ABB forming industrial IT software joint venture with U.S. partner
SKYVA International (Medford, MA) is a developer of Java-based software for "collaborative commerce" where systems seamlessly link the business processes of suppliers, manufacturers and customers. Solution models address collaborative supply chain functions such as available-to-promise, advanced planning and scheduling, operations execution, procurement management, and performance visibility.
As a result, manufacturers can better balance the availability and flow of raw materials from their suppliers against finished products leaving the plant. Customers can connect the entire supply chain to see what products are available, at what price, and when they can be delivered. SKYVA software integrates all parts of the supply chain, including orders, transactions, and delivery commitments.
"This business has excellent growth potential, and builds on our already existing technology platforms," says Göran Lindahl, ABB's president and CEO. "Faced with dynamic markets, growing global competition, and the need for e-business solutions, our customers increasingly demand new ways to speed up, become more efficient, and move into the digital economy."
ABB said the partnership will spark growth in its industrial IT business, offering tailored software solutions that link production and transactional processes for manufacturing customers. The software can naturally be applied to the automotive, chemical, mining, and cement industries, to name a few.
ABB Automation, one of ABB's six global business segments, brings to the venture its expertise in real-time process automation across a wide range of industries. ABB Automation is the world's largest automation company with 1999 revenues of more than US$8 billion.
The systems are designed to complement offerings from major ERP (Enterprise Resource Planning) suppliers, allowing customers to maximize their installed ERP assets.
The joint venture will be headquartered in the United States and, pending customary approvals, begin operation immediately. It will employ well over 300 IT and e-business specialists in its first year of operation, and expects to take on an additional 200 software and business-reengineering experts as the business grows.
ABB said it expects the joint venture to generate substantial new revenues from licensing this technology directly to customers and from delivering finished solutions through ABB's market channels. In addition, the joint venture will expand ABB's offering beyond the manufacturing sector and into service sectors, such as banking and insurance.
"This alliance will add substantial resources and new revenue opportunities to our rapidly growing business, while providing our customers with a complete solution from plant automation to the business systems," says Hans-Werner Hector, board member of SKYVA International.
The parties envision taking the company public in the next few years.
Edited by Jim Lardear
Managing Editor, PlantAutomation.com