Future-State Ecommerce

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Growth, Integration, and Transformation Challenges

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Featured Presenters

Our knowledgeable speakers today are:

Mike Healey

Senior Contributing Editor

InformationWeek

President Yeoman

Technology Group

Jon Gettinger

Senior Vice President

Marketing, Aria

Systems

Goals of Today

• Share Research & Trending Results

– Macro Level Shifts

– End User Evolution

– Information and Channel Fragmentation

• Outline Critical Tasks for Enterprise

– Integration

– Data Analysis

– Org Structure and Leadership

Question of the Day

• Who Owns Your Ecommerce?

– Several Models tends to exist

• IT: Original champions

• Marketing: Messaging

focused

• Accounting: Administrative

• Separate Group: 100% silo‟d

(common in retail)

– Rarely

• Integrated into organization

as part of overall strategy that

includes

– Direct Sales Team

– Service Strategy

– Customer Support

Common Retail Ecommerce

Offline Group

Sales / Mkt

Purch

IT

Inv

Ecommerce Silo

Sales / Mkt

Purch

IT

Inv

E-commerce Revenue is $800 billion Today

29%

60%

4% 3% 3% 1%

B2C

B2B

Services

Subscr

Licenses

Other

Source: Combined forecast points for 2013 Ecommerce revenue (US Dept of Commerce, Forrester,

Internet Retailer, IDC, & Gartner) Yeoman team removed double counts and established service

percentages for the different service elements using industry standard benchmarks.

Customers Simply do Things Online Now

Source: Pew Internet Trends Data: 2000 - 2011

E-Commerce Doesn’t Exist as a Silo

• Every organizations online

influence is higher, most just

don‟t track it:

– Retail now full understands

„show rooming‟

– Direct correlations seen

between site traffic and

catalogs, phone sales, and

offline events

– 60% of B2B purchasers

research products before

calling sales (HBR)

10%

25%

15% 10%

40%

2012 US Enterprise Sales Audit

Ecommerce

Traced to Online

Dist/Marketplaces Online

Dist. Offline

Offline Order Direct

Source: US Publishers audit of 2012 transactions

linking data points for distribution and marketing to

end sales source

Major Challenges for Growth

• Highly fragmented user

behavior

– Only 30-40% of users go

„direct‟ to a site

– Huge reliance on search

engines

– Home page is typically less

than 35% of landing pages

• “Where” they buy is almost

uncontrollable

– Can‟t control perceived

distribution channels

– Lack of management

encourages anarchy

Rapid Mobile and Tablet Adoption

Source: Pew Internet Device Usage Data Studies 2006-2012

were used to create trend forecasts to 2015

-20%

0%

20%

40%

60%

80%

100%

US Device Ownership Trends 2006-2015

Mobile Phones

Desktops

Laptops

Tablets

Even the Desktop Has Changed

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2008 2009 2010 2011 2012 2013

Desktop/Laptop Resolution Change 08-13

Large Screen (1280x1024) Medium Screen (1024x768)

Small Screen (800x600)

Source: Actual visitor screen size trends from US Enterprise Ecommerce Site 2008-2013

No organization can succeed without a major ecommerce revision

Take an Expanded View of Ecommerce Platform

Ecommerce Hub

Corporate Site

Specialty Brands

Mobile Experience

Tablet Experience

Market Places

Social Commerce

“Search” Commerce

Supply Chain

Finance Offline

Marketing Sales Force

Customer Service

BI / Data Whse

Bro

ader

Pre

sence O

nlin

e

Real T

ime

Required Integration

E-Commerce Future State

Current State

• Single Primary Site

– Limited mobile/tablet feature

sets

• Limited Offering

– Gaps between online and

offline

• Fragmented Channel

Relations

– Don‟t ask, don‟t tell, don‟t

care, don‟t worry

• Social Marketing only

• Splintered Demand Gen

Future State

• Multiple Sites

– Unique experiences for

devices

• Complete Offering

– Additional services (re-order,

subscriptions, more variants)

• Expanded Marketplace

relationships

– Amazon / 3rd party markets

– Evolving Google role

• Social Commerce (?)

