PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. P2P: Enabling business processes in a global marketplace Jonathan Hare Chairman and Co-Founder

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Agenda Business processes in the real world The hub-centric approach The peer-to-peer advantage A process-centric, P2P alternative Napsterizing B2B - a global marketplace emerges

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Business processes in the real world Grow organically to include multiple, disparate applications, systems, information and people Each instance of a process is unique, unpredictable and changing Routinely cross organizational, geographical and technological boundaries Largely manual, ad-hoc, iterative, and document-intensive Generally peer-to-peer, not client-server: Distributed, not centralized No single person, organization or application understands or controls the entire process from end-to-end

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Business pain: technology has fragmented processes…even the simple ones Financial Controller P.O. CSR Invoice Credit Agent ACH / EIT Payment Order Financer: Budget IT Manager RFP Buyer: Less than 2% of business processes are automated end-to-end Vendor: Sales Rep Quote Contracts Warrantee Purchasing Agent

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Why hub-centric approaches break down for enterprise business processes Centralized control to bring together diverse people, systems, and organizations Assume uniformity of all instances of process Limited flexibility to support dynamic / changing nature of processes Limited visibility into process at any point in time Limited scalability Systems and applications enforce control versus process participants assuming control

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Peer-to-Peer is the only successful approach to addressing massively complex, global applications Standard Protocols Grows & adapts organically Distributed execution – share the burden Inherently scalable Fault-tolerant Diversity emerges naturally Distributed investments Diversity emerges naturally Peer power – diversity emerges naturally Centralized / Hub-centricPeer-to-Peer Standard everything Engineered, built & maintained Centralized execution – bear the burden Limited scalability Single point-of-failure Diversity means complexity Massive centralized investments Standardized best practices Centralized control – uniformity rules P2P success stories: Internet, , ICQ, Napster,…eBay, Linux, Capitalism

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. The P2P advantage PEER Decentralized control = flexibility, diversity, scalability and collaboration Standard communication, coordination & access protocols Processes grow and adapt organically Peer-to-peer beyond Napster: Internet, and Napster

Consilient Sitelets: process personalization agents Sitelet Process Agent Task Agent Process building block Peer-to-Peer Collaboration Detached, Static Content FilesWeb Page PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Any Client BrowserPDA Collaborative Content

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Unifying disparate technologies in the market to increase productivity Portals Front-Ends EAI Enterprise Application Legacy Application Web Site / Application WorkGroup / Office Applications Databases Local Files Manual Task Structured ProcessesManual / Ad-hoc Processes Sitelets

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Consilient is the first to remove process limitations without requiring uniformity Are complex and ad-hoc Are a hybrid of manual and automated tasks Rely on content from multiple, disparate applications and systems Must be shared with people across company and geographic boundaries Must change frequently, with minimal risk and effort Order / Configuration Requisition P.O. Invoice Payment Process Example We unify processes that: EDI

PROPRIETARY AND CONFIDENTIAL Copyright © 2000 Consilient, Inc. Napsterizing B2B – enabling a global marketplace Conduct any business transactions and make markets with anyone, anywhere Unlimited reach – any apps, content, and people Enables key ingredients to a functioning market: Transparency Security, audit trails Contract enforcement Rights management Metering Arbitrary Fulfillment Peer-to-peer business model, no-friction deployment means the market can grow organically