Struggling Dutch enterprise resource planning vendor, Baan Company NV, yesterday appointed former IBM executive, James Mooney, as the company’s new CFO. Mooney will replace Klaas Wagenaar, the current CFO, who will become the company’s executive VP for operational and strategic initiatives.
During his 19-year career at IBM, Mooney most recently held the position of VP and CFO of the Americas where he played a key role in driving profitability and enhancing margins in key operating areas throughout the company, Baan said. He was also directly involved in re-engineering IBM’s business over the last five years, with primary focus on expanding IBM’s strategic reseller network and growing the services side of the business.
Whatever he did at IBM, Mooney will certainly have his work cut out for him at Baan. Earlier this month, the ERP vendor reported fourth quarter net losses of $294.7m on revenues down 39.1% at $131.1m. Net losses for the year to December 31 were $315. In addition, the company was forced to cancel its two annual user shows in North America and Europe, and replace them with a series of what it called town hall meetings.
Joshua Greenbaum, principal, enterprise applications consulting in Berkeley, California said the move was long overdue: It’s very important that Baan restores confidence in its financial position, both for its shareholders and its customers, Greenbaum said. When asked whether he thought Mooney was a good appointment, he replied, It’s almost such a good move it doesn’t matter who it is! Greenbaum said Baan has spent a lot of time getting itself in order, adding that Mooney’s prime concern should be to gain tight control of the company’s money. He has to make sure that the day [sales] outstanding improves, they really need to tighten that up, he said. Greenbaum added that next year would be critical for Baan. It’s on a life-support system right now…one more mistake on the financial front and it will be in really bad trouble, he said.
On top of his responsibilities as CFO, where he will report to Baan chairman and CEO Tom Tinsley, Mooney is also expected to serve on Baan management board subject to shareholder approval.
