贝恩咨询-行业分析-互联网影响-PointofView.ppt

Authors Reviewers bc PointofView Created June1999 HeidiLockeSimonLangstonJonesJeffreyKuo DavidSandersonEmmaGrayAaronCheris 2 PointofView WhatimpactistheInternethaving HowwilltheInternetaffectmybusiness Whatshouldwebedoingtorespond Whatarethekeystosuccess Executivesacrosstheboardareposingfourfundamentalquestions Overview Bain sPointofView 3 PointofView Agenda InternetImpactDetailBusinessImpactDetailResponseAlternativesKeySuccessFactors 4 PointofView TheInternetisamajordiscontinuitythatwillredefinethestrategiclandscapeineveryindustry Theseresultindramaticchangesacrosscompanyrelationshipswithcustomers suppliers employeesandotherstakeholders RedefinitionofentireuserexperienceNewchanneltocapturegrowthopportunitiesElectronicmanagementofupstreamsupplychainrelationshipsTightlinkageofend userdemandtocompanyoperationsRedeploymentofphysicalandhumanresourcestofacilitatedramaticproductivityimprovement Overview 1of2 InternetImpactDetail 5 PointofView TheInternetisamajordiscontinuity TheInternetisadynamicmedium andfurthersignificantshiftshaveyettoplayout DramaticallyenhancednetworkperformanceHighspeedaccesswidelyavailableNewdemographicwavesNewspecialized non PC accessdevicesandnewaccessbusinessmodelsValueaddedreintermediationIntegrationofphysicalandelectronicparticipation Overview 2of2 InternetImpactDetail 6 PointofView TheInternetwillredefinethestrategiclandscapeineveryindustry Productcustomization qualityGeographicproximity MechanicalinnovationTransportationinfrastructure ScaleeconomiesMassmarketing UbiquitousreachtoallstakeholdersDramaticallylowercostinteractionsComplete symmetric free information Wellordered multi tiereddistributionEfficient optimizedphysicaltouchrelationships TrulyuniqueuserexperiencedeepercustomerrelationshipsbroaderreachCompleterestructuringofindustrysupplychainsLowercostandenhancedproductivity CraftBasedEconomy IndustrialRevolution MassProduction Internet InformationRevolution Suppliers DIstrIbutors Manufacturing Resellers Customers InternetRevolution InternetImpactDetail 7 PointofView InternetCharacteristics Definingcharacteristicsofthisnewcommunicationsmediumareredefiningallcompanies stakeholderinteractions ExampleImplications DramaticallyLowerCostInteraction KeyCharacteristics Anyone anytime anywhereinteraction Substituteshighcosthumanforlowcostelectronicinteraction Frictionlessinformationexchange UniversalaccessLowcost highbandwidthinfrastructure Powershiftstobuyersthroughpricing inventoryandotherinformationvisibilityTargetedsegmentationenables customer levelcustomizationandprofitmeasurement InternetGlobalCommunicationsMedium Complete Symmetrical Free InformationAvailability Reducesnumberof touches ineachinteractionEliminatesindustryandorganizationallayers Providesaccesstonewcustomersegments broadersupplierbaseandincreasedpoolofemployeesCreatesfoundationforstrengtheningrelationshipsandimprovingeffectivenesswithcustomers suppliersandemployees UbiquitousReach InternetImpactDetail 8 PointofView ImpactOverview SupplyChainIntegration RedeploymentofphysicalandhumanresourcestofacilitatedramaticproductivityimprovementsbetterstakeholdercommunicationknowledgesharingandcollaborativeworkenvironmentsleverageofITinvestmentsenhancedaccesstoemployees outsourcing ElectronicmanagementofupstreamsupplychainrelationshipsvendorselectionandnegotiationbillingandpaymentinformationexchangeTightlinkageofend userdemandtoinventory R D andmanufacturing Redefinitionofentirecustomerexperiencecomplete frictionlessinformationexchangedifferentiatedexperienceusercontrolledfulfillmenttrackingtargetedloyaltyprogramsNewchanneltocapturegrowthopportunitiesincreasedcustomeraccessaccesstoproductadjacencies