CO CHODZI NA DRUCIE ?

1

• CO CHODZI NA DRUCIE ?
• WHAT WORKS ONLINE ?
• Jacek Ciesielski
• Associate Partner
• MCI MANAGEMENT

2
E-BUSINESS

• Internet infrastructure
• Internet applications
• Internet intermediary
• Internet commerce

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
3
E-BUSINESS

• Internet infrastructure Internet backbone
  providers, Internet service providers (ISPs), web
  hosting etc.
• Internet applications software and services
  required for Internet businesses, building web
  sites etc.
• Internet intermediary portals, brokers,
  auctions, aggregation, advertising etc.
• Internet commerce sales of goods and services
  over the Internet

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
4
WHICH E-BUSINESS IS THE BEST BUSINESS ?Lessons
from the US

• top 10 online shopping sites ranked by traffic
  (August 2005)

infrastructure applications

intermediary commerce
EBay, Expedia, Shopping.com, Travelocity, Orbitz Amazon, Dell, Wal-Mart Stores, Target, Overstock.com
CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
5
WHICH E-BUSINESS IS THE BEST BUSINESS ?Lessons
from China

• structure of 72 investments by foreign VC funds
  in China

infrastructure applications
5 20
intermediary commerce
42 33
most successful Baidu (search engine), Eachnet
(auction), Alibaba (e-market)
CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
6
WHICH E-BUSINESS IS THE BEST BUSINESS ?Lessons
from Poland
infrastructure applications
Home.pl, NetArt
intermediary commerce
Onet, Allegro, Gadu-Gadu, Wirtualna Polska, AMG.net, Travelplanet, Money.pl Inteligo, mBank, Merlin, Komputronik
CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
7
E-BUSINESS MODELS

• What value does your business create ?
• traffic
• solution
• content
• products and services

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
8
E-BUSINESS MODELS

• How you can get paid for your value ?
• traffic ? advertising fee
• solution ? transaction fee
• content ? subscription fee
• products and services ? margin

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
9
E-BUSINESS MODELS

• Which business models work like this ?
• traffic ? advertising ? portal
• solution ? transaction fee ? auction, shopping
  mall
• content ? subscription ? newspapers, online games
• products and services ? margin ?
• e-tailers

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
10
EVOLUTION OF E-BUSINESS MODELS

• e-business models are the most dynamic elements
  in e-commerce
• new, innovative business models will emerge,
  driven mostly by new technology
• companies will merge various business models
• many new business models are being patented, e.g.
  by eBay, Priceline, Amazon

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
11
FORECASTS FOR PORTAL BUSINESS MODELS

• portals will have dominant power within consumer
  and business markets
• but advertising model will be continually losing
  its importance for portals
• portals will join forces with infrastructure
  providers to offer network and hosting services
• large media and entertainment portals will emerge
  to distribute text, sound, video and allow
  interactive communication and entertainment

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
12
FORECASTS FOR E-TAIL BUSINESS MODELS

• e-tail will saturate, competition will grow,
  margins will drop
• brick-and-click will be most successful, few
  profitable pure-plays will survive
• e-tailers will have to allow customers and
  business community to transact online
• many e-tailers will align closely with strong
  vertical portals to become their marketplaces

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
13
E-COMMERCE STRATEGIC QUESTIONS

• which products and services sell best online
• which business models work best online
• what are the practical guidelines for
  establishing successful online businesses

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
14
WHAT SELLS ONLINE

• data, e.g. computer software, music, information
• products, e.g. books, boxed music, consumer
  electronics
• services, e.g. banking, gaming

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
15
WHAT SELLS BEST ONLINE

• low-touch like office supplies (opposite
  fashion apparel)
• information-intensive like computer hardware,
  travel (opposite food)
• hot items like music, consumer electronics
  (opposite food)
• shrink-wrapped, branded like books, consumer
  electronics (opposite jewelry)
• low distribution costs like information,
  software (opposite food)

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
16
WHAT SELLS BEST ONLINE

• computer software
• computer hardware
• office supplies
• books
• music
• travel
• gaming

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
17
POLISH E-COMMERCEan investor's perspective

• Where we are
• about 3-5 years behind the US and most developed
  European countries
• about 1-2 years behind the most developed Central
  European country, the Czech Republic
• about 10 strong companies, leaders in their
  sectors
• still many opportunities unexploited

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski
18
POLISH E-COMMERCEan investor's perspective

• Keys to success
• do not reinvent the wheel, imitate successful
  models from abroad
• build today the company for tomorrow, so
  read the trends,
• focus on one revenue model, the most appropriate
  for your business
• fight for revenues from day one they will keep
  your business alive and moving

CO CHODZI NA DRUCIE ? WHAT WORKS ONLINE ? Jacek
Ciesielski