Filed by AppNet, Inc.
Pursuant to Rule 425 Under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Subject Company: AppNet, Inc.
Commission File No. 000-26263
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FOR IMMEDIATE RELEASE
Point of View
Ken Bajaj, President and CEO of AppNet
Implementing eMarketplaces: The Race is On
This is a great time to be in e-business, and an even better time to be
building, facilitating and participating in eMarketplaces. Analysts
estimate that $80.4 billion will be spent on B2B e-commerce transactions
this year, and that those revenues will increase exponentially for the next
five years. If these trends continue as predicted, over 50% of an estimated
2.7 trillion in B2B commerce will be done through eMarketplaces by 2004.
As you can imagine, these figures have companies racing to get in on the
action - racing to implement online B2B trading hubs, or eMarketplaces. But
the question many corporate leaders are wrestling with is this: Is getting
there first more important than getting it right?
Activity over the last few years indicates that getting there quickly is a
priority for most. 67% of the Global 2500 are now doing a significant
amount of business over the Web, and the remaining 33% plan to get on board
within the next year.
But such rapid implementation has its downside. Companies developing
eMarketplaces face a variety of challenges that often stem from limited
understanding of industry dynamics and technologies. As a result, many end
up making critical mistakes during development. This is especially true of
startups that lack a deep knowledge of vertical industries. These mistake
often include: failure to develop strategic alliances with other
marketplaces, creation of a poorly designed solution, and focusing
exclusively on either buyers or sellers -- rather than bringing buyers and
sellers together and giving them the ability to achieve critical mass and
liquidity.
Savvy companies can avoid these pitfalls by understanding that
eMarketplaces require a solid e-business strategy before they are even
brought online. The eMarketplaces that will succeed are those capable of
handling high transactional volume and quickly moving beyond pure
transactional and infomediary services to include financing, logistics,
distribution, credit, insurance, and more. The eMarketplaces that will
dominate are those that can integrate their partners quickly, and provide
an open architecture for them to do business in.
So how can a business ensure that its eMarketplace will succeed? The answer
is simple -- partner with a proven leader in eMarketplace development and
participation. Of the many companies that offer such services, AppNet is
the standout.
AppNet is currently implementing B2B eMarketplace solutions for 10
customers: including UCCnet, the Internet's largest eMarketplace for B2B
transactions; ProcureZone.com, an eMarketplace for the power plant
construction equipment industry; and TelecomSmart, an eMarketplace for
small business telecom services.
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AppNet also has a number of alliances in place to help implement its
eMarketplace solutions. Some of AppNet's partners include Commerce One,
Great Plains, Yantra, eCredit, mySAP.com, and WebMethods.
Our planned merger with Commerce One will create the first fully integrated
e-commerce applications, strategy consulting and Internet professional
services company in the B2B eMarketplace industry. Our companies share the
same vision of building a Global Trading Web SM that allows thousands of
separate exchanges to interconnect and operate seamlessly as one
marketplace. And by combining Commerce One's procurement application and
portal site technologies with AppNet's strategy, creative and e-business
integration expertise, we will be able to deliver end-to-end eMarketplace
solutions -- and help our customers to achieve critical mass -- in record
time.
