Software maker JDA looks to cozy up to the customer

Looking to boost customer satisfaction and loyalty, JDA Software Group Inc. is launching a major restructuring of its operations, which will include laying off 170 employees.

The Scottsdale, Ariz.-based maker of retail and consumer packaged good software Tuesday announced it would be launching a "Customer Value Program" to streamline and improve internal processes, which will include "the redirection of many associates in management to client-facing activities." The plan also includes cross-training employees to "increase resources for clients."

Additionally, JDA will consolidate sales and implementation organizations, CEO Jim Armstrong said in a statement. "By combining these formerly separate groups, we will ensure that our clients receive full life-cycle attention from the same JDA associates throughout all of their dealings with JDA," he said.

The planned consolidation is expected to save the company up to US$12 million annually.

The initiative comes after last month's third-quarter earnings announcements, when the company reported a 31 percent decline in new license revenue year over year -- from $15.5 million in 2001 to $10.8 million in 2002.

To speed up product development lead times, the company plans to relocate some of its development personnel to Scottdale, which will cost about $2.6 million. It will also take a $4.5 million restructuring charge through layoffs, and merge its U.S., Canada and Latin America operations. That means the company will now operate in three regions: the Americas, Europe and Asia Pacific.

"We'll emerge from this initiative competitively and uniquely positioned as a secure, profitable and growing solutions provider in time for the market recovery," Armstrong said.

"This is not an unintelligent response to JDA's problems," said David Dobrin, an analyst at Cambridge, Mass.-based B2B Analysts Inc. "In the current environment, where most sales are coming from existing customers, putting more resources into client-facing activities not only helps with customer satisfaction, but also may be a more effective way of selling."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about JDA SoftwareJDA Software

Show Comments