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Diamond Technology Partners Helps Define Internet-Based Virtual Marketspace

29 February 2000

Diamond Technology Partners Helps Define World's Largest Internet-Based Virtual Marketspace

            E-Business Services Firm Helps Ford and General Motors
              Combine Online Procurement Systems and Operations

    CHICAGO, Feb. 28 -- Diamond Technology Partners Incorporated
helped craft the technology architecture that will enable the
Big Three auto makers and their respective software partners to combine their
online business-to-business exchange initiatives.  The impact of that
"Internet-time" cooperative effort will be felt for years to come, predict
members of the Diamond team who helped in the formation of the world's largest
Internet-based virtual marketspace.
    General Motors Corp. and Ford Motor Co. announced
February 25 that they will merge their Internet business-to-business
exchanges, and that DaimlerChrysler will share in equal ownership
of the new venture.  The new, fully integrated e-commerce supply chain
platform promises tremendous benefits for the auto makers and their suppliers,
including improved speed-to-market, reduced costs and higher quality, while
making progress towards enabling consumer-driven customization strategies.
    Diamond's president, Adam Gutstein, said, "Beyond the faster, better,
cheaper benefits to the supplier network, the new venture will provide a
platform that can be leveraged far beyond the automotive industry.
    "A seamless online purchasing environment can potentially generate
enormous value beyond its original automotive industry scope," said Gutstein.
"Spinning this venture off into a separate e-business may well turn out to be
the real killer app."

    Technology Alignment Puts Benefits Within Reach
    Diamond was brought into discussions between Ford and General Motors to
help reconcile their disparate online purchasing initiatives.  General Motors'
Trade Xchange is aligned with software company Commerce One ;
Ford's AutoXchange is a joint venture with Oracle Corp. and
Cisco Systems .  Diamond worked with all the parties in defining
a workable business and technical architecture that is scalable, reliable, and
equally leverages the strengths of the products provided by each of the auto
makers' technology partners.
    "Diamond was asked to find a way to leverage the existing operational
infrastructures of GM's TradeXchange and Ford's AutoXchange with the best of
the leading exchange technology from both Commerce One's MarketSite and
Oracle's Exchange," Gutstein said.  "I'm proud to say there is universal
agreement that this new venture will present a single interface to the
automotive supply chain, reducing the complexity required in communicating
with the exchange, eliminating the time each auto maker might have spent
developing costly interfaces, and enabling collaboration throughout the supply
chain."
    "In short order," said John Sviokla, vice-chairman and head of Diamond's
strategy practice, "this will become the de facto industry standard for open,
scalable and highly available exchange architectures.  It will be capable of
handling large transaction volumes beginning with the combined $160 billion of
Ford's and General Motor's indirect and direct purchasing.
    "However, the real power lies in the long term business vision, the
underlying network economics and the leading architectural design which will
allow for growth well beyond automotive industry purchasing transactions,"
Sviokla said.

    About Diamond
    Diamond Technology Partners Incorporated is an e-business services firm
that helps clients develop and implement Digital Strategy(SM) -- business
strategies for the digital age.  Headquartered in Chicago, the company serves
clients across the United States and internationally in the automotive,
financial services, consumer and industrial products, telecommunications,
energy, insurance, and health care industries.  Diamond's Web site can be
found at http://www.diamtech.com .