Disadvantages of Moving to a New ERP System

Posted by Dave Balser

February 3, 2016 | 11:25 AM

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new_erp_disadvantages_.pngFor companies that are still running legacy versions of JD Edwards World (A7.3, A8.1, A9.1), there are three general upgrade options available:

Each of these options has their benefits and drawbacks depending on the needs and goals of the organization, but let’s take a look at the disadvantages of moving your JDE World system to a new ERP.

Time

The project starts far before the actual software implementation. Business requirements for the new system must be determined, possible vendors must be selected and evaluated, a software needs to be chosen, and a partner needs to be selected. Depending on the business requirements and those involved in the decision-making process, it could take years for the project to go from evaluation to implementation.

Once the implementation begins, the ERP replacement project becomes the top priority, disrupting the organization and causing delays in other projects. And, once the implementation is live, users and IT have to spend time learning the new technology.

Cost

Implementing an entirely new ERP system is the costliest of the above options, with Oracle estimating that a rip and replace can cost $15 million or more. While the initial cost is certainly substantial, it is not uncommon for companies to see a revenue drop when the system is deployed as the business and IT teams adjust to the new technology.

Changes to the ERP

As opposed to upgrading World or migrating to JD Edwards EnterpriseOne, implementing a new ERP will change everything within the ERP system. Not only does that mean learning how to operate a brand new system, but it means that existing third-party software may not integrate easily with the new ERP. Those integrations need to be built and tested for compatibility with the new ERP system. Additionally, master and transactional data will need to be converted to the new system.

After all of that work, there is no guarantee that the initial deployment of the new system will address all of the business requirements that it needs to in order to be successful.

We strongly urge companies that are running on World A7.3 and World A8.1 to look at the benefits of upgrading to JDE World A9.4 or migrating to EnterpriseOne 9.1 instead of moving to a new ERP system. Both options are viable, depending on the business needs, and the gains in technology and functionality can be stunning.

If you’re looking to update your JD Edwards World environment, click below or contact our JD Edwards team for more information.

10 tips jde upgrade

Topics: JD Edwards, JDE World

About Dave Balser

Dave Balser is the JD Edwards Delivery Director at Briteskies and has 15 years of experience implementing, upgrading, and managing JD Edwards World and EnterpriseOne systems. In addition to his enthusiasm for JD Edwards, Dave is equally committed to championing sustainability practices within Briteskies.

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