E-Business 2000:
Harnessing the Internet for
Growth & Productivity
Presented by
Chris Bogan
President & Chief Executive Officer
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Internet Economy Explosion
The Internet Economy grew at 62% last year to hit $523.9 billion. At this
growth rate, economists project Year 2000 sales at $850 billion. What
are the implications of this growth for each of our companies?
Internet Revenue
(in billions)
THE INTERNET ECONOMY
$850
900
800
700
500
400
• 56% of U.S. companies
sell products online.
$523.9
600
• 82% of college grads
search for employment
information online.
$322.5
300
200
100
1998
• 1 in 6 people use the
Internet in North America
and Europe.
1999
2000
Data Source: Center for Research in Electronic Commerce,
Graduate School of Texas at Austin. © 2000
• Internet-related growth
was 15 times more than
U.S. economic growth
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Increasing Productivity
Productivity continues to rise as companies leverage the Internet
to increase operational efficiencies and worker productivity.
• Internet revenue per employee
jumped 19% from 1998 to 1999.
• 68% of Internet Economy
companies report experiencing
a gain in market share
attributable to the Internet - in
contrast to only 24% of
companies from the economy
as a whole.
Revenue
Cost
Productivity =
• Small businesses who use the
Internet report 46% faster
growth than those that do not.
Data Source: Center for Research in Electronic Commerce,
Graduate School of Texas at Austin. © 2000
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Productivity Ecosystem
Internet-enabled productivity gains are being driven by performance
improvements across a broad-spectrum of operational fronts. Beyond
the early internet “hype,” the real gains are being achieved by
companies improving business systems. Which of these fronts offer
the greatest opportunity to your company and your business model?
Sales
Back
Office
Support
Information
Technology
Marketing
Internetdriven
Productivity
Supply
Chain
Service
Human
Resources
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Productivity Case Study: Cisco
Cisco Systems has effectively integrated the Internet into its
business model. The results are impressive cost savings, process
efficiency gains, error reductions, productivity improvements, and
customer satisfaction gains.
• 55% revenue increase from FY
1999 to 2000.
• 25% increase in customer
satisfaction.
• Train 3,000 people worldwide
online for $250,000, -- a 60%
expense reduction.
• World’s largest e-commerce
site: 90% orders online.
• Technical Assistance Center
(TAC) website allows real-time
customer service response.
• One-interaction resolution of
approximately 80% of Cisco’s
support questions.
• $270 million savings on
customer care.
Data Source: Cisco Systems, Inc. Annual Report. © 2000
• 99% order accuracy and $60
million savings.
• Reduced time to close it’s
books, from 14 days to realtime updates.
• Virtual supply chain reduced
inventory levels by 45%.
• 12 weeks cut from products’
time to market.
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Case Study: Best Practices, LLC
The Internet Economy offers opportunities to companies of all sizes.
Best Practices, LLC has employed Internet technology to sell “virtually”
on five continents – and to achieve important productivity gains.
BP,LLC INTERNET SALES SNAPSHOT
North
America
Jakarta
Japan
Russia
U.K.
Germany
Sweden
Spain
Hong
Kong
Mexico
Philippines
• E-commerce: worldwide sales.
• E-Marketing: highly effective
mining, segmentation, and
rapid-fire contact.
• E-Inventory: product stored in
virtual space.
Australia
Panama
Productivity Effects: Virtual
Offices
South
Africa
Venezuela
Argentina
Brazil
Singapore
• E-Fulfillment: rapid and
effortless.
• E-Service: on-line data capture.
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Global Management Challenge
Economic Evolution seems to be changing the structure of business
relations. The old paradigm was vertical; the new paradigm is
ecological. Which paradigm is most relevant for you?
Old Economy:
Vertical Line
Customer
Company
Supplier
New Economy:
Ecosystem
INTERNET INDICATORS
Organization
Leadership
 Actively Involved.
 E-Business culture.
 Benchmarks best-inclass companies to
seek improvement
opportunities.
Governance
 Resource allocation.
 Measured and
evaluated.
 E-Risk.
Data Source: Center for Research in Electronic Commerce,
Graduate School of Texas at Austin. © 2000
 “Ruthless execution”:
agile and deft.
 Constantly enhance.
 Strategic Partnerships.
Technology
 Commitment to webbased future.
 Internet solutions highly functional,
scalable.
 Ubiquitous access.
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GBC Agenda
The opportunity stakes are high for companies seeking to improve
productivity, growth and financial results in their businesses using in
these important e-business areas.
E-Human Resources
• Tomorrow’s HR: Leveraging
the Power of the Internet –
Fidelity Investments
• Turning HR into HR EBusiness - IBM
E-Customer Service and
Support
• Dell’s E-Support System
• TI’s New KnowledgeBase: A
Case Study
• GBC Member Roundtables
E-Sales and Marketing
• E-Sales, E-Marketing & EService: Best Practices, LLC
Consortium Preliminary
Findings
• The Future of E-Marketing Cisco Systems
Benchmarking Nuts and
Bolts
• Benchmarking at Dell
Computer
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