MUFI Rating & Risk – JD Edwards World

MUFI Rating & Risk – JD Edwards World

MUFI: Maintainability, Usability, Functionality, Implement ability

Vendor: Oracle (Select For Vendor Profile)

Introduction

Oracle JD Edwards World is Oracle’s ERP system for the midmarket, also acquired from JD Edwards.

Application Detail

Oracle acquired PeopleSoft and JD Edwards in 2005 (JD Edwards having itself been acquired by Peoplesoft in 2003), which means that as Oracle puts minimal developing into its acquisitions, this application is quite dated. Oracle JD Edwards World has a dated user interface.

Oracle JD Edwards World is a seriously old application. All of the screens appear to have been retrofitted from a green screen system.

▶ JD Edwards World - Advanced Pricing Demo - YouTube

Oracle JD Edwards World is our lowest rated application regarding usability, and its functionality is difficult to access.

It’s time to sunset this application. Oracle JD Edwards is not a competitive ERP system, and without the tie to Oracle, it would not survive on its own. The fact that Oracle has allowed the application to continue to be sold in its present state without investing development money is further evidence that being purchased by Oracle is a ticket to being obsolete as an application. Oracle is rated as our most slippery and difficult software vendor to deal with, and Oracle’s support is badly slipping for its applications. Every ERP system on our list will be a better choice over Oracle JD Edwards World, and most of these applications are developed by vendors far easier to deal with than Oracle.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

Oracle JD Edwards World is a risky implementation, the largest risk being related to the quality of the application itself. World is a much less expensive application than EnterpriseOne, and World accounts do not get the same type of control from Oracle account management as EnterpriseOne, and because the consulting rates are not very high for Oracle World they are not targeted by the major consulting companies, and those are both positives.

Likelihood of Implementation Success

This accounts for both the application and vendor-specific risk. In our formula, the total implementation risk is application + vendor + buyer risk. The buyer specific risk could increase or decrease this overall likelihood and adjust the values that you see below.

Risk Definition

See this link for more on our categorizations of risk. We also offer a Buyer Specific Risk Estimation as a service for those that want a comprehensive analysis.

Risk Management Approach

Oracle’s refusal to invest in World means that the buyer is implementing an inefficient system that has constant and well-deserved user adoption issues. Because of this buyers must put a very high amount into user training versus other ERP implementations.

To go back to the Software Selection Package page for the Big ERP software category. Or go to this link to see other analytical products for Oracle JD Edwards World.

References

Brightwork MRP & S&OP Explorer for Tuning

Tuning ERP and External Planning Systems with Brightwork Explorer

MRP and supply planning systems require tuning in order to get the most out of them. Brightwork MRP & S&OP Explorer provides this tuning, which is free to use in the beginning until is sees “serious usage,” and is free for students and academics. See by clicking the image below:

Software Selection Book

SELECTION

Enterprise Software Selection: How to Pinpoint the Perfect Software Solution Using Multiple Sources of Information

What the Book Covers

Essential reading for success in your next software selection and implementation.

Software selection is the most important task in a software implementation project, as it is your best (if not only) opportunity to make sure that the right software—the software that matches the business requirements—is being implemented. Choosing the software that is the best fit clears the way for a successful implementation, yet software selection is often fraught with issues and many companies do not end up with the best software for their needs. However, the process can be greatly simplified by addressing the information sources that influence software selection. This book can be used for any enterprise software selection, including ERP software selection.

This book is a how-to guide for improving the software selection process and is formulated around the idea that—much like purchasing decisions for consumer products—the end user and those with the domain expertise must be included. In addition to providing hints for refining the software selection process, this book delves into the often-overlooked topic of how consulting and IT analyst firms influence the purchasing decision, and gives the reader an insider’s understanding of the enterprise software market.

This book is connected to several other SCM Focus Press books including Enterprise Software TCO and The Real Story Behind ERP.

