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IDII Software Newsletter - Vol 1 No 3 - March 20th 2000 

To assist the professional dealing with software in Warehousing Distribution, Logistics, and the Supply Chain.

Techniques, Vision, & Educational Thoughts

"Business-2-Business [B2B]: To B2B or not to B2B?"

The B2B craze is the hot topic today among every Software firm and Industry Analyst.  As one news article so adequately stated, “B2B-Hot, B2C-Not,” can pinpoint the overall mood today.  Why?  The answer is simple—Money.  The B2B space will grow to $1.7 - $3.5 trillion USD by the year 2004 depending on which analyst’s estimate you believe, while the B2C market space will only amount to a fraction of the B2B space.  With the realization of this fact, it has now become a sprint to the races. 

What is the Business-2-Business [B2B] craze all about?  B2B really refers to the Web Marketplaces or Independent Trading Exchanges [ITEs] that facilitate transactions between businesses and their partners and/or suppliers over the Web.  The B2B growth is currently transcending into (2) key initiatives:  (1) Strategic Joint Ventures with Tier-1 Companies to build Industry specific Exchanges or Marketplaces [i.e., Automotive Exchange with Ford, GM, and Daimler Chrysler; and the Retail Exchange with Sears and Carrefour], and (2) Strategic Solutions to enable companies to automate via the Web their Direct and Indirect Procurement needs [i.e. ConAgra signs recent Procurement Contract for DataStream’s iProcure Solution].


With the simple understanding of B2B, here is a sample of the latest headlines bombarding the B2B front:

·         SAP forms new subsidiary, SAPMarkets, to be based in Silicon Valley, California.  The new venture will receive $484 MUSD from SAP, their parent company, and focus on building marketplaces to facilitate transactions between businesses and partners/suppliers over the Internet [3/15/00].

·         Oracle announces (3) Strategic Joint Venture Marketplaces—Automotive Exchange [Ford], Retail Exchange [Sears, Carrefour], and Small C-Stores Exchange [Chevron].

·         J.D. Edwards appoints Michael Schmitt to lead their B2B Unit in leveraging their Active Marketplace, Active CRM, and Active Supply Chain products in the hot B2B space.  In addition, J.D. Edwards will leverage their existing tight integration to Ariba and Siebel’s products [3/14/00].

·         i2 Technologies has announced several large transactions over the last few weeks: (1) Acquisition of Aspect Development for $9.3 BUSD in stock, the largest ever software acquisition [3/13/00]; (2) the announcement of the Joint Venture Aerospace Portal/Exchange with Honeywell and United Technologies; (3) the Strategic Alliance with IBM, upon which IBM will invest $637 MUSD in both i2 and Ariba [3/8/00].

·         Ariba announces Strategic Procurement Contracts with American Express and Dell Computer upon the heels of IBM’s Strategic Alliance and equity investment.  In addition, Ariba forms with Chevron a Joint Venture Oil/Gas Trading Exchange.

·         Commerce One has strategic wins too, (1) Partner in the unified Automotive Exchange with General Motors; (2) Joint Venture with Ispat International to build a Metals Industry Exchange; and (3) Joint Venture with Shell Oil to deploy an Oil/Gas Exchange

What do we make of all this activity?  It is definitely a foot race in which the Established, Global Enterprise Software firms—SAP, Oracle, J.D. Edwards, and i2 Technologies—will dominate and exploit the revenue boom in the B2B sector during the next few years, along with the early adopters of Ariba and Commerce One.  What do all of these firms have in common?  Visionary management teams who are deploying the necessary resources with “strategic wins” to build company and industry momentum in the exciting B2B space.  The boom has begun and will most likely surpass the ERP boom of the early-mid 1990’s.  Why else would the market justify a 425% market cap increase in Oracle’s stock over the last (6) months, or a $25 BUSD market cap for Ariba, a B2B firm with only $63 MUSD?

(Article by Jared S. Faellaci; jfaellaci@attglobal.net)

Oversights

"Another WMS Stock Goes Up, Up, and AWAY!"

TECSYS (WMS) has gone from a low of $2.00 to $31.75 (current price) in less than a year! The company is traded on the Toronto Stock Exchange(TSE:TCS) asTCS. Thanks Marc Wulfraat of TECSYS for keeping us informed. In addition, LIS (WMS) announced revenue growth of 77% for fiscal 1999. 70% of that growth was in license revenue.

Software Company FOR SALE

"WMS Company is For Sale - Owner is Retiring"

An established WMS vendor is selling the company and their WMS solution. Current solution works well with 3PL's and has a good installation base. If interested, contact Philip Obal of IDII at 918-464-2222 and we will provide more details & put you into contact with the seller's representative.. Serious inquiries only.

