bcE-CommerceKnowledgeSharingAugust1999,BainBeijingOffice•InternetDevelopment•E-CommerceIntroduction•BusinessImpact•ImpedimentsforE-Commerce•BaineConsultingExperienceAgendaRadioTVCableWWW192219261930193419381942194619501954195819621966197019741978198219861990199419980255075100125MillionsofUsersNote:WWWisWorldwideWebSource:MorganStanleyU.S.InvestmentResearch:InternetRetail,5/28/97YearstoReach50MillionUsers:Radio=38TV=13Cable=10WWW=5UseradoptionoftheWorldWideWebhasdramaticallyoutpacedthegrowthofothercommunicationsmedia,settingthestageforrevolutionarychanges.U.S.InternetAdoptionMobilePhoneFixedPhoneCableWWW1987198819891990199119921993199419951996199719981999020406080100MillionsofUsersNote:WWWisWorldwideWebSource:MorganStanleyU.S.InvestmentResearch:InternetRetail,5/28/97YearstoReach50MillionUsers:Radio=38TV=13Cable=10WWW=5UseradoptionoftheWorldWideWebhasdramaticallyoutpacedthegrowthofothercommunicationsmedia,settingthestageforrevolutionarychanges.U.S.InternetAdoptionInternetUserGrowth*Restofworldincludesallnon-U.S.countriesin1996-97and1999-2003Source:ComputerIndustryAlmanac;InternetIndustryAlmanac;Bainanalysis1996199719981999E2000E2001E2002E2003E60M100M147M187M236M300M380M482M0M100M200M300M400M500MMillionsofOn-LineUsersOn-lineusageisskyrocketing,withfuturegrowthbeingfueledbyglobalpenetration.PRELIMINARYU.S.Europe78M179M163M148M135M103M55M35MCAGR(1996-1998)(1999E-2003E)CAGR57%27%50%15%AsiaRestofWorld*WorldwideU.S.InternetPenetrationSource:Jupiter’s1998OnlineShoppingReport,Simba’sElectronicMarketplace2002,Forrester’s1998TelecomStrategiesInternetpenetrationinbothconsumerandbusinessmarketsissignificant.CAGR(1997-2002E)TotalHouseholdsComputerHouseholdsOnlineHouseholdsOnlineShoppingHouseholds199719981999E2000E2001E2002E0M25M50M75M100M125MMillionsofU.S.Households1%4%13%44%PRELIMINARYOnlineas%ofComputerHouseholds:52%77%Shoppingas%ofOnlineHouseholds:17%59%ConnectedtoInternetHaveWebsiteConductSalesonInternet97%47%21%86%28%9%33%15%4%0%20%40%60%80%100%>1,000employees100-1,000employees<100employeesPercentofU.S.Business(1998)ConsumerConsumerBusinessBusiness•InternetDevelopment•E-CommerceIntroduction•BusinessImpact•ImpedimentsforE-Commerce•BaineConsultingExperienceAgendaIndustryValueChainBusinessparticipationoccursinfivedistinctmarketsegments.UserAccessInternetInfrastructure`IntermediariesApplicationsEnablers•Accessdevices•Internetserviceproviders•Networkaccessequipment•Technologyandsoftwareenablers•Serviceenablers,e.g.:-professionalservices-datamanagement-affiliateprograms•Supportenablers,e.g.:-paymentsystems/transactionclearing-distribution-webservices•Portals•Webagents(e.g.,BOT)•Commerceserviceproviders•Virtualtradingcommunities•Content•Commerce•Communication•Community•Hardware/transmissionequipment•BackbonetransportIndustryValueChainBusinessparticipationoccursinfivedistinctmarketsegments.UserAccessInternetInfrastructure`IntermediariesApplicationsEnablers•Accessdevices•Internetserviceproviders•Networkaccessequipment•Technologyandsoftwareenablers•Serviceenablers,e.g.:-professionalservices-datamanagement-affiliateprograms•Supportenablers,e.g.:-paymentsystems/transactionclearing-distribution-webservices•Portals•Webagents•Commerceserviceproviders•Virtualtradingcommunities•Content•Commerce•Communication•Community•Hardware/transmissionequipment•Bac...
