|Company Name:||i2 Technologies, Inc.|
|Company Type:||Public (NASDAQ:ITWO)|
|Location:||Dallas, Texas, USA|
|Key People:||Sanjiv Sidhu, Founder and Chairman Emeritus|
Jack Wilson, CEO
Michael J. Berry, CFO
Hiten Varia, EVP President Greater Asia Pacific
Aditya Srivastava, SVP, R&D and CTO
|Industry:||Supply Chain Management|
|Revenue:||$250 million USD|
i2 Technologies is a supply chain management software and services company, founded in 1988 by Sanjiv Sidhu and Ken Sharma in Dallas, Texas (USA). The company was initially known as Intellection prior to being renamed i2 Technologies, Inc.. Today it has more than 1500 customers in a wide variety of industries. i2 is still headquartered in Dallas, TX and has major offices in Japan, Korea, Belgium (Europe), and Australia. It primarily sells through a direct sales force, but also has a reseller channel that includes global organizations such as IBM and TCS. On November 6 2008 I2 shareholders approved a merger with JDA Software, but this has been now called off.
The i2 User Group was formed in 1996 with six companies as founding members. Today, the User Group has more than 150 member companies. Although independent of i2, the two organizations have a strategic relationship particularly around product direction.
Sanjiv Sidhu claims to have arrived independently at the same conclusions as cognitive psychologist George A. Miller regarding the number of elements that one can process effectively at any given time. His official biography states:
Based on his observation that even the smartest people can juggle no more than nine variables when making decisions, he proposed a design for computer software based on artificial intelligence and advanced simulation techniques.
The company grew rapidly during the 90's to reach its zenith at the height of the internet market in 2000, when it crossed the $1B revenue mark. Rapidly falling revenues followed from 2002 to 2005, when the company hired Michael McGrath of PRTM to be its CEO after an extensive search. Under Mr. McGrath's leadership the company was able to stabilize and reach profitability until mid-2007. At that time Mr McGrath was replaced by Dr. Pallab Chatterjee, who held the position of Interim CEO until being formally named CEO in May, 2008.
Factors in the shrinking of the company include the bursting of the Internet bubble and also the strategic competition from SAP. Concerning the latter, SAP, moving from an initial position of partnership with i2, decided in the late 1990s to compete directly with supply chain companies (i2 being the most prominent); its supply-chain solution, initially called APO, had the advantage of being integrated with the rest its ERP solution: in the domain of the large multinational clients, the twin arguments of total integration and single-vendor sourcing proved decisive.
On 11th August 2008, a merger agreement was announced for JDA Software to acquire i2 Technologies for an enterprise value of approximately $346 million in cash, but this was called off on 4th December of the same year.
One of the bright spots in i2's legacy is the creation of Aidmatrix, a nonprofit organization focused on creating supply chain technology solutions for the humanitarian aid sector. Now an independent organization of some renown, the idea and much of the initial effort for Aidmatrix came from i2 employees. Aidmatrix was widely recognized for the assistance provided to the food bank following hurricane Katrina.