Digital "Elastic" Commerce - Right Here, Right Now - Jump Conference 2011
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The document discusses how traditional approaches to e-commerce are inadequate for selling digital content in today's environment. It outlines how digital content is different from physical products and requires new business models focused on ongoing customer relationships and entitlements rather than individual purchases. The presentation advocates for e-commerce platforms that enable frictionless and ubiquitous transactions through open APIs and marketplaces.
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Digital "Elastic" Commerce - Right Here, Right Now - Jump Conference 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 [email protected] 1.800.942.5282 (toll-free in North America) www.elasticpath.com
Editor's Notes
- #10: AppleAppStore, Android Market, Amazon AppStore, Appia (PocketGear) white-label , Getjar,