May 2009


My brief note last week on the slow motion demise of the server to which so many of us have been loyal has triggered a number of thoughtful responses.  Not surprisingly, many of you seemed appalled at the suggestion that it may be time to start looking beyond AS/400.  Such a reaction reinforces the point that began the article – loyalty to AS/400 remains strong even though IBM has largely stopped both the marketing and enhancement of it. 

I did not suggest that the time had come to abandon ship.  What I did say was: “There is nothing wrong with continuing to run code written for OS/400 on what has evolved into an outstanding server platform.  It is reliable, cost effective, energy efficient and offers the flexibility of also running AIX or Linux software.  There is also no urgent reason to replace OS/400 specific applications such as JDE World.  Such applications will run just fine on Power servers for many years to come.” 

It will make sense for many of you to keep running World on Power servers until after the polar ice is gone.  Upgrades to anything new only make sense at what we call “inflection points” – a time when conditions have changed sufficiently to warrant a major shift in strategy.  Inflection points are usually the result of events such as an acquisition, new ownership or management, or dramatic changes in business conditions.  When such points occur, it will make sense to look at moving up to EnterpriseOne rather than to continue putting more duct tape and chewing gum on World. 

What concerned me most is that some organizations continue to invest in significant custom software development projects using RPG and the ILE development environment.  Given the current realities, doing so is not a wise investment.  Continuing to make minor tweaks to existing RPG code is not what I was talking about.  Development projects that multiple individuals work on for months or even years are what I had in mind. 

The case for moving up in class to a leading edge development environment will be made here over the course of a number of articles.  I will rely on my associate Jim Louys, who has overseen the upgrading of a great deal of worn out RPG code personally, to help tell the story.  If I was the first AS/400 advocate on Earth, Jim was #2.  He started his career as a programmer in Rochester working on what became the foundation for OS/400.  Jim was the original source for the “Silverlake” code name.  His credentials as an AS/400 loyalist are unmatched.  Much of his current work, however, revolves around breathing new life into older code and applications.  I am optimistic that the articles he will offer will be very enlightening. 

All I really ask is for all of you to keep an open mind to the new possibilities out there.  Most of you will be pleasantly surprised by what you discover. 

Please, keep those comments and opposing opinions coming!

We wanted to alert you all about two JD Edwards software upgrade consideration messages from our friends at Oracle.  

The first focuses on World customers: 

“JD Edwards World A9.2 Upgrade Experience Web Conference with A9.2 Live Customer on June 2nd.

Please join us for an upcoming web conference with David Bryant, VP/CFO, Maxco Supply, Inc. and John Schiff, VP and GM, JD Edwards World to hear about David’s recent upgrade experience to A9.2 on Tuesday, June 2nd at 9:00 AM MDT.
  
We are using the Oracle Web Conference tool for this meeting.  This will enable us to record the presentation so that we can post for future viewing.  If you have not yet used this tool in the past, please ensure that you sign into the conference early to enable any desktop updating that might be necessary.  For additional questions about this webinar, please contact Lorrie Noll at lorrie.noll@oracle.com or at 704-786-4603.
 
Time:  11am EST, 10am CDT, 9am MDT, 8am PDT
Dial-in:  Toll-free 888-967-2253
Meeting ID = 888317
Passcode = 3344767
 
Web Conference:   conference.oracle.com <https://conference.oracle.com/imtapp/app/prelogin.uix>
 
Conference ID =   144398522
Conference Key = A92

When entering your name, please indicate your company as well in (  ). If you cannot get into the audio portion of the conference, please exit the web conference, and sign back in – selecting the “LISTEN” option in the pop up window – this will enable you to listen to the web conference via your pc.  You can also dial in and listen to the webcast through your phone using the dial in information above.” 

The second message is for both EnterpriseOne and World customers: 

“With your current emphasis on quick payback, would you like to have an interactive tool to quantify the benefits of upgrading your JD Edwards World or JD Edwards EnterpriseOne applications? What about a customizable tool that can show the savings associated with upgrading old IBM servers to new IBM Power servers?
 
