@ffice Business Plan

2 Contents I.What is a “WebOS”? 3 II.Concept 4 III.Change in Computer Environment 7 IV.Differentiation Strategy 8 V.Characteristics 9 VI.Benchmarking 10 VII.Business Development Strategy 17 VIII.SWOT Analysis 30 IX.ROI Analysis 31 linked services38 related services 39 XII.Structure services 40

3 What is a “WebOS”? Windows Environment Build personalized environment Make short-cut icons Manage Folders Bookmark Drag&Drop Windows Environment Build personalized environment Make short-cut icons Manage Folders Bookmark Drag&DropDeskTopDeskTop Environment Restriction Mobility Restriction Security Restriction Environment Restriction Mobility Restriction Security Restriction Browser Environment Build personalized environment on the Web Make short-cut icons Manage Folders Bookmark Drag&Drop Diverse Web Services Combination Browser Environment Build personalized environment on the Web Make short-cut icons Manage Folders Bookmark Drag&Drop Diverse Web Services CombinationWebOSWebOS Elimination of Restriction!! WebOS, as a new DeskTop interface on the web, allows the user to execute his tasks anytime anywhere. It also allows the user to have an access to all ASPs (Application Service Providers) needed.

4 can be understood as a millenium portal which integrates an autonomous WebTop within an new internet is a very convenient interface which can invite and support any with its web-browser and its simultaneous local desktop functions integrates perfectly all activities the user might ASP Application Service Providing WebOS WebTop Neo-Browser User Interface Web Folder Community Web-Life Applications

5 Concept WebOS Cyber Office CyberCommunity ASP (App. Service Providers) Web Based Desktop Drag&Drop, Folder Management, Short-Cut Personalized Office Schedule, Business Cards, Mail/Fax, Files Personalized Community Chatting, Bulletin Board, Clubs Add-On Services Value Added Services: E-Commerce,

6 Concept Main Menu Bar for Web Browser & Windows Set-up Office Menu Bar Navigation Bar Short-cut icons (Easy make & delete) with user’s option Ad or Message Net Board Inner-Window Status Bar Current Status Bar

7 Change in Computer Environment Desktop Web Mail WebTop Elimination of Environment & Space Restriction Personalized Service

8 Differentiation Strategy Creative Technology Personalized Services Extension - Neo-Browser - Drag&Drop Folder Management - Short-cut icons: easy make & delete - Skin function of Neo-Browser Trustfulness - Modulization in Plug & Play mode - Integrated Value-Added Services - Minimize Downloading Time - Establish Stability & Personal Security System Different Contents Meet cultural needs of Netizens by not only providing information but also realizing their Web Life Original Design Simple but Sophisticate Interface Design

9 It provides the user with diverse functions such as Drag & Popup menu, easy short-cutsand eventually meet all user-oriented convenience’s aspirations. Characteristics - Convenient User Interface in Window as a simultaneous WebOS and a WebTop, wants to be also a very convenient and familiar interface

10 Characteristics - Its Own Browser with Office function The user can perfectly manage its web-browser functions with “Browser Control Option”. It also provides a quick searching function through an integrated control between URL and searching serves itself as a web browser without being installed, and enables the user an access to its functions anytime and anywhere.

11 Characteristics - A perfect file management DeskTop functions with an integrated control of Web Storage & Local Storage - Free file transfer with Drag&Drop menu - Easy delete & Copy with Popup menu

12 Characteristics - Web-Life satisfying the cultural needs It offers services like: Culture Cinema, Web TV High-quality information for daily life - Stock, Investment, law, medicine, etc. Web-Life - Web mail, Address, Schedule, E-cards

13 Characteristics o - Harmonious and Sophisticate Design -Harmonious & Colorful Design to maximize visual effects -Customized backdrop through Skin functions

14 itself serves as a On-line Browser. It realizes multi window through inner windows inside browser with its same function as Desktop. It uses inner Window & ExplorerIt needs additional browser It offers an extremely limited functions (Icon Drag& Popup Menu) It provides an insufficient popup menu without Drag & Drop. Searching, Drag & Drop, Being connected to files in Local H/W  No support for D&D, Popup menu - Easy to add menus - Application programs in local computer can be used  Only Game and HyperOffice Diverse Broad Casting through Net Board On construction WebTop Broad Casting Browser WebTop Folder Mangement Application LastOne Corp.POPDesk Simmani Corp.myWebOS MywWebOs, inc.

15 Benchmarking -All the functions of Web Mail - Be linked to Web Folder Memo pad concept : easy to register with calendar option Only Mail Sending function  Linked to diverse services : Map, Zip Code, etc Integrated post-it services adding alarm function Communication Tool for members Fixed input Form Under preparation  Pop memo Services (No alarm function) Post-it from Note function (No alarm function)  Communication Tool for members Pursue user’s convenience with free classification & drag function Quick to save information in Web & Local Inconvenient Interface requiring multi open windows No classification function  Note as a form of searching engine Cyber Office WebMail Schedule Address Post-it Messenger BookMark LastOne Corp. POPDesk Simmani Corp. myWebOS Mywebos, inc.

