New Functionality, New Opportunities

NEW FUNCTIONALITY,
NEW OPPORTUNITIES
2012 QUEST INTERNATIONAL USERS GROUP SURVEY ON

ENTERPRISE APPLICATION/ERP SUITE UPGRADE STRATEGIES
By Joseph McKendrick, Research Analyst
Produced by Unisphere Research, a Division of Information Today, Inc.
March 2012
Sponsored by Produced by
Thomas J. Wilson, President

2
TABLE OF CONTENTS
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Enterprise Application/ERP Environments and Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Enterprise/ERP Suite Upgrade Issues and Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Enterprise/ERP Suite Upgrade Nuts and Bolts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
New Functionality, New Opportunities: 2012 Quest International Users Group Survey on Enterprise Application/ERP Suite Upgrade Strategies was produced by Unisphere
Research and sponsored by Oracle. Unisphere Research is the market research unit of Unisphere Media, a division of Information Today, Inc., publishers of Database Trends and Applications
magazine and the 5 Minute Briefing newsletters. To review abstracts of our past reports, visit www.dbta.com/About_Us#Unisphere. Unisphere Media, 630 Central Avenue, Murray Hill,
New Providence, NJ 07974; 908-795-3701, Email: Tom@dbta.com, Web: www.dbta.com.
Data collection and analysis performed with SurveyMethods.
3
EXECUTIVE SUMMARY business analysts. One-tenth come from the business side, either
as C-level executives or line-of-business managers and
Companies need greater technology capabilities and agility professionals.
to compete in today’s highly competitive global economy, and A number of large organizations are represented in the survey,
are looking to boost the power and scope of their enterprise with 31% of respondents reporting annual company revenues
application suites (often referred to as enterprise resource exceeding $1 billion a year. Likewise, close to one-quarter come
planning or ERP systems). While enterprise/ERP systems are from very large organizations with more than 10,000 employees.
complex, with many moving parts, a new survey of enterprise A sizable contingent of small-to-medium-size businesses is also
application managers finds that the vast majority of ERP upgrade represented in the survey. In terms of industry groups, the
efforts tend to be short in duration, fall within reasonable largest segments seen in this survey are government agencies,
budgets, and rarely disrupt the business at large. manufacturing, and financial services. (See Figures 30-35 at the
In addition, contrary to perceptions, many ERP upgrades end of this report for detailed demographic information.)
benefit the entire business, not just IT departments. Once properly
executed, initiatives to improve and update ERP systems can be The survey uncovered the following findings:
far-reaching, providing enterprises with improved productivity,
greater streamlining, and more robust capabilities for reaching ■ There is a lot of upgrade activity across the PeopleSoft and
out and serving new markets and constituencies. JD Edwards customers. Close to half of respondents are either
To keep and build a competitive edge, businesses rely on in the process of upgrading or have just upgraded their
systems such as Oracle’s PeopleSoft or JD Edwards to manage PeopleSoft and JD Edwards suites, and one-third plan to
and provide information on key processes, from financials to upgrade within the next two years. A majority of enterprise/
procurement to human resources. How do companies go about ERP suite upgrades are intended to update specific functions
upgrading these systems? Who takes charge? How much does an or technology, while close to one out of 10 also target
upgrade process cost? These are the questions addressed in a transformation of business processes across the enterprise.
new survey of 308 enterprise application and business managers, Respondents anticipate greater access to new functionality,
conducted among members of the Quest International Users improved performance and improved user productivity as a
Group. The survey was fielded by Unisphere Research, a division result of their upgrade projects.
of Information Today, Inc., in partnership with Oracle
Corporation in November 2011. ■ Typically, upgrades of PeopleSoft and JD Edwards are of short
Almost half of the survey respondents have already upgraded duration and non-invasive to the business at large. For the
to the latest available versions of PeopleSoft and JD Edwards majority of respondents, disruptions to their businesses were
enterprise application suites. About 28% of respondents have minimal; more than two-thirds say they experienced five or
made the move to the latest available version (Release 9.1) fewer days of disruption or downtime.
of PeopleSoft, and 19% have made the move to the latest
JD Edwards EnterpriseOne offering (Release 9.0). The most ■ Financials, procurement and human capital management
common enterprise systems used outside of the Oracle applications are typically targeted for upgrade among
ecosphere include custom-developed software (12%). PeopleSoft and JD Edwards users. Most upgrades are either
Respondents to the survey have a variety of job roles both overseen by the top financial or IT executives.
within IT and business, and represent a wide range of
organization types and sizes. The largest segment, 23% are On the following pages are detailed survey results, tracking
directors or managers of development and integration. Another enterprise application suite upgrade activity at respondents’
15% are project managers, and 15% are enterprise architects or businesses.
4
ENTERPRISE APPLICATION/ERP ENVIRONMENTS AND UPGRADES
There is a lot of upgrade activity across the PeopleSoft and JD Edwards customers. Close to half of respondents are either in the
process of upgrading or have just upgraded their PeopleSoft and JD Edwards suites, and one-third plan to upgrade within the next
two years. A majority of enterprise/ERP suite upgrades are intended to update specific functions or technology, while close to one
out of 10 also target transformation of business processes across the enterprise. Respondents anticipate greater access to new
functionality, improved performance and improved user productivity as a result of their upgrade projects.
