Transcript of "Digital "Elastic" Commerce - Right Here, Right Now - Jump Conference 2011"
Digital “Elastic” Commerce Right Here, Right NowNew Business Models for the instant access revolution Oct 12th 2011 Sal Visca Chief Technology Officer Elastic Path Software JUMP Conference London, UK Oct 12, 2011
Elastic Path | Technology and Expertise for the Digital Content Ecosystem Elastic Path Software provides software and services to help the world’s most innovative digital companies transact and interact online Key Customer Verticals Software Media & Publishing Telecommunications Online Services • Consumer • Magazines • Handset Manufacturers • Subscription Content • Enterprise • Online Content • Operators / ISP’s • Digital Marketplace • Security • Entertainment • Cable Companies • Digital RetailersJUMP Conference London, UK Oct 12th 2011
Elastic Commerce | Frictionless, Social, Everywhere Elastic Path’s vision is “Elastic Commerce” – ecommerce that turns new ideas into profitable systems, and is adaptable to diverse, dynamic needs Frictionless Social Everywhere • Transactions are • The primary source of • Products come from accomplished in the consumer information about anywhere context of life products is other consumers • Sellers come from anywhere • Buyers are presented with • Consumers drive how, • Transactions can occur more relevant offers when, and where they buy anywhereJUMP Conference London, UK Oct 12th 2011
Bold Statement Traditional approaches to ecommerce are inadequate, irrelevant unsuitable for companies selling digital contentJUMP Conference London, UK Oct 12th 2011
This isn’t your father’s shopping cartJUMP Conference London, UK Oct 12th 2011
New rules for selling digital content Its different than physical product Its all about the ongoing relationship Entitlements vs SKUs People want to buy in the context of life New business models are needed APIs are no longer an optionJUMP Conference London, UK Oct 12th 2011
New York Times online? Paywall ? http://www.poynter.org/latest-news/top-stories/142936/why-would-anyone-pay-to-read-the-new-york-times-online/ by Jeff Sonderman Published Aug. 16, 2011 “It turns out people will pay for things even when payment is not required. Motivations such as convenience, duty or appreciation are more compelling than coercion” “Digital news is different. It is an intangible good. My access to it does not inhibit your access to it. It has a cost to produce, as a whole, but the cost of extending it to one more person is insignificant. There is no natural scarcity, so we don’t have to impose an upfront price.”JUMP Conference London, UK Oct 12th 2011
Skus vs entitlements SKU (stock keeping unit) is completely unsuitable Product variations could easily produce an unmanageable number of unique SKUs Manage entitlements - objects with rich and extensible sets of attributes Need to rethink catalog, merchandising, discovery, selection, etc Sale not over when first transaction completeJUMP Conference London, UK Oct 12th 2011
New Business Models Freemium Subscriptions “All you can eat” plans – Netflix, Spotify, 24symbols Metered Content Trials App store – content from anywhereJUMP Conference London, UK Oct 12th 2011
New Business Models Resistance to £40 - £50 price point for downloadable games In-game purchases Free games boost gaming industry revenueJUMP Conference London, UK Oct 12th 2011
APIs – No longer an option Internet of things – explosion of devices Purchase in context Functionality and service must be exposed in a way to enable efficient and innovative creation of user experiences You need an ecosystem – always a mashup Integration is keyJUMP Conference London, UK Oct 12th 2011
General Online Store Shoppers Store Operator EcommerceJUMP Conference London, UK Oct 12th 2011
Marketplace Single-Vendor Shoppers Store Operator e-commerce Marketplace Multi-Vendor Store Operator … App Developers, Publishers (books, videos, music, games)JUMP Conference London, UK Oct 12th 2011
Marketplace : AppStore, SuperStore …. Online Vendor Channel Portal Market Place Approvals • Create marketplaces for 3rd party vendors • Sell add-on apps or services for your products • Create new online revenue streamsJUMP Conference London, UK Oct 12th 2011
Summary Digital Goods require a Digital Commerce platform Selling online now requires Digital Relationship Management Digital single-vendor e-commerce stores can be expanded into Marketplaces / AppStores Marketplaces provide a venue for digital publishers (vendors) of all sizes to market and sell their digital waresJUMP Conference London, UK Oct 12th 2011
QuestionsFor more on-demand digital commerce firstname.lastname@example.org (toll-free in North America)www.elasticpath.com
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.