114 • The Saga of Venture Capitalists and Private Equity Firms. In two decades, I struggled for an example of how a Venture Capital investment in an Where to turn? Let’s spend a minute to reflect on what did not work: • Consolidations Decimated Value. IBM, Infor, E2Open, JDA, and Oracle gutted supply chain com - panies under the promise of improved value prop- osition for business leaders. The benefit fell only to investors. The intellectual property and innova- tion of companies like Demantra, Emptoris, JDE, i2 TS teecehl nwoel do gg ei e, sT, eMr raan Tuegci shtni cosl ,oMg y-,Faanc dt oVr, i Ps ieoonpCl ehSaoi nf t., T h e isnosf ti gwhatr?eI fpar ocvoindseor,l ildoaotki oenl saegwghr eegr ea.t o r a c q u i r e s yo u r • Consultants Failed to Deliver Value Through Software Models. Software and consultant busi- ns oe fstswma roed. eWl shdi loe nt ho et ss uo pf tpwoarrt et hi se adbeovuetl oc po mn tei nnut aolf c o d e ec uv os tl ou mt i oenr , rtehqeuceosnt ss.uAl tsi nagr emsoudl te, lcsofnoscuulst aonnt sd if voec rugseonnt the urgent (continual stream of customer requests) awnadr el a. Sc ko ftthwealroenbgu- tsei rnme s cs ommomd ei tlms ae nn dt tcoo bn us ui l ldt ii nn gg gs oo f- t - tNoe- vmear rbkueyt ps or of tgwr aamr esf lraocmk aa l ci gonnms uelnt itn. gT hc oe mt apkaenayw. a y ? • Barney Partnerships Bled Purple, not Green. Br aal r. nI ekyn—o wl e nt ’ os bt eec fhr ipeanrdt sn—e r ps hr ei ps st hr ea ltedarsoevs ea vr ea ltueemopvoe-r twhael ll pa as tp tewr oy oduerc ahdo euss. eT. hT eh ep lreetahsoorna?oTf hpeayp ea rr ec oo up lpdo r - tunistic. The lesson? Never buy based on a partner- ship. Expect marketing hype.
115 Definition of ATP. The i2 Technologies work on building ATP jump-started a needed innovation to define order, promising an essential pre-requisite for eCommerce models. Concurrent Planning. WebPlan (now Kinaxis) de - fined an in-memory cloud-based model for material early-stage innovator drove value. Investments by Private Equity firms like Insight Venture Capital and Thoma Bravo destroy companies. • New Forms of Software Marketing Creates Haze, nr aodt i Vo atlaul ek. sI hn ot wh ehl oa ss tt sdaenc addter a, tdhees hr ioswe of of rsmu papt sl yhcahs a i n made it hard for the buyer to decipher actual value. The problem? There is no filter or judgment call on tf oh re sbeu ns ienwe sfso rl ema sd eorf smi se dwi oa rot hn wwhhi el et .hMe ry t ihnes isgohl ut toi voenr tawn de nt thye yl ee aa dr se ri ss tdhrai vt itnhge tmh eo smt oi ns st i vg ahltuf ue l di on nnoovt at tai lokn on stage. In the Past, What Drove True Value? As an analyst, I covered many shifts in technology. In my view, trends like DDMRP (demand-driven material re - quirements planning), MEIO (multi-tier enterprise inven - tory optimization), and SRM (supplier relationship man - agement) were fads. MEIO became deep optimization for si nadf ei rt ye cstt op cr ko :c un reevme rednet ,pnl oeyveedr cmr ousl tsii-nt ige rt .hSeRcMh aesvmo ltvoe dmiannt -o age the relationships in direct material sourcing effective- ly. Each struggled to deliver long-term value. TI choeuinntnfoovuart:ions that I believe drove actual value are few.
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