While upgrade plans are variable, there are a number of responsibilities for the various upgrade types also tend to be
organizations making plans to have the latest versions of spread across corporate leadership. For example, CIOs play a
PeopleSoft or JD Edwards in sooner than later. Forty-seven leading role in the higher-level transformational upgrades, with
percent, in fact, are either already in the process of upgrading, 33% overseeing transformational efforts, versus 28% of CFOs
or have already made the move to update their enterprise and COOs combined. In addition, CIOs tend to take a greater
application suites. Another 33% intend to move to the latest leadership role in functional (32%) and technical (26%)
release of their enterprise/ERP suite within the next two years. upgrades. (Throughout this report, the “functional” category
Only 19% either have no plans or don’t know what their will include both functional and functional-plus type upgrades.)
organizations’ plans are. (See Figure 1) (See Figure 3.)
How extensive are the ERP upgrades that respondents are As will be shown throughout this report, there are major
performing, or have recently completed? The survey identified distinctions in the motivations and implementation practices
four predominant or primary approaches respondents are taking between those seeking to transform parts of the business, versus
in the move to the latest releases of PeopleSoft or JD Edwards. those engaging in functional or strictly technology upgrades.
A less invasive approach, employed by 23% of the sites in the Those respondents engaged in transformational upgrades
survey, is referred to as a technical upgrade, where the underlying demonstrate a heightened sense of urgency in achieving greater
technology is upgraded but little or no new functionality is scalability and standardization of business processes across the
adopted. For example, for PeopleSoft sites this may involve only enterprise. In addition, these high-end upgrades typically require
a PeopleTools upgrade. The next level,42%, is what’s considered greater organizational time and resources to accomplish.
a functional upgrade or a more incremental approach, where What benefits do respondents anticipate as a result of their
customers adopt new functionality and upgrade existing PeopleSoft, JD Edwards, or other ERP suite upgrade? Access to
capabilities with enhanced features. Another 17% are referred new functionality and improved performance top the list, cited
to as functional upgrade-plus, where new modules are by close to two-thirds (65%). Another 47% are anticipating
implemented in addition to the adoption of new and/or improved performance, and third on the list is user productivity,
enhanced functionality. A less invasive approach, employed by cited by 44%. (See Figure 4.)
23% of the sites in the survey, is referred to as a technical Broader transformational upgrade tend to emphasize
upgrade, where the underlying technology is upgraded but little enterprise scale. Those respondents engaged in more business-
or no new functionality is adopted. For example, for PeopleSoft focused transformational upgrades are much more likely
sites this may involve only a PeopleTools upgrade. Finally, there than those overseeing operational upgrades to be seeking
is a smaller segment, 8% of respondents that are engaged in standardization of their business processes enterprise-wide
higher-level transformational efforts triggered by their ERP from their upgrade effort (61% of transformational efforts
upgrades. In these scenarios, companies look to their enterprise versus 23% of functional upgrades and 15% of more limited
systems to change the way they work and how their business technical upgrades). Greater scalability is also a benefit more
processes are handled. Reliance on these enterprise systems to likely to be sought by those overseeing enterprise transformation
shape performance and future opportunities points to their role (39% versus 22% of functional, and 24% of technical upgrades).
as the backbone of many organizations. (See Figure 2.) (See Figure 5.)
While executive leadership varies across these different As enterprises move to upgrade their enterprise/ERP suite, do
upgrade paths, chief information officers were most likely any view the process as an opportunity to view cloud or hosted
to lead all major types of ERP upgrade efforts. However, solutions? The majority, 77% say they are currently on-premise
▼
5
and are planning to stay on-premise. Another 10% are hosted, Once properly executed, initiatives to improve and update ERP
with another 5% planning to move to a hosted or subscription- systems are far-reaching, providing enterprises with improved
based SaaS environment. (See Figure 6.) productivity, greater streamlining, and more robust capabilities
Interestingly, the largest organizations in the survey (with for reaching out and serving new markets and constituencies.
5,000 or more employees) are the most inclined to be considering Most upgrade efforts are initially triggered by a need to keep
or using hosted and cloud-based solutions (cited by a combined current with supported versions of software, as cited by 82% of
total of 9%). Typically, hosted or subscription-based SaaS respondents. Another 57% sought the greater functionality that
environments are attractive to smaller firms with minimal IT the new releases offer, and 31% were anxious to adopt the next
infrastructures. (See Figure 7.) generation of technology for their systems. (See Figure 9.)
Most organizations do not upgrade their enterprise/ERP suite Respondents with functional or technical upgrades seek
on a regular schedule. While there is a relatively small segment greater functionality, fueled by a desire to move to the next
that make sure they regularly upgrade every couple of years generation of solutions. Those overseeing more transformational
(8%), a majority of respondents indicate that the frequency of projects see the upgrade as an opportunity to minimize or
enterprise/ERP suite upgrades depends on a number of variables. remove customizations, increase user productivity and improve
(See Figure 8.) reporting and visibility. (See Figure 10.)
Figure 1: Current Enterprise Application/ERP Suite Upgrade Plans
Planning to upgrade within Don't know/unsure/other 12%

