ResearchPublication Date: 3 August 2010                                                              ID Number: G00205840H...
TABLE OF CONTENTSAnalysis ...................................................................................................
Multichannel Campaign Management ................................................................ 49                    Mu...
Table 3. Maturity Levels ....................................................................................................
ANALYSISWhat You Need to KnowThe weak economy and five key trends are driving new investment and upgrades in e-commercecap...
understanding risk investing in technologies that may not provide returns, may hurt customerrelationships and may negative...
Using the Hype CycleUse this Hype Cycle to investigate, evaluate and prioritize individual technologies that will enableyo...
MDM of customer data           MDM of product data           Online video           Rich information visualization        ...
E-mail marketing           Event-triggered marketing           Loyalty marketing           Multichannel campaign managemen...
Mobile consumer application platforms           Mobile coupons           Mobile fraud detection           Mobile search   ...
Social           Social commerce           Social shopping sitesWeb Customer Experience           Web content product reco...
Figure 1. Hype Cycle for E-Commerce, 2010Source: Gartner (August 2010)Publication Date: 3 August 2010/ID Number: G00205840...
The Priority MatrixVendors and companies are enabling e-commerce with a variety of technologies, in differentforms and at ...
Moderate benefit ratings: These technologies generally enable added capabilities to early-generation e-commerce deployment...
Figure 2. Priority Matrix for E-Commerce, 2010Source: Gartner (August 2010)Off the Hype CycleThe following technologies we...
Electronic bill presentment and payment for telecom providers           E-marketing           Insurance self-service porta...
and compensates for features in the land-based environment that do not translate into the mobileone. Fraud prevention tech...
Business Impact: Mobile fraud detection watches for suspect user and mobile device activityspecifically in the mobile comp...
Sample Vendors: Blippy; Kaboodle; MyItThings.com; StyleFeeder; Swipely; ThisNext; WistsContext Delivery ArchitectureAnalys...
scalable to support context-aware computing. SOA and EDA have not yet reached the Plateau ofProductivity. We expect CoDA t...
Definition: Persona management is the nascent class of tools to help people keep track of whatthey are saying and posting ...
simply because users cannot cope with any more places to put "stuff," shutting off potentiallyrewarding avenues of partici...
Benefit Rating: HighMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: Adaptive Engineer...
Transactional Ad UnitsAnalysis By: Andrew FrankDefinition: Transactional ad units are advertiser-supplied active display e...
Online merchants should evaluate transactional ad units as a method to extend their storefrontsacross the Web. Online merc...
of incentives from life insurers. Gartner expects more life insurers to add e-services to theircustomer portals because of...
In contrast with an online ad network or ad exchange, data exchanges do not sell ads orimpressions. The separation of data...
and more conversions) in trials with partners. Before participating as buyers, they should have inplace methods for tracki...
the use of user-generated content on ones website are the foundation of social commerce, and itis growing due to the consu...
Context-enriched services will also require sophisticated reasoning to determine how softwareactions should be changed to ...
Market Penetration: 5% to 20% of target audienceMaturity: EmbryonicSample Vendors: Appear Networks; Apple; Google; Pontis;...
Benefit Rating: ModerateMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: AgoraCart; Cu...
Web Content Product Recommendation EngineAnalysis By: Bill GassmanDefinition: A Web content product recommendation engine ...
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
Hype cycle for e commerce, 2010
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Hype cycle for e commerce, 2010

  1. 1. ResearchPublication Date: 3 August 2010 ID Number: G00205840Hype Cycle for E-Commerce, 2010Gene AlvarezE-commerce continues to rivet the attention of enterprises struggling to return to growth.This Hype Cycle will help enterprises evaluate the suitability of an exploding number ofe-commerce technological capabilities, long-established and emerging, and tounderstand their business value.© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any formwithout prior written permission is forbidden. The information contained herein has been obtained from sources believed tobe reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. AlthoughGartners research may discuss legal issues related to the information technology business, Gartner does not provide legaladvice or services and its research should not be construed or used as such. Gartner shall have no liability for errors,omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed hereinare subject to change without notice.
  2. 2. TABLE OF CONTENTSAnalysis ....................................................................................................................................... 5 What You Need to Know .................................................................................................. 5 Customer Experience .......................................................................................... 5 Social .................................................................................................................. 5 Globalization ....................................................................................................... 5 Mobile ................................................................................................................. 5 Software as a Service.......................................................................................... 5 The Hype Cycle ............................................................................................................... 6 Using the Hype Cycle .......................................................................................... 7 E-Commerce Foundational Components ............................................................. 7 Web Customer Experience .................................................................................. 8 Marketing ............................................................................................................ 8 Sales ................................................................................................................... 9 Service ................................................................................................................ 9 Mobile ................................................................................................................. 9 Social CRM ....................................................................................................... 10 New to the Hype Cycle ...................................................................................... 10 Mobile................................................................................................... 10 Social ................................................................................................... 11 Web Customer Experience ................................................................... 11 The Priority Matrix .......................................................................................................... 13 Off the Hype Cycle ......................................................................................................... 15 On the Rise ................................................................................................................... 16 Mobile Fraud Detection ..................................................................................... 16 Social-Shopping Sites ....................................................................................... 18 Context Delivery Architecture ............................................................................ 19 Persona Management ....................................................................................... 20 Rich Information Visualization............................................................................ 22 Customer-Centric Web Strategies ..................................................................... 23 Transactional Ad Units ...................................................................................... 24 E-Services......................................................................................................... 25 Online Advertising Data Exchanges................................................................... 26 Social Commerce .............................................................................................. 28 Context-Enriched Services ................................................................................ 29 Open-Source E-Commerce Software................................................................. 31 Campaign Management SaaS ........................................................................... 32 Web Content Product Recommendation Engine ................................................ 33 Customer Interaction Hub .................................................................................. 33 E-Invoicing ........................................................................................................ 34 Mobile Web Applications ................................................................................... 38 Social CRM for Sales ........................................................................................ 40 Social CRM: Community Marketing ................................................................... 41 At the Peak .................................................................................................................... 42 Mobile Coupons ................................................................................................ 42 Campaign Optimization ..................................................................................... 43 Mobile Consumer Application Platforms............................................................. 44 Loyalty Marketing .............................................................................................. 45 Web 3.0 ............................................................................................................ 46 Cloud/Web Platforms......................................................................................... 47 Enterprise Feedback Management .................................................................... 49Publication Date: 3 August 2010/ID Number: G00205840 Page 2 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  3. 3. Multichannel Campaign Management ................................................................ 49 Multicommerce MDM......................................................................................... 50 Consumer Web Mashups .................................................................................. 52 Predictive Campaign Analytics .......................................................................... 53 Sliding Into the Trough ................................................................................................... 54 E-Commerce on Demand .................................................................................. 54 Mobile Social Networks ..................................................................................... 55 Event-Triggered Marketing ................................................................................ 56 Content Analytics .............................................................................................. 