Download - Decide Now - JD Edwards Support Options
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EXCELLENCE IN GLOBAL SUPPORT AND CONSULTING
Your Future JD Edwards World StrategyOptions and Analysis for World A7.3 and A8.1 Users
January 16, 2013
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2Copyright © 2013 Spinnaker
Agenda
• Spinnaker Support Overview
• IT Strategy and Decision Making
• JD Edwards Support and Product Strategy
• Decisions Faced by JD Edwards World Customers
• Viable Options Review and Customer Examples
• Questions and Answers
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3Copyright © 2013 Spinnaker
SPINNAKER SUPPORT OVERVIEW
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4Copyright © 2013 Spinnaker
Spinnaker Support: At-a-Glance
• Long-Term Client Relationships• Stable & Expert Resources • Average 15+ Years Experience• Collaborative Approach• Proven Tools, Process and
Methodology• IP Policy & Process Adherence
Experience & Approach
Experience &
Approach
• Over 10 years in business• 160+ Clients Globally• 100% Customer References• 24x7x365 Support Availability• Global Presence - Offices in
Denver, London, Singapore• Customer Service Culture
Fast Facts
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5Copyright © 2013 Spinnaker
Mission and Values
To operate the most respected and talented Enterprise Application Services firm focused on
Support and Consulting, where our customers and employees are valued beyond comparison.
Mission
Values• Outstanding customer service and responsiveness• Best people providing best service• Creative solutions to difficult issues• Attention to detail• References from every customer• Honesty and integrity
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6Copyright © 2013 Spinnaker
Spinnaker Today
• Founded in 2002 by Rob Benson and Matt Stava
• Served hundreds of clients over the past decade
• 205+ resources across 3 continents
• Strong, stable business
• Growth and evolution spurred by client demand
Recent Rewards
Inc. Magazine – Inc. 500 List“Fastest Growing Private Companies”
list for multiple, consecutive years
UK Oracle User GroupPartner of the Year Award
Supply and Demand Chain Executive 100 Recognized by Supply &
Demand Executive Magazine
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7Copyright © 2013 Spinnaker
What We Provide
Maintenance• Replace Oracle Maintenance• Critical Software Bug Fixes• Regulatory Updates• Customization Support• Highly Responsive• Tracking and Management
Co-Sourcing• Application Managed Services
⁻ User Support⁻ Business Process⁻ Development⁻ Staff Backfill⁻ As Needed Support
• CNC Managed Services• Regulatory Compliance
Consulting• Implementation Services• Technology Services• Strategic Business Services• Supply Chain Services
Individually, the services are powerful solutions for software support needs. Combined, they help companies optimize highly-valued IT budgets
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Sample Spinnaker Support Customers
Consulting
Maintenance
Co-Sourcing
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Large Customer Examples
Customer Revenue Employees InstancesAbbot Labs $30.8B 90,000 24Abitibi Consolidated $5.3B 17,000 2Caterpillar $32B 104,000 1Dole Food Company $8.5B 49,000 21Goodrich $6.7B 25,000 6Merck $10B 90,000 55OshKosh Corp $9.8B 12,300 1
Universal Music $42.5B 104,000 46
Ethan Allan $.59B 4,800 3
“We understand complex JDE implementations”
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10Copyright © 2013 Spinnaker
IT STRATEGY AND DECISION MAKING
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11Copyright © 2013 Spinnaker
Decisiveness….“The willingness to make decisions, even in the face of complexity or uncertainty”
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12Copyright © 2013 Spinnaker
Decisiveness….“The willingness to make decisions, even in the face of complexity or uncertainty”
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13Copyright © 2013 Spinnaker
“A decision without the pressure of consequence is hardly a decision at all”
- Eric Langmuir
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14Copyright © 2013 Spinnaker
Changes in Computing Structure
1970's 1980's 1990's 2000's 2010's
Mainframe Computing
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15Copyright © 2013 Spinnaker
Changes in Computing Structure
1970's 1980's 1990's 2000's 2010's
Distributed Computing
Mainframe Computing
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16Copyright © 2013 Spinnaker
Changes in Computing Structure
1970's 1980's 1990's 2000's 2010's
Internet ComputingDistributed ComputingMainframe Computing
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Role of the IT Executive
1970's
1980's
1990's
2000's
2010's
Hardware and Communica-tionsERP and ApplicationsStrategic Business Solu-tions
CIO Role Created
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Role of the IT Executive
1970's
1980's
1990's
2000's
2010's
Hardware and Communica-tionsERP and ApplicationsStrategic Business Solu-tions
CIO Role Created
Move from “Hardware and
Networking”TO
“Driving Business Value through Technology”
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Who is driving your IT strategy?