the next 24 months 33%
No plans to upgrade 7%
Have upgraded or in
process of upgrade 47%
(Total does not equal 100% due to rounding.)
6
Figure 2: Scope of Enterprise Application/ERP Suite Upgrades

(Among companies conducting or planning upgrades.)
Technology only (e.g., for PeopleSoft, a 23%

PeopleTools upgrade only, for E-Business
Suite, no adoption of new functionality, etc.)
Functional upgrade—upgraded existing 42%
ERP footprint with adoption of new functionality
Functional upgrade-plus—upgraded 17%
existing ERP footprint, plus implemented
additional modules (transformed select
business processes)
Transformational—upgrade was 8%
transformational project across the enterprise
Don't know/unsure 3%
Other 7%
0 20 40 60 80 100
Figure 3: Who’s in Charge of Enterprise/ERP Suite Upgrade

—By Scope of Upgrade
Transformational Functional Technical
CIO 33% 32% 26%
COO 11% 4% 4%
CFO 17% 29% 24%
LOB Executive 11% 18% 22%
Other 28% 17% 24%

(Totals may not equal 100% due to rounding.)
7
Figure 4: Anticipated Benefits of Enterprise/ERP Suite Upgrade

Access to new functionality 65%
Improved performance 47%
Improved user productivity 44%
Continued alignment with latest Oracle 41%

technologies
Standardization of business processes 25%

enterprise-wide
Better scalability 24%
Reduction in IT operational costs 21%
Adoption of industry standard technology/ 20%

open standards
Increased accuracy of corp. data 13%
Tighter integration 13%
Competitive advantage 6%
Other 14%
(Multiple responses permitted.)

0 20 40 60 80 100
8
Figure 5: Anticipated Benefits of Enterprise/ERP Suite Upgrade

Access to new functionality 50% 71% 56%
Improved performance 33% 50% 48%
Improved user productivity 39% 53% 24%
Continued alignment with latest Oracle technologies 28% 45% 46%
Adoption of industry standard technology/ 17% 19% 22%

open standards
Better scalability 39% 22% 24%
Reduction in IT operational costs 22% 19% 24%
Increased accuracy of corporate data 22% 14% 7%
Standardization of business processes enterprise-wide 61% 23% 15%
Competitive advantage 17% 5% 4%
Tighter integration 33% 11% 13%

9
Figure 6: Consider Changing Deployment Strategy

as Part of ERP Upgrade?
No, currently on-premise and planning 77%

to stay on-premise
No, currently hosted and planning 10%

to stay hosted
Yes, moving to a hosted environment 4%

(retaining license)
Yes, moving to a SaaS environment 1%

(subscription-based)
Other 7%
(Total does not equal 100% due to rounding.) 0 20 40 60 80 100
10
Figure 7: Consider Changing Deployment Strategy?

