The Future of Ecommerce - Web 2.0

C o n f i d e n t i a

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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

Elastic Path Research and Consulting

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

http://www.getelastic.com

http://www.elasticpath.com/resources

Elastic Path Research &

Consulting


Consulting

Digital is different. It must be:

Frictionless

Social

Everywhere


Consulting

Frictionless

• Transactions in the context of life

• Only relevant offers


Consulting

Social

• Control of the brand has shifted to the crowd

• Anyone can be a merchant, author, reviewer, developer,

reporter, editor, publisher


Consulting

Social

• Control of the brand has shifted to the crowd

• Anyone can be a merchant, author, reviewer, developer,

reporter, editor, publisher


Consulting

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


Consulting

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


Consulting

2010

2011

$0

$20

$40

$60

$80

$100

Mill

ion

s For many, this is an existential challenge

February sales of e-books tripled y/y CAGR forecast = 72%

Traditional down 34%


Consulting

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


Consulting

Google Catalogs kills ecommerce as we know it


Consulting

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


Consulting

A digital product is different. It can be:

• Time-based

• Copied

• Used simultaneously

• Dis-aggregated

• Bundled

• Consumed in bites

• Subscribed


Consulting

Traditional Retail Hard-goods Relationship

wait

Order

Ship


Consulting

New Era of Digital Relationship

Requires Digital Relationship Management for a perpetual interactive relationship

now

download read

watch

experience

socialize

try

contribute

view sample

explore

play

query renew

extend offer upgrade learn

continue


Consulting

What good is a

“Stock Keeping Unit”

when you are delivering a copy of a file?

really selling “Entitlements”


Consulting

Long Tail v. Paradox of Choice

Offer management Product Discovery


Consulting

Commerce Software

Vendor Ecosystem

Sterling Yantra

Order Motion

Manhattan Associates

Oracle

customer-facing

enterprise-facing

Escalate Retail (Blue Martini)

Oracle ATG Commerce

IBM Websphere Commerce

Sterling Comergent Microsoft Commerce Elastic

Path SAP

eCommerce

Demandware

GSI Commerce

MarketLive

Venda

Endeca IBM

iPhrase

Microsoft Fast

Omniture SiteSearch

(fka Mercado)

Progress EasyAsk

Attivio

Choicestream

ATG Recommendation

s

IBM Coremetrics Intelligent Offer

Certona

Aggregate Knowledge

Baynote

Adobe Omniture Touch Clarity

IBM Coremetrics

Adobe Omniture Site Catalyst

Test & Target Webtrends

Google

BazaarVoice

PowerReviews

Pluck

Jive

KickApps

ONEsite

Adobe Scene 7

Liquid Pixels

Allurent Adobe Flash, Flex

ChannelAdvisor RichFX

Adobe Dreamweaver

Microsoft FrontPage

Click2Talk

ATG eStara

VoiceStar

LivePerson

RightNow

eGain

Talisma

Kana Talisma

Interwoven Vignette Experian

CheetahMail

Responsys

Exact Target

YesMail Silverpop

Infor epiphany

Eloqua

Autonomy

Interwoven Optimost

Escalate Retail

Microsoft

Oracle Siebel

PeopleSoft JD Edwards

SAP Financials

Oracle Escalate Retail SAP

Oracle Siebel SAP

Salesforce.com

RightNow

Google Checkout

PayPal

Verisign

Cybersource

BillMeLater

Oracle

NCR

IBM Unica

Aprimo

Paym

en

t / Tax / Frau

d Scre

en

ing

iCrossing

ClickForensics

Oracle Retail

IBM Cognos SAS

Forsee Results

Gomez

iPerceptions

Application Server

Database

IBM Websphere

Oracle WebLogic

Redhat JBoss

Microsoft .NET SAP

Netweaver

Sun Java System

IBM DB2

Oracle Microsoft SQL Server

Chase Paymentech

ADP Taxware

Oracle SES Oracle

RTD

Rich Relevance

Communispace

Lithium

Leverage

Inquira

Salesforce

Oracle

Oracle

Keynote

* SaaS defined by subscription pricing, not just hosting

Oracle

representative subset of vendors

Vertex

Oracle

Oracle

Oracle

Litle

Oracle

Oracle

Oracle

Alfresco

Red Hat


Consulting

The Integration Challenge


Consulting

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


Consulting

You don’t know what you’re doing.

And neither do your IT experts.


Consulting

Higher level of departure allows innovation, differentiation

Tomorrow

2010

2000

1990

1980

1970

1960

operating system

database

ERP

app server

retail commerce platform

elastic commerce platform

Elastic Path Research and Consulting

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

C o n f i d e n t i a

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P r o p r i e t a r y

Questions

For more on-demand digital commerce resources

www.elasticpath.com/resources

[email protected]

1.800.942.5282 (toll-free in North America)

www.elasticpath.com

http://www.elasticpath.com/resources