NEW YORK— Panelists at the B2B E-Commerce Revolution Real Estate & Construction Conference, held here in November, debated the necessity of electronic corporate ventures, like Avendra, and discussed the impact of e-procurement alliances. At a seminar entitled, “Joined-at-the-Hips Corporate Ventures: A Defensive Strategy or Growth Opportunity?” panelists discussed recent e-commerce initiatives and alliances affecting the real estate and hotel industries. Mark Rose of Jones Lang LaSalle, the panel moderator, set the tone with a brief slide show presentation noting the recent alliance between Marriott International, Hyatt Corp. and Bass Hotels & Resorts to form the e-procurement venture— Avendra. James Grogh, chief investment officer/e-commerce at Trammell Crow, noted these new “virtual integration companies” stem from a need to simplify the procurement process, which has historically been “very cumbersome.” He noted there are more than 250,000 vendors in real estate. Another seminar, “E-Procurement: Supply Chain Management Through Operational Integration,” offered further insight into e-business processes. Panelists included Michael Stewart, CEO/ Sitestuff.com, and Christopher Cogan, chairman/ GoCoop.com, which powers the new Avendra venture. Cogan said that by using the Internet, his company is able to increase supplier integration and create instant communication between the suppliers and the buyers to immediately solve problems. Stewart noted the biggest challenge with forming these electronic alliances is convincing established companies to change the way they’ve historically been doing business. A seminar called “Digital Trailblazers: Real Estate and Construction B2B Business Models that Work” featured Christopher Soder, president/hotels at Priceline.com. Soder discussed projections for on-line hotel sales that stated by 2003, Internet sales would account for 12% of all hotel sales, a significant increase from the current 5% of rooms booked via the Internet. Though the percentage of rooms booked electronically is expected to increase, Soder noted that the number of new successful travel sites probably won’t increase as “funding is drying up” and consolidation is taking place.
