Shakeup at J.D. Edwards

Eric_Lehti

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Shakeup at J.D. Edwards

Mon Feb 12, 2001 15:00:57 EST

Click here for complete article http://www.cfo.com/Article?article=2092

The software vendor is trying to jumpstart
sales as it makes the transition to the B2B
era.

--------------------------

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Copyright 2000 CFO Publishing Corporation
 
Mon Feb 12, 2001 14:58:28 EST

Click here for complete article http://www.cfo.com/Article?article=2092

The software vendor is trying to jumpstart sales as it makes the transition
to the B2B era.


Shakeup at J.D. Edwards


The software vendor is trying to jumpstart sales as it makes the transition
to the B2B era.

J.D. Edwards hasn't had an easy time selling its OneWorld XE software, the
latest version of its flagship enterprise resource planning (ERP) system.

The sales problems forced the company to announce this week that it expects
to report a loss of $0.01 or $0.02 per share for the first quarter of fiscal
2001, ended Jan. 31. The company will report its results on March 5.


The firm also said that first quarter sales will likely shrink to between
$208 million and $218 million compared with $232 million in the year-ago
period.


In the year-ago quarter, the company lost $152,000, although on a per- share
basis, the company reported a break-even bottom line.


In a prepared statement, J.D. Edwards CEO Edward McVaney said, "We did not
execute well this quarter."


A company spokesman says OneWorld XE, which was introduced in September, has
been installed at 30 customers, and demand is strong. But the firm is
addressing its sales problems.


J.D. Edwards is betting on a new chief operating officer, Hank Bonde, to
spearhead the turnaround. Bonde will report directly to McVaney and is
replacing Dave Girard, who will stay with the company until the end of the
month to help with the transition.


The company is also hiring Les Wyatt as chief marketing officer, a new
position. Wyatt will work alongside Jim Maikranz, the company's senior vice
president for worldwide sales.


The company will provide the details on its revamped sales strategy when it
announces its quarterly results next month.


J.D. Edwards phased out sales of its older World Software ERP system by the
middle of last year, and the spokesman says that One World XE is a more
difficult sale to close because it's a more complicated system. That partly
accounts for the failure of the XE's product sales to offset the lost
revenue from World Software.


World is a 1990s' era ERP system that runs on IBM AS/400s, while XE is
described as an ERP2 system, which combines ERP, customer relationship
management, and E-procurement for B2B marketplaces.


In addition to the AS/400, XE runs on Microsoft Windows NT and most
mainstream versions of Unix, including IBM AIX, Hewlett-Packard's HP/UX, and
Sun Microsystems' Solaris.


The spokesman says an ERP2 system will manage a company's relationships with
30 or more suppliers and a similar number of customers.


Because of the extra complexity, the spokesman says, "the sophistication of
the sales process has increased. It used to be that a sales rep would go to
a customer and say, 'Let me sit down with IT and talk about feature
function.' Now they come in and say, 'Let me sit down with the CFO and talk
about return on investment.'"


Given the multimillion-dollar price tag of ERP2 systems, clients are often
booking them as a capital expense. That means the final decision on the
purchase is made by the board of directors, and that can also drag out the
sales process.


The complexity in selling ERP2 systems is also leading J.D. Edwards to hire
salespeople who have more experience in specific vertical markets, the
spokesman says. The market experience will enable sales reps to go to
prospective customers and explain how XE can be used to integrate their
operations with their suppliers and customers.


Still, even as the company hammers out its new strategy, it has its work cut
out for it. Douglas Lynn, a vice president with The Meta Group, a market
research firm, says his clients are mostly mid-sized firms, or those with
annual sales in the $100 million to $1 billion range, which overlaps with
the market J.D. Edwards is targeting. Many are less eager than they were
just a year ago to jump on the B2B marketplace bandwagon.


"We're not getting overwhelming demand from our clients," Lynn says.
"They're not saying 'B2B, gotta go, gotta go.'"


For example, many parts suppliers in the auto industry already find their
margins being stretched beyond the breaking point, and they consider B2B
marketplaces just another means for manufacturers to further squeeze them.


While Lynn doesn't doubt that B2B marketplaces will grow in prominence, for
many firms they are yet another example of a technology in search of a
solution.


Given the absence of an overwhelming demand for B2B applications means that
software developers must "convince the market that B2B is something they
have to do," Lynn says. "It's kind of like pushing on a rope."



<http://www.cfo.com/images/1pixl_clear.gif>

© CFO Publishing Corporation 2000. All rights reserved.
 
Not good news.

>>> [email protected] 02/12/2001 12:05:20 PM >>>
Mon Feb 12, 2001 14:58:28 EST

Click here for complete article http://www.cfo.com/Article?article=2092

The software vendor is trying to jumpstart sales as it makes the transition
to the B2B era.


