Publications
Publications
- June 2005 (Revised May 2006)
- HBS Case Collection
Covisint (A): The Evolution of a B2B Marketplace
By: Lynda M. Applegate and Elizabeth Collins
Abstract
Ford Motor Co., General Motors, and DaimlerChrysler--the three original equipment manufacturers (OEMs) that dominated the automotive industry throughout the 20th century--launched Covisint in February 2000 as an industry supply chain exchange that would drive out cost and help manage the complex communications within the rigidly hierarchical industry. The Big 3 sourced entire components of cars from large Tier 1 suppliers. By limiting the number of partners and using online technologies to support collaboration and performance tracking, as well as drive out costs from the supply chain, the OEMs hoped that cycle times could be shortened and they could finally achieve a build-to-order car. A successful exchange that united the industry was vital to this vision. Covisint was founded with "borrowed" Bid 3 employees and over $250 million in funding from the OEMs. Its business model morphed several times as it raced to bring products to market and to meet the demands of its founders. The start-up burned through six CEOs in three years and now Bob Paul is considering whether to take on the CEO hot seat.
Keywords
Business Model; Supply Chain Management; Business Startups; Management Teams; Manufacturing Industry; Auto Industry; United States
Citation
Applegate, Lynda M., and Elizabeth Collins. "Covisint (A): The Evolution of a B2B Marketplace." Harvard Business School Case 805-110, June 2005. (Revised May 2006.)