Oracle’s JD Edwards EnterpriseOne— the Low TCO, High ROI Option for Top Tier ERP

An Oracle Accelerate for Midsize Companies briefing Table of Content

3 Executive Summary 4 Total Cost of Ownership (TCO) Defined 5 Component of JD Edwards’ Low TCO 6 Committed to Flexibility and Ease of Use 10 Architected by Design for Choice and Integration 14 Addressing Industry Needs

2 Executive Summary JD Edwards has established and maintained a reputation for low TCO via three attributes: Since their beginning in 1977, Oracle’s JD Edwards enterprise applications have developed a loyal following . Flexibility and Ease of Ownership of customers in organizations of all sizes and industries. . Targeted Industry Focus As an integral component of Oracle’s overall enterprise . An Architecture Supporting Choice and Integration applications strategy, JD Edwards ERP—EnterpriseOne and World—remain viable and compelling options for The JD Edwards development and strategy teams midsize companies seeking a low TCO entry point into focus on: the entire family of Oracle application, middleware, and database products. . the general business requirements of growing Oracle offers multiple enterprise application suites, each midsize companies deploying Top Tier ERP for the with unique strengths and capabilities but built to a first time; and common development strategy across all products. This . industry requirements for companies in strategy is united in the goals of helping customers Manufacturing & Distribution, Consumer Goods, leverage Oracle’s extensive technology platform and Asset Intensive Industries, and Professional array of complementary applications. Services Midsize Companies considering Oracle enterprise This briefing describes the attributes and qualities of applications must decide which ERP suite best suits their JD Edwards ERP that make low TCO a reality for requirements. JD Edwards has long been known as an thousands of midsize companies spanning many appealing choice for midsize and larger companies that industries and geographies. are drawn to a low Total Cost of Ownership (TCO).

3 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Total Cost of Ownership (TCO) Defined COMPONENTS OF TECHNOLOGY TCO (partial list) Any discussion of Total Cost of Ownership (TCO) requires Initial Expenses— that first the term be defined by its components. In a practical sense, companies measure the TCO of a . Network hardware, , and setup technology choice in order to determine its affordability . Server hardware, software, and setup as well as to judge its cost and return relative to other choices. . Software implementation and training Does every company measure every technology . Applications integration initiative at the same level of detail? The answer is, . Software customizations “most likely not”. In reality, the way TCO is measured is . Legacy system migration expenses probably unique to each company.

In today’s business climate, product and service Ongoing Operational Expenses — innovation and process reengineering strategies rely heavily on IT enablement. Therefore, any true . IT staff comparison or evaluation of IT choices mandates also an . Risk Management (including backup and recovery) assessment of the value—Return on Investment (ROI)— of that choice. . Cost of downtime and system inefficiencies Ask ten IT professionals to identify the components of . Security technology TCO and you are likely to get ten different . Software and hardware maintenance and support lists. However, all will agree that TCO components . Integration maintenance include both tangible (“hard”) costs and intangible (“soft”) costs. . Ongoing 3rd party consulting services

4 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Component of JD Edwards’ Low TCO Shurgard Self Storage Europe Reduces IT Maintenance Over the last twenty years, many good enterprise Costs by 20% with Consolidated IT Infrastructure applications solutions have disappeared or faded into the background, victims of the “dot.com bubble burst”. Shurgard Self Storage Europe specializes in all aspects Of those vulnerable companies that survived, most were of the self-storage industry for private and commercial purchased by software consolidators interested more in users. maintenance and support revenue streams than in Shurgard Self Storage Europe continued product development and innovation. Brussels, Belgium Since being acquired by Oracle, JD Edwards customers www.shurgard.com Employees: 506 have benefited from multiple product releases, linkage to Oracle’s middleware and business intelligence infrastructure, and factory built integrations to industry “Oracle’s JD Edwards EnterpriseOne applications leading capabilities in other Oracle products. enabled us to consolidate financial management JD Edwards ERP is not designed to fit all the needs of activities in seven European countries onto a single every company. Instead, the development focus is on a platform. We now have a shared, global infrastructure, core set of ERP processes that fit general business needs which has helped us to reduce maintenance complexity and those that are common to a handful of industries. and costs by nearly 20%.” This keeps down the costs for customer to deploy, – Manuel Barreiro, Senior IS Project Manager maintain, patch, and manage the software.

