JD Edwards World is one of the most stable and robust ERP systems available and has been implemented in thousands of organizations around the world. In many cases, however, the legacy World software is years or even decades old and can no longer easily support the evolving needs of the business. Many business owners will see this as an opportunity to implement an entirely new ERP system as opposed to upgrading World.
We have been singing World’s praises for years and have talked about reasons to love it as well as the functional reasons to upgrade your legacy World system. But there is one comparison that business owners want to hear above all others: cost. Let's take a look at average costs for implementing a new ERP system versus upgrading an existing JD Edwards World system.
New ERP Implementation
The cost of implementing a new ERP system has a wide range and depends on a number of variables among the software, services, and hardware. Greg Kaupp at the ERP SoftwareBlog provides a great breakdown, however, in this blog post.
One of the most crucial variables when implementing a new ERP system is the type of company and the number of users. As Kaupp estimates in his blog, a manufacturing or more complex distribution company can expect to pay around $4,000 per user for a new system. The industry, size of the company, and level of access required by the user would affect this price tag as well.
Kaupp states that an average, mid-sized company can expect to pay upwards of $750,000 for the software alone. Other aspects that would add to the baseline cost of an ERP implementation include customizations, third-party add-ons, and team training for the new system as well as hardware and other services.
While the overall cost for your organization will depend on these variables and more factors, you can be sure that it will be a significant investment regardless, with Oracle estimating a rip and replace price tag to be $15 million or more.
JD Edwards World Upgrade Options
Upgrading World within the JD Edwards realm is a significantly less expensive option. Often times, the only costs for the project are for services, with software updates at no cost and hardware updates unnecessary.
A World upgrade to EnterpriseOne provides all of the benefits of a reimplementation without the high price tag. Without many of the complex changes of a new implementation, costs are generally things like limited system reimplementation and business process discovery and design.
Even with these services, Oracle estimates that upgrading from JD Edwards World to EnterpriseOne comes in under $1 million.
A World-to-World upgrade is the easiest and least expensive option. The first thing to consider is that upgrading the World software is completely free in and of itself. Training is often minimal and, therefore, less expensive, and there is a good chance that most customizations can be reduced or eliminated.
Expenses start to come in during a limited system reimplementation and during testing. Even with these aspects, Oracle estimates that an all-in, World-to-World upgrade would cost $600,000.
The cost of any upgrade or reimplementation project will depend on the requirements of the organization, so these estimates may or may not apply directly to your organization. However, it is undeniable that moving from World to EnterpriseOne or simply upgrading World is the most economical option in this situation.