E-Business is Business PricewaterhouseCoopers

1. E-Business is BusinessPricewaterhouseCoopers November 22, 1999

2. Discussion Topics • Our View of E-business • PwC’s Commitment to E-Business • Vendor Landscape • Service Offerings • Our Capabilities

3. E-commerce: • Marketing • Selling • Buying of products and services on the internet Our Definition of E-Business • E-Business is improving • Business performance through • Connectivity: • Deploying the new technologies inthe value chain to achieve transparency/visibility • Connecting the value chains between and across businesses; and between business and consumers • In order to: • Improve service/reduce costs • Open new channels • Thereby transformingcompetitive landscapes

4. Benefits Value resulting from eBusiness opportunities comes in many forms Newrevenue streams Although eBusiness can provide multiple opportunities, we can help you assess where focus is needed to obtain the highest value proposition Value Creation Higher returns on investment Reduced costs / overhead Improved customer service

5. Our research shows that E-Business will impact the areas that CEOs are most concerned about E-Business Impacts 1 Building customer loyalty 2 Achieving market leadership 3 Streamlining business processes 4 Creating new products/services Percent responding 5 Managing “risk and compliance” 6 Reaching new markets Source: PricewaterhouseCoopers Research, 1998

6. Based on our experience, we see four clearly identifiable stages of maturity in E-Business evolution Convergence IndustryTransformation Degree of change to business model Value ChainIntegration Channel Enhancement Enabler Transformer Role of E-Business

7. Discussion Topics • Our View of E-business • PwC’s Commitment to E-Business • Vendor Landscape • Service Offerings • Our Capabilities

8. 15% - 20% of our global revenues last year came from the “E” space We are investing almost $2 Billion in E-Business over the next two years Training 2,000 Partners and 10,000 staff trained this year Equity Investments Design Agencies (e.g., Methodfive, Studio Interactive) ASP - (e.g., Intel On-line Services) Software Development Joint Ventures (e.g., i2) New Business Opportunities Development of E-business COE’s and Solution Centers We are integrating E-business in every aspect of our service offerings and our infrastructure and back office operations E-Business is One of Our Top Strategic Priorities

9. E-Business Center of Excellence PricewaterhouseCoopers consultants have access to a number of resources and tools that can be leveraged to help deliver high-quality E-Business solutions to clients. The advantage of these resources for Enron is that they can be used to jump-start the project as well as facilitate the development of the business capabilities vision and the technical infrastructure. The E-Business Paks are a series of thought leadership pieces that reflect PricewaterhouseCoopers perspective on eBusiness and serve as valuable project tools. The eBusiness KnowledgeSource Lotus Notes database gives practitioners value-added, practical information that can help them in creating eBusiness solutions for clients. eBusiness KnowledgeSource eBusiness Paks The Electronic Business Outlook is a monthly publication that focuses on a different topic in each issue. Electronic Business Outlook PricewaterhouseCoopers maintains a global network of highly knowledgeable eBusiness consultants that exchange eBusiness ideas, experiences, and practices. Global Champions Network eBusiness Center of Excellence Vendor Relationships PwC Best Practices in eBusiness PricewaterhouseCoopers develops and maintains relationships with leading eBusiness vendors. PricewaterhouseCoopers leverages these relationships to deliver outstanding solutions and experienced consultants to our clients Channel.Connect leveraged software eBusiness Technical Architecture Model PricewaterhouseCoopers Best Practices in eBusiness is a program that brings together a dozen leading companies that regularly share insights into eBusiness implementation strategies and, through expert insights from PricewaterhouseCoopers and others, identify best practices that drive their priorities. The eBusiness Technical Architecture Model includes five major components that are key focus areas that must be included in a successful design and implementation. Critical components are decomposed into capabilities and functional elements. These areas include presentation, application, web infrastructure, enterprise adaptation layers, and security. PricewaterhouseCoopers built an eCommerce infrastructure based on reusable components having capabilities such as product configuration, product ordering, pricing, cataloging, and available-to-promise with real-time integration to SAP, multiple legacy order management systems, and Siebel. This architecture is leverageable at clients to jump-start eBusiness initiatives.