• Your Business?
• You?
• Your Vendors?
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20Copyright © 2013 Spinnaker
Who is driving your IT strategy?
73% of upgrade decisions sited
end-of-support as a compelling
reason
Oracle User Group Survey by Unisphere Research, 2012
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21Copyright © 2013 Spinnaker
Your IT Strategy
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22Copyright © 2013 Spinnaker
Your IT Strategy
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23Copyright © 2013 Spinnaker
JD EDWARDS WORLD MAINTENANCE
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24Copyright © 2013 Spinnaker
Oracle Support Terms
• Premier Support• Extended Support• Sustaining Support
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JDE World Support End Dates
Version Oracle® World Extended Support End Dates
Oracle®/Vertex® PR TaxIntegration Support End
DateA7.3 December 2013 December 2013
A8.1 December 2013 December 2013
A9.1 April 2015 December 2013
A9.2 April 2017 December 2013
A9.2.1 May 2018 December 2013
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The Problem
• Version A7.3 and A8.1 move to Sustaining Support on 12/31/2013
• Sustaining Support – does not provide fundamental protections such as:– New bug fixes, updates, security alerts– Tax and regulatory updates– Upgrade scripts or certifications
• Many organizations have not have a defined strategy for how to deal with this problem
• Your business decision is being dictated by support policies rather than what’s best for your organization
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27Copyright © 2013 Spinnaker
QUESTIONS
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28Copyright © 2013 Spinnaker
THREE DECISION PATHS
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Decision Path 1
Ignore
• Lowest short term cost• Least disruptive• Not very strategic
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30Copyright © 2013 Spinnaker
Decision Path 1
Ignore
• Lowest short term cost• Least disruptive• Not very strategic
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31Copyright © 2013 Spinnaker
Decision Path 1
“Decision making is the specific executive task”
- Peter F. Drucker
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32Copyright © 2013 Spinnaker
Decision Path 2
Wait and See What Happens– Will Oracle extend support dates?– Can I upgrade in time before end of support?– I’m about to retire, this is someone else’s problem
Is this a decision? Not Really…..
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Decision Path 3
Decide Now
• Review business and cost structures• Prepare a pathway to meet your objectives• Decide and plan for your strategic direction
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34Copyright © 2013 Spinnaker
Decision Path 3
Upgrade Short Term
Longer Term
Migrate to New ERP
Short Term
Long Term
Stay on Current Version
Sustaining Support
3rd Party Maintenance
Self Support
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35Copyright © 2013 Spinnaker
Decision Path 3
Upgrade Short Term
Longer Term
Migrate to New ERP
Short Term
Long Term
Stay on Current Version
Sustaining Support
3rd Party Maintenance
Self Support
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36Copyright © 2013 Spinnaker
Decision Path 3
Upgrade Short Term
Longer Term
Migrate to New ERP
Short Term
Long Term
Stay on Current Version
Sustaining Support
3rd Party Maintenance
Self Support
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37Copyright © 2013 Spinnaker
Decision Path 3
Upgrade Short Term
Longer Term
Migrate to New ERP
Short Term
Long Term
Stay on Current Version
Sustaining Support
3rd Party Maintenance
Self Support
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38Copyright © 2013 Spinnaker
Decision Path 3
Upgrade Short Term
Longer Term
Migrate to New ERP
Short Term
Long Term
Stay on Current Version
Sustaining Support
3rd Party Maintenance
Self Support
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39Copyright © 2013 Spinnaker
Decision Path 3
Upgrade Short Term
Longer Term
Migrate to New ERP
Short Term
Long Term
Stay on Current Version
Sustaining Support
3rd Party Maintenance
Self Support
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40Copyright © 2013 Spinnaker
Option Analysis
1. Upgrade to A9.32. Migrate to new ERP platform3. Stay on Current Version
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UPGRADE TO A9.3
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Option: Upgrade to A9.3
• Upgrade Costs– Assessment– Implementation– Testing– Training
• Change Management
• Operational Support
• On-going Maintenance
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Option: Upgrade to A9.3
Oracle User Group Survey by Unisphere Research, 2012
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Your Options: Upgrade to A9.3
69%
Oracle User Group Survey by Unisphere Research, 2012
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Option: Upgrade to A9.3
• Take advantage of new features and technology (Over 1400 changes between A7.3 and A9.2)
• Significantly expanded functionality
• Much improved tools
• Greatly enhanced usability
• Required for Vertex Payroll support
However….. Will these things drive value for YOUR business?