Shakeup at J.D. Edwards


The software vendor is trying to jumpstart sales as it makes the transition
to the B2B era.

J.D. Edwards hasn't had an easy time selling its OneWorld XE software, the
latest version of its flagship enterprise resource planning (ERP) system.

The sales problems forced the company to announce this week that it expects
to report a loss of $0.01 or $0.02 per share for the first quarter of fiscal
2001, ended Jan. 31. The company will report its results on March 5.


The firm also said that first quarter sales will likely shrink to between
$208 million and $218 million compared with $232 million in the year-ago
period.


In the year-ago quarter, the company lost $152,000, although on a per- share
basis, the company reported a break-even bottom line.


In a prepared statement, J.D. Edwards CEO Edward McVaney said, "We did not
execute well this quarter."


A company spokesman says OneWorld XE, which was introduced in September, has
been installed at 30 customers, and demand is strong. But the firm is
addressing its sales problems.


J.D. Edwards is betting on a new chief operating officer, Hank Bonde, to
spearhead the turnaround. Bonde will report directly to McVaney and is
replacing Dave Girard, who will stay with the company until the end of the
month to help with the transition.


The company is also hiring Les Wyatt as chief marketing officer, a new
position. Wyatt will work alongside Jim Maikranz, the company's senior vice
president for worldwide sales.


The company will provide the details on its revamped sales strategy when it
announces its quarterly results next month.


J.D. Edwards phased out sales of its older World Software ERP system by the
middle of last year, and the spokesman says that One World XE is a more
difficult sale to close because it's a more complicated system. That partly
accounts for the failure of the XE's product sales to offset the lost
revenue from World Software.


World is a 1990s' era ERP system that runs on IBM AS/400s, while XE is
described as an ERP2 system, which combines ERP, customer relationship
management, and E-procurement for B2B marketplaces.


In addition to the AS/400, XE runs on Microsoft Windows NT and most
mainstream versions of Unix, including IBM AIX, Hewlett-Packard's HP/UX, and
Sun Microsystems' Solaris.


The spokesman says an ERP2 system will manage a company's relationships with
30 or more suppliers and a similar number of customers.


Because of the extra complexity, the spokesman says, "the sophistication of
the sales process has increased. It used to be that a sales rep would go to
a customer and say, 'Let me sit down with IT and talk about feature
function.' Now they come in and say, 'Let me sit down with the CFO and talk
about return on investment.'"


Given the multimillion-dollar price tag of ERP2 systems, clients are often
booking them as a capital expense. That means the final decision on the
purchase is made by the board of directors, and that can also drag out the
sales process.


The complexity in selling ERP2 systems is also leading J.D. Edwards to hire
salespeople who have more experience in specific vertical markets, the
spokesman says. The market experience will enable sales reps to go to
prospective customers and explain how XE can be used to integrate their
operations with their suppliers and customers.


Still, even as the company hammers out its new strategy, it has its work cut
out for it. Douglas Lynn, a vice president with The Meta Group, a market
research firm, says his clients are mostly mid-sized firms, or those with
annual sales in the $100 million to $1 billion range, which overlaps with
the market J.D. Edwards is targeting. Many are less eager than they were
just a year ago to jump on the B2B marketplace bandwagon.


"We're not getting overwhelming demand from our clients," Lynn says.
"They're not saying 'B2B, gotta go, gotta go.'"


For example, many parts suppliers in the auto industry already find their
margins being stretched beyond the breaking point, and they consider B2B
marketplaces just another means for manufacturers to further squeeze them.


While Lynn doesn't doubt that B2B marketplaces will grow in prominence, for
many firms they are yet another example of a technology in search of a
solution.


Given the absence of an overwhelming demand for B2B applications means that
software developers must "convince the market that B2B is something they
have to do," Lynn says. "It's kind of like pushing on a rope."



<http://www.cfo.com/images/1pixl_clear]>

© CFO Publishing Corporation 2000. All rights reserved.




--------------------------
To view this thread, visit the JDEList forum at:
http://198.144.193.139/cgi-bin/wwwthreads/showflat.pl?Cat=0&Board=OW&Number=5469
*************************************************************
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Date: Wed, 14 Feb 2001 08:38:50 -0800 (PST)
To: [email protected]
From: MarcT <[email protected]>
Reply-to: [email protected]
Subject: Re: Shakeup at J.D. Edwards

Not good news.

>>> [email protected] 02/12/2001 12:05:20 PM >>>
Mon Feb 12, 2001 14:58:28 EST

Click here for complete article
http://www.cfo.com/Article?article=2092

The software vendor is trying to jumpstart sales as it
makes the transition
to the B2B era.