—By Company Size
Small business Medium business Large business
<1,000 employees 1,001–5,000 employees >5,000 employees
No, currently on-premise and planning 76% 85% 71%

to stay on-premise
No, currently hosted and planning to stay hosted 12% 3% 15%
Yes, moving to a hosted environment 4% 2% 7%

(retaining license)
Yes, moving to a SaaS environment 0% 1% 2%

(subscription-based)
Other 9% 8% 5%
Figure 8: Frequency of Enterprise/ERP Suite Upgrades

Always stay current with the latest release 8%

(upgrade every couple of years)
Every other release (upgrade every 21%

2 to 4 years)
Upgrade approximately once every 5 years 10%
Varies (depending on the release, 57%

IT priorities, budget, etc.)
Other 4%

0 20 40 60 80 100
11
Figure 9: Compelling Reasons for Enterprise/ERP Suite Upgrade

End of support 82%

Better functionality 57%
Adopt next generation technology 31%
Increase user productivity 28%
Modernization 24%
Minimize/remove customizations 23%
Improved reporting and visibility 17%
Expected future growth 14%
Consolidate/eliminate instances 13%
of legacy systems
Legal and regulatory compliance 11%
Prepare for Fusion applications 10%
Reduce costs 9%
Greater industry capabilities 6%
Organizational growth 6%
Change in management 5%
LOB requirements/demands 3%
Implement/move to a shared service center 2%
Competitive pressure 2%
Other 3%
(Multiple responses permitted.) 0 20 40 60 80 100
12
Figure 10: Compelling Reasons for Enterprise/ERP Suite Upgrade

End of support 72% 83% 81%
Better functionality 39% 63% 52%
Adopt next generation technology 28% 32% 33%
Increase user productivity 33% 32% 20%
Minimize/remove customizations 44% 21% 20%
Modernization 22% 25% 20%
Prepare for Fusion applications 6% 12% 11%
Expected future growth 22% 14% 9%
Consolidate/eliminate instances or legacy systems 28% 12% 7%
Improved reporting and visibility 33% 19% 7%
Greater industry capabilities 0% 6% 6%
Organizational growth 11% 5% 6%
Legal and regulatory compliance 11% 9% 17%
Reduce costs 11% 7% 13%
Implement/Move to a shared service center 11% 2% 0%
LOB requirements/demands 11% 4% 2%
Change in management 11% 4% 4%
Competitive pressure 6% 1% 4%
13
ENTERPRISE APPLICATION/ERP UPGRADE ISSUES AND RISKS
Typically, upgrades of PeopleSoft and JD Edwards systems are of short duration and non-invasive to the business at large.
For the majority of respondents, disruptions to their businesses were minimal; more than two-thirds say they experienced five
or fewer days of disruption or downtime.
The survey finds most upgrades take up between 6 and 12 more than 15 days (6% of respondents with transformational
months, as cited by 46% of respondents. Another one-fourth upgrades, versus 1% of functional and 2% of technical
of respondents have completed their projects in less than six upgrades). (See Figure 16.)
months’ time. Close to one-fourth even report upgrades within What were the costs of these upgrade projects? Over a third
six months, mostly within a three-to-six-month timeframe. In of the respondents could not put a price tag on their recent
all cases, these were all more limited upgrades (functional and upgrade projects. For a large segment of respondents, ERP
technical). (See Figure 11.) upgrades accounted for relatively small part of IT budgets—
Overall, transformational ERP upgrades—which involved more 28% report the cost amounted to less than $250,000. At the high
substantial changes to business processes—took longer, the survey end of the scale, another 15% report costs exceeding $1 million.
shows. A majority, 59% of the transformation-level upgrade (See Figure 17.)
efforts, take more than 15 months to implement, compared to There is greater awareness of the dollar costs of enterprise/
only 8% of the functional upgrades and 7% of technical upgrades. ERP upgrades that are more limited in nature, versus the
By contrast, a majority of functional and technical upgrades are more expansive transformational efforts. Two-thirds of the
completed in six to nine months. (See Figure 12.) respondents overseeing more limited technical upgrades were
What are (or were) the top risks identified for ERP upgrade aware of the costs, versus 50% of those involved in enterprise
projects? Among the three top risks cited by respondents, close transformational upgrades. Overall, the reported costs of
to two-thirds say a shortage of skills or staff, another 62% are transformational upgrades are much higher—close to half,
concerned with maintaining customizations, and 60% cite risks 44%, of respondents engaged in high-level upgrades report
during the testing process. (See Figure 13.) costs exceeding $1 million, versus only 11% of those overseeing
Testing appears to be a difficult area for many respondents either functional or technical upgrades. Most sites with
in their PeopleSoft, JD Edwards or other enterprise/ERP upgrade functional or technical upgrades report costs typically do
processes. Testing issues lead the list of challenges, cited by not exceed $500,000. (See Figure 18.)
more than half (56%). Just under a third, 32% say they have While it may be assumed that larger firms encounter higher
encountered integration issues. (See Figure 14.) costs for enterprise upgrades, the survey finds that isn’t
Close to half of respondents, 49% report some degree of necessarily the case with PeopleSoft and JD Edwards upgrades.
disruption to their businesses during the upgrade process. In While 29% of respondents in companies with 5,000 or more
most cases, the disruption lasted 1 to 5 days. (See Figure 15.) employees report costs exceeding $500,000, this trails the
Interestingly, respondents undergoing a more extensive upgrade numbers for medium-size businesses (36%). Not surprisingly,
process involving business transformation were only somewhat however, only 10% of the smallest firms saw such costs.
more likely to report an extended period of disruption lasting (See Figure 19.)
14
Figure 11: Length of Enterprise/ERP Suite Upgrade Timeline

