Exostar chose as its lead technology partner Commerce One, an e-business leader whose 3,000 employees are helping put together more than 100 electronic markets worldwide, half of which already are live. Patrick Holcomb, director of aerospace and defense at Commerce One, thinks the concept is a winner in aviation markets. The big companies also want to be easier to do business with. Holcomb emphasized two ingredients of successful e-markets. If everyone can use Exostar easily, the second ingredient, participation volume, will create scale economies and other benefits.
Participation is the real key to making it work.
Exostar went live with a Boeing procurement of indirect, or non-aircraft, material. All four Exostar founders are doing deals on the site now. They are considering direct procurement for aircraft materials, and that capability exists. Boeing also has done sell-side auctions, according to Holcomb. They had excess aluminum and used Exostar to auction it off.