In many ways, the biggest news of the week was Apple’s introduction of the iPad. Expectations were set so high for this gadget that many people were a bit underwhelmed when the wrapper finally came off on Wednesday. Is there a role for the iPad in logistics? Maybe down the road, but based on what I saw, the iPhone is much more promising and cost effective at the moment (see “The iPhone as a Logistics Visibility Device” and “TMS for iPhone: There’s an App for That!”). I’m sure we’ll come back to this topic again this year.

The other big news was Toyota halting sales and production of eight vehicle models due to a safety issue with its gas pedals. On Monday we’ll publish a piece that my colleague Steve Banker wrote about this news, so I won’t steal his thunder today.

Here’s some other news that caught our attention this week:

• SAP Announces Fourth Quarter and Full-Year 2009 Results that Exceeded Expectations
• JDA Software Announces Record Quarterly Revenues
• JDA Software Completes Acquisition of i2 Technologies
• LOG-NET, Inc. Successfully Completes SAS-70 Type II Audit
• Sandvik goes live with RedPrairie Business Continuity services
• NRF Forecasts 2.5% Increase in Retail Sales for 2010
• November 2009 Surface Trade with Canada and Mexico Fell 2.9 Percent from November 2008

Software vendors and third-party logistics (3PLs) providers are starting to report financial results for Q4 2009 and the full year. Not surprising, 2009 was a challenging year for many software vendors and 3PLs. Software revenues (aka license fees) were down 28 percent for SAP in 2009 compared to 2008, and down 4.4 percent for JDA during the same period. Business conditions are much more favorable today than last January, so I believe Q1 2010 results will be the real test for how well software vendors have adjusted to “the new normal” where customers are prioritizing investments that deliver cost and productivity benefits relatively quickly (in weeks, not months or years) , and where cloud computing and software-as-a-service (SaaS) are becoming attractive alternatives to the traditional software buying and implementation model. (For related commentary, see “Software Maintenance Fees: An Outdated Cash Cow?”).

The JDA-i2 marriage was finally consummated. We wrote about this acquisition when it was first announced, and when it was announced again, so we have nothing new to add at this point. But JDA will brief the analyst community next month on its product roadmap plans. Stay tuned.

The news releases from RedPrairie and LOG-NET are related: they both underscore the critical link between IT and business continuity. In RedPrairie’s case, Sandvik—a long time RedPrairie Warehouse Management customer—went live with RedPrairie’s Business Continuity services. To ensure Sandvik’s business would not be interrupted if a significant hardware failure occurred at its distribution facility, RedPrairie replicated Sandvik’s application server and established a direct link from RedPrairie’s data center to Sandvik’s distribution facility.

Is this type of service part of “the new normal” for traditional software vendors?

Achieving SAS-70 Type II certification, as LOG-NET announced, is something that a growing number of software-as-a-service vendors, hosting providers, and 3PLs are starting to prioritize. Earlier this month, for example, Transplace also announced it had successfully completed a SAS-70 Type II Audit. As I wrote about in “When a Software-as-a-Service Solution Goes Down,” procuring a software-as-a-service solution is very different than buying traditional software. There are certain factors that customers need to consider as part of the evaluation and contracting process. SAS-70 Type II certification is one of them.

On the lighter side: This week I came across The Fun Theory, an initiative and website launched by Volkswagen “dedicated to the thought that something as simple as fun is the easiest way to change people’s behavior for the better.” The video below is one of the examples. At a metro station in Stockholm, most people would ride up the escalator instead of taking the stairs. But when the stairs were transformed into piano keys that play notes when you step on them, 66 percent more people took the stairs instead of the escalator.

How can The Fun Theory be applied to supply chain and logistics? I’ll be giving this question some thought in the days ahead. If you have some creative (and fun!) ideas, post a comment and let us know. In the meantime, have a great weekend!

(Note: i2 Technologies, SAP, RedPrairie, and Transplace are ARC clients)