1. © 1999 webMethods, Inc. All rights reserved. Page 1 Market Opportunity Source: Forrester Research Business-to-business e- commerce will grow three times faster than business-to-consumer e- commerce. Internet-based business- to-business e-commerce is a $43 billion industry, expected to expand to $1.3 trillion by 2003--12 times that of the business-to-consumer market B2B Market in $Billions

2. © 1999 webMethods, Inc. All rights reserved. Page 2 The Problem  To remain competitive, companies must:  Reduce cycle times  Eliminate supply-chain inefficiencies  Reduce time to market  Improve customer acquisition, retention, satisfaction  Traditional methods not well-suited  Not real time  Inflexible  Costly and timely to maintain and implement

3. © 1999 webMethods, Inc. All rights reserved. Page 3 The Evolution of B2B E-Commerce  B2B Integration is emerging as a cost effective way for companies to automate supply chain management, procurement, logistics and sell- side/buy-side e-commerce  B2B Marketplaces are evolving as a way to connect buyers and suppliers through centralized portals  Business community integration offers a way to connect customers, suppliers and marketplaces into extended trading communities It will become progressively harder for firms that cannot or do not want to trade online to survive --The Economist magazine, 6/26/99

4. © 1999 webMethods, Inc. All rights reserved. Page 4 Benefits of Business Community Integration  Decreased inventory  Reduced cycle time  Improved customer satisfaction and support  Lower administrative, inventory, logistics and other costs  Improved manufacturer/distributor coordination.  More efficient use of working capital  Improved inventory management and order management  Better outsourcing coordination  Tighter links with logistics providers  Better delivery of information required for planning and forecasting

5. © 1999 webMethods, Inc. All rights reserved. Page 5 Applications of Business Community Integration  Business Portals--partner integration  Vendor Managed Inventory (VMI)  Logistics  Outsourcing/sub-contracting  Collaborative planning and forecasting  Inventory visibility & order management  Automated procurement  Work In Progress (WIP) status  Advanced business models such as direct ship, merge in transit, assemble to order

6. © 1999 webMethods, Inc. All rights reserved. Page 6 What is XML?  XML is a subset of SGML (Standard Generalized Markup Language).  Unlike HTML, not just for presentation  First defined as a Web document format  Now used to transfer information between application systems

7. © 1999 webMethods, Inc. All rights reserved. Page 7 HTML Example Unlike HTML, which uses Markup Language to describe the structure of a document and implies layout, XML markup describes a document's content. Consider the following product description in HTML: Printer KomputerSource's Wizbang 3000 dot matrix printer Features: 40 pages per minute 60 dpi printing $200.00 10 lbs.

8. © 1999 webMethods, Inc. All rights reserved. Page 8 XML Example The same product description in XML might look like this: KomputerSource Printer dot matrix Wizbang3000 40 60 200 110 10

9. © 1999 webMethods, Inc. All rights reserved. Page 9 XML: Foundation for e-commerce  Power and ubiquity of the Web with system-to- system capabilities  Being adopted very quickly  Trading partners define XML vocabularies (DTDs) to meet needs; standards already emerging  Flexible, Easy to understand, deploy and customize  Foundation for e-commerce and integration over the Web

10. © 1999 webMethods, Inc. All rights reserved. Page 10 XML Purchase Order Example Mary Dridi webMethods, Inc.... WM-001-5995 1 Left-handed Wrench $14.99