Just prior to conducting its annual FOCUS 2017 customer conference last week, JDA Software announced additional leadership changes. As we opined in January, Supply Chain Matters anticipates further business changes in the months to come.
In January, Supply Chain Matters called reader attention to then unexpected CEO management change that occurred at JDA. At the time, then Chairman and CEO Bal Dail stepped down and the company’s Board of Directors appointed former Tyco executive Girish Rishi as the new company’s CEO. Rishi assumed the role after serving as Executive Vice-President at Tyco International, responsible for that firm’s global retail and North America building automation businesses. The move came after a $575 million re-capitalization of JDA led by private equity firm Blackstone Group in August of 2016, after an unsuccessful attempt by Honeywell to acquire this technology provider.
In January, we advised that it was unclear as to whether other strategy or leadership changes were in-store for JDA and we shared with readers that immediate or unplanned CEO succession announcements usually result in subsequent changes.
These latest executive changes include the promotion of Mark Morgan to the role of Executive Vice President and Chief Revenue Officer, responsible for the entire global sales organization. Morgan was previously responsible for North America operations, and came to JDA from the i2 Technologies acquisition. This change came after existing sales executive Razat Gaurav, also an i2 alumni, departed JDA to pursue other opportunities.
A further change was the appointment of David Rye to the newly created role of Senior Vice President of Strategy and Corporate Development. Rye recently joined JDA in April from a private equity role and prior corporate development and strategy roles at Informatica Corporation and Hyperion Solutions. According to the announcement, Rye’s responsibilities will focus on: “shaping JDA’s corporate strategy around its portfolio, services, cloud and go-to-market approach.” Rye’s background is noted as driving revenue growth strategies as well as acquisitions. He also provides five years’ experience in private equity investing. He has academic credentials at Stanford and Princeton Universities.
Supply Chain Matters has learned that there have been other management departures from the company in conjunction with these latest leadership realignment changes.
As readers can well surmise from the latest announcements, the priority of JDA remains in revenue expansion and perhaps other M&A activities. Many times, when a software or technology company anoints a Chief Revenue Officer, it is a sure sign of singular accountability for revenue fulfillment goals. Similarly, singular leadership of corporate strategy and business development implies a laser focused priority.
By this supply chain technology analyst’s lens, JDA’s vertical industry focus remains pre-occupied with Retail industry and B2C technology needs, but that industry remains under extreme financial stress due to unprecedented business changes. There have been some inroads in other industry verticals but supply chain technology deals have become highly competitive sales cycles of-late. That may change with new JDA leadership, but we have witnessed the ebbs and flows many times prior.
The re-capitalization plan of last August can take the company so-far, and then there will likely have to be other forms of sustaining revenue, profitability, and business growth, particularly with Blackstone as an influential private-equity investor.
JDA customers are advised to keep a keen-eye on ongoing developments and request continual strategy and technology development updates.
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