KRECH Keith (Keith Krach)( The world leader in providing e-commerce services category of `business' business and software development for resource management)
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Biography KRECH Keith (Keith Krach)
Ariba Inc. - The global leader in providing e-commerce services category of "business-to-business and software development for resource management, as well as for online transactions for the purchase of materials and equipment. The company provides an opportunity and buyers and sellers to automate the execution of transactions on the Internet, and can reduce costs for both parties. Clients Ariba, among others, are American Express, Arthur Anderson, Bank of America, BMW, Cargill, Chevron, Dell, DuPont, Federal Express, Hewlett-Packard, IBM, Morgan Stanly, Motorola, Nestle and Swiss Air. Ernst and Young recently named Keith Krecha "Entrepreneur of the Year 2000". When Kreche Ariba was incorporated magazines Upside Red Herring and one of the 100 "hot" companies in 1999. In 1998, the magazine Red Herring named Ariba most well-managed private BT-based company, and Krech was recognized as one of the top 10 entrepreneurs in 1998
. Ariba: upward movement
. With the collapse of Tue-stock companies all the more difficult question becomes, what is the meaning of the securities has left in its portfolio, which - to sell, and what, perhaps, to buy
. So Ariba Inc. become a "hero" of today's success story is because the majority of venture capitalists and investors to call it among one of the few companies whose shares in the current situation are considered to be reliable and quite promising.
Ariba Inc. - The global leader in providing e-commerce services category of "business-to-business and software development for resource management, as well as for online transactions for the purchase of materials and equipment. The company provides an opportunity and buyers and sellers to automate the execution of transactions on the Internet, and can reduce costs for both parties. Clients Ariba, among others, are American Express, Arthur Anderson, Bank of America, BMW, Cargill, Chevron, Dell, DuPont, Federal Express, Hewlett-Packard, IBM, Morgan Stanly, Motorola, Nestle and Swiss Air. Ernst and Young recently named Keith Krecha "Entrepreneur of the Year 2000". When Kreche Ariba was incorporated magazines Upside Red Herring and one of the 100 "hot" companies in 1999. In 1998, the magazine Red Herring named Ariba most well-managed private BT-based company, and Krech was recognized as one of the top 10 entrepreneurs of 1998.
. Ariba began by saying that delivers solutions for the purchase of conventional office accessories: furniture, desktop calendars and pr
. Gradually, Ariba began to use its technology to assist companies to aid in the commission of a significant stake - for example, buying goods for their suppliers or selling goods to buyers
. On whom it all began:
. Forbes magazine has drawn such an image and its leader Ariba: Ariba - one of those companies that their appearance cause changes in weather
. These changes relate to ways of creating and maintaining business companies and individuals. Keith Krech, Chairman and CEO of Ariba, rowing oars floating on the sea boat. Ariba is one of the key companies, articulating the future direction and business - this gives it a calm voyage.
. Four-year Krecha company was a pioneer in establishing e-procurement system, which allows to reduce paper-based, as well as reduce the time and money costs of shopping
. Initially proposed Ariba system only helped companies move to the Network process for the procurement of office products, but very quickly the firm became a full member of the giant market transactions under the scheme B2B. According Krecha, "multiple hypostasis EC category" business business "is a major market that has ever existed. His strength, he drives the world economy.
This thought came to Krecha long ago - in 1996, and on a wave of interest in the new economic phenomenon, he founded Ariba. Just at that time was the actual trade scheme B2C. Keith Krech was one of the few leaders, who predicted the real explosion in the area of intercorporate electronic trading platforms, which already consisted of the transaction volume in the tens of billions of dollars
. Before you create a prototype of its software for B2B, Krech talked with the largest companies and learned what they would like to see electronic trading platforms
. Krech acknowledges that it is "the first clients Ariba, such as Hewlett-Packard, Intel, Seagate, and Cisco Systems, essentially designed the first products of the company."
. The fact that Ariba has never depended on technology companies, has helped her stay on the horse during the last shake-up market
. In October, Ariba announced the results of its operations for the period from July to September this year, and summed up ended September 30 fiscal year. So, the revenue for that quarter was 134.8 million. dollars - at 687% over the same period last year. Net loss amounted to about 1.1 million. dollars, whereas last year for the same quarter losses were equal to 4.6 million. dollars.
With regard to the outcome of the entire financial year, the Ariba income increased by 515% compared with the previous year and amounted to 279 million. U.S.. Losses amounted to 29.5 million. dollars, or 15 cents per share.