5 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Committed to Flexibility and Easy of Use Oracle is committed to engineering solutions with open industry standards while also matching complementary BUILDING A PLATFORM FOR SUCCESS Oracle products into bundled offerings that present Low long term TCO starts with basic IT infrastructure compelling price and TCO scenarios for customers. Yet considerations. A typical midsize company operates with non-Oracle hardware and databases for JD Edward will a lean IT staff—often only 2-10 Full Time Equivalents remain viable options. Customers with IT resources trained (FTEs). They will likely rely heavily on external resources and accustomed to other vendor products can choose to while deploying applications and setting up the IT retain those strategies as another way of keeping or infrastructure, but will ultimately need to be self achieving optimal TCO. supportive. IMPLEMENTING FOR NOW WITH THE FUTURE IN MIND JD Edwards customers have the option to take advantage Long term costs associated with the ERP ownership of bundling and pricing incentives by selecting a experience are impacted heavily by the way solutions are complete top to bottom stack of Oracle hardware, initially deployed. database, middleware, and complementary applications. Customers focused on low TCO/high value alternatives During installation, anything that slows down or can select the JD Edwards EnterpriseOne complicates the implementation will increase initial costs Oracle Technology Foundation, a complete package of and most likely have an impact on long term expenses. A tools, middleware, and database. All components are successful deployment of the right solution choice is key to designed and tested with JD Edwards as well as being increasing the likelihood of low and maintainable long term priced much lower as a package than if purchased TCO. separately.

6 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Once the most favorable IT infrastructure in place, the ORACLE ACCELERATE SOLUTIONS focus turns to solution implementation. Five years ago, Often, Oracle partners take the next steps, creating Oracle Oracle launched Oracle Accelerate—Oracle’s approach to Accelerate Solutions. These solutions are reviewed by helping midsize companies deploy applications rapidly Oracle and represent the packaging of Business and at a low cost. This ongoing program standardizes Accelerators with implementation services and other rapid implementation best practices across the full range products and services such as engineered hardware of . configurations, financing, applications hosting, training, and A key component of Oracle Accelerate are Oracle partner-developed industry applications or extensions. Business Accelerators—optimized configuration tools The JD Edwards development team has invested in a that incorporate Oracle’s vast industry and region-specific strategy of continual evolution and optimization of the implementation experience while providing the flexibility rapid implementation tools made available to partners and to personalize the configuration according to a Oracle Consulting. One example is the recently released customer’s business requirements. next generation of Oracle Business Accelerators that Oracle Business Accelerators provide industry and region provide increased accounting setup personalization via the specific business flows and configuration content coupled Q&A component. Implementers leverage the intuitive Q&A with an online Q&A tool that captures a customer’s interface in personalizing the Chart of Accounts and specific requirements and personalizes the resulting corresponding accounting rules. In more closely address configuration. The configuration deployed to the JD customer accounting requirements, implementation costs Edwards EnterpriseOne instance is not locked in stone can be further reduced. and can be subsequently changed in any way necessary as the customer’s business changes.

7 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

STREAMLINING INSTALLATION with a variety of system administration activities. This Streamlined installers in the ERP industry have shown to includes additional implementation tasks and the significantly reduce implementation costs. To date, maintenance of multiple instances of JD Edwards Oracle has created rapid installers for standard and EnterpriseOne. virtualized instances of JD Edwards EnterpriseOne. TOP TIER ERP THAT IS EASY TO MAINTAIN For standard instances, Oracle has rapid installers Midsize customers should expect their chosen solution to available for the System I (Express Installation for IBM I) cover the vast majority of their business needs via and platforms. Also, there are plans for configuration. Avoiding customization requires deep and rapid installers to be built for additional platforms broad functionality within the core ERP systems. supported by JD Edwards EnterpriseOne, including Additionally, configuration mechanisms must be logical and Windows. intuitive to minimize the need for IT support. Oracle VM (Virtual Machine) templates for JD Edwards JD Edwards is enterprise-class software—all customers run EnterpriseOne are preconfigured, pretested templates of the same applications regardless of their size. Companies JD Edwards EnterpriseOne ERP, , and within JD Edwards industry focus areas—as well as those HTML servers. Implementation time is reduced from the requiring the full range of general business process days or even weeks needed for a traditional approach to capabilities—can be confident that the applications feature a matter of minutes. Once the virtual machines are the required functionality lacking in lower tier—Tier 2 or running, the implementation can be completed—adding Niche—solutions. Additionally, JD Edwards ERP features users, setting up security, and configuring applications. embedded tools for system-wide configuration and Additionally, Oracle’s JD Edwards has invested in creating development that are employed both when the software is a powerful collection of configuration tools that assist first implemented and for adjustments in support of ongoing process changes.

