Intel Corp - An example of Business to Business ECommerce in Europe Jeremy Ladds Manager, Internet Marketing & E-Commerce, Direct Accounts Intel Corporation (UK) Ltd ® R R 1 Agenda E-Commerce Drivers Intel’s Business to Business E-Commerce Program Lessons learned Summary ® R R 2 Customers are Business Drivers “. . . the more effectively Intel matches production and delivery of its microprocessors to Dell’s demand, the more Dell’s efficiency improves . . . By optimizing the supply chain, we all win.” Dell Computer Corporation ® R R Source: CIO Magazine 8/15/98 3 Intel is a Global Company 1997 Revenue of $25.1B 44% from the Americas 27% Europe 19% APAC 10% Japan ® R R 4 Development Strategies Alternative approaches to e-business programs –Select isolated, supporting business Intel’s Choice lower risk, lower reward develop, learn & rollout to other businesses ® R R –Target a mainstream business higher risk, higher reward develop, learn & rollout throughout company 5 Intel E-Business Pilot Private extranet for OEMs and distributors Personalized delivery of encrypted information Real-time order management 24x7 Worldwide Information & transaction ® R R 6 Strategic Business Value Broaden and deepen sales reach – Automate order management & info delivery Connect geographically dispersed customer base, especially those who don’t have EDI Provide 24x7 order capabilities Improve customer service – Automate tactical sales tasks – Enable faster/better access to information Make it easier to do business with Intel Focus Resources on More Value-Add ® R R 7 Methodology Whole Company Involved IS Role Management Buy In ® R R Planning & Logistics Role Sales & Marketing Role Product Group Input 8 Key Learnings Connectivity and Internet performance – affected by many factors, must be all correct to work Client desktop/browser and their local network performance ISP connection and the long-haul to international backbone The server environment and application design efficiency – measured by customer experience, avoid theoretical testing – improvements may require industry/country-wide collaboration Strong encryption – HTTPS very sensitive, particularly to packet loss, apps efficiency & client performance. Business process re-engineering – using new technology a big job – major efforts to make the way for business sales force ® R R Support – require significant training on browser and web itself 9 Key Learnings Content Connectivity Authorization Plan for impact on future growth & Entitlement Support Architecture Focus on customer-centric design Anticipate iterative design - firmly understand the end point ® R R 10 E-Commerce Aims Shift with Time • Mission Statement ‘97/98 Be a world leader in marketing, selling, and supporting Intel products and the Intel brands on the web. • Mission Statement ‘98/99 Use the unique power of the Internet to create significant value for Intel, our Brands and our Customers. ® R R 11 Know what to measure…. but have faith! “What's my ROI on e-commerce? ARE YOU CRAZY? This is Columbus in the New World. What was his ROI? ” Andrew Grove, Chairman & former CEO of Intel The Economist May, 1997 ® R R 12