When PeopleSoft acquired J.D. Edwards, it got an excellent Enterprise Resource Planning (ERP) system, strong Supply Chain Planning (SCP) products, and nearly 6,000 manufacturing customers. Since the acquisition, PeopleSoft has continued to improve its functionality and has added depth and manufacturing experience to its marketing, development, and field organizations.
The Bottom Line: With the proven J.D. Edwards now under its wing, PeopleSoft’s manufacturing and supply chain strategies have become excellent products, with good vision and impressive new capability in SCP and lean manufacturing. However, in order to capitalize on these investments, PeopleSoft must begin to build global awareness and acceptance of PeopleSoft as a leading player in manufacturing.
What It Means: PeopleSoft is concentrating on two of the hottest topics for manufacturing executives--demand-driven manufacturing and lean manufacturing--in an effort to gain market and mindshare in manufacturing. The demand-driven initiative is being led by the development team in Toronto--the group that originally built the innovative Numetrix advanced planning products (which J.D. Edwards acquired several years ago). The product has been augmented with sophisticated forecasting, demand consensus, and plant scheduling for process and discrete manufacturing environments.
Meanwhile, at J.D. Edwards’ former home base in Denver, a large team is working to incorporate lean manufacturing into the EnterpriseOne product line. PeopleSoft has also partnered with lean manufacturing consulting firm JCIT International and its Demand Flow methodology. In October 2003, PeopleSoft acquired the rights to JCIT’s specialized software technology for flow-line scheduling, kanban sizing, takt time calculation, line design, and other functions. In addition to the Intellectual Property (IP) and credibility that it derives from the relationship, PeopleSoft has taken advantage of its proximity to the JCIT headquarters in Colorado to educate everyone involved with the products (development, marketing, sales, and others) on lean manufacturing techniques.
Recommendations: Existing PeopleSoft manufacturing customers and companies looking for new ERP systems should take a look at the new functionality that PeopleSoft is adding. These represent real innovation in ERP design and support two of the most innovative new management techniques in manufacturing.
Conclusion: PeopleSoft is looking to become a leader in the manufacturing market where SAP and Oracle are well established. While the J.D. Edwards’ products and reference base provide credibility, PeopleSoft really needs to distinguish itself in order to raise its visibility. The demand-driven manufacturing and lean manufacturing initiatives will create that opportunity if they are combined with an aggressive brand marketing campaign.
AMR Research originally published this article on 18 March 2004.