贝恩-行业分析方法-行业分析-互联网影响-pointofview018

Authors:,Reviewers:,bc,Point of View,Created: June 1999,Heidi Locke SimonLangston JonesJeffrey Kuo,David SandersonEmma GrayAaron Cheris,2,PointofView,What impact is the Internet having?How will the Internet affect my business?What should we be doing to respond?What are the keys to success?,Executives across the board are posing four fundamental questions:,Overview,Bains Point of View,3,PointofView,Agenda,Internet Impact DetailBusiness Impact DetailResponse AlternativesKey Success Factors,4,PointofView,The Internet is a major discontinuity that will redefine the strategic landscape in every industry.,These result in dramatic changes across company relationships with customers, suppliers, employees and other stakeholders,Redefinition of entire user experienceNew channel to capture growth opportunitiesElectronic management of upstream supply chain relationshipsTight linkage of end-user demand to company operationsRedeployment of physical and human resources to facilitate dramatic productivity improvement,Overview (1 of 2),Internet Impact Detail,5,PointofView,The Internet is a major discontinuity.,The Internet is a dynamic medium, and further significant shifts have yet to play out,Dramatically enhanced network performanceHigh speed access widely availableNew demographic wavesNew specialized (non-PC) access devices and new access business modelsValue added reintermediationIntegration of physical and electronic participation,Overview (2 of 2),Internet Impact Detail,6,PointofView,The Internet will redefine the strategic landscape in every industry.,Product customization/qualityGeographic proximity,Mechanical innovationTransportation infrastructure,Scale economiesMass marketing,Ubiquitous reach to all stakeholdersDramatically lower cost interactionsComplete, symmetric, “free” information,Well ordered, multi-tiered distributionEfficient, optimized physical touch relationships,Truly unique user experiencedeeper customer relationshipsbroader reachComplete restructuring of industry supply chainsLower cost and enhanced productivity,Craft Based Economy,Industrial Revolution,Mass Production,Internet / Information Revolution,Suppliers,DIstrIbutors,Manufacturing,Resellers,Customers,Internet Revolution,Internet Impact Detail,7,PointofView,Internet Characteristics,Defining characteristics of this new communications medium are redefining all companies stakeholder interactions.,Example Implications:,DramaticallyLower Cost Interaction,Key Characteristics:,Anyone, anytime, anywhere interaction,Substitutes high cost human for low cost electronic interaction,Frictionless information exchange,Universal accessLow cost/high bandwidth infrastructure,Power shifts to buyers through pricing, inventory and other information visibilityTargeted segmentation enables “customer” level customization and profit measurement,Internet Global Communications Medium,Complete, Symmetrical, “Free” Information Availability,Reduces number of “touches” in each interactionEliminates industry and organizational layers,Provides access to new customer segments, broader supplier base and increased pool of employeesCreates foundation for strengthening relationships and improving effectiveness with customers, suppliers and employees,Ubiquitous Reach,Internet Impact Detail,8,PointofView,Impact Overview,Supply Chain Integration,Redeployment of physical and human resources to facilitate dramatic productivity improvementsbetter stakeholder communicationknowledge sharing and collaborative work environmentsleverage of IT investmentsenhanced access to employees/outsourcing,Electronic management of upstream supply chain relationshipsvendor selection and negotiationbilling and paymentinformation exchangeTight linkage of end-user demand to inventory, R&D, and manufacturing,Redefinition of entire customer experiencecomplete, frictionless information exchangedifferentiated experienceuser controlled fulfillment trackingtargeted loyalty programsNew channel to capture growth opportunitiesincreased customer accessaccess to product adjacencies/cross sellingintegration with physical world,These result in dramatic changes across company relationships with customers, suppliers, employees and other stakeholders.,Customer Relationship Management,Internal Business Management,Internet Impact Detail,9,PointofView,Customer Relationship Management (CRM) Evolution,Description:,Multi-tiered distribution modelMass marketingLimited inventoryFew value-added services,Traditional Model,E-Commerce Model,Streamlined distribution modelTargeted marketingScale inventory and selectionRobust range of value-added services,Producer,Example:,“Bricks and mortar” bookstore,A,Distributor,Retailer,Consumer,Producer,Producer,Producer,Community,Retailer,Value-Added Services,Consumer,E-Tailer,Internet Impact Detail,10,PointofView,(CRM) Benefits,A is a compelling example of an E-Commerce customer relationship model.,Efficient purchase processquick log-insearch by title, subject, authorread reviews, recommendationsone-click orderingreceive books by mailSuperior selection and availabilityAdjacent product offeringse.g., music, video, othersValue-added servicesreviewsproactive, tailored recommendations,Benefits to Customers,Benefits to Firm,Substantially lower costsinfrastructureinventorypersonnelDeep customer relationshipone-to-one marketingpotential for higher loyaltypurchases across other product linesmore frequent purchasesBroader customer basegeographic reachexpanded pool of profitable customers,Internet Impact Detail,11,PointofView,Supply Chain Integration Business Models (SCI) (1 of 2),Three primary models . . .,Industry Consortia,Virtual Communities,Company Extranets,Note: *TPN has two sub-networks TPN Post and TPN Register,Internet Impact Detail,12,PointofView,SCI Business Models (2 of 2),Company Examples:,Industry Consortia,Virtual Communities,Company Extranets,Fast PartsMetal SitePlasticNetVerticalNetTPN*,ANXVIPARTPN*,Boeing CiscoCSXDell,Note: *TPN has two sub-networks TPN Post and TPN Register,Key Success Factors:,Infrastructure to facilitate transactions,Structure that allows flexibility in negotiation and decision making,Ability to cost/time effectively link extranet to internal legacy systems,Dreyers Grand Ice CreamPitney Bowes,Internet Impact Detail,13,PointofView,SCI Evolution,Description:,Multiple buyer-seller interfaces in bidding processIndividual company scale in buying/sellingCatalog-based selection and purchasingoutdated inventory listingsmanual process,Traditional Model,Single bidding interfaceScale benefits shared across participantsVirtual marketplace connecting suppliers and customersUp-to-date online inventory listingsOnline order-taking process,Examples:,Traditional industrial model,GE TPN Chemdex,E-Commerce Model,Internet Impact Detail,14,PointofView,SCI Benefits,Chemdex is a powerful example of an E-Commerce customer relationship model.,Lower costsmarketing leverage marketing through Chemdex presencedistributioncatalogsoverall cost reduced by 15% of revenueIncreased salesdecrease buyer transaction costs will increase demand,Benefits to Suppliers,Benefits to Customers,Increased convenience due to online product inventorymore accurate (updated daily)consolidated (130 suppliers participating)space-saving (frees up shelf space in customers offices)comprehensive (five times more products than biggest paper catalog)Lower costsmore efficient ordering/purchasing processtransaction cost reduced from $100 to $10 or $20,Internet Impact Detail,15,PointofView,SCI Evolution (Company Extranets),Description:,Multi-tiered distribution modelMultiple purchase order triggersBlock ordering (manual)Limited data sharing,Traditional Model,E-Commerce Model,Integrated purchasing/Production ModelSingle purchase order triggerAutomatic just-in-time orderingDetailed Data Sharing,Example:,Traditional Food Manufacturer,Dreyers Grand Ice Cream,Purchase,P.O.,P.O.,P.O.,P.O.,P.O.,Internet Impact Detail,16,PointofView,SCI (Company Extranet),Efficient procurement processautomatically updated/linked to salesincreased forecast accuracylower cost procurementdecreased risk of stockoutReduced inventory levelsReduced cycle times,Benefits to Producer/Retailer,Benefits to Supplier,Improved asset utilizationforecast accuracy/production planningReduced inventory levelsLower sales costAbility to create stronger customer relationship with producerdata sharingorder taking is lower % of sales time,Internet Impact Detail,17,PointofView,SCI Evolution,Traditional Approach:,E-Commerce SCI Approach:,Note: *Supplier, Distributor/Wholesaler and Producer,Held at multiple tiers*, based on organizational, legal and ownership considerations,Stock is held at the fewest tiers with parts going directly from supplier to producer on an as needed