PracticePeople In PracticeTechnology/Web Reviews – JD Edwards targets mid-market.

Technology/Web Reviews - JD Edwards targets mid-market.

ERP software provider targets $200bn sector with new products

Software company JD Edwards is set to target medium-sized companies with a number of tailored products and services.

The company, which suffered falling revenues last year and was forced to lay off hundreds of workers, has identified 200,000 ‘market opportunities’ that could yield potential revenues of more than $200bn (£142bn), chief operating officer Hank Bonde told a press conference last week.

Details of the new drive were revealed at its user conference in Denver to nearly 8,000 people. The company currently has 6,000 customers, many of whom are large companies with billion-dollar annual revenues. They typically pay around $400,000 for an ERP solution.

However the new One World advanced planning solutions specifically tailored for ‘mid-market-enterprises’ will cost less than $150,000. Beneficiaries of this ‘very aggressive pricing’ will typically be companies whose turnovers are less than $500m per annum.

Announcing the new products, Bonde quoted analysts from AMR Research who have predicted that the enterprise commerce market will grow from about $108bn this year to nearer $264bn in 2005.

And he said the move to target smaller companies was part of a drive to ‘revitalise’ JD Edwards.

‘We have significantly reduced the layers of management between our executives and customers, trimmed $75m in non-value-adding costs from our business, reorganised our worldwide sales territories, and strengthened our investments in product development, marketing, training and services. This has helped create a reinvigorated, focused JD Edwards.’

CEO, president and chairman Ed McVaney added: ‘Too often, vendors offer mid-enterprise companies either overly complex and expensive technologies geared for large enterprises, or rudimentary software that barely meets their current, let alone future, needs.’

But chief marketing officer Les Wyatt said that was no longer the case: ‘JD Edwards now offers much-needed advanced planning solutions to the often-neglected but growth segment for collaborative supply chain applications.’

The company also announced a deal with Andersen to target the automotive industry and said that reports of the death of application service providers were exaggerated by reporting 50 new ASP customer last month.

More information at: www.jdedwards.com.

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