57 Fraud Detection................................................................................................. 59 MDM of Product Data ........................................................................................ 61 MDM of Customer Data ..................................................................................... 63 Microblogging.................................................................................................... 65 Mobile Advertising ............................................................................................. 67 Customer Profitability Management ................................................................... 69 Distributed Order Management.......................................................................... 70 Virtual Environments for Consumer Sales .......................................................... 71 Online Video ..................................................................................................... 72 Virtual Assistants............................................................................................... 74 Consumer-Generated Media ............................................................................. 75 Campaign Segmentation ................................................................................... 76 E-Mail Marketing ............................................................................................... 76 Preference-Driven Personalization .................................................................... 77 Climbing the Slope......................................................................................................... 78 Consumer Digital Rights Management ............................................................... 78 Content Delivery Networks ................................................................................ 80 E-Commerce Web 2.0 Sales Tools .................................................................... 82 Mobile Search ................................................................................................... 84 Social Search .................................................................................................... 85 Web-to-Print Applications .................................................................................. 86 Integration as a Service ..................................................................................... 87 Knowledge Management for Customer Self-Service .......................................... 91 Wikis ................................................................................................................. 91 Web Analytics ................................................................................................... 93 Web and Application Hosting ............................................................................. 95 Sales Order Management.................................................................................. 96 Entering the Plateau ...................................................................................................... 97 Enterprise Portals .............................................................................................. 97 Podcasting ........................................................................................................ 98 Sales Configuration ........................................................................................... 99 Blogs............................................................................................................... 100 Consumer Content Creation Tools ................................................................... 101 Appendixes .................................................................................................................. 103 Hype Cycle Phases, Benefit Ratings and Maturity Levels ................................ 105Recommended Reading ........................................................................................................... 106LIST OF TABLESTable 1. Hype Cycle Phases..................................................................................................... 105Table 2. Benefit Ratings ........................................................................................................... 105Publication Date: 3 August 2010/ID Number: G00205840 Page 3 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  4. 4. Table 3. Maturity Levels ........................................................................................................... 106LIST OF FIGURESFigure 1. Hype Cycle for E-Commerce, 2010 .............................................................................. 12Figure 2. Priority Matrix for E-Commerce, 2010 .......................................................................... 15Figure 3. Hype Cycle for E-Commerce, 2009 ............................................................................ 103Publication Date: 3 August 2010/ID Number: G00205840 Page 4 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  5. 5. ANALYSISWhat You Need to KnowThe weak economy and five key trends are driving new investment and upgrades in e-commercecapabilities. Client interest in e-commerce has been increasing since the last release of thisreport; however, prudence and a focus on improving sales and customer experience is guiding allinvestment activities.Customer ExperienceOrganizations want to improve their websites with rich online customer experiences. Driven byconsumerization, organizations are improving their site user interfaces with rich Internetapplication (RIA) capabilities for all types of commerce — business to business (B2B) andbusiness to consumer (B2C) — as websites are no longer compared with direct competitors, butare compared with leading consumer website customer experiences.SocialOrganizations are also adding social capabilities. Here, organizations are seeking to takeadvantage of many forms of social CRM capabilities. These range from building a following of"friends" in public communities, such as Facebook and Twitter, to enabling user-generatedcontent to contribute to the organizations website and other activities that involve leveraging the"wisdom of the crowd."GlobalizationOrganizations are going global for new customers; therefore, there is significant interest inenabling e-commerce in new countries and regions. This is driving requirements for localizationcapabilities, such as translation, localized currencies and payment processes, localimplementation services at local rates, and other key international capabilities.MobileOrganizations want to implement mobile e-commerce capabilities to take advantage of thegrowing populations, using Internet-enabled smartphones and tablets for Web browsing andcontext-aware applications. Advancements in mobile technologies and devices and demand fromconsumers for mobile applications and Web browser access are also gaining more hype asdevices, such as the Apple iPhone 4, iPad and other mobile devices, enable consumers andbusiness partners to access an organizations website for product/service investigation and topossibly make a purchase directly through the device.Software as a ServiceThe increasing number of providers and developments in e-commerce software as a service(SaaS), which is also referred to as e-commerce on demand, have opened e-commercecapabilities to a much broader audience of organizations than ever before, and the hypesurrounding SaaS offerings is increasingly due to current economic and market forces.Organizations that want to develop their e-commerce capabilities into next-generation customerexperiences and to increase sales and customer retention should use this Hype Cycle tounderstand the hype, technology maturity and business impacts of leading e-commercetechnologies. Because of the amount of technology available, organizations without thisPublication Date: 3 August 2010/ID Number: G00205840 Page 5 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  6. 6. understanding risk investing in technologies that may not provide returns, may hurt customerrelationships and may negatively affect their already-complicated e-commerce capabilities.The Hype CycleE-commerce trends and technologies are transforming the way enterprises interact with markets,including prospects, customers and partners. Research from the "Magic Quadrant for E-Commerce" uncovered how interest in e-commerce has expanded to industries outside traditionalretail. The new industries investing in e-commerce capabilities are discrete manufacturing,distribution, telecommunication and publishing (see "Findings: CEOs Are Placing New Bets on E-Commerce as Part of Their Return-to-Growth Strategy").B2C organizations still lead in innovation, however, tapping into communities of consumers viasocial-network software (such as Facebook, MySpace and Twitter) as a way to engage withcustomers and improve the overall online shopping experience. Moreover, B2C organizations arecapitalizing on the increasing number of smartphones and Web-capable phones. Therefore,many are making sure that they have a mobile website that is easy to use via a mobile Webbrowser, and many are creating mobile applications for devices such as iPhone4 and iPad (see"How Mobile E-Commerce Should be Using Context, but Isnt" and "Top Eight Ways Context WillMake Your M-Commerce Applications Stickier").Consumerization continues to put pressure on organizations to offer rich customer experiencesas customers of all types continue to compare site capabilities with other popular sites, such asGoogle, YouTube, Yahoo, Amazon and eBay, regardless of the industry. Often, businesspartners will expect the capabilities of consumer sites for their purchasing requirements to becoupled with more-advanced B2B sales capabilities, such as sales configuration, customer-specific catalogs and links to electronic data interchange (EDI) capabilities. As organizations lookto capitalize on these trends, they are also challenging IT organizations and business owners tolower operating costs and provide reliable, highly scalable, available and stable 24/7environments.The 2010 Hype Cycle for E-Commerce illustrates the varying hype and maturity levels of e-commerce technologies, as well as their business dynamics and complexities. The sheer numberof technologies being hyped in the e-commerce market demonstrates the complexity of anorganizations e-commerce technology portfolio and strategy.E-commerce is often associated or confused with other synonyms, such as e-business, e-retailingor individual technologies (such as EDI). Therefore, we have provided a definition to use with thisHype Cycle: "E-commerce is a compilation of business models, processes and technologies thatenable online sales, service and marketing for B2B and B2C commerce. It facilitates transactionsover the Web, and supports the creation and continuing development of online relationships."E-commerce technologies are critical to key initiatives, such as CRM, partner relationshipmanagement, process improvements, sales growth, reduction of sales costs, brand building, anddelivering value to consumers and business partners. This is accomplished by enabling anenjoyable customer experience that exceeds sales and service expectations.Organizations are unable to purchase a single e-commerce solution that is a complete match withall their unique business requirements as they exist, or that is agile enough to support changingrequirements. Most organizations e-commerce initiatives can have as many as 15 to 20 primaryor core integration points to complete a business process, such as campaign to cash, and asmany as five to 10 vendors to provide the complete operational site. Additionally, some B2Borganizations find themselves managing multiple types of e-commerce beyond partner-direct(B2B), because of the varying IT capabilities of their partner networks.Publication Date: 3 August 2010/ID Number: G00205840 Page 6 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  7. 