Nissho Iwai, Computer Associates Plan Global B2B Exchange
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Japanese trading company Nissho Iwai Corp. and U.S. software developer Computer Associates International Inc. announced this week that they will set up a JV to create a cross-industry B2B worldwide trading exchange.
The new company, Cynomix Corp., will be established in May as a 50-50 partnership between Nissho Iwai and Computer Associates.
The aim of the joint venture is to help enterprises simplify the process of B2B electronic commerce by providing them an all-in-one package of services. <.p> "Cynomix will link buyers and sellers around the world in a borderless and timeless electronic marketplace," said Charles Wang, chairman and CEO of Computer Associates. "The savings in transaction time and cost will be tremendous."
Tokyo-based Cynomix will handle all the necessary B2B application services and paperwork for its clients as well as help them organize their financial, distribution, insurance, and account settlement operations through partnerships with specialist firms in local areas.
"Exchanges are becoming the standard way for buyers and sellers to conduct business over the Internet," said Shiro Yasutake, president and CEO of Nissho Iwai.
"But there is more to exchange than putting buyers and sellers together," cautioned Yasutake. He said the goal of the partnership is "to create a new model of e-business communities that will reduce supply-chain costs, speed time to market, and cut waste" by leveraging the combination of Nissho Iwai's trading expertise and Computer Associates' e-business technologies.
Cynomix will utilize Computer Associates' Jasmine ii eBusiness platform for efficient client information exchange and process integration and its Neugents predictive management technology to optimally match buyers with sellers and streamline transaction physical logistics.
Cynomix will launch operations in Asia this summer by providing its services to the Singapore-based Asia Trade Alliance, a joint company that will be established by Nissho Iwai, Indonesia's Sinar Mas financial group, and U.S.-based CommerceOne.
Plans call for offices to be set up around the world.
Cynomix's revenues will come from commissions based on the amount of trading customers undertake.
The partners have set customer transaction value targets of 500 billion yen (US$4.8 billion) by the third year of operation and 1.8 trillion yen (US$17.1 billion) by the fifth year.