Making The Net Work For B2 B

AribabAribabaa

Making the net work for B2BMaking the net work for B2B

Team Team

AribabaAribaba여완현여완현 , , 이중협이중협 , , 조병성조병성

A R I B A

http://www.kaist.ac.kr/Information/image/logo13.gif

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ContentsContents

I. BackgroundI. Background

II. Major Business ItemsII. Major Business Items

& Services& Services

III. Core CompetenceIII. Core Competence

IV. Major Competitors IV. Major Competitors

& Benchmarking & Benchmarking

V. Performance & ProfileV. Performance & Profile

VI. SWOT AnalysisVI. SWOT Analysis

VII. Strategic PositionVII. Strategic Position

VIII. Competitor’s PostureVIII. Competitor’s Posture

IX. Revenue Model IX. Revenue Model

X. Building Value through NetworksX. Building Value through Networks

XI. Future Core Competence XI. Future Core Competence

ContentsContents


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I. Background (1)I. Background (1)

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A leading provider of Internet-based B2B EC solutions

Ariba.com Network:

A single global B2B EC network

Enable buyers and suppliers to automate business transactions on the Internet

Operating Resource Management System (ORMS application) enables organizations to automate the procurement cycle

Lowering the costs associated with operating resources and other materials

Founded in September 1996, CA

Development stage (1996.8. ~ 1997.3)

Conducting research and developing initial products


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Began selling products, services in the U.S., Europe, Canada, Australia

and Asisa (1997.3)

386 Employees (1999.9) --> Over 1,100 Employees world wide (2000.4)

Acquisition:

1999.11, Trading Dynamics, a leading provider of B2B Internet

trading applications, $ 500M

1999.12, TRADEX Technologies, a leading provider of solutions for

Net Markets, $ 2 B


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CEO:CEO:

Krach, Keith J.(42), Chairman of the Board, Chief Executive Officer

A co-founder of ARIBA

From March 1996 to September 1996, an Entrepreneur in

Residence at Benchmark Capital

From October 1988 to August 1995, Chief Operating Officer of

Rasna Corporation, a mechanical computer-aided design automation

software company

Held various positions with General Motors, including General

Manager and Vice President of GMF Robotics


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1997 1998 1999 2000 1st quarter

Revenue 760 8,363 45,372 92,500

Gross profit (180) 6,825 36,559

Net loss (4,679) (10,953) (29,300) (10,300)

Net loss / share

No. of shares

(3.66)

1,279 11,524 35,032

(0.95) (0.84)

(in $thousands)

Financial Data:Financial Data:


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II. Major Business Items & Services (1)II. Major Business Items & Services (1)

Ariba Service Architecture:Ariba Service Architecture:

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PRODUCT ORDER

SUPPLIERS

ARIBA NETWORK

ARIBA SOLUTIONS

Other ERP

Accounting

APPROVER

END USER


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Ariba B2B Commerce Platform:Ariba B2B Commerce Platform: offers a single system for managing all buying, selling and marketplace commerce processes

Ariba B2B Commerce Platform offers a single system for managing all buying, selling and marketplace commerce processes

Ariba B2B Commerce Applications include a core set of master components: B2B Procurement, B2B Marketplace, B2B Dynamic Trade and B2B Collaborative Commerce

Ariba B2B Commerce Services include a broad set of network-based solutions that enable customers to accelerate their deployment while increasing the breadth and scope of their solution


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Application Business: Application Business: Ariba B2B commerce applications, Ariba B2B commerce services

ApplicationsApplications

• Master components: B2B Procurement, B2B Marketplace, B2B Dynamic Trade

and B2B Collaborative Commerce

• Interchangeable components : Catalog & Content, Reporting & Analysis,

Supplier Enablement and Messaging & Integration

Servic

es

Servic

es• Network-based,open model(interoperability)

• Transaction routing service, supplier & content service, sourcing & liquidation

service, payment & financial service, logistics & fulfillment service, information

& analysis service


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Intermediary Business: Intermediary Business: Buyer Network / Supplier Network

Buyer NetworkBuyer Network

• easy for buying organizations to conduct eCommerce with their supplier community

• buyers can find new suppliers and source products, add or change their supplier

eCommerce relationships, and automate the acquisition and management of operating

resources from requisition to payment–easily and efficiently

Supplier NetworkSupplier Network

• Allows suppliers to more efficiently do business with existing clients by reducing

transaction costs and facilitating the exchange of content and transactions over the

Internet

• suppliers are able to leverage a single registration with the Ariba Network service to

conduct business with any buying organization using the Ariba ORMS™ application

worldwide


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Ariba Solutions: Ariba Solutions: ORMS, ORMX, IBX

• Enables business buyers to get the goods and services• Provides content access, routing and approvals, and ERP integration • Enables business buyers to get the goods and services• Provides content access, routing and approvals, and ERP integration

• Version of the ORMS for use in an ASP environment• Version of the ORMS for use in an ASP environment

ORMSORMS

ORMXORMX

IBXIBX

IndustrySolutions

IndustrySolutions

• Internet Business Exchange service• A hosted Internet service that enables corporations and Net market makers to quickly build electronic marketplaces

• Internet Business Exchange service• A hosted Internet service that enables corporations and Net market makers to quickly build electronic marketplaces

• Ariba Consumer Product Solutions, Ariba Energy Solutions, etc.• Ariba Consumer Product Solutions, Ariba Energy Solutions, etc.