• Integrated Demand Gen

Puts massive pressure on data integration plans

You Need Big Data to Succeed

• Gathering and using big data is

the most critical element for

success online

• Reshapes the entire approach

to sales

• “Go Deep” into the behavior of

the customer

– Reshapes all ROI models

– Impacts offline sales and

compensation

– You can measure influence,

relationships, and channel

• Explodes the traditional models

Actual Source Traffic Revenue mix for 30 Day

window of $150m B2B E-Commerce Site

Example – Classic Market Basket versus Online Basket

• Classic Market Basket

– “Back end” analysis

– Find the items that are

typically sold together (diapers

and beer)

– Not really „big‟ data:

• 10,000 SKUs produces 50m 2

item combos & 100b 3 combos

• E-commerce Behavior

– Classic Market Basket, but

includes

– Web visits

• Items viewed

• Removed from cart

– How visitor found site

• First visit

• Second visit

• Repeat purchase

• Influences and events

– Beyond a single site

• Multiple direct sites

• Reseller/partner analytics

data

Customer

Transaction

Browsing Behavior

Visit Sources

External Channel

Sales

Marketing Touches

Offline Touches

Organizational Change Required

Admin

• Order taking

• Minimalist Approach

• Avoidance of data

• Required sales

• 0-15% of revenue

• Follows sales patterns

Revelation

• Net new sales

• New channels

• Competitive Awareness

• Data overload

• 15-25% of rev

• Some breakout opportunities

Operational

• Longer ROI model questioned

• Dramatic shift in marketing spend

• Begins of sales reorg

• Moving beyond spreadsheets and EDI

• 25-45% of rev

• New drivers of revenue, new comp drivers

Entrepreneurial

• Advantage Seeking

• Spec investment

• Integrated Sales

• Integrated product / service development

• Major driver of growth

• Live the data…

• 50+ % of rev

• How we exists

Critical Period to Focus on People, Process, and

Technology Required

29%

24%

26%

15%

6%

Who is the Primary Driver of Your Web Strategy?

Marketing

IT Team

Collaborative Effort

ExecutiveTeam

Other

Source: InformationWeek 2011 Web Strategy Survey

Needs to be a Part of Core Business Strategy

Educational Resources

Customer Set 1

Customer Set 2

Customer Set 4

Customer Set 3

Multi-use Product / Service Portfolio

Multi-channel Marketing

Demand Gen

Product Lines

Delivery

Pred

ictive

Insigh

t

Sales (Inside/Outside)

Web (multiple)

Bids & RFPs

Catalogs

Create an Integrated Sales Model

Action Steps for the Enterprise

Organizational / CEO

1. Map your entire sales process

by channel, by product,

include services

2. Deep dive into the online only

competitive environment

3. Start the discussion of „who

owns‟ E-Commerce

– Likely different roles for IT and

Marketing

– Force Bigger roles for Sales

and Support

IT / CIO

1. Take a critical eye to your

existing ecommerce platform,

assess with the best of breed

2. Review gaps in what‟s sold

online

– Custom items, subscriptions,

and services likely lagging

(fix it)

3. Build out true data map of all

data points in the sales

process

Need Something to Motivate You?

• Ecommerce will have less new growth,

more transitioned revenue

– Sales/Catalog/Retail/Traditional

Distribution is simply not as effective

versus 5 years ago

– Sales will continue to decline as folks

move online

– New „growth‟ is now more about new

services and new markets

• The “Online” guys are moving backwards.

– The “New” Enterprises created since

1998 aren‟t new anymore (Ebay,

Alibaba, Amazon, Esurance, etc,)

– They‟re „integrating backwards‟ into

the online world looking for growth

– They‟re coming for you….. 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Internet adoption, 1995-2012

% of American adults who use the internet, over time

Percentage of U.S. Adults Online

Delivering Subscription Commerce

Jon Gettinger, Aria Systems

A High Stakes Business

Market Expansion

New Business Models

New Product Introduction

Monetize Customer

Relationships

Competitive Advantage

A High Stakes Business

The Billing Cycle

Market Expansion

New Business Models

New Product Introduction

Monetize Customer

Relationships

Competitive Advantage

Aria Takes a Strategic View of your Business

Product

Contract Channel

Entitlement

Monetize

• Terms

• Penalties

• Amortization

• Renewals

• Dunning

• Freemium

• Limited Time

• Pay as you go

• Editions

• Coupon

• One time

• Recurring

• Usage

• Hybrid

• Prepay/Postpay

• Rating

• Direct

• Tiered

• Line of Business

MARKETING SALES

CUSTOMER

SERVICE

EXECUTIVE

Finance

Rock Solid Cloud

25

•Event Driven Integration

•Business Rules Engine

•LiveRelease

•Audit Grade Logging

• Thresholds & Alerts

•Connectors - ERP, CRM, FinOps

•Deployment Options

•PCI Level 1 Security

•99.999% Reliability

Cloud Services

& Telecom

Social Media

& Collaboration

Consumer

& Retail Technology

Media &

Entertainment

Recurring Revenue Success with Aria

Thank You

Questions?

Submit questions to the presenters via the on-screen text box

Jon Gettinger

Senior Vice President

Marketing, Aria

Systems

Mike Healey

Senior Contributing Editor

InformationWeek

President Yeoman

Technology Group

Thank you for attending

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