Download - The Future of Ecommerce - Web 2.0
C o n f i d e n t i a
l a n d
P r o p r i e t a r y
Web 2.0 Expo New York
The Future of Ecommerce:
Frictionless, Social, Everywhere
October 10th-13th, 2011
Presented by Elastic Path Software Chief Strategy Officer Cliff Conneighton
Elastic Path Research and Consulting
Introducing Elastic Path Software
Digital Commerce for Innovators
• We help the world’s biggest brands sell digital goods and services
• We provide a flexible digital commerce platform and expertise in
commerce strategy and implementation
• #1 ecommerce blog www.getelastic.com
• For more on-demand digital commerce resources
www.elasticpath.com/resources
Elastic Path Research &
Consulting
Elastic Path Research &
Consulting
Digital is different. It must be:
Frictionless
Social
Everywhere
Elastic Path Research &
Consulting
Frictionless
• Transactions in the context of life
• Only relevant offers
Elastic Path Research &
Consulting
Social
• Control of the brand has shifted to the crowd
• Anyone can be a merchant, author, reviewer, developer,
reporter, editor, publisher
Elastic Path Research &
Consulting
Social
• Control of the brand has shifted to the crowd
• Anyone can be a merchant, author, reviewer, developer,
reporter, editor, publisher
Elastic Path Research &
Consulting
Everywhere
• Sellers come from anywhere
• Products come from anywhere
• Information about products comes from anywhere
• Buyers come from anywhere
• Transactions can occur anywhere
• Technology comes from anywhere
Elastic Path Research &
Consulting
elas·tic \i-las-tik\
• capable of ready change or easy expansion or
contraction: not rigid or constricted
• receptive to new ideas: adaptable
Elastic Commerce
Elastic Path Research &
Consulting
2010
2011
$0
$20
$40
$60
$80
$100
Mill
ion
s For many, this is an existential challenge
February sales of e-books tripled y/y CAGR forecast = 72%
Traditional down 34%
Elastic Path Research &
Consulting
Gamers shifting from boxed to digital downloads
• In 2011 v 2010
– 73% to spend the same or more on downloads
– 63% to spend the same or more on boxed games
– 76% of PC & Mac gamers with tablets and smartphones plan to spend same or
more on mobile games
• Electronic Arts Q4 2011 earnings call: will become “fully integrated
digital entertainment company”
• 73% find title bundles (all current & future downloadable content)
appealing
• 70% would view embedded ads to play for free
• 51% would pay monthly fee for unlimited games
• 77% would buy more with “try before you buy”
• 6 million unique users access Steam daily
Elastic Path Research &
Consulting
Google Catalogs kills ecommerce as we know it
Elastic Path Research &
Consulting
New sales and marketing models for books
• 71% like all-you-can-read subscriptions idea
• 70% will accept embedded ads to reduce price
• 75% will refer on social sites for discounts, 68% for free
• 79% interested in group buying discounts
• Recommend / review on social media now:
– 66% of 18-24
– 47% of 35-54
– 19% of 55+
• > 50% young adults would “rent” rather than buy
• 36% would buy more if could share/loan more
Elastic Path Research &
Consulting
A digital product is different. It can be:
• Time-based
• Copied
• Used simultaneously
• Dis-aggregated
• Bundled
• Consumed in bites
• Subscribed
Elastic Path Research &
Consulting
Traditional Retail Hard-goods Relationship
wait
Order
Ship
Elastic Path Research &
Consulting
New Era of Digital Relationship
Requires Digital Relationship Management for a perpetual interactive relationship
now
download read
watch
experience
socialize
try
contribute
view sample
explore
play
query renew
extend offer upgrade learn
continue
Elastic Path Research &
Consulting
What good is a
“Stock Keeping Unit”
when you are delivering a copy of a file?
