E-COMMERCE: AMONG THE FIRST MOVERS Patrice Taillandier-Thomas Damien Jamet Société Générale Day - June 20 th, 2000 1
Contents e-commerce main trends Société Générale s strategy Main developments Société Générale Day - June 20 th, 2000 2
e-commerce main trends Société Générale s strategy Main developments Société Générale Day - June 20 th, 2000 3
The environment of e-commerce Administration Security zone BtoB BtoA Enterprise Enterprise Supplier Buyer e-banking BtoC Bank Société Générale Day - June 20 th, 2000 4 Cybernaut
e-commerce in France B to B on the Internet EUR 130 bn EUR 0.2 bn EUR 0.8 bn EUR 0.2 bn EUR 0.1 bn EUR 15 bn B to C 1998 1999 2003 Société Générale Day - June 20 th, 2000 5 Sources: IDC, BCG, SG Research
e-commerce main trends Société Générale s strategy Main developments Société Générale Day - June 20 th, 2000 6
Société Générale s strategy To be among the first movers On the Internet there is a premium for the first movers Société Générale Day - June 20 th, 2000 7
Société Générale s strategy To be among the first movers To build new offers around our core business Société Générale Day - June 20 th, 2000 8
Value chain for a purchase order Buyer Participant identification Log in Logistic (processing, shipping) Catalogs browsing Transaction (order, bill) Payment Supplier Société Générale Day - June 20 th, 2000 9
Société Générale s strategy To be among the first movers To build new offers around our core business Partnerships are the new business models of the Net-economy ("win-win") Société Générale Day - June 20 th, 2000 10
Société Générale s strategy To be among the first movers To build new offers around our core business Partnerships are the new business models of the Net-economy ("win-win") To preserve the customer relationship Société Générale Day - June 20 th, 2000 11
e-commerce main trends Société Générale s strategy Main developments Société Générale Day - June 20 th, 2000 12
Main developments B to C B to B Certification Société Générale Day - June 20 th, 2000 13
Main developments B to C Société Générale Day - June 20 th, 2000 14
e-commerce: What are SME's needs? How to sell on Internet? How to be paid? How to be known? How to deliver worldwide? Société Générale Day - June 20 th, 2000 15
SOGENACTIF e-commerce package Sogenactif Shop Sogenactif Payment Sogenactif Logistic Conception Hosting Credit card payment secured with SSL Partnership with La Poste & UPS Tracking Charges and taxes Société Générale Day - June 20 th, 2000 16
SOGENACTIF Paiements CB sécurisés par la SG... Société Générale Day - June 20 th, 2000 17
Business to Consumer Market forecasts for B to C Websites FRANCE 1999 2000 2001 2002 Number of Websites 1,200 4,500 26,500 46,000 Operational websites (since late 1999) 110 SG's target for 2000 500 Targetted marketshare for 2001-2002 15% Source : Société Générale Société Générale Day - June 20 th, 2000 18
Main developments B to C B to B Certification Société Générale Day - June 20 th, 2000 19
B to B Partnership: Société Générale, Crédit Agricole, BNP Paribas, Cap Gemini with CommerceOne Société Générale Day - June 20 th, 2000 20
B to B Project: To manage the full order-to-pay cycle Marketplace Buyers Suppliers Catalogs Management Purchase order Invoice Payment ERP Integration e-procurement Phase 1 Automated Matching ebpp Phase 2 Société Générale Day - June 20 th, 2000 21
Horizontal Marketplace Buyers Marketplace Suppliers Horizontal Market Place Horizontal Market Place Services e-procurement Content Mgt ebpp IT Société Générale Day - June 20 th, 2000 22
Vertical Marketplace Buyers Marketplace Suppliers Vertical Market Place Vertical marketplace Specific services Horizontal e-procurement Market Place Content Mgt ebpp Auctions Content News Forum Jobs Financial services Partnerships Services IT Société Générale Day - June 20 th, 2000 23
Inter-operability between digital Marketplaces Marketplace Internet Future marketplaces Société Générale Day - June 20 th, 2000 24
Business-to-Business e-marketplace Business Plan: main figures 2000 2001 2002 2003 2004 Market value (in FRF bn) Targeted mkt. share 20 2.5% 100 12.5% 200 25% 400 20% 600 15% Net banking income Operating costs 0 25 47 51 152 92 242 97 285 98 Gross operating income Net income in EUR m -25-25 -4-4 60 50 145 97 188 126 Source: B2B Project Société Générale Day - June 20 th, 2000 25
Main developments B to C B to B Certification Société Générale Day - June 20 th, 2000 26
Certification Secure means of payment: CYBERCOMM 1 The use of smart cards with embedded computer chips 2 3 The use of smart card readers The use of the SET standard Secure Internet Transactions 4 The use of an Issuer Gateway for interoperability with all SET solutions Société Générale Day - June 20 th, 2000 27
millions of users ItiAchat experiment Cellular Phones Users Nov. 99 Nov. 97 Jan. 98 Mar. 98 May 98 Jul. 98 Sep. 98 Nov. 98 Jan. 99 Mar. 99 May 99 Jul. 99 Sep. 99 Jan. 00 Mar. 00 Société Générale Day - June 20 th, 2000 28 25 20 15 10 5 0
Certification Certification Secure means of payment Trusted services: a new business for banks Providing a Global Framework for Trusted Business-to-Business e-commerce The New Yorker Collection 1993 Peter Steiner from cartoonlink.com. All rights reserved. Société Générale Day - June 20 th, 2000 29
Our strategy for Investments in e-business To be present in e-business key sectors To have an opportunistic strategy and to encourage partnerships To experiment and to decide on a ROI basis Société Générale Day - June 20 th, 2000 30
E-COMMERCE: AMONG THE FIRST MOVERS Patrice Taillandier-Thomas Damien Jamet Société Générale Day - June 20 th, 2000 31