Ariba.comNetwork

Ariba.comNetwork

• Delivers supplier directory services, seamless access to supplier content, transactions routing b/w buyers & suppliers, and value-added services• Electronic payment, logistics integration, and dynamic pricing

• Delivers supplier directory services, seamless access to supplier content, transactions routing b/w buyers & suppliers, and value-added services• Electronic payment, logistics integration, and dynamic pricing


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III. Core CompetenceIII. Core Competence

Customers

다양한Reference site

선진업체와의전략적 제휴

First MoverAdvantage

• 다수의 회원수 확보• 사이트 신뢰성 제고

• 선진업체와의 전략적 제휴• 첨단 기술력 및 시장 확보

• 높은 시장 인지도 • 진입장벽 구축

기술력기반

B2B EC 에 대한 핵심 기술력 및 솔루션 보유

ARIBA

Core Competence: Core Competence: Technology-based, Reference sites, Strategic alliance, First mover advantage


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IV. Major Competitors & Benchmarking (1)IV. Major Competitors & Benchmarking (1)

전통적 전통적 ERP ERP 기업기업 :: i2 Technology, SAP, Oracle, PeopleSoft, Baan

1. Web-enabled e-commerce applications 를 공격적으로 출시 중2. ERP 가 Communications 과 Commerce 를 주도 하고 , 인터넷과 그것의 Open Network 형식을 통한 새로운 기회 존재

Web-based Commerce EnablersWeb-based Commerce Enablers

1. Ariba, CommerceOne, Intelisys: 모든 산업카테고리를 포함하고 ,

Browser-based, XML-enabled, Purchasing automation software 를 개발2. AltraEnergy, Bidcom: 산업별로 특화된 Commerce Solutions 을 제공3. Harbinger, SterlingCommerce: EDI Network Solutions 을 개발해 옴4. SmartAge, BigStep: 중소기업을 위한 웹페이지와 Back-ends 를 개발


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IV. Major Competitors & Benchmarking (2) IV. Major Competitors & Benchmarking (2)

Horizontal Marketplace:Horizontal Marketplace:

1. VerticalNet (Aggregated communities model): 40 개의 Vertical Marketpalce 의 집합체로 , Vertical Community 나 Industry 에 따라 서비스를 분리해서 제공

2. TradeOut.com (More integrated marketplace model): 광범위한 산업부문에 대해 서비스 제공 , 경매주선 , 제품카테고리에 따라 서비스를 분류

3. Ariba.com Network, MarketSite.net, eCommerce Potal

Vertical Marketplace:Vertical Marketplace: Chemdex, e-STEEL, PlasticNet, PaperExchange


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IV. Major Competitors & Benchmarking (3) IV. Major Competitors & Benchmarking (3)

1999

Revenue 45M 33M 571M

Net Income(Loss)

(29M) (63M) 23M

EPS (0.42) (0.74) (0.14)

PSR( Price-selling Ratio)

MarketCapitalization

124.11

14.6B 8.65B 18.42B

98.68 29.31

주요 경쟁사와의 주요 경쟁사와의 Performance Performance 비교비교

Stock Price(Present/IPO)

(52-week Range)

76 / 23 55 / 21 117 / 20

15-183 4-165 13-223

Net Income 에 있어 Ariba 와 CommerceOne 과는 달리 i2 는 이익을 얻음

Stock Price 는 i2 에 비해서는 낮지만 , CommerceOne 보다는 높게 나타남

시장가치 (M/C) 는 CommerceOne 보다는 높게 , i2 보다는 낮음


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V. Performance & Profile (1)V. Performance & Profile (1)

Income Statement

CostSales

EPS

Balance Sheet

Gross profitNet income

Gross margin %

Long-term debtMarket cap.

Total asset

Last 12 mos.

