Business Services Industry
Covisint might succeed under Compuware.(Opinion)
Crain's Detroit Business, February, 2004
Covisint L.L.C. was supposed to revolutionize the way auto suppliers bid on work and automakers managed their billion-dollar parts and supplier transactions. But in just three years, and with $500 million invested by automakers, a parade of CEOs cycled through Covisint's roller-coaster ride.
The online auction and data-exchange service never made money; in fact, suppliers roundly rejected the auction concept, suspecting it was just another way to squeeze price reductions from them. Finally, the company put itself on the block, selling its online auction service to an East Coast company. And last week, Compuware Corp. said it was buying what was left - a secure data-transmission service that connects players in the auto industry. Compuware CEO Peter Karmanos...
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