Ann: Half Year Accounts for period ended 31 December 2022, page-5

IMO

$10 million wage bill for feet on the ground to create revenue for Larry Ellison with a fixed commission rate.

They are trapped in a business model going nowhere.

The JCS acquisitions are small time "safe" ventures with minimal impact on the revenue line.

Labour intensive business models such as Netsuite with fixed salaries and no control over pricing in this economic environment are a formula for pain.

For too long this board has not been innovative in reconstructing the business model.  Whilst the economy was buoyant they sat on their hands and made small time acquisitions with products that are mirroring existing product (app) type offers.

They have revenue, cash, security for all on board and make a soft attempt to placate shareholders with "deli" type acquisitions.

The interesting part about this exercise is that a Netsuite agency is not security - JCS is totally controlled by that machine who have agents all over the world competing for the same pie.

Why are ERP Systems difficult to implement?

One of the main reasons why ERP systems are difficult to implement is because they impact all the processes of an organization. To gain maximum benefits of the new system, organizations have to change the way it has been operating till then and adopt new ways, resulting in the replacement of longstanding manual processes and efficient automated systems. Getting different users and functional groups to get used to the new system is yet another challenge that makes the implementation so challenging. It requires smart planning and strategic management from the entire set of teams, especially the top management. All team members and the core groups must come together to ensure that the ERP system seamlessly gets integrated without any hassle. There are also many agendas involved in an ERP implementation, which is why it's critical to engage a technology agnostic and indenpent partner to ensure project alignment and successs.
What percentage of ERP implementations fail?

A study by Gartner revealed that more than 75% ERP implementations failed due to several reasons. Another report by McKinsey indicated the number to be close to 70%. This failure rate can be reduced by clearly understanding the reasons behind the failure before making the shift. It will help in understanding the reasons and mitigating the risks. Once organizations get a complete understanding of ERP implementation, they can channelize the risks and effectively manage them.
How long does an ERP implementation take?

Implementation of ERP can take anywhere between 6 months and 2 years depending on various factors. These include the size of the company, and the complexity of the systems being installed during the implementation like ISV add-ons, and other customizations. Furthermore, the number of concurrent users and independent instances setups, cloud or on-site implementation, and integration with legacy systems including data can also play a vital role in deciding the total amount of time taken for this implementation. With so many factors working in tandem, the implementation of ERP takes a rather challenging turn, resulting in a longterm investment of both time and resources.
Why is it so difficult to achieve a successful ERP implementation?

Most ERP implementations fail due to a lack of planning and preparation. ERP implementation projects are complex, time-consuming, and costly endeavors. To ensure success, organizations need to carefully plan for the overall project goals, budget, timeline, resources needed, training requirements, system configuration details, data migration considerations, and more. Too often these considerations are overlooked or underestimated, leading to increased costs, missed deadlines, and a system that does not meet the company's expectations.
Additionally, proper change management is essential for successful ERP implementation projects. Without proper change management strategies and tools in place, employees may not embrace the new software and processes, resulting in resistance to utilizing the new system. This can cause the implementation project to fail or, at a minimum, take longer than planned and cost more than budgeted.
Finally, organizations often underestimate just how challenging it is to integrate ERP solutions into their existing business processes. The new system must be customized to fit each organization's unique needs, which requires a deep understanding of the current business processes, available technologies, and the desired system features. This customization often requires a lot of time and effort to get right. If it is not done correctly or thoroughly tested before going live, organizations may experience significant difficulties that delay the project timeline.


If Ellison and his mob put up cash  and took a  major share in JCS and created a major distribution/servicing company for the Asian region - different ball game.

But for JCS to continue to go it alone with the current business model -  the company will be nothing but an employment appendage relying on Ellison commissions.