More Than 600 Customers Live on J.D. Edwards OneWorld. Dot.Com and Brick & Mortar Customers Alike Select J.D. Edwards to Achieve E-Business Agility

Event Summary

Continuing to increase market share in the E-Business arena, J.D. Edwards' solution is the backbone to a wide variety of markets and companies, ranging from large organizations to small businesses, enabling customers to successfully put their ideas into action and rapidly respond to changing business models. In addition to the more than 600 live customers, over 1,200 other organizations are currently implementing the OneWorld enterprise suite, a figure J.D. Edwards expects to rapidly increase during the upcoming fiscal year.

"OneWorld's international success is further evidence that J.D. Edwards continues to take market share from its competitors," said Michael Schmitt, J.D. Edwards senior vice president of worldwide sales and marketing. "Our OneWorld solution significantly contributes to J.D. Edwards' revenues, and is the fastest growing part of our business. Any organization, regardless of shape, size, or location, coupled with J.D. Edwards' OneWorld software, transforms the buying and selling processes and enables collaboration between the various industry players." Through its partnerships with industry leaders such as Ariba Inc. and Siebel Systems, and through the acquisitions this year of Numetrix Ltd. and The Premisys Corp., J.D. Edwards delivers uniquely robust and agile functionality in the areas of self-service, customer relationship management, e-procurement, and supply chain management. Whether a customer is a pure-play Internet company, or traditional enterprise extending its business to the Internet, OneWorld's functionality supports any business model to enable companies to get to market faster and achieve continuous return on investment. Additionally, OneWorld's multi-site international capabilities allow companies to quickly and efficiently expand operations globally.

Market Impact

We believe that J.D. Edwards should be pleased with its product's quality and initial market acceptance. This confirms the views we outlined in our research note on J.D. Edwards on September 1, 1999 (See TEC Technology Research Note: "J.D. Edwards - Creating OneWorld of Mid-sized ERP Users" September 1st, 1999), where we stated that OneWorld is currently one of the best and most comprehensive core ERP products for the SME market segment, particularly in terms of functionality, total cost of ownership and product architecture. The fact that the Company also recently penetrated markets outside of its traditional SME manufacturing and distribution strongholds is a further indicaton of its functional capabilities.

Nevertheless, we believe that the Company cannot afford to be complacent, for the following two reasons:

  • First, it is expected that the Company will report almost flat revenues for the fiscal 1999, which is far cry from management's ambitious predictions of a year ago to top PeopleSoft's ERP market share. To make things worse, J.D. Edwards recently lost its #4 ERP vendor position to GEAC, who recently acquired JBA International.

  • Second, the Company is still in for a great deal of painstaking integration effort, both with its above-mentioned recently acquired products and with products of its partners, like Siebel, Ariba, and Synquest.

User Recommendations

As a summary of our recommendations in TEC's note on J.D. Edwards on September 1, 1999 (See TEC Technology Research Note: "J.D. Edwards - Creating OneWorld of Mid-sized ERP Users" September 1st, 1999), we generally recommend including J.D. Edwards in an enterprise application selection long list for mid-market and low end Tier 1 companies (with $100M-$2B in revenue). However, any organization evaluating J.D. Edwards should only consider the existing functionality, and, in case of final selection, should negotiate the incorporation of new applications components now. Future clients are also advised to request the Company's written commitment to promised functionality, length of implementation, and seamless future upgrades, particularly for recently released products.

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