Study: Despite Dissatisfaction, Companies Will Increase Use of BTB Exchanges

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Most companies are disappointed with the performance of business-to-business exchanges, yet they expect to use them for a greater portion of their future business spending, according to a joint study released yesterday by Giga Information Group and Booz Allen Hamilton.

Nearly half of the respondents reported that BTB exchanges have "mostly" or "absolutely" failed to meet their expectations, and only 10 percent of the respondents felt exchanges met expectations. They agreed that organizational changes, such as standardizing and developing new procedures, improving and introducing technology systems, and introducing integration technology, are needed to capture the benefits from exchanges.

The study found that the role of CEOs in developing an exchange can also contribute to disappointing results. It said that chief executives have been driving exchange activities, which has limited the autonomy of business units. It also said that CEO's choices are based around strategic purpose, and the operational managers who could make more informed evaluations of the benefits and limits of exchanges often have been involved later in the decision making process.

The Booz Allen/Giga survey revealed that the greatest potential benefit envisioned by companies is saving money, both in price of goods they buy and in expenses involved in buying and selling. Companies surveyed said they also anticipate savings by collaboratively developing products, planning and forecasting demand, production and logistics with partners, and managing their relationships with their customers.

Giga Information Group is a global technology advisory firm that provides objective research and personalized consulting. Booz Allen Hamilton is a consulting firm for businesses and governments.

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