Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Development
    • Development

    B2B Firms Victims of Own Failures

    Written by

    John S. McCright
    Published April 9, 2001
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      B2B software providers are the latest to take their turn at the Wall Street whipping post. And like the many other victims of the slowing economy, the problems of business-to-business software developers are mostly of their own making.

      Ariba Inc. and i2 Technologies Inc. each announced job cuts and earnings warnings last week, and Commerce One Inc. also lowered earnings estimates. These were the result, according to users, of a failure to address nagging issues of integration, time-to-market and return on investment.

      “The Aribas and the others are taking that notion of ERP [enterprise resource planning] at an intraenterprise level,” said Eric Spencer, CIO at PackExpo.com, a packaging industry exchange in Fairfax, Va. “Imagine how complex it was to tie in systems within a single organization. Now they are trying to do that between companies. Its premature to think we could possibly define a single solution.”

      The fallout from the recent blow to the so-called leaders of B2B will result in more-realistic goals for their marketplace software and more-intimate partnering on their part with software suppliers that can add value and integration to a B2B infrastructure?both a boon for customers.

      Commerce One has a multifaceted partnership with SAP AG, of Waldorf, Germany, for development, sales and marketing. The closeness of that relationship is what sealed a B2B deal for Bob Renner, chief technology officer at the ForestExpress online exchange. While Renner said he respected Commerce Ones marketplace engine, SAPs catalog of products geared for the forest products industry made the combined offering more compelling.

      “We wouldnt have done the deal with them if it hadnt been for the SAP-Commerce One partnership,” said Renner, in Atlanta.

      In addition, because SAP already has software for his industry, Renner said he can develop additional industry-specific functionality in-house and then negotiate with SAP to have those functions inserted into the broader marketplace software. As part of the e-marketplace, those features will be covered under maintenance and support contracts. Renner is not sure that an independent e-marketplace software vendor like Ariba would be open to adding such industry-specific features.

      For an alliance between an e-marketplace software provider and an enterprise applications developer to be attractive, Renner added, the two companies must show that they have executive sponsorship, a real financial commitment and demonstrated technical integration.

      But such partnerships havent always translated into easy installations at the marketplace level.

      “Theyre saying they can do the system integration. My question is, how” said Jim DeMin, program manager of customer relationship management at Infonet Services Corp., in El Segundo, Calif. “Tell me what you know about Oracle [Corp.] and SAP; they know nothing about the systems they need to integrate to.”

      DeMin and others say that the e-marketplace providers are limited in their ability to integrate between companies and software platforms. Those building online exchanges and those connected to them should look to third-party integration specialists such as WebMethods Inc., they said.

      “The vendors hype themselves as being the end-all solutions,” DeMin said. “But youre probably better off to understand the sweet spot of the vendors-what they do well?despite what the salesperson tells you? and look to other vendors for their sweet spots.

      Ariba, which was trying to solve some of these problems with a proposed merger with Agile Software Inc., last week called off the alliance-a deal that would have given Ariba a suite of B2B collaboration applications.

      Prior to that, Ariba had an alliance with i2 to provide part of an e-marketplace, but that relationship soured after Ariba announced it was buying Agile in January. To make up for the loss of Agile, Ariba officials said they will continue to partner with that company and others.

      Many operators of exchanges built with Ariba, i2 or Commerce One technology say they are not worried about short-term financial woes at their technology supplier, particularly since sales are about double what they were a year ago.

      “I dont equate company viability with the stock price of companies like Ariba, i2 and Commerce One,” said Ariba customer Steve Mori, director of IT for AutoDesk Inc., in San Rafael, Calif. “You don?t lay in an enterprise infrastructure without considering the long haul. And you can?t base an infrastructure on quarterly numbers.”

      But others are not as optimistic. Harvey Seegars, CEO for GE Global eXchange Services, in Gaithersburg, Md., said he believes that with the “darlings” of the B2B space missing their numbers so significantly, companies will start to reassess purchase plans.

      The movement of commerce to some exchanges is “much slower than expected. The [returns on investment] at the purchase points are looking more pessimistic as exchanges dont ramp according to assumption,” Seegars said.

      “Ultimately, there is a level of customization for every implementation,” PackExpos Spencer said. “As you get closer to each individual organization, you find yourself saying youre going to install e-procurement software, then you realize that-oops!-you need workflow and document management. So, all of a sudden the customer signed up for a solution to connect trading partners and he now has to decide to either scrap the project, go forward with all the extras or re-evaluate the whole thing.”

      John S. McCright
      John S. McCright

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.