7. Using the Hype CycleUse this Hype Cycle to investigate, evaluate and prioritize individual technologies that will enableyou to create a unique Internet experience and address current and future e-commerce trends.The Hype Cycle for E-Commerce addresses 65 of the most-relevant and topical e-commercetechnologies, and groups them into seven key areas: E-commerce foundational components Customer Web experience Marketing Sales Service Mobile Social CRMThese groupings will enable you to align these technologies with your individual online strategies,tactical initiatives, and B2B or B2C objectives.E-Commerce Foundational ComponentsThese components enable B2B and B2C organizations to process orders; manage many types ofcontent and product information; locate products, exchange data, services and suppliers, as wellas analytics; and manage overall performance. Technologies in the group enable organization toconduct any type of commerce and are necessary to core functionality and business processessupported by e-commerce website. Technologies in this group include: Cloud/Web platforms Consumer digital rights management (DRM) Content analytics Content delivery networks Context delivery architecture Context-enriched services Customer interaction hub (CIH) Customer profitability management Distributed order management E-invoicing Fraud detection Enterprise portals Integration as a service (IaaS) Multicommerce master data management (MDM)*Publication Date: 3 August 2010/ID Number: G00205840 Page 7 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  8. 8. MDM of customer data MDM of product data Online video Rich information visualization Web analytics Web and application hosting Web-to-print applications *Technology that became obsolete before it reached the Plateau of Productivity (see Hype Cycle figure)Web Customer ExperienceThese technologies enable organizations to provide an enjoyable Web experience at any pointduring the customer interaction life cycle. This customer life cycle will include marketing, sales orservice activities delivered over the Web. The focus of these technologies is providing anenjoyable online experience that is intuitive and easy-to-use for all types of customers.Technologies in this group include: Consumer content creation tools Consumer Web mashups Consumer-generated media Customer-centric Web strategies Persona management Podcasting Preference-driven personalization Web 3.0* Web content product recommendation engines *Technology that became obsolete before it reached the Plateau of Productivity (see Hype Cycle figure)MarketingThese technologies enable organizations to create customer demand and leads via the Webchannel. The technologies in this section enable organizations to use online marketingtechniques to acquire new customers, expand the number of product being offered to a customerand to win customers that may have left the organization. Technologies in this area include: Campaign management SaaS Campaign optimization Campaign segmentationPublication Date: 3 August 2010/ID Number: G00205840 Page 8 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  9. 9. E-mail marketing Event-triggered marketing Loyalty marketing Multichannel campaign management Online advertising data exchanges Predictive campaign analytics Transactional advertising unitsSalesThese technologies enable organizations to select products and services and to processtransactions over the Web channel. The technologies in this section enable organizations toimprove their sales by offering full Web stores as a service, improvements to the user interface toincrease conversion, to configure products and services without the aid of a human and othersales capabilities. Technologies in this area include: E-commerce on demand E-commerce Web 2.0 sales tools Open-source e-commerce software Sales configuration Sales order management Virtual environments for consumer salesServiceThese technologies enable organizations to service customers before, during or after a sale, andto resolve customer issues. These technologies also offer the ability to collect feedback fromcustomers and enable online self-service. Technologies in this area include: Enterprise feedback management (EFM) E-service Knowledge management for customer self-service Virtual assistantsMobileThese technologies enable organizations to provide mobile-based e-commerce (m-commerce)and can complement all phases of the customer life cycle. Particularly in the m-commerce space,many enterprises are beginning to develop context-enriched applications for the purpose ofincreasing customer loyalty and improving sales. Since it is the early days of context-enrichedcommerce, many different approaches are being taken, such as leveraging customer location andsending Short Message Service (SMS) messages. These technologies include: Mobile advertisingPublication Date: 3 August 2010/ID Number: G00205840 Page 9 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  10. 10. Mobile consumer application platforms Mobile coupons Mobile fraud detection Mobile search Mobile social networks Mobile Web applicationsSocial CRMThese technologies enable organizations to use social techniques within their Web stores or totake part in larger external (both public or privately created) communities of customers. SocialCRM applications encourage many-to-many participation among internal users, as well ascustomers, partners, affiliates, fans, constituents, donors, members and other external parties, tosupport sales, customer service and marketing processes. Social CRM works in each of thesedomains, for example, to provide a social enterprise feedback mechanism in the service domain,as well as social monitoring or product development in the marketing domain: Blogs Microblogging Social commerce Social CRM: community marketing Social CRM: for sales Social search Social shopping WikisNew to the Hype CycleThe 2010 E-Commerce Hype Cycle covers 65 technologies. To respond to the market trendslisted above and to assist organizations looking to capitalize on these trends, the followingtechnologies have been added to the 2010 E-Commerce Hype Cycle:Mobile Mobile advertising Mobile coupons Mobile fraud detection Mobile search Mobile social networks Mobile Web applicationsPublication Date: 3 August 2010/ID Number: G00205840 Page 10 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  11. 11. Social Social commerce Social shopping sitesWeb Customer Experience Web content product recommendationPublication Date: 3 August 2010/ID Number: G00205840 Page 11 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  12. 12. Figure 1. Hype Cycle for E-Commerce, 2010Source: Gartner (August 2010)Publication Date: 3 August 2010/ID Number: G00205840 Page 12 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  13. 13. The Priority MatrixVendors and companies are enabling e-commerce with a variety of technologies, in differentforms and at different rates of adoption. The Priority Matrix presents the potential benefitsattainable relative to the progression along the Hype Cycle. This is intended as a generalguideline, because the benefits and maturity of any technology will partly depend on industryconditions, unique business circumstances and the organizations ability to use the technologyeffectively.Transformational benefit, shorter time frame (less than two years): These technologies areaimed at addressing current or near-term transformational requirements of e-commerce from itscurrent state. Technologies in this category can present a return on investment (ROI) with a shorttime frame or offer a compelling competitive advantage that can transform the way anorganization does business. Only enterprise portals fall into this category, because they enableimprovements to B2B e-commerce personalization, presentation and system integration.Transformational benefit, moderate time frame (two to five years): These technologies areaimed at fundamentally changing the way organizations interact with customers online (e.g., viamobile consumer application platforms). Additionally, cloud/Web platforms can transform howorganizations procure and implement new e-commerce capabilities. However, these technologiesrequire some time to learn and understand where the opportunities are and how to use themproperly.Transformational benefit, longer time frame (more than five years): These technologies canenable a transformational change to an organizations e-commerce initiatives. However, due totheir complexity and harder-to-quantify benefits to obtain funding, these technologies are morestrategic in value than tactical. There are five in this category: content analytics, context deliveryarchitecture, context-enriched services, social CRM: community marketing, and virtualenvironments for consumer sales.High benefit, shorter time frame (less than two years): These technologies are moresubstantial in an e-commerce strategy, but in the context of common business practices, theyaddress current or near-term issues in the organization. They may apply to improvements in astand-alone function or a new area, such as campaign tracking and measurement, consumercontent creation tools, sales configuration, social commerce, and Web and application hosting.High benefit, moderate time frame (two to five years): These technologies are more tacticaland require planning and incremental investments. Technologies in this group enableimprovements in many areas of e-commerce. For example, improvements to online sales mayinvolve the use of e-commerce Web 2.0 sales tools; for service improvements, technologies suchas e-service and EFM may be used; for marketing improvements, event-triggered marketing andmultichannel campaign management can provide improvements; and for foundational e-commerce capability improvements, technologies such as content delivery networks may beused. (Refer to the Priority Matrix for the complete list of technologies in this category.) Thelargest collection of technologies for the Hype Cycle is in this area.High benefit, longer time frame (more than five years): These technologies are strategic andrequire long-term planning and incremental investments. There are seven technologies in thiscategory and, similar to moderate time frame technology improvements, they can be delivered inseveral areas: marketing (campaign optimization, e-commerce foundational capabilities); CIH,customer profitability management, distributed order management and rich informationvisualization; service (virtual assistants and mobile); and mobile fraud detection.Publication Date: 3 August 2010/ID Number: G00205840 Page 13 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  14. 14. Moderate benefit ratings: These technologies generally enable added capabilities to early-generation e-commerce deployments. Depending on the time frame, they can be deployed asrapid-implementation projects to deliver specific functionality, or built into longer-term plans toreduce capital outlays and operating expenses (see the moderate-level boxes in the PriorityMatrix).Low benefit ratings: Technologies in this group are not viewed as large contributors to overalloperational savings or to increases in marketing, sales or service capabilities(see the low-levelboxes in the Priority Matrix).Publication Date: 3 August 2010/ID Number: G00205840 Page 14 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  15. 15. Figure 2. Priority Matrix for E-Commerce, 2010Source: Gartner (August 2010)Off the Hype CycleThe following technologies were removed from the 2010 Hype Cycle for E-Commerce:Publication Date: 3 August 2010/ID Number: G00205840 Page 15 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  16. 16. Electronic bill presentment and payment for telecom providers E-marketing Insurance self-service portals Loyalty programs Online supplier directories Really Simple Syndication (RSS) for marketing Retail B2C mobile commerce Retail e-commerce usability and conversion analytics Secure Web stores Social CRM: customer service Social tools for retail websites Web 2.0This was done for one or more of the following reasons: The technology has reached maturity and is no longer part of the Hype Cycle. The technology is specific to a vertical industry and can be found in that vertical industrys Hype Cycle. The technology has been merged into another technology.On the RiseMobile Fraud DetectionAnalysis By: Avivah LitanDefinition: Fraud detection and prevention are used to protect customer and enterpriseinformation, assets, accounts, and transactions through the real-time, near-real-time, or batchanalysis of activities by users and other defined entities (such as kiosks) against accounts andrecords. The rapid and massive adoption of smartphone mobile applications is quickly driving theadoption of mobile-based transactions, generating the need for specific mobile fraud detectiontechnologies and models that heretofore have been nonexistent or hard to find.Fraud detection uses background server-based processes — transparent to users — thatexamine user and other defined entities access and behavior patterns. Then, it typicallycompares this information to a profile of whats expected and considered "normal." If tunedproperly, fraud detection systems can be highly effective at keeping criminals out. They are notintrusive to legitimate users unless the users activity is suspect. Access and behavior patterns onmobile computing devices are notably different from those on fixed-connection computing devices— hence, the need for new fraud detection modeling and profiling technology.Unlike mature fraud detection applications that exist through fixed connections — for example, ona PC or store-based — mobile fraud detection is in its embryonic stage, reflecting the emergenceof mobile platforms used to conduct sensitive transactions. The migration of transactions tomobile platforms will create high demand for fraud detection that operates in mobile environmentsPublication Date: 3 August 2010/ID Number: G00205840 Page 16 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  17. 17. and compensates for features in the land-based environment that do not translate into the mobileone. Fraud prevention techniques that are particular to mobile platforms include: 1. Mobile device identification — Identification is typically enabled through a JavaScript on the server that the user logs into or through APIs from communications service providers, which captures whatever information it can get from the users browser and phone, depending on if the user is using a browser or native application. Client device identification is an effective tool for PC-based fraud detection, but it must gather different device parameters to be effective in the mobile world. 2. Location of device — The location of a device is relative to other location information an enterprise knows about the user: Enterprises may want to check the location of the device relative to anything else it knows about the users location through other systems the user may interact with at the enterprise. For example, if the users mobile phone is in Germany, but seconds earlier, the user was withdrawing cash from an ATM machine in the United Kingdom, the enterprise knows that one of those transactions (either the PC Web-based or the mobile Web-based) is suspect. 3. Mobile fraud detection models — Lastly, some online fraud detection vendors are starting to tune their risk-scoring models specifically for mobile applications — for example, by looking at the mobile device itself, the location of the phone and the behavior of the user while transacting from the phone. For example, some users may navigate an enterprises mobile applications differently from how they navigate their fixed-connection browser applications. Likewise, some users may shy away from executing high-value transactions from their mobile phones, while they execute them frequently from their fixed-connection browsers.This area is very new to the fraud detection vendors, as there is little mobile transactionexperience to draw upon to build effective risk models and scores. It tries to combine some of themethods listed above, including mobile device identification and examining the location of themobile phone in relation to other information known about the user and his or her location.Position and Adoption Speed Justification: Fraud detection is already prevalent in the creditcard market and is quickly gaining adoption in other markets, such as healthcare insurance,online transactions, benefits fraud, tax fraud and internal corruption. However, the mobile frauddetection market is embryonic, reflecting the fact that high-risk transactions conducted frommobile devices are just — but rapidly — beginning to gain traction with the rollout of smartphonesfrom which Web browsing is a practical proposition. Furthermore, most of the malware attackinglegitimate users and their accounts is targeted toward PC-based browsers, and there have beenminimal attacks against mobile devices and their browsers, which until now has reduced theimminent need for mobile fraud detection. We expect this situation to change quickly, however, asfraudsters increasingly target mobile devices as attack vectors.User Advice: Assume the criminals will start attacking mobile devices, primarily by droppingmalware hidden in applications that users download to their mobile phones. Look for opportunitiesto use information from smartphones and network operators as context to make decisions aboutcredit card and other payment instrument usage. Engage with vendors that provide mobile-basedfraud detection based on mobile device identification, location awareness that users do not haveto opt into, and fraud detection models specifically designed for mobile computing.Integrate the mobile fraud detection system with your enterprise fraud detection system so thatcustomer and account profiles can be shared and fraud alerts can be correlated across productsand channels.Publication Date: 3 August 2010/ID Number: G00205840 Page 17 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  18. 18. Business Impact: Mobile fraud detection watches for suspect user and mobile device activityspecifically in the mobile computing environment. It will become a cornerstone for commercialcontext-enriched services and should be positioned as a benefit to and protection for consumers.It should be integrated with other enterprise fraud management systems, as users are highlyunlikely to only use the mobile channel to conduct their transactions.Benefit Rating: HighMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: 41st Parameter; AT&T; RSA; The Security Division of EMC; ValidSoft;VodafoneRecommended Reading: "Where Strong Authentication Fails and What You Can Do About It""Pattern Discovery With Security Monitoring and Fraud Detection Technologies""Location Technologies""Magic Quadrant for Web Fraud Detection""Case Study: Bank Defeats Attempted Zeus Malware Raids of Business Accounts"Social-Shopping SitesAnalysis By: Gene AlvarezDefinition: Social-shopping sites are community websites where members are shoppers that"friend" each other based on similar shopping interests, such as taste in fashion. Thesecommunities enable shoppers to exchange information, opinions and, in some cases, shoptogether. These sites vary in how users post their interests; some leverage credit cardtransactions or e-commerce site purchases, while others enable consumers to post items ofinterest and link their posting to other like users. Here, users begin to share information abouttheir buying habits and interests to discover new items, and obtain feedback on items of interestand other points about products.Position and Adoption Speed Justification: Social-shopping sites are appearing rather rapidlyas vendors attempt to take advantage of online social-software trends. The vendors hope togather large user bases quickly to drive advertising revenue and pay-per-click revenue streams.User Advice: Organizations should monitor their incoming Web traffic for traffic from these onlinesocial-shopping sites. This should include monitoring of leads that actually converted into sales. Itshould be sales that guides any advertising investments or relationships with these social-shopping sites, not just traffic.Business Impact: Social-shopping sites can contribute to online sales; however, it should bepart of a much larger online social commerce strategy for the organization. This is because thisoption can provide sales from certain smaller online segments to which the organization may notbe marketing.Benefit Rating: LowMarket Penetration: Less than 1% of target audienceMaturity: EmbryonicPublication Date: 3 August 2010/ID Number: G00205840 Page 18 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  19. 19. Sample Vendors: Blippy; Kaboodle; MyItThings.com; StyleFeeder; Swipely; ThisNext; WistsContext Delivery ArchitectureAnalysis By: William Clark; Anne LapkinDefinition: Context-aware computing is about improving the user experience for customers,business partners and employees by using the information about a person or object’senvironment, activities, connections and preferences to anticipate the user’s needs andproactively serve up the most appropriate content, product or service. Enterprises can leveragecontext-aware computing to better target prospects, increase customer intimacy, and enhanceassociate productivity and collaboration. From a software perspective, context is information thatis relevant to the functioning of a software process, but is not essential to it. In the absence of thisadditional information, the software is still operational, although the results of the softwaresactions are not as targeted or refined.Most context-enriched services are implemented in siloed systems, where a particular person,group or business process profits from being situationally aware. To replicate, scale and integratesuch systems, certain repeatable patterns emerge that will require a new enterprise solutionarchitecture known as context delivery architecture (CoDA).Gartner defines CoDA as an architectural style that builds on service-oriented architecture (SOA)and event-driven architecture (EDA) interaction and partitioning styles, and adds formalmechanisms for the software elements that discover and apply the users context in real time.CoDA provides a framework for solution architects that allows them to define and implement thetechnology, information and process components that enable services to use context informationto improve the quality of the interactions with the user. The technologies may include contextbrokers, state monitors, sensors, analytic engines and cloud-based transaction processingengines.As context-aware computing matures, CoDA should also define data formats, metadata schemas,interaction and discovery protocols, programming interfaces, and other formalities. As anemerging best practice, CoDA will enable enterprises to create and tie together the siloedcontext-aware applications with increased agility and flexibility. As with SOA, much of the pull forCoDA will come from packaged-application and software vendors expanding to integratecommunication and collaboration capabilities, unified communications vendors and mobile devicemanufacturers, Web megavendors (e.g., Google), social-networking vendors (e.g., Facebook),and service providers that expand their roles to become providers and processors of contextinformation.The CoDA architecture style considers information, business and technology domain viewpoints.The technology domains are application infrastructure, communications infrastructure, networkservices and endpoints (devices). Thus, CoDA provides a framework for architects to discovergaps and overlap among system components that provide, process and analyze contextualinformation. A key challenge of CoDA will be information-driven, not technology-driven. This keychallenge will revolve around what information sources can provide context, then whattechnologies enable that information to be provided in a secure, timely and usable manner, andhow this information can be folded into processes.Position and Adoption Speed Justification: Gartner introduced the term CoDA in 2007, basedon developments in areas such as mobile communications and cloud computing. By 2011, weexpect that aggressive enterprise architects and project managers will weave elements of CoDAinto their plans to orchestrate and build context-enriched services that rely not only on federatedinformation models, but also on federated delivery services. CoDA relies on SOA as anunderpinning and also is related to EDA, because enterprise architectures need to be agile andPublication Date: 3 August 2010/ID Number: G00205840 Page 19 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  20. 