I2 Technologies Explained

Company Name:i2 Technologies, Inc.
Company Type:Public company (NASDAQ:ITWO)
Foundation:1988
Location:Farmers Branch, 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
Num Employees:1300
Industry:Supply Chain Management
Enterprise Software
Revenue: $250 million USD
Homepage:www.i2.com

i2 Technologies was 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..

JDA Software Group acquired i2 Technologies in January 2010.

User group

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.

History

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. Jack Wilson is current CEO who took over from Dr. Pallab Chatterjee.

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 August 11, 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 December 4 of the same year. But JDA Software Inc. came back again for a merger and acquired i2 Technologies on January 28, 2010.

Humanitarian Efforts

i2 created Aidmatrix, a nonprofit organization focused on creating supply chain technology solutions for the humanitarian aid sector. Now an independent organization, the idea and much of the initial effort for Aidmatrix came from i2 employees. Aidmatrix provided assistance to the food bank following hurricane Katrina.

SEC fraud settlement, 2004

In 2004, i2 paid a $10 million penalty to the Securities and Exchange Commission, and agreed to a cease-and-desist order, to settle charges that it had misstated $1 billion in software licensing revenues.[1]

Major competitors

See also

External links

Notes and References

  1. http://www.sec.gov/news/press/2004-81.htm SEC fraud settlement press release