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Technology Stocks : J.D. Edwards debut! (JDEC)

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To: bob zagorin who wrote (484)2/8/2000 7:47:00 PM
From: bob zagorin  Read Replies (1) of 583
 
from IT-Analysis.com

Tuesday, 8th February

When it's the Active Enterprise component of an agile, network centric, object-oriented, multinational, end-to-end e-business solution, of course. In an announcement that appears to be almost pure positioning, J.D. Edwards (JDE) has launched ActivEra Solutions. The idea is to present an integrated set of front office and back office functions for organisations to operate effectively in the eBusiness world. Or as JDE puts it, to provide "a collection of e-business suites that leverage digital assets to activate transactions and facilitate information sharing throughout the virtual enterprise, enabling companies to achieve competitive advantage and speed time to market". Don't you just love marketing speak?

The first component of the solution is Active Supply Chain which combines supply chain planning and execution. This includes advanced planning capability along with traditional functions like warehousing and transportation. It also allows full collaboration with business partners who are given a window into the system through a self service internet front end. The next component is Active Customer Relationship Management which is essentially a repackaging of Siebel's CRM solution along with an electronic storefront solution from IBM. There is then Active Enterprise (ERP to you and me) and finally, Active Procurement (Ariba) to round off the core system components. The whole suite is complimented by Active Knowledge Management which provides business intelligence and document management capability.

JDE has also decided to enter the arena of B2B electronic exchanges with Active Marketplace. The TRADEX Commerce Center platform is the basis for this and as with other exchanges, the idea is to link trading communities in an on-line marketplace.

JDE is not the first to re-package its offerings in this way. SAP made a similar move last year when it realised that its portfolio of products and initiatives was starting to look a little complicated. It pulled everything together under the mySAP.com umbrella which allowed the whole proposition to be articulated in a clean and coherent manner. The fundamental premise was that eBusiness is not just about Web trading - it is about integrating the whole of the enterprise and supply chain to handle the new demands placed on a company by the eCommerce marketplace. Cynics argue that the diversification of the vendors like JDE and SAP in response to this requirement is just their attempt to get away from the old ERP image. But these vendors do have a point. If your back office processes and supply chain cannot efficiently meet the demands created by your Web site then you will not succeed. The only argument here is whether a single end-to-end solution from one vendor is the best option, especially in environments where some components are already in place.

JDE is sitting on the fence with this issue. It previously stuck by its "best in class" positioning leveraging off the brands and reputation of alliance partners like Siebel and Ariba. It now appears to be masking these by following the lead of SAP and branding the overall solution. The main difference, of course, is that J.D. Edwards is still dependent upon alliance partners for delivering some of the key pieces. It may therefore have a hard time when batting on the integration wicket against the likes of SAP and Oracle.

In other announcements made simultaneously, JDE has highlighted new partnerships with Andersen Consulting and IBM. This really could make a difference. However, JDE has to be careful how it manages its alliances with "big hitters" like these, Siebel and Ariba. In every one of its key relationships the partner is more influential and has a stronger brand. JDE could therefore find it a challenge keeping control of its own destiny.

In the meantime ERP has become a four letter word amongst the new breed of enterprise e-business solution providers.
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