Informix Software's E-Commerce Strategy

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 fourthgeneration 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 resourceintensive 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 ecommerce. While these changes went a long way toward putting the company bac

Related Essays

Informix and E-Commerce Informix Software grew out of the need for relational database technology, and the company helped pioneer such databases since it was formed in 1980. .... (2967 12 )

DATABASES IN THE CEREAL INDUSTRY .... Its human resources system, for example, uses SAP software and databases to .... Kellogg uses a combination of SAP, Oracle and Informix databases enterprise wide .... (995 4 )

(although it has a small market share) will help it in this new market ("Dexmier," 1999, p. 90). The problems that Informix faces come on a variety of fronts, not all of which can be solved through the company's Web site. The company's financial problems with the Securities and Exchange Commission came to an end in early 2000 when the SEC announced that it settled with Informix. The company is not subject to any fines or other out-of-pocket costs, but the company did agree to a "cease and desist" order and will cooperate with the SEC as the oversight agency continues to investigate former Informix executives regarding their roles in the scandal ("Informix Oks," 2000, p. 24). The company is trying to shift its image from being a database company to a Web solutions company. In order to do that, the company must change its internal perceptions of itself as well as the market perception. Such change is difficult to bring about, but the company can accomplish this through a combination of internal training and external communication. It is critical that the company perceive itself as more than just a database organization if it is to be successful in penetrating the Web market, and the external market must also perceive a trans

Category: Business - I