Ford Motor Co., General Motors, and DaimlerChrysler – the three original equipment manufacturers (OEMs) in the automotive industry in the 20th Century dominated – Covisint launched in February 2000 as an industrial supply chain exchange that would drive out costs and manage complex communication within the rigidly hierarchical industries. The Big 3 all related components of cars from large Tier 1 suppliers. By limiting the number of partners and online technologies to suppo … Read more »

Ford Motor Co., General Motors, and DaimlerChrysler – the three original equipment manufacturers (OEMs) in the automotive industry in the 20th Century dominated – Covisint launched in February 2000 as an industrial supply chain exchange that would drive out costs and manage complex communication within the rigidly hierarchical industries. The Big 3 all related components of cars from large Tier 1 suppliers. By limiting the number of partners and online technologies to support collaboration and performance tracking, as well as drive out costs from the supply chain, hoped that the OEMs that cycle times could be shortened, and they could finally reach a build-to- order car. A successful exchange, the industry united vision was crucial to this. Covisint was founded with “borrowed” Bid 3 employees and more than $ 250 million in funding from the OEMs. The business model changed several times, as to bring products to the market and rushed to meet the needs of its founder. The start-up burned through six CEOs in three years and now Bob Paul about whether he will take on the CEO hot seat.
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from
Lynda M. Applegate
Elizabeth Collins
Source: Harvard Business School
29 pages.
Publication Date: Jun 29,, 2005. Prod #: 805110-PDF-ENG
Covisint (A): The development of a B2B Marketplace HBR case solution

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