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VENDOR NOTE
.
JDA Software
A New Rejuvenated Company Catering
to the Entire Omnichannel Supply Chain
By P.J. Jakovljevic, ...
JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
www.technologyevaluation.com
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JDA ...
JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
www.technologyevaluation.com
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JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
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JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
www.technologyevaluation.com
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JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
www.technologyevaluation.com
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JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
www.technologyevaluation.com
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JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain
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JDA Software FOCUS15 Report

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  1. 1. VENDOR NOTE . JDA Software A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain By P.J. Jakovljevic, TEC Principal Analyst www.technologyevaluation.com Technology Evaluation Centers
  2. 2. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 2 JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain The recent JDA FOCUS 2015 was a refreshing event, where the leading retail and supply chain management (SCM) software vendor JDA revealed a drastic change in company culture and continued to reinforce its unified platform for helping its customers take a holistic approach to managing their supply chain needs. JDA, with 400 active and granted patents and 4,000 customers to date, celebrated its 30th anniversary together with 2,000 attendees at the event. Headed by a new CEO, JDA is looking to change its image from a vendor which had traditionally carved out its future without much regard for the opinions of industry analysts and market observers to a company that closely caters to changes in the market and to its clients’ SCM needs during an age of omnichannel commerce and digitalization. Expanding Software Capabilities Through Acquisitions Founded in the US in 1985, the company initially focused in the 1980s on offering IBM hardware–based software and services to retailers (JDA actually started in Canada in 1978 as an IBM mid-range systems reseller. Having been one of the first business software companies to focus solely on retailers’ needs such as merchandize and assortment planning, it quickly garnered an impressive global retail install base. In 1998, JDA made the first major acquisition, Arthur Retail, a provider of retail planning and allocation software. In 2000, JDA acquired Intactix, a provider of solutions for retail space management, and in 2001, it acquired E3 Corporation for its retail and wholesale distribution software. Most of those acquired products were best-of-breed retail software solutions, which JDA did not integrate or converge into a coherent strategy and platform. In fact, JDA system implementations and integrations with enterprise resource planning (ERP) systems comprised lengthy engagements and hefty professional services revenues. Still, the competition in the retail space intensified with some astute acquisitions in the 2000s by SAP, Microsoft, and Oracle. JDA then acquired Manugistics in 2006 and i2 Technologies in 2010, expanding its product set with demand and supply management, pricing optimization, and transportation and logistics solutions. These acquisitions brought an ample SCM functional footprint to JDA, as well as many suppliers and manufacturers customers to its fold (mostly food consumer goods manufacturers from Manugistics and discrete manufacturers such as hi- tech and automotive from i2). In fact, 79 of 100 CPG manufacturers are JDA customers, and one of three cars are reportedly planned via JDA.
  3. 3. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 3 The company merged with RedPrairie in 2012, and gained leading warehouse management and workforce management (WFM) capabilities. JDA now had arguably the best retail merchandizing solution in the market, at least the top two supply chain planning (SCP) and sales & operations planning (S&OP) solutions, as well as the best transportation management system (TMS), warehouse management system (WMS), and WFM solutions. Transportation strategic modeling and optimization capabilities are still second to none. But the company was reactive to the market trends and customer requirements, such as offering software hosting and managed cloud service, rather than visionary and proactive. Developing a Unified Platform But in 2013, JDA announced the release of JDA eight, a unified cloud-based SCP, optimization, and business analytics software product that reflects the global software trend of multi-product offerings on a single platform. The offering contained more than 30 different products in an effort to connect critical supply chain functions, from forecasting to transportation, with built-in business analytics. But, while touting convergence, JDA eight did not include the former RedPrairie’s products. JDA’s “platformization” really took shape in 2006 with the scalability and configurability of the Java platform from the acquired Manugistics and, in 2010, with the concepts of service-oriented architecture (SOA) and orchestration from i2’s platform (see figure 1). Figure 1. JDA Platform Evolution New CEO, New Company Culture The company underwent a profound cultural change under new CEO and Chairman Bal Dail, who took over in mid-2014. Dail came from the vendor’s new owner New Mountain Capital, which had already done a decent job with Deltek and RedPrairie.
