Steve Waters Vice President of Worldwide Marketing

Steve WatersVice President of Worldwide Marketing

Press and Analyst Tour

February 1999

FirePond At A Glance

FirePond News

FirePond Customer Applications

Agenda

Interactive Selling andElectronic Commerce

Market Position

FirePond At A Glance

FirePond News



Market Position

FirePond At-A-Glance

Deliver breakthrough competitive advantage through enterprise commerce systems unprecedented in functionality, integration and ease of use.

Revolutionize the sale and marketing of complex products and services in the digital age.

Mission

Vision


Founded in 1983

360 Employees

Executive offices in Boston

12 office locations worldwide

Over $100 Billion in sales revenue processed every year through FirePond systems

Over 20,000 dealerships worldwide use FirePond systems

200,000 users in production

Vertical Markets & Clients Transportation

High-Tech / Telecom

Manufacturing

Health Care and Services

Executive Team

Lee GinsburgSVPOrganizationalGrowth

Scott SchwartzmanVPProfessionalServices

Ilya GorelikSVPProduct Strategyand Development

Paul LavalleeEVPAmericas Sales

Steve WatersVPMarketing

Graham WilliamsSVPEurope/Asia

Klaus BesierCEO

Paul McDermottCFO

“Keep and eye on Mr. Besier and his team as the new millennium dawns”

AMR Research, November, 1998

Jerry JohnsonFounder and

Chairman


FirePond News



Market Position

State of the Market

$15.7B

$42.7B

1998 2002

Front Office Software Market*

Bill

ions

* Source: IDC, January 1999

TES CRM OMS Customer Care Sales Force Automation TERM Guided Selling Interactive Selling

? A volatile mix of Front Office vendors

clamoring to get their messages heard

Focus on call tracking, forecasting, and opportunity management

SFA = “Sales Force Administration”

Linked directly to revenue generation

Enhance all of your customer interactions

Provide a compelling and personalized BUYING experience

Post-sales interactions Includes help desk,

customer service, warranty, and fulfillment operations

Only manages existing customers

Prospecting

ServiceSales

A Customer’s Perspective

CustomerC U S T O M E R

Prospecting

ServiceSales

Front Office Application Families

CustomerC U S T O M E R

SFA/OMS

Customer Care Interactive Selling

Sales AdministrationSales Force AutomationOpportunity Management SystemMarketing Campaign Management

Interactive CatalogsSales ConfigurationMarketing EncyclopediaPrice and QuotationPersonalized Content

Customer ServiceHelp DeskOrder FulfillmentWarranty ServicesAccount Management

Prospecting

ServiceSales

Front Office - Key Players

Customer

SIEBEL SYSTEMSSALES LOGIXPIVOTALBAAN/AURUM

FIREPONDCALICOBAAN/AURUMTRILOGYNICHE PLAYERS

VANTIVECLARIFYSIEBEL/SCOPUSREMEDY

C U S T O M E R

Front Office Application Value

SFA/OMS

Customer Care

Interactive Selling

“Enterprise contact management.”

GartnerGroup, October 1998

“CRM projects have a disturbingly high (55%-75%) failure rate”

Yankee Group, October 1998

“About 80 percent of sales automation projects fail to deliver

ROI” Giga Group, January 1999

“The single highest ROI investment a company can make in sales technology”GartnerGroup, October 1998

“FirePond will be the only ISS leader through the year 2000”

December 1998

Interactive Selling Systems Leadership

Why are we leaders in ISS?

Complete selling functionality

Heavy investment in UI excellence and usability

Deep understanding of customer buying processes

Comprehensive sales and marketing functionality productized from best practices developed over 15 years experience


FirePond News



Market Position

In ten years, 90% of all sales people will be replaced by electronic sales assistants

Death of a Salesman

Interactive Selling and Electronic Commerce

CustomerService

Sales

Prospecting

“CustomerRelationship

Management”

C U S T O M E RClient/Server

“Interactive Selling”

Internet“E-Commerce”

Interactive Selling and Electronic Commerce

Commerce Transaction Server

Payment FulfillmentCustomer Service

Internet

How do customers

BUY on the Internet?

C U S T O M E R S

ERP and Legacy Systems

“ Electronic Commerce”

Interactive Selling IS Electronic Commerce

C U S T O M E R S


Payment FulfillmentCustomer Service

ERP and Legacy Systems

Complete Buying Functionality

Order ManagementShopping CartOrder Forms

Interactive Selling IS Electronic Commerce

Interactive Selling

Proposal Generator Dynamic Personalized Content

FinancingOn-line Credit CheckPOs and Payment Terms

Pricing and QuotationPricing and PromotionsTax, Duties, Shipping

Configuration Solversand Fuzzy Logic

Parametric SearchProduct RecommendationsSales Configuration

Multimedia Presentation Intelligent Design and Navigation

Customer Information Customer Profiling

Marketing Encyclopedia Interactive Product Catalog

Electronic Commerce

- Examples -

One Software System For All The Ways You Sell

Breakthrough electronic commerce solutions will combine best of breed buying functionality with real time back-end integration


Customer CareERP and Legacy Systems

Data WarehousingSupply Chain Systems

Complete Buying/Selling Functionality

Interactive SellingElectronic Commerce

Customer CareERP and Legacy Systems

Data WarehousingSupply Chain Systems

C U S T O M E R S

FirePond allows companies to maximize revenue driven through their traditional sales models while effectively transitioning to the emerging paradigm of e-commerce

The Salesman is Not Quite Dead Yet!%

of

Rev

enue

Time

Traditional Channels Electronic Commerce

FirePond allows companies to maximize revenue driven through their traditional sales models while effectively transitioning to the emerging paradigm of e-commerce

