emaven estrategy partners 1 reprinted with permission of emaven, inc. copyright © 2000 emaven, inc....
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eMaven eStrategy partners 1
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Internet UseInternet UseGreat Triumphs and Blunders of F1000Great Triumphs and Blunders of F1000
Linda RossettiFounder, eMaven, [email protected]
eMaven eStrategy partners 2
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersWho is winning? Extend Existing BusinessWho is winning? Extend Existing Business
eMaven eStrategy partners 3
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersWho is winning? New Business ModelsWho is winning? New Business Models
Federated
Fingerhut
Macys, Bloomingdale’s, Lazarus, Bon Marche,
Burdines,Rich’s Goldsmiths, Sterns, Fingerhut
Ordertrust
Wedding Channel.com
$1.7 Billion1999 investment
$200M annually1999, 2000
$33M
N/A
Backend Operations
Frontend Revenue Generation
eMaven eStrategy partners 4
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersWho is winning? New Business ModelsWho is winning? New Business Models
eMaven eStrategy partners 5
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersWho is winning? Performance DriversWho is winning? Performance Drivers
Delphi Automotive Systems• $29 Bn Auto-parts manufacturer• $360 MM purchases through online
auctions in 1999• Saved $58 MM or 16% of normal
cost of goods purchased• Only 3% of total annual purchasing
volume being transacted online• Potential savings of $2.4 Bn if total
annual purchasing volume shifted online
• Purchasing process time reduced from 2-16 weeks to 2-5 weeks
Source: Reuters 3/6/00; eMaven analysis
eMaven eStrategy partners 6
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersWho is winning? Extend Existing BusinessWho is winning? Extend Existing Business
eMaven eStrategy partners 7
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlunderseCommerce ProjectionseCommerce Projections
$184$144$101$64$39$20$8
$2,696
$43 $109
$406
$716
$1,167
$1,823
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
1998 1999 2000 2001 2002 2003 2004
Bill
ion
s
B2B RevenueB2C Revenue
Source: Forrester Research 10/99; Forrester Research 2/00
B2B CAGR = 99% B2C CAGR = 69%
eMaven eStrategy partners 8
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Triumphs and BlundersTriumphs and BlundersB2C ProjectionsB2C Projections
$0
$5
$10
$15
$20
$25
$30
$35
2000 2004
Bil
lio
ns
AutomobilesHousehold GoodsEvent TicketsGifts & FlowersHousewareFood & Bev.Health & BeautyMiscellaneousRecreationApparelMediaElectronicsLeisure Travel
US Online Retail Revenue by Category
Source: Forrester Research 1/00
Total = $39 Bn 1% of Total Retail Revenue
Total = $184 Bn 7% of Total Retail Revenue
eMaven eStrategy partners 9
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Triumphs and BlundersTriumphs and BlundersB2B ProjectionsB2B Projections
$0
$100
$200
$300
$400
$500
$600
2000 2004
Bil
lio
ns
Heavy IndustriesAerospaceShippingIndustrial EquipmentPharmaceuticalsConstructionFood & AgricultureConsumer GoodsPaper & OfficeUtilitiesPetrochemicalsMotor VehiclesComputing & Electronics
Source: Forrester Research 2/00
U.S. B2B Growth by Industry
Total = $406 Bn 3% of Total Business Trade
Total = $2.7 Tn 17% of Total Business Trade
eMaven eStrategy partners 10
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Triumphs and BlundersTriumphs and BlundersChannel Shift - Who stands to win?Channel Shift - Who stands to win?
