Manheim Auctions: Transforming Interorganizational Relationships with an Extranet

Abstract

This case study demonstrates how a traditional face-to-face auction has been augmented by an electronic sales system to draw on the advantages of an extranet (lower site specificity, less risk, more information, just-in-time buying, lower costs). The paper suggests adoption strategies for an extranet and describes how to assess a disintermediation threat. It explains that an extranet is a device for redesigning interorganizational structures and provides further evidence of the ongoing creative destruction of existing business practices caused by Internet technologies.