20. scalable to support context-aware computing. SOA and EDA have not yet reached the Plateau ofProductivity. We expect CoDA to reach the Plateau of Productivity gradually, after 2014.User Advice: Although CoDA, is an emerging architectural style, Type A organizations canbenefit in the short term by applying its principles as they experiment with use of contextinformation to provide improved user experiences in both customer-facing services and enterpriseproductivity. Leading-edge organizations need to begin to incorporate CoDA constructs ininfrastructure and services to gain competitive advantages with the early use of context-awarecomputing. Type A organizations should now be identifying which information sources, bothwithin the enterprise and external to it (e.g., from social-software sites), will provide contextinformation to a range of applications.Build competencies in CoDAs technology domains, particularly in communications, because themigration of voice from silos to general applications will be a key transformation, opening upfurther opportunities to create applications enhanced by context-enriched services. Anunderstanding of mobile development will also be key. The refinement of your enterprisearchitecture to include CoDA constructs assumes prior investment in SOA. Most mainstream,risk-averse organizations should not invest in building a CoDA capability, but should explore theacquisition of context-enriched services through third parties.Business Impact: Context awareness is a distinguishing characteristic of some leading softwaresolutions, including Amazon e-commerce, Google Search, Facebook, Apple and others. Duringthe next three to five years, context-aware computing will have high impact among Type Abusinesses in two areas: extending e-commerce and mobile commerce initiatives towardconsumers, and increasing the efficiency and productivity of the businesses knowledge workersand business partners.Context-aware computing will evolve incrementally, and will gain momentum as more informationsources become available and cloud-based context-enriched services begin to emerge. However,these will be siloed and will not use a standard or shared CoDA model. Emergence of formalCoDA protocols and principles will translate into a new technology category and feature set,affecting all application infrastructure and business application providers.Benefit Rating: TransformationalMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: Appear Networks; Apple; Google; IBM; Interactive Intelligence; Nokia; Pontis;Sense NetworksRecommended Reading: "Fundamentals of Context Delivery Architecture: Introduction andDefinitions, 2010 Update""The Seven Styles of Context-Aware Computing""Context-Enriched Services: From Reactive Location to Rich Anticipation""Fundamentals of Context Delivery Architecture: Provisioning Context-Enriched Services, 2010Update"Persona ManagementAnalysis By: Adam SarnerPublication Date: 3 August 2010/ID Number: G00205840 Page 20 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  21. 21. Definition: Persona management is the nascent class of tools to help people keep track of whatthey are saying and posting to the different online communities in which they participate. Aspeople go through their day, they constantly slip between several different personas; one minutethey are a boss, the next an employee. They are parents as well as spouses and, often, children;rock music fans and cloud-computing experts. Navigating these different roles in the real worldcan be tricky, but millennia of practice have made humans reasonably adept at handling theseshifts.In the online world, it is not so straightforward. As private and business interactions in the onlineworld increasingly overlap, social-media participants are faced with a dilemma: How can theymanage communications and interactions from all the different roles they play in their complicatedlives? Persona management helps people establish different personas and channelcommunications, as appropriate. For example, a persona manager would ensure that photosfrom a college reunion would only appear on social networks where those friends participate, andnot be posted to business-oriented networks.Position and Adoption Speed Justification: The need for persona management is muchgreater than the technology currently available to help do it. A few basic tools are available tomanage multiple Twitter accounts, or establish groups on Facebook and other social-networkingsites to channel postings, but these fall well short of what real persona management wouldrequire. Some requirements for a hypothetical persona management product include: Control of interactions across multiple public and corporate social-networking sites Filters to channel postings to appropriate sites based on semantic analysis and predefined policies Strong cross-directory authentication and single sign-on facilities Impeccable security and operational infrastructures Recall functions to withdraw "mistakes"This is a formidable list of requirements, so it will take some time for this technology to establishitself. Identity management initiatives like OpenID and Windows Live ID address some of thesecurity and identification aspects. Aggregation services like Ping.fm or FriendFeed distributepostings to multiple sites. Neither of these types of services include the wider facilities needed tomanage personas, although any of these could develop into persona management.We expect to see startups entering this market with specific offerings, as well as establishedplayers like Google, Microsoft and IBM making a play. Existing social networks like Facebook andLinkedIn are also likely to add elements of cross-network management to their offerings, whichcould evolve into useful persona management.User Advice: In the absence of effective personal management, individuals are largely on theirown to manage how they conduct their online lives. In the absence of technological assistance,prudence and forethought are the next best things. Enterprises need to establish guidelines as towhat are acceptable and desirable behaviors for their employees when participating in publicsocial media.Business Impact: Individuals will receive the primary benefits of persona management, since itwill make managing their personal and business online lives easier. Enterprises will also benefit,however, as these tools will reduce the embarrassment and worse from misplaced postings. Ascommunity and social-media sites proliferate both for business and personal use, these kinds oftools become even more important. Without them, many communities will lack participation,Publication Date: 3 August 2010/ID Number: G00205840 Page 21 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  22. 22. simply because users cannot cope with any more places to put "stuff," shutting off potentiallyrewarding avenues of participation.Benefit Rating: ModerateMarket Penetration: Less than 1% of target audienceMaturity: EmbryonicRecommended Reading: "Policies and Procedures to Manage Enterprise Internet Reputation""Five Major Challenges Organizations Face Regarding Social Software""CMOs Need New Skills to Engage Generation Virtual""The New World of Two-Way Engagement With Customer Personas""Whats Hot in CRM Applications in 2009"Rich Information VisualizationAnalysis By: Michael MaozDefinition: Context is critical to both consumers and the employees of an enterprise. Customerservice agents, for example, use rich visualization to receive customers account information,analyzed in such a way that it can be displayed in a highly understandable manner. The need tovisualize includes a customers physical location, preferences, value, appearance, circle offriends, family, affiliations and most-frequent "interaction paths" — Web, telephone, kiosk,automated teller machine and other sources. The requisite technologies exist in the form ofanalytics, CRM information, GPS, satellite mapping and Internet Protocol (IP)-enabled videocameras, as well as face and voice recognition. However, the software applications have not yetbeen developed. Organizations quickly discover that visualization is only as good as the data thatunderlies it, making master data management (MDM) a big factor.Position and Adoption Speed Justification: Small design firms, rather than commercial tools,deliver rich visualization capabilities. Privacy issues and the need for product development willcontinue to hinder adoption during the next five years. Analytics vendors will be key tomainstream adoption. Consumers are ever-more sophisticated regarding anonymity and privacyissues (that is, little is not already known), and this will lower barriers in the five- to 10-yearhorizon, accelerating adoption. Software as a service (SaaS), the computing power of thedesktop — and, to a lesser extent, PDAs — will be available during the next 10 years, as well asmore-efficient screens for agents and consumers to enable a series of successful "single view ofthe customer" projects (for agents viewing the customer) or consumer applications that willprovide increased viewing of their relationships with the business.User Advice: Type A organizations (aggressive technology adopters) should place a mentalcheck mark next to "rich visualization." In the meantime, they should ask questions such as, "Howdo we prepare for this opportunity to better understand more dimensions of our customers?"There is a close link to analytics. Bringing this content together to form a complete picture willrequire strong integration with analytical systems. Systems will need clean data that has beenstructured for purpose and target.Business Impact: The business impact is high because getting rich visualization "right" from atiming perspective will yield a first-mover advantage. Jumping in too soon will exposeorganizations to claims of invasion of privacy.Publication Date: 3 August 2010/ID Number: G00205840 Page 22 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  23. 