. In September this year, IBM, . Ariba, . Microsoft and some 40 other companies, . designing software for B2B, . announced the formation of coalition, . whose mission - to create and support a huge online database of goods and services, . related to various industries,
. The purpose of this database - to accelerate the development of electronic commerce in the world.
But life Ariba does not cloudless. The company is experiencing strong competition from Commerce One and Oracle. In fact it is in pursuit of these two companies, which are to build their B2B exchanges have concluded a number of major transactions, Ariba acquired Tradex and TradeDynamics.
. Young specialist
. Krech graduated from Purdue University in 1979, receiving a Bachelor of Industrial Construction
. During training, he actively worked in various student organizations. For example, he was a member of the community of Sigma Chi, as well as a member of the University Student Government. After Purdue, Krech went to Harvard, from which emerged later, the owner of the degree of Master of Management (MBA). When asked why he turned to business instead of continuing a career specialist in industrial construction, Krech always answered that "would make a difference in education" and, in fact, did just. Prior to founding Ariba, Krech has devoted 10 years of General Motors, where he held the post of vice president and general manager of GMF Robotics. It was there that he acquired the skills of professional management. From auto giant Krech went to the post of administrator in the company Ransa Corp, successfully engaged in the development of engineering software. He played a leading role at the early stage of development Ransa, during its transformation into the fastest growing software companies in the country (1994) and at the time of its merger with brilliant Parametric Technology Corporation in 1995.
. Doing business with the reliable "their" people
. New Krech really paid attention to e-commerce, working in Benckmark Capital
. In the venture capital firm he joined in 1996 at the request of Bob Kegla, general partner at venture capital firm. At Kegla impressed by the fact that Keith Krech, who began his career working in General Motors, at the age of 26 became the youngest vice president and then as brilliantly distinguished himself at the next work - in Ransa
. Without going into details about, . who is with whom and under what circumstances met, . can be stated: in early September 1996, several colleagues Benckmark Capital, . each of whom worked at the time of the study of electronic commerce and, . particularly, . services for procurement of goods in the B2B, . founded Ariba,
. Benckmark and friendly she Crosspoint became the first investor of the new company: their common initial contribution amounted to 5.5 million. U.S. - 3 and 2.5 million respectively. Thus, Benckmark received 19% of the company, and Crosspoint - 16%.
In the search for office space for the new company took three months after the birth of Ariba. So the first two meetings with clients were held in the boardroom Benckmark, the first drafts of the future architecture of the goods were made in pencil on the tablecloth of a cafe in Silicon Valley.
. In June 1997, Ariba agreed to hold a second round of funding
. On the recommendation of Kegla Krech and Sales Manager, Rob De Santis held talks with several venture capital firms that offer their services since the founding Ariba. Over the past year with little Ariba markedly increased its capitalization. Fact, . that the three big clients - Cisco Systems, . Advanced Micro Devices and Octel Communications had placed orders worth more than a million dollars on a product, . which will be widely available only a few months, . Ariba did even more attractive for investors,
. At this time, Ariba shares were bought at a price six times their original cost.
June 23, 1999 Ariba became a public company. Value of shares was set at $ 23 apiece. By the beginning of trading, it rose to $ 60, and at the close of trading shares were sold already for $ 90. Thus, the first day of Ariba shares rose 300% - such enthusiasm among investors was not observed more than ever!
Today, the group leaders Ariba operates seven very successful new projects. All senior managers have brought to Ariba not only talent and enthusiasm, . and experience in such companies, . as Digital Equipment Corporation, . General Motors, . IBM, . Lotus Corporation, . NeXT Computers, . Parametric Technology Corporation, . Rasna Corporation and SAP,
. All leaders Ariba, said that trying to make their company's "predictable, and profitable, while also trying to ensure its steady growth and 100% customer satisfaction".
After each meeting, or meetings, with the participation of colleagues Krecha, he always wishes them all the best and thanks for your time. But after every meeting with the executive vice president and co-founder of Ariba, Rob De Santis, officials bowed to each other, clasping his hands on his chest in the form of a pyramid - as a session and martial arts.
. Krech had never paid much attention to critics, who believe that, Ariba spend too much money and hired too many intermediaries
. He just wanted his company was growing rapidly. Krech believes himself the sole contender for the gold, since he knows: if he relaxes, Ariba will be a lunch for the competitors