Less than 3 months 3%
3 to 6 months 21%
6 to 9 months 24%
9 to 12 months 22%
12 to 15 months 11%
More than 15 months 13%

0 20 40 60 80 100
Figure 12: Length of Enterprise/ERP Suite Implementation

Less than 3 months 0% 2% 4%
3 to 6 months 0% 24% 24%
6 to 9 months 12% 25% 28%
9 to 12 months 18% 21% 28%
12 to 15 months 0% 14% 7%
More than 15 months 59% 8% 7%
Don't know/unsure 12% 5% 2%

15
Figure 13: Top Enterprise/ERP Suite Upgrade Project Risks
Limited staff 63%
Maintaining customizations 62%
Testing 60%
Overall downtime/disruption 41%
End user adoption 36%
Business processes damaged/altered 27%
Executive sponsorship 21%
Increase in costs related to additional 19%

hardware required
Data being damaged/altered 10%
Increase in processing costs 5%
Missed product launches/slower time 5%

to market
Rise in training costs 5%
Other 8%
16
Figure 14: Issues Encountered During Enterprise/ERP Suite Upgrade

Testing issues 56%
Integration issues 32%
Patch inconsistency 20%
User acceptance 20%
Business buy-in 14%
Hosting issues 4%
Other 14%
17
Figure 15: Length of Disruptions to the Business During

Enterprise/ERP Suite Upgrade Process
No downtime or disruption 23%
At least 24 hours of downtime or disruption 21%
1 to 5 days of downtime/disruption 24%
More than a month of downtime/disruption 1%
Other 9%
0 20 40 60 80 100
18
Figure 16: Length of Disruptions to Business—By Scope of Upgrade

No downtime or disruption 0% 28% 15%
At least 24 hours of downtime or disruption 28% 16% 40%
1 to 5 days of downtime/disruption 11% 25% 25%
6 to 14 days of downtime/disruption 0% 1% 8%
15 or more days of downtime/disruption 6% 0% 0%
More than a month of disruption 0% 1% 2%
Other 17% 8% 0%
Figure 17: Total Cost of Enterprise/ERP Suite Upgrade

<$100,000 18%
$100,000 to $250,000 10%
$250,000 to $500,000 9%
$500,000 to $750,000 3%
$750,000 to $1 million 6%
>$1 million 15%
19

<$100,000 0% 20% 19%
$100,000 to $250,000 6% 11% 11%
$250,000 to $500,000 0% 11% 9%
$500,000 to $750,000 0% 4% 4%
$750,000 to $1 million 0% 6% 13%
>$1 million 44% 11% 11%


—By Company Size
<$100,000 29% 15% 10%
$100,000 to $250,000 22% 9% 1%
$250,000 to $500,000 6% 9% 12%
$500,000 to $750,000 3% 4% 4%
$750,000 to $1 million 3% 12% 4%
>$1 million 4% 20% 21%