The Salesman is Not Quite Dead Yet!%

of

Rev

enue

Time

Electronic Commerce

Revenue

Traditional Channels

Customer Deployment Focus

15%

C/SFirst

% o

f D

eals

WebFirst

50%

Commitmentto Both

85%

C/SFirst

% o

f D

eals

WebFirst

80%

Commitmentto Both

70%

30%

- 1998 Deal Flow - - 1999 Deal Flow -

"FirePond's long-standing leadership in interactive selling has uniquely positioned its intuitive applications at the forefront of

electronic commerce"

Peter Firestone, Partner Ernst & Young Electronic Commerce Practice

Electronic Commerce Leadership

“As more business-to-business applications move to the Internet, we see

FirePond as well positioned to handle many of the front-end applications”

November 1998


“Companies such as FirePond, who recently deployed GM's Web application that allows customers to configure a car on-line, are also likely to have a strong

impact on the development of e-commerce solutions in the automotive industry”

October 1998




FirePond News


Recent FirePond News

Successful implementations GM Web - US in 100 days, Canada in 45 days Subaru of America - Phase 1 live 1/99 Cummins Power Generation

Integration to Oracle Manufacturing 1/99 KLA-Tencor - Signed 12/98, Phase 1 live 1/99

Strong new account momentum (deployment date) Blue Cross and Blue Shield of Minnesota (3/99) Bell Atlantic Data Solutions Group (5/99) Renault VI Internet System (5/99) ADP Internet System (4/99)


New executive team members Ilya Gorelik, SVP of Product Strategy and Development Scott Schwartzman, VP of Professional Services Lee Ginsburg, SVP for Organizational Growth Paul McDermott, CFO Dan Evans, VP Health Care and Insurance Business Unit

Aggressive investment in international expansion and creative design

New international managing directors 60 overseas employees Over 30 creative design resources focused on interactive

agency services


Established Health Care and Insurance Business Unit based on the success of Blue Cross Blue Shield

Strong Implementation partners Over 70 trained resources worldwide Strategic Ernst & Young manufacturing and health care

initiatives

Established integrator relationships worldwide Americas: Ernst & Young, IBM, Intelligroup Europe: CAP Gemini, Debis Systemhaus Asia: LG Hitachi



FirePond News


Blue Cross of Minnesota

Tie agents, delivery channels and end customers closer together through an integrated selling platform

Increase the speed and accuracy of customer quotes and proposals

Deliver branding consistency across all sales channels to minimize the perception of health plans as commodities

Simplify complex plan information to help overcome consumer confusions around managed care options

Become easiest company for agents and their customers to work with

Blue Cross Demo

“With Signature Plus ensuring real-time access to information and unsurpassed personalization to each client’s specific

health care needs, our agents see Blue Cross as the plan of choice for their clients.”

Richard Neuner, Chief Sales & Marketing OfficerBlue Cross and Blue Shield of Minnesota

Renault Truck Web

Achieved 100% field usage for dealer-based system Reduced the time necessary to generate a complete

proposal with product, configuration, and pricing information by 90%.

Eliminated order errors generated at the point of sale

Leveraged sophisticated FirePond dealer system for web deployment in 90 days for a small group of their largest business customers (B2B Extranet)

Includes compelling visual spec’ing and use recommendations engine.

Renault Truck Web Demo

“Signature Plus will position Renault VI as a visionary in the trucking industry in the areas

on-line selling and business to business electronic commerce.”

Bruno Chazalette, Marketing ManagerRenault VI

ADP Web

Web-based payroll solution recommendation engine Buyer needs analysis Cost breakdowns Allows users to select services beyond payroll Customers can print out branded proposal

Direct web sales to small to medium sized businesses

Transforming direct selling model to powerful self-service buying application on the web

ADP Web Demo

“With the Signature Plus system providing clients with the specific information they need to make

buying decisions, we’re able to reach new levels of client service as well as expedite the sales

process.”

Bud Angelus, PresidentADP

General Motors Web

Leverage the value of existing functionality and data (PROSPEC dealers system)

Implement a highly differentiated web selling solution for all brands in 100 days, 45 days in Canada (French and English)

Capture customer behavior data for use in data mining and product planning activities

Appendix

Target Markets and Product Detail

Automotive & Trucking

Manufacturing

Technology

Health Care

Mining & Metals

Media

Travel

Professional Services

Chemicals

Energy

Banking

Utilities

Retailers

Food

Consumer Products

Electronics

Financial Services

Insurance

Telecom

Low High

Vo

lum

e

Product Complexity

High

FirePond Target Markets

Defense

- The FirePond Sweet Spot -

FirePond Customer Fit

Company Size >$500M in Revenues

Attribute Description

Industries Transportation, Manufacturing, High Tech, Telecom,

Health Care, Financial Services

Channels E-Channel, Large Direct Sales, Partners, Kiosk Selling

Products Complex with multiple variables and dependencies;

Customized services

Key Values

Exceed customer expectations Exploit new channels One-to-one marketing and promotions Sales Channels are a strategic asset Value high ROI of selling tools Understand sales admin Vs. sales effectiveness Support sales channels, not burden them Strong, consistent POWER branding

- High-Level Criteria -

Signature Plus Sales and Marketing Framework

BACK OFFICEINVESTMENTS

BUSINESS OBJECTS

KioskPartnersSalesWeb

PRESENTATION LAYER

DATA WAREHOUSE

DATA CAPTURE

DATA

DATA MODEL

TOOLKIT

SYSTEMