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1 Gartner delivers the technology-related insight necessary for our clients to make the right decisions, every day.

2 The Digital Commerce Challenge "By 2017, due to Internet-enabled price visibility, the digital customer experience will be the key differentiator of your organization." Your Site "By 2018, more than 50% of commerce sites will integrate technologies from more than 15 vendors to deliver a digital customer experience." "During the next 3 years, 60% of digital commerce analytics investments will be spent on customer journey analytics."

3 Taking on Big Spenders is Not Easy By MGM (ebay card) [Public domain], via Wikimedia Commons

4 But It Can Be Done "Osmar Schindler David und Goliath". Licensed under Public Domain via Wikimedia Commons

5 So, How Do We Plan Our Attack? Source:

6 5 Points of Attack For Your Strategy 1. Budget Differently 2. Use Open Source Software 3. Seek Out Startups 4. Work on Your Timing 5. Build Great Customer Experiences

7 Investment Styles Depend on Where Are Your Revenues? 2014 Web Sales Internet Retailer Top 500 Top 500 US Top 48 EMEA Top 20 >$/ 1B IT Spending as Percentage of Revenue Top Top Top Top Next 500 $954m-$395m 955m - 200m $192m-$27m 184.7m - 2.6m Revenue * Rounded to next million Source: Internet Retailer

8 Revenue Grow Curves Impact How You Procure Capabilities Revenue fast Revenue slow Lean Towards Service

9 To Take on The Big Spenders: Budget Differently

10 To Take on The Big Spenders: Use Open Source expectations Open-Source SIS PaaS Frameworks Open-Source E-Commerce Software Open-Source Banking Systems Open-Source Data Quality Tools Open-Source Telecom Operations Management Systems Linux on RISC Open-Source Security Tools Open-Source Data Integration Tools Open-Source Enterprise Service Bus Open-Source Virtualization Platforms Open-Source Content Management Open-Source Financials Open-Source Middleware Suites Linux on System z Linux on Four- to 16-Socket Servers Open-Source Learning Repositories Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment time Slope of Enlightenment Plateau will be reached in: less than 2 years 2 to 5 years 5 to 10 years more than 10 years Source: Gartner Hype Cycle for Open-Source Software, 2014 (G ) As of July 2014 Plateau of Productivity obsolete before plateau

11 To Take on The Big Spenders: Seek Out Startups Gartner Cool Vendors 2013: ADmantX Avangate Meilishuo Reevoo Workfront CloudCraze Conversocial Datahug Lattice Rapide Redpoint SproutLoud SundaySky The TAS Group WalkMe Xiaoi 2014: BrainSINS Buyapowa BySide Content Square Buttle Information Systems Eudata FacilityLive KMS Lighthouse Personetics ClearSlide Selligy Gainsight Adam Software DataSource HubSpot MindMixer Provenir 2015: Limonetik PowaTag Boomerang Mirakl Hotwax Systems Contactive OneMob Qstream VoloMetrix Altocloud AnswerDash Cyara Flamingo ResponseTap Allocadia Beckon Mtivity Sidecar Valkre

12 Work on Your Timing: Gartner Hype Cycle A snapshot of the relative maturity of technologies, applications and business processes. How long to reach maturity? Helps you decide when to adopt or deploy. expectations Context Delivery Architecture Social for CRM: Social Feedback Management Digitalized Business Processes Web Real-Time Communications UXPs Subscription Billing Context-Enriched Content Big Data Analytics for Customer Intelligence Mobile Commerce IMC-Enabled, Packaged CRM/ERP/CPM Applications Customer Journey Analytics Customer Engagement Hub Innovation Trigger Peak of Inflated Expectations Plateau will be reached in: Predictive Analytics for Digital Commerce Augmented Reality Online Product Recommendation Engine Social Analytics Configure, Price, Quote Application Suites Responsive Design Context-Enriched Services Digital Coupons for E-Commerce Virtual Customer Assistants E-Invoicing Social Commerce Content Analytics Customer E-Services Enterprise Feedback Management Application Performance Monitoring Personalization Price Optimization and Management Knowledge Management for Customer Service Mobile Web Apps Trough of Disillusionment time Slope of Enlightenment less than 2 years 2 to 5 years 5 to 10 years more than 10 years Web Analytics Consumer Digital Rights Management Consumer-Generated Media Fraud Detection Mobile Advertising Integration Brokerage 2D Bar Code Marketing Product Reviews E-Commerce SaaS Distributed Order Management Cloud/Web Platforms Payment Processors Mobile POS QR/Color Code E-Payment Gateway As of July 2014 Plateau of Productivity obsolete before plateau Source: "Hype Cycle for Digital Commerce, 2014," 29 July 2014 (G )

13 Work on Your Timing: Gartner IT Market Clock The IT Market Clock provides a consolidated view of IT assets within a specific portfolio. It can assist with portfolio balancing, project prioritization and the development of business cases for investment/ divestment. It provides an understanding of how each asset is progressing through its useful life and allows you to make informed investment decisions. IT Market Clocks are complementary to Gartner Hype Cycles. Source: "IT Market Clock for Digital Commerce, 2014," 29 August 2014 (G )

14 Work on Your Timing: Gartner Magic Quadrant Get educated quickly about a market's participants, maturity, and direction. Compare subtle differences between technology providers. Map vendor strengths against your specific needs. List strengths and cautions for each technology provider. New MQ shows: 3-year history. Sliders to customize. Source: Gartner Magic Quadrant for Digital Commerce (G )

15 To Take on The Big Spenders: Build Great Customer Experiences to Win Anywhere Personal and in Context Social Digital Ethics Visual Fun Secure Everyone Can Sell and Deliver Everything That Is Measured Can Be Part of Commerce B2B Blurring with B2C Can Talk, Help, Do and Inform Can Be Predictive and Subscribed

16 Keeping Up with the Big Spenders: How to Make the Latest Technology Affordable Gene Alvarez Managing Vice Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."

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