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How has E-Commerce changed
in times of Share Economy?




                      next09, May 6, 2009
10 Years ago: Similar Business Models
in Independent Silos
• Every retailer built his own e-commerce platform.
• Software and service companies have adopted to this.
• How many check-out processes have been built one
 by one?


Consequences of the early silo architecture:
➥ insufficient knowledge transfer
➥ recurring costs
➥ reluctant innovation




                                                         2
Today there are so many
E-Commerce Business Models
Classic Retailers      (e.g. officedepot, zappos, asos, yoox ...)
Mono-Brand Stores      (e.g. nike, abercrombie, tommy, gucci ... )
Auction Platforms      (e.g. ebay ... )
Market Places          (e.g. amazon ... )
Live Shopping Sites (e.g. woot, rabattschlacht ... )
Shopping Clubs         (e.g. vente-privee, buyvip, brands4friends ... )


                     ... and many more




                                                                          3
What all of them share:
The E-Commerce Stack

    Online Marketing      Finding enough consumers at reasonable cost


     Online Storefront    getting their attention, presenting an easy entry


   Product Presentation   staging the product, making it tangible


                          providing a secure order process
        Fulfillment        and fast delivery

   E-Commerce Mgmt.       staying in control of it all!




                                                                              4
What they also share:
The E-Commerce Challenges

          Finding the most profitable target customers


         Engaging them in the offer, make them return


           Providing inspiration and excellent service


      Putting the customers in control fulfilling their desire


          Finding ways to stem against price pressure




                                                                5
Consumers‘ Expectations rise

What consumers
expect of any
e-commerce
offering

                                   inspiration

                                  performance

                                   reliability
                 working at all


                 10 years ago        today




                                                 6
The Role of Share Economy

                                               Shared Resources:
       How can the
                                                   Shared Data
    „Share Economy“
   help you in coping
 with these challenges?      Using shared
                                                 Shared Services
                             resources is a
                              competitive
                          advantage of open
                           architectures and     Shared Platforms
                            modern online
                           business models.

                                                Shared Knowledge




                                                                    7
Shared Data yields a Boost in the
Reliability of Decisions
Some of the most important decisions in
e-commerce:
• How to avoid scattering loss in online
  marketing?
                                                  E-Commerce Platform
                                                 E-Commerce Platform
• How to display the products fitting best?      E-Commerce Platforms
• How to ensure the parcels will find their
  destination?
• How to protect against fraud?

                                                          Address
Tapping shared databases helps being         Profiling                 Solvency
                                                          Checks
efficient.

                                                        Shared Data


                                                                                 8
Shared Platforms and Services for
cutting Costs / boosting Performance
                           Shared Services:

                          Hosted Targeting Services


                              Product Visualisation
   E-Commerce Platform
  E-Commerce Platform              Engines
    Shared Platforms
                                Payment Service
                                   Providers


                         Additional Advantages:
                         • less labour-intensive
                         • fulfilling high consumer expectations
                         • reducing time to market
      Shared Data


                                                                  9
Shared Knowledge for a broader
Perspective and new Ideas
Who does not know this:
                                           Shared Knowledge
People within a company tend to lose
independence of thinking.
They will naturally stick to so-called    E-Commerce Platform
                                         E-Commerce Platform
„facts“ that have been accepted for         Shared Platforms
ages.



            Wouldnʻt it be great to
               tap the shared
             knowledge of all e-
             commerce experts?


                                             Shared Data


                                                                10
The Main Impacts of this Trend

                                    • Modern e-commerce sites are based on an
    Shared Data                       open architecture.
                                    • They integrate lots of services and other
                                      components.
  Shared Services
                                    • Each service can be highly efficient due to
                                      high transaction numbers.
  Shared Platforms                  • All components have to be aligned in order to
                                      provide a state-of-the art e-commerce site.
                            Today
                                    • This requires very good knowledge that is
 Shared Knowledge                     scarcely available.


                     Time




                                                                                      11
How do we respond to this?




                             12
We founded next commerce!

• next commerce is made to make established brands
 successful in their e-commerce mission.
• With next commerce we have a new business and IT
 platform to share 13 years of e-commerce knowledge
 at SinnerSchrader.
• We provide e-commerce outsourcing,
 from Google to delivery at home.
• We select the best-of-breed components and align
 them for building and running a state-of-the-art
 e-commerce solution.
• We get paid by results, not efforts.