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
1999 2000 2001 2002
Billions
Incremental Sales
Total Online Sales
Source: Jupiter Communications 6/99
1.2
20
2.4
39
4
64
6.6
101
eMaven eStrategy partners 11
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersUse: Business vs. HomeUse: Business vs. Home
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Households Businesses
Not Online
Online
Source: Goldman Sachs 11/99
Total: 100.2 MM
Total: 6.23 MM
2000 U.S. Internet Penetration: Business vs. Residential
eMaven eStrategy partners 12
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Triumphs and BlundersTriumphs and BlundersBusiness’ Internet Activity Business’ Internet Activity
Source: Morgan Stanley, 8/11/99
28%
52%
97%
20%
55%
92%
2%12%
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Access Web Site eCommerce
Small (1-99)
Medium (100-999)Large (1,000+)
Internet Activities by Company Size: 1999
By ‘04Business with web
siteswill include
70%of small, 95% of
medium and 98% of large.
eMaven eStrategy partners 13
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
$350
$1,000
$2,000
$0
$400
$800
$1,200
$1,600
$2,000
Low Average High
79%
11%
10% LaborRelated
Hardware
Software
Reported Cost of eCommerce Site Development(in thousands)
Spending During Site Establishment
(n = 20 midsize to large corporations that were launching first phase e-commerceSource: Gartner Group May 1999
Triumphs and BlundersTriumphs and BlundersBusiness’ Investment Business’ Investment
eMaven eStrategy partners 14
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Triumphs and BlundersTriumphs and BlundersBusiness’ Internet ActivityBusiness’ Internet Activity
$182,000
$252,500
$307,100
$0
$80,000
$160,000
$240,000
$320,000
Maintain Develop Site DevelopeCommerce Site
Source: Association of National Advertisers 1999
1999 Averages Among Fortune 1000 Companies
eMaven eStrategy partners 15
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersHow is value generated?How is value generated?
Information Dialogue Transaction
Internet – collection of functionality that together communicates a value proposition to a user
customer
eMaven eStrategy partners 16
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersInformationInformation
Post vs. Enable
eMaven eStrategy partners 17
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Triumphs and BlundersTriumphs and BlundersInformationInformation
eMaven eStrategy partners 18
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Source: Iconocast 7/29/99, Customers.comhttp://www.aa.com
Triumphs and BlundersTriumphs and BlundersDialogueDialogue
•1.7M opted-in to weekly NetSAAver email•Estimates of click thru 5% to view online offer at site (estimated at 20% of site traffic)
eMaven eStrategy partners 19
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Triumphs and BlundersTriumphs and BlundersDialogueDialogue
Opt-in E-mail List Servs
eMaven eStrategy partners 20
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Triumphs and BlundersTriumphs and BlundersDialogueDialogue
Source: Informationweek 1/31/00; Busimess Wire 6/15/99
Autobytel• 600,000 cars sales projected in 2000• 6.5 MM registered users• 89% of registered users have not purchased
• “Garage” your vehicle – Autobytel provides e-mail service reminders, recall info & a lease watch to track mileage
eMaven eStrategy partners 21
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersTransaction Transaction
eMaven eStrategy partners 22
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Entry Strategies Entry Strategies Information-Dialogue-Transaction Information-Dialogue-Transaction
eMaven eStrategy partners 23
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Entry Strategies Entry Strategies Information-Dialogue-TransactionInformation-Dialogue-Transaction
eMaven eStrategy partners 24
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Entry Strategies Entry Strategies Information-Dialogue-TransactionInformation-Dialogue-Transaction
eMaven eStrategy partners 25
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Entry Strategies Entry Strategies Information-Dialogue-TransactionInformation-Dialogue-Transaction
eMaven eStrategy partners 26
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Entry Strategies Entry Strategies Information-Dialogue-TransactionInformation-Dialogue-Transaction
Source:
eMaven eStrategy partners 27
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Triumphs and BlundersTriumphs and BlundersHow is value generated?How is value generated?
Information Dialogue Transaction
“It is not a revolution in technology, machinery, techniques, or software. It is a revolution in CONCEPTS” Peter F.
Drucker ASAP 8/24/98
eMaven eStrategy partners 28
Reprinted with permission of eMaven, Inc.Copyright © 2000 eMaven, Inc. All rights reserved
Internet UseInternet UseGreat Triumphs and Blunders of F1000Great Triumphs and Blunders of F1000
Linda RossettiFounder, eMaven, [email protected]