Are you sure it is a 'loss of business' for i2 to Ford. The press I read stated that this is a new business venture between Ford and Oracle that they will jointly own and doesn't seem to interfere with i2's current relationship with Ford:
From April 22, 1999:
i2 Technologies, Inc. (NASDAQ: ITWO) today announced an agreement with Ford
Motor Company to license i2?s RHYTHM© solution for implementation at the
company?s Woodhaven stamping plant. The agreement follows successful
implementations of the i2 RHYTHM solution at Ford?s Visteon Automotive
Systems.
?The application of i2's RHYTHM will help Ford deliver greater value to consumers
by improving and optimizing manufacturing operations," said Steven Minisini, Vice
President Automotive and Industrial Business Unit, i2 Technologies. ?Ford plans
to use the i2 solution to enhance its planning, scheduling and execution
capabilities.?
How does the following press release about the new business between Oracle and Ford have an effect on the above business i2 does with Ford in the Woodhaven stamping plant and at Ford Visteon Automotive Systems?
LAS VEGAS (AP) - Ford Motor Co (NYSE:F - news). is starting a new business with software company Oracle Corp (NasdaqNM:ORCL - news). to link
Ford's entire supply chain of 30,000 businesses through the Internet. Ford hopes to cut costs - and possibly start a profitable new venture.
Officials of the two companies said Tuesday that the new business, called AutoXchange, will be designed to handle the $80 billion US in business
Ford does with its suppliers and the $300 billion in purchases it creates.
Ford and Oracle will jointly own AutoXchange, with Ford as the majority partner.
"This is really a groundbreaking, leading-edge change in the way this industry will be managed in the 21st century," Ford CEO Jac Nasser told the
Specialty Equipment Market Association show.
While Internet retailers get much of the media attention, business-to-business transactions are seen within the industry as the real boom area in
Web commerce.
Nasser said AutoXchange will be running next year. It will sell software to Ford suppliers allowing them to track Ford's orders and production
forecasts online.
Suppliers will not be forced to buy the software, Nasser said, but "we think suppliers will see a tremendous benefit in the short term and as the only
way to do business in the long term."
Oracle president Ray Lane said AutoXchange could grow into a billion-dollar business "very quickly."
He and Nasser declined to say how much the start-up would cost.
Ford also announced an Internet venture with the Specialty Equipment Market Association to give custom parts makers online access to vehicle
blueprints and other technical information.
Bob Rewey, Ford's group vice-president for sales, marketing and service, said technical data on the Mustang GT, such as engine blueprints and
electrical diagrams, will be available through a special Internet site.
Rewey expects this to raise the quality of custom parts for the Mustang. About 30 per cent of Mustang owners buy add-ons or extra parts for
their cars, Rewey said.
"Until now, this information has not been available to specialty product manufacturers through one easy-to-use channel."
Ford also said it will produce a souped-up version of the Mercury Cougar next year, and plans more "mass customized" packages - cars and trucks
with factory-installed features usually added by consumers.
For example, cosmetic kits for the Ford Focus sedan and F-150 Super Crew pickup will be available next year. ¸ The Canadian Press, 1999 |
