Elastic Path's presentation at JUMP 2011.

1. Digital “Elastic” Commerce
Right Here, Right Now
New Business Models for the instant access revolution
Oct 12th 2011
Sal Visca
Chief Technology Officer
Elastic Path Software
JUMP Conference
London, UK
Oct 12, 2011

2. Elastic Path | Technology and Expertise for the Digital Content Ecosystem
Elastic Path Software provides software and services to help the world’s most
innovative digital companies transact and interact online
Key Customer Verticals
Software Media & Publishing Telecommunications Online Services
• Consumer • Magazines • Handset Manufacturers • Subscription Content
• Enterprise • Online Content • Operators / ISP’s • Digital Marketplace
• Security • Entertainment • Cable Companies • Digital Retailers
JUMP Conference London, UK Oct 12th 2011

3. Elastic Commerce | Frictionless, Social, Everywhere
Elastic Path’s vision is “Elastic Commerce” – ecommerce that turns new
ideas into profitable systems, and is adaptable to diverse, dynamic needs
Frictionless Social Everywhere
• Transactions are • The primary source of • Products come from
accomplished in the consumer information about anywhere
context of life products is other consumers
• Sellers come from anywhere
• Buyers are presented with • Consumers drive how,
• Transactions can occur
more relevant offers when, and where they buy
anywhere
JUMP Conference London, UK Oct 12th 2011

4. Bold Statement
Traditional approaches to ecommerce are
 inadequate,
 irrelevant
 unsuitable
for companies selling digital content
JUMP Conference London, UK Oct 12th 2011

5. This isn’t your father’s shopping cart
JUMP Conference London, UK Oct 12th 2011

6. New rules for selling digital content
 Its different than physical product
 Its all about the ongoing relationship
 Entitlements vs SKUs
 People want to buy in the context of life
 New business models are needed
 APIs are no longer an option
JUMP Conference London, UK Oct 12th 2011

7. New York Times online? Paywall ?
http://www.poynter.org/latest-news/top-stories/142936/why-would-anyone-pay-to-read-the-new-york-times-online/
by Jeff Sonderman Published Aug. 16, 2011
“It turns out people will pay for things even when
payment is not required. Motivations such as convenience,
duty or appreciation are more compelling than coercion”
“Digital news is different. It is an intangible good. My
access to it does not inhibit your access to it. It has a
cost to produce, as a whole, but the cost of extending it
to one more person is insignificant. There is no natural
scarcity, so we don’t have to impose an upfront price.”
JUMP Conference London, UK Oct 12th 2011

8. Skus vs entitlements
 SKU (stock keeping unit) is completely unsuitable
 Product variations could easily produce an
unmanageable number of unique SKUs
 Manage entitlements - objects with rich and
extensible sets of attributes
 Need to rethink catalog, merchandising, discovery,
selection, etc
 Sale not over when first transaction complete
JUMP Conference London, UK Oct 12th 2011

9. New Business Models
 Freemium
 Subscriptions
 “All you can eat” plans – Netflix, Spotify, 24symbols
 Metered Content
 Trials
 App store – content from anywhere
JUMP Conference London, UK Oct 12th 2011

10. JUMP Conference London, UK Oct 12th 2011

11. New Business Models
Resistance to
£40 - £50 price
point for
downloadable
games
In-game
purchases
Free games
boost gaming
industry
revenue
JUMP Conference London, UK Oct 12th 2011

12. APIs – No longer an option
 Internet of things – explosion of devices
 Purchase in context
 Functionality and service must be exposed in a way
to enable efficient and innovative creation of user
experiences
 You need an ecosystem – always a mashup
 Integration is key
JUMP Conference London, UK Oct 12th 2011

13. General Online Store
Shoppers Store Operator
Ecommerce
JUMP Conference London, UK Oct 12th 2011

14. Marketplace
Single-Vendor
Shoppers Store Operator
e-commerce
Marketplace
Multi-Vendor
Store Operator
…
App Developers, Publishers (books, videos, music, games)
JUMP Conference London, UK Oct 12th 2011

15. Marketplace : AppStore, SuperStore ….
Online Vendor
Channel Portal
Market
Place
Approvals
• Create marketplaces for 3rd party vendors
• Sell add-on apps or services for your products
• Create new online revenue streams
JUMP Conference London, UK Oct 12th 2011

16. Profile Mgmt
 Vendor registration
Marketplace | Capabilities  Application process
 Vendor profile
 Manage users (accounts)
 Vendor agreement
 Payment types Order Mgmt
 Outstanding orders
 Completed orders
Standard Community
 Read product reviews
Storefront  Comment on reviews
Functionality  Knowledge base / forums
 Search
 Browse
Store Vendor
Product Mgmt
 Faceted Navigation Front Portal  Product creation
 Shopping Cart  Product information
 Checkout
 Payment
Market  Pricing
 Markets
 Self Service Place  Offer opt in
 Customer Reviews  Approval workflow (state)
 etc  Remove / suspend products
Reporting
 Financial
 Revenue
Catalog Mgmt Marketplace
 New product approvals Manager
 Completed orders
Vendor Portal Configuration
 Vendor registration fields
 Approvals process
Vendor Mgmt  Branding & URL
 Vendor approvals Reporting  Terms & conditions
 Application feedback  Vendor performance  Permitted payment types
 Review vendor profile  Commission payments  Commission rates
 Taxes
JUMP Conference London, UK Oct 12th 2011

17. Digital Marketplaces
 Application Stores (“AppStores”)
 Software Stores
 Online Music Stores
 Online Video Stores
 Online eBook Stores
 Online Game Stores
 (e) Commerce-as-a-Service
JUMP Conference London, UK Oct 12th 2011

18. Application Store
Single-Vendor Store
Shoppers Operator
e-commerce 5. Revenue
(70-80%)
3. App approved 2. App
and uploaded Reviewed
Marketplace
Multi-Vendor
Store Operator
App Store 1. New App
… Submitted
4. Purchase
App Developers, Publishers (books, videos, music, games)
Developer
JUMP Conference London, UK Oct 12th 2011

19. The Power of App Stores
A free application downloaded with not-so-free subsequent transactions…

20. When frictionless goes too far…

21. Summary
 Digital Goods require a Digital Commerce platform
 Selling online now requires Digital Relationship
Management
 Digital single-vendor e-commerce stores can be
expanded into Marketplaces / AppStores
 Marketplaces provide a venue for digital publishers
(vendors) of all sizes to market and sell their digital
wares
JUMP Conference London, UK Oct 12th 2011

22. Questions
For more on-demand digital commerce resources
www.elasticpath.com/resources
info@elasticpath.com
1.800.942.5282 (toll-free in North America)
www.elasticpath.com