It is amazing the differences there are culturally to the concepts of eAuctions and their widespread adoption. In Europe, eAuctions have been adopted by most organizations and are considered an integral part of the strategic sourcing process. But in North America there remains quite a bit of skepticism and doubt about not only adopting the practice, but which categories are the best candidates to benefit from this strategy.
Professor Horacio Falcão, a Senior Affiliate Professor of Decision Sciences at INSEAD, warns companies should not start – nor necessarily end – on “price” when it comes to negotiations.
Falcão has written on the concept of value for several years and his work includes the 2010 book Value Negotiation: How to Finally Get the Win-Win Right.
To read the first part of this interview, click here.
O: With all of that in mind, what are the implications for the global business services model? Where do you sit on global business services (GBS)? Are you a fan?
The “invisible hand” of the market could be giving you a sharp slap more often than not, according to the Nobel laureates George A. Akerlof and Robert J. Shiller.