IDII News

  • Distribution Computer Expo - April 4-5-6 in Chicago. This is one of the best North America trade shows for looking at Software. IDII will be there to review software solutions. If you are searching or showing new ERP, WMS, TMS, LES or related software - then this is the place. For more information on the show, call 800-338-4112. Or visit the website at www.logistar.com. Seminars are on the 4th and 5th. Exhibits are on the 5th and 6th.

  • FREE Professional BOOKS. Why be surprised? We have started a list of sites offering FREE professional books. The internet provides a free vehicle to pushing/pulling information. As a valuable service to our subscribers and clients - go to our website at www.idii.com and click on FREE Professional Books. The URL is http://www.idii.com/freebook.htm. If you know of more free professional (computer, programming, logistics, warehousing, supply chain, purchasing, e-commerce) - then send a list of them to editor@idii.com.

Software Company News

  • Epicor (ERP) - Frost & Sullivan today announced that it has selected Epicor Software Corporation (NASDAQ: EPIC), the largest provider of integrated enterprise and eBusiness software exclusively for midmarket companies, as the winner of its 2000 Market Engineering Customer Focus Award. Through its introduction of industry-tailored maintenance, repair and overhaul (MRO) software, Epicor has become a major support-software force in industries that have been, for the most part, ignored in the past.. Note: In January, Epicor announced the release of Impresa 7.0, a major upgrade of its enterprise resource planning (ERP) system for MRO.
  • eDM Enterprise Data Management (WMS,NT) - Announces Axiom WMS for small and medium sized warehouses. Runs on NT, Novell, SQL Server, and reports can be extended via Crystal Reports..
  • Kewill (WMS, ERP) - Announces new Enhancements of MAX 3.5 ERP Suite. Features include HTML-based user interface for Systems Manager, Engineer Change Order module, EDI module includes international functionality with EDIFACT support and remote paging for instant nofication of failed transmissions. Other enhancements listed as well.
  • Sonica Software Corporation (WMS, NT, Unix, Solaris, Linux) - Announce "Cooperative with Arizona State University's College of Business" Supply Chain Management students in the nationally-ranked ASU MBA program will have access to Sonica's Sonictrack (WMS) product beginning in the fall. Eventually the lab will also be used in the undergraduate classes as well.

  • Sonica Software Corporation (WMS, NT, Unix, Solaris, Linux) - Announce Sonictrack-ifs - Configurable Internet Fulfillment Solution. Built on top of the Sonictrack WMS, that permits standard API for communicating with web-based order entry system that includes available to promise capabilities, real-time inventory and order status updates as well as parcel carrier confirmation.
  • SAP (ERP) - (Ticker: SAP) - Annouce mySAP.com Marketplaces, mySAP.com Workplaces, mySAP.com Business Applications, and mySAP.com Application Hosting. SAP and BackWeb announce alliance to bring new push technology to RFPs and RFQs. EDITOR NOTE: if you are in a thriving ERP / Supply Chain Software Company - ask yourself - Has your company taken the time to register my.COMPANY.com? myCOMPANY.com? Do it now.

  • Tecsys (WMS) (TSE: TCS) - Announces New Product LIne for Doc-Com companies. New product is FullStream (TM). Modules include online order capture, online order status, order management, fulfillment management, warehouse management, transportation routing, reverse logistics management, datamart key performance indicators and datamart post-sales analysis.

Websites To Check Out

www.howardway.com – Howard Way Newsletter covers warehousing issues from warehouse design, software, and material handling. Past issues are on the website..
www.TechnologyEvaluation.com – New site for technology/software information and evaluation. Must register, but it is a free information site. Well worth your time.

Quote to Ponder

"Don't curse the darkness -- light a candle.." Chinese proverb.

Scripture to Ponder

"For I have learned in whatsoever state I am, to be content:
I know how to be abased, and I know how to abound.
Everywhere and in all things I have learned both to be full and to be hungry,
both to abound and to suffer need.
"


- - Paul - - Philippians 4:11-12

About This Newsletter

We educate and share news on software for warehousing, transportation, shipping, packing, slotting, loading, optimization, and enterprise wide software solutions. This free newsletter is published twice a month and is targeted toward supply chain professionals involved in software. Currently, it is only available electronically. Feel free to forward this newsletter to others that you know. One may quickly subscribe by accessing our website at www.idii.com. To submit information to be considered for inclusion in our newsletter, send any news, events, press releases, research, and newsletters to editor@idii.com. The current and back issues of our E-Software Newsletters can be accessed at www.idii.com/esn

© 2000 Industrial Data & Information Inc. All Rights Reserved.. Trademarks belong to respective trademark holders. Information accuracy is not guaranteed due to variety of sources.

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