i2 Technologies is the largest and fastest growing vendor of supply chain management software with $456 million in revenue over the last twelve months and a 48% average growth rate over the last five years. For the second quarter of 1999, total revenues were $131.4 million, an increase of 57% over second quarter 1998 ($83.6 million). Net income in the second quarter was $8.5 million, compared to $0.6 million for the same period in 1998. Employment at i2 grew 123% from 1006 in 1997 to 2244 in 1998, with headcount currently at about 2400. The rapid expansion is fueled by a powerful sales and marketing machine and corporate development strategy that emphasizes speed over perfection. i2's product offering consisted of three applications as recently as 1996. Since that time, it has combined internal development with acquisitions of established vendors to achieve what is arguably the most comprehensive SCM offering of its peers. i2 is determined to challenge the large ERP vendors for CRM market space, as evidenced by its acquisition of SMART Technologies, a provider of internet-based CRM solutions. i2 plans to incorporate SMART's application technologies into its "Intelligent eBusiness" suite that will include applications to enable internet collaboration among trading partners, and support web-based ordering with real-time visibility to supply from multiple sources. *

Delivering on vision: While able to conceive and articulate architectural visions, i2 has been less successful at delivering fully developed, bug-free applications to support them. Clients and third-party integrators often discover the gap only after the implementation is well underway.
*

Business consultants, though skilled in Rhythm applications, often lack industry-specific knowledge. This is in part due to the rapid growth of the company and the inevitable learning curve faced by new staff. i2 relies heavily on implementation partners such as Andersen Consulting and PricewaterhouseCoopers.

Vendor Predictions

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Acquisitions: i2 continually demonstrates its willingness to make strategic acquisitions (Think Systems - '97, ITLS - '98, SMART - '99) in order to expand its product offering to new market segments.
o

It is likely that i2 will acquire a current SCE partner, such as IMI Corporation or EXE Technologies within the next 24 months. (80%).
o

Look for at least one more internet-based CRM or EAI company acquisition as i2 expands its eBusiness suite. (70%).
*

Growth projection: Expect 35-40% average growth over the next 3-4 years, less than previous years, but ahead of the rest of the market (70%).

Vendor Recommendations

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Continue existing initiatives in mid-market to increase market share, both internal development to scale down core applications and partnerships with mid-market systems integrators, such as Mastech.
*

Focus development efforts on reducing complexity of its product suite and integrating acquired technologies. RhythmLink, i2's integration platform for both its own modules and third-party products such as SAP, PeopleSoft, fails to deliver fully on its promise of seamless integration.
*

Leverage success in EHT to achieve better penetration into automotive and CPG markets: Over half of i2's revenue is confined to the electronics and high tech industry (57%). Its low penetration into other industry segments conflicts with its stated objectives, especially in the case of automotive (see Fig. 3).



SOURCE:
http://www.technologyevaluation.com/research/articles/i2-technologies-at-the-front-of-the-supply-chain-15263/

i2 Technologies is the largest and fastest growing vendor of supply chain management software with $456 million in revenue over the last twelve months and a 48% average growth rate over the last five years. For the second quarter of 1999, total revenues were $131.4 million, an increase of 57% over second quarter 1998 ($83.6 million). Net income in the second quarter was $8.5 million, compared to $0.6 million for the same period in 1998. Employment at i2 grew 123% from 1006 in 1997 to 2244 in 1998, with headcount currently at about 2400. The rapid expansion is fueled by a powerful sales and marketing machine and corporate development strategy that emphasizes speed over perfection. i2's product offering consisted of three applications as recently as 1996. Since that time, it has combined internal development with acquisitions of established vendors to achieve what is arguably the most comprehensive SCM offering of its peers. i2 is determined to challenge the large ERP vendors for CRM market space, as evidenced by its acquisition of SMART Technologies, a provider of internet-based CRM solutions. i2 plans to incorporate SMART's application technologies into its "Intelligent eBusiness" suite that will include applications to enable internet collaboration among trading partners, and support web-based ordering with real-time visibility to supply from multiple sources. *

Delivering on vision: While able to conceive and articulate architectural visions, i2 has been less successful at delivering fully developed, bug-free applications to support them. Clients and third-party integrators often discover the gap only after the implementation is well underway.
*

Business consultants, though skilled in Rhythm applications, often lack industry-specific knowledge. This is in part due to the rapid growth of the company and the inevitable learning curve faced by new staff. i2 relies heavily on implementation partners such as Andersen Consulting and PricewaterhouseCoopers.

Vendor Predictions

*

Acquisitions: i2 continually demonstrates its willingness to make strategic acquisitions (Think Systems - '97, ITLS - '98, SMART - '99) in order to expand its product offering to new market segments.
o

It is likely that i2 will acquire a current SCE partner, such as IMI Corporation or EXE Technologies within the next 24 months. (80%).
o

Look for at least one more internet-based CRM or EAI company acquisition as i2 expands its eBusiness suite. (70%).
*

Growth projection: Expect 35-40% average growth over the next 3-4 years, less than previous years, but ahead of the rest of the market (70%).

Vendor Recommendations

*

Continue existing initiatives in mid-market to increase market share, both internal development to scale down core applications and partnerships with mid-market systems integrators, such as Mastech.
*

Focus development efforts on reducing complexity of its product suite and integrating acquired technologies. RhythmLink, i2's integration platform for both its own modules and third-party products such as SAP, PeopleSoft, fails to deliver fully on its promise of seamless integration.
*

Leverage success in EHT to achieve better penetration into automotive and CPG markets: Over half of i2's revenue is confined to the electronics and high tech industry (57%). Its low penetration into other industry segments conflicts with its stated objectives, especially in the case of automotive (see Fig. 3).



SOURCE:
http://www.technologyevaluation.com/research/articles/i2-technologies-at-the-front-of-the-supply-chain-15263/