i2 Technologies, Inc. - A Case study

1. i2 Technologies, Inc.- A Case study Arunkumar Kandaswamy Hemnandan Patil Jocelyn Choo Ramanan S. Tiruvannamalai Shivasai Rengarajan

2. Agenda • Company Background • Vision & Mission • i2’s product offering • Key issues • SWOT analysis • Recommendations • Questions

3. Company Background • Established in 1988, Irving, Texas • Core competence – SCM software (B2B) • Public in 1996 • First project funded by Timken steel • 1,500 employees with 65% graduates & annual turnover of $213 million in 1997 • Ranked 8th in 100 “Hot growth companies”- Business week(1997)

4. Vision & Mission Vision: “We want to be known as an electronic business process optimization (e-BPO) company” Mission: “We will add $50 billion of value in growth and savings for our customers by the year 2005”

5. Transition in 1990 from "Factory planning company" to "Supply chain optimization company" "Take care of the customer and everything will take care of itself."— Ken Sharma

6. i2 product offering • Focuses on supply chain planning segment • Product – RHYTHM • Two dimensions • Type of decisions to be made (ie Buy, make, move , store, or sell) • Planning time horizon (Time from decision to task occurrence) • Products of RHYTHM include • Demand planner, Factory planner, Supply chain planner, Distribution planner and Transportation planner

7. Key issues • Product strengths • Talented knowledge workers • i2’s marketing & sales strategy: Effective client engagement methodology

8. Key issues (Cont.) • Sound management philosophy • Demand for SCM software in dynamic marketplace • Intense competition • Transition to eBPO: Diversify or Specialize

9. Product strengths • Innovative use of IT and OR techniques • Object-Oriented Programming • Optimization techniques • Custom products • Strategic acquisitions • Consistent high investments in R&D • 20% of total revenue in R&D(1996) to 25% in 1997 • Academic research

11. Talented knowledge workers • Highly knowledgeable and educated workforce • Graduates and PhD’s • Industry specific experts • Backbone for delivering innovative products • Bright professionals working towards strong company vision

12. i2’s marketing & sales strategy • Ability to sell ideas • Identify opportunities and apply IT • Strong sales philosophy • Effective implementation technique • Implement different products based on success of prior implementation • Effective client engagement process • Satisfied customers

13. Sound management philosophy • Vision for success • Motivation from top management • Diversify out of the niche market by moving towards eBPO - Sidhu • Will the vision and confidence help in their transition to eBPO?

14. Demand for SCM software in dynamic marketplace • Demand for SCM software • Trends in ERP implementation • Single supplier option for ERP and SCM • Global financial crisis • i2 stock lost 25% of its value in a single day

15. Intense competition • Competitors - Manugistics, Inc.,Numetrix, Inc. • Price war • SAP offers SCP package with lower price tag • Competition from ERP vendors

16. Transition to eBPO: Diversify or Specialize • Expand beyond supply chain optimization • Finance, Marketing and Human Resources • Focus on domain knowledge • Diversify or Specialize ???? • Is i2 ready to go………………

17. SWOT analysis

18. Recommendations • Don’t diversify – specialize in your core area • Acquisitions not the only solution • Strike partnership or alliance with ERP vendors • Regain employee confidence - change management • Continuously fund academic research projects at universities

19. Questions • Diversify or Specialize, which would you prefer and why? • What should competitors do if i2 • implements e-BPO? 3. What are the key factor(s) for i2’s success?

20. Questions (Cont.) • Do you think making schedulers as Internal Champions is a good idea? Comment from i2’s and Client’s perspective • What do you think are the factors for i2 • lossesover the years?