Baan and JDA Software have formed a joint venture to try and break into the high end of the retail sector and fight off the threat from new entrants such as SAP and Peoplesoft.
Baan-JDA Retail will be operated as a separate company from both parents, although it will be based in JDA?s Phoenix, Arizona headquarters to cater to the US market and at Baan?s headquarters in Holland to look after Europe. It will be staffed by 30 employees worldwide, including development staff, account managers and a managing director, who will be recruited externally.
The account managers will appoint sales and marketing staff from each of the respective parent organisations and initiate a sales certification programme to ensure they are qualified to sell the joint offering.
Maureen Tuskai, JDA Software?s director of corporate communications, said: "When SAP and Peoplesoft entered the retail market, Baan decided it had to move there too, and the most logical way to do that was to form a joint venture with JDA, which has a stronghold in tier two accounts. Our market has traditionally not been the billion dollar plus retailers, but some of the larger retailers have been entertaining SAP and Peoplesoft, so we want to get into that."
She added that contrary to Baan?s recent strategy of growth by acquisition, merger discussions had not taken place and JDA was not up for sale.
However, interfaces between JDA?s merchandising, distribution, point of sale and decision support applications and Baan?s financial, human resource, and supply chain packages will be complete by the end of this year and full integration will follow next year.
The two also expect to jointly develop new products including a customer order management system to support mail order, wholesale and catalogue-based sales and Internet-based training.
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