1. Intershop @ Jump Start E-Commerce Platforms
Stephan Leschke - Intershop
March 10th 2010

2. Agenda Company Introduction E-Commerce Market The New Shop Manager
E-Commerce Trends & Visions

3. Intershop – The E-Commerce Company
Corporate Data:
Software- and Solution Vendor for E-Commerce
Founded 1992 in Jena
Headquarter in Germany; Offices in Australia, USA, Bulgaria
Over 300 international Customers
Ca Partner
Ca Employees worldwide
Introduction:
Let me briefly introduce myself and my company Intershop.
My name is …
And now some key figures about Intershop
Intershop is the E-Commerce Company
We are providing software and solution for the complete E-Commerce process chain.
Starting with the “shop software” through “technical” and “business consulting” services up tp “Full Service E-Commerce” including “Online Marketing” and “Long Tail Retail”.
Intershop is an international operating company with offices around the world, serving with app. 300 employees - and of course with our Partners - more than 300 customers.
Bridge:
 As you might imagine, Intershop has gone through changeful times in the last 18 years. Interestingly Intershops development can be mapped very well to the Gartner Hype Cycle. 3

4. Intershop – Development
Dot Com
2008 €
IPO
Visibility
Today
(Sweet Spot)
Rock bottom
Founding Intershop
Introduction:
You all know the Gartner Hype Cycle a graphic representation of the maturity, adoption and business application of specific technologies. This hype cycle can be perfectly mapped to the development of Intershop:
Dates:
1992: Founded
1994: First E-Commerce Product
1998: IPO
2000: Dot Com Crisis
2005: Reached bottom line
2007: Initiated Turnaround
2008: First positive year in history of Intershop
2009: Stabalised turnaround and sustainable growth
Today: we are in the “sweet spot” of the sizzling market E-Commerce
Bridge:
 Lets zoom into this sweet spot and take a short closer look at Intershops performance.
1990
2000
2005
2010
2015
Technology
Trigger
Peak of
Expectations
Trough of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity

5. Intershop – Positive and Stable after Turnaround
Introduction:
What you see here is the revenue and EBITDA development of Intershop in the last four years.
Background Info:
2005: 17,8 (revenue); -2,9 (EBITDA)
2006: Negative results
2007: Start of the turnaround ( higher revenue and better EBITDA)
2008: Successful turnaround and first positive year in the history of Intershop
2009: Stabalised turnaround and sustainable growth
Bridge:
 As I mentioned the turnaround was supported by the sizzling E-Commerce Market. So lets have a short look at this specific market and the competitive environment.
Net Revenue
EBITDA

6. Agenda Company Introduction E-Commerce Market The New Shop Manager
E-Commerce Trends & Visions 6

7. E-Commerce Market – Development in Europe
Commerce Sales in € bn
CAGR: 13%
Introduction:
Lets start with some interesting market figures first.
The Western European e-commerce market will continue to grow strongly – with an average of 13%
Comparing the leading e-commerce markets, Germans have spend most online on a per capita basis compared to consumers in the other leading e-commerce countries
We are to the right time in the right market
Background Info:
This pile chart only refers to B2C sales, not to B2B sales, which have a multiple of 10 compared to the B2C market.
Germany
Source: TNS Infratest, Bundesministerium für Wirtschaft und Technologie

8. E-Commerce Market – Booming and Changing
34,2
Mrd. €
29,4
Mrd. €
21,2
Mrd. €
Introduction:
Looking at the evolution of the three areas „Online – E-Commerce“, „Mail Order“ and „Catalog selling“, we see an interesting development.
2000: Huge market for catalog selling and the beginning of mail order and e-commerce
2010: More than 1/3 of the market is already e-commerce. Mail order hat also a significant growth, but not that huge as e-commerce!
2020: Looking further into the future, e-commerce is taking over more than 2/3 of the market. Mail order will stagnate, catalog selling will vanish.
As I said before: We are to the right time in the right market – e-commerce is the place to be
Bridge:
Even if we were the first mover in this prospering market, we are not alone;-)
E-Commerce
Mail Order
Catalog selling
2000
2010
2020
Quelle: bvh, Werte 2009 Quelle:

9. E-Commerce Landscape Introduction:
POS
Rich
Media
Pay-ment
CRM
Finance
Credit
Control
PIM /
PDM
Logistic
Service
Hosting
Market-places
E-Marekt-ing
Stat-istics
Introduction:
E-Commerce is much more than a web-shop.
It is crucial to understand the customers needs and more than that, have answers and solutions to solve their problems
You have to act along the complete and complex e-commerce process chain.
A short example of the scope:
The best web-shop is not worth nothing, if none can find it – you need online marketing
You can buy online with a few clicks, but it takes weeks to ship the parcel – you need good logistics
To manage all this – you need e-commerce know-how end skills
Bridge:
The extension of the skill set on the one hand and the changing e-commerce environment on the other hand needs to be adopted within the online business. Companies need a new online managers, who orchestrate the complex E-Commerce eco-system. We made a survey amongst customers to find out how they handle this.

10. Agenda Company Introduction E-Commerce Market The New Shop Manager
E-Commerce Trends & Visions 10

11. Changing Markets – New Job Description
E-commerce is management
Products
Markets
Traget Groups
Competition
Partners
Marketing
Processes
Suppliers
Introduction:
One of our key findings was that E-commerce is all about management, with running an online store increasingly requiring business expertise alongside technical skills.
Background Info:
And as the “Business Process Management” wave came up with new job descriptions like an “CPO” or an “Process Architect”, the same is happening in the E-Commerce environment as well.
The new (and or extended) job description of the person who is responsible for the e-commerce initiatives is “Shop Manager”. The Shop Manager is not only an IT guy, coding the web-shop. He is much more than that.
The new Shop Manager has to manage:
Products
Market
Competition
Target groups
Marketing strategies
Suppliers
Partners
Logistic providers
Business Processes
Shop
Bride:
And besides that, he has to take care of the CORE – the revenue of the web-shop.
Press Release :
Intershop Survey: Shop Managers Now Need a Broader Skill set
Today’s e-commerce managers require both technical and business skills
Tools for analyzing and managing online sales needed
Shop Managers are key to e-commerce success
Jena, Germany, February 9, 2010 – E-commerce is all about management, with running an online store increasingly requiring business expertise alongside technical skills. That’s the key finding of a recent survey by e-commerce provider Intershop. As well as being fully conversant with the product range, market, and the competition, today’s online store managers need to know where their target groups are and which marketing strategies will reach them. They must establish relationships with suppliers, partners, and logistics providers and negotiate terms. Analyzing and optimizing processes is also part of the job.
According to the online sellers surveyed, the management information and tools needed to perform these tasks are often lacking. For example, fashion retailers cannot maximize sales by simply presenting a new collection four times a year, from spring through to winter. They need to encourage customers to make purchases via up-to-the-minute offers on the homepage or in newsletters, themed pages that are changed regularly, or specials for loyal customers. This can be a daunting task if managing or updating product data is complicated and the approval procedure is lengthy. Few Shop Managers can create themselves new Web pages or their components in a comfortable manner, preferably in real-time.
Online success is measured by factors, such as response to marketing activities, the level of returns, the conversion rate for recommendations, individual customer value, and delivery performance. The companies surveyed expressed a wish for intuitive tools that continuously evaluate and improve these criteria by enabling shop managers to take corrective action themselves. Peter Mark Droste, Management Board member of Intershop Communications AG: “Shop Managers are crucial to a retailer’s image and success. Many companies recognize this by not only investing in qualified staff, but also by providing an appropriate work environment that supports their demanding role.”

12. Changing E-Commerce Challenges
Initial Costs
Operational Costs
Error Ratio
Handling Duration
Return Ratio
Reach
Conversion Rate
Attractiveness
Level of Automation
Basket Value
The new Shop Manager
drives e-commerce
initiatives
Introduction:
The Shop Manager drives all e-commerce initiatives and therefore needs expertise in several areas, e.g. IT, business, retail, sales, marketing, logistics, etc.
Of course the main focus of the Shop Manger is still to leverage the online shop and generate more revenue. That means, he has to achieve the following goals:
Sink:
Initial Costs
Operational Costs
Error ratio
Handling duration
Return Ratio
Leverage:
Reach
Conversation Rate
Attractiveness
Level of automation
Basket value
Bridge:
As you see, to be a Shop Manager is much more than just driving the web-shop – and it is even more complex.

