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Investing in the Future of Lubricants-Beyond e-Commerce. Marty.Stetzer@ us.pwcglobal.com Lubricants: The New World Order Houston Conference 9/15/00. Corporate E-Commerce Kicks into Gear. Online shopping grabbed headlines, but the big money is B2B.
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Investing in the Future of Lubricants-Beyond e-Commerce Marty.Stetzer@us.pwcglobal.com Lubricants:The New World Order Houston Conference 9/15/00
Corporate E-Commerce Kicks into Gear Online shopping grabbed headlines, but the big money is B2B... Forrester estimates that by 2003, consumers will spend $108 billion to buy goods online, while businesses will spend $1.3 trillion.
Thoughts for the day Agenda outline… • What to believe? • What is different this time? • How to apply to lubricants? • What to always keep in mind? • How will we get beyond e-Commerce?
We know Lubes Business Our capabilities… • Personal corporate career • Respected client engagements • PwC wrote the book on EDI & E-commerce • Working with 29 industry exchanges
Lubricants - a very Complex Business Web Promise Profitable, but complex... Retail - Multiple channels - DIY, DIFM, DDIAA - Mass Merchandisers Wholesale - Distributors - Bulk - Industrial Specialty - Synthetics & greases - Segmented markets Marine & aviation Specialty oils Community Leverage Supply Chain Optimization Mass Customization
e-Commerce Then EDI Computerized Company-to-company exchange Of routine business information In an industry standard format Often using a 3rd-party network A “BreakthroughTechnology!”
e-Commerce Then and Now EDI Web Promise Computerized Networked Company-to-company exchange B2B Exchanges Of routine business information Catalogs PO’s & Invoices In an industry standard format Multiple industry XML groups Often using a 3rd-party network Internet unlimited “free” bandwidth “Break ThroughTechnology!” “DisruptiveTechnology”
What is Different This Time? Pwcmoneytreesurvey.com The cash keeps coming... Think a jittery stock market is striking fear in the hearts of VC’s? Think again. Venture firms poured $200 million a day into companies from April to June, funding more than 100 businesses a week. Venture-capital Investment by quarter Internet accounted for 60% of all VC money during 2nd qtr. Data PricewaterhouseCoopers
B2C Provides Insight Making sense of it all... Convergence IndustryTransformation Change to business Value ChainIntegration Channel Enhancement Enabler Transformer Role of E-Business
B2C Leaders Key B2C technology and business innovators... Convergence IndustryTransformation Change to business Value ChainIntegration Channel Enhancement Enabler Transformer Role of E-Business
Project Lucerne New Business Models PwC - Getting Beyond eCommerce Like clients, our own @.com experience grew... workshopdownstream.com Lessons learned Project Madrid Process View 1998 1999 2000
Lubricants: Marine Example Customer focus very important… • Customers • Maersk • Stolt Nielson • SUVA • NYK • Exxon • Mobil • BPAmoco • Stenna
New @.com customers SHIPIQ LevelSeas Sealogistics Shipdesk Lubricants: Marine Example Exchanges - customers or competitors… • Historic Customers • Maersk • Stolt Nielson • SUVA • NYK • Exxon • Mobil • BPAmoco • Stenna • ShipChem • Bulknet • GoCargo • Bunkerworld • OceanConnect
Partners Organization Technology Making Sense of it All The right order is critical... Business Strategy An iterative process...
Now vs. Then Exchange thinking needs more discipline than EDI… Now Web Exchange Promise Then EDI • Content rules • Catalog driven • Think big • Diffuse • Global window • Strengthen call center • 24*7 from anywhere • Evolving • Less stable • 20/80 Rule • Efficiency • Term Contracts • Concentrated • Inter-organizational • Bypass call center • Disciplined • Standards • More stable Partners Organization Technology
Lubricants Future beyond E-Commerce Global connectivity is the "disruptive" technology… • Enables a new thoroughness in decision process • Lube business can achieve dividends • Lessons to be learned from others • All successful models have defensible business case • Stay open - no single solution dominant
In Conclusion Key lesson learned was speed, now it is sustainable business proposition “Every time I get this new E-business thing figured out, some start-up wrecks my business model.” - GM Senior Vice President