getitright

i2 Technologies' Turnaround: Part I

In reading your article and looking at your chart it appears i2 had a successful turnaround in motion up to the point they ousted Michael McGrath, not since his departure. i2 stock continues to fall regardless of who is covering it or the thoughts on analysts and unfair practices for reporting.

As someone who has partnered and worked closely with i2 for over a decade, the only success since Greg Brady was President occurred during the 29 months when Michael McGrath and his turnaround team were in place at i2. They are the individuals to thank for delivering positive results for i2’s growth, not an individual who is collecting off the coattails of success from their efforts.

Chatterjee has been inside the company since 2000 when he joined as COO. He did not deliver results, changes were made and the board searched for a CEO who had experience to make it happen.

As one of the most respected individuals in the supply chain consulting world, co-founder of PRTM and the father of SCOR, McGrath resided on i2’s board. After a long, extensive, and unsuccessful search for CEO, the board turned to McGrath and asked him to consider becoming the CEO to take on the turnaround. McGrath felt with support from the board and his knowledge in the market he could make a difference and agreed.

He built a management team of key individuals who were respected in the market and they dedicated almost 3 years to restructure, rebuild and restore a sense of stability to i2 resulting in the 11 consecutive quarters of profitability and growth. An impressive badge to earn as the company had significant SEC issues when he stepped in.

He and his team built out a strategy plan based on customer feedback. They listened to their clients and partners. Our partner program was rebuilt. Marketing and development prioritisation was designed around customer and partner input. The focus of McGrath’s team on the client resulted in the delivery of 11 profitable quarters. A successful turnaround. While he was in charge, i2’s stock went from not being listed to being relisted and hitting the mid 20's.

Many realise he and his team were forced out of i2 and the market has responded to the threat of stability which is reflected in i2’s continual stock drop.

To claim Pallab Chatterjee as a success because i2 has experienced a couple of follow on successful quarters since McGrath's release is preposterous. Those who are experienced in covering the enterprise software market recognise it takes 3 to 4 quarters to identify a project and bring it to closure due to the length of building out custom demonstrations, contract negotiations, and hitting the budgeting cycles of companies at the right time. These 2 quarters, and probably the next 2, are results from the momentum of the changes put into affect under McGrath's team. Simply check with i2 clients and partners.

The analysts you mention in your article are top analysts in the software market. They are highly respected by Wall Street, have an accuracy rate which is impressive and they do not make comments based on hearsay. By placing your message on a public post board without having your facts straight on their coverage of i2 is completely unprofessional and not credible.

If you wish to document the facts, you need to do your research in a balanced manner. In the process of developing your article, did you interview McGrath, Cummings, Walravens, or others? Did you stop to review the history of this company? Do you realise that pipeline is usually 3-4 quarters deep and the last 2 quarters are simply a continuation of the successful development created by McGrath and his team?

Your comments on the SAP lawsuit are valid with one exception. The legal action was initiated by McGrath. He was the person to recognise the patent infringement. He took the legal action required which now has set i2 up for significant gains.

McGrath and those he hired to help turnaround the company hold consistent, successful track records outside of i2. They delivered results for i2 only to be thanked by being ousted by the old regime.

Pallab Chatterjee’s track record has not been impressive. His scorecard cannot be measured until you have year over year results to show whether or not he can deliver.

You need to remember that many of us have worked with i2 as clients and partners for almost two decades. We know their politics, their people, and who can and cannot deliver. i2 had a team who was leading them to success. They stopped to listen to us as their customers and partners. Trust was being rebuilt. The listening has stopped and the arrogant approach has returned. Whether this results in continued success is yet to be determined.