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High Velocity Commerce - SXSW Interactive 1999


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This was a presentation I delivered at SXSW 1999 in Austin TX.

In 1999, very few websites could take orders reliably - and the ones that did were very basic catalogs.

This presentation demonstrates thought-leadership of the time of the potential to drive huge value by connecting your (new) online "e" commerce activities to increased speed and responsiveness from entire business value chain! #ensw

The beginning of "Enterprise 2.0"!

Published in: Software
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High Velocity Commerce - SXSW Interactive 1999

  1. 1. High-Velocity Commerce Robb Bush Head of Marketing Communications & Corporate Creative Director SXSW Interactive 1999
  2. 2. Robb Bush <ul><li>i2 Creative Director - 3 years </li></ul><ul><li>Corporate Design, Marketing and Product UI </li></ul><ul><ul><li>Corporate Brand and Solutions Marketing </li></ul></ul><ul><ul><li>Advanced User Interface and HCI Groups </li></ul></ul><ul><li>Previous Dir. Product Development at Big Hand (93-96) </li></ul><ul><ul><li>One of the pioneers of interactive media in Texas </li></ul></ul><ul><li>Austin Native </li></ul>Robb Bush - SXSW Interactive 1999
  3. 3. Selling from your Site New Marketing Opportunities <ul><li>True One-to-One Marketing </li></ul><ul><li>Customer Profiling, Personalization </li></ul><ul><li>Purchasing Profile and History </li></ul><ul><li>Targeted Advertising and Content </li></ul><ul><li>Direct Marketing, e-Mail and x-media publishing </li></ul><ul><li>Collaborative Demand Planning </li></ul><ul><li>Is this a dream? </li></ul>Robb Bush - SXSW Interactive 1999
  4. 4. Marketing Challenges: Selling from someone else’s site <ul><li>De-contextualization of marketing messages </li></ul><ul><li>What happens when everyone is selling someone else’s products </li></ul><ul><li>Dis-intermediation, Re-intermediation, Info-mediation, Portals, Exchanges, Affiliate Marketing. </li></ul><ul><li>Who is responsible for YOUR brand? </li></ul><ul><li>Are you still responsible for your product and quality of service? You bet! </li></ul>Robb Bush - SXSW Interactive 1999
  5. 5. In addition your online sales, you will be expected to provide: <ul><li>Expert, trustworthy buying advice… </li></ul><ul><li>Knowledge and Consumer Communities </li></ul><ul><li>Recommendations based on…history, user profile </li></ul><ul><li>Tiered, real-time pricing…availability/delivery time </li></ul><ul><li>Accurate configurations…sell the right product. </li></ul><ul><li>Alternatives…best choices for buyer AND seller. </li></ul><ul><li>Comparison shopping…find the best deal </li></ul><ul><li>Accurate delivery date and time… </li></ul><ul><li>Tracking and tracing…where's my order? </li></ul>Robb Bush - SXSW Interactive 1999
  6. 6. Its only the beginning, Get ready for a wild ride. <ul><li>Given the new marketing opportunities…add: </li></ul><ul><li>Bandwidth will continue increasing. </li></ul><ul><li>Consumers trust of online retailers. </li></ul><ul><li>Familiar brands are online, old and new. </li></ul><ul><li>Consumers are expecting higher quality products, tailored to me, at the best possible price, tomorrow. </li></ul><ul><li>And they are one click from the competition. </li></ul><ul><li>Therein lies the rub… </li></ul>Robb Bush - SXSW Interactive 1999
  7. 7. Its only the beginning, Get ready for a wild ride. <ul><li>Can your business compete in this environment? </li></ul><ul><li>Can you develop, buy, make, move, store, sell and deliver with the responsiveness required for High Velocity Commerce? </li></ul><ul><li>How can you support the level of customization and personalization promised? </li></ul>Robb Bush - SXSW Interactive 1999
  8. 8. Business Situation: Increasingly Variable and Volatile <ul><li>Global markets with diverse sales channels </li></ul><ul><ul><ul><li>Customers worldwide via Internet, Retailers, Salespeople, Mail-Order and By Telephone </li></ul></ul></ul><ul><li>Diverse and geographically distributed supply networks </li></ul><ul><li>Diverse manufacturing and distribution </li></ul><ul><li>Mass customization (Pricing/Product/Solution) </li></ul><ul><li>Volatile & Perishable demand </li></ul><ul><li>Increasing Margin Pressure </li></ul>Robb Bush - SXSW Interactive 1999
  9. 9. Key Business Drivers <ul><li>Customer Intimacy </li></ul><ul><li>Increase Revenue </li></ul><ul><li>Cost Reduction </li></ul><ul><li>Channel Partner Relationships </li></ul><ul><li>Market Responsiveness and Awareness </li></ul><ul><li>Implementation </li></ul>Robb Bush - SXSW Interactive 1999
  10. 10. Key Business Drivers <ul><li>Revenue Enhancements </li></ul><ul><ul><li>Increase revenue potential of each sales transaction </li></ul></ul><ul><ul><ul><li>Incorporation of cross-sell and up-sell intelligence into product presentation </li></ul></ul></ul><ul><ul><ul><li>Service contract/part planning at time of sale </li></ul></ul></ul><ul><ul><li>Increase the rate of customer retention </li></ul></ul><ul><ul><ul><li>Customer loyalty - repeat business </li></ul></ul></ul><ul><ul><li>Profit Margin Maximization </li></ul></ul><ul><ul><ul><li>Consideration of component scarcity, cost, product price, product demand (probabilistic) to compute component “values” or opportunity costs </li></ul></ul></ul><ul><ul><li>Direct link between product demand planning and product sales </li></ul></ul><ul><ul><ul><li>Excess/Obsolete Inventory Reduction </li></ul></ul></ul>Robb Bush - SXSW Interactive 1999