-92.6

-0.96

--157.489.8

-13,263

-

Sep 1999

7.445.4

-0.42

38.0-29.383.7

0.86,566

170.0

Sep 1998

0.94

-0.48

7.5-10.989.3

0.6-

19.2

급격한 신규 고객 증가와 솔루션 수요 발생으로 인한 매출 증가

사업 확장에 따른 sales commission & amortization 증가로 인한 net loss 의 증가

For the 3 months ended in 03/31/2000, revenues were $40M

(in $millions)

Financial SummaryFinancial Summary


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ARIBA

WeaknessWeakness

OpportunityOpportunity

StrengthStrength

ThreatThreat

VI. SWOT AnalysisVI. SWOT Analysis

- Global Network

Service에 대한 조금 늦은 출발 - 계속되는 적자 누적- 급속성장에 따른 조율문제

- 경쟁 심화 ( 동종기업 )- 새로운 경쟁기업 등장 (SI,IT 업체 등 )- Marketplace 의 경쟁- 다양한 업종 / 기업 문화 적용- 장기적 수익구조의 한계

- 인터넷 시장의 성숙- BIZ 패 러 다 임 의 변 화 (B2B,ERP,SCM,CRM)- Marketplace 의 확장

- 다양한 수익모델 구조

- 선진업체와 전략적제휴로 서비스와 기능의 다양화 수직적 산업의 시장 창출자

- First mover advantage

- 다양한 솔루션 및 기술력 보유- 다양한 reference site- 선진회사와의 제휴


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VII. Strategic Position VII. Strategic Position

• 인프라 구축• Building Credibility

• Transaction 관리• 정보의 분석 / 축적

• Complementary commerce services• Strategic alliances with other marketplaces

• Building value through networks• Globalization

2000 2001

Ariba.com marketplace evolutionary path

2002

Mark

et e

fficie

ncy &

scale

B2B MarketplaceB2B Marketplace 를 선도하기 위한 단계적 전략 를 선도하기 위한 단계적 전략


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VIII. Competitor’s Posture VIII. Competitor’s Posture

• BC 카드 를 소유한

국내외 고객• BC 카드 가맹점

ARIBAARIBA CommerceOne CommerceOne

Size

of

Marke

t

Degree of Market Inefficiency

Size

of M

arke

t

Degree of Market Inefficiency

Real Estate Financial Svc.

Business Svc. Energy

Telecom Svc. Healthcare

Construction

Transportation

Small Biz.

Electronics Industrial

Equip.

Food Chemicals

Autos Metals

Paper Products

Apparel

Life Science

Real Estate Financial Svc.

Business Svc. Energy

Telecom Svc. Healthcare

Construction

Transportation

Small Biz.

Electronics Industrial Equip.

Food Chemicals

Autos Metals

Paper Products

Apparel

Life Science

Source : www.fatex.com

Size of Market : 시장 규모

Degree of Market Inefficiency : Supply Chain 상의 불합리성 정도


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IX. Revenue ModelIX. Revenue Model

Revenue Model: Revenue Model: 기본적으로 5 개의 수익창출 비즈니스 모델 구현가능

Transaction Fees: Buying & Selling

Contents Subscription

Software Licensing

sale

s tr

ansa

ctio

n수수

료

ORMS

Licensing feeAuctio

n

Com

missio

n

Access feeLink

service

광고 스페이스 제공

광고료

• Software licensing• 유지 / 지원 서비스• 컨설팅 / 교육

단기단기

• Transaction fees

( 경매 , bid, exchange)• 광고 수입

중기

• Full service Marketplaces

(Value added services

/ Data analysis service)

장기

A R I B A

AdvertisingFees Auction-

Driven Commission


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X. Building Value through NetworksX. Building Value through Networks

B2B Grand Finale : B2B Grand Finale : eMarketplace interconnetion

www.novopoint.com : Ariba - Cargill 의 제휴 , Food & Beverage marketplace

Seeds eMarketplace

(1),( 7)

FertilizereMarketplace

(2)

FinancingeMarketplace

(5)

InsuranceeMarketplace

(4)

LogisticseMarketplace

(3)

Buyers

FoodeMarketplace

(6)

Entry point

(1) Select seeds for soybean crop(2) Identify potential fertilizer choices from fertilizer eMarketplace(3) Receive freight quotes from logistics eMarketplace(4) Provides quotes for potential insurance from insurance eMarketplace(5) Financial institutions bid to provide credit to cover the seeds, fertilizer, and shipping at financial eMarketplaces(6) Identify potential buyers of soybean crop and build pre-contract(7) Selections are made and the transaction is completed at the seeds eMarketplace


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XI. Future Core Competence XI. Future Core Competence

Critical Success FactorsCritical Success Factors

ARIBA

Liquidity

Credibility

Reliability&

Security

Ease ofUse

Strategic

Partners

DomainExpertis

e

• Neutral Organizations• 해당 산업군에서의 입지구축과

Visibility

• 24 시간 이용 가능한 Robust,

scalable, open platform 을 제공• 신뢰할 수 있는 보안수준 보장

• Critical Mass & Credibility 를 위해 필수적• Technology & Service Partnerships

• 해당 시장의 players, business process,

& key inefficiencies 에 대한 핵심지식보유• User Friendly

Interface

• Trading Community 필수조건


Making The Net Work For B2 B

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