23. Benefit Rating: HighMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: Adaptive Engineering; Google; MicrosoftCustomer-Centric Web StrategiesAnalysis By: Michael MaozDefinition: A customer-centric Web strategy (technology strategy and business strategy) is acohesive approach to ensuring that a website is intuitive to the visitor of that site, placing thecustomer at the center of the relationship. It focuses on tying the customer, prospect or partnerdeeply into the enterprise or organization, and harmonizes the various interaction channels. Itstarts with improvements to the website, but extends beyond it to other related interactionchannels and external services, such as social networking and other forms of social media. Thetechnologies, integrations, analysis, content, communication and business applications aredesigned and deployed through a collaborative effort between the business and the externalcustomer to achieve this goal of serving the customer need consistently with business goals. Itwill be used to optimize advertising via e-mail, search or other online approaches.Position and Adoption Speed Justification: A customer-centric Web is still a very immatureconcept and strategy for most businesses outside of online retail, where the concept is maturing.The challenge (beyond the process synchronization required) is that the technologies are notavailable as a suite, but rather cobbled together. There have been good reasons for this: theneed to rapidly innovate because of the evolving nature of user interaction patterns; emergingtechnologies, such as real-time analytics, social networking and recommendation/reputationengines; and highly fragmented reporting structures for the people tasked with building Webcapabilities. Creating a Web presence that draws customers in because it is engaging,responsive, reliable and intuitive to their needs will be a strong business differentiator.User Advice: Create an inventory of tools, technologies and applications required to deliver acustomer-centric Web. Appoint a project leader who has the approval of the board or CEO to runa customer-centric Web effort. Tap the community of customers, prospective customers, partnersand employees as a way of uncovering the true impact and effectiveness of your website. Lookfor redundancies in systems, and overlapping organizational responsibilities. Test ideas bymeasuring the impact before deploying fully.Business Impact: The business impact is high, because businesses waste a tremendousamount of money on marketing, sales and technical support as a way of overcoming theweaknesses in their websites. The desire to better control and optimize spending, and measurecosts and Web effectiveness, will drive customer-centric Web programs.Benefit Rating: HighMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: Accenture; DeloitteRecommended Reading: "A Framework for Creating the Future Customer-Centric Web"Publication Date: 3 August 2010/ID Number: G00205840 Page 23 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  24. 24. Transactional Ad UnitsAnalysis By: Andrew FrankDefinition: Transactional ad units are advertiser-supplied active display elements that canoccupy a standard position on a Web page or mobile or interactive TV application, such as abanner or text overlay, and that expands to present a secure transaction. When engaged by aconsumer using a mouse, touchscreen or remote control, these units will generally fill the screenor browser to provide additional space for merchandising and interaction, but they do not take theuser away from the underlying page, app or program. Like any display ad, they can be placedusing a variety of methods, such as contextual or behavioral targeting.Placement can be within an app or Web page, in which case the underlying content provider canbe compensated using a number of possible payment conventions. Placement can also betriggered by external input, such as a camera or map in an augmented-reality scenario thatprovides overlays to a live image.In addition to direct sales, transactions can include applications such as secure couponing, leadgeneration, secure notification, and authentication-based upsell and cross-sell sample scenarios.Position and Adoption Speed Justification: The idea of embedding transactions in Web adsfirst surfaced in the late 1990s, but failed to gain much traction primarily due to security concernsand technical challenges. In 2010, the concept got a strong boost from Apple, whose iAdsplatform was announced with great fanfare and featured transactional capabilities within the appadvertising platform.The benefits of this type of unit are clear: Collapsing the chain of events between advertising andsales not only enables advertising to become much more efficient and accountable formerchants, but also causes publishers to see much higher yields as a result of hosting sales ontheir sites. For consumers, the availability of impulse-buying opportunities in relevant contextscould also be seen less as intrusive advertising and more as an attractive feature of a site.There are, of course, impediments as well. Security concerns are an issue due to the possibilityof phishing attacks (as the merchants URL will not appear in a protected browser field), althoughthis could be seen as an advantage for name brand publishers and tightly controlled platform-based ad networks, like Apples, which have the capacity to supply a trusted context that isabsent within unknown sites and blogs. Perhaps the biggest issue, however, is channel conflict.E-commerce sites have strong incentives to process transactions on their own sites, both tominimize revenue payouts and protect their own brands and traffic, while manufacturer brandsmay be wary of undercutting established online channels with experimental ones, especially in ashaky economy. Still, the improvement in the cost per sale for many manufacturers andmerchants will prove hard to resist.In addition to Apple, several large Internet companies, including Google (Checkout), eBay(PayPal) and Facebook (Pay With Facebook), are reportedly experimenting with transactional adunits. With the drive to raise efficiency and squeeze more revenue out of the online channel forcommerce, its likely that transactional ad units will eventually become a productive staple ofdigital marketing, particularly for impulse purchases of soft goods and gifts.User Advice: Online publishers, especially those with trusted offline brands, should look foropportunities to employ embedded transactions in websites and apps, and build predictivemodels to optimize decisions about transaction targeting, based on behavioral and other relevantvisitor data.Publication Date: 3 August 2010/ID Number: G00205840 Page 24 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  25. 25. Online merchants should evaluate transactional ad units as a method to extend their storefrontsacross the Web. Online merchants will also need to make marketing and merchandising worktogether to enable these opportunities.Ad networks and agencies should develop near-term strategies for evaluating transactional adunit models and performance, either with partners or on their own.Business Impact: Although sales within ad units may initially be limited to certain categories,when the concept is extended to include opt-in lead generation, couponing and other nonsalestypes of transactions, the impact becomes broad across a wide range of product categories.Transactional ad units have the capacity to significantly raise ad yields for publishers, whilesimultaneously lowering the cost per sale for marketers.Benefit Rating: HighMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: Adgregate Markets; Alvenda; Apple; Lemonade; Mpire; nooked; PontiflexE-ServicesAnalysis By: Juergen WeissDefinition: E-services are offered by life insurers to their customers as part of their client-facingwebsites. E-services are usually part of a secure Web environment and include, in our definition,a wide range of customer self-services, including some or all the following service functions: Displaying policy details Downloading policy documents Switching investment funds (in the case of life insurance unit-linked products) Change of address Changing bank details Displaying premium bills Paying premium bills Creating alarms or notifications Downloading additional documents, such as tax declarations Changing passwords or requesting new onesAccess to these e-services is usually restricted to existing clients in a type of personalized "myaccount" section of the insurers website, and it requires previous registration. Gartner doesntconsider simple e-mail forms or requests that can be downloaded, printed and then physicallysent to the insurer as e-services.Position and Adoption Speed Justification: Gartner has decided to add e-services as a newentry on the 2010 Hype Cycle for life insurance, because more and more life insurers in manyregions are adding e-services to their customer websites. There is a lack of adoption amonginsurance customers, though, because of cumbersome onboarding procedures and the absencePublication Date: 3 August 2010/ID Number: G00205840 Page 25 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  26. 26. of incentives from life insurers. Gartner expects more life insurers to add e-services to theircustomer portals because of potential cost savings and other reasons. This will constantly movee-services along the Hype Cycle, but because of staggering customer adoption, this technologywill not reach the Plateau of Productivity before the next two to five years.User Advice: Life insurers that plan to introduce e-services, or aim to expand their use, shouldconsider incentives, such as discounts or transaction fee savings, to promote e-service adoptionin their customer base. In addition, life insurers need to analyze the back-office businessprocesses that they want to offer as e-services to clients. Some of these processes wont besuitable for real-time or near-real-time online access, because theyre batch-based and will fail tomeet customer expectations. Customers who pay premium invoices via the Internet will, forexample, expect to see the impact on their outstanding receivables immediately, and wont waitfor a batch run to happen every week.Finally, life insurers shouldnt consider offering any e-services without a proper and scalableback-office integration with relevant systems, such as policy administration or billing. Havingfewer but tightly integrated services is much better than having many services that are based onsimple online forms, and where information has to be manually entered in the back office.Business Impact: Life insurers pursue a number of goals by providing e-services to their clientbase. The most obvious and most often mentioned reason is convenience for the policyholders.Instead of having to call the insurer or its agents/brokers, clients can have access to basic self-services in an almost 24/7 mode, thereby eliminating the submission of paper-baseddocumentation. In Gartners opinion, there are at least two other reasons — costs and customerretention. Life insurers that offer e-services with a sophisticated back-office integration (withoutmanual re-entry of data) can save a considerable amount of costs. Organizations will not onlyavoid interactions with their call centers and reduce error rates because of manual processes, butthey will also be able to shift routine tasks to their customers.Another important driver for e-services is customer retention. In general, life insurers face theproblem of having very few interactions (actually often none at all) per year with their clients.Offering e-services is a means of increasing the frequency of interactions (for example, allowingclients to periodically review and adapt their portfolios), and also a means of meeting changingcustomer expectations. Internet users are used to initiating requests via the Internet withouthaving to print and physically send in forms.Benefit Rating: ModerateMarket Penetration: 1% to 5% of target audienceMaturity: EmergingSample Vendors: MajescoMastek; Oracle; SAP; StoneRiverRecommended Reading: "Life and P&C Insurers Lack Incentives to Drive E-Service AdoptionAmong Customers""Creating a Comprehensive Service Strategy for Life Insurance and Annuities"Online Advertising Data ExchangesAnalysis By: Andrew FrankDefinition: An online advertising data exchange is a Web-based trading platform that enablespartners to buy and sell data intended to boost ad-targeting effectiveness for Web displayadvertising.Publication Date: 3 August 2010/ID Number: G00205840 Page 26 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  27. 