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Keith KrachCreator of Ariba
Country:
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Content:
Biography of Kate Kretch
Kate Kretch is the founder of Ariba Ariba Inc., a global leader in providing business-to-business e-commerce services and developing software for resource management and online procurement operations. The company enables both buyers and sellers to automate transactions online, reducing costs for both parties. Ariba's clients include American Express, Arthur Anderson, Bank of America, BMW, Cargill, Chevron, Dell, DuPont, Federal Express, Hewlett-Packard, IBM, Morgan Stanley, Motorola, Nestle, and Swiss Air. Kate Kretch was recently named "Entrepreneur of the Year 2000" by Ernst and Young. Under Kretch's leadership, Ariba was recognized by Upside Red and Herring magazines as one of the "hottest" companies in 1999. In 1998, Red Herring magazine named Ariba the best-managed private IT company, and Kretch was recognized as one of the top 10 entrepreneurs of 1998.
Ariba's Journey
Ariba started by providing solutions for purchasing office supplies such as furniture and calendars. Over time, Ariba began using its technology to assist companies in more significant transactions, such as buying goods for their suppliers or selling products to buyers. Kate Kretch recognized the immense potential of the business-to-business e-commerce market and founded Ariba in 1996. Ariba quickly became a key player in shaping the future of e-business.
The Early Years
Kate Kretch graduated from Purdue University in 1979 with a bachelor's degree in industrial construction. During his time at Purdue, he was actively involved in various student organizations. After Purdue, Kretch attended Harvard and obtained a Master of Business Administration (MBA) degree. Kretch decided to pursue a career in business instead of industrial construction because he wanted to make a difference in education. Before founding Ariba, Kretch spent ten years at General Motors, where he held the position of Vice President and General Manager of GMF Robotics. He gained valuable management skills during his time at the automotive giant. Kretch then transitioned to an executive role at Ransa Corp, a successful engineering software development company. He played a leading role in the company's rapid growth and eventual merger with Parametric Technology Corporation.
Building Ariba
Kretch first became serious about internet commerce while working at Benckmark Capital. In 1996, several colleagues at Benckmark Capital who were exploring the possibilities of electronic commerce, particularly in the area of B2B procurement services, founded Ariba. Benckmark and Crosspoint, another venture capital firm, became the first investors in the new company. Ariba quickly gained traction, attracting major clients such as Cisco Systems, Advanced Micro Devices, and Octel Communications. This success led to a significant increase in Ariba's valuation, making it an attractive investment opportunity.
Ariba's Success
Ariba went public on June 23, 1999, with an initial share price of $23. On the first day of trading, the stock price soared to $90, a 300% increase. Today, Ariba faces strong competition from companies like Commerce One and Oracle. However, Ariba's experienced leadership team, which includes professionals from companies like IBM, General Motors, and SAP, continues to drive the company's success. Under Kate Kretch's leadership, Ariba aims to provide predictable, profitable, and customer-focused solutions in the rapidly evolving world of e-commerce. Despite critics' concerns about spending and intermediaries, Kretch remains focused on Ariba's growth and staying ahead of competitors.