10. Manage Customer Order Procure Materials/ Services Manage Logistics/ Distribution Manage Customer Care Manage Financials Perform Marketing Develop Products Produce Products Perform Sales Credit Application Order Status Inquiry Payment Instructions Payment Advice Carrier Status Confirm Receipt Leads Catalog Pricing Quote Configure Order Ackn. Credit Status Availability Order Status Service Support Documents Invoice Cash Mgt. Taxes Ship Notice Notify Carrier Carrier Status Credit Application Order Status Inquiry Payment Instructions Payment Advice Carrier Status Confirm Receipt Catalog Pricing Quote Configure Order Ackn. Credit Status Availability Order Status Service Support Documents Invoice Cash Mgt. Taxes Ship Notice Notify Carrier Carrier Status The E-Business Value Chain The E-Business enabled value chain increases competitive advantage by linking disparate organizations together to form collaborative, interactive and pro-active environments. Customers High-Tech Company Manage Customer Order Procure Materials/ Services Manage Logistics/ Distribution Manage Customer Care Manage Financials Perform Marketing Develop Products Produce Products Perform Sales Manage Customer Order Procure Materials/ Services Manage Logistics/ Distribution Manage Customer Care Manage Financials Perform Marketing Develop Products Produce Products Perform Sales Suppliers

11. Discussion Topics • Our View of E-business • PwC’s Commitment to E-Business • Vendor Landscape • Service Offerings • Our Capabilities

12. Perform Marketing Develop Products Perform Sales Manage Customer Orders Procure Materials/ Services Produce Products Manage Logistics/ Distribution Manage Customer Service The E-Business Vendors Our deep relationships with E-Business vendors and our knowledge of the market allow us to offer a comprehensive and customized portfolio of solutions which best suit the needs of your enterprise in solving your E-Business issues. Internet Marketing • ATG • Broadvision • Exchange Applications • Interworld • Open Market • Prime Response • Siebel • Trilogy • Vignette Internet Sales • Broadvision • Interworld • Intershop • Vignette • ATG • Open Market • Pandesic • Trad’Ex • i2 • Siebel Order Capture • Interworld • Broadvision • Open Market • Vignette • ATG • i2 • Pandesic • Siebel • Vantive E-Procurement • (Indirect) • Aspect • Actra • Ariba • CommerceOne • TradEx • Intelisys Direct Procurement • Extricity • Bluestone • Tibco • i2 • Active • Vitria • Electronic • Supply • Chain • i2 • Manugistics • Extricity • Tibco • Active • Vitria • Bluestone • Warehouse & Logistics • Extricity • i2 • Manu-gistics • Shipping • FedEx • UPS • Call Center • Siebel • Vantive • Clarify • Brightware • Field Service • Siebel • Vantive • Customer Service • Siebel • Vantive • All Order Management vendors Component and Supplier Mgmt • Aspect Call Center • Siebel • Vantive • Clarify • Brightware Product Configurator • Calico • Trilogy • Selectica • Firepond • ERP: Oracle, PeopleSoft, SAP

13. E-Business Sell Side Vendor Functional Mapping Back End Integration Personalization Content Management Shopping Basket Catalog *Content Creation *Workflow approval *Change Management *Content caching *Order Management *Payment completion *Legacy System Integration tools *Add items to basket *Accept shipping information *Add tax *Accept payment information *Browse Products *Product Pricing *Product Promotion *Cross Selling *Registration *Recommendations *Matching/Profiling *Activity monitoring Enterprise Class Solutions Vignette Story Book and Syndication Servers OpenMarket FutureTense, Transact, LiveCommerce, ShopSite Servers Broadvision Enterprise Solution Third Party ATG Dynamo Solution Interworld Microsoft Commerce Site Server Netscape Firefly Intershop Net Perceptions Interworld Teamsite Icat

14. Discussion Topics • Our View of E-business • PwC’s Commitment to E-Business • Vendor Landscape • Service Offerings • Our Capabilities

15. E-Business Issues To Be Considered Issues Decisions Stickiness What product / service features create loyal customers? How can Enron best leverage its vast and multiple relationships with customers and partners? Customer Ownership How can the content and product assets best be leveraged? Cross-Promotion How can customer management, content management and commerce processing / fulfillment processes be addressed to optimize effectiveness and efficiency? Operational Efficiency Where is it appropriate to focus on consortia approaches to filling customers’ E-Business needs? Industry Alliances Tax Optimization How do you define and control your tax footprint? Security and Infrastructure How do you ensure a secure and trusted E-commerce site?

16. How We Approach an E-business Job We can help you align your business strategy to drive eBusiness opportunities Strategy Long term business direction defines the way to organize, conduct and enable your business. Process Blueprint Organization Blueprint Technology

17. Service Offerings We specialize on providing seven key service offerings to our clients in chosen industry segments: • E-Business Strategic Planning - Developing a vision with our clients on how to utilize E-Business capabilities to gain competitive advantage in their changing industry. • E-Business Readiness - assessment of a company’s readiness for E-Business • Business Visioning - developing a “business strategy” which includes E-Business capabilities • Operational Planning - developing an approach for how to change process to take advantage of E-Business • Web Site Strategy - developing a tactical strategy for how to go to market via the internet • E-Business Organization - developing an effective organization • Content Management - management of the information used to support channels to market, such as text, graphics, pricing information, royalties, contracts, etc. • Direct Connections to Customers - Directly connecting our clients to their customers (partners and customers) to enhance customer loyalty, improve customer service, enable self-service capabilities and to better manage the customer relationship. • E-Store and Self-Service - giving a customer direct access to products, ordering, status, etc. • Customer Care - management of the customer relationship through profiling and customer support

18. Service Offerings • Extending the Enterprise - enabling the supply chain through extending real-time communication outside the walls of our clients in order to increase efficiency and speed time to market while reducing inventory and cost. • Electronic Procurement - enabling the procurement of goods and services through real-time access to pricing and ordering functions • Collaborative Planning - the building of products in a teaming approach with suppliers enabling the movement from inventory based models to make to order models • Supply Chain Replenishment - the automated forecasting of usage and logistical movement of goods • Bill Presentment/ Payment - Enabling an organization to achieve retail banking capabilities online through automating the billing process using integration with external financial providers over the internet. • Web Architecture Strategy and Design - Preparing our customers to address a 24 by 7 world with performance requirements beyond traditional system capabilities through the review of existing environments and the design of infrastructures to support the new paradigm. • Technology Architecture Design and Deployment • Security Architecture Design and Implementation • Digital Security Implementation / Integration • Full Service PKI Support • Attack and penetration and testing • Cybercrime Risk Management and Integration

19. Service Offerings • Tax Strategy - Addressing tax matters early in the process can create additional competitive advantages. • Tax Footprint can be defined and controlled. With proper planning, we can control taxable presence and reduce overall effective tax rates. Indirect taxes, such as VAT and sales tax are affected by where we buy, build and sell. • Tax Characterization rules do not provide clear treatment of transactions. Planning can alter the tax character of products and services. • Compliance And Workflow Systems must be updated to keep pace with the rate of change. E-business affects tax departments just as it affects all other businesses and functions. • Policy will determine future taxation, reduce existing uncertainty.

20. Discussion Topics • Our View of E-business • PwC’s Commitment to E-Business • Vendor Landscape • Service Offerings • Our Capabilities

