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I2 Technologies, Inc. - A Case study Arunkumar Kandaswamy Hemnandan Patil Jocelyn Choo Ramanan S. Tiruvannamalai Shivasai Rengarajan.

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Presentation on theme: "I2 Technologies, Inc. - A Case study Arunkumar Kandaswamy Hemnandan Patil Jocelyn Choo Ramanan S. Tiruvannamalai Shivasai Rengarajan."— Presentation transcript:

1 i2 Technologies, Inc. - A Case study Arunkumar Kandaswamy Hemnandan Patil Jocelyn Choo Ramanan S. Tiruvannamalai Shivasai Rengarajan

2 Agenda Company Background Company Background Vision & Mission Vision & Mission i2’s product offering i2’s product offering Key issues Key issues SWOT analysis SWOT analysis Recommendations Recommendations Questions Questions

3 Company Background Established in 1988, Irving, Texas Established in 1988, Irving, Texas Core competence – SCM software (B2B) Core competence – SCM software (B2B) Public in 1996 Public in 1996 First project funded by Timken steel First project funded by Timken steel 1,500 employees with 65% graduates & annual turnover of $213 million in ,500 employees with 65% graduates & annual turnover of $213 million in 1997 Ranked 8 th in 100 “Hot growth companies”- Business week(1997) Ranked 8 th in 100 “Hot growth companies”- Business week(1997)

4 Vision & Mission Vision: “We want to be known as an electronic business process optimization (e-BPO) company” Mission: “We will add $50 billion of value in growth and savings for our customers by the year 2005”

5 "Take care of the customer and everything will take care of itself." — Ken Sharma

6 i2 product offering Focuses on supply chain planning segment Focuses on supply chain planning segment Product – RHYTHM Product – RHYTHM Two dimensions Two dimensions Type of decisions to be made (ie Buy, make, move, store, or sell) Type of decisions to be made (ie Buy, make, move, store, or sell) Planning time horizon (Time from decision to task occurrence) Planning time horizon (Time from decision to task occurrence) Products of RHYTHM include Products of RHYTHM include Demand planner, Factory planner, Supply chain planner, Distribution planner and Transportation planner Demand planner, Factory planner, Supply chain planner, Distribution planner and Transportation planner

7 Key issues Product strengths Product strengths Talented knowledge workers Talented knowledge workers i2’s marketing & sales strategy: i2’s marketing & sales strategy: Effective client engagement methodology Effective client engagement methodology

8 Key issues (Cont.) Sound management philosophy Sound management philosophy Demand for SCM software in dynamic marketplace Demand for SCM software in dynamic marketplace Intense competition Intense competition Transition to eBPO: Diversify or Specialize Transition to eBPO: Diversify or Specialize

9 Product strengths Innovative use of IT and OR techniques Innovative use of IT and OR techniques Object-Oriented Programming Object-Oriented Programming Optimization techniques Optimization techniques Custom products Custom products Strategic acquisitions Strategic acquisitions Consistent high investments in R&D Consistent high investments in R&D 20% of total revenue in R&D(1996) to 25% in % of total revenue in R&D(1996) to 25% in 1997 Academic research Academic research

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11 Talented knowledge workers Highly knowledgeable and educated workforce Highly knowledgeable and educated workforce Graduates and PhD’s Graduates and PhD’s Industry specific experts Industry specific experts Backbone for delivering innovative products Backbone for delivering innovative products Bright professionals working towards strong company vision Bright professionals working towards strong company vision

12 i2’s marketing & sales strategy Ability to sell ideas Ability to sell ideas Identify opportunities and apply IT Identify opportunities and apply IT Strong sales philosophy Strong sales philosophy Effective implementation technique Effective implementation technique Implement different products based on success of prior implementation Implement different products based on success of prior implementation Effective client engagement process Effective client engagement process Satisfied customers Satisfied customers

13 Sound management philosophy Vision for success Vision for success Motivation from top management Motivation from top management Diversify out of the niche market by moving towards eBPO - Sidhu Diversify out of the niche market by moving towards eBPO - Sidhu Will the vision and confidence help in their transition to eBPO? Will the vision and confidence help in their transition to eBPO?

14 Demand for SCM software in dynamic marketplace Demand for SCM software Demand for SCM software Trends in ERP implementation Trends in ERP implementation Single supplier option for ERP and SCM Single supplier option for ERP and SCM Global financial crisis Global financial crisis i2 stock lost 25% of its value in a single day i2 stock lost 25% of its value in a single day

15 Intense competition Competitors - Manugistics, Inc.,Numetrix, Inc. Competitors - Manugistics, Inc.,Numetrix, Inc. Price war Price war SAP offers SCP package with lower price tag SAP offers SCP package with lower price tag Competition from ERP vendors Competition from ERP vendors

16 Transition to eBPO: Diversify or Specialize Expand beyond supply chain optimization Expand beyond supply chain optimization Finance, Marketing and Human Resources Finance, Marketing and Human Resources Focus on domain knowledge Focus on domain knowledge Diversify or Specialize ???? Diversify or Specialize ???? Is i2 ready to go……………… Is i2 ready to go………………

17 SWOT analysis Strengths Years of sound research Knowledge enriched workforce Strong leadership Satisfied customers Ability to sell and implement ideas Opportunities Diversify outside of supply chain Strike partnership / alliance with ERP vendors Weakness Employees were not confident about the transition Overconfidence : In Acquisitions/Expansion Threats Shrinking market for SCM software Entry of new competitors Decreasing investors confidence Price war Global financial crisis

18 Recommendations Don’t diversify – specialize in your core area Don’t diversify – specialize in your core area Acquisitions not the only solution Acquisitions not the only solution Strike partnership or alliance with ERP vendors Strike partnership or alliance with ERP vendors Regain employee confidence - change management Regain employee confidence - change management Continuously fund academic research projects at universities Continuously fund academic research projects at universities

19 Questions 1.Diversify or Specialize, which would you prefer and why? 2. What should competitors do if i2 implements e-BPO? implements e-BPO? 3. What are the key factor(s) for i2’s success?

20 Questions (Cont.) 4.Do you think making schedulers as Internal Champions is a good idea? Comment from i2’s and Client’s perspective 5. What do you think are the factors for i2 losses over the years? losses over the years?


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