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MIGRATE TO NEW ERP
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Option: ERP Platform Migration
Very few top-tier alternatives:
Solution Tier Vendors Market Share
1 Oracle/SAP 37%
2 Infor, Microsoft, Sage, Lawson 17%
3 Specialized, Vertical 46%
Gartner Market Share Analysis, 2010
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Option: ERP Platform Migration
• Upgrade Costs– Assessment– Implementation– Testing– Training
• Change Management
• Operational Support
• On-going Maintenance
• Software Licensing Costs
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STAY ON CURRENT VERSION
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Option: Sustaining Support
• Continue to pay full maintenance amount for minimal value
• New bug fixes are not provided
• No Tax and regulatory updates for your version
• Preserve ability to receive future versions of the software
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Option: Self Support
• Greatest savings, eliminate maintenance payment
• All regulatory updates provided by your staff
• Must have the programming expertise to fix bugs in the systems– Core Code– Customizations
• Immediate help may not be available in a “system down” emergency
• Greatest risk, but may be an option
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Option: Third-Party Maintenance
• Extend the life of your current ERP solution
• Deliver of premium support on your current version– 24/7 support, which includes immediate response times– Bug fixes– Tax and regulatory updates– Deep understanding of your unique environment– Online, interactive troubleshooting– Customizations analysis– Proactive routine phone calls– A Support Partner Not a Vendor
• Savings of 50% of current maintenance spend
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Option: Third-Party Maintenance
JD Edwards Version A8.1 Vendor (Oracle) Model 2013 2014 2015 2016 2017 2018 2019
Annual Maintenance $ 72,000 $ 76,320 $ 80,899 $ 85,753 $ 90,898 $ 96,352 $ 102,133 Vendor Extended Support Uplift1 $ 9,090 $ 19,270 $ 19,270 Staff time researching issues $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 $ 18,000 Upgrade to Maintain Support2 $ 300,000 $ 300,000 Annual Spend $ 390,000 $ 94,320 $ 98,899 $103,753 $ 117,988 $ 133,623 $ 439,404 $1,377,987 1 Assumming 10% first year and 20% for next two years
2 Estimated upgrade cost
Spinnaker Support Model 2013 2014 2015 2016 2017 2018 2019 Annual Maintenance $ 36,247 $ 38,422 $ 40,727 $ 43,171 $ 45,761 $ 48,507 $ 51,417 Vendor Extended Support Uplift n/a n/a n/a n/a n/a n/a n/a Staff time researing issues n/a n/a n/a n/a n/a Upgrade to Maintain Support n/a n/a n/a n/a n/a n/a n/a
Annual Spend $ 36,247 $ 38,422 $ 40,727 $ 43,171 $ 45,761 $ 48,507 $ 51,417 $ 304,251 Three Year Savings: $467,823 7 Year SAVINGS
using Spinnaker $1,073,736
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54Copyright © 2013 Spinnaker
Option: Third-Party Maintenance
“When faced with critical ERP lifecycle decisions, such as whether to upgrade or replace a solution, third-party maintenance may be the answer that best meets the needs of the business.”
- Aberdeen Group
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Option Analysis
• Evaluate all options – What is the best approach for your business?
• Gain organizational alignment for your direction
• Design and implement a strategy to delivering business value
• Establish estimates for each option and the value they delivery
• Solicit input from your peers in similar environments
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56Copyright © 2013 Spinnaker
Option Analysis
“To drive effective business value you must be leading your strategy by thoughtful
analysis of all variables”
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Customer Examples
• Upgrade (following the roadmap) – Consulting Services– 20th Century Fox– Lucelec– Seneca
• Migrate to new ERP Path – Co-Sourcing & Maintenance Services– Animal Health– Merck– Bosch
• Stay on Current Version – Third Party Maintenance– Viacom– CE Franklin– Apria Healthcare
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Summary
• Following the path of least resistance it not driving a strategy
• Decide early – it will result in more savings
• Drive your strategy by involving business leaders, both short-term and long-term
• Review the successes and failures from similar customers
• Technology will change, leaders must adapt or they will be changed
• Without a crystal ball, decisions are difficult
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59Copyright © 2013 Spinnaker
QUESTIONS
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60Copyright © 2013 Spinnaker
Contact Information
Eric Osterloh Vice President Sales – Western Region
www.spinnakersupport.com