ShipServ: Innovating
Enterprise Applications
Paul Ostergaard, Founder & CEO, ShipServ
First Tuesday Award 2009, Internet World, 28th April, 2009

Two things
B2B e-commerce is alive and kicking
– ShipServ
Impact is much wider than we all thought
– The future of enterprise applications
– The real Enterprise 3.0
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

ShipServ
• B2B e-marketplace
• Focus on maritime shipping industry
• Help buyers and sellers find, connect and trade
Paul Ostergaard, Founder and CEO
Shipping, Harvard MBA, BCG, Oracle
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

The Shipping Industry
90% of global trade
$380B annual turnover
80,000 ships
10,000 companies
$70B annual operating spend
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

Keeping ships operational is hard
• A typical shipping company
– spends $600,000 per ship per year on spare
parts, paint, provisions, consumables, etc
– from on average 700-800 suppliers around the world
• Hard to industrialise ship supply chains
– Most ships are „tramps‟, not „liners‟
– Fragmented, globally dispersed supplier base (50,000)
• Nonetheless, ready for e-commerce
– Ability to communicate globally in place
– English is de facto language
– Not dominated by middle-men
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

ShipServ Solutions
Buyers:
• 10% reduction in unit costs
• 30% reduction in transaction costs
SaaS Average
ShipServ ‘share of wallet’
Monetize: over 70%
•Subscriptions e-Marketplace
• Transactions
• Advertising
• Listings
• etc Suppliers:
• etc • Increased revenues/New Markets
• 30% reduction in transaction costs
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

More than 27,000 companies connected...
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

...trading more than $1B by end 2008
Annualized
End-2008: $1B
End-2007: $600M
End-2006: $400M
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

Company snapshot
• A “micro-multinational”
– HQ in London
– 120 employees in 9 countries
• Agile
– Infrastructure completely web-based
• salesforce.com, skype, five9, gotomeeting
– Manila operations grown to largest office in 6 months
– Two successful acquisitions
– CEO moved country three times……
...but what this is really about....
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

The Future of Enterprise Applications
• Web Services/SaaS
– Much wider reach - sell to everyone
– Better economics
• Networks Effects
– Deliver more value (much more)
• Improved Monetization
– Charge where there is value
everywhere
The real Enterprise 3.0
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

Enterprise Software 200BC to 1999
Sell to big companies... • High sales costs
• High costs to deploy
• High cost to service
...and (try to) repurpose for mid-market
...but focus on few geographies

1999 onwards – Web Services
Sell to any company... • Lower sales costs
• Very low costs to deploy
• Very low cost to service
a.k.a. The Long Tail
...regardless of size and location

Enterprise Web Service Examples
...but they are just scratching the surface
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

Networks dramatically increase value
Community Facebook
Flickr
Social Networks
Google
Connectivity
Collaboration
Tagging
Google Apps
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

New Ways of Monetizing
Monetize right where the perception of value is...
Free
Transaction Fees Subscriptions
Value $ Value
Advertising License
...and everywhere there is perception of value
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

New Ways of Monetizing
Exhibit 1:
$
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

Enterprise 3.0
Improved Monetization
Network Effects
Web Services
Copyright © 2009 All Rights Reserved ShipServ Ltd – www.shipserv.com

ShipServ: Innovating
Enterprise Applications
Paul Ostergaard, Founder & CEO, ShipServ
First Tuesday Award 2009, Internet World, 28th April, 2009