By reading this book you will:

  • Learn how to apply a scientific approach to the software selection process.
  • Interpret vendor-supplied information to your best advantage. This is generally left out of books on software selection. However, consulting companies and IT analysts like Gartner have very specific biases. Gartner is paid directly by software vendors — a fact they make every attempt not to disclose while consulting companies only recommend software for vendors that give them the consulting business. Consulting companies all have an enormous financial bias that prevents them from offering honest advice — and this is part of their business model.
  • Understand what motivates a software vendor.
  • Learn how the institutional structure and biases of consulting firms affect the advice they give you, and understand how to properly interpret information from consulting companies.
  • Make vendor demos work to your benefit.
  • Know the right questions to ask on topics such as integration with existing software, cloud versus on-premise vendors, and client references.
  • Differentiate what is important to know about software for improved “implement-ability” versus what the vendor thinks is important for improved “sell-ability.”
  • Better manage your software selection projects to ensure smoother implementations.

Buy Now

Chapters

  • Chapter 1: Introduction to Software Selection
  • Chapter 2: Understanding the Enterprise Software Market
  • Chapter 3: Software Sell-ability versus Implement-ability
  • Chapter 4: How to Use Consulting Advice on Software Selection
  • Chapter 5: How to Use the Reports of Analyst Firms Like Gartner
  • Chapter 6: How to Use Information Provided by Vendors
  • Chapter 7: How to Manage the Software Selection Process

Enterprise Software TCO Calculator – Oracle JD Edwards World

How it Works

Fill out the form below for a your customized TCO calculation, as well as each of the supporting cost components that make up the TCO. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: Oracle (See for Vendor Rating)
  • Software Category: Big ERP
  • Company Headquarters: 500 Oracle Parkway Redwood City, CA 94065
  • Site: http://www.oracle.com
  • Contact number 650.506.7000
  • Delivery Mechanism: On Premises.

Finished With Your Analysis?

Once complete, goto this link to see other analytical products for Oracle JD Edwards World.

Project Planning Package – Oracle JD Edwards World

How it Works

Fill out the form below for your project planning estimate. The form does not have a “beginning or end.” The form is constantly calculating, so feel free to make constant changes and the application will auto-adjust.

Details

  • Vendor Name: Oracle (See for Vendor Rating)
  • Software Category: Big ERP
  • Company Headquarters: 500 Oracle Parkway Redwood City, CA 94065
  • Site: http://www.oracle.com
  • Contact number 650.506.7000
  • Delivery Mechanism: On Premises.

Finished With Your Analysis?

Once complete, go to this link to see other analytical products for Oracle JD Edwards World.

References

Risk Book

Software RiskRethinking Enterprise Software Risk: Controlling the Main Risk Factors on IT Projects

Better Managing Software Risk

The software implementation is risky business and success is not a certainty. But you can reduce risk with the strategies in this book. Undertaking software selection and implementation without approximating the project’s risk is a poor way to make decisions about either projects or software. But that’s the way many companies do business, even though 50 percent of IT implementations are deemed failures.

Finding What Works and What Doesn’t

In this book, you will review the strategies commonly used by most companies for mitigating software project risk–and learn why these plans don’t work–and then acquire practical and realistic strategies that will help you to maximize success on your software implementation.

Chapters

Chapter 1: Introduction
Chapter 2: Enterprise Software Risk Management
Chapter 3: The Basics of Enterprise Software Risk Management
Chapter 4: Understanding the Enterprise Software Market
Chapter 5: Software Sell-ability versus Implementability
Chapter 6: Selecting the Right IT Consultant
Chapter 7: How to Use the Reports of Analysts Like Gartner
Chapter 8: How to Interpret Vendor-Provided Information to Reduce Project Risk
Chapter 9: Evaluating Implementation Preparedness
Chapter 10: Using TCO for Decision Making
Chapter 11: The Software Decisions’ Risk Component Model

Software Category Analysis – Big ERP

Introduction

ERP implementations are high-risk affairs. Much of the ERP functionality difficult to implement, many of the vendors are offering dated technology – that if it were not for how the word “legacy” is controlled by software vendors and consulting companies would be called legacy. (Hint, legacy is a term of propaganda, and can only every be used to label a system one wishes to replace – never to a vendor’s software.) One of the major complaints of ERP clients is that their ERP vendors have stagnated while buyers keep paying high yearly service charges.