crosssellingintegrationwithphysicalworld Theseresultindramaticchangesacrosscompanyrelationshipswithcustomers suppliers employeesandotherstakeholders CustomerRelationshipManagement InternalBusinessManagement InternetImpactDetail 9 PointofView CustomerRelationshipManagement CRM Evolution Description Multi tiereddistributionmodelMassmarketingLimitedinventoryFewvalue addedservices TraditionalModel E CommerceModel StreamlineddistributionmodelTargetedmarketingScaleinventoryandselectionRobustrangeofvalue addedservices Producer Example Bricksandmortar bookstore A Distributor Retailer Consumer Producer Producer Producer Community Retailer Value AddedServices Consumer E Tailer InternetImpactDetail 10 PointofView CRM Benefits AisacompellingexampleofanE Commercecustomerrelationshipmodel Efficientpurchaseprocessquicklog insearchbytitle subject authorreadreviews recommendationsone clickorderingreceivebooksbymailSuperiorselectionandavailabilityAdjacentproductofferingse g music video othersValue addedservicesreviewsproactive tailoredrecommendations BenefitstoCustomers BenefitstoFirm SubstantiallylowercostsinfrastructureinventorypersonnelDeepcustomerrelationshipone to onemarketingpotentialforhigherloyaltypurchasesacrossotherproductlinesmorefrequentpurchasesBroadercustomerbasegeographicreachexpandedpoolofprofitablecustomers InternetImpactDetail 11 PointofView SupplyChainIntegrationBusinessModels SCI 1of2 Threeprimarymodels IndustryConsortia VirtualCommunities CompanyExtranets Note TPNhastwosub networksTPNPostandTPNRegister InternetImpactDetail 12 PointofView SCIBusinessModels 2of2 CompanyExamples IndustryConsortia VirtualCommunities CompanyExtranets FastPartsMetalSitePlasticNetVerticalNetTPN ANXVIPARTPN BoeingCiscoCSXDell Note TPNhastwosub networksTPNPostandTPNRegister KeySuccessFactors Infrastructuretofacilitatetransactions Structurethatallowsflexibilityinnegotiationanddecisionmaking Abilitytocost timeeffectivelylinkextranettointernallegacysystems Dreyer sGrandIceCreamPitneyBowes InternetImpactDetail 13 PointofView SCIEvolution Description Multiplebuyer sellerinterfacesinbiddingprocessIndividualcompanyscaleinbuying sellingCatalog basedselectionandpurchasingoutdatedinventorylistingsmanualprocess TraditionalModel SinglebiddinginterfaceScalebenefitssharedacrossparticipantsVirtualmarketplaceconnectingsuppliersandcustomersUp to dateonlineinventorylistingsOnlineorder takingprocess Examples Traditionalindustrialmodel GETPNChemdex E CommerceModel InternetImpactDetail 14 PointofView SCIBenefits ChemdexisapowerfulexampleofanE Commercecustomerrelationshipmodel LowercostsmarketingleveragemarketingthroughChemdexpresencedistributioncatalogsoverallcostreducedby15 ofrevenueIncreasedsalesdecreasebuyertransactioncostswillincreasedemand BenefitstoSuppliers BenefitstoCustomers Increasedconvenienceduetoonlineproductinventorymoreaccurate updateddaily consolidated 130suppliersparticipating space saving freesupshelfspaceincustomers offices comprehensive fivetimesmoreproductsthanbiggestpapercatalog Lowercostsmoreefficientordering purchasingprocesstransactioncostreducedfrom 100to 10or 20 InternetImpactDetail 15 PointofView SCIEvolution CompanyExtranets Description Multi tiereddistributionmodelMultiplepurchaseordertriggersBlockordering manual Limiteddatasharing TraditionalModel E CommerceModel Integratedpurchasing ProductionModelSinglepurchaseordertriggerAutomaticjust in timeorderingDetailedDataSharing Example TraditionalFoodManufacturer Dreyer sGrandIceCream Purchase P O P O P O P O P O InternetImpactDetail 16 PointofView SCI CompanyExtranet Efficientprocurementprocessautomaticallyupdated linkedtosalesincreasedforecastaccuracylowercostprocurementdecreasedriskofstockoutReducedinventorylevelsReducedcycletimes BenefitstoProducer Retailer BenefitstoSupplier Improvedassetutilizationforecastaccuracy productionplanningReducedinventorylevelsLowersalescostAbilitytocreatestrongercustomerrelationshipwithproducerdatasharingordertakingislower ofsalestime InternetImpactDetail 17 PointofView SCIEvolution TraditionalApproach E CommerceSCIApproach Note Supplier Distributor WholesalerandProducer Heldatmultipletiers basedonorganizational legalandownershipconsiderations Stockisheldatthefewesttierswithpartsgoingdirectlyfromsuppliertoproduceronanasneededbasis Manualbatchorders drivensequentiallybytransfersfromonetiertoanother Replenishmentacrossalltiersdrivenbyactualsales usagedatacollectedatthecustomerinterface Plannedbydiscreteorganizationalunitswithbatchfeedsbetweendiscretesystems Plannedacrossfunctionalandorganizationalboundariesfromsuppliertovendortoconsumerthroughhighlyintegratedsystems withminimumleadtimes Bulkofinventoryisfinishedgoods dispersedgeographicallywaitingtobesold Loweroverallinventorylevels Bulkofinventoryheldas workinprogress awaitingbuild configurationinstructions InternetImpactDetail 18 PointofView InternalBusinessManagementEvolution IBM Description Hierarchical functionally orientedcommunicationbarrierstosharinginformationcross functionallyslowtoshareinformationverticallyMultiplesystemsthroughoutorganizationredundantincompatibleLinearcross functionalworkprocessesseriallyprocessedmultiplehandoffsiterative TraditionalModel E CommerceModel Fully networked flatinformationexchangeFullycompatibleinformationsystemsUniversalaccesstoinformationCollaborativeworkenvironment InternetImpactDetail 19 PointofView IBMBenefits StreamlinedprocesseslowercostfastercycletimesLower costinteractionsinformationexchangecollaborationLeverageduseofresourceshumanresourcesequipmentFacilitatedimplementationofglobalstrategiescoordinatedconsistentconcurrentImprovedcreationanddistributionofnewapplicationsfasteasycost effective BenefitstoFirm InternetImpactDetail 20 PointofView InternetTrends Faster DramaticallyEnhancedNetworkPerformance DemographicWaves Broader Customization Deeper Integration Cross Medium Internetuserbasebecomesmorereflectiveofoverallpopulationindividualsbusinesses Technologicalinnovationsmakehighspeedaccesswidelyavailable NewspecializedaccessdevicesoptimizedforapplicationsValue addedreintermediation On lineandphysicaleffortsbecomeintegrated TheInternetisadynamicmedium andfurthersignificantshiftshaveyettoplayout InternetImpactDetail 21 PointofView TrendImplications 1of3 Thesetrendsimpacteachrealmdifferently CustomerRelationshipManagement InternetImpactDetail 22 PointofView TrendImplications 2of3 SupplyChainIntegration InternetImpactDetail 23 PointofView TrendImplications 3of3 InternalBusinessManagement InternetImpactDetail 24 PointofView MarketValuation 1of2 Note InternetcompaniesincludeAOL Yahoo EBay Amazon E trade Lycos Excite Home CNET Priceline Geocities BandInfoseek Marketcapitalizationsareasof5 6 99 MarketcaptakentobeaproxyforMVAforInternetstocksSource SternStewartPerformance1 000 YahooFinance Companyreports BainAnalysis Overthepastthreeyears asmallgroupofInternetcompanieshavecreatedmorevaluethananyotherindustryachievedin10years InternetImpactDetail 25 PointofView MarketValuation 2of2 Note InternetcompaniesincludeAOL Yahoo EBay Amazon E trade Lycos Excite Home CNET Priceline Geocities BandInfoseek Marketcapitalizationsareasof5 6 99 