Tim Stevens AMR Research, the Boston-based research and analysis firm specializing in e-business strategy and technologies, has released its list of the trading exchanges providing the most value in each of a variety of industry categories. In general, those exchanges finding success have addressed specific niches within their industry, such as attribute-intensive procurement, and providing functionality that is not available in legacy systems or commercially available software. The specific criteria used to evaluate trading exchanges in the AMR analysis included consistency of strategic vision, depth of industry expertise, the exchange's ability to create liquidity, and level of functionality. The top trading exchanges, along with AMR comments, follow:
Aerospace and Defense: Exostar (www.exostar.com). BAE Systems, Boeing, Lockheed Martin Corp., and Raytheon founded the exchange, which is making notable progress toward their collective vision of becoming the collaborative hub for aerospace.
Automotive and Heavy Equipment: Covisint (www.covisint.com). With the solid backing of Ford, General Motors, and DaimlerChrysler, no other exchange comes close to having as much influence in the industry.
Chemical and Plastics: CheMatch (www.chematch.com). Hard charging and aggressively pursuing dominance of the chemicals commodity market, CheMatch, with a billion-plus dollars of trade in 2000, is one of the most successful e-commerce ventures in any industry.
Consumer Products: Transora (www.transora.com). Transora has $250 million of investment and 55 members. The challenge for management is to turn the investment into functionality for the industry.
High-Tech and Electronics: Converge (www.converge.com). Converge has a good shared services model with a strong combination of online and offline services.
Metals: e-Steel (www.e-steel.com). The consulting firm Accenture is forecasting that 40% to 60% of metal worldwide will be sold over the Internet by 2005, and e-steel is best positioned to capitalize on the opportunity. Besides driving revenues through commodity trades, the exchange has led the march toward offering exchange services for private trading communities.
Oil and Gas: FuelQuest (www.fuelquest.com). The exchange is wisely targeting a market below the radar of the large oil and gas companies.
Paper: PaperExchange (www.paperexchange.com). A 20-fold volume increase along with a 575% increase in transactions for 2000, the first exchange for buyers and sellers of pulp and paper has seen impressive growth and is established worldwide.
Retail: GlobalNetExchange (www.globalnetexchange). Founded by a who's who in retail and in a highly segmented industry, GNX is well on its way to delivering support for collaborative commerce, an increasingly important and necessary piece of retail business.
Utilities: Altra Energy Technologies (www.altra.com). Profitable, self-sustaining, and growing at a rapid rate with more than $1 billion of transactions a month, Altra is working hard on integrating to back-office systems.