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.
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“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.
Cynomix will also offer a range of screening services, such as research
on firms, a history of online transactions, and a reference list of
client e-commerce sites.
“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.
