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IBM Launches "E-Sourcing" for the Auto Industry

IBMPlaces.ihost.com provides applications on demand that enable better teaming, engineering collaboration, quality reporting and data interchange

DETROIT, Michigan - January 11, 2001 - IBM today, at the North American International Auto Show, introduced a new "e-sourcing" option for automakers and their suppliers that enables them to lease leading-edge business applications over the Internet.

Called IBMPlaces.ihost.com, the new service will enable fast, easy and inexpensive access to applications for core business processes for companies of all sizes. Pricing is targeted to be dramatically below current software application pricing.

The ability to access online, or "e-source," software applications whenever needed is a fast-growing trend that will appeal to automakers and their worldwide supply chains. IBMPlaces.ihost.com will be especially helpful for smaller auto suppliers who have traditionally found it difficult to adapt leading-edge information technology. Initial applications are for activities such as collaboration, quality management and Web data interchange. Providers include Synapz of Northville, Mich.; IQS of Cleveland, Ohio; and Lotus Development Corp., a unit of IBM.

IBMPlaces.ihost.com is a business-to-business (B2B) services offering designed to interoperate with and complement auto industry and related trade exchanges and e-marketplaces - such as Covisint, e-Steel, RubberNetwork and e2Open - and private exchanges such as Volkswagen and Toyota.

E-sourcing is a logical extension of the long established trend within the auto industry to outsource information technology operations. With IBM e-sourcing, companies can get information technology from a variety of providers from one location on the Web. For companies with limited IT budgets, e-sourcing is a more affordable alternative.

Positive Customer Reaction:

Juergen Peulen, president of Keykert USA Inc., a supplier of automotive latching systems, said his company intends to use IBMPlaces.ihost.com with an initial focus on design engineering collaboration software. "We need the ability to have an engineer at any location share product design knowledge. This will enable our engineers at various global sites to work as a single unified team via the Web. By sharing best practices and lessons learned, we can extend our technological competitive advantage."

William Lang, IBM national practice executive for the automotive industry adds: "IBMPlaces.ihost.com minimizes the risk plaguing the dot.com industry because software vendors can bring new solutions to market faster and at less cost by using the delivery infrastructure created by IBM. In turn, the easier access, simplicity and lower-cost will make IBMPlaces.ihost.com appealing to end-users."

Pricing Examples:

For small suppliers using IQS and Synapz applications, the cost for hardware, software and all licenses and administration will be lower than they normally would expect to pay just for the application license alone. The Digital Engineering Office (DEO) application - with workflow, application sharing, language translation, real-time collaboration and CAD data viewing - has an initial price of only $90 per month per user (about the same price commonly charged as a fee to only use a CAD viewer).

Specific tasks and applications initially available at IBMPlaces.ihost.com for lease include:

Business Collaboration - Currently available and offered from Lotus Development Corp., are Sametime* and QuickPlace* products. Sametime is a software based real-time collaboration tool that allows users to find others who are online, communicate with them through text chat, and share applications and white boards. Sametime enables employees in different locations to work together in a virtual office environment with real-time language translation. Lotus QuickPlace enables teams to create collaborative work places on the Web in seconds with no training or technical help. Lotus QuickPlace also provides task and project management services for extended enterprise teams.

Engineering Collaboration - Currently available is Digital Engineering Office (DEO), designed to help organizations collaborate on the product development process. Based on business collaboration tools, it allows managers, professionals and support staff who do not have access to engineering design tools to become more involved in the product development and review process. DEO allows access to engineering CAD, CAM, CAE data and text and office productivity data from a standard browser. DEO also offers language translation.

Quality Management - Available in April, this application - offered in partnership with IQS Business Systems - provides a unified system for helping the auto industry enhance critical quality processes and comply with standards such as QS-9000, and its components such as APQP, PPAP and FMEA. Operated in a networked environment, this unified system is a significant step in helping auto manufacturers reduce costs.

Web Data Interchange - Available in the second quarter, this utility - offered in partnership with Synapz - will provide a low-cost alternative to supplement traditional electronic data interchange functions. Services in a variety of formats, including ANSI X.12, EDIFACT and simple spreadsheet or word formats, provide flexibility. The low cost will allow higher levels of supplier participation in the EDI environment.

IBMPlaces.ihost.com, which will be operated by IBM Global Services, was built by the organization using established industry standards including Java and XML. It will provide sophisticated load balancing, security, storage, network management and application management demanded by the automotive industry.

http://www.ibm.com

http://www.IBMPlaces.ihost.com 

 

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