basis,Manual batch orders, driven sequentially by transfers from one tier to another,Replenishment across all tiers driven by actual sales/usage data collected at the customer interface,Planned by discrete organizational units with batch feeds between discrete systems,Planned across functional and organizational boundaries from supplier to vendor to consumer through highly integrated systems, with minimum lead times,Bulk of inventory is finished goods, dispersed geographically waiting to be sold,Lower overall inventory levels. Bulk of inventory held as work in progress awaiting build/configuration instructions,Internet Impact Detail,18,PointofView,Internal Business Management Evolution (IBM),Description:,Hierarchical, functionally-oriented communicationbarriers to sharing information cross-functionallyslow to share information verticallyMultiple systems throughout organizationredundantincompatibleLinear cross-functional work processesserially processedmultiple handoffsiterative,Traditional Model,E-Commerce Model,Fully-networked, flat information exchangeFully compatible information systemsUniversal access to informationCollaborative work environment,Internet Impact Detail,19,PointofView,IBM Benefits,Streamlined processeslower costfaster cycle timesLower-cost interactionsinformation exchangecollaborationLeveraged use of resourceshuman resourcesequipmentFacilitated implementation of global strategiescoordinatedconsistentconcurrentImproved creation and distribution of new applicationsfasteasycost-effective,Benefits to Firm,Internet Impact Detail,20,PointofView,Internet Trends,Faster,Dramatically Enhanced Network Performance,Demographic Waves,Broader,Customization,Deeper,Integration,Cross-Medium,Internet user base becomes more reflective of overall populationindividualsbusinesses,Technological innovations make high speed access widely available,New specialized access devices optimized for applicationsValue-added reintermediation,On-line and physical efforts become integrated,The Internet is a dynamic medium, and further significant shifts have yet to play out.,Internet Impact Detail,21,PointofView,Trend Implications(1 of 3),These trends impact each realm differently.,Customer Relationship Management,Internet Impact Detail,22,PointofView,Trend Implications (2 of 3),Supply Chain Integration,Internet Impact Detail,23,PointofView,Trend Implications (3 of 3),Internal Business Management,Internet Impact Detail,24,PointofView,Market Valuation (1 of 2),Note: Internet companies include AOL, Yahoo, EBay, Amazon, E-trade, Lycos, Excite, Home, CNET, Priceline, Geocities, B and Infoseek; Market capitalizations are as of 5/6/99; Market cap taken to be a proxy for MVA for Internet stocksSource: Stern Stewart Performance 1,000; Yahoo Finance!; Company reports; Bain Analysis,Over the past three years, a small group of Internet companies have created more value than any other industry achieved in 10 years.,Internet Impact Detail,25,PointofView,Market Valuation (2 of 2),Note: Internet companies include AOL, Yahoo, EBay, Amazon, E-trade, Lycos, Excite, Home, CNET, Priceline, Geocities, B and Infoseek; Market capitalizations are as of 5/6/99; Market cap taken to be a proxy for MVA for Internet stocksSource: Stern Stewart Performance 1,000; Yahoo Finance!; Company reports; Bain Analysis,Internet Impact Detail,26,PointofView,Agenda,Internet Impact DetailBusiness Impact DetailResponse AlternativesKey Success Factors,27,PointofView,Overview,All business will be impacted.,The timing and magnitude of the overall impact will vary by industryThere are significant potential threats as well as opportunitiesPotential impact can be understood and proactively addressedProfit pool shifts and commensurate market values could be significantly impactedUltimately, the competitive landscape could be dramatically different from today,Business Impact Detail,28,PointofView,Evolution Framework,High,Low,Transformation,Phases (Time),Magnitude Of Impact,Extension,Experimentation,Participation,CRM,SCI,IBM,Stakeholder Impacts,High,Med,Low,Customer Relationship Management,Supply Chain Integration,Internal Business Mangement,Business Impact Detail,29,PointofView,Phase IParticipation,Phase IIExperimentation,Phase IIIExtension,Phase IVTransformation,Establish Web Presence,Internet-Enable Traditional Functions,Leverage Electronic Platform To Build New Capabilities,Integrated