How to Make E-Commerce Profitable

7/2/99


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Table of Contents

How to Make E-Commerce Profitable

Agenda

Powershifts in Supply Chains

Business in the 21st Century

The Battle is to Own the Customer

Which Business Sectors Will Grow Internet Commerce Most ?

Which Channels will Generate Most Revenue?

Compare a land-based, conventional business model with an Internet-based business model

Balance Sheet Comparison Amazon.com versus Barnes & Noble

Income Statement Comparison Amazon.com versus Barnes & Noble

Land based business models consumes capital- Internet business model generates capital

Strategic Profitability Matrix: Land-based vs an Internet -based Business Model

The Internet based Business Model

The Internet Accelerates Margin Pressure

The Fallacies of Web Commerce Fulfillment

Five Keys to Web Supply Chain Execution

Increase the Return on Capital

Challenge 1: Increase Net Revenue

Customer Lifecycle Management

British Airways - 1 to 1 Web Marketing

Expand “Share of Wallet”

Understand the Price Waterfall, Manage the Income Leakages

PPT Slide

Challenge 2: Lower Operating Expenses

Connect the Web Front-end with a Customer-Driven Order Fulfillment Backend System.

Integrated e-business based Supply Chain Management

Internet Commerce for the Virtual Enterprise

Customer Response Centers (CRC) Yields 5-6 Times Higher Profit for Grocery Home Shopping

Challenge 3: Increase Working Capital Turnover Rate

Striving for Zero Inventory

Challenge 4: Take fact based decisions

Economic Value Monitoring

The “Treacherous Gross Margin”

What If - Profitability Impact

Profitability by Customer, Supply Mode and Product Groupings

The Strategic Profitability Diagram

Working Capital Usage

Value2 Management

Summary

Challenges for Internet-based Supply Chains

The Internet Business Model

Author: Ulf Casten Carlberg

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