27. In contrast with an online ad network or ad exchange, data exchanges do not sell ads orimpressions. The separation of data from media is intended to benefit publishers, e-commercesites and marketers that desire the benefits of an exchange for targeting (liquidity, scale andopenness) without having to bundle data with media inventory. This gives data suppliers thechance to monetize ad impressions beyond their own share of Web traffic, and data buyers thechance to reach targeted consumers in a wider variety of contexts.The data involved is generally consumer intent data, also known as behavioral targeting (BT)data, that identifies a cookied website visitor as being in-market for (or at least interested in) acertain product category, based on the observed browsing history. However, other data, such asdemographics derived from registration data or other sources, may also be offered.Position and Adoption Speed Justification: Advertising data exchanges first appeared in 2007with the launch of an Israeli firm called eXelate, but didnt get much traction until 2008, whentrends aligned to build enough favorable opinion to attract major publishers that were underpressure to increase online revenue and saw an opportunity to leverage both data and brand.(The brand aspect comes into play as a trust factor, since the quality of such data is almostimpossible to verify ahead of its use to generate a response, which is often delayed.)Unlike the ad exchange model, data exchanges do not have as much pressure to attractmarketers on the buy side, as publishers can trade data among themselves and use it to raiseyields on their respective sites that they can still sell directly to advertisers.In 2009 and 2010, the rise of real-time bidding (RTB) has given a boost to these systems, as RTBincreases the opportunities to utilize targeting data in a real-time context. This has given rise to anew generation of data providers offering more-segmented selections of targeting data.Meanwhile, 2010 saw an upturn in the cyclical pattern of privacy concerns, focused in part on theissue of giving consumers transparent access to their BT profiles. In April, U.S. congressmanRick Boucher floated draft legislation to require ad networks to either obtain users opt-in consentprior to tracking them, or provide "prominent notice" and supply consumers access to view andedit profiles to qualify for opt-out consent status. Responding to this, BlueKai, a prominent dataexchange, recently released a white-label tool to give Web publishers the ability to allowconsumers to access and edit the targeting segments they have been placed into. Adoption bypublishers and consumers, as well as the course of legislation, remains speculative, althoughGartner considers it unlikely that legislation will have a significant chilling effect on the currentself-regulated online ad-targeting marketplace in the U.S. Other regions (particularly in theEuropean Union) with more-stringent prohibitions may remain unattractive to data exchanges.Another question regarding the future of data exchanges is whether they will ultimately beconsolidated into ad exchanges. There is a growing glut of online consumer data available fromvarious sources at a time when some marketers are beginning to question the ubiquity ofbehavioral targeting, putting pressure on the extent to which transaction values can continue toexceed overhead. While separation of data from media may produce efficiency advantages, thereare likely to be economies of scale and performance benefits from combining these two types oftransactions on the same exchange platform, meaning that data exchanges may wind upconsolidated with ad exchanges at Google, Yahoo and Microsoft. This may provide an attractiveexit for some pioneers in the category, and the independent data exchange concept mayultimately fade.User Advice: Publishers and online merchants should investigate the possibility that onlineadvertising data exchanges could be a source of both direct revenue and more targeting value fortheir advertising customers or activities, respectively. Before participating as sellers, they mustverify the quality of their data by its ability to generate positive results (higher click-through ratesPublication Date: 3 August 2010/ID Number: G00205840 Page 27 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  28. 28. and more conversions) in trials with partners. Before participating as buyers, they should have inplace methods for tracking data quality through similar metrics and keep score of sources.Ad agencies and ad networks need to regard data exchanges as both potential partners andpotential disintermediaries. Advertising holding companies need to consolidate data pools at theirmedia agencies and may consider acquiring or building data exchanges of their own. However,privacy and client confidentiality issues must be well vetted and protected against data leakage.E-commerce merchants are likely to have behavioral data of value to manufacturers and categorypublishers, but need to prevent its sale to competitive retailers. On the buy side, BT is an effectiveway to increase marketing efficiency.All potential users should subject plans to scrutiny by privacy experts (both legal and technical)prior to participating, and carefully monitor issues as they arise. Best practices and industry groupstandards should be studied and adopted as they emerge.Business Impact: Online data exchanges represent acquisition targets for large ad exchangesor networks.Brand-name publishers and e-commerce merchants have the strongest opportunity to tap newrevenue from the sale of anonymous consumer data.Communications service providers (CSPs) have examined the potential to use techniques suchas deep packet inspection (DPI) to acquire and market targeting data from ISP traffic; however,the privacy backlash at this time appears prohibitive.Benefit Rating: ModerateMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: Adknowledge; BlueKai; eXelate; Media6DegreesRecommended Reading: "Targeted Advertising and the Privacy Predicament""Making Digital Advertising Work for Media Companies""Online Ad Exchanges Change the Game""Real-Time Bidding Heralds Growth in Cloud Advertising"Social CommerceAnalysis By: Gene AlvarezDefinition: Social commerce is the use of social-software tools and user-generated contentwithin an e-commerce context. Social commerce is used to create sales lift by providingcustomers with information and content from other customers that assists with the evaluation of aproduct or service. Techniques can vary from the creation of an online store within an existingcommunity, such as Facebook, to the use of product reviews, blogs, wikis, and question-and-answer threads to drive sales.Position and Adoption Speed Justification: Facebook has reached 500 million users and thepercentage of time that users spend on their Facebook accounts continues to grow.Organizations have begun to see Facebook as a viable marketing and sales channel. In addition,user-generated content, such as product reviews, videos, wikis and blogs, continues to grow in itsinfluence on consumers buying decisions. Techniques like a company store within Facebook orPublication Date: 3 August 2010/ID Number: G00205840 Page 28 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  29. 29. the use of user-generated content on ones website are the foundation of social commerce, and itis growing due to the consumers ability to filter out traditional market media, such as direct mail,e-mail and TV advertisements. Therefore, we believe that social-commerce techniques andtechnology will rapidly climb in hype, and as organizations discover the pros and cons of socialcommerce, they will move this technology quickly through the Hype Cycle to maturity.User Advice: Business-to-consumer (B2C) organizations should use social-commercetechniques and technologies in 2011 and 2012 for B2C sales initiatives. However, these shouldbe targeted and focused on the specific propose of driving sales, not just the number of followersor friends. Therefore, organizations should focus on techniques with proven value, such as saleson top-rated products or friends-only promotions. Moreover, organizations should experiment withvarious tools, because one tool may only address a single customer segment.Business Impact: Social commerce can create new customer segments that are based on aconsumers interests in a Web environment. This can enable the targeted selling of products thatare related to group interests and activities.In addition, social commerce can help to drive down the cost of sales, because it is used in themore cost-effective digital channels (marked by considerably less need for human intervention),and can be an extension of brand personality to create greater brand awareness.Benefit Rating: HighMarket Penetration: 5% to 20% of target audienceMaturity: EmergingSample Vendors: Bazaarvoice; Dell (Dell Swarm); Demand Media; Groupon; Jive Software;LivingSocial; ShopIgniterRecommended Reading: "Magic Quadrant for Social CRM"Context-Enriched ServicesAnalysis By: William Clark; Anne LapkinDefinition: Context-enriched services use information about a person or object to proactivelyanticipate the users need and serve up the content, product or service most appropriate to theuser. The IT industry is beginning to recognize a pattern where augmented reality offerings,mobile location-aware ads, mobile search and social mobile sites fall under the umbrella term"context aware." Context-enriched services are the fundamental unit of software for improvinguser experiences through context, and are an implementation foundation for context-awarecomputing. These terms denote services and APIs that use information about the user tooptionally and implicitly fine-tune the software action with better situational awareness. Suchservices can proactively push content to the user at the moment of need, or suggest products andservices that are most attractive to the user at a specific point in time.Context is relative and describes the environment, history or setting in which a user interactionoccurs. From a software perspective, context for a service is information (data) that can add valueto the functioning of the service, but is not essential to it. In the absence of context information,the service is still operational, but may not provide results that are as finely targeted. Thecurrency and quality of the context information will determine the value it adds to the service.Most applications that benefit from context-enriched services will subscribe to them using service-oriented architecture (SOA) techniques and implementations.Publication Date: 3 August 2010/ID Number: G00205840 Page 29 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  30. 