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.
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.
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.
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