IBM and JD Edwards created a web-based, upgrade tool to help you identify strategic drivers, conduct a brief benefits analysis, and demonstrate the significant value you could achieve by upgrading your current ERP solution and your IBM platform. This tool also has a video tutorial to provide a user-friendly experience and show you how to tailor the parameters to meet your specific needs and business scenarios.
 
Please click on this link to start exploring JD Edwards & IBM ROI benefits:
http://k.kmaone.com/JdeUpgradeTool
 
For more information about the JD Edwards World upgrade, please contact Barbara Canham at barbara.canham@oracle.com or 303.334.4558 and about the JD Edwards EnterpriseOne upgrade, please contact Dennia Clarke at dennia.clarke@oracle.com or 303-334-8516.

For additional IBM information, please contact Rochelle Schaetten at rochelle@us.ibm.com <mailto:rochelle@us.ibm.com>  or 877-576-2254.” 

As always, we welcome any comments.

During Collaborate we spoke with many World customers.  What struck me was the strength of their continuing emotional attachment to a combination of World and the IBM platform on which it runs.  As they still do, I will refer to that platform as AS/400, even though it is now just one of three environments on Power servers. 

More than one lapsed into evangelical mode as they ticked off the virtues of software and an OS that almost never fails, is easy to understand and use, and that is so familiar and comfortable.  It was strange hearing this since they each assumed I needed to be sold. 

None of them knew that I had been the first AS/400 evangelist in the world starting back in 1986 – almost two years before it was even announced.  The original news that IBM had a computer code named ‘silverlake’ under development came out in a white paper I published early in 1987.  On one level it was nice to hear them echo back points I had been the first one to make over 20 years ago.  Overall, however, it was a sad reminder that a golden age has come and gone. 

The reality is that there is little left to remain loyal to.  OS/400 lives on as a guest operating system on a generic combination of firmware and hardware that IBM calls the Power system.  Nearly all enhancements now come as improvements to the Power platform and not to OS/400 itself.  The once mighty installed base continues to atrophy. 

There is nothing wrong with continuing to run code written for OS/400 on what has evolved into an outstanding server platform.  It is reliable, cost effective, energy efficient and offers the flexibility of also running AIX or Linux software.  There is also no urgent reason to replace OS/400 specific applications such as JDE World.  Such applications will run just fine on Power servers for many years to come. 

My concern is that loyalty to a technology that time has now bypassed is keeping World customers from accepting the inevitable – the time has come for many of them to embrace the changes that have occurred and make plans to move on.  Once that acceptance has occurred a number of exciting possibilities emerge.  Future postings will explore a number of them. 

As the original AS/400 evangelist, it took me a long time to accept the reality of its demise.  Like all software environments, AS/400 will live on for a very long time in the form of code that has not yet been replaced or converted to something else.  As a viable foundation for the development of new code it is now completely obsolete.  There is no great rush, but organizations dependent on a large base of code that runs only under OS/400 need to develop plans to move on over time.  Obviously, the JDE World community includes many organizations that fit this description. 

As always, comments and opposing opinions are welcome.

Hein with toy photoHaving gone to Collaborate with modest expectations, I was not disappointed even though the economy and the swine flu combined to make it a much more mellow event than any previous year.  With attendance down and a large number of sessions, too many excellent presentations were held before very thin audiences – especially on Wednesday and Thursday when many people had already departed.  I would recommend shortening the conference by a day next year and holding fewer presentations. 

The best presentation in front of a small audience that I was aware of was given by Dwight Hawkes of Turner Industries describing in detail a highly successful BI implementation that took place last year.  Customer stories tend to be far more informative than vendor presentations, especially when given by an entertaining person that got his hands dirty doing real hard work.  If you would like to get a copy of his presentation or learn more about what was said just send a quick email to us at info@andrewscg.com

One of the best things about going to a conference is the goodies vendors provide in the expo area, especially for those with young children or grandkids.  One of the most popular this year (determined by a completely biased and wholly unscientific process) is the little talking rubber man pictured above along with John Hein, his friend and voice coach. 

