2001 Press Releases
Glovia in the news
Demand Aggregation Provides the Link between Technology and the Bottom Line at Butler Symposium 2001.
June 21, 2001 - Delegates attending the Butler Group Symposium heard that demand aggregation is the key to effective collaborative commerce, according to Matt O'Malley, President and CEO of Glovia International, the business to business e-commerce subsidiary of Fujitsu.
As part of the central symposium theme which examines how information technology contributes to the bottom line, O'Malley discussed how demand chain management provides businesses with the flexibility and responsiveness that allows them to fully exploit the potential efficiencies and economies of a global digital marketplace.
According to O'Malley, many e-commerce projects have been disappointing simply because, swept up in the hype of the 'Internet revolution', many companies have been distracted from the basic principles of supply and demand. "To see returns, e-commerce must first and foremost be a tool for aggregating real demand in real time," he maintained.
"The internet has begun to shift the balance of power from the seller to the buyer, creating a demand chain," continued O'Malley. "Therefore, IT that aims to improve the efficiency of supply processes is destined to be unsatisfactory as it will only be fighting half the battle. To become a global e-business, companies need to transform their business processes around their customers, and be able to meet demand by using the kind of real-time information that, to date, only the Internet has been able to provide."
The traditional business model relies on building something, storing it, shipping it and then selling it, meaning a company could only be as efficient as its sales forecasts. The new model is to sell, source and ship. "Companies that can master this will improve customer relationships, reduce time to markets and also drive costs out of their supply chain," said O'Malley.
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