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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?