300,000 $ 300,000 Annual Spend $ 390,000 $ 94,320 $ 98,899 $103,753 $ 117,988 $ 133,623 $ 439,404 $1,377,987 1 Assumming 10% first year and 20% for next two years 2 Estimated upgrade cost Spinnaker Support Model 2013 2014 2015 2016 2017 2018 2019 Annual Maintenance $ 36,247 $ 38,422 $ 40,727 $ 43,171 $ 45,761 $ 48,507 $ 51,417 Vendor Extended Support Uplift n/a n/a n/a n/a n/a n/a n/a Staff time researing issues n/a n/a n/a n/a n/a Upgrade to Maintain Support n/a n/a n/a n/a n/a n/a n/a Annual Spend $ 36,247 $ 38,422 $ 40,727 $ 43,171 $ 45,761 $ 48,507 $ 51,417 $ 304,251 Three Year 7 Year SAVINGS Savings: $467,823 $1,073,736 using Spinnaker Copyright © 2013 Spinnaker 53
- 54. Option: Third-Party Maintenance “When faced with critical ERP lifecycle decisions, such as whether to upgrade or replace a solution, third-party maintenance may be the answer that best meets the needs of the business.” - Aberdeen Group Copyright © 2013 Spinnaker 54
- 55. Option Analysis •Evaluate all options – What is the best approach for your business? • Gain organizational alignment for your direction • Design and implement a strategy to delivering business value • Establish estimates for each option and the value they delivery • Solicit input from your peers in similar environments Copyright © 2013 Spinnaker 55
- 56. Option Analysis “To drive effective business value you must be leading your strategy by thoughtful analysis of all variables” Copyright © 2013 Spinnaker 56
- 57. Customer Examples •Upgrade (following the roadmap) – Consulting Services – 20th Century Fox – Lucelec – Seneca • Migrate to new ERP Path – Co-Sourcing & Maintenance Services – Animal Health – Merck – Bosch • Stay on Current Version – Third Party Maintenance – Viacom – CE Franklin – Apria Healthcare Copyright © 2013 Spinnaker 57
- 58. Summary • Following thepath of least resistance it not driving a strategy • Decide early – it will result in more savings • Drive your strategy by involving business leaders, both short-term and long-term • Review the successes and failures from similar customers • Technology will change, leaders must adapt or they will be changed • Without a crystal ball, decisions are difficult Copyright © 2013 Spinnaker 58
- 59. QUESTIONS Copyright ©2013 Spinnaker 59
- 60. Contact Information Eric Osterloh Vice President Sales – Western Region 720-457-5437 eosterloh@spinnakersupport.com info@spinnakersupport.com www.spinnakersupport.com Copyright © 2013 Spinnaker 60
Editor's Notes
- #5 <Review Slide>A high level review of what we doSegue the core values and manner in which these services are delivered<next slide><next slide>
- #7 Founded as a supply chain business and IT consultancy – a deep understanding of the processes and systems you use to run your businessStrategy to Implementation to Execution (3PL) to SupportNo debt, no outside investorsDirection and evolution greatly inspired by customer demandGlobalTwo core lines of business – Led separately but operated cross functionally to deliver the maximum value to our customers
- #9 A sampling of our valued customers spanning multiple industries – from public sector and mining, to consumer packaged goods, construction, pharma, and industrial manufacturing . . . Just to name a few.Our customers also range in size from small regionally focused firms to the global enterprise with more than 50,000 employees.But, no matter their industry or size, each share a common need to improve the value of their software support by increasing quality and reducing spend.
- #14 Scottish mountaineer, author and outdoor instructor, His book Mountaincraft and Leadership, published in 1969, was quickly regarded as the bible for mountain instructors
- #20 Best case – business drives strategy….but…..Oracle sponsored study…72% upgrade due to ending support.
- #22 From the Aberdeen Report “in the eyes of the ERP vendor, it can be expensive to continue to support an obsolete product. These vendors have their sights set on selling new software. Therefore, software vendors often decide to discontinue support for certain solutions, despite the needs and desires of users. For enterprises that are relying on vendor support to keep their solutions running efficiently, this forced obsolescence is a problem. “
- #26 Note: If you are running Payroll, the Payroll Tax L Series will also lose support at the end of this year. You will no longer receive the tax updates needed. We do have a solution for this as well, the Q Series Integrator, that will allow you to continue running your older version of World with an interface to the new Payroll Tax Q Series.
- #43 Migrating off of JD Edwards is likely the most costly alternative of all. The significant human and financial capital investments associated with a JD Edwards upgrade are further compounded by the addition of an application selection process and all it entails. The cost of licensing has the least impact in a migration The cost of implementing new software is typically a factor of 2x -4x of the license fees depending on the complexity of the software being implemented. Organizational change management and retraining or hiring staff with the skills to support the new system layer on the cost An don’t forget the cost of on-going maintenance. Although a migration strategy may very well be the best path for your company to follow, one should not take a step down this path lightly or without thoughtful consideration.
- #45 You have to understand the timelines involved with upgrading – Spinnaker Support can help with this
- #48 Choosing to upgrade or migrate are similar but not identical paths. I continue to hold that an ERP migration path should only be stepped upon with the need to better serve our customers and the markets to which we deliver our products and services. I say this with full acknowledgement of the powerful economic and political influences often brought to bear in these decisions.The reality is, there aren’t that many quality solutions to choose from today.In the 1990s there were dozens of ERP vendors in the market, most of which prospered and grew at an impressive rate in a buoyant market.Today the ERP vendor landscape has changed dramatically. Six vendors account for almost two thirds of global ERP sales and SAP and Oracle alone own 50%of the global market by revenue. Two of the top six vendors, Infor and Microsoft, did not have an ERP presence at all in 2000.(6)One important point to make about the competitive landscape for ERP products is that the neat delineations suggested by the market segments and verticals just described do not always translate into a logical choice of ERP product. For example, most ERP vendors will be able to point to customers outside of their primary target market segment who are successfully using one of their products. Sometimes, organizations will choose a generic ERP product rather than one tailored for their industry vertical, often because of concerns about the longevity of the tailored product or of the organization that supports it.<next slide>
- #49 Migrating off of JD Edwards is likely the most costly alternative of all. The significant human and financial capital investments associated with a JD Edwards upgrade are further compounded by the addition of an application selection process and all it entails. The cost of licensing has the least impact in a migration The cost of implementing new software is typically a factor of 2x -4x of the license fees depending on the complexity of the software being implemented. Organizational change management and retraining or hiring staff with the skills to support the new system layer on the cost An don’t forget the cost of on-going maintenance. Although a migration strategy may very well be the best path for your company to follow, one should not take a step down this path lightly or without thoughtful consideration.
- #54 Data from Aberdeen's 2011 ERP survey which finished collecting data in April 2012 shows that third-party maintenance is on average less expensive than maintenance provided by the ERP vendor itself.In actuality, we have seen our customers save a lot more than this. (any examples)
- #56 Spinnaker is such a partner that can objectively provide you with the knowledge you need to make an informed decision regarding your JD Edwards path, whichever path you may choose to follow. Our goal is to guide your business to achieving its desired results.