Transformation,Very few companies have yet developed a plan to take advantage of the transformational opportunities the Internet enables.,E-Commerce Transition,Business Impact Detail,30,PointofView,E-Commerce Transition (1 of 4),Business Impact Detail,31,PointofView,CRM,Develop electronic ordering capabilitiesEstablish Internet-based customer serviceaccount informationbilling/payment,Internet-Enable Traditional Functions,IBM,Upload key functions onto the Internethuman resourcesadmin,SCI,Exchange pricing data electronically with suppliersMake inventory levels visible,Deployment Examples,Impact,Industry leaders taking market share,E-Commerce Transition (2 of 4),Business Impact Detail,32,PointofView,E-Commerce Transition (3 of 4),Business Impact Detail,33,PointofView,E-Commerce Transition (4 of 4),Business Impact Detail,34,PointofView,Business Changes Impact Framework,Suppliers,Customers,InternalOperations,Internal Business,2,1,3,Business Definition,4,InternalOperations,Business Impact Detail,35,PointofView,Business Changes; Threats and Opportunities (1 of 2),Threats,Opportunities,2,Supply Chain Management:,Reintermediation by powerful electronic middlemen seizing customer controlLegacy system/implementation barriers enable competitors to obtain lower cost position,End-to-end integration of operations from customer demand through supplier productionfaster time to marketlower inventory costDeepen relationship with strategic suppliers and/or increase supplier base breadth to lower procurement costs,1,Customer Relationship Management:,Significant volumes/most valuable customers shift purchases to new Internet competitorsCommoditization pressure as buyers have access to greater information and broader competitor set,Ability to create unique customer experience that can not be replicated in physical worldNew channel to capture growthincreased customer baseproduct offering expansion,Business Impact Detail,36,PointofView,Business Changes; Threats and Opportunities(2 of 2),Threats,Opportunities,3,Internal Business Management:,Most talented employees leave to join Internet start-upsSignificant technology investment has low yield,Dramatic productivity improvements through better communication and knowledge capture and disseminationOpportunity to outsource non-core functions,4,Business Participation:,Redefinition of business boundaries undermines competitive positionNew agile competitors funded with much lower cost of capital,Creates potential new business participation options through leverage of assets/capabilitiesOpportunity to leapfrog/reposition versus traditional competitors,Business Impact Detail,37,PointofView,Impact Assessment Framework (CRM),A detailed evaluation of underlying characteristics needs to be performed for each industry/segment.,Lower priceBetter (unique) product selection and informationImproved response speed/accessLower transaction experience costGreater community value,Global reach expands market sizeHigh (enough) customer margins/lifetime valueAbility to cross-market with physical world to leverage collection of unique customer dataLow customer service costs Improved distribution and inventory costsIncreased asset utilization,Degree of product standardizationEasy online substitution for physical world (e.g., “Physical Shopping experience” not important part of sales process)Product value commensurate with distribution cost,Attractive Economics,Product / Service Conducive to Online Sale,Unique/Superior Customer Value Proposition,Structural Barriers Surmountable,Distribution infrastructureProprietary relationships (suppliers, funding, affiliates, etc),Regulatory/legal/tax issuesReasonable cost/timing to convert legacy systems or develop new systems,Business Impact Detail,38,PointofView,Internet Penetration Potential (Business to Consumer),Source: Industry and Trade Outlook; Statistical Abstract of the United States; S Bain Analysis,These criteria demonstrate why Books and PC Software have had early penetration in business to consumer markets.,Product Conducive to Internet,High,Low,Low,High,Medium-Term,Short-term,Medium-Term,Long-term,Business Impact Detail,39,PointofView,Internet Penetration Potential (Business to Business),Source: Forrester; Bain Analysis,Computing/Electronics and Utilities are the industries that are most likely to see significant Internet penetration in the business to business sector.,High