Today, supply chain focused B2B business network tech provider E2open formally announced that it E2open_logo_JPG_highres_125x125has merged with supply chain planning and S&OP technology support provider Steelwedge. From our lens, the announcement is of little surprise and provides some interesting new dynamics in the market.

We note that the announcement is to be expected since two of our specific published 2017 Predictions for Industry and Global Supply Chains (available for complimentary downloading in our Research Center) called for either increased M&A activity or increased business intelligence investment in the B2B business network platform areas  in the supply chain tech area.

Today’s announcement is of little surprise since of late, Steelwedge has by our observations and sources, been struggling to gain further market momentum in the supply chain planning area. The company clearly needed an infusion of new capital and thought leadership as well as more savvy marketing and sales execution resources. Privately-held E2open continues its track record for augmenting its B2B network capabilities for synchronizing supply chain execution with augmented advanced supply chain planning, business intelligence and simulation capabilities. Since being taken private, prior planning and business intelligence acquisitions included Icon-SCM, and Terra Technology, both smaller providers providing augmented technology to add to the E2open platform, along with broader capabilities for E2open to offer in the market particularly those related to augmented sales and operations planning (S&OP) business process support. Both providers have been prior sponsors of this blog.

There is little information in the announcement regarding how the two organizations will come together in terms of organizational teams and strategy moving forward. We expect that will change and that E2open management will reach out to the existing Steelwedge user base with some added information. Obviously, this latest acquisition is part of a broader strategy to move E2open into a more augmented capability.  However, this provider has its own set of challenges in marketing and sales execution. The open question still remains as to the effectivity of current messaging to the market.

We initially advise existing Steelwedge users to take a wait and see perspective since the upsides far outweigh the downsides in terms of new capabilities.  One area to really focus upon is any future impacts regarding pricing strategies along with global support. We expect some eventual fallout in staffing.

In 2017 Prediction Six, we predicted a renaissance in supply chain focused business services and technology investments, That prediction called for one or two acquisitions involving high-profile supply chain best-of-breed vendors along with a continuation of acquisitions surrounding IoT focused technologies involving existing enterprise class providers. In Prediction Seven, we called for the existence of enhanced supply chain intelligence capabilities among B2B network platform vendors paying dividends for industry supply chains. That prediction called for supply chain B2B platform providers such as E2open moving in the direction of blending supply chain wide planning and execution related transactional data with analytics, cognitive and business intelligence capture across both horizontal and vertical extended supply chain networks. Such analytics and predictive trending information would then be moved to and from various existing business application systems related to planning and customer fulfillment.

We view this latest announcement a clear reinforcement as to both predictions.

Supply Chain Matters will provide further analysis on this development once further information is available. We view this to be one of other announcements to come in the supply chain focused tech area in the months to come.

Stay tuned.

Bob Ferrari

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