MarketcaptakentobeaproxyforMVAforInternetstocksSource SternStewartPerformance1 000 YahooFinance Companyreports BainAnalysis InternetImpactDetail 26 PointofView Agenda InternetImpactDetailBusinessImpactDetailResponseAlternativesKeySuccessFactors 27 PointofView Overview Allbusinesswillbeimpacted ThetimingandmagnitudeoftheoverallimpactwillvarybyindustryTherearesignificantpotentialthreatsaswellasopportunitiesPotentialimpactcanbeunderstoodandproactivelyaddressedProfitpoolshiftsandcommensuratemarketvaluescouldbesignificantlyimpactedUltimately thecompetitivelandscapecouldbedramaticallydifferentfromtoday BusinessImpactDetail 28 PointofView EvolutionFramework High Low Transformation Phases Time MagnitudeOfImpact Extension Experimentation Participation CRM SCI IBM StakeholderImpacts High Med Low CustomerRelationshipManagement SupplyChainIntegration InternalBusinessMangement BusinessImpactDetail 29 PointofView PhaseIParticipation PhaseIIExperimentation PhaseIIIExtension PhaseIVTransformation EstablishWebPresence Internet EnableTraditionalFunctions LeverageElectronicPlatformToBuildNewCapabilities IntegratedTransformation VeryfewcompanieshaveyetdevelopedaplantotakeadvantageofthetransformationalopportunitiestheInternetenables E CommerceTransition BusinessImpactDetail 30 PointofView E CommerceTransition 1of4 BusinessImpactDetail 31 PointofView CRM DevelopelectronicorderingcapabilitiesEstablishInternet basedcustomerserviceaccountinformationbilling payment Internet EnableTraditionalFunctions IBM UploadkeyfunctionsontotheInternethumanresourcesadmin SCI ExchangepricingdataelectronicallywithsuppliersMakeinventorylevelsvisible DeploymentExamples Impact Industryleaderstakingmarketshare E CommerceTransition 2of4 BusinessImpactDetail 32 PointofView E CommerceTransition 3of4 BusinessImpactDetail 33 PointofView E CommerceTransition 4of4 BusinessImpactDetail 34 PointofView BusinessChangesImpactFramework Suppliers Customers InternalOperations InternalBusiness 2 1 3 BusinessDefinition 4 InternalOperations BusinessImpactDetail 35 PointofView BusinessChanges ThreatsandOpportunities 1of2 Threats Opportunities 2 SupplyChainManagement ReintermediationbypowerfulelectronicmiddlemenseizingcustomercontrolLegacysystem implementationbarriersenablecompetitorstoobtainlowercostposition End to endintegrationofoperationsfromcustomerdemandthroughsupplierproductionfastertimetomarketlowerinventorycostDeepenrelationshipwithstrategicsuppliersand orincreasesupplierbasebreadthtolowerprocurementcosts 1 CustomerRelationshipManagement Significantvolumes mostvaluablecustomersshiftpurchasestonewInternetcompetitorsCommoditizationpressureasbuyershaveaccesstogreaterinformationandbroadercompetitorset AbilitytocreateuniquecustomerexperiencethatcannotbereplicatedinphysicalworldNewchanneltocapturegrowthincreasedcustomerbaseproductofferingexpansion BusinessImpactDetail 36 PointofView BusinessChanges ThreatsandOpportunities 2of2 Threats Opportunities 3 InternalBusinessManagement MosttalentedemployeesleavetojoinInternetstart upsSignificanttechnologyinvestmenthaslowyield DramaticproductivityimprovementsthroughbettercommunicationandknowledgecaptureanddisseminationOpportunitytooutsourcenon corefunctions 4 BusinessParticipation RedefinitionofbusinessboundariesunderminescompetitivepositionNewagilecompetitorsfundedwithmuchlowercostofcapital Createspotentialnewbusinessparticipationoptionsthroughleverageofassets capabilitiesOpportunitytoleapfrog repositionversustraditionalcompetitors BusinessImpactDetail 37 PointofView ImpactAssessmentFramework CRM Adetailedevaluationofunderlyingcharacteristicsneedstobeperformedforeachindustry segment