really selling “Entitlements”
Elastic Path Research &
Consulting
Long Tail v. Paradox of Choice
Offer management Product Discovery
Elastic Path Research &
Consulting
Commerce Software
Vendor Ecosystem
Sterling Yantra
Order Motion
Manhattan Associates
Oracle
customer-facing
enterprise-facing
Escalate Retail (Blue Martini)
Oracle ATG Commerce
IBM Websphere Commerce
Sterling Comergent Microsoft Commerce Elastic
Path SAP
eCommerce
Demandware
GSI Commerce
MarketLive
Venda
Endeca IBM
iPhrase
Microsoft Fast
Omniture SiteSearch
(fka Mercado)
Progress EasyAsk
Attivio
Choicestream
ATG Recommendation
s
IBM Coremetrics Intelligent Offer
Certona
Aggregate Knowledge
Baynote
Adobe Omniture Touch Clarity
IBM Coremetrics
Adobe Omniture Site Catalyst
Test & Target Webtrends
BazaarVoice
PowerReviews
Pluck
Jive
KickApps
ONEsite
Adobe Scene 7
Liquid Pixels
Allurent Adobe Flash, Flex
ChannelAdvisor RichFX
Adobe Dreamweaver
Microsoft FrontPage
Click2Talk
ATG eStara
VoiceStar
LivePerson
RightNow
eGain
Talisma
Kana Talisma
Interwoven Vignette Experian
CheetahMail
Responsys
Exact Target
YesMail Silverpop
Infor epiphany
Eloqua
Autonomy
Interwoven Optimost
Escalate Retail
Microsoft
Oracle Siebel
PeopleSoft JD Edwards
SAP Financials
Oracle Escalate Retail SAP
Oracle Siebel SAP
Salesforce.com
RightNow
Google Checkout
PayPal
Verisign
Cybersource
BillMeLater
Oracle
NCR
IBM Unica
Aprimo
Paym
en
t / Tax / Frau
d Scre
en
ing
iCrossing
ClickForensics
Oracle Retail
IBM Cognos SAS
Forsee Results
Gomez
iPerceptions
Application Server
Database
IBM Websphere
Oracle WebLogic
Redhat JBoss
Microsoft .NET SAP
Netweaver
Sun Java System
IBM DB2
Oracle Microsoft SQL Server
Chase Paymentech
ADP Taxware
Oracle SES Oracle
RTD
Rich Relevance
Communispace
Lithium
Leverage
Inquira
Salesforce
Oracle
Oracle
Keynote
* SaaS defined by subscription pricing, not just hosting
Oracle
representative subset of vendors
Vertex
Oracle
Oracle
Oracle
Litle
Oracle
Oracle
Oracle
Alfresco
Red Hat
Elastic Path Research &
Consulting
The Integration Challenge
Elastic Path Research &
Consulting
Traditional API approach inappropriate for
Elastic Commerce
SOAP is sooooooo 90’s
Requirements for a new model of commerce API:
• Built for Media developers, not Java developers
- Navigable REST
- Scope focused on commerce: terse = fast
• Optimized for the new universe of devices
- Oriented to javascript, not XML
- Perfect for iOS, Flash, jQuery
• Enabling decoupled, agile workflow
- Not assuming a bricks & mortar shopping model
• Security model in the user’s context
Elastic Path Research &
Consulting
You don’t know what you’re doing.
And neither do your IT experts.
Elastic Path Research &
Consulting
Higher level of departure allows innovation, differentiation
Tomorrow
2010
2000
1990
1980
1970
1960
operating system
database
ERP
app server
retail commerce platform
elastic commerce platform
Elastic Path Research and Consulting
Future elastic commerce system requirements
1. Built on the foundation of entitlements
2. Enable great customer experience on variety of
devices and internet of things
- To enable selling in the context of life.
3. Make buying experience more relevant and
frictionless
4. Optimize integration with vast ecosystem
5. Architected for flexibility & extensibility
C o n f i d e n t i a
l a n d
P r o p r i e t a r y
Questions
For more on-demand digital commerce resources
www.elasticpath.com/resources
1.800.942.5282 (toll-free in North America)
www.elasticpath.com