21. Sample of Our E-Business Clients • Ford • General Motors • Ginnie Mae • Goodyear Tire Corporation • Grand Union • Hamburg Savings Bank • Handelsbanken • Hershey Foods Corporation • Hewlett-Packard • Hydro-Electric Corporation • Internal Revenue Service • Iomega • Johnson & Johnson • Lucent • Major Aerospace Equip Manufacturer • mbanx • McGraw Hill • MCI Communications • Microsoft • Motorola • Nabisco • Natwest • NECX • New York New Media Survey • Nippon Telephone & Telegraph • Nissan • Panasonic Factory Automation • Pepsi Cola - North America • Pfizer Pharmaceuticals • Phoenix Home Life Insurance • Pinkerton • Pointcast • Abbott Labs • Advanta • Allmerica • American Airlines • American Express • Anheuser-Busch • AIAG • AT&T • AUTIF • Bank of Ireland • BASF • Bell South • Bristol-Myers Squibb • Cable Advertising Bureau • Cambridge University Press • Cendant • Charles Schwab • Citibank • Citicorp • Compaq • Con Edison • Concert • Coors • Cytec • Deutsche Post AG • Eastern European Equity • EI Dupont • Eli Witt • ESM Consortium • First Union Bank • Procter and Gamble • Prudential Securities • QualEx • Reuters • SAP • SGZ Bank • Societe Generale • Simon & Schuster • SMART Shopping / Consumer Direct • Sony Pictures Entertainment • Star Enterprise • State of California Insurer • Storage Tek • Sun Trust Bank • Sun Microsystems • Tetra Pak • Thomson Consumer Electronics • United News Media • UPS • US Department of Defense • US Department of Education • US Department of Interior • US Postal Service • US Navy • US Department of the Treasury • US Postal Service • VISA • Warner Lambert • Whirlpool

22. Regional Bell Operating Company • We were engaged by this RBOC to take their existing 106 web sites and incorporate them into a common Internet architecture. Key Business Issues Each of the 13 business units have managed their own internet presence which creates multiple brand images, multiple faces to the customer and lack of business process and systems integration throughout their existing 106 sites. Solution Approach E-Business Strategy and Implementation • The solution leverages Interwoven for content management, Broadvision for dynamic rendering and personalization and Open Market Transact as shopping cart and on-line ordering. • During Phase I, we are moving all 106 externally facing web sites to a consolidated "Internet Operations Center"-IOC. Currently, as many as 86 of the sites are hosted externally. This move will allow for the company to control updates and security of the sites • In Phase 2, we will implement as much of the existing business unit sites (still in a silo) on the new technologies and utilizing the new vendor products. This will be the initial re-design, re-branding, and re-wrapping of existing sites. The goal is to cut the number of sites in half. • In Phase 3, all sites will be implementing on the new technologies and completely utilizing the new vendor products. This will be the second phase of re-design, re-branding, and re-wrapping of sites. At this point, all sites will have a common look and feel as well as integration. • The user experience that is personalized to the customer’s profile. For example, the user could go on-line, login and see their cell phone bill, residential bill, and pager bill all on one consolidated bill. They could pay the bill via credit card, EFT, or digital wallet. In addition, they could perform real-time updates to any of their service plans or cancel service. This phase also provides for a complete eStore shopping experience, and provides a mechanism for people to sign up for new service Results • In Process

23. Tetra Pak • TP is aggressively pursuing the use of E-Business as a key to work more closely with it’s customers. Customers will have access to their relevant information on TP systems and will subsequently be able to transact business directly over the web with TP. This will improve processes quality and efficiency for both TP and it’s customers, thereby also raising customer satisfaction. Key Business Issues • Leverage the Internet to provide foundation for transacting business. • Drive increased, better and faster collaboration with customers. • Increase customer satisfaction. • Gain competitive advantage. E-Business Strategy and Implementation Solution Approach TP is following a tiered E-Business implementation strategy by first providing key customers access to relevant customer information into TP’s systems via the web. Subsequently, this will involve increased interaction with the customers, followed by transaction support linking into its SAP backbone. The PricewaterhouseCoopers/TP project will deliver a TP hosted Extranet site, leveraging PricewaterhouseCoopers’s Channel.Connect software, to share and collaborate customer specific information and its customers. The notion of a single portal is key to TP’s strategy. Extensive customer research and requirements conducted by TP and the E-Business project are guiding the development efforts. The US is the pilot for a global implementation. Results • Construction stage in process with September 1999 implementation for Phase 1.

24. U.S. Postal Service • The overall goal of the project was to integrate scores of existing web sites supported by disjointed technologies and presented with uncommon interfaces into a cohesive Web presence. PricewaterhouseCoopers is responsible for assisting with the design and implementation of the redesigned web site including design and deployment of a state-of-the-art content management tool, conversion of all existing content to the revised format and potential deployment of an electronic commerce application. Key Business Issues USPS sought input and recommendations from PricewaterhouseCoopers on marketing direction, segmentation and product integration, and, the design of an enterprise-wide system architecture including security. Finally, PricewaterhouseCoopers assisted in the evaluation and recommendation of content management and e-commerce tools. E-Business Strategy and Implementation Solution Approach Focusing on development activities, PricewaterhouseCoopers performed an 8-week analysis of industry-leading content management applications. Upon completion of this analysis, PricewaterhouseCoopers was positioned to recommend BroadVision’s One-to-One Enterprise solution as thesoftware package that best met the requirements of the USPS. Next, PricewaterhouseCoopers’s development resources, trained and experienced in BroadVision capabilities, built and implemented a functional design specification based on the One-to-One Enterprise. This specification outlined the approach for extending BroadVision’s database architecture to meet specific USPS data requirements, integration of design templates, script components and HTML files, and customization of BroadVision’s Dynamic Command Center and Publishing Center Tools. Results In--process with a projected launch in the Fall of 1999.

25. Procter and Gamble • Procter and Gamble has launched a strategic Internet effort aimed at their direct and indirect customers. PricewaterhouseCoopers helped Procter and Gamble select their strategic E-Business software architecture and we were then selected to develop and implement the solution. Key Business Issues • Determine the feasibility of leveraging the internet as a means to go after virtual coverage of P&G’s indirect customer base, thereby increasing reach for P&G products • Determine if P&G can increase P&G “speed to market” with customers by leveraging the internet as a means of driving the sharing and collaboration of data on more a real time basis. • Quantify customer capability and interest in Business to Business Electronic Commerce. Determine what business processes are best suited to the internet. • Determine if P&G can leverage a 3rd party E-Commerce application in such a manner that is scaleable and sustainable across the organization, and allows the personalization at a user, customer, or channel level. • Mechanize feeds from back-end systems to support key customer work processes, as appropriate. E-Business Strategy and Implementation Solution Approach • Art Technologies Dynamo produce selected as architecture. • Rapidly pilot the solution. • Develop customer feedback mechanisms and processes necessary to prioritize and implement recommendations. • Prioritize and continue development. • Develop implemenation and roll-out strategy. Results • Development in process and scheduled for a 4th quarter implementation.

26. Thomson Consumer Electronics • PricewaterhouseCoopers performed E-Business work for Thomson Consumer Electronics in the Dealer and Direct-to-Consumer areas of the business. This work involved strategic consulting, process improvement, software development and technical infrastructure. Key Business Issues TCE wanted to sell their products to dealers and consumers over the web. Although the initial scope included the U.S and Canada, TCE expects to market their products globally via the web in the future. The solution developed had to be scaleable and extensible to address future needs. Solution Approach E-Business Strategy and Implementation • In the Dealer space, PricewaterhouseCoopers designed and developed the Thomson Dealer Network (TDN). TDN serves as a single internet portal for Thomson and its dealers to conduct business electronically. TDN is a global application that offers dealers a product catalog, online ordering, order status, marketing/promotional information and service-related information. • PricewaterhouseCoopers was also asked to help Thomson create an overall E-Business strategy for the corporation. PricewaterhouseCoopers conducted a company-wide E-Business assessment and envisioning project where E-Business opportunities were quantified, scoped and prioritized for implementation. One of the key opportunities to emerge out of the strategy project was Direct-to-Consumer. PricewaterhouseCoopers built the business case and strategy for Thomson to sell products directly to consumers over the internet. Results • Over 1,000 dealers on-line. • Global rollout in progress. • Direct-to-consumer goes live in 4Q99.