MUFI Rating & Risk – JD Edwards EnterpriseOne

Introduction

Oracle second largest ERP software vendor with 13% of the ERP market. Unlike SAP, Oracle software heritage is not in ERP but is in databases and this why all of its ERP software was acquired. Oracle went through a transition where they moved from being primarily a database company to being an overall enterprise software company, and having a competitive ERP system was a significant part of that transformation. There was no reason for doing this, as most ERP systems can run on multiple databases, but it was an effective use of leveraging preexisting sales contacts to sell more software into existing accounts. Now that SAP has acquired Sybase, both Oracle, and SAP attempt to get their customers to use their database when they purchase their applications. This has nothing little to do with any technological benefit to doing so, but is related to competition between these two giants and is entirely based upon account control.

However, still Oracle JD Edwards Enterprise One has one of the best user satisfaction levels in the ERP software category.

Application Detail

Oracle JD Edwards Enterprise One competes directly with SAP ECC. It lags SAP ECC the breadth of its functionality (although a much higher percentage of it is usable than with SAP), and Enterprise One has a much better user interface.

JD Edwards EnterpriseOne Composite Applications & Screen Layout At Your Fingertips! - YouTube

Unlike in the SAPGUI, in Oracle, the user interface elements can in some cases be moved around the screen. While better than SAP ECC, Oracle’s JD Edwards Enterprise One user interface is still quite dated compared to almost every other ERP system. 

Speaking of the user interface, while SAP and Oracle tier 1 ERP systems are the most expensive applications in the ERP space, both user interfaces considerably lag ERPNext, which is inexpensive with one of the lowest TCO’s of any ERP system that we analyze.

The superiority of the user interface is clear from the screenshot below:

ERPNext Bookmarks

Some of the modern ERP systems allow the user to take advantage of easy to use bookmarks – and they have breadcrumbs along the top, which tells the user where they are in the process. These systems are easy for both experienced and novices to use because the business process is explained right in the application. 

When on uses either SAP or Oracle ERP systems, it seems like getting in a time machine when compared to the newer ERP applications. Both SAP and Oracle are offering ERP software to business which is seriously dated, and which has serious negative implications for the productivity of companies that purchase it. The only reason that is not more broadly known is that the major consulting companies and IT analysts – both with financial conflicts of interest obstruct buyers from knowing this by offering simplistic platitudes related to “standards” and “core” or “non-core functionality.”

EnterpriseOne is also considerably less expensive in total cost of ownership than SAP ERP. Some of the reasons for this is that its infrastructure is more modern, and it is easier to integrate to Oracle JD Edwards EnterpriseOne than SAP ECC. However, Oracle follows an identical sales strategy to SAP, proposing that companies can if they wish to use what amounts to a bunch mediocre combination of functionality. If a company is intent on going with a tier 1 ERP system, the decision between SAP and Oracle is very simple – those companies wanting a lower TCO and faster implementation will want to go with JD Edwards Enterprise One.

The major consulting companies heavily parasitize both solutions, which means that generally, both applications tend to involve a major consulting company, increasing costs and reducing the likelihood of implementation success. It will also be a trying experience as the partner of the major consulting company will attempt to influence other IT decisions and purchase of the “customer.” This strategy is referred to as “penetrate and radiate,” that is to use any project to become a “trusted advisor” and to sell more services into the account.

However, with so many better options in the market than either SAP ECC or Oracle JD Edwards Enterprise One, it’s difficult to see how this strategy makes any sense anymore. This is explained in the book The Real Story Behind ERP: Separating Fact from Fiction. The TCO of using SAP and Oracle ‘s ERP as the centerpiece to the enterprise software strategy is shown in our Solution Architecture Packages, and the results would make a person logically question why anyone would follow this strategy.

MUFI Scores

All scores out of a possible 10.

Vendor and Application Risk

Oracle JD Edwards EnterpriseOne is on average the second longest to implement of all the ERP systems. As with SAP ECC, the flawed proposal regarding Oracle JD Edwards EnterpriseOne is that a company should implement the ERP application first and then it will be in a better position to implement other applications. Another argument that JD Edwards EnterpriseOne has financial functionality that is highly differentiated is also false, with best of breed applications like Intacct exceeding SAP ECC’s financial module.

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 JD Edwards EnterpriseOne is a risky implementation. It is problematic these implementations tend to have so much breadth. Another major problem is that the major consulting companies primarily implement Oracle JD Edwards EnterpriseOne – and they treat their tier 1 ERP projects as cash cows – actively extending the projects to maximize their billable hours. The tier 1 software vendors have done very little to make their software more implementable, and more usable.

The main objective should be to keep Oracle from “taking over the company,” and this is a challenge. SAP, like SAP and several other ERP vendors, uses ECC as a wedge to sell in what are often inappropriate applications to ERP customers using the faulty logic of integration costs savings (how faulty this logic actually is, is explained in our Solution Architecture Packages). This is a strategy based on leveraging previous investments to influence future investments and is about leveraging the buyer into bad decisions. The best way to get value from SAP ECC is by controlling its scope and by controlling SAP to prevent them from taking over the company’s IT spend.

Finished With Your Analysis?

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 EnterpriseOne.

Software Selection

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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.

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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