Textron Expands E-business Activities; Investment in EqualFooting.com is latest alliance to focus on new economy
10 July 2000
Textron Expands E-business Activities; Investment in EqualFooting.com is latest alliance to focus on new economy
PROVIDENCE, R.I. - In an expansion of its e-business strategy, Textron Inc today announced it has invested $25 million in EqualFooting.com. EqualFooting.com is a B2B online marketplace offering a wide variety of products and services, including purchasing, financing and shipping targeting small businesses primarily in the manufacturing and construction industries. The partnership is the latest in a series of recent Internet-related investments, alliances and internal initiatives by Textron."The Internet is delivering vast improvements on the way we operate our business -- specifically how we work with our customers to sell and distribute products, how we buy our materials and how we interact within our companies," said Textron Chairman and CEO Lewis B. Campbell, who also will join EqualFooting.com's board of directors. "Our relationship with EqualFooting.com is one more example of how we are aggressively pursuing and incorporating the best available web-based services and technologies."
Textron's e-business initiatives have gained momentum over the past few months through internal efforts and external alliances. Beginning in earnest in late 1999 with the appointment of Ken Bohlen as chief innovation officer to lead development and execution of Textron's e-commerce strategy, Textron has quickly implemented strategies to drive growth and operating improvement across the company. Specific initiatives implemented so far in 2000 include:
-- A strategic alliance with an investment of $100 million in Safeguard Scientifics. Through the alliance, Textron has preferred access to Safeguard's network of 250 Internet-related technology companies. Textron is working with Safeguard partner companies to develop and execute its global e-business strategies.
-- Creation of an e-Business Council. The council consists of 14 executives who develop specific e-business recommendations, coordinate efforts across Textron's business units and advance Textron's e-business progress.
-- Intensive and ongoing e-business education of key Textron employees and Textron's Board of Directors through "JumpSmart" training sessions conducted by Cambridge Technology Partners (a Safeguard Company).
-- Formation of a joint venture between Textron Financial Corporation and Entrade to create a new e-business, AssetControl.com. AssetControl.com provides an online B2B marketplace specializing in the management and disposition of used industrial equipment, excess inventory and commercial real estate. AssetControl.com is already profitable after just three months of operation.
-- Launch of various division-level websites. Textron companies Bell Helicopter and Cessna Aircraft have both opened online parts stores and developed web-based interactive training classes for pilots. RIFOCs, a leading manufacturer of specialized, high-precision fiber optic products, offers customers a Cable Assembly Builder on its website where customers "drive the CAB" by selecting the length of cable they need, the connectors, the type of fiber and the cable mode. The custom cable assembly is built and priced online.
-- An alliance with EDS CoNext and Ariba 20 to implement e-procurement processes to bring significant cost savings on the purchase of indirect goods and services across the company's divisions. Over the next three years, Textron expects its total e-procurement initiatives related to spending on indirect materials and services to reduce costs by over $150 million.
"For Textron, the Internet is a tool that will complement and support our important distributor networks, while reducing cost in the supply chain. This collaboration with EqualFooting is another important step in support of our e-business strategy," said Campbell.
Textron will use EqualFooting's technological capabilities and experience to create targeted Internet applications for buying and selling goods online. Selling opportunities will be explored both through the existing EqualFooting.com marketplace and by developing Textron-branded sites powered by EqualFooting.com's technology. In addition, EqualFooting will serve as a supplementary e-procurement tool, complementing the EDS CoNext and Ariba platform for the buying of indirect goods.
About EqualFooting.com
EqualFooting.com is a B2B online marketplace that places small businesses on "equal footing" with large companies in the areas of purchasing, financing and shipping. The site's innovative business model allows members to buy, finance, and schedule delivery immediately--or save even more later, using the Request-For-Quote (RFQ) system.
About Textron
Textron Inc. is an $11.6 billion, global, multi-industry company with market-leading businesses in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 68,000 employees and major manufacturing facilities in 30 countries. Textron is among Fortune magazine's "Global Most Admired Companies."