JD Edwards rues missed e-business opportunities

JD Edwards is paying the price for missing out on the e-business software boom, despite forming belated partnerships with several...

JD Edwards is paying the price for missing out on the e-business software boom, despite forming belated partnerships with several e-business vendors.

Arlene Martin

The company has warned that its financial results for the first quarter of this year will be below expectations and has recently appointed two new senior managers to sort out nascent problems.

Other enterprise resource planning software vendors, notably SAP and PeopleSoft, have reinvented themselves by providing Internet-enabled versions of their software, generating better than expected results.

However, JD Edwards has yet to develop e-business software in-house, relying instead on alliances with Ariba, Atlas Commerce, Extensity, Microstrategy, Siebel, Netfish and webMethods. Last week, the company also teamed up with Logistics.com, a transport management software firm.

JD Edwards expects to post revenue of between $208m (£144m) and $218m this quarter, compared with $232m in the same period last year. Profits are expected to range between $79m and $84m, compared with $84m previously.

The company has appointed a new chief operating officer, Hank Bonde, and chief marketing officer, Leslie Wyatt, to turn around what it describes as "problems with sales and service".

Bloor Research analyst Graham Fisher said, "JD Edwards has an established customer base which will buy into their Internet offerings but they have missed the boat and are now feeling the pain of not acting sooner."

An AMR Research briefing suggests JD Edwards' partnership approach may work well for some sectors of the market but argues that medium-sized companies are now shying away from the complexities of using software from multiple vendors, preferring vendors who can supply everything in a single package.

The briefing also blames JD Edwards' troubles on teething problems over the implementation of its OneWorld application suite.

This was last published in February 2001

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