  11. 11. Key Business Drivers <ul><li>Cost reduction </li></ul><ul><ul><li>Reduce cycle time of quote-to-order and order fulfillment </li></ul></ul><ul><ul><ul><li>Reduce Cost by automating quote-to-order process (task displacement) </li></ul></ul></ul><ul><ul><ul><li>Total integrated ‘quote-to-delivery’ process </li></ul></ul></ul><ul><ul><li>Eliminate the need for your company to ‘manually’ provide configuration, pricing and availability information to individual end customers </li></ul></ul><ul><ul><ul><li>Allow channel partners and end customers to access this information quickly and efficiently </li></ul></ul></ul><ul><ul><li>Efficiently leverage intelligence from entire enterprise </li></ul></ul>Robb Bush - SXSW Interactive 1999
  12. 12. Key Business Drivers <ul><li>Channel Partners Relationships </li></ul><ul><ul><li>Become “easier to do business with” with your channel partners </li></ul></ul><ul><ul><li>Become a more reliable supplier </li></ul></ul><ul><ul><ul><li>Providing better visibility of actual orders (known ETA) --> Price Protection/Customer Service </li></ul></ul></ul><ul><ul><ul><li>Build channel partner confidence </li></ul></ul></ul><ul><ul><li>Better enable Channel CTO/BTO </li></ul></ul><ul><ul><ul><li>Flexible Key Component Availability and Consumption </li></ul></ul></ul><ul><ul><li>Enable second/third tier channel partners </li></ul></ul>Robb Bush - SXSW Interactive 1999
  13. 13. Key Business Drivers <ul><li>Market Responsiveness and Awareness </li></ul><ul><ul><li>Decrease the time it takes to provide information of new products to the market </li></ul></ul><ul><ul><li>Preempt and react immediately to competitor pricing strategies </li></ul></ul><ul><ul><ul><li>Enable more ‘intelligent’ pricing - both ‘execution’ and ‘planning’ level by considering lead-time, manufacturing, delivery and fulfillment flexibility. </li></ul></ul></ul>Robb Bush - SXSW Interactive 1999
  14. 14. Key Business Drivers <ul><li>Implementation </li></ul><ul><ul><li>Speed </li></ul></ul><ul><ul><ul><li>Time to ‘value’ must be short </li></ul></ul></ul><ul><ul><li>Scalability </li></ul></ul><ul><ul><ul><li>Product and Architecture flexibility to scale for a enterprise as business needs and requirements change </li></ul></ul></ul><ul><ul><li>Integration </li></ul></ul><ul><ul><ul><li>With decision support, ERP and other enterprise systems </li></ul></ul></ul><ul><ul><li>Global Support </li></ul></ul><ul><ul><ul><li>Capable of meeting global business requirements </li></ul></ul></ul>Robb Bush - SXSW Interactive 1999
  15. 15. INTEGRATED DEMAND PLANNING & FULFILLMENT Procurement What is Available to Promise? Supplier Collaboration Integrated Business Processes Robb Bush - SXSW Interactive 1999 <ul><li>Accuracy: </li></ul><ul><li>Configuration </li></ul><ul><li>Pricing </li></ul><ul><li>Delivery Date </li></ul><ul><li>Customer Relationship </li></ul><ul><li>Personalization </li></ul><ul><li>Filtering </li></ul><ul><li>Marketing </li></ul><ul><li>Buying Information </li></ul><ul><li>Order Tracking </li></ul><ul><li>Service and Support </li></ul>SUPPLY CHAIN OPTIMIZATION Make Source Deliver Manufacturing and Distribution What is possible and when? Build-To-Order? What to make and when? Extended Supply Chains OEM, Partners and Resellers End customer Customer Internet Interface Commerce Transaction STRATEGIC PLANNING Product Development Decisions What should we make to fulfill demand and is best suited to our ability to deliver. Infrastructure Decisions What Resources are needed, What if’s, Partnerships and Alliances. Technology.
  16. 16. Just Imagine: Tie all of this together? <ul><li>Customer Interaction CRM </li></ul><ul><li>Operational Efficiency SCM&O </li></ul><ul><li>Product Development PLM </li></ul><ul><li>Competitive Advantage enabled by High-Velocity Commerce </li></ul>Robb Bush - SXSW Interactive 1999
  17. 17. What are the opportunities for internet designers and developers? <ul><li>Opportunity, Opportunity, Opportunity </li></ul><ul><li>Accelerate the convergence between Technology, Interaction Design, Business Objectives. Innovation. </li></ul><ul><li>Increased s-c-o-p-e and SCALE. Bigger than can be imagined today. Will make today's commerce sites look like…well… </li></ul><ul><li>Rationalize the new marketing and customer interaction possibilities with new applications and multi-enterprise process integration and optimization. </li></ul>Robb Bush - SXSW Interactive 1999
  18. 18. Conclusion Use your internet applications to: <ul><li>Enhance the way you do business overall. </li></ul><ul><li>Seize new Marketing Opportunities and Build Customer Relationships. </li></ul><ul><li>Improve Operational Efficiency and Velocity. </li></ul><ul><li>Enable Product customization and personalization. </li></ul><ul><li>Increase Customer Service and Responsiveness. </li></ul><ul><li>Tie all of this together for significant competitive advantage. </li></ul>Robb Bush - SXSW Interactive 1999
  19. 19. Robb Bush Head of Marketing Communications & Corporate Creative Director Robb Bush - SXSW Interactive 1999