Morgan Stanley · NYSE:MS
Morgan Stanley — Morgan Stanley Dean Witter — Investor Presentation (December 2000)
20 slides from Morgan Stanley's investor presentation, December 2000
Slide 1: Some Sweet Spots/Bottlenecks to Online Markets
MORGAN STANLEY DEAN WITTER Page 383 Some Sweet Spots/Bottlenecks to Online Markets l Content – huge bottleneck; constraint to liquidity l Customized, negotiated pricing l Back end integration; need to get cheaper and faster – and quickly l Customer intimacy and personalization – no one wants to be a
Slide 2: B2B Alternative Paths
MORGAN STANLEY DEAN WITTER Page 384 B2B Alternative Paths Architecture Choices to Reach Trading Partners Batch orders EDI/VAN Suppliers ORM supplies Public Buyer Exchange Private Dynamic Suppliers Exchange Supply Chain Private Label Firewall Exchange hosted By Specialist MORGAN STANLEY DEAN WITTER 8
Slide 3: Anatomy of a Web Site Order
MORGAN STANLEY DEAN WITTER Page 385 Anatomy of a Web Site Order Identify Prospects Orchestrate Promotions Refresh Content Microstrategy E.Piphany Vignette 1) Broadbase Interwoven Hyperion Find Exchange Apps E.Piphany Documentum Customers Broadbase Prime Response Show Personalized Monitor Online Conf
Slide 4: E-Commerce – More Sales Channels, Same Backend
MORGAN STANLEY DEAN WITTER Page 386 E-Commerce – More Sales Channels, Same Backend It Don’t Mean a Thing If It Ain’t Got That Cha-ching Front End Sales Channels T Post Sales Support h Available Telesales e to promise Direct Sales Online Auction Resellers B Shipment Tracking Tracking Wins a Inventory
Slide 5: The Logistical Nightmare of E-Commerce Operations
MORGAN STANLEY DEAN WITTER Page 387 The Logistical Nightmare of E-Commerce Operations Manufacturer Manufacturer Consumer Consumer Manufacturer Manufacturer Orders Orders Customized Customized Orders Consumer Consumer Bulk Shipment Shipment International International Orders Orders Orders Small Small
Slide 6: How Big are We Talking? Some Numbers
MORGAN STANLEY DEAN WITTER Page 388 How Big are We Talking? …. Some Numbers l $20 trillion in revenue for all companies with greater than $500 million in revenue l External spending of this audience is $10 trillion l 65% is for direct procurement (going into end product for resale; 35% indirect (adm
Slide 7: Exchange Economic Models So Far
MORGAN STANLEY DEAN WITTER Page 389 Exchange Economic Models So Far l Transaction fees – usually range from 0.5% of the transaction to 3% on more complex transactions. l Subscription fees – flat subscription fees for the full year on anticipated usage.. l Mark up – Some exchanges take the receivable
Slide 8: Key B2B Conclusions
MORGAN STANLEY DEAN WITTER Page 390 Key B2B Conclusions l Order matching will be free or near free; think email l Layering in more services – “collaborations” between partners – creates a viable business model; 25x collaborations to every order matching event l We expect more uniform pricing, not pr
Slide 9: Key B2B Conclusions
MORGAN STANLEY DEAN WITTER Page 391 Key B2B Conclusions l Cost of interaction between businesses will fall; self help will be a defining feature of the new economy l E-hubs will serve as mission control for an entire trading chain; The Dashboard for a New breed of competition – Virtual Clusters l So
Slide 10: The Business Model: Enterprise Software
MORGAN STANLEY DEAN WITTER Page 392 The Business Model Enterprise Software MORGAN STANLEY DEAN WITTER Beware when… Top 5 Deals > 30% of Revenues Top 5 Deals as a % of License Fees Danger 40% Zone Percent of License Revenue 35% 35% 30% 30% 25% 22% 20% 17% 15% 13% 10% 10% Upside Surprises Quotas, Head
