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James Engesether BCIS 340 Fall 2008 Case Study 13.2. JDS Uniphase. JDS Uniphase. Headquartered in San Jose, CA Product of a 1999 merger between JDS Fitel and Uniphase Both specialized in innovative fiber optic networking technologies

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james engesether bcis 340 fall 2008 case study 13 2
James Engesether

BCIS 340

Fall 2008

Case Study 13.2

JDS Uniphase

jds uniphase
JDS Uniphase
  • Headquartered in San Jose, CA
  • Product of a 1999 merger between JDS Fitel and Uniphase
  • Both specialized in innovative fiber optic networking technologies
  • Al Etterman (CIO) believes a company’s IT falls into two categories
          • Technology that advances the business
          • Technology that runs the business
  • Sees no reason for staff to develop or maintain technology that runs the business
company info
Company Info
  • 14 facilities in several countries
  • The Company faced hard times shortly after 2000 when the internet bubble burst
  • 2004 revenue of $636 million was less than half of 2000 revenue
  • 2004 staff of 5,500 was a third compared to 2000
  • They acquired several companies in early 2000 when business was good
  • So instead of using a costly ERP system they used an ASP system to save money
  • They chose Oracle’s software-as-a-service business “On Demand”
  • Outsourced many of its IT services to Oracle
  • Every employee can access its database and ERP software anywhere in the world
  • Software hosts in Austin—Oracle can manage database—allowed JDSU to reduce its IT staff by a third
  • http://www.oracle.com/index.html
  • Etterman says he would rather spend “business-facing” resources than database administration. Wants to advance the organization, which nobody else can do better
  • Developed and sold only devices installed in optical networks but they became a commodity
  • Changed product selection to include:
    • Components for big screen TVs
    • Paint that changes color by viewing angle
    • Forgery proof ID marks for money and packaged drugs
  • 50% of revenue is now comprised of their product expansion
  • JDSU did not have to incur costs for

adapting the software for new products

  • http://www.jdsu.com/index.html
it and operations
IT and Operations
  • Database and hosted ERP system allows other facilities to begin production of new products immediately without training
  • They can work off the specifications in the central system designed by other facility locations
    • http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-18-2003/0001892970&EDATE=
  • JDSU has reduced its IT budget by sixty percent using Oracle E-Business Suite and Oracle Outsourcing to significantly restructure its IT operations.
  • This restructuring is expected to save them $35 million annually.
internal it
Internal IT
  • JDSU internally built a

data warehouse and

applications for finance

and order processing

  • JDSU programs are run off of Oracle’s database so when Oracle upgraded its DBMS to version 11i JDSU operations were not affected
  • Another function that is not outsourced is its business systems analysis
  • Employees are a bridge between workers and the IT they need—Etterman wants to keep this intelligence in-house—when new needs arise they communicate this in-house info to Oracle
suggestion success
Suggestion Success
  • One IT professional at Oracle suggested that order information be accessible to customers online so they can check order status
  • Oracle made it accessible and it resulted in faster service and reduced the number of phone calls made to them
  • They continue to seek ways to support business opportunities by using hosted software
question 1
Question 1

How many facilities does JDSU have worldwide?

  • 14
  • 40
  • 19
  • 9000
question 2
Question 2

What event occurred in 2000 to depress the earnings and employment rate of JDSU?

  • Sports Night was cancelled on ABC
  • Internet Bubble Burst
  • Tom Cruises’ Mission Impossible II grossed the highest earnings of any movie
  • British premiere of Lars von Trier’s Dancer in the Dark
discussion question
Discussion Question
  • Do you see any risks to JDSU in its arrangement with Oracle?
  • Why or why not?