30. Context-enriched services will also require sophisticated reasoning to determine how softwareactions should be changed to make them more appropriate for the users context.The more current and selective the context information, the more precise the functioning of theservice. Context-enriched services are provided by context brokers, which are designed toretrieve, process and stage this information so that subscribing functions can use relevant contextin addition to processing incoming data. When an application uses context-enriched services, it isa context-aware application. As a best practice, context-enriched software services have themodularity and accessibility of SOA and use SOA-related standards.Position and Adoption Speed Justification: Context enrichment refines the output of servicesand improves their relevance. We observe implementations today in mobile computing, socialcomputing, identity controls, search and e-commerce — the areas in which context is emergingas an element of competitive differentiation. However, the current context-aware solutions arefragmented — they are individually designed, custom-developed and deployed, and, because oftheir competitive importance, are often not widely distributed or advertised. The movement insocial computing to open and share social-relationship (social graph) information is an early steptoward the standardization of context-aware computing APIs; however, most of the requiredstandardization effort has not yet begun. Context-enriched services will require multiple stages ofinnovation and platform technology evolution before their essential benefit is well-understood inthe broad mainstream computing markets.In 2010, we are seeing the beginning of generic services, whereas before all these services werecustom-built. Context-enriched services have advanced significantly during the past year, movingfrom an early post-trigger position to a point half way up the Slope of Enlightenment. We areseeing an increasing number of applications that, while they may not use the term context-awarecomputing, are clearly using context information to improve the user experience. These includeApples recent developer guidance regarding location-aware advertising, the augmented realitysystems that give you information on an object shown in the camera lens of your phone, and theability of Google Android-based phones to augment services based on the users contacts,behavior and other components of context information.In the long term, there will be a shift from reactive to proactive services, so push and subscribewill be more prevalent, and the number and richness of information sources will rise.User Advice: Context-enriched services will begin with simple scenarios (one category, such aslocation) and evolve into compound patterns (e.g., taking into account location, presence andgroup behavior). Application developers and service providers should take advantage of the widerange of contextual opportunities in their e-commerce, security, social-computing and mobile-computing systems. Some early context processing can be achieved using event processing andcomplex-event-processing technologies; enterprises need to plan to incrementally develop orsource more context enriched services in step with their ambition levels of improving userexperience.Business Impact: Context-enriched services will be transformational for solution providers.Context enrichment is the next frontier for business applications, platforms and developmenttools. The ability to automate the processing of context information will serve users by increasingthe agility, relevance and precision of IT services. New vendors that are likely to emerge willspecialize in gathering and injecting contextual information into business applications. Mostcontext-aware applications are likely to arrive as incremental enhancements to SOA, without amajor disruption to prior architecture. However, the new kinds of business applications that willemerge as the function of full context awareness may end up being revolutionary and disruptiveto established practices.Benefit Rating: TransformationalPublication Date: 3 August 2010/ID Number: G00205840 Page 30 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  31. 31. Market Penetration: 5% to 20% of target audienceMaturity: EmbryonicSample Vendors: Appear Networks; Apple; Google; Pontis; Sense NetworksRecommended Reading: "Context-Aware Computing: The Future Is Now""Key Issues for Context-Aware Computing, 2010""Context-Enriched Services: From Reactive Location to Rich Anticipation""Context-Aware Computing: Its Time to Carefully Choose Your Vendors""Apple Note Signals Move to Claim Context-Aware Advertising"Open-Source E-Commerce SoftwareAnalysis By: Gene AlvarezDefinition: Open-source e-commerce software enables the creation of all (for example, an entireWeb store application) or part (for example, a shopping cart) of a Web store. This software hasfeatures such as shopping cart functionality, product catalogs and other capabilities that enablestore owners to set up, run and maintain online stores. This software is available for free under aGNU general public license; however, other fees may exist for varying types of membership. Thisdoes not include the use of open-source software (OSS) used for development, Web, databaseor application servers commonly known as the LAMP platform. However, open-source Ajaxtoolkits are part of the portfolio of OSS packages that can indirectly enable e-commerce sites (inthe same fashion as application servers, relational database management systems [RDBMSs],etc.).Position and Adoption Speed Justification: Web 2.0 companies that were created using theLAMP platform, such as Facebook and Wikipedia, have captured so much market attention thate-commerce managers are frequently asking Gartner about their open-source options for e-commerce. Although adoption of OSS for certain aspects of e-commerce, such as applicationservers, operating systems and databases (LAMP platforms), has been a mainstream activity forat least five years, enterprises have been wary of adopting open source for actual e-commerceapplication software.The key issue that has clients concerned about open source for e-commerce is the question: "Ise-commerce OSS scalable, secure and robust enough for large-scale transactional sites, giventhat many Web 2.0 startup companies that use open source are not transactional?" The answeris that it will take at least five years for this software to mature to the standards of todaysenterprise e-commerce licensed software, and at least the same number of years to match thecapabilities of the current software-as-a-service (SaaS) e-commerce offerings. However, thesepackages were not designed to compete with high-end, complex e-commerce solutions. Theywere designed to service low to midrange requirements that can meet the requirements oforganizations with low to midrange e-commerce transactional needs.User Advice: Enterprises that have large-scale transactional Web stores should not use theseopen-source e-commerce software solutions. Instead, they should employ other aspects of opensource in their stacks — the most common being the application server. Users of publishing sitesthat have databases of content they wish to publish for free can use these open-source solutions.Business Impact: In their current state, open-source e-commerce software offerings remainincapable of meeting the needs of a large enterprise. However, for startup companies and smallenterprises, these offerings can be beneficial solutions, because they are low-cost alternatives.Publication Date: 3 August 2010/ID Number: G00205840 Page 31 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  32. 32. Benefit Rating: ModerateMarket Penetration: Less than 1% of target audienceMaturity: EmergingSample Vendors: AgoraCart; CubeCart; dashCommerce; Interchange; LiteCommerce; Magento;Nexternal Solutions; osCommerce; Shopify; VirtueMart; X-Cart; Zen CartCampaign Management SaaSAnalysis By: Adam SarnerDefinition: On-demand campaign management involves the deployment of campaignmanagement solutions in a subscription-based, multitenant model.Position and Adoption Speed Justification: Specific campaign management functions — suchas e-mail, A/B testing (a technique to isolate and test campaign variables), online cross-sellingand upselling, and customer-focused Web analytics and lead management — are available in anon-demand model and are mature. However, more-complex implementations (such asmultichannel campaign management applications) often require more connections with multipleback-end systems that are less mature. The speed of adoption has accelerated, with multiple new(and often lower-priced) software-as-a-service (SaaS) campaign management offerings releasedduring the past 18 months.User Advice: Marketers should consider on-demand deployment models for more-tacticalcampaign management deployments, particularly in e-marketing areas. To date, e-marketing-focused applications (such as Web analytics, e-mail marketing, online dialogue management andonline A/B split testing) are being offered as on-demand deployment models. More-strategic andcomplex integration requirements for multichannel campaign management are still likely torequire on-premises implementations.Business Impact: Less internal IT involvement, lower maintenance costs and predictable,subscription-based cost structures are the potential benefits of campaign management ondemand. Companies can use specific functionality — such as A/B testing, lead management,community marketing or e-mail marketing, which are available in an on-demand offering — tojustify building larger, multichannel campaign management initiatives. For example, in B2Borganizations, companies use lead management applications in on-demand models. Business-to-consumer organizations use A/B and multivariant testing tools to serve up optimal offers or themost effective page layouts. Large vendors are likely to offer more-complete multichannelcampaign management and a choice of deployment options (hosting on-premises and licensedsoftware).Benefit Rating: ModerateMarket Penetration: 5% to 20% of target audienceMaturity: AdolescentSample Vendors: ATG; Eloqua; Marketo; Neolane; Responsys; RightNow; smartFOCUS; UnicaRecommended Reading: "Software as a Service in Campaign Management, 2008""Magic Quadrant for Multichannel CRM Campaign Management"Publication Date: 3 August 2010/ID Number: G00205840 Page 32 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
  33. 33. Web Content Product Recommendation EngineAnalysis By: Bill GassmanDefinition: A Web content product recommendation engine provides an algorithmic derived list ofitems to be published in a Web page or other online content such as e-mail or display advertising.The algorithm can be configured to provide items that most others have searched for, put into ashopping cart, purchased or recommended to others. Recommendations can be biased by stock-on-hand, brand or price affinity and user profile dimensions, such as geography, time of day orhistorical behavior. The algorithmic engine can be run as a cloud-based service or on-premises.Recommendations are fed into content management systems or substituted directly into dynamiccontent formats.Position and Adoption Speed Justification: Although this is the first year that this technology isbeing tracked in our Hype Cycles, it has been adopted in high-end retail sites for some time. Inaddition, manual approaches are used by some organizations. The cost to deploy is still fairlyhigh, keeping it away from low volume sites, but prices should fall as demand picks up. Evolvinguses include service resolution recommendations, greater ties with customer and transactioninformation from back-office systems and context aware computing. Placement in the pre-peakhype segment is justified by the relatively low penetration of commercial products but increasingnumber of vendors coming to market.User Advice: Start with an ROI calculation to see if an uplift of 5% in website revenue will justifythe cost. This is a conservative but realistic result. Dedicate at least one full-time resource tolearn and operate the tool, and to train others to work with the rules that bias therecommendations. Develop an attribution model with a control that takes into account how manypeople would buy an item anyway. Adopt the advanced features such as inventory and margindata integration once the basic skills are mastered.Business Impact: The potential is high, but most organizations we have spoken with arerealizing a 2% to 5% uplift in revenue. As the algorithms improve, along with context-awarecomputing and integration with back-end systems, so will the customer experience and upliftyield.Benefit Rating: ModerateMarket Penetration: 1% to 5% of target audienceMaturity: EmergingSample Vendors: ATG; Baynote; Certona; Coremetrics; MyBuys; Omniture; RichRelevanceRecommended Reading: "Tutorial: Web Content Product Recommendation Engines""Coremetrics Intelligent Offer Recommendation Engine"Customer Interaction HubAnalysis By: Johan JacobsDefinition: The customer interaction hub (CIH) is a multichannel infrastructure that includesvoice, Web chat, e-mail, fax, self-service, interactive voice response (IVR), collaborative browsingand social feeds like Twitter, and that focuses on centralized processing for external customerinteractions. It is integrated with back-end CRM, ERP and supply chain management (SCM)systems. The key functions are centralized business rules, aggregated integration points, channelindependence and customer experience management.Publication Date: 3 August 2010/ID Number: G00205840 Page 33 of 107© 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

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