- divine (corporation)
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divine, inc Industry Internet Incubator, enterprise software Fate bankruptcy Founded 1999 Defunct 2003 Headquarters 
USAKey people Andrew 'Flip' Filipowski founder Products Software divine inc, was a Chicago-based company that started out as an Internet Incubator named divine interVentures. The company was founded by Andrew 'Flip' Filipowski in 1999.
Like many other "dot-com" companies, divine had many tales of excess. The board of directors once had over forty members and included luminaries such as NBA star Michael Jordan. divine was one of the last Internet companies of this era to go public. Their much-ballyhooed IPO in July, 2001 landed with a resounding thud and never closed more than a few percent above the initial offering price.
When the Internet stock bubble burst, divine switched business models. Its management decided to become an enterprise software company offering an extensive array of products and services. Now known only as divine, it took the most viable of its incubator businesses and purchased other companies with stock values deflated by the collapse in the stock market. Many of these businesses were unprofitable, leading to cash-flow problems.
The whole premise of the original divine interVentures was a concept known as an "Internet Zaibatsu". The core concept was that the normal departments of a corporation such as: HR (talent divine), Marketing (Buzz divine), Web development (Xqsite), Sales (Brandango), and other operational areas would become their own companies. These companies were called the greenfield companies.
These companies would then sell their services to the other greenfield companies, as well as to external companies that were funded by divine interVentures, at a discounted rate from what they could receive if they outsourced those functions to external vendors. The whole premise was based on a Japanese business model called a keiretsu. divine interVentures, which was the center of the circle, was the parent corporation and was essentially acting as a venture capital company funding both the greenfield companies, as well as the external companies that they invested in.
Key Staff
As of early 2003, the board of directors consisted of:
- Tommy Bennett, Computer Associates
- John A. Cooper, ThinkTank Holdings, LLC
- James E. Cowie, Frontenac Company
- Michael Cullinane, divine, inc.
- Andrew 'Flip' Filipowski, divine, inc.
- Michael H. Forster, Internet Capital Group
- Arthur W. Hahn, Katten Muchin Zavis
- Paul Humenansky, divine, inc.
- Kevin Nater, Dell Computer Corporation
The executive leadership, also as of early 2003, was:
- Andrew 'Flip' Filipowski, Chairman and Chief Executive Officer
- Ron Bienvenu (aka Rodney Bienvenu), Chief Planning Officer
- Buster Brown, Executive Vice President, Sales
- Ted Collins, Senior Vice President, General Manager of Collaboration
- Michael Cullinane, Executive Vice President and Chief Financial Officer
- Brian Diver, Chief Operating Officer, divine Professional Services
- Bill Dumont, Senior Vice President and General Manager, CIM-Telephony
- Joe Forgione, Senior Vice President and General Manager, Content Management
- Tom Hammergren, Senior Vice President and General Manager, CIM-Internet Products
- Paul Humenansky, President and Chief Operating Officer
- Scott Kane, Chief Operating Officer, divine Software Services
- Ken Kinsella, Chief Operating Officer, divine International
- Jim Krzywicki, Senior Vice President and General Manager, Enterprise Content
- Chauncey Kupferschmid, Senior Vice President, Customer Services
- George Landgrebe, President, divine Software Services
- Ken Mueller, Senior Vice President of Finance
- Jeff Schultz, Chief Marketing Officer
- Jude Sullivan, General Counsel
- Ed Szofer, President, divine Professional Services
- Paul Tatro, President, divine International
- Rao Tummalapalli, Managing Director, divine India
- Sunny C. Vanderbeck, President, divine Managed Services
- Alex Walker, Senior Vice President, Mergers and Acquisitions
- Richard Wallace, Chief Information Officer
- Katharine A. Wolanyk, Chief Alliance Officer
- Anthony A. Mattucci, Chief Quality Officer
Demise
The inside story about the beginning of the end for divine interventures is a sad one. Many people[who?] truly felt that Chicago was on the cusp of a momentous success story that mirrored the success of the Silicon Valley. The term "silicon prairie" was invented and being thrown around.
Their demise happened as Flip and the management team went on the road show to take the company public which was right at the time when the bubble was set to burst. Flip turned his focus from managing his zaibatsu to taking the company public, and the presidents of his greenfield companies, not used to the new, unusual business model, fell into destructive habits. For example, Buzz divine (Marketing) began hiring web developers, which was outside the scope of their zaibatsu business model and which should have been covered by Xqsite. Examples of this began happening more frequently. The management of the greenfield companies began to revert back into well ingrained, standard business practices. Some insiders felt Flip should have been much more aware of what his greenfield presidents were doing, and should have worked harder to maintain the new business model that he introduced.
At IPO, the company came out at $9/share and never went much higher than that. Read below for the death knell of divine, but by the time the company went through the RoweCom disaster most of the core people had gone, and the company was a shell of what it formally was.
One of the companies that was acquired by divine was RoweCom of Massachusetts, a library periodical subscription business. In late 2002, RoweCom was having trouble fulfilling its commitments to its paid subscribers. Divine attempted to sell the RoweCom subsidiary to competitors. When these deals fell through, RoweCom was forced into Chapter 11 bankruptcy. RoweCom immediately filed suit against divine, alleging that divine had improperly diverted RoweCom's operating cash to other parts of its struggling business. Divine subsequently filed for Chapter 11 on February 25, 2003. In April 2003, divine's assets were sold at auction.
Before the IPO and the challenging period that followed, divine was considered by some in the Chicago tech circles to be the most exciting company to work for in Chicago area. The company had a beautiful work environment, free snacks, free fountain drinks, pool tables, and amenities like arcade machines for breaks. They had an excellent benefits package, and people truly enjoyed working there.
A list of companies purchased by divine: (incomplete)
- Blueridge Technologies (Rebranded as mindwrap by divine)
- Data Return
- Delano Technology (August 1, 2002)
- ePrise
- eShare Communications
- LiveOnTheNet, Inc.
- marchFIRST
- Northern Light
- Open Market (August 16, 2001)
- Parlano (2001)
- Perceptual Robotics, Inc. (February 2002)
- Real World Technology/RWT (February 2002)
- RoweCom (November 6, 2001)
- SageMaker (April 18, 2001)
- Synchrony (September, 2001)
- Viant (September 27, 2002)
- Web Design Group (Summer 2000)
- Westbound Consulting (February 2000)
External links
Categories:- Defunct computer companies of the United States
- Companies based in Chicago, Illinois
- Companies established in 1999
- Companies disestablished in 2003
- Defunct companies based in Illinois
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