Since he has a few left over (and no small children) John will gladly send one to anyone that contacts him by email until he runs out.  He promises that they will bring minutes of joy and happiness to those young and old lucky enough to get one.  Being a sales rep, John will surely provide you with some information about his RapidReconciler product as well.  If you have the JDE Inventory module chances are you will want to know about it.  Otherwise, feel free to just enjoy the toy. 

If any other vendors from the show want to also make a similar offer to recycle some of their booth goodies let us know and we will spread the word.  It could help ease the pain of not attending for those of you whose bosses were too cheap to let you go.

At Collaborate Charles Phillips said that Oracle was in the hardware business to stay.  Larry Ellison was quoted today as saying the same thing.  Could they both just be having some fun with us?  I can offer no concrete evidence beyond a special twinge in one of my toes (the right foot “ate good roast beef” toe) that usually is a psychic signal that something is amiss.  So for fun, let’s read the available tea leaves. 

The wire services today also indicate that Sun has admitted legally that another suitor besides IBM was actively engaged when Oracle sealed the deal.  The most informed guess is that it was HP (Cisco and Dell are less likely possibilities).  Oracle almost certainly had a good idea of who else was interested and why. 

At the most recent OpenWorld Oracle first put its toe (left foot “went to market”) in the stormy sea that is the hardware market by partnering with HP on a database appliance.  Would Oracle turn on one of its strongest allies only a few months later by grabbing Sun to become a fierce competitor?  Is it not at least possible that Oracle made the calculation that it could buy Sun and then, after clearing the regulatory hurdles, quietly spinoff the hardware, ideally to a business with which it already has a hardware partnership? 

Having such a deal full baked in advance would likely be illegal and Oracle has lots of overly careful lawyers.  At the same time, Oracle could be betting on its ability to sell off the parts it doesn’t want later even without a deal negotiated in advance. 

If this line of thinking is correct, Phillips and Ellison would have no choice at this point but to say that Oracle was intending to keep everything.  To say anything else would kill the already fragile deals in the Sun pipeline.  It could also make a mess of the process to get regulatory approval. 

Assuming for the moment that Oracle does intend to keep all of Sun, will everything work out well?  A future posting will explore this possibility in more detail but for now we remain skeptical.  Having said that, Oracle is currently on a roll in terms of how well the last forty or so acquisitions have worked out so perhaps they once again know better than those of us who watch from the sidelines and guess what will happen.

img_0085Collaborate it does not feel much different from last year.  Given the constant bombardment of negative economic news over the past 6+ months a different mood could have been expected.  Instead, all the usual things continue to go on.  Almost all presentations start out with a preamble about dealing with tight budgets but otherwise it seems like business as usual, perhaps because those really suffering are the ones that did not come. 

The comic relief was provided today by JDE VP Lyle Ekdahl who provided a nice summary of the latest enhancements and what is scheduled to come next while holding on to a beautiful but noisy parrot.  The only thing the parrot did right was to play dead when Lykle shot at it with his finger.  The lesson seemed to be that a bird in hand is worth two short laughs but then needs to be handed to someone off-stage. 

Lyle followed his boss Lenley Hensarling who mostly reviewed themes and messages that had been presented in the past.  The job of Lyle and the parrot was to repeat and amplify what Lenley said.  Perhaps the symbolism of the parrot involved reminding us that Oracle’s messages were going to be repeated until we got them. 

