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JDS Uniphase

James Engesether BCIS 340 Fall 2008 Case Study 13.2. JDS Uniphase. JDS Uniphase. Headquartered in San Jose, CA Product of a 1999 merger between JDS Fitel and Uniphase Both specialized in innovative fiber optic networking technologies

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JDS Uniphase

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  1. James Engesether BCIS 340 Fall 2008 Case Study 13.2 JDS Uniphase

  2. JDS Uniphase • Headquartered in San Jose, CA • Product of a 1999 merger between JDS Fitel and Uniphase • Both specialized in innovative fiber optic networking technologies • Al Etterman (CIO) believes a company’s IT falls into two categories • Technology that advances the business • Technology that runs the business • Sees no reason for staff to develop or maintain technology that runs the business

  3. Company Info • 14 facilities in several countries • The Company faced hard times shortly after 2000 when the internet bubble burst • 2004 revenue of $636 million was less than half of 2000 revenue • 2004 staff of 5,500 was a third compared to 2000 • They acquired several companies in early 2000 when business was good • So instead of using a costly ERP system they used an ASP system to save money • They chose Oracle’s software-as-a-service business “On Demand”

  4. Software • Outsourced many of its IT services to Oracle • Every employee can access its database and ERP software anywhere in the world • Software hosts in Austin—Oracle can manage database—allowed JDSU to reduce its IT staff by a third • http://www.oracle.com/index.html • Etterman says he would rather spend “business-facing” resources than database administration. Wants to advance the organization, which nobody else can do better

  5. Products • Developed and sold only devices installed in optical networks but they became a commodity • Changed product selection to include: • Components for big screen TVs • Paint that changes color by viewing angle • Forgery proof ID marks for money and packaged drugs • 50% of revenue is now comprised of their product expansion • JDSU did not have to incur costs for adapting the software for new products • http://www.jdsu.com/index.html

  6. IT and Operations • Database and hosted ERP system allows other facilities to begin production of new products immediately without training • They can work off the specifications in the central system designed by other facility locations • http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-18-2003/0001892970&EDATE= • JDSU has reduced its IT budget by sixty percent using Oracle E-Business Suite and Oracle Outsourcing to significantly restructure its IT operations. • This restructuring is expected to save them $35 million annually.

  7. Internal IT • JDSU internally built a data warehouse and applications for finance and order processing • JDSU programs are run off of Oracle’s database so when Oracle upgraded its DBMS to version 11i JDSU operations were not affected • Another function that is not outsourced is its business systems analysis • Employees are a bridge between workers and the IT they need—Etterman wants to keep this intelligence in-house—when new needs arise they communicate this in-house info to Oracle

  8. Suggestion Success • One IT professional at Oracle suggested that order information be accessible to customers online so they can check order status • Oracle made it accessible and it resulted in faster service and reduced the number of phone calls made to them • They continue to seek ways to support business opportunities by using hosted software

  9. Question 1 How many facilities does JDSU have worldwide? • 14 • 40 • 19 • 9000

  10. Question 2 What event occurred in 2000 to depress the earnings and employment rate of JDSU? • Sports Night was cancelled on ABC • Internet Bubble Burst • Tom Cruises’ Mission Impossible II grossed the highest earnings of any movie • British premiere of Lars von Trier’s Dancer in the Dark

  11. Discussion Question • Do you see any risks to JDSU in its arrangement with Oracle? • Why or why not?

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