The unfortunate, if underreported fact is that many years after most ERP systems go live, it is difficult to demonstrate the return on investments from them. This story is of course worse if buyers buy expensive ERP systems. Of all ERP categories, tier 1 ERP are the worst values – and the common logic presented that only tier ERP systems have the functionality for the complexities of large companies is not true. The actual costs of ERP systems are covered in our TCO Estimation for ERP, as well as in our Solution Architecture Packages. Several up and coming ERP vendors are far more competitive along all the decision making criteria in which we measure and score ERP software, and the fact that it is now easy to find stand alone financial applications that are superior to the financial modules in any ERP system is taking the wind out of the shopworn “ERP is necessary” argument. Furthermore, some of the best applications are – while not the least expensive, are towards the less expensive end of the spectrum.

What the Research Says About Risk Implications of ERP

ERP implementations are generally known as risky, but this does not seem to influence the software selection process. This is unfortunate as the risks vary depending upon the application selected. Only rarely is the actual success rate of ERP implementations quoted. According to the publication The Critical Success Factors for ERP Implementation: An Organizational Fit Perspective, the success rate is roughly 25 percent. So, according to this source, 75 percent of ERP implementations are considered failures. But quoting just one study is misleading because the estimates are truly all over the map, as the following quotation attests.

“A study by the Standish Group estimates that 31 percent of projects are not successful (Kamhawi, 2007). Barker and Frolick (2003) suggest that 50 percent of ERP implementations are failures. Hong and Kim (2002) estimate a 75 percent failure rate, while Scott and Vessey (2002) estimates failure rates as high as 90 percent. Different statistics for the success or failure of ERP projects have been offered by researchers. In addition Bradford and Sandy (2002) reported that 57 percent of the companies they interviewed had not attempted to assess the performance of their ERP systems owing to a lack of empirically effective evaluation models.” – Measures of Success in Project Implementing Enterprise Resource Planning

One of the most ridiculous arguments we have heard is that (particularly from the tier 1 ERP vendors) ERP implementations are so difficult that companies that manage to pull them off gain a competitive advantage over other companies. In this incarnation, the ERP system is presented as something akin to the Ironman Triathlon where the implementing company proves its toughness by running the gauntlet. It is an interesting analogy, which as far as we aware is unique in the field of enterprise software where ease of implementation—rather than difficulty of implementation—is traditionally considered a virtue. And in fact, the argument is edging extremely close to circular reasoning: ERP is virtuous because it is difficult to do, and it is difficult to do because it is virtuous. It is also the only time we can recall that a high failure rate is presented as a positive attribute of a software category.

ERP as “Just Another Application”

This transition of ERP from the center of the IT solution architecture is almost never written about or discussed (one of the few exceptions is in an article from Tech Target, who’s reference is show below) however, ERP is not nearly as influential or critical to the IT solution architecture as it once was. After bringing about a period of relative centralization (we say relative, because many of the “legacy” systems that ERP was supposed to eliminate never went away because ERP systems lacked the functionality to replace them), solution architecture has decentralized. And every year the scope of ERP shrinks and companies bring up less ERP functionality, and look for better functionality outside of ERP systems.  In fact, CRM has been forecasted by Forbes to surpass ERP in revenues by the year 2017. This is the first time that any other category of enterprise software has even come close to ERP sales since ERP was introduced back in the 1980s.

Interestingly even when this issue has been brought to the surface, such as with the Tech Target article, the coverage is notable for what is left out. Curiously, they quote Gartner about the future, the firm that coined the term “ERP” — and has historically been one of the big cheerleaders on big ERP. Gartner was one of the pied pipers that lead companies to these bad big ERP purchases on the basis of what has turned out to lack a strategic and technological foundation. This leads to the next section. The question being which of the ERP vendors can effectively support the new reality of ERP not longer being the center of the solution architecture.

Finding Flexible ERP Software Vendors

Buyers should look at ERP systems as an a la carte menu. In our Solution Architecture Packages we compare the TCO of multiple alternatives.

Buyers have all types of options; each should be evaluated on the basis of its TCO as well as the functionality match to the buyer’s requirements. These estimators will be quite a surprise to the vast majority of buyers, because our analysis shows that the only losing strategy is to choosing the recommendation of all the major consulting companies and center their solution architecture on a tier 1 ERP system. Not doing this means the buyer comes out with a far lower overall TCO and with far better functionality – resulting in a much higher ROI.