To greatly oversimplify the key points Lenley and Lyle made: 

  • Both E1 and World are here to stay and will be supported indefinitely.
  • A steady flow of nice but modest new features will continue.
  • The most important new capabilities will come from other Oracle applications that will be tightly integrated with JDE.
  • Most of these “edge” applications have come from acquisitions.
  • Application Integration Architecture (AIA) is the set of standards that allow all the things Oracle has bought over the years to integrate elegantly.
  • This year’s featured edge applications provide cool analytical dashboards.
  • The new tools release 8.98.1 has the usual set of nice to have improvements. 

Both presentations ran a pre-recorded demo that showed a cool new way to imbed analytics created in a Business Intelligence applications within the regular JDE E1 screens.  We will cover this capability later in another posting and will hopefully be able to provide a link to the demonstration so you can see it yourself.

More to come soon – stay tuned.

 

Collaborate is off and running and we are here in force to provide observations and comments.  This posting will be initial reactions and thoughts.  Later ones will benefit from more time for reflection and analysis.  The best news so far is that attendance is surprisingly strong at about 80% of last year when it was in a venue more attractive to many (Vegas), earlier in the year, and it occurred “a long time ago, in an economy that seems far, far away”.  Most of the lost attendance is due to customers sending fewer people, not a reduction in the number of organizations participating.  The bottom line is that the JDE customer set sees the value in staying up to date. 

With that in mind, lets see what we have learned so far, especially from Oracle President Charles Phillips annual state of the union keynote: 

  • A bone has been thrown to virtually every product community in the form of a new or about to arrive product release.
  • No big new products or concepts were announced.  The previous four Collaborate conferences each had some big new thing to talk about.
  • Fusion Applications were noticeable in their lack of attention – not mentioned at all by Phillips.  This was supposed to be the year they arrived on the scene.  More research will be done, but it appears as Fusion Applications is rapidly turning into a research science project.  Those of you fretting about being forced to drop JDE applications in favor of them could more productively exercise your need to worry about something on catching and dying from the swine flu.
  • As we predicted, Phillips said little about the Sun acquisition other than to wax poetic about how wonderful it would be.  He mentioned how Oracle was on a path to elegantly integrate everything from the disk to the desktop.  Sounds good at the sound bite level, but we remain skeptical about the hardware part of the equation.
  • The JDE organization has been juggled around a little with John Schiff now responsible for business development for both E1 and World.  He will still keep and eye on the slowly fading World customer base.  Don’t fret – additional releases and other loving care will still come your way.
  • Denise Grills will now manage marketing for the full JDE product line and not just World.  This de facto beefing up of the marketing function for JDE is a good sign.  Larry Ellison hates to spend money on marketing as a general principal so don’t expect to see lots of JDE specific advertising.  Do expect more JDE visibility and communication than has been evident since the takeover. 

Stay tuned, more news and commentary coming.

The headline news coming out of Collaborate is usually a concept or product introduced with great fanfare in a keynote.  Oracle President Charles Phillips unveiling Applications Unlimited a few years ago comes to mind.  While such announcements provide cool things to talk and speculate about, often their immediate relevance to individual attendees is low. 

On the other hand, the whole cost and time spent attending Collaborate can be more than justified if just a few nuggets of practical, usable information fall into your hands over the course of the conference.  Ideas that can be immediately applied to make a difference in your business are the most valuable thing that most of you will bring home (not counting, of course, the cute rubber chicken with the vendor logo on it that will so delight your four year old). 

One of the most popular Collaborate serendipity discoveries last year for more than 100 attendees was a highly specialized software offering called RapidReconciler.  Its purpose is quite modest – quickly resolve the maddening differences in balance between JDE Inventory and GL modules that tend to crop up at period end.

  1. If you are the person stuck dealing with this issue this is a big deal, especially if every month for a few days you have to come home long after your four year old has put away the new rubber chicken and gone to bed. 

For the few hundred Collaborate attendees who understand this very particular issue and want to know what to do, two sessions are just what you need.  Next Tuesday in room 309A Ed Gutkowski will present Inventory Reconcilation – There has to be a better way! and on Wednesday he will present GL to Perpetual out of Balance? Problem Solved in room 309B. 

