JDA i2 acquisition: 3 point view
When a consolidation happens in any industry, the market takes the news in awe. The market reacts swiftly initially with lot of news-spread, followed by strong analysis, view points and the market settles down accepting the new order and moves on. I’m sure the same will happen with the JDA i2 acquisition. JDA historically has been a great aggregator and have done acquisitions at strategic moments in its growth phase. Acquisition of Intactix, E3 and Manugistics all helped JDA solidify its position in the market, expand its footprint and establish itself as the leader.
To this episode of JDA-i2 merger, I think there are 3 perspectives – each from the view of competition, client base and System Integrators.
Competition – Industry is aggregating and the entry barriers are building up stronger and taller. Handful of players will control the market. Oracle, SAP will have to compete more fiercely with a much stronger opponent. The equation of JDA/i2/SAP/Oracle now changes to JDA-i2/SAP/Oracle.
Client base – Users of these software and applications will be a tad happier. As the industry aggregates and if JDA & i2 packages move towards similar architecture and functionalities, it will be easier for the users/planners to learn to use various packages, companies will need lesser money to be spent on training – and that should be a relief. Lora Cecere, AMR Research describes how there is a huge scarcity of skilled talent available to use these packages effectively even in this times of 10% unemployment. So, this must be good news for the user base. How the support for the existing clients of i2 is going to be impacted remains to be seen, though.
System Integrators/Implementers – Managing talent is an issue for the SI as well. They need to either have consultants cross trained in all the packages available in the market or maintain a broad pool of talent that is skilled in each package. With the consolidation, the need for the companies to maintain such diverse pool of talent is going to be less.
Venkatesan, Infosys describes more on JDA i2 merger in his blog “A big fat geek wedding”. You will get more details on his post on the JDA’s acquisition of i2.
Comments
Great blog Kirthi. I especially like the point you have made about the current challenges faced by the SIs in cross-training consultants across packages. It is very real, especially in the supply chain world, because often companies go for a best of breed product for functions like demand planning, demand sensing, IO, load building, S&OP etc. Each product has its own distinct UIs, workflows and backend architecture, creating several learning challenges for the consultants. As you have mentioned in your blog, my viewpoint on the same topic can be found at http://www.infosysblogs.com/supply-chain/2009/11/a_big_fat_geek_wedding_jda_wed.html
Posted by: Venkatesan Ramesh | November 18, 2009 8:28 PM
I especially like the comment of the current challenges faced by the SIs in cross-training consultants across packages. thanks for sharing.keep posting again.
Posted by: stephen | December 8, 2009 3:48 PM