Some ERP software vendors are comfortable not being the center of the IT solution architecture and other are not. This indisputable final outcome of ERP is the opposite conclusion to a the ERP trend as predicted by every authority on ERP (primarily SAP and Oracle, consulting companies, IT analysts). They were supposed to be the experts on this topic, but they all had a major flaw – they all had a financial bias, making their forecasts invalid. See our Software Selection Packages to learn all about the effects of financial bias on forecasting. This makes dealing with SAP and Oracle in fact dangerous for buyers because they are proposing the continuation of a strategy that calls for a large and expensive ERP system, which is the center of the IT solution architecture continually consuming a large percent of the IT budget.

This strategy has never worked as the evidence from research that has been performed shows a negative return on investment from larger ERP solutions. (Tip: any entity that proposes that ERP has a positive ROI, simply ask them to produce the independent research study) The evaluation of the research on ERP systems is explained in fine detail in the SCM Focus Press book The Real Story Behind ERP: Separating Fact from Fiction.

On the other hand, other vendors, examples being ProcessPro, Rootstock and ERPNext never operated from this point of view, and are happy to have their system implemented as part of any solution architecture strategy desired by their customers – they are not practicing account control by selling an ERP system. Instead they have always considered themselves providing low cost ERP, and just one system as part of an overall ecology than can be the center or any fit with their customer’s solution architecture that the customer desires. These are the types of ERP vendors that buyers should seek out, as they provide not only the best software in ERP, but also the best ability to partner with, rather than seeking to control their customers. Another major advantage of purchasing from a software vendor that only makes ERP software is that buyers will not relentlessly pitched other products by these software vendors sales reps.

Tier 1 ERP is in the Price Gouging Phase

Oracle and SAP have put very little back into their tier 1 ERP products for roughly 15 years, and as a result the applications are seriously dated. However, their support costs continually increase. This is the negative consequence of software “lock in.” In fact it is estimated that Oracle receives up to a 90% margin on its ERP service contracts. Many buyers have felt the pinch as the following quotation suggests.

“When you put in a $40 million or $50 million ERP package, it’s difficult to have an exit strategy without causing a lot of pain. They know that, and so they increase our costs every year,” he says. Therefore, Steinour says he would like to lay the groundwork for a more strategic approach.” – ComputerWorld

If buyers could wipe the slate clean, we have concluded it is unlikely SAP or Oracle could rebook a high fraction of the customers it currently is receiving ERP support revenues from. Interestingly, the fact that one makes oneself extremely susceptible to the power of their supplier when they concentrate their purchases with a single software vendor was not brought up by any of the supposed experts that were promoters for big ERP. Hold you breath, because one of the major logics presented by ERP vendors, consulting companies and IT analysts was that ERP systems would reduce IT costs.

The Growth of SaaS ERP

Something, which we see as a strong future growth trend, is SaaS ERP. Consulting companies and non-SaaS software vendors have been proposing that SaaS should not happen for “core” applications, however their arguments are simply conveniently connected back to their financial models. SaaS for ERP is bad for them, but it is a good idea for their clients. It’s just that they don’t have SaaS applications to sell. Because they have no SaaS applications, to sell, their advice to customers is to only use SaaS for “non core” software like CRM.

SaaS ERP should begin at the smaller end of the company size spectrum and move its way up. SaaS solutions are particularly attractive for smaller companies and even for midsized companies that have underperforming tier 2 ERP applications. There are several very good alternatives. One of our favorites being ERPNext. These systems are easy for both experienced and novices to use because the business process is clearly explained right in the application.

Software Category Summary

The complete story on ERP is quite clear, it is simply not communicated to buyers because it’s more profitable to promote big ERP, rather than communicating accurate information on the topic. ERP systems never provided much of an ROI to buyers, and our research provides a logic for why when accounted for correctly, the ROI for most ERP systems has actually been negative. This research cannot be presented in a few paragraphs, but is presented in its complete form in the SCM Focus Press book, The Real Story Behind ERP: Seprating Fact from Fiction. However, buyers don’t have to accept negative ROI ERP implementations, and the best way to control for this is to select better and less expensive ERP systems, which have better functionality, can be implemented more quickly, and are not so difficult to integrate to other systems that they create negative externalities on the overall solution architecture. There are several good applications to choose from that meet all of these criteria.

