Authors:Reviewers:bcPointofViewCreated:June1999HeidiLockeSimonLangstonJonesJeffreyKuoDavidSandersonEmmaGrayAaronCheris2PointofViewbcPointofViewECommerceToolkit•WhatimpactistheInternethaving?•HowwilltheInternetaffectmybusiness?•Whatshouldwebedoingtorespond?•Whatarethekeystosuccess?Executivesacrosstheboardareposingfourfundamentalquestions:OverviewBain’sPointofView3PointofViewbcPointofViewECommerceToolkitAgenda•InternetImpactDetail•BusinessImpactDetail•ResponseAlternatives•KeySuccessFactors4PointofViewbcPointofViewECommerceToolkitTheInternetisamajordiscontinuitythatwillredefinethestrategiclandscapeineveryindustry.•DefiningcharacteristicsoftheInternetcreateatrulyuniqueuserexperience•Ubiquitousreach•Dramaticallylowercostinteraction•Complete,symmetrical,“free”information•Theseresultindramaticchangesacrosscompanyrelationshipswithcustomers,suppliers,employeesandotherstakeholders•Redefinitionofentireuserexperience•Newchanneltocapturegrowthopportunities•Electronicmanagementofupstreamsupplychainrelationships•Tightlinkageofend-userdemandtocompanyoperations•RedeploymentofphysicalandhumanresourcestofacilitatedramaticproductivityimprovementOverview(1of2)InternetImpactDetail5PointofViewbcPointofViewECommerceToolkitTheInternetisamajordiscontinuity.•Thestakesarehighforshareholderwealthcreation•Overthepastthreeyears,asmallgroupofInternetcompanieshavecreatedmorevaluethananyotherindustryachievedovertenyears•TheInternetisadynamicmedium,andfurthersignificantshiftshaveyettoplayout•Dramaticallyenhancednetworkperformance•Highspeedaccesswidelyavailable•Newdemographicwaves•Newspecialized(non-PC)accessdevicesandnewaccessbusinessmodels•Valueaddedreintermediation•IntegrationofphysicalandelectronicparticipationOverview(2of2)InternetImpactDetail6PointofViewbcPointofViewECommerceToolkitTheInternetwillredefinethestrategiclandscapeineveryindustry.•Productcustomization/quality•Geographicproximity•Mechanicalinnovation•Transportationinfrastructure•Scaleeconomies•Massmarketing•Ubiquitousreachtoallstakeholders•Dramaticallylowercostinteractions•Complete,symmetric,“free”information•Wellordered,multi-tiereddistribution•Efficient,optimizedphysicaltouchrelationships•Trulyuniqueuserexperience-deepercustomerrelationships-broaderreach•Completerestructuringofindustrysupplychains•LowercostandenhancedproductivityCraftBasedEconomyIndustrialRevolutionMassProductionInternet/InformationRevolutionSuppliersDIstrIbutorsManufacturingResellersCustomersInternetRevolutionInternetImpactDetail7PointofViewbcPointofViewECommerceToolkitInternetCharacteristicsDefiningcharacteristicsofthisnewcommunicationsmediumareredefiningallcompanies’stakeholderinteractions.ExampleImplications:DramaticallyLowerCostInteractionKeyCharacteristics:•Anyone,anytime,anywhereinteraction•Substituteshighcosthumanforlowcostelectronicinteraction•Frictionlessinformationexchange•Universalaccess•Lowcost/highbandwidthinfrastructure•Powershiftstobuyersthroughpricing,inventoryandotherinformationvisibility•Targetedsegmentationenables“customer”levelcustomizationandprofitmeasurementInternetGlobalCommunicationsMediumComplete,Symmetrical,“Free”InformationAvailability•Reducesnumberof“touches”ineachinteraction•Eliminatesindustryandorganizationallayers•Providesaccesstonewcustomersegments,broadersupplierbaseandincrea...
