Exchanges grow amid fears Exchanges grow amid fears Exchanges are booming as more firms see the benefits of online procurement. But security is still an issue and there is no consensus as to how markets should work, explains Matthew Broersma O nline exchanges promise to greatly reduce costs for businesses, according to Sanjiv Sidhu, chairman and chief executive of exchange software vendor i2 Technologies.
Online exchanges bring buyers and suppliers together.
Exchanges may also simplify and standardise much of the buying and selling process. The three companies, along with most major PC manufacturers, were in Vienna last month for i2's Planet 2000 conference. Several major car manufacturers have announced rival exchanges, and the trend has extended to such industries as chemicals and metals manufacturing. If the price of a company's major input declines and the price of a major output increases, then a logical result would be an increase in the value of the company as reflected in its stock price,' said Deloitte in a recent report. I2's Sidhu said that online exchanges will force companies to respond more quickly.