Slide 11: Beware when Average Deal Size Plateaus
MORGAN STANLEY DEAN WITTER Page 393 Beware when… Average Deal Size Plateaus Check Please! 500 400 Y/Y Comparisons 300 about to get tough 200 100 0 Q1 Q2 Q 3 Q4 Q5 Q 6 Q7 Q8 MORGAN STANLEY DEAN WITTER 106 [email protected] Intra-Quarter Revenue Pattern It Ain’t Pretty Weekly Revenue in a Quar
Slide 12: Enterprise vs. Desktop Software
MORGAN STANLEY DEAN WITTER Page 394 Enterprise vs. Desktop Software ATTRIBUTE PERSONAL SOFTWARE ENTERPRISE SOFTWARE Distribution Retail Stores; Distributors Direct salesforce Pricing (average invoice size) $50-$2000 $5,000 - $1,000,000+ Pricing model Per user pricing, and site Machine-size, user ban
Slide 13: Compare Enterprise Software to Other Industries
MORGAN STANLEY DEAN WITTER Page 395 Compare Enterprise Software to Other Industries l PCs upgraded every three years l Switches and routers upgraded every three to four years l Recurring revenue from Internet advertising/services l Microsoft charges for upgrades l Enterprise software – no consumptio
Slide 14: The CIO's Enterprise Software Toolbox
MORGAN STANLEY DEAN WITTER Page 396 The CIO’s Enterprise Software Toolbox Software Infrastructure Applications l Process focus l Databases l Front office l Development tools l Back office l Systems management l Inter-enterprise l Middleware l Buy vs. Build l Storage management l Off-the-shelf packag
Slide 15: Front Office vs. Back Office
MORGAN STANLEY DEAN WITTER Page 397 Front Office vs. Back Office THE FRONT OFFICE – THE BACK OFFICE – CUSTOMER FACING OPERATIONS l Sales force automation l Accounting l Marketing automation l Payroll l Customer service l Benefits administration l Call center l Order entry l Electronic store fronts l
Slide 16: The CRM Landscape
MORGAN STANLEY DEAN WITTER Page 398 The E-commerce Extensions to the Front Office l Order processing l Inventory availability l Content management l Configuration l Personalization Vignette l Job quotes l Profiling l Lead management l Commerce syndicationBroadvision l Payment processing IBMl Warrant
Slide 17: ERP – Broke Down the Functional Silos
MORGAN STANLEY DEAN WITTER Page 399 ERP – Broke Down the Functional Silos Fragmented workflow and data; Manual, batch links; No centralized view; Brittle links Human Finance Production Distribution Shipping Resources ERP Suite MORGAN STANLEY DEAN WITTER 119 [email protected] ERP Oligopoly l
Slide 18: ERP Drivers: Technology Shift
MORGAN STANLEY DEAN WITTER Page 400 ERP Drivers: Technology Shift l Historically driven by hardware platform changes – mainframe, mini, client/server l Also driven by software architecture changes l Increased scale requirements l Increased distribution requirements MORGAN STANLEY DEAN WITTER 121 cha
Slide 19: Where to Next for Growth?
MORGAN STANLEY DEAN WITTER Page 401 Where to Next for Growth? l E-commerce l Mid market l Vertical markets l Application hosting (outsourcing); buy vs. build l Supply chain management l Front office l Inter-enterprise applications MORGAN STANLEY DEAN WITTER 123 [email protected] ERP Late, Ov
Slide 20: Integration the Achilles Heel
MORGAN STANLEY DEAN WITTER Page 402 The Middleware Mess Enterprise Application Integration IT’s Underbelly MORGAN STANLEY MORGANDEAN WITTER STANLEY DEAN WITTER 125 [email protected] www.ms.com Integration the Achilles Heel l Middleware is a murky area with overlapping functionality in products aimed at p
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