The Future of Ecommerce - Web 2.0


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Elastic Path's presentation at Web 2.0.

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The Future of Ecommerce - Web 2.0

  1. 1. Web 2.0 Expo New York The Future of Ecommerce: Frictionless, Social, Everywhere October 10th-13th, 2011Presented by Elastic Path Software Chief Strategy Officer Cliff Conneighton C o n f i d e n t i a
  2. 2. Introducing Elastic Path Software Digital Commerce for Innovators • We help the world’s biggest brands sell digital goods and services • We provide a flexible digital commerce platform and expertise in commerce strategy and implementation • #1 ecommerce blog • For more on-demand digital commerce resources Elastic Path Research and Consulting
  3. 3. Elastic Path Research &
  4. 4. Digital is different. It must be: Frictionless Social Everywhere Elastic Path Research &
  5. 5. Frictionless • Transactions in the context of life • Only relevant offers Elastic Path Research &
  6. 6. Social • Control of the brand has shifted to the crowd • Anyone can be a merchant, author, reviewer, developer, reporter, editor, publisher Elastic Path Research &
  7. 7. Social • Control of the brand has shifted to the crowd • Anyone can be a merchant, author, reviewer, developer, reporter, editor, publisher Elastic Path Research &
  8. 8. Everywhere• Sellers come from anywhere• Products come from anywhere• Information about products comes from anywhere• Buyers come from anywhere• Transactions can occur anywhere• Technology comes from anywhere Elastic Path Research &
  9. 9. elas·tic i-las-tik• capable of ready change or easy expansion or contraction: not rigid or constricted• receptive to new ideas: adaptableElastic Commerce Elastic Path Research &
  10. 10. For many, this is an existential challengeFebruary sales of e-books tripled y/y CAGR forecast = 72%Traditional down 34% $100 Millions $80 $60 $40 $20 $0 2011 2010 Elastic Path Research &
  11. 11. Gamers shifting from boxed to digital downloads• In 2011 v 2010 – 73% to spend the same or more on downloads – 63% to spend the same or more on boxed games – 76% of PC & Mac gamers with tablets and smartphones plan to spend same or more on mobile games• Electronic Arts Q4 2011 earnings call: will become “fully integrated digital entertainment company”• 73% find title bundles (all current & future downloadable content) appealing• 70% would view embedded ads to play for free• 51% would pay monthly fee for unlimited games• 77% would buy more with “try before you buy”• 6 million unique users access Steam daily Elastic Path Research &
  12. 12. Google Catalogs kills ecommerce as we know it Elastic Path Research &
  13. 13. New sales and marketing models for books• 71% like all-you-can-read subscriptions idea• 70% will accept embedded ads to reduce price• 75% will refer on social sites for discounts, 68% for free• 79% interested in group buying discounts• Recommend / review on social media now: – 66% of 18-24 – 47% of 35-54 – 19% of 55+• > 50% young adults would “rent” rather than buy• 36% would buy more if could share/loan more Elastic Path Research &
  14. 14. A digital product is different. It can be:• Time-based• Copied• Used simultaneously• Dis-aggregated• Bundled• Consumed in bites• Subscribed Elastic Path Research &
  15. 15. Traditional Retail Hard-goods Relationship Order wait Ship Elastic Path Research &
  16. 16. New Era of Digital Relationship play contribute socialize sample download experience view read watch renew try query explore now extend continue offer upgrade learn Requires Digital Relationship Management for a perpetual interactive relationship Elastic Path Research &
  17. 17. What good is a “Stock Keeping Unit”when you are delivering a copy of a file? really selling “Entitlements” Elastic Path Research &
  18. 18. Long Tail v. Paradox of ChoiceOffer management Product Discovery Elastic Path Research &
  19. 19. Commerce Software Adobe Omniture Touch Clarity IBM Coremetrics BazaarVoice PowerReviews Intelligent Offer ATG AdobeVendor Ecosystem Adobe Omniture Site Catalyst Test & Target Recommendation s Communispac Scene 7 Adobe Allurent Flash, Flex Omniture IBM Coremetrics Certona e ChannelAdvisor ATG SiteSearch Webtrends Interwoven Choicestream Leverage RichFX eStara (fka Mercado) Liquid Optimost Aggregate Endeca Lithium Pixels Click2Talk IBM Progress Google Knowledge EasyAsk ONEsite Talisma LivePerson GSI iPhrase Rich Adobe * SaaS defined by Commerce Microsoft Relevance KickApps Dreamweaver Oracle VoiceStar subscription pricing, not just hosting Fast Interwoven Baynote Oracle Venda Oracle Microsoft eGain Experian Vignette Pluck MarketLive SES FrontPage Talisma CheetahMail Oracle Oracle Kana Autonomy RTD Jive RightNow Exact Target Demandwar Attivio Oracle e Salesforce Responsys Oracle Redhat Infor ATG Commerce JBoss Inquira YesMail IBM IBM epiphany Sun Silverpop Websphere Commerce Microsoft Websphere Java System Oracle Eloqua Payment / Tax / Fraud Screening SAP PayPal Sterling Comergent Commerce Elastic Netweaver Microsoft .NET Litle Verisign Escalate Retail SAP Oracle Path Vertex customer-facing (Blue Martini) eCommerce WebLogic Application Server Chase Google Paymentech Cybersource Checkout enterprise-facing Escalate Retail Database ADP Taxware SAP Oracle BillMeLater Microsoft Oracle Oracle SQL Server Siebel Oracle Order Motion IBM PeopleSoft Sterling DB2 JD Edwards NCR Yantra Oracle Microsoft SAP Siebel Escalate Manhattan Retail Associates Financials SAP Oracle ClickForensics IBM RightNow iCrossing SAS Cognos Keynote Oracle Oracle IBM Unica Retail Aprimo Red Hat iPerceptions Oracle Alfresco Forsee Results Oracle representative Gomez subset of vendors Oracle Elastic Path Research &
  20. 20. The Integration Challenge Elastic Path Research &
  21. 21. Traditional API approach inappropriate forElastic CommerceSOAP is sooooooo 90’sRequirements for a new model of commerce API:• Built for Media developers, not Java developers - Navigable REST - Scope focused on commerce: terse = fast• Optimized for the new universe of devices - Oriented to javascript, not XML - Perfect for iOS, Flash, jQuery• Enabling decoupled, agile workflow - Not assuming a bricks & mortar shopping model• Security model in the user’s context Elastic Path Research &
  22. 22. You don’t know what you’re doing. And neither do your IT experts. Elastic Path Research &
  23. 23. Higher level of departure allows innovation, differentiation Tomorrow elastic commerce platform 2010 retail commerce platform 2000 app server 1990 ERP 1980 database 1970 operating system 1960 Elastic Path Research &
  24. 24. Future elastic commerce system requirements1. Built on the foundation of entitlements2. Enable great customer experience on variety of devices and internet of things - To enable selling in the context of life.3. Make buying experience more relevant and frictionless4. Optimize integration with vast ecosystem5. Architected for flexibility & extensibility Elastic Path Research and Consulting
  25. 25. QuestionsFor more on-demand digital commerce (toll-free in North America) C o n f i d e n t i a