Ed will also be hanging out through much of the conference in expo booth #5353.  He won’t have cute rubber chickens to hand out but will have some goodies to take home for the little ones to play with.  More importantly, he may get you home at a more reasonable time at month end.

Oracle recently provided additional significant evidence that it will continue to enhance JD Edwards World software with the release of JD Edwards World A9.2.  This is a continued encouraging sign that the software giant is living up to its Applications Unlimited pledge to invest in JD Edwards World and EnterpriseOne software while providing the option for customers to branch out to Fusion at their choosing.

Along with others, some of the significant enhancements to JD Edwards World software available in A9.2 are:

  • Improved Web Interface
  • Enhanced Compliance Support
  • Additional Lean Manufacturing Capabilities
  • Advanced Forecasting capabilities to help anticipate market needs
  • Enhanced EDI Processing
  • Expanded Approval Management
  • New Customer Driven License Module with Purchase Card
  • HR/Payroll enhancements with Labor Reclass and History Adjustments
  • Localization improvements for global operations
  • Augmented spreadsheet Import/Export functionality
  • Expanded UPK Training Content
  • BI Publisher Integration capabilities

The Advisor had an opportunity to speak with the CFO and internal executive sponsor of the very first JD Edwards World install base customer to upgrade to World A9.2.  Mr. David Bryant, CPA is CFO of Maxco Supply, Inc. in Parlier, CA and is Vice President of the JD Edwards World User Group.  Maxco Supply is a leader in packaging solutions and packaging machinery for the agriculture industry.  Mr. Bryant was very gracious in extending the time to discuss his and Maxco’s experience with JD Edwards World over the years, and their recent upgrade to World A9.2.  Having started his career with Arthur Anderson, Mr. Bryant went to work for Maxco Supply 25 years ago and has contributed to an extremely impressive revenue growth during that time. 

Maxco Supply was outgrowing Mapics in 1995 when the ERP software replacement search began.  Maxco Supply was already happy with the IBM Midrange platform, so the ERP software would need to run on the IBM AS/400.  The selection was made, and JD Edwards World Software was chosen.  The core suites of JD Edwards World A6.2 Financials, Distribution, and Manufacturing were initially implemented in an amazingly short time frame of 6 weeks.  The implementation project was a huge success.  Only one outside consultant was used, and that was for a short time in the training area.  A number of months later, Maxco successfully implemented the Payroll module of JD Edwards World A6.2.  

The generally accepted best practice of minimum modifications to the ERP software was utilized by Maxco with a result that there is little or no custom code.  The management team led by Mr. Bryant instilled the philosophy that feature rich and flexible ERP software like JD Edwards World can be set up and utilized more or less with the “Vanilla” “Out of the Box” functionality.  The thought is that companies can and should match best business practices to the attributes of a robust and quality ERP packaged software solution like JD Edwards World.  

Over the years, Maxco had upgraded from JD Edwards World A6.2 to A7.3 to A9.1, and now to A9.2 in order to take advantage of software functionality and technology enhancements as they are made available.  Maxco was the second global JD Edwards World customer to Go-Live on release A9.1, and the first to Go-Live on JD Edwards World A9.2.  

Utilizing best practices upgrade implementation methodologies, the A7.3 to A9.1 upgrade took only three weeks, and the recent upgrade to World A9.2 from A9.1 was basically performed in only one week.  Maxco so far is very pleased with World A9.2 with minor if any issues discovered thus far.  The upgrade was a “seamless process” to the end users states Mr. Bryant.  

Having been one myself, this author and Mr. Bryant agreed that there is a very loyal JD Edwards World install base following to this day with the belief that this venerable ERP packaged software solution will have a very bright future for years to come. 

Our congratulations to Maxco Supply, Inc. and Mr. David Bryant on the success of their company, and for their effective management and utilization of Oracle’s JD Edwards World software.

As always, comments are welcome.