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:
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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.
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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.