20
ENTERPRISE/ERP SUITE UPGRADE NUTS AND BOLTS
Financials, procurement and human capital management applications are typically targeted for upgrade among PeopleSoft
and JD Edwards users. Most upgrades are either overseen by the top financial or IT executives.
ERP upgrades are more than simply leveraging new functions procurement functionality (65%), and a majority also include
or components. An aggregate total of 28% of respondents report human capital management (56%). Supply chain management
implementing additional modules within their ERP footprint at is included by 42% of respondents. (See Figure 22.) In most
the time of the upgrade. (Respondents could select more than cases, a mix of external staff and outside consultants play a role
one option; percentage shown is based on respondents selecting in major enterprise/ERP suite upgrades. (See Figure 23.)
a minimum of one or more choices.) Of those that did add It’s often a toss-up as to who makes the ultimate decision on
additional modules, most report adding modules for human whether to upgrade—finance or IT. Respondents are divided
capital management. (See Figure 20.) about whether it is the CIO or the CFO who makes the final call.
Were there additional modules implemented outside of About a third report CIOs are the primary decision makers, and
their enterprise/ERP suite footprint at the time of upgrade? a similar number indicate it's up to the CFO. (See Figure 24.)
An aggregate total of 32% of respondents report implementing A majority of respondents, 80% report that they solicited input
additional modules. (Respondents could select more than one from technical and functional staff prior to making the ERP
option; percentage shown is based on respondents selecting a upgrade decision. (See Figure 25.)
minimum of one or more choices.) Module choices were led In most cases, enterprise/ERP suite upgrade teams consisted
by adoption of the User Productivity Kit (UPK), a content of between 6 and 20 people. (See Figure 26.) As can be expected,
development, deployment, and maintenance platform for these sizes vary depending on organization size. For example,
increasing project, program, and user productivity and mitigating 23% of the largest organizations in the survey (more than 5,000
project risks. Second on the list is the installation of business employees) report having teams with more than 30 staff
intelligence applications as part of upgrades. (See Figure 21.) members, versus only 1% of the smallest companies (fewer
Just about every enterprise/ERP suite upgrade includes than 1,000 employees). (See Figure 27.)
financial applications. Close to two-thirds also include
21
Figure 20: Additional Modules Implemented with Upgrade

No additional modules were implemented 64%
Additional human capital management 13%
Additional financials 7%
Additional procurement 7%
Additional supply chain management 6%
Additional projects 5%
Additional customer relationship 3%

management
Other 4%
22
Figure 21: Additional Modules Implemented Outside

Enterprise/ERP Footprint with Upgrade
No additional modules outside of ERP 55%
User Productivity Kit 20%
Business intelligence applications 14%
Master data management applications 2%
Governance, risk, and compliance 1%

applications
Enterprise performance management 1%

applications
Other 6%
23
Figure 22: Product Areas Included in Enterprise/ERP Suite Upgrade

Financials 83%
Procurement 65%
Human capital management 56%
Supply chain management 42%
Projects 27%
Customer relationship management 13%
Other 11%
Figure 23: Enterprise/ERP Suite Upgrade Project Teams

All internal staff 26%
Combination of internal staff and external 71%
All external 0%
Other 2%
24
Figure 24: Primary Decision Maker for Enterprise/ERP Suite Upgrades
CIO 32%
CFO 29%
LOB executive 15%
COO 4%
Other 19%
Figure 25: Solicit Input from Technical and Functional Staff Prior to
Upgrade Decision?
No 15%
Yes 80% Don’t know/unsure 5%
25
Figure 26: Enterprise/ERP Suite Upgrade Project Team Sizes

Fewer than 5 full-time employees 21%
6 to 10 31%
11 to 20 27%
21 to 30 9%
31 to 40 5%
41+ 7%
0 20 40 60 80 100
Figure 27: Enterprise/ERP Suite Upgrade Project Team Sizes