  4. 4. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 4 Figure 2. JDA CEO Bal Dail at JDA FOCUS 15 At the event, Dail candidly admitted JDA’s past arrogance and current promise to engage customers, partners, and analysts. In late 2014, the vendor changed its unexciting “JDA – the Supply Chain Company” mantra to “JDA – Plan to Deliver.” The new branding had a bifurcated meaning: one denoting the software’s ability to cater to the entire supply chain planning and execution cycle and the other referring to the vendor’s intent to deliver its brand promise to its customers and partners. According to Dail, integrating the JDA products is high on the priority list, thus making them easy to use. The new ambitious upcoming platform called JDA Flex promises to integrate all of the JDA products, and provide a friendlier user interface (UI) (see figures 1 and 3). It is based on various open source tools and will have social, mobile, in-memory computing, big data, and other traits—it is quite similar to what the competitor Infor has doing of late (ION, Ming.le, CloudSuites, etc.). JDA Flex will be based on the concepts of enterprise service bus (ESB), business process management (BPM)/process orchestration, business activity monitoring (BAM), and others. All new JDA products will be developed on the Google Cloud Platform, which was picked as the preferred platform as a service (PaaS), while existing products will be hosted in the IBM Cloud infrastructure as a service (IaaS) offering. JDA has had its own in-memory capabilities since the launch of the aforementioned JDA eight platform. However, given that many JDA customers are also SAP customers, JDA FLEX will integrate with the SAP HANA platform for some shared big data analysis.
  5. 5. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 5 Figure 3. JDA FLEX Architecture Layers Along the lines of new UI and user experience (UX), there are new WMS applications that are persona based and mobile enabled. The new prescriptive configuration tool takes much of the complexity out of WMS implementations by automatically configuring the WMS based on a series of simple questions asked of the user. The new WMS UX is a series of role-based apps that contains workflows for task completion in a user-friendly manner—even if the workflows extend between systems. Offering JDA Intelligent Fulfillment Another major strategic endeavor for JDA is to be the “leader” in the broadest meaning of supply chain. The company will focus on three major verticals: manufacturing and distribution, retail and services, and logistics providers. Its vast portfolio has been logically grouped into five major suites: retail planning, manufacturing planning, intelligent fulfillment, category management, and store operations. As one example of leadership and solving customers’ problems, according to Dail, the vendor will offer intelligent stores and fulfillment, with the goal of providing retailers with profitable omnichannel deliveries and helping them better satisfy their customers. The new reality is that the connected and empowered consumer is the new boss of each retailer. Thus, retailers and their suppliers must have a next-generation of SCM solutions that have the look and feel of consumer apps (on mobile devices with simple apps and intuitive analytics), connectedness (via cloud, mobility, social networks), and that can handle the convergence of the digital and physical worlds. They need to shift from a product-centric to a customer-centric approach. Instead of the linear supply chains of the past (plan, source, make, deliver), today we all work in a networked way, with many of those roles changing over time
  6. 6. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 6 (e.g., manufacturers being retailers as well). Thus, the entire network (i.e., all the participants and trading partners) must execute against the single plan in an extended enterprise due to the consumer demand volatility. The concept of Flowcasting can help in that regard, i.e., why forecast what you can calculate? In other words, retailers will still forecast based on their point of sales (POS) data, but their suppliers should know the actual demand at the retail store. Research shows that while 90 percent of retail sales still occur in the store and 65 percent of shoppers use digital means for their purchases, only 30 percent of retailers offer the same data in-store and online and have inventory visibility over their entire supply network. This type of visibility will help retailers conduct profitable omnichannel customer commerce. Figure 4. JDA Intelligent Fulfillment But what about returns, which is a huge expense item? To provide intelligent fulfillment as well as to better engage partners and ecosystem, JDA has recently partnered with IBM, and will thereby supplement the JDA Intelligent Fulfillment suite with e-commerce and distributed order management (DOM) capabilities. The IBM partnership is progressing nicely, with a lot of work being done on the integration using the aforementioned JDA FLEX platform (see figure 4). Intelligent Fulfillment will enable the concepts of click and collect, destination-driven planning (understanding the place of demand vs. the place of fulfillment, which are often not the same in omnichannel), dynamic order splitting, and more. Flowcasting, a key initiative of this year, which comes from former RedPrairie, is being blended into the JDA Intelligent Fulfillment suite as the forecasting engine that drives all of the planning decisions. Within the Intelligent Fulfillment suite, Flowcasting feeds the replenishment and fulfillment planning process.