LowerpriceBetter unique productselectionandinformationImprovedresponsespeed accessLowertransactionexperiencecostGreatercommunityvalue GlobalreachexpandsmarketsizeHigh enough customermargins lifetimevalueAbilitytocross marketwithphysicalworldtoleveragecollectionofuniquecustomerdataLowcustomerservicecostsImproveddistributionandinventorycostsIncreasedassetutilization DegreeofproductstandardizationEasyonlinesubstitutionforphysicalworld e g PhysicalShoppingexperience notimportantpartofsalesprocess Productvaluecommensuratewithdistributioncost AttractiveEconomics Product ServiceConducivetoOnlineSale Unique SuperiorCustomerValueProposition StructuralBarriersSurmountable DistributioninfrastructureProprietaryrelationships suppliers funding affiliates etc Regulatory legal taxissuesReasonablecost timingtoconvertlegacysystemsordevelopnewsystems BusinessImpactDetail 38 PointofView InternetPenetrationPotential BusinesstoConsumer Source IndustryandTradeOutlook StatisticalAbstractoftheUnitedStates SBainAnalysis ThesecriteriademonstratewhyBooksandPCSoftwarehavehadearlypenetrationinbusinesstoconsumermarkets ProductConducivetoInternet High Low Low High Medium Term Short term Medium Term Long term BusinessImpactDetail 39 PointofView InternetPenetrationPotential BusinesstoBusiness Source Forrester BainAnalysis Computing ElectronicsandUtilitiesaretheindustriesthataremostlikelytoseesignificantInternetpenetrationinthebusinesstobusinesssector High Low Low High ProductConducivetoInternet Medium Term Short term Medium Term Long term BusinessImpactDetail 40 PointofView ImpactAssessmentFramework SCI Underlyingcharacteristicsshouldbeevaluated indetail toassessapplicabilityandpotentialvalueofSupplyChainIntegrationinvariousindustries segments Product ServiceConducivenesstoOnlineSale StructuralBarriersSurmountable AttractiveEconomics OperationalImprovements Channelconflict distributioninfrastructureProprietaryrelationships suppliers funding affiliates etc Regulatory Legal TaxissuesCost TimingtoconvertlegacysystemsordevelopnewsystemsAbilitytocircumventinternalpurchase approvalprocess Degreeofstandardization commoditizationAbilitytodeliverproductelectronically e g Software Frequencyofpurchase replenishmentProductvalue bulkratioNeedforfrequentcatalogupdates TighterintegrationofoperationreducedcycletimeseliminationofredundantactivitiesincreaseddatasharingOpportunitytoeliminatelayersofmulti layersupplychainAbilitytoaggregatepurchaseswithotherbuyers ReducedinventorylevelsLowerpurchasingcostsInternal laborcosts materials etc External increasedpricecompetitiondrivenbyexpandedsupplierbase Increasedassetutilization BusinessImpactDetail 41 PointofView ImpactAssessmentFramework IBM Adetailedevaluationofunderlyingcharacteristicsneedstobeperformedforeachindustry segment InternalinfrastructureReasonablecost timingtoconvertlegacysystemsordevelopnewsystems Valueofknowledge sharingcycletimereductionproductcostreductionproductimprovement design quality Highcurrentinternaltransactioncosts e g purchasingprocess LongcycletimesAbilitytooutsourcenon corefunctionsandlinkthemelectronically HighlevelofcentralizationHighlycollaborativeprocessesDistributedorremotefacilitiesNeedtoshiftresourcesquicklyandfrequently PotentialStrategicImpactofIntegrationonCoreBusinesses PotentialforProductivityGains InternalOrganization ProcessesConducivetoOn LineActivity StucturalBarriersSurmountable BusinessImpactDetail 42 PointofView Agenda InternetImpactDetailBusinessImpactDetailResponseAlternativesKeySuccessFactors 43 PointofView TypicalCompanyContext MostCEOsaregrapplingwithhowtorespondtonumerous disjointeddecisionsrelat