InPart: Summary

Professor Joel Huber

Fuqua School of Business

How InPart Secured Venture Capital Unambiguous value-added benefit Clear path to success Big payoff if successful Reduce risk

Best people VC’s co-opted as directors Flexibility--IPO or buyout

What happened to InPart?

Played manufacturers against each other—33 parts suppliers sign on

200 design firms paid about $1000/seat to be part of the system

Used Parametric to sell system, and InPart to sell Parametric

1998 Parametric bought InPart for $45MM in stock

What happened to Stacey Lawson?

She had a 10% stake in InPart 1998 VP of Parametric with focus on new

produts and strategy and their new Windchill product

2002 joins Seibel Systems as VP to build their Employee Resource Management system

Source: Google: Stacey Lawson + Date, company

What happened to Cad Vendors? Leaders (2002)

IMB-Dassault-SAS --$1.6 B Electronic Data Systems--$1.5B Parametric-- $.8B…same level as 1998!

Focus Links to procurement, manufacturing, accounting

—Enterprise software

Source: WSJ 10/10/2002

What happened to Parametric?

Source: Dow Jones Online

Stacey Lawson Leaves

Parts suppliers migrated to electronic catalogs

Lessons: Need to understand the motives of all parties Designers

Value per design depends on firm size Organizational resistance to the service

Product manufacturers Cost savings Market change

CAD vendors Motivated to internally replicate InPart’s business Opportunity for an exclusive alliance