Vendors regroup around new CEOs
By Staff -- Manufacturing Business Technology, 10/1/2004 12:00:00 AM
Manugistics and i2 Technologies both announced this past summer—within a 24-hour time frame—that leadership changes were in the works at the two supply chain planning (SCP) vendors.
Manugistics appointed Joe Cowan as CEO, replacing Gregory Owens, who will remain chairman of the board. One day later, i2 announced that it was looking to replace founder Sanjiv Sidhu as CEO, who likewise will continue as chairman. Announcements came amidst continuing reports of poor financial performance.
"Manugistics and i2 lack clear identity in the market. Both are struggling, realizing they can't be all things to all people. It's hard to buy when you don't know who they are," says Lora Cecere, research director of the supply chain group at Boston-based AMR Research.
Both companies have been struggling in a down SCP market, hit hard by a combination of forces, including the dot-com debacle; companies looking for smaller, more focused solutions; and increasing market incursions from big ERP vendors pushing down into SCP market space from above and smaller supply chain execution vendors pushing up from below.
Cowan was formerly president and CEO at EXE Technologies, a provider of fulfillment and warehouse & distribution software, which was acquired by SSA Global late last year. Sidhu will continue to serve as CEO of i2 until a search firm it has hired finds a replacement—a process likely to take three or four months.
According to Cecere, the charter before both new CEOs will be to "restore relevancy in the market" by bringing greater focus to their respective companies, aimed ultimately at boosting sales. Though the official word on Cowan's appointment is that he will be focused on returning Manugistics to profitability, industry speculation is he'll work to position the company for acquisition, as he did previously at EXE.
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