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Joe Firmage Chairman & CEO Introduction to USWeb

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Page 1: Joe Firmage Chairman & CEO Introduction to USWeb
Page 2: Joe Firmage Chairman & CEO Introduction to USWeb

Joe FirmageChairman & CEO

Introduction to USWeb

Page 3: Joe Firmage Chairman & CEO Introduction to USWeb

Creative DesignMultimedia Production

Brand Development

Creative

Strategic Technology andCommunications Consulting

Strategy

USWeb Expertise

Technology

Client/ServerLegacy & MainframeNetworking & TCP/IP

Page 4: Joe Firmage Chairman & CEO Introduction to USWeb

USWeb: The Category Leader

• USWeb is the category-defining leader of Strategic Internet Services– 22 of the Fortune 100 are clients

– $80 million run rate, 800+ professionals

– 25 offices around the world

– The only major pure-play brand in the market

– The only company in every major U.S. market

– A highly scalable, now proven business model

Page 5: Joe Firmage Chairman & CEO Introduction to USWeb

US Web’s ClientsUSWeb Clients

Page 6: Joe Firmage Chairman & CEO Introduction to USWeb

Strong Financial Progress

($10,000)

($5,000)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Q3 Q4 Q1

Pro FormaRevenue

EBITDA Loss

000s

Page 7: Joe Firmage Chairman & CEO Introduction to USWeb

Hypergrowth Strategy

Page 8: Joe Firmage Chairman & CEO Introduction to USWeb

Intrinsic Growth

• Enterprise Practices– Strategy Consulting

– Business Applications

– E-Commerce

– Audience Development

– ERP

– Digital Media Production

– Network Operations

• Industry Practices– Manufacturing

– Healthcare & Life Sciences

– Financial Services

– Entertainment & Media

– Consumer Products & Services

Page 9: Joe Firmage Chairman & CEO Introduction to USWeb

The Strategy Consulting Practice

Increasing Commoditization

Eff

ica

cy

of

IT A

rch

ite

ctu

re

LeadingLeading CompetingCompeting

FailingFailingRiskingRisking

Critical IT Efficacy

Market Context

Page 10: Joe Firmage Chairman & CEO Introduction to USWeb

The E-Commerce Practice

Page 11: Joe Firmage Chairman & CEO Introduction to USWeb

Case Study - Ingram Micro

Background:

• World’s largest wholesale distributor of computer technology products

• Offers 36,000 products from 1,100 suppliers

• Each quarter, liquidated large volumes of non-returnable discontinued inventory

Page 12: Joe Firmage Chairman & CEO Introduction to USWeb

Case Study - Ingram Micro

Objectives:

• Increase margins (reduce losses) from non-returnable product

• Reduce dependency on “whole-lot” liquidation houses

• Meet needs of their reseller customer base for competitively priced merchandise

Page 13: Joe Firmage Chairman & CEO Introduction to USWeb

Case Study - Ingram Micro

Solution: Auction Block• Real-time inventory auction system to existing channel

customers

Page 14: Joe Firmage Chairman & CEO Introduction to USWeb

Case Study - Ingram Micro

Results:

• Expect 1,000% ROI in the first year

• Project pay-back in one month

• Reduced use of liquidators = higher margins

• Evolving to be an incremental revenue generator

Page 15: Joe Firmage Chairman & CEO Introduction to USWeb

Challenges

• Two dimensions of growth: organic & aggregation

• Integration

• Maturing marketplace growing rapidly

• Recruiting

Page 16: Joe Firmage Chairman & CEO Introduction to USWeb

Acquisitions

• Input: a totally fragmented SIS market

• We built the company to integrate and intrinsically grow acquired top-talent professional services firms– $40 million in infrastructure in place

– Dedicated M&A team

– Dedicated intergration team following 310-step integration methodology

• Output: one integrated market leader

Page 17: Joe Firmage Chairman & CEO Introduction to USWeb

USWeb Knowledge Management System

USWeb Central Demo

Page 18: Joe Firmage Chairman & CEO Introduction to USWeb

Future Trends

• Transition to public networks

• Network outsourcing– VPN’s (IP networks)

– network operations

– directory and security services

• Internet (lightweight) based ERP

• Reintermediation

• Supersites

Page 19: Joe Firmage Chairman & CEO Introduction to USWeb