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Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Through the use of Processing Options, User Defined Start-up Firm eZono AG Builds a Strong Foundation Codes, Applications Versions, Automatic Programming with Enterprise Resource Planning System Interfaces (APIs), and System Constants end users can usually make changes without code modifications. This eZono AG, founded in 2004, is a pioneer in application- minimizes the IT resources needed to support interface specific ultrasound imaging devices. Its products and personalization and application customization. These applications enable clinicians of various medical components are maintained through standard lifecycle practices to diagnose and monitor medical conditions. management tasks so that configurations are sustained eZono AG throughout upgrade processes. Jena, Germany www.ezono.com Employees: 25

“Oracle’s JD Edwards EnterpriseOne and the Pyxis’ Accelerate solution for Medical Devices have given us a sound base for all future business process improvements. Our investors and business partners also highly approve of the implementation which is very important to us as a start-up company.” – André Jäkel, Chief Financial Officer

9 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Architected by Design for Choice and With its broad solution footprint and deep functionality for select industries and general business, JD Edwards ERP Integration typically provides capabilities that cover the vast majority Every midsize company seeks the optimal balance of of business process requirements. flexibility, functionality, and complexity when choosing to However, growing companies cannot foresee all possible deploy a comprehensive, integrated enterprise scenarios associated with expanding products and services applications solution and its associated IT infrastructure. or venturing into new global markets. Thus, when selecting For midsize companies, too much flexibility can lead to a an ERP solution, decision makers must consider how to confusing situation—where do we start? Likewise, a maintain low TCO in dealing with potential situations that limited footprint—low complexity—can mean require integrating to third-party applications or developing operational needs can’t be met. Oracle JD Edwards ERP extensions to core ERP processes. has a unique reputation for its ability to satisfy the needs Like all Oracle development and strategy groups, JD of a broad range of customers within a single application Edwards has dramatically moved to a Services Oriented suite. Architecture (SOA) approach. For example, with many EXTENSIBILITY AND INTEGRATION other ERP suites customers may need to use multiple tools for activities such as change management and security. This Midsize companies deploying a comprehensive, requires an investment of time, money, and resources in integrated ERP suite for the first time are typically developing IT staff skills across all toolsets or contracting motivated by the need to automate manual processes or with partners to perform the related activities. JD Edwards consolidate multiple operating entities into a common IT customers need only to learn one universal toolset for open platform. They justifiably expect to be able to accomplish cooperation with other applications outside the core ERP those goals within their core ERP system. suite whether integrating to 3rd party or other Oracle products.

10 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

When business requirements exceed capabilities within JD Edwards Architecture Provides Customers with a the core ERP suite, Oracle customers first look to Oracle’s Vendor-Agnostic Infrastructure and Flexible Extensibility portfolio of solutions since there are factory-built Framework integrations between JD Edwards and many of those products.

However, some companies may have a very unique business process that is a competitive differentiator which cannot be met by standard functionality but ideally needs to stay within core ERP processes or applications. When customers extend functionality within JD Edwards they are advised to follow a framework of processes and tools—outlined in the JD Edwards Extensibility Guide— that are automatically integrated to the Lifecycle Management tools. If these standards are adhered to, minimal effort is required to migrate and merge application extensions.

11 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

SUPPORTING SINGLE OR MULTIPLE INSTANCE Companies of all sizes deploy the same JD Edwards STRATEGIES application suites One of the desirable attributes of Top Tier solutions such III Servicios S.A. de C.V. Thiess as JD Edwards EnterpriseOne is the ability to deploy a Brisbane, Australia Mexico City, Mexico Engineering & single ERP instance that meets a company’s needs in all www.iiiservicios.com Construction www.thiess.com.au Revenue: $5.2 billion the global markets they serve. A single global instance is Revenue: $30 million USD USD a viable option for most JD Edwards customers. Oracle Employees: 350 Employees: 17,000 supports 22 languages and 33 localizations, with Hilltop Neszmély Zrt Premium Wine Brands additional support providing in some emerging markets Neszmély, Hungary Food & Beverage Adelaide, Australia www.hilltop.eu by Oracle Certified partners. www.pernod-ricard Revenue: <$20 -pacific.com million USDFood & Beverage Most Tier 2 and Niche vendors can’t offer that option Revenue: $10.06 billion Employees: 150 USD because they are unable to support as many currencies, DKG-EAST Zrt. Employees: 19,000 Nagykanizsa, languages, and localizations. Nor can they provide Nynas AB Hungary Oil & Gas around the clock technical support in as many countries www.dkgeast.hu Stockholm, Sweden as can Top Tier providers. Chances are, with a Tier 2 or Revenue: $35 www.nynas.com million USD Revenue: $2.6 billion Niche vendor, companies must make difficult decisions as Employees: 500 USD to how many instances they must deploy to cover all ABF Bearings IGEPA Group GmbH Roosendaal, permutations of currencies, countries, brands, and lines Wholesale & & CO. KG Nederland Distribution Hamburg, Germany of business. www.abfbearings.nl www.igepagroup.de Revenue: $10 million Revenue: 2.07 billion USD USD Employees: 30 Employees: 2,350