13. Strategic Key Factors for Success in E-Commerce
Corporate Identity
Product mix
Marketing budget
# Products
Collections
Revenue
Market segments
Pricing
Licensing
Product groups
Brand value
Cognition
Return reasons
Strategy
Returns
Target group
Basic / trend products
Process flexibility
Brand
Assortment
Newsletter
Channels
Capacity
Lead time
Strategic Key Factors for Success in E-Commerce
Loyalty Program
Countries TV
Payments
Affiliate program
Service quality
Logistics
Reach
Print
Sponsoring
Debt collection
Subsidiaries
Carriers
360° views
Call Center
Languages
Catwalk videos
Customer
Service
Innovation
Web 2.0
Pick & ship lead time
ePayment
Delivery times
Recommendations
Virtual fitting room
Introduction:
To make an e-commerce initiative successful, several thinks have to be taken into account. This map shows the strategic key success factors for e-commerce.
The interesting part is, that only a few factors belong to IT (lower left corner), the rest is more or less dedicated to the business.
Bridge:
The aim of each e-commerce software or solution vendor should be to checkmark each of the items of this map to optimise the Shop Manager support.
Payment
Refunds
Return time
Mobile
Usability
Personalization
Technology
Self-services
Maintenance
Stability
Usability tests
Navigation
Business Plan
Interfaces
Features
Scalability
Abandoned baskets
Customer retention
Performance
Publishing lead time
Call Center complaints
Conversion rate 13

14. Optimal Shop Manager Support
E-Commerce Solutions
enable the Shop Manager
to optimise the
E-Commerce processes
in all stages of the
E-Business life cycle.
Introduction:
If such a vendor would create a mission statement, it could look like this:
“E-Commerce Solutions enable the Shop Manager to optimise the E-Commerce processes in all stages of the E-Business life cycle.”
You can imagine, that the Intershop mission statement goes into this direction ;-)
Bridge:
We now have seen, what the challenges and the tasks of the “new Shop Manager” are. In addition to that, he has to scan the market, look into the future and find visions and trends in e-commerce.

15. Tailored Solutions for Shop Managers
Business Requirements:
Business focus (for Shop Managers)
Business and Technical Reporting Tools (CIC)
Usability enhancements (e.g. CMS, Storefront Editing)
Business Process Optimisation (e.g. Check Out)
Interoperability & Integration
Payment Framework
SCOOBOX – Social Commerce Out Of the Box
Search Engines
Advanced Marketing Toolset
Online Marketing (SEO/SEM)
Merchandising / Promotions
Advanced Recommendations
Web 2.0
Personalisation
Social Media
Mobile
NEW
6.4 15 15

16. Agenda Company Introduction E-Commere Market The New Shop Manager
E-Commerce Trends & Visions 16

17. Trend – Cloud Computing
Feed Engine
E-Commerce Search
SEO/SEM
-Marketing
Order Management
Couponing
Merchandizing
Enfinity Suite
Full Service
Enfinity Suite Managed Service
Enfinity Suite on-premise
Introduction:
Many IT-trends are adaptable to e-commerce as well. We had the “SOA” and the “BPM” Hype after that we had “SaaS”.
Lets look at the tend we are facing at the moment - “Cloud Computing”.
Cloud Computing – as well as the other trends – also appears in e-commerce environment.
All features and functions of state of the art web-shops are nowadays available in the cloud.
No IT-infrastructure is needed
Pick and choose only what you want and need – no coding, only configuration
Available “on-demand” - everywhere and any time
Bridge:
Along with that trend comes another trend, e-commerce everywhere and any time – m-commerce. 17 17

18. Trend – Mobile Commerce
Omni-present
Mass Media
Identified
Person-alised
Realtime
Localised
Interactive
Multi-fuctional
Introduction:
E-commerce everywhere means e-commerce in your pocket.
Smart phones are the devices of the future:
Smart phones are everywhere – everyone has one
Smart phones are multifunctional and they make internet mobile
You can interact in real time
Backup Info:
Mass Medium
Omnipresent
Identifiable
Real Time
Interactive
Multifunctional
Localizable
Personalizeable
Bridge:
So, if this is the device of the future, what are the figures of mobile internet usage? 18 18

