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Outline
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Is Market Consolidation Making You Rethink Your ERP Strategy?  Should You Be?
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Today’s Rapidly Changing ERP Environment
  • Despite vast changes in the market, businesses must continue without interruption


  • Acquisitions and consolidations have been a catalyst for companies to address existing business issues:


    • Increasing IT costs


    • Required upgrades for older versions or highly customized applications


    • Business needs have changed and current software does not support functional requirements


    • Concern that resources with specific skills will be required to run applications


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Determining Your Future Product Strategy
  • Is your application current?


  • What is your investment in your current applications and supporting technology?


  • Do you have special functionality needs?


  • What is your company’s philosophy in dealing with software applications?


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1. Staying Current
  • Oracle’s stated direction for additional software releases and support through 2013 will protect your current investment


  • Over time, to maintain support and ease the migration path, customers should migrate to current releases of their software


  • To reduce risk and IT costs, customers may look to third party providers to assume the application maintenance of their PeopleSoft and JD Edwards products
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2. Application Investments
  • Investment in your applications is more than license cost and maintenance charges:
    • Investments in applications are typically much higher than license and maintenance cost
    • Application choices can drive database and hardware investments
    • Applications are rarely implemented in a vacuum
      • Legacy system interfaces
      • Customized user interfaces
      • Business process designs supported by application functionality
      • Reporting
    • End-user skills and IT support skills may require substantial investment
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3. Industry Specific Functionalities
  • PeopleSoft and JD Edwards products have best-of-breed functionality for some industries and functional areas


  • Both Oracle and SAP have made tremendous strides to address industry-specific functionality


  • If your functional needs can only be supported by the PeopleSoft and JD Edwards products, stay the course for now


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4. Company’s Application Philosophy
  • Companies can be classified into three types related to application adoption:
    • Early Adopters embrace new application versions and work closely with the vendors to influence new functionality development
    • Other companies only want to implement stabilized application versions and rely on others to test the products
    • Laggards stay on their current releases for the maximum amount of time and only move forward if business drivers or product support require them to do so
  • Your philosophy on application adoption may determine how soon you may move to the Oracle Fusion products
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What are IBM Clients Doing?
  • Getting educated, understanding options, making a plan
    • Developing a short-term, mid-term roadmap and a strategy for the next 5 years


  • Organizations are considering transferring this responsibility to IBM or others


  • Clients aren’t making snap judgments



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How Is IBM Responding to the Changing Environment?
  • IBM integrated our PeopleSoft and Oracle practices into a single community
    • Over 5,100 Oracle and PeopleSoft consultants world-wide
    • IBM has the largest Combined Oracle practice in the world


  • IBM will continue to support PeopleSoft Enterprise and JDE EnterpriseOne users as long as there is market demand for services


  • As access to Fusion and the underlying technologies is made available, IBM will adapt our methodologies and industry solution sets for Fusion users


  • IBM will be a significant contributor to the development and roll-out of Fusion


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The Road Ahead
  • Stay current on releases to allow for longer product support – this expands your decision-making timeframe


  • Balance the risk you are willing to take against your current application investment


  • Be aware of the changes in the market and in your industry


  • Avoid using emotion to drive your future decisions


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Contact Info
  • Gretchen Kaufman
  • gretchen.kaufman@us.ibm.com
  • (818) 276-2095