Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (December 2000)
21 slides from Morgan Stanley's investor presentation, December 2000
Slide 1: Real World Example; Looking Outside: Internal into External Focus
MORGAN STANLEY DEAN WITTER Page 362 Real World Example l Large Fortune 50 transportation company l Receives 10,000 invoices a week l Manually enters those invoices into ERP system l Reconciles invoices with purchase orders l Manages the exceptions l Sends out 10,000 checks to suppliers l TRY THIS IN
Slide 2: Internet Impact on the Enterprise – The Phases; Three Key Problems
MORGAN STANLEY DEAN WITTER Page 363 Internet Impact on the Enterprise – The Phases New Sales Channels 4 Inter-Company The Collaborations Nex t Ph ase Internal Cost Savings Procurement The Enterprise 1 3 Intra-Company Collaboration 2 MORGAN STANLEY DEAN WITTER 46 charles.phillips@msdw.com Three Key P
Slide 3: Different Paths, Same Destination; Spatial Fragmentation of Markets
MORGAN STANLEY DEAN WITTER Page 364 Different Paths, Same Destination Collaborative Commerce Collaborations Commerce MORGAN STANLEY DEAN WITTER 48 charles.phillips@msdw.com Spatial Fragmentation of Markets S B B S S B B S B S Premier S Buyer S B B B S S Geography 1 Premier B Geography 3 B Seller S S
Slide 4: Networks Deliver Transparency; The Buyer Gets Transparency
MORGAN STANLEY DEAN WITTER Page 365 Networks Deliver Transparency B S B B S B S S S B B B S B B S S B S B S S B S MORGAN STANLEY DEAN WITTER 50 charles.phillips@msdw.com The Buyer Gets Transparency l Price Transparency l Does price vary significantly by geographic region or among size of customer? l
Slide 5: The Buyer Gets; B2B Exchange Market Functions
MORGAN STANLEY DEAN WITTER Page 366 The Buyer Gets l Control over the procurement process; implement business rules more consistently l Reduce maverick buying; maverick purchases average 25% premium over corporate purchase agreement l Supplier performance measurement l End-to-end view of chain of co
Slide 6: Exchange Pricing Models So Far; Stratification of Enterprise Procurement
MORGAN STANLEY DEAN WITTER Page 367 Exchange Pricing 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 receivables pa
Slide 7: Federated Net Markets; Open Markets Can Be Brutal
MORGAN STANLEY DEAN WITTER Page 368 Federated Net Markets Buyers Will Force Integration Major Major Market Major Market Market Micro Market Shared Content Micro Micro Market Micro Market Market MORGAN STANLEY DEAN WITTER 56 charles.phillips@msdw.com Open Markets Can Be Brutal l Overcomes spatial lim
Slide 8: How Big Are We Talking? Some Numbers; Unbridled Price Competition
MORGAN STANLEY DEAN WITTER Page 369 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 9: Real-Time Bid/Ask Trading; Sellers Get a Few Things as Well
MORGAN STANLEY DEAN WITTER Page 370 Real-Time Bid/Ask Trading Size Matters - along with Volatility and Standardization Best attributes for real-time trading Stocks Standardized Product Telecom Energy Grain Metals Chemicals Paper Bubble Size = Size of Industry Volatility: Price, Costs, Supply, or Dem
Slide 10: A Procurement Revolution; The Buyer's View of the Procurement Landscape
MORGAN STANLEY DEAN WITTER Page 371 A Procurement Revolution Buying Buying Buying Organization Organization Organization Procurement Software Procurement Software Procurement Software Commerce Network Suppliers Suppliers Suppliers Suppliers MORGAN STANLEY DEAN WITTER 62 charles.phillips@msdw.com The
Slide 11: The Seller's View of the Procurement Landscape; Product Suitability Matrix
MORGAN STANLEY DEAN WITTER Page 372 The Seller’s View of the Procurement Landscape Buyer Buyer Buyer Buyer’s Proprietary Buyer’s Catalog Proprietary Catalog Seller’s Buyer’s Network Firewall Web Site og Trading tal Dir r Ca Exchange e Buyer ec uy tW toB eb Multi-Vendor on Sit cti eO Catalog nne rde
