For Information:

Susan Breon

814-898-6500

susan.breon@ebizitpa.org

The Center for eBusiness Pilots Their Own Electronic Trading Tool for Branding Project

ERIE, PA (May 9^th, 2003) --- The Center for eBusiness and Advanced Information Technology has put into practice its first electronic supply chain offering, DynaQuote, a web-based business-to-business (B2B) “reverse auction” tool. A reverse auction is where qualified sellers bid against one-another through the Internet to sell their goods and services to buyers by offering the lowest price. Ebay is the most well-known example of Internet online auctions; reverse auctions switch the places of buyer and seller and bidding goes to the lowest price.

“ We used an electronic “reverse auction” to award our Center branding project because we thought it was an effective way for prospective service providers to become engaged first-hand with the Center and its premier product, DynaQuote”, explained Susan Breon, President of the Center. “We were greatly impressed with the willingness of local service providers to participate and their quick grasp of the tool. It shows that local advertising and public relations agencies are ready and willing to adapt new technologies that will help them differentiate themselves in the marketplace.”

Six advertising agencies were invited to pre-qualify by submitting samples and budget estimates of branding projects they had previously completed that were similar in scope. Each agency received comprehensive project specifications to prepare their bids, which is critical to successful bidding. A starting price was established based on market trends and the auction was conducted on April 30^th with five agencies actively participating. The service providers submitted bids electronically and reacted to bids from others.

Tungsten Creative Group placed the final and winning bid. “This was our first reverse auction experience,” said Jody Farrell, partner at Tungsten. It was surprisingly simple to use and we felt very comfortable with our bid price. We did not go below what we determined to be our lowest price for the project.”

“We had highly qualified suppliers bidding on the project and they not only understood the process and the specifications, but were able to effectively do business on the Internet,” said Breon. “ The event also provided valuable feedback from all the participants regarding their experience using the auction tool and its design,” Breon added. She said the Center is currently working with more than a half dozen regional companies and organizations to train buyers and sellers and prepare auction specifications.

The Center for eBusiness and Advanced IT is a state-wide Ben Franklin Technology Authority initiative designed to help Pennsylvania businesses and organizations understand and use information technology and e-business tools. It is headquartered in Erie, PA and located on the Internet at www.ebizitPA.org..

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