IBS is refocusing it business with a shift to Java/Windows for lower cost of ownership, and an online software-as-a-service offering. Focus will be on distribution markets, particularly electrical components, pharmaceutical, paper and packaging in Europe and the US, and the automotive distributors in emerging economies. The move is expected to cost £33 million.
“Distribution is changing rapidly due to macroeconomic factors, and changed consumer demand patterns increases the need for flexible solutions. IBS’ dependency on an increasingly outdated technological platform, in combination with inefficient working processes, has led to decreasing profitability. I am convinced that the new value proposition of IBS built on focus on vertical markets, efficient solution delivery and operational excellence will establish IBS as the world leader in distribution management solutions,” said Dr. Pallab Chatterjee, chairman of the IBS Board.
The plan will involve staff reductions of up to 500 employees worldwide, including voluntary resignations, business divestitures, country exits and redundancies. It will also involve build-up of low-cost resources operations to increase efficiency and flexibility in solution delivery.
IBS estimates that the plan will result in savings of up to £27 million per year.
Mike Shinya will oversee the plan as president and chief executive officer. Previously Shinya held several senior management positions at Oracle, IBM, and Baan, and has led successful turnaround programmes at Micro Focus International and Sherwood International. He will take up his new position on 15th October.