—By Company Size
Fewer than 5 full-time employees 40% 14% 12%
6 to 10 41% 39% 13%
11 to 20 16% 29% 34%
21 to 30 1% 7% 18%
31 to 40 0% 6% 10%
41+ 1% 5% 13%
26
CONCLUSIONS
The latest survey of 308 Quest members finds substantial Upgrade activity is frequent and ongoing. Close to half of
interest and activity in upgrading enterprise or ERP systems, respondents either are in the midst of an upgrade or have just
and that in many cases, these projects target a high-level completed an upgrade project. In addition, another one-third
business need. Key takeaways from this survey include the intend to move to the latest release of their enterprise/ERP suite
following: within the next two years.
Some upgrade activity is transformative to the business.
Most upgrades are short in duration and minimally invasive. While a majority of enterprise/ERP suite upgrades are intended
The typical length of time for an enterprise/ERP upgrade to update specific functions or technology, about 8% also use an
is anywhere between 3 and 12 months. For a majority of upgrade as an opportunity to perform a transformational project
respondents, disruptions to their businesses were minimal; across the enterprise. In addition, another 17% say their
68% say they experienced five or fewer days of disruption or functional upgrades are intended to implement additional
downtime. Twenty-three percent report no disruptions at all. modules to improve or streamline business processes.
27
NEXT STEPS
Your investment in Oracle solutions plays a key role in keeping Alliance, Regional User Group meetings, etc.), followed by release
your business competitive and your company on the leading edge documents (such as RCDs, Release Notes, etc.) at 64%, and white
of performance. As an Oracle customer, you have access to services, papers containing business benefits (51%). (See Figure 28.)
resources, and product updates that can help you be successful. When deciding to upgrade their ERP applications, where did
This survey provided some key insights into the resources that these respondents go to get more information related to key
respondents said were most helpful with upgrade projects. Of project success factors? Peers/industry peers topped the list at
those organizations that have upgraded or are in the process of 64% and 61% rely on user group networks. Another valuable
upgrading (47%), when asked what types of materials, resources source of information: Oracle’s website and publications, as well
or events did they find most valuable when evaluating an ERP as Oracle’s support website (used by 61% and 60%, respectively).
upgrade, 67% cited other conferences (e.g., COLLABORATE, (See Figure 29.)
Figure 28: Materials, Resources or Events Most Valuable

for ERP Upgrades
Other conferences 67%
Release documents (such as RCDs, 64%

Release Notes, etc.)
White papers containing business benefits 51%
Release value propositions 42%
Live customer webcasts 23%
Oracle OpenWorld 21%
Oracle-sponsored regional or partner events 19%
On-demand customer success collateral 17%

(e.g., testimonials)
Independent or publication-affiliated 11%

webcasts
Other 10%
28
Figure 29: Key Information Sources Referenced for

ERP Project Success
Peers/industry peers 64%
Oracle website and publications 61%
User group network 61%
Oracle Support website 60%
Events (webcasts or conferences) 59%
Third-party consulting firm 58%
IT analysts and research 31%
Independent industry publications 23%

and web sites
Other 3%
29
DEMOGRAPHICS
Figure 30: Enterprise Application/ERP Suite Solution Currently in Use
PeopleSoft 9.1 17%
PeopleSoft 9.0 11%
PeopleSoft 8.9 17%
PeopleSoft 8.8 or below 6%
JD Edwards EnterpriseOne 9.0 19%
JD Edwards EnterpriseOne 8.10 or below 13%
JD Edwards World A9.2 3%
JD Edwards World A9.1 2%
JD Edwards World A8.1 or below 7%
We use a custom-developed suite 12%
Salesforce.com 7%
Infor 5%
SAP 4%
Oracle E-Business Suite 11-12X 3%
Microsoft Dynamics 3%
Other 10%

0 20 40 60 80 100
30
Figure 31: Respondents’ Primary Job Titles
Director/manager of IS/IT or development/ 23%

integration
Project/program manager 15%
Enterprise architect/business analyst 15%
Technical architect/systems analyst 12%
Database or systems administrator 6%
Developer/programmer 6%
Line of business manager/professional 5%
CFO/finance manager/controller 3%
IT or data consultant 3%
Chief information officer/CTO/VP of IT 1%
CEO/president/vice president/executive 1%
management
Other 10%
0 20 40 60 80 100
31
Figure 32: Respondents’ Primary Areas of Responsibility
IT 56%
Human resources 10%
Finance 8%
Accounting 8%
Project management 4%
Sales 2%
Service 2%
Executive/management 1%
Manufacturing 1%
Operations 1%
Procurement 1%
Other 5%