  7. 7. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 7 Flowcasting also serves as an input to the Planning suite, of which supply chain and operations planning (S&OP) is a key process. Other Noteworthy SCM Capabilities While the digital and physical worlds are converging, we should never neglect the importance of labor in today’s omnichannel world, with retail stores becoming fulfillment centers and light warehouses. In the WFM realm, JDA is bringing the many advanced forecasting and scheduling capabilities of the store to the distribution center (DC), such that the entire organization can optimize the workforce across all upstream supply chain and store operations. With very strong WFM capabilities in retail scheduling and forecasting and budgeting (down to 15-minute granularity), JDA is increasingly competitive with the likes of Kronos, Infor, Ceridian Dayforce, and Reflexis. JDA has also recently developed a dozen or so mobile apps in WFM and WMS, which were another major attraction at the conference. Conclusion The main message of the JDA FOCUS 2015 conference was that JDA is now a different company with a different drive—trying to no longer innovate within silos, but rather innovating in a coherent and synergistic manner for the benefit of the entire organization. JDA aims to promptly respond to emerging market trends in this age of digitalization and omnichannel commerce. The software vendor also aims to holistically cater to its customers’ supply chain needs, from planning to execution and delivery—and this is no small matter. Still, the company must continue to solve its customers’ unique problems but without getting entangled in endless special “one-off” projects that cannot be duplicated for other customers. Retail.Me, the recently unveiled consulting service that leverages intelligent customer analytics for retail assortments, may be able to help the vendor in this regard. Retail.Me would be one good example of helping retailers with their perennial problem—proper assortments and allocations to stores, without engaging an army of consultants for years.
  8. 8. JDA Software—A New Rejuvenated Company Catering to the Entire Omnichannel Supply Chain www.technologyevaluation.com 8 About Technology Evaluation Centers Technology Evaluation Centers (TEC) is the world’s leading provider of software selection resources, services, and research materials, helping organizations evaluate and select the best enterprise software for their needs. With its advanced decision-making process and software selection experts, TEC reduces the time, cost, and risk associated with enterprise software selection. Over 3.5 million subscribers leverage TEC’s extensive research and detailed information on more than 1,000 leading software solutions across all major application areas. TEC is recognized as an industry-leading software selection advisory firm offering resources and services both online and onsite. For more information, please visit www.technologyevaluation.com. Technology Evaluation Centers Inc. 740 St. Maurice, 4th Floor Montreal, Quebec Canada, H3C 1L5 Phone: +1 514-954-3665 Toll-free: 1-800-496-1303 Fax: +1 514-954-9739 E-mail: asktheexperts@technologyevaluation.com Web site: www.technologyevaluation.com TEC, TEC Advisor, and ERGO are trademarks of Technology Evaluation Centers Inc. All other company and product names may be trademarks of their respective owners. © Technology Evaluation Centers Inc. All rights reserved. JDA20150526
  • brianzheng

    Jan. 30, 2016

JDA Software FOCUS15 Report

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