Informix Software grew out of the need for relational database technology, and the company helped pioneer such databases since it was formed in 1980. The company's initial products focused on UNIX environments and offered fourth generation programming aids to help developers write high-performance applications. During the 1990s, the company focused on the Internet and Web applications, and developed products which were designed to address the unique and often resource intensive needs of this market. Informix has adopted an e-commerce strategy for itself as well as assisting its customers in their e-commerce, but the company faces strong competition, particularly from Oracle. This research examines the e-commerce strategy currently in place at Informix, and evaluates ways in which the company can maximize its return from this technology.
Informix struggled in the late 1990s as its accounting practices were called into question over a questionable $278 million in revenues. The chief executive resigned over the scandal, and was replaced by Robert Finocchio in mid-1997. Finocchio sold real estate to raise much-needed cash, reduced costs by $200 million (primarily through layoffs), and issued additional stock. In addition, Finocchio reorganized Informix around three product groups: high-end transactional software for the company's relational database, data warehousing and e commerce. While these changes went a long way toward putting the company back on track, they also created a significant amount of chaos within the organization. The company spent the late 1990s recovering from the accounting scandal, which drained resources which might have been used toward building the company's business (Hutheesing, 1998, p. 202). Nonetheless, without Finocchio's guidance, the company could well be in a worse position with regard to its current situation.
Finocchio's strategy in the 1997-1998 period was well grounded. The company's mo...