0 20 40 60 80 100
32
Figure 33: Respondents’ Company Size—By Number of Employees

(Includes all locations, branches, and subsidiaries.)
1 to 100 employees 5%
101 to 500 employees 14%
501 to 1,000 employees 13%
1,001 to 5,000 employees 33%
5,001 to 10,000 employees 14%
>10,000 21%
0 20 40 60 80 100
Figure 34: Respondents’ Company Size

(In U.S. Dollars—includes all locations, branches, and subsidiaries.)
<$50 million 5%
$50 million to $250 million 15%
$250 million to $500 million 13%
$500 million to $1 billion 16%
$1 billion to $5 billion 19%
>$5 billion 12%
Not applicable 20%
0 20 40 60 80 100
33
Figure 35: Respondents’ Industry Groups
Public sector 16%
Industrial manufacturing 10%
Financial services 7%
Engineering & construction 5%
Consumer goods 5%
Process manufacturing 5%
Insurance 5%
Education & research 4%
Utilities 4%
Communications 3%
High technology 3%
Healthcare 3%
Professional services 3%
Wholesale distribution 3%
Aerospace & defense 2%
Oil & gas 2%
Other 20%
0 20 40 60 80 100

New Functionality, New Opportunities

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

New Functionality, New Opportunities

Uploaded by

Copyright:

Available Formats

NEW FUNCTIONALITY,

2012 QUEST INTERNATIONAL USERS GROUP SURVEY ON

Thomas J. Wilson, President

Enterprise Application/ERP Environments and Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Enterprise/ERP Suite Upgrade Issues and Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Enterprise/ERP Suite Upgrade Nuts and Bolts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

ENTERPRISE APPLICATION/ERP ENVIRONMENTS AND UPGRADES

Figure 1: Current Enterprise Application/ERP Suite Upgrade Plans

Planning to upgrade within Don't know/unsure/other 12%

Figure 2: Scope of Enterprise Application/ERP Suite Upgrades

Technology only (e.g., for PeopleSoft, a 23%

Figure 3: Who’s in Charge of Enterprise/ERP Suite Upgrade

CIO 33% 32% 26%

CFO 17% 29% 24%

LOB Executive 11% 18% 22%

Other 28% 17% 24%

Figure 4: Anticipated Benefits of Enterprise/ERP Suite Upgrade

Access to new functionality 65%

Improved performance 47%

Improved user productivity 44%

Continued alignment with latest Oracle 41%

Standardization of business processes 25%

Better scalability 24%

Reduction in IT operational costs 21%

Adoption of industry standard technology/ 20%

Increased accuracy of corp. data 13%

Tighter integration 13%

(Multiple responses permitted.)

Figure 5: Anticipated Benefits of Enterprise/ERP Suite Upgrade

Access to new functionality 50% 71% 56%

Improved performance 33% 50% 48%

Improved user productivity 39% 53% 24%

Continued alignment with latest Oracle technologies 28% 45% 46%

Adoption of industry standard technology/ 17% 19% 22%

Better scalability 39% 22% 24%

Reduction in IT operational costs 22% 19% 24%

Increased accuracy of corporate data 22% 14% 7%

Standardization of business processes enterprise-wide 61% 23% 15%

Competitive advantage 17% 5% 4%

Tighter integration 33% 11% 13%

Figure 6: Consider Changing Deployment Strategy

No, currently on-premise and planning 77%

No, currently hosted and planning 10%

Yes, moving to a hosted environment 4%

Yes, moving to a SaaS environment 1%

(Total does not equal 100% due to rounding.) 0 20 40 60 80 100

Figure 7: Consider Changing Deployment Strategy?

No, currently on-premise and planning 76% 85% 71%

No, currently hosted and planning to stay hosted 12% 3% 15%

Yes, moving to a hosted environment 4% 2% 7%

Yes, moving to a SaaS environment 0% 1% 2%

Figure 8: Frequency of Enterprise/ERP Suite Upgrades

Always stay current with the latest release 8%

Every other release (upgrade every 21%

Upgrade approximately once every 5 years 10%

Varies (depending on the release, 57%

(Total does not equal 100% due to rounding.)

Figure 9: Compelling Reasons for Enterprise/ERP Suite Upgrade

End of support 82%

(Multiple responses permitted.) 0 20 40 60 80 100

Figure 10: Compelling Reasons for Enterprise/ERP Suite Upgrade

End of support 72% 83% 81%