12 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

However, there are circumstances that warrant multiple instances and the ability to deploy them quickly and at a low TCO. Examples include Merger and Acquisition activity and expansion into emerging markets where margins are squeezed tight and perhaps the communications infrastructure may not be up to the standards of established markets. All JD Edwards customers, regardless of size, run the same application suite. Some chose to run a single global instance for worldwide operations while others deploy multiple instances when it’s makes sense. For example, low internet bandwidth and sporadic connectivity in remote locations or emerging economies may justify deploying a unique instance. Information can be pushed back to asynchronously to a main corporate instance when it’s possible and convenient. While not impossible, cost and complexity makes such an undertaking impractical for companies with limited resources that have chosen other Top Tier ERP solutions.

13 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Addressing Industry Needs—Balancing For JD Edwards, the industry focus is primarily in four Complexity and Focus areas— . Consumer Goods Every software provider has struggled with how to offer a comprehensive footprint with flexibility and robust . Manufacturing & Distribution extensibility while keeping TCO reasonable. . Asset Intensive Industries Oracle solves this dilemma via an industry-focused . Professional Services approach. With three comprehensive, scalable ERP suites, Oracle’s product development strategies can be Additionally, thousands of companies have deployed JD tailored to the industry strengths of each. This focus can Edwards EnterpriseOne or World as a general business ERP go even deeper into industry sub-segments by leveraging solution for their in-depth capabilities across standard the strengths of each product line. business processes such as Order to Cash and Supply Chain Management. JD Edwards’ development strategy is complementary to Oracle’s comprehensive industry focused approach which COMPREHENSIVE CAPABILITIES IN JUST THE RIGHT establishes Oracle as the enterprise software provider AMOUNT with the most extensive industry and sub segment The unique underlying architecture of JD Edwards software coverage. enables Oracle to provide just the right amount of ERP capabilities without overwhelming complexity.

14 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

When many ERP providers adopt an approach of “less functionality equals less complexity” when going down- Learn More about JD Edwards’ Industry-specific market to address the needs of midsize companies. Capabilities for: However, this approach often leads to scenarios where the “right stuff” is missing. Customers must augment  Asset Lifecycle Management functionality via customizations or by buying additional products, both of which raise TCO. Oracle’s JD Edwards  Food and Beverage Producers (Agriculture) Product Strategy has picked the “right stuff’ for emerging companies with general business needs and the focus  Manufacturing and Engineering industries. This covers the core General Business processes that just about all customers need to run.  Order Management Additionally, they take development focus deep into the industry requirements for a few select industries and  Project Management processes to be complementary with what’s available across Oracle’s three ERP suites.  Real Estate and Home Construction

 Supply Chain Planning

 Supply Chain Execution (Logistics)

 Supply Management (Procurement)

15 Components of JD Edwards’ Committed to Flexibility and Architected by Design for Choice and TCO Defined Addressing Industry Needs Low TCO Easy of Use Integration

Sunchang Corporation Improves Capacity Utilization Woodside Homes Continues to Benefit from Home of Wood Products Business Building Industry-Specific Enterprise Solutions Established in 1959, Sunchang Corporation Founded in 1977, Woodside Homes is part of manufactures plywood, fiberboard, and lumber for Woodside Group, Inc., one of the nation’s largest commercial and industrial purposes. privately held home building and construction enterprises. Sunchang Corporation Woodside Homes Inchon, Republic of Korea North Salt Lake, UT www.sunwood.co.kr www.woodside-homes.com Employees: 500 Employees: 250

“Measuring and tracking logistics can be difficult in “Oracle’s JD Edwards technology is a leader in the the wood products industry. We deployed Oracle’s homebuilding industry and continues to help us manage JD Edwards EnterpriseOne solution to better our business efficiently with industry-specific tools that manage the flow of information, products, and meet the unique needs of a homebuilder.” services throughout the organization. As a result, – Richard Leaf, IT Manager productivity has improved, data is of a higher quality, and we have a system that complies with IFRS.” – Lee Moon-Duk, Managing Director, Planning & Coordination

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