1. Presented by Chris Bogan President & Chief Executive Officer
E-Business 2000:
Harnessing the Internet for Growth & Productivity
Presented by Chris Bogan
President & Chief Executive Officer

2. Internet Economy Explosion
The Internet Economy grew at 62% last year to hit $523.9 billion. At this growth rate, economists project Year 2000 sales at $850 billion. What are the implications of this growth for each of our companies?
THE INTERNET ECONOMY
1 in 6 people use the Internet in North America and Europe.
56% of U.S. companies sell products online.
82% of college grads search for employment information online.
Internet-related growth was 15 times more than U.S. economic growth
$850
900
100
200
300
400
500
600
700
800
$523.9
Internet Revenue
(in billions)
$322.5
1998
1999
2000
Data Source: Center for Research in Electronic Commerce, Graduate School of Texas at Austin. © 2000

3. Increasing Productivity
Productivity continues to rise as companies leverage the Internet to increase operational efficiencies and worker productivity.
Internet revenue per employee jumped 19% from 1998 to 1999.
68% of Internet Economy companies report experiencing a gain in market share attributable to the Internet - in contrast to only 24% of companies from the economy as a whole.
Small businesses who use the Internet report 46% faster growth than those that do not.
Revenue
Cost
Productivity =
Data Source: Center for Research in Electronic Commerce, Graduate School of Texas at Austin. © 2000

4. Productivity Ecosystem
Internet-enabled productivity gains are being driven by performance improvements across a broad-spectrum of operational fronts. Beyond the early internet “hype,” the real gains are being achieved by companies improving business systems. Which of these fronts offer the greatest opportunity to your company and your business model?
Sales
Supply
Chain
Back
Office
Support
Marketing
Information
Technology
Human
Resources
Service
Internet-
driven
Productivity

5. Productivity Case Study: Cisco
Cisco Systems has effectively integrated the Internet into its business model. The results are impressive cost savings, process efficiency gains, error reductions, productivity improvements, and customer satisfaction gains.
55% revenue increase from FY 1999 to 2000.
Train 3,000 people worldwide online for $250,000, -- a 60% expense reduction.
Technical Assistance Center (TAC) website allows real-time customer service response.
One-interaction resolution of approximately 80% of Cisco’s support questions.
$270 million savings on customer care.
25% increase in customer satisfaction.
World’s largest e-commerce site: 90% orders online.
99% order accuracy and $60 million savings.
Reduced time to close it’s books, from 14 days to real-time updates.
Virtual supply chain reduced inventory levels by 45%.
12 weeks cut from products’ time to market.
Online training will reach 100% of Cisco’s sales and technical staff by year 2000’s end.
Data Source: Cisco Systems, Inc. Annual Report. © 2000

6. Case Study: Best Practices, LLC
The Internet Economy offers opportunities to companies of all sizes. Best Practices, LLC has employed Internet technology to sell “virtually” on five continents – and to achieve important productivity gains.
BP,LLC INTERNET SALES SNAPSHOT
U.K.
Germany
Sweden
Spain
Productivity Effects: Virtual Offices
E-commerce: worldwide sales.
E-Marketing: highly effective mining, segmentation, and rapid-fire contact.
E-Inventory: product stored in virtual space.
E-Fulfillment: rapid and effortless.
E-Service: on-line data capture.
Jakarta
North America
Japan
Russia
Hong Kong
Mexico
Australia
Venezuela
Argentina
Brazil
Panama
South Africa
Philippines
Singapore

7. Global Management Challenge
Economic Evolution seems to be changing the structure of business relations. The old paradigm was vertical; the new paradigm is ecological. Which paradigm is most relevant for you?
New Economy: Ecosystem
Old Economy: Vertical Line
Supplier
Company
Customer
INTERNET INDICATORS
Leadership
Actively Involved.
E-Business culture.
Benchmarks best-in-class companies to seek improvement opportunities.
Governance
Resource allocation.
Measured and evaluated.
E-Risk.
Organization
“Ruthless execution”: agile and deft.
Constantly enhance.
Strategic Partnerships.
Technology
Commitment to web-based future.
Internet solutions - highly functional, scalable.
Ubiquitous access.
New Economy success depends on speed, low costs, and expertise.
Leadership – Actively involved = understands Internet + forward-looking
Governance – (Metrics)Measure qualitative factors, e.g. customer satisfaction
- E-risk = new applications are web-based vs. mainframe, back Internet initiatives with resource allocation high relative to IT spending.
Organization – “Ruthless execution” – to E-Business solutions, e.g. 3 month projects, 3 – 6 people.
- strategic partnerships outside your industry (agility).
Technology - Senior management show dedication to web future and provides technological infrastructure and it is followed corporate-wide.
- **ACCESS – employees, customers, partners have ubiquitous access to information and processes.
Data Source: Center for Research in Electronic Commerce, Graduate School of Texas at Austin. © 2000

8. E-Customer Service and Support
GBC Agenda
The opportunity stakes are high for companies seeking to improve productivity, growth and financial results in their businesses using in these important e-business areas.
E-Human Resources
Tomorrow’s HR: Leveraging the Power of the Internet – Fidelity Investments
Turning HR into HR E-Business - IBM
E-Customer Service and Support
Dell’s E-Support System
TI’s New KnowledgeBase: A Case Study
GBC Member Roundtables
E-Sales and Marketing
E-Sales, E-Marketing & E-Service: Best Practices, LLC Consortium Preliminary Findings
The Future of E-Marketing - Cisco Systems
Benchmarking Nuts and Bolts
Benchmarking at Dell Computer