MUFI Rating & Risk

See the MUFI Ratings & Risk below for all of the applications we cover.

Vendor NameApplication
Big ERP
SAPMUFI Rating & Risk – SAP ECC
OracleMUFI Rating & Risk – JD Edwards EnterpriseOne
EpicorMUFI Rating & Risk – Epicor ERP
SageMUFI Rating & Risk – Sage X3
InforMUFI Rating & Risk – Infor Lawson
Small and Medium ERP
SAPMUFI Rating & Risk – SAP Business One
OracleMUFI Rating & Risk – JD Edwards World
ProcessProMUFI Rating & Risk – ProcessPro
RootstockMUFI Rating & Risk – Rootstock
ERPNextMUFI Rating & Risk – ERPNext
OpenERPMUFI Rating & Risk – OpenERP
MicrosoftMUFI Rating & Risk – Microsoft Dynamics AX
Financial Applications
IntacctMUFI Rating & Risk – Intacct
IntuitMUFI Rating & Risk – Intuit Quickbooks Enterprise Solutions
FinancialForceMUFI Rating & Risk – FinancialForce
NetSuiteMUFI Rating & Risk – NetSuite OneWorld
PLM
SAPMUFI Rating & Risk – SAP PLM
Arena SolutionsMUFI Rating & Risk – Arena Solutions Arena PLM
Hamilton GrantMUFI Rating & Risk – Hamilton Grant Recipe Management
Demand Planning
SAPMUFI Rating & Risk – SAP APO DP
TableauMUFI Rating & Risk – Tableau (Forecasting)
Business Forecast SystemsMUFI Rating & Risk – Forecast Pro TRAK
Demand WorksMUFI Rating & Risk – Demand Works Smoothie
JDAMUFI Rating & Risk – JDA Demand Management
ToolsGroupMUFI Rating & Risk – ToolsGroup SO99 (Forecasting)
Supply Planning
SAPMUFI Rating & Risk – SAP SNP
SAPMUFI Rating & Risk – SAP SmartOps
ToolsGroupMUFI Rating & Risk – ToolsGroup SO99 (Supply Planning)
Demand WorksMUFI Rating & Risk – Demand Works Smoothie SP
PlanetTogetherMUFI Rating & Risk – PlanetTogether Galaxy APS Superplant
Production Planning
SAPMUFI Rating & Risk – SAP APO PP/DS
DelfoiMUFI Rating & Risk – Delfoi Planner
PreactorMUFI Rating & Risk – Preactor
AspenTechMUFI Rating & Risk – AspenTech AspenOne
PlanetTogetherMUFI Rating & Risk – PlanetTogether Galaxy APS
BI Heavy
SAPMUFI Rating & Risk – SAP BI/BW
SAPMUFI Rating & Risk – SAP Business Objects
OracleMUFI Rating & Risk – Oracle BI
SASMUFI Rating & Risk – SAS BI
MicroStrategyMUFI Rating & Risk – MicroStrategy
IBMMUFI Rating & Risk – IBM Cognos
TeradataMUFI Rating & Risk – Teradata
ActuateMUFI Rating & Risk – Actuate ActuateOne
BI Light
SAPMUFI Rating & Risk – SAP Crystal Reports
QlikTechMUFI Rating & Risk – QlikTech QlikView
TableauMUFI Rating & Risk – Tableau (BI)
CRM
SAPMUFI Rating & Risk – SAP CRM
OracleMUFI Rating & Risk – Oracle RightNow
OracleMUFI Rating & Risk – Oracle CRM On Demand
InforMUFI Rating & Risk – Infor Epiphany
Base CRMMUFI Rating & Risk – Base CRM
SalesforceMUFI Rating & Risk – Salesforce Enterprise
SugarCRMMUFI Rating & Risk – SugarCRM
MicrosoftMUFI Rating & Risk – Microsoft Dynamics CRM
NetSuiteMUFI Rating & Risk – NetSuite CRM

References

http://searchfinancialapplications.techtarget.com/feature/Is-ERP-technology-going-nowhere-or-everywhere