Case Study: Taming JD Edwards License Costs for a Manufacturer

Challenge:

‍

A multinational manufacturing enterprise, heavily reliant on JD Edwards, faced escalating licensing costs due to a lack of visibility into actual software usage. This hindered their ability to optimize their IT budget and plan for a future transition to a SaaS ERP solution.

‍

Complicating factors included:

‍

• Outdated JDE Version: The client's older version of JD Edwards lacked the functionality to track application usage at the user level, making it difficult to assess actual license needs.
• ‍Complex Security Setup: A complex, role-based security structure designed for larger organizations led to employees having broader access than required, potentially inflating license consumption.

‍

Solution:

‍

Allari teamed with the client to conduct a comprehensive License/Usage Review and Optimization project. Our approach involved:

• Deep-Dive System Analysis: We performed a detailed analysis of the client's JD Edwards environment, extracting security setup data across all modules and user roles. ‍
• Data Cleansing & Normalization: The team meticulously cleansed and normalized the extracted data to ensure accuracy and provide a clear picture of actual license consumption. ‍
• Security-Based Usage Analysis: Leveraging the existing security setup as a proxy for application usage, we collaborated with the client to align access with actual job roles. ‍
• Minimizing Direct JDE Access: We identified opportunities to reduce direct JDE access for certain users by providing alternative reporting methods. ‍
• Actionable Recommendations: Based on our findings, the team delivered a prioritized list of recommendations, including re-harvesting unused licenses, right-sizing user roles, and consolidating licenses. ‍
• Collaborative Communication: We maintained open communication throughout the project, ensuring alignment between Allari and the client's IT and Finance stakeholders.

‍

Results:

‍

• Enhanced Visibility: The client gained a clear and accurate understanding of their JD Edwards license usage. ‍
• Cost Optimization: The client avoided unnecessary license purchases, optimized existing licenses, and significantly reduced overall licensing costs. ‍
• Risk Mitigation: The project mitigated the risk of non-compliance and potential financial penalties associated with software audits. ‍
• Strategic Foundation: The insights gained provided a valuable foundation for the client's future ERP strategy, enabling data-driven decisions for their next-generation systems.