Covisint (A): The Evolution

of a B2B Marketplace
Author: Lynda M. Applegate Elizabeth L. Collins
From: Harvard Business School9-805-110 Rev: May 2. 2006

Internet Business Models and Strategies

Presenter: Patrick Wang 王正國
Advisor: Prof. Jung-Yu Lai
Report date: Dec 6, 2012

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 Evolving Org. & Capabilities

Develop the Concept Covisint 2000

Activities People/ Leader- Org. Operation Managem Culture
Expertise ship s ent

•BM •From •3 co- •Team- •Independ •Ad hoc •No

•Team founders CEOs base ent prod. within
•Equity •Paid & •For for each team
str. report to product team
•Com. founders dev.
•Product (Auction
mainly)

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 Evolving Org. & Capabilities

Launch initial Products Covisint 2001

Activities People/ Leader- Org. Operations Manageme Culture
Expertise ship nt

•Initial •Marketing •Kevin •Simple •Prod. dev., •Annual •Option for

prod. Ok •Sales English on hierarchy marketing, budgets employees
•ID early •Customer broad •Prod. cut sales, reviewed go back
users service •Goal: IPO fm.17 to 3 service with a founders
•Marketing •HR •Cut processes weekly & or stay
•Provide •Finance expenses mouthy •Develop
After-sale •Func. & focus basis Covisit
service Man. Culture
expertise

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 Evolving Org. & Capabilities
English: Open
Delphi & its governance:
suppliers Johnson Control &
5,500 in Ford & its Delphi should join in
users
100,000 in

Establish 2 SBUs: Covinst 2002

Activities People/ Leader- Org. Operation Managem Culture
Expertise ship s ent

•Dev. Portal •Trained to •Focus on •Set up 2 •Prod. •SBUs •High

& IP provide portal & SBUs: dev., establishe energy
protection portal connect. strategy marketing d as profit level: 2002
•Offset the (APQP, p9) solutions sourcing & , sales, centers was
revenues •Laid off 350 •Bench- portal service perceived
from consultants mark ADP connectivity processes “make-or-
venders break” year

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 Evolving Org. & Capabilities

Continue English’s Drive Toward

Liquidity: Covinst early 2003
Activities People/ Leader- Org. Operations Manageme Culture
Expertise ship nt
• began on •Continued •Harold •SBU •Prod. dev., •More •Morale
messaging growth in Kutner on structure marketing, traditional fell for
hub, to expertise broad for dismantled sales, structure rapid
increase in hub & 10 month, back to func. service reestablish CEO
income fm. portal Bruce Hierarchy processes ed turnover
Vendors •Continued Swift took •Close 1/3 &
•More to layoffs & over for 31 workforce negative
customers attrition days as English trade
for portal left press

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 Discussion
1 order
Can OEMs give needed 22 doc.
up their In suppliers? Can it input
control? computer 2
computer ?

Covinst 2012
Activities People/ Leader- Org. Operations Manageme Culture
Expertise ship nt
Provide ? ? ? ? ? ?
solutions for
•Healthcare
•Manufac.
•Employee
•Other

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