1. International Congress and Convention Association Today’s and Tomorrow’s PCO 44 th ICCA Congress & Exhibition, Monday 7 November 2005 iccaworld.com

2. International Congress and Convention Association Today’s and Tomorrow’s PCO Panellists: - Sarah Markey-Hamm ICMS Pty Ltd, Australia - Julio Urban Idealiza Events, Brazil Moderator: - Jurriaen Sleijster MCI, Switzerland iccaworld.com

3. International Congress and Convention Association Today’s and Tomorrow’s PCO PCO views from 3 continents: how we see the future A lively debate with the audience: how you see the future How do PCO’s need to change? What are the biggest challenges? Which business models? What do clients want next? iccaworld.com

4. International Congress and Convention Association Model for this session: iccaworld.com Competitor Client Supplier PCO

5. International Congress and Convention Association Model for this session: Bold statements about the future Graphs projecting trends Lively debate to see if we agree! iccaworld.com

6. International Congress and Convention Association Perspective 1: The PCO iccaworld.com Competitor Client Supplier PCO

7. International Congress and Convention Association The PCO: Business Model Staff Technology Finances & Fees iccaworld.com

8. International Congress and Convention Association The PCO: Business model Services: From logistics to knowledge-management From PCO to Core-PCO to Association Management More different services Brand: Increasingly important Risk-sharing & creating own events versus “simply supplying” iccaworld.com

9. International Congress and Convention Association The PCO: Business model Size matters: bigger AND smaller iccaworld.com time + _

10. International Congress and Convention Association The PCO: Business model Location: PCO must be close to the client Location: PCO must be close to the event destination Groups, partnerships, mergers and acquisitions (national & international) Purchasing key to success (preferred suppliers, set contracts) iccaworld.com

11. International Congress and Convention Association The PCO: Staff More educated: “consultants” Higher salaries for better skills Fewer staff for same workload “What’s in it for me?” attitude International staff is a “must” iccaworld.com

12. International Congress and Convention Association The PCO: Technology Less in-house data management Increasing on-line tools Do-it-yourself service tools Cost of IT increasing IT skills KEY in staff efficiency iccaworld.com

13. International Congress and Convention Association The PCO: Finances & Fees Price (cost to client) increasingly important Transparency will kill % margins & kickbacks Selling added value instead of time: “price per service” Cash flow: a need for more cash? Client will shop around more PCO should be “client-selective” iccaworld.com

14. International Congress and Convention Association The PCO: Finance & Fees Invoicing: From % to time to added value iccaworld.com time + _ added value % $

15. International Congress and Convention Association Perspective 2: The Client iccaworld.com Competitor Client Supplier PCO

16. International Congress and Convention Association The Client: Sophistication Needs The new client iccaworld.com

17. International Congress and Convention Association The Client: Sophistication Outsourcing versus in-house Improved purchasing Knowledgeable buying Client staff moves around: ex- colleagues and ex-competitors become clients Clients increasingly become good references or barriers (they exchange ever more information) iccaworld.com

18. International Congress and Convention Association The Client: Needs Specific services rather than package solutions Will use multiple suppliers From sole risk to shared risk Will shop for simple (logistical) solutions… …but needs consulting & added value (opening for PCO’s who are ahead of the curve!) iccaworld.com

19. International Congress and Convention Association The Client: The new client Emerging markets “Between meetings” Corporates behaving like associations PCO’s creating their own events iccaworld.com

20. International Congress and Convention Association Perspective 3: The Supplier iccaworld.com Competitor Client Supplier PCO

21. International Congress and Convention Association The Supplier: Quality & price Partnerships iccaworld.com

22. International Congress and Convention Association The Supplier: Quality & Price PCO’s will increase demand for quality from suppliers: their success is the PCO’s success Price pressure from client to PCO gets passed on to supplier Same solution for supplier as for PCO: become an added value (competition on price leads to certain death) iccaworld.com

23. International Congress and Convention Association The Supplier: Quality & Price PCO’s become more knowledgeable buyers PCO’s will use purchase agreements and preferred vendor agreements iccaworld.com

24. International Congress and Convention Association The Supplier: Partnerships Contracts become increasingly important, but… …building relationships with suppliers is KEY to success (“we’re all in this together!”) Best network = winning advantage Suppliers as source of new business iccaworld.com

25. International Congress and Convention Association Perspective 4: The Competitor iccaworld.com Competitor Client Supplier PCO

26. International Congress and Convention Association The Competitor: The ones you know The other ones… iccaworld.com

27. International Congress and Convention Association The Competitor: The ones you know The strong ones will get stronger: the battle will be harder Niche-marketing PCO’s: small and nimble, picking little pieces Who’s buying who? A new way of competing The client & his do-it-myself solutions iccaworld.com

28. International Congress and Convention Association The Competitor: The ones you know Competition moves from price to skill to added value iccaworld.com skill + _ added value price C time

29. International Congress and Convention Association The Competitor: The other ones… The all-in-one event venues Convention bureaus who supply PCO services DMC’s who expand their services Marketing agencies & PR agencies (ditto) AV agencies, production companies (ditto) iccaworld.com

30. International Congress and Convention Association … and your perspective ? iccaworld.com Competitor Client Supplier PCO

31. International Congress and Convention Association iccaworld.com Today’s and Tomorrow’s PCO 44th ICCA Congress & Exhibition, Monday 7 November 2005 Thank you!