19. Trend – Mobile Commerce
European mobile Internet users (millions)
Introduction:
Forrester did a research on that and found out, that the internet usage on mobile devices will tipple till 2014.
Bridge:
So, it could be a wise move for e-commerce vendors to go mobile ;-)
Forecast: Western European Mobile Internet Penetration, 2009 To 2014
August 2009 “Western European Mobile Forecast, 2009 To 2014” 19 19

20. Trend – Mobile Commerce20

21. Trend – Social Commerce
Community
Recommen-dation
Blog
Comparisons
Twitter
Reviews
Facebook
Tell a friend
Introduction:
Web 2.0 is one of the “more mature trends”, but nevertheless a trend. We are only at the beginning.
“Make users / customers to supporters or even salesmen”
Examples for Instruments for more user / customer interaction are:
Community
Blog
Twitter
Facebook
Tell a friend
Recommendation
Comparisons
Reviews
Bridge:
But these “common” features are only the beginning… 21 21

22. Trend – Social Commerce
Community
Recommen-dation
Blog
Comparisons
Twitter
Reviews
Facebook
Tell a friend
Introduction:
What you see here is the complete Social Commerce landscape (for Germany 2009), so you see, there is a lot more to come…
Bridge:
What we will experience is that all these services are parts of the puzzle e-commerce. And if they are all put together you see a new and compelling picture of E-Business. 22 22

23. Emotional Shopping Introduction:
All these bits and pieces brought together and merged into one storefront, flexibly handled, controlled and monitored lead to a new customer experience – emotional shopping. What we see here is an example of how a new shop could look like.
Several thinks are integrated here:
Intuitive and easy to navigate (zoom & price selection via slider)
Several product views (incl. detailed zooms and user generated content – videos)
gimmicks like animated icons and button (“put into basket” put something into basket )
Integration of Web 2.0 functionalities like community
User customizable look and feel
Integrated video shopping

24. Thank you

25. Disclaimer
THIS IS NOT A PRODUCT SPECIFICATION The information contained in this document represents the current view of Intershop Communications AG on the issues discussed as of the date of publication. Because Intershop must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Intershop, and Intershop cannot guarantee the accuracy of any information presented. This document is for informational purposes only. Intershop MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT.
Intershop Communications AG may have patents or pending patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. The furnishing of this document does not give you any license to the patents, trademarks, copyrights, or other intellectual property rights except as expressly provided in any written license agreement from Intershop Communications.
Intershop does not make any representation or warranty regarding specifications in this document or any product or item developed based on these specifications. Intershop disclaims all express and implied warranties, including but not limited to the implied warranties or merchantability, fitness for a particular purpose and freedom from infringement. Without limiting the generality of the foregoing, Intershop does not make any warranty of any kind that any item developed based on these specifications, or any portion of a specification, will not infringe any copyright, patent, trade secret or other intellectual property right of any person or entity in any country. It is your responsibility to seek licenses for such intellectual property rights where appropriate. Intershop shall not be liable for any damages arising out of or in connection with the use of these specifications, including liability for lost profit, business interruption, or any other damages whatsoever. Some states do not allow the exclusion or limitation of liability or consequential or incidental damages; the above limitation may not apply to you.

26. Corporate Headquarters Intershop Communications AG Intershop Tower D Jena Germany Telefon Fax
Americas Headquarters Intershop Communications, Inc nd Street, 2nd Floor San Francisco, CA USA Phone Fax
SoQuero GmbH - Online Marketing - Ludwigstraße 31 D Franfurt am Main Germany Telefon Fax
© 2009 Intershop Communications AG. Alle Rechte vorbehalten. Alle Warenzeichen sind Eigentum ihrer jeweiligen Inhaber. Angaben in diesem Dokument dienen nur der Produktbeschreibung und stellen keine zugesicherten Eigenschaften im Rechtssinn oder Garantien dar. Garantien bedürfen einer ausdrücklichen und schriftlichen Bestätigung von Intershop. Intershop behält sich Änderungen und Anpassungen vor.