Shakeup at J.D. Edwards


The software vendor is trying to jumpstart sales as it
makes the transition
to the B2B era.

J.D. Edwards hasn't had an easy time selling its
OneWorld XE software, the
latest version of its flagship enterprise resource
planning (ERP) system.

The sales problems forced the company to announce this
week that it expects
to report a loss of $0.01 or $0.02 per share for the
first quarter of fiscal
2001, ended Jan. 31. The company will report its results
on March 5.


The firm also said that first quarter sales will likely
shrink to between
$208 million and $218 million compared with $232 million
in the year-ago
period.


In the year-ago quarter, the company lost $152,000,
although on a per- share
basis, the company reported a break-even bottom line.


In a prepared statement, J.D. Edwards CEO Edward McVaney
said, "We did not
execute well this quarter."


A company spokesman says OneWorld XE, which was
introduced in September, has
been installed at 30 customers, and demand is strong.
But the firm is
addressing its sales problems.


J.D. Edwards is betting on a new chief operating
officer, Hank Bonde, to
spearhead the turnaround. Bonde will report directly to
McVaney and is
replacing Dave Girard, who will stay with the company
until the end of the
month to help with the transition.


The company is also hiring Les Wyatt as chief marketing
officer, a new
position. Wyatt will work alongside Jim Maikranz, the
company's senior vice
president for worldwide sales.


The company will provide the details on its revamped
sales strategy when it
announces its quarterly results next month.


J.D. Edwards phased out sales of its older World
Software ERP system by the
middle of last year, and the spokesman says that One
World XE is a more
difficult sale to close because it's a more complicated
system. That partly
accounts for the failure of the XE's product sales to
offset the lost
revenue from World Software.


World is a 1990s' era ERP system that runs on IBM
AS/400s, while XE is
described as an ERP2 system, which combines ERP,
customer relationship
management, and E-procurement for B2B marketplaces.


In addition to the AS/400, XE runs on Microsoft Windows
NT and most
mainstream versions of Unix, including IBM AIX,
Hewlett-Packard's HP/UX, and
Sun Microsystems' Solaris.


The spokesman says an ERP2 system will manage a
company's relationships with
30 or more suppliers and a similar number of customers.


Because of the extra complexity, the spokesman says,
"the sophistication of
the sales process has increased. It used to be that a
sales rep would go to
a customer and say, 'Let me sit down with IT and talk
about feature
function.' Now they come in and say, 'Let me sit down
with the CFO and talk
about return on investment.'"


Given the multimillion-dollar price tag of ERP2 systems,
clients are often
booking them as a capital expense. That means the final
decision on the
purchase is made by the board of directors, and that can
also drag out the
sales process.


The complexity in selling ERP2 systems is also leading
J.D. Edwards to hire
salespeople who have more experience in specific
vertical markets, the
spokesman says. The market experience will enable sales
reps to go to
prospective customers and explain how XE can be used to
integrate their
operations with their suppliers and customers.


Still, even as the company hammers out its new strategy,
it has its work cut
out for it. Douglas Lynn, a vice president with The Meta
Group, a market
research firm, says his clients are mostly mid-sized
firms, or those with
annual sales in the $100 million to $1 billion range,
which overlaps with
the market J.D. Edwards is targeting. Many are less
eager than they were
just a year ago to jump on the B2B marketplace
bandwagon.


"We're not getting overwhelming demand from our
clients," Lynn says.
"They're not saying 'B2B, gotta go, gotta go.'"


For example, many parts suppliers in the auto industry
already find their
margins being stretched beyond the breaking point, and
they consider B2B
marketplaces just another means for manufacturers to
further squeeze them.


While Lynn doesn't doubt that B2B marketplaces will grow
in prominence, for
many firms they are yet another example of a technology
in search of a
solution.


Given the absence of an overwhelming demand for B2B
applications means that
software developers must "convince the market that B2B
is something they
have to do," Lynn says. "It's kind of like pushing on a
rope."



<http://www.cfo.com/images/1pixl_clear]>

© CFO Publishing Corporation 2000. All rights reserved.




--------------------------
To view this thread, visit the JDEList forum at:
http://198.144.193.139/cgi-bin/wwwthreads/showflat.pl?Ca
t=0&Board=OW&Number=5469

********************************************************
*****
This is the JDEList One World / XE Mailing List.
Archives and information on how to SUBSCRIBE, and
UNSUBSCRIBE can be found at http://www.JDELIST.com
********************************************************
*****





--------------------------
To view this thread, visit the JDEList forum at:
http://198.144.193.139/cgi-bin/wwwthreads/showflat.pl?Ca
t=0&Board=OW&Number=5602


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