                                                      13
For further discussion,
                               please stop by
                   at our stand in the foyer!


Moritz Koch
Managing Director
SinnerSchrader next commerce

m.koch@next-commerce.com


                                                14

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How has E-Commerce changed in times of Share Economy?

  • 1. How has E-Commerce changed in times of Share Economy? next09, May 6, 2009
  • 2. 10 Years ago: Similar Business Models in Independent Silos • Every retailer built his own e-commerce platform. • Software and service companies have adopted to this. • How many check-out processes have been built one by one? Consequences of the early silo architecture: ➥ insufficient knowledge transfer ➥ recurring costs ➥ reluctant innovation 2
  • 3. Today there are so many E-Commerce Business Models Classic Retailers (e.g. officedepot, zappos, asos, yoox ...) Mono-Brand Stores (e.g. nike, abercrombie, tommy, gucci ... ) Auction Platforms (e.g. ebay ... ) Market Places (e.g. amazon ... ) Live Shopping Sites (e.g. woot, rabattschlacht ... ) Shopping Clubs (e.g. vente-privee, buyvip, brands4friends ... ) ... and many more 3
  • 4. What all of them share: The E-Commerce Stack Online Marketing Finding enough consumers at reasonable cost Online Storefront getting their attention, presenting an easy entry Product Presentation staging the product, making it tangible providing a secure order process Fulfillment and fast delivery E-Commerce Mgmt. staying in control of it all! 4
  • 5. What they also share: The E-Commerce Challenges Finding the most profitable target customers Engaging them in the offer, make them return Providing inspiration and excellent service Putting the customers in control fulfilling their desire Finding ways to stem against price pressure 5
  • 6. Consumers‘ Expectations rise What consumers expect of any e-commerce offering inspiration performance reliability working at all 10 years ago today 6
  • 7. The Role of Share Economy Shared Resources: How can the Shared Data „Share Economy“ help you in coping with these challenges? Using shared Shared Services resources is a competitive advantage of open architectures and Shared Platforms modern online business models. Shared Knowledge 7
  • 8. Shared Data yields a Boost in the Reliability of Decisions Some of the most important decisions in e-commerce: • How to avoid scattering loss in online marketing? E-Commerce Platform E-Commerce Platform • How to display the products fitting best? E-Commerce Platforms • How to ensure the parcels will find their destination? • How to protect against fraud? Address Tapping shared databases helps being Profiling Solvency Checks efficient. Shared Data 8
  • 9. Shared Platforms and Services for cutting Costs / boosting Performance Shared Services: Hosted Targeting Services Product Visualisation E-Commerce Platform E-Commerce Platform Engines Shared Platforms Payment Service Providers Additional Advantages: • less labour-intensive • fulfilling high consumer expectations • reducing time to market Shared Data 9
  • 10. Shared Knowledge for a broader Perspective and new Ideas Who does not know this: Shared Knowledge People within a company tend to lose independence of thinking. They will naturally stick to so-called E-Commerce Platform E-Commerce Platform „facts“ that have been accepted for Shared Platforms ages. Wouldnʻt it be great to tap the shared knowledge of all e- commerce experts? Shared Data 10
  • 11. The Main Impacts of this Trend • Modern e-commerce sites are based on an Shared Data open architecture. • They integrate lots of services and other components. Shared Services • Each service can be highly efficient due to high transaction numbers. Shared Platforms • All components have to be aligned in order to provide a state-of-the art e-commerce site. Today • This requires very good knowledge that is Shared Knowledge scarcely available. Time 11
  • 12. How do we respond to this? 12
  • 13. We founded next commerce! • next commerce is made to make established brands successful in their e-commerce mission. • With next commerce we have a new business and IT platform to share 13 years of e-commerce knowledge at SinnerSchrader. • We provide e-commerce outsourcing, from Google to delivery at home. • We select the best-of-breed components and align them for building and running a state-of-the-art e-commerce solution. • We get paid by results, not efforts. 13
  • 14. For further discussion, please stop by at our stand in the foyer! Moritz Koch Managing Director SinnerSchrader next commerce m.koch@next-commerce.com 14

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