A CASE STUDY ON IBX

Global Digital Business Context: A case study on IBX

T1000927

Case Study IBX

Introduction

The approach taken by IBX in developing and managing the global resource system is subject to several critique at different levels. The strategy has also had a significant impact on global supply networks and eco-systems. However, before going into the critical analysis of the company strategy and its global impact, it is necessary to review the brief history of the company.

Over the past numerous years, several developers of Business 2 Business software as well as EC analysts anticipated that B2B hubs would drastically decrease purchasing expenditures and offer comparability across different vendors. B2B hubs bring together buyers and sellers and computerize business deals (Kaplan et al. 2000). The B2B Hubs are digital market places that function as digital intermediaries (Bakos 1997; Bailey et al. 1997). Superlatively, B2B hubs make possible product and information trade and support goods search, preliminary contact, negotiation, and agreement (Bakos 1997; Bakos 1998).

IBX Group AB, also known as IBX, is a Sweden based company that was incorporated in 2000. It shores ups large and medium sized corporations by supplying technology solutions on the basis of its procurement expertise. These services may acquire the shape of consultation, strategic and operational procurement services. All these services are based on the On-demand Platform technology developed by IBX. The company has maintained a portfolio of clientele which includes the world renown companies like Ericsson, SEB, Deutsche Post World Net, Skanska, Novo Nordisk, Lufthansa, and last but not the least Volvo Group. In October 2000, IBX was established through a joint, collaborative enterprise of the company's founders, Ericsson, SEB, and b-business partners. Hans Ahlinder, Christer Hallqvist, Björn Böhme and Peter Lageson are the founding members and owners of the company. In the beginning, only application environment was set up to handle the business transactions of the very first two customers which are Ericsson and SEB. Through its collaborative partners, the company also had a chance to include SAP and Commerce One into the chain in late 2000.

Since 2001, the company is continuously fostering in the North European countries starting from Denmark. It established its existence in Norway and Finland in subsequent years i.e., 2001 and 2002, respectively. One of the milestone achievements of the company within the same geographical region is the 5 year contract with Deutsche Post World Net. IBX acquired the Trimondo GmbH, a German e-commerce company, in March 2005. The achievement established a firm present of the company in the European continent. Later in 2006, the company also acquired German Portum AG. Portum is a supplier of e-sourcing, web-based solutions provider for strategic purchasing. Based on their On-demand Platform, the company is providing Software as e-sourcing service. IBX on-demand delivery model software for procurement and sourcing speeds up deployment and lays the importance, rather than on technology issues, for the users and usage. The advantages of this delivery model comprise a fast return on investment or lower total cost of ownership, and lower upfront costs. In 2010, the company also joined resources with Capgemini which allows it to provide Procurement as a Service, an ...