Slide 12: Assess and Weight the Transparencies; E-Hubs
MORGAN STANLEY DEAN WITTER Page 373 Assess and Weight the Transparencies Price Product Transparency Transparency Exchange Availability Supplier Transparency Transparency MORGAN STANLEY DEAN WITTER 66 charles.phillips@msdw.com E-Hubs The Pillars of Value Content Third-Party Collaborations Services Co
Slide 13: Order Matching Won't Cut It; Exchanges – The Road to Value
MORGAN STANLEY DEAN WITTER Page 374 Order Matching Won’t Cut It l NYSE volume of $7.3 trillion in 1998 l 168 billion trades l Profit of $110 million l Companies won’t pay a lot to route transactions over a free network to people they already know l Remember, its down to six cents a share l Look for
Slide 14: Collaborations – B2B Stickiness; The High Cost of B2B Interactions
MORGAN STANLEY DEAN WITTER Page 375 Collaborations – B2B Stickiness l Supplier certification/reputation l Electronic bill presentment l Application hosting l Post-sale support, warranty programs l Sourcing of products l Community news, employment, etc. l Contract administration l Receivables managem
Slide 15: Collaborations in the Printing and Construction Industries
MORGAN STANLEY DEAN WITTER Page 376 Collaborations in the Printing Industry Print Buyer Pre- Marketing Press Broker Agency Shipper Purchasing Print Buyer MORGAN STANLEY DEAN WITTER 72 charles.phillips@msdw.com Collaborations in the Construction Industry Architect Engineer Developer General Contracto
Slide 16: Collaborations in the Aerospace and Energy Industries
MORGAN STANLEY DEAN WITTER Page 377 Collaborations in the Aerospace Industry Aerospace Company Engine Maintenance Manuf Hull Manuf Airlines Component Documentation Supplier Regulators MORGAN STANLEY DEAN WITTER 74 charles.phillips@msdw.com Collaborations in the Energy Industry Reservoir Development
Slide 17: The Common Theme; Hubs Integrate Multiple Facets of Commerce
MORGAN STANLEY DEAN WITTER Page 378 The Common Theme Point-to-Point Must Go to Hub-Spoke Partner Partner Partner Partner E-Hub Partner Collaborations Partner Partner Partner MORGAN STANLEY DEAN WITTER 76 charles.phillips@msdw.com Hubs Integrate Multiple Facets of Commerce Solution Manufacturer E-Hub
Slide 18: The Drivers to E-Hubs; The Chain of Commerce in the 21st Century
MORGAN STANLEY DEAN WITTER Page 379 The Drivers to E-Hubs l Lower inventory l Lower interaction costs l Process transparency; internal and external l Digital audit trail; better measurement l Improved 24 x 7 service; multilingual l Leverage expertise l Enhanced discovery MORGAN STANLEY DEAN WITTER 7
Slide 19: The Challenge of Managing Content; Content Matters
MORGAN STANLEY DEAN WITTER Page 380 The Challenge of Managing Content l 60% of catalogs on paper l Remaining 40% in cryptic format meant for machine-to-machine interaction l Redundancies and abbreviations l Synchronizing content a challenge; constantly changing l Categorizing content for user friend
Slide 20: E-Hub Architecture; Layers of Value: From Exchange to Hub
MORGAN STANLEY DEAN WITTER Page 381 E-Hub Architecture The Service Matrix Customized Views Layer Security Services User Content Management/ Member Profile Directory of Services/Rights Commerce Content Collaborations Configuration Rules Repository Services Document Services Process Definitions Applic
Slide 21: Exchanges – The Industry Utility Model; Status Check
MORGAN STANLEY DEAN WITTER Page 382 Exchanges – The Industry Utility Model l Faster time to market; aggregate scarce resources; more attention form technology vendors l Less confusion for buyers and sellers l Common plumbing/utility optimized for the industry l New company structure encourages innov
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