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Community This is ECommerce!!! 10 emerce ECommerce Growth By Segment (United States) Source: IDC。 bc ECommerce Knowledge Sharing August 1999, Bain Beijing Office 1 emerce ? Inter Development ? ECommerce Introduction ? Business Impact ? Impediments for ECommerce ? Bain eConsulting Experience Agenda 2 emerce R adi oTVC abl eW W W 1 92 2 1 92 6 1 93 0 1 93 4 1 93 8 1 94 2 1 94 6 1 95 0 1 95 4 1 95 8 1 96 2 1 96 6 1 97 0 1 97 4 1 97 8 1 98 2 1 98 6 1 99 0 1 99 4 1 99 8025507510 012 5Millions of UsersUser adoption of the World Wide Web has dramatically outpaced the growth of other munications media, setting the stage for revolutionary changes. . Inter Adoption 3 emerce M o b il e P h o n eF ix e d P h o n eC ab leW W W 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999020406080100Millions of UsersUser adoption of the World Wide Web has dramatically outpaced the growth of other munications media, setting the stage for revolutionary changes. . Inter Adoption 4 emerce Inter User Growth *Rest of world includes all . countries in 199697 and 19992023 Source: Computer Industry Almanac。 Inter Industry Almanac。 Jupiter。 Analyst Reports。 eMarketer 18 %19 %47 %58 %92 %Ap pli cati onsInt e r m e d ia rie sEna blersInfr astructu reAcc essAp pli cati onsInt e r m e d ia rie sEna blersI nf r as t r uc t ur eAcc ess1 998 20 03E$1 81B $1, 8 80B0%20 %40 %60 %80 %100 %C A G R( 1 9 9 8 2 0 0 3 E )PRELIMINARY However, the vast majority of growth will be driven by applications. 11 emerce Segment Comparison B u s i ne s s toB us in e s sB us in e s sto Co nsu m erT op 200Si tesUniqu eVisito rsPage View s200 593M 6,387M0%20%40%60%80%100%Inter traffic drives the perception that ECommerce is a consumer phenomenon, but the larger revenue opportunities lie in business to business merce. Percent of Total Busi nes stoBusi nes sBusi nes stoConsumer1998 2023E$51B $1,336B0%20%40%60%80%100%Percent of Total CAGR (199803E) % % Inter Traffic ECommerce Revenue 12 emerce Web Business Models Trading Buying Selling Using the New Medium Creating the New Medium Context Connection Content Community Commerce Web business models can be sorted according to the benefit they are delivering the user. User Benefit: Current revenue sources: ? Connection to the Inter ? Finding what you want on the web ? User fees ? Phone pany kickbacks ? Hosting charges ? Advertising ? Hosting ? List rental ? Comarketing Current Major Players: ? AOL ? UUNet ? Work ? Home ? AOL ? Yahoo ? Netscape ? Excite ? Information, entertainment, etc. ? Interaction with others sharing same interest ? Easier access to things people want to buy ? Access to buyers and easier selling relations ? Marketplace to buy and sell with other visitors ? Advertising ? User fees ? Advertising ? Sales ? Buying advantage ? Commissions ? AOL ? OneSource ? CNN ? BBC ? AOL ? Yahoo ? Chemdex ? VerticalNet ? ? Cisco ? Dell ? Sc