Elastic Path's presentation at Web 2.0.

1. Web 2.0 Expo New York
The Future of Ecommerce:
Frictionless, Social, Everywhere
October 10th-13th, 2011
Presented by Elastic Path Software Chief Strategy Officer Cliff Conneighton
C o n f i d e n t i a

2. Introducing Elastic Path Software
Digital Commerce for Innovators
• We help the world’s biggest brands sell digital goods and services
• We provide a flexible digital commerce platform and expertise in
commerce strategy and implementation
• #1 ecommerce blog www.getelastic.com
• For more on-demand digital commerce resources
www.elasticpath.com/resources
Elastic Path Research and Consulting

3. Elastic Path Research &

4. Digital is different. It must be:
Frictionless
Social
Everywhere
Elastic Path Research &

5. Frictionless
• Transactions in the context of life
• Only relevant offers
Elastic Path Research &

6. Social
• Control of the brand has shifted to the crowd
• Anyone can be a merchant, author, reviewer, developer,
reporter, editor, publisher
Elastic Path Research &

7. Social
• Control of the brand has shifted to the crowd
• Anyone can be a merchant, author, reviewer, developer,
reporter, editor, publisher
Elastic Path Research &

8. Everywhere
• Sellers come from anywhere
• Products come from anywhere
• Information about products comes from anywhere
• Buyers come from anywhere
• Transactions can occur anywhere
• Technology comes from anywhere
Elastic Path Research &

9. elas·tic i-las-tik
• capable of ready change or easy expansion or
contraction: not rigid or constricted
• receptive to new ideas: adaptable
Elastic Commerce
Elastic Path Research &

10. For many, this is an existential challenge
February sales of e-books tripled y/y CAGR forecast = 72%
Traditional down 34%
$100
Millions
$80
$60
$40
$20
$0
2011
2010
Elastic Path Research &

11. Gamers shifting from boxed to digital downloads
• In 2011 v 2010
– 73% to spend the same or more on downloads
– 63% to spend the same or more on boxed games
– 76% of PC & Mac gamers with tablets and smartphones plan to spend same or
more on mobile games
• Electronic Arts Q4 2011 earnings call: will become “fully integrated
digital entertainment company”
• 73% find title bundles (all current & future downloadable content)
appealing
• 70% would view embedded ads to play for free
• 51% would pay monthly fee for unlimited games
• 77% would buy more with “try before you buy”
• 6 million unique users access Steam daily
Elastic Path Research &

12. Google Catalogs kills ecommerce as we know it
Elastic Path Research &

13. New sales and marketing models for books
• 71% like all-you-can-read subscriptions idea
• 70% will accept embedded ads to reduce price
• 75% will refer on social sites for discounts, 68% for free
• 79% interested in group buying discounts
• Recommend / review on social media now:
– 66% of 18-24
– 47% of 35-54
– 19% of 55+
• > 50% young adults would “rent” rather than buy
• 36% would buy more if could share/loan more
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14. A digital product is different. It can be:
• Time-based
• Copied
• Used simultaneously
• Dis-aggregated
• Bundled
• Consumed in bites
• Subscribed
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15. Traditional Retail Hard-goods Relationship
Order
wait
Ship
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16. New Era of Digital Relationship
play
contribute socialize
sample download experience
view read
watch renew
try query
explore
now
extend continue
offer upgrade learn
Requires Digital Relationship Management
for a perpetual interactive relationship
Elastic Path Research &

17. What good is a
“Stock Keeping Unit”
when you are delivering a copy of a file?
really selling “Entitlements”
Elastic Path Research &

18. Long Tail v. Paradox of Choice
Offer management Product Discovery
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19. Commerce Software Adobe Omniture
Touch Clarity
IBM Coremetrics
BazaarVoice
PowerReviews
Intelligent Offer
ATG Adobe
Vendor Ecosystem Adobe Omniture
Site Catalyst
Test & Target
Recommendation
s
Communispac
Scene 7 Adobe
Allurent Flash,
Flex
Omniture IBM Coremetrics Certona
e ChannelAdvisor ATG
SiteSearch Webtrends
Interwoven Choicestream Leverage RichFX eStara
(fka Mercado) Liquid
Optimost Aggregate
Endeca Lithium Pixels Click2Talk
IBM Progress Google Knowledge
EasyAsk ONEsite Talisma LivePerson
GSI iPhrase Rich Adobe
* SaaS defined by
Commerce Microsoft Relevance KickApps Dreamweaver Oracle VoiceStar
subscription pricing,
not just hosting Fast Interwoven Baynote Oracle
Venda Oracle Microsoft eGain Experian
Vignette Pluck
MarketLive SES FrontPage Talisma CheetahMail
Oracle Oracle Kana
Autonomy RTD Jive RightNow Exact Target
Demandwar
Attivio Oracle
e Salesforce Responsys
Oracle Redhat Infor
ATG Commerce JBoss Inquira YesMail
IBM IBM epiphany
Sun Silverpop
Websphere Commerce Microsoft Websphere
Java System Oracle Eloqua
Payment / Tax /
Fraud Screening
SAP PayPal
Sterling Comergent Commerce
Elastic Netweaver Microsoft .NET Litle Verisign
Escalate Retail SAP Oracle
Path Vertex
customer-facing (Blue Martini) eCommerce WebLogic Application Server Chase Google
Paymentech Cybersource Checkout
enterprise-facing Escalate Retail Database ADP Taxware
SAP Oracle BillMeLater
Microsoft
Oracle Oracle SQL Server
Siebel Oracle Order Motion
IBM
PeopleSoft Sterling
DB2
JD Edwards NCR Yantra
Oracle Microsoft
SAP Siebel Escalate Manhattan
Retail Associates
Financials
Salesforce.com SAP Oracle
ClickForensics
IBM
RightNow
iCrossing SAS Cognos
Keynote Oracle
Oracle
IBM Unica Retail
Aprimo Red Hat
iPerceptions
Oracle Alfresco
Forsee Results Oracle
representative
Gomez subset of vendors
Oracle
Elastic Path Research &

20. The Integration Challenge
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21. Traditional API approach inappropriate for
Elastic Commerce
SOAP is sooooooo 90’s
Requirements for a new model of commerce API:
• Built for Media developers, not Java developers
- Navigable REST
- Scope focused on commerce: terse = fast
• Optimized for the new universe of devices
- Oriented to javascript, not XML
- Perfect for iOS, Flash, jQuery
• Enabling decoupled, agile workflow
- Not assuming a bricks & mortar shopping model
• Security model in the user’s context
Elastic Path Research &

22. You don’t know what you’re doing.
And neither do your IT experts.
Elastic Path Research &

23. Higher level of departure allows innovation, differentiation
Tomorrow
elastic commerce platform
2010
retail commerce platform
2000
app server
1990
ERP
1980
database 1970
operating system 1960
Elastic Path Research &

24. Future elastic commerce system requirements
1. Built on the foundation of entitlements
2. Enable great customer experience on variety of
devices and internet of things
- To enable selling in the context of life.
3. Make buying experience more relevant and
frictionless
4. Optimize integration with vast ecosystem
5. Architected for flexibility & extensibility
Elastic Path Research and Consulting

25. Questions
For more on-demand digital commerce resources
www.elasticpath.com/resources
info@elasticpath.com
1.800.942.5282 (toll-free in North America)
www.elasticpath.com
C o n f i d e n t i a