16 Benchmarking Friendly space for members & diverse support Various Chatting Rooms & Trustful Services assured by strong police role  Sound meeting culture with real name system User’s Optional use Linked to Winknet  English-Korean Dictionary, Customized News, Electronic Business Cards Original Marketing with specialized services: Cyber conference room, Company Intranet  Add-On Service Cyber Community Club Chatting Room Web meeting Use of services offered in only Web Top Linked to 4 games, Fortune Teller Service & Tube music  Limited use of provided services - Linked to Web-to-Phone - Insufficient Customized news & Calculator function  Linked Services Free Services Paid LastOne Corp. POPDesk Simmani Corp. myWebOS Mywebos, inc.

17 Business Development Strategy - Summary CreativeDesign High-QualityDevelopment Marketing LeadingConcept Overseas Markets Penetration USA, Europe, Japan Create synergy effect through tasks interaction With its WebOS  Leading Company

18 Business Development Strategy - Marketing Strategy image as a New Internet Culture ! USPS (Unique Profit Selling Proposition) Improve customer’s loyalty brand image Build individual - centric Community Generate customer value  Customer Satisfaction image as a New Internet Culture ! USPS (Unique Profit Selling Proposition) Improve customer’s loyalty brand image Build individual - centric Community Generate customer value  Customer Satisfaction Advertising Early boom-up stage brand recognition UPSP Brand Image (Original brand strategy) Publicity Make issue of New Web Active Mass media appealing to improve credit Sales Promotion Differentiated SP through market classification Linked events to On-Line / Off-Line Web Promotion Target-Marketing Man - to -Man Marketing toward present & potential customers Word of Mouth Effect IMC Strategy New Integrated Marketing Communication IMC Strategy New Integrated Marketing Communication

19 Business Development Strategy - Marketing Strategy ItemDescription Advertising Mass MediaOpening Ads on TV, Radio, Newspaper Press ReleasePress Release to monthly magazines such as “PC Week” BannerUse paid banner ads in other internet sites or exchange free banner ads with them Promotion PromotionMarketing using Advertising CardOffer free services to deliver Millennium Card name, logo which will serve as a PR’s invitation for the user to site and finally subscribe to it. Division

20 Key-Marketing Concept Trustful services provided by best staffs Experience yourself a technology realizing future-oriented new paradigm! Basic Message My site! It gives whatever I want! My site! I create my own paradise on it! Ensure popularity through easy environment for users. Information & Community, now they means only basic ! My site! It satisfies all my cultural desires! Be exposed to Mass Media as often as possible in order to create a customer’s sympathy Business Development Strategy - Marketing Strategy

21 DivisionUsable MediaKey Message, Tone & Manner Mass Media TV, Radio, Bus, Subway, Daily, Cultural/ Current Affaire Magazine (eg. City Life) Approach to people who are eager for better internet services by using simple but strong concept & brand image! Web Banner Ad. Use paid ads in major web sites & free exchange ads between cooperative partners - Emphasize on original characteristics creating a new web paradigm - Lead Netizens to visit more often & to feel at easy IT magazinesenable, How PC, PC week, IT biz Ads, sophisticate enough to stimulate users to visit the site immediately & to feel they belong to intellectual class by doing so! DivisionUsable MediaKey Message, Tone & Manner Broad casting systems Main TV news on KBS, SBS, MBC, IT news on EBS 1. Make issue as a representative internet venture company 2. Raise a potential crisis to be left behind a new paradigm Daily, Web sites Press Release on major dailies & their web sites Be exposed to mass media as often as possible to ensure trustfulness by using people’s interest in an explosive increase of internet users & internet survival IT magazine, Weekly/ Monthly magazine Most of IT magazine: enable, How PC, PC week, IT biz, etc. - Focus on competitive edge staffs & excellency of local technology - Draw people’s attention by introducing interesting anecdotes related with staffs Business Development Strategy – Detailed Marketing Strategy Advertising Publicity

22 Business Development Strategy – Detailed Marketing Strategy ItemMarketing TargetContents Promotion Netizens using as a main tool to get information (eg. Salaried employees) 1. Update information continuously for early visitors by sending 2. Improve early- stage recognition degree: Make an alliance with service providers in order not to be considered as a Spam Mail Advertising Card Visitors are able to card to their friends & business partners PR effects - Trustful site recommended by friends or acquaints Gift First visitor & loyal customers - Cost reduction - Gifts sponsored by content providers - High-class and fresh gifts to attract young Netizens (Tickets to Club Med/PIC, Concert tickets) - Gifts by mileage bonus program Required to cope with possible problems related with customer’s misconception caused by previously launched services by Netffice and Dreamwiz. - Make utmost use of mass media stressing originality service which quickly responds to users’ demands is an unique & perfect WebOS who can respond to all exigencies of the Korean user Sales Promotion & Target Marketing Measures regarding first-come competitors Market Positioning

23 Business Development Strategy - Marketing Strategy on stage by stage 1st Stage ( ~ ) 2nd Stage ( ~ ) 3rd Stage for ( ~ ) Beta Test Period Attract customers, & Launch Service officially Maintenance, Development & Management of service

24 Business Development Strategy – Launching Strategy 1st stage2nd stage Summary Realize WebTop, Cyber Office necessary to provide “Web enabled personal workspace” and deliver basic concept & characteristics to users Provide Total Solution for Personal Computing Environment in order to offer an Integrated WepTop Service and various additional service for Comfortable Web-Life Service Range WebTop Cyber Office NetBoard Cyber Community Web-Life Add-On Service Communication Service, Internet Gallery, Web Radio, Web TV, Shopping Mall, Virus Elimination, Web FAX, etc. Internet Phone, Virtual Conference room, Company Intranet, Cyber Theater, etc Marketing/Promotion Strategy - Marketing Strategy to for brand-new product focusing on original brand image - Pre-Launching Boom-up stage through an various PR activities - Customer Retain by stressing high quality service - Consortium with Value-Added Service providers Marketing/Promotion Action Plan Launching Ceremony Promotion Advertising (TV, Radio) Stage for Attracting new customers Word of mouth strategy Advertising (subway station, Bus) Compensation Event Retain current customers and attract potential customers

25 Business Development Strategy – Profit generating method I WebOS Solution Sales ⇒ Suggestion of options ⇒ Versioning Strategy ⇒ WebOS Modeling suitable to each industrial sector WebOS Solution Sales ⇒ Suggestion of options ⇒ Versioning Strategy ⇒ WebOS Modeling suitable to each industrial sector ASP Business through Soft Bank ⇒ Ensure profits by providing information developed itself ⇒ Share profits with contents providers through alliance ASP Business through Soft Bank ⇒ Ensure profits by providing information developed itself ⇒ Share profits with contents providers through alliance Ensure profits by attracting ads ⇒ Ads on Netboard ⇒ Ads through registration channel ⇒ Ads through icon Ensure profits by attracting ads ⇒ Ads on Netboard ⇒ Ads through registration channel ⇒ Ads through icon Module Selling Service Bank Profit from Ads Extend free services by generating values Let people know shares its profits with customers!

26 Business Development Strategy – Profit Generating Method II - Execute research to complete an optimum WebOS Model according to industrial sector - Offer consulting services using analytic database on cases - Give Know-How about introduction, application & usage of WebOs in each industrial sector - Offer diverse versions by analyzing & synthesizing each module - Offer the most appropriate version considering client’s need and taste - Customized Service - Autonomy of modules – Offer Only-One module with its distinguished strength - Combination of modules – Offer options by combining variables - Optimizing the option – Offer a distinguished service by optimizing each option Module Selling Option Offering Versioning Strategy WebOS Modeling in industrial sector WebOS Solution Sales WebOS Solution Sales

27 Business Development Strategy – Profit Generating Method III -Secure contents through strategic alliance with service providers in related fields -Operate profit-sharing program with CP -Maximize PR effect through a joint marketing and start diverse joint business - Provide information through application developed itself - Develop a business suitable to characteristics of each application - Extend service range starting from Web Gallery, cinema Service Bank Own developed information Alliance with contents providers ASP business through service bank ASP business through service bank

28 Business Development Strategy - Profit Generating Method IV - Make company icon showing its service on screen WebTop is expected to improve its service quality & differentiate it through icon-making - The most effective PR effects among other ads services - Prospective recommended sites - Increased value added - by screening services providers on registration to the channel - Individual PR activities of each company - by showing CI of service providers - Netboard as a way of company PR - Netboard as a information collector about events & ads on On-Line - Netboard possible to transform into Rich Media with strong message sending function Profit Ads on channel Ads Ads using icon Secure profit by attracting ads Secure profit by attracting ads

29 Business Development Strategy – Ways to generate synergy effect Users Service quality improvement Strategic Alliance with ASPs Service Bank Shopping Stock Auction Game Module Land etc. Highly recognized Company All the company hoping strategic alliance

30 SWOT Analysis Strengths Weaknesses OpportunitiesThreats Increasing internet users  popularity Expended internet infrastructure & Technological progress Change of Market Environment (DeskTop → WebTop) Prevail the market with an advanced concept of service on WebTop environment Target potential customer (All internet users Explore Overseas markets (Global Marketing) New concept to meet demands of Knowledge Industrial society in 21st century Integrated Service to offer an optimum Web environment Service usable Anytime, Anywhere in WebTop environment Easy to make an alliance with other service providers due to extension & compatibility of its technology Services with free membership system Diversify services through strategic alliance with contents providers Recruit high qualified man-powers in R & D and marketing field project Errors in integrated services : Potential recognition discordance caused by insufficient contents Similar services already launched by internet company : Pre-acquisition of members, Advantageous marketing effect for first comers Short capital for Project Weak brand image of LasT One Same products from competitors (Metooism) - myLAS, Netffice, Dreamwiz Foreign big software company (SUN, MS) with integrated service with web and office program Huge early investment cost (Marketing/R&D) Security on Data and System

31 ROI Analysis – Expected cost

32 ROI Analysis – Base for an expected subscriber number Subscriber numbers of Hanmail Numbers of Local internet user According to the current trend of increasing numbers of local internet users, we expect the numbers will easily surpass 13 mio around the second half of the year Daum Communication Corp., one of local internet mail service providers shows its increasing rate of subscribers as the charter above. Considering that even the simple mail service can retain subscribers in such a dramatically increasing rate, we are confident can reach approximately 3 mio subscribers within the year 2000 with its more overall and sophisticate services.

33 ROI Analysis – Expected Sales Target Expected Sales Target Periodical detailed sales target

34 ROI Analysis – Cost/Benefit Effect  NetBoard (Ads/ Media Service ) Break Even Point Profit Cost(Loss) Variation Rate BEP Sales (2 mio Won) 1.8 mio 2.5 mio Cost VC 0.7 mio FC 1.8 mio 45° Standard Sales (8 mio)  Subscriber to paid services (Supplementary addtion /Paid module)  Package program/Office solution sales Sales Target : 8 mio Subscriber Target : 1.7 mio pers. 3rd Stage BEP Sales Target : 2 mio Won 5.8 mio (Profit)

35 ROI Analysis – Expected Sales Trend for next 3 years

36 ROI Analysis, 4 years statement of profits and losts Unit: 1000 Won

37 ROI Analysis – Prevision for 4 years of the balance sheet Unit: 1000 Won

linked services Target Services Complex shopping mall Personal Gift Service Reservation service for cultural goods Shopping Internet Phone Message Sending Service Internet Chatting Service Communication Fax Service Digital sign/ Business Card Virtual Conference Room Company Intranet Internet Office Web TV Web Radio customized news Mass Media Cyber Cinema Cyber Gallery Cyber Writer's Culture On-line Game Web Game Fortune Teller Cyber Comics On-line JukeBox Entertainment Digital Shop Electronic Payment System Electronics Stock Weather Travel Job Investment Gift/Event Additional InfoService On-line Virus cure Dictionary/Translation Service Surfing Translated Japanese Web site Map searching Survey Value-added service

Service Structure Website First Page Membership Intro Simulation Member First Visitor Web First Gate Net Board Web Mail File Address Memo pad Post-it Schedule Basic Component Free Component Paid Component Service Bank Package Basic Package Student Package Business Package Web Top Popup Menu Short-cut icon Drag & Drop Browser URL input Skin function Browser Channel Bookmark Community Chatting Room Web meeting Club Shopping Discussion Information Complex Shopping Mall Book Store Car Computer Agricultural products Help Guide Bulletin Board information Set-up Personal set up Homepage City Service Selection

Service Structure Basic Component Map Searching Service Dictionary/Translation Service Virus Cure Gift/Event Information Free Component Electronic Commerce On-Line education Internet banking service Paid Component Service Bank Package Basic Package Student Package (Undergraduate/ Graduate) Business Package Web Office Web Mail System Inner-Window Net Board My Home Wizard Services selectively installed in based on individual choice Services selectively installed in based on individual choice Member’s choice on Package program Company intranet/Conference room Web TV Web Gallery Reservation service for cultural goods E-business card E-album E-magazine Customized news Memories finding Survey

Service Structure Member Personal Data - Basic Data - Additional Data - Components related Data (Schedule/task/ Individual module data) - Behavior Pattern Data Personal Data - Basic Data - Additional Data - Components related Data (Schedule/task/ Individual module data) - Behavior Pattern Data Operational Data - Current status of service - Current status of usage in each component - Conclusion of analysis on customer internal management data - Basic Data - Data on events - feedback management data (survey, survey on customer demands) - real time data on customer demand Business Partner Data - Basic Data - Developed module data (SPEC/function/etc) - Shared data on members Data Base Web Office Cooperated company Web Mail System Net Board My Home Wizard Payment System Free Component Paid Component Registration Components System Data warehouse Divers Statistics Data mart Decision-making support system (DSS ) Decision-making support system (DSS ) System Concept Inner-Window