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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (8062)	10/11/1999 1:03:00 PM
From: pala	Read Replies (1) \| Respond to of 54805

A quick follow up on the SCM gorilla - i2. Bruce I'm just trying to get a handle on this B2B thing in very broad terms. Would it be fair to say that Ariba is basicly displacing salesmen, fax machines and phones with the internet? And using economies of scale and the network effect to drive it? Nothing real discontinous at Ariba? I understand the Godzilla thing and they are very attractive. If this is so then Ariba and i2 could be complementry as i2 is in the efficency business. Doug

To: Bruce Brown who wrote (8062)	10/11/1999 1:56:00 PM
From: pala	Read Replies (1) \| Respond to of 54805

Bruce; A few more disjointed thoughts on i2 I feel that i2's Tornado has been constrained by several things 1) Not enough salesmen on the street, and a very complicated sale. 2) Large complicated installations, a qtr. usually see's a couple large sales. 3) general shortage if IT people that are up to the task 4) FUD and Vaporware from the big ERP,s (this is fading as Seible is now taking the heat) Now I think we are seeing IBM makeing a big play in the outsourced ecommerce field, and viewing i2 as a core offer in their package. IBM has 25K salesmen on the street. The i2-HD deal is the 1st case of levering a huge account to sell 7000 (I presume stock) software packages to an accounts suppliers. And IBM can help install and service as needed. The sale of a stock package would have much higher margins. i2 has a huge campus in India and IT attracts the best and brightest there, Im sure much work is done in India and sent over here. As the internet space plays out and the market starts looking for earnings the internet pragmatists will feel pressure to show earnings. or PAIN Who ya gonna call? i2 Who will return your call? IBM You may have to adapt to standardized software, because i2 and IBM can't reinvent the wheel for every .com out there. And the .coms are in a hurry. Standardized software (more or less) = High Margins So if everyone on Ariba standardized on the same SCM they would be assured of seamless immaculate execution = High margins. From Yahoo Finance Profile HD owns and operates 846 do-it-yourself warehouse retail stores offering building materials, home improvement products and related furnishings. For the 26 weeks ended 8/1/99, net sales rose 27% to $19.38 billion. Net income rose 45% to $1.17 billion. Results reflect a 10% rise in comparable-store sales, the net additions of 167 new stores since the prior period, higher gross margins, greater employee productivity, and decreased S/G/A as a percentage of revenues. HD's gross margins and employee are about to improve still further, and this is whats driving our new economy. i2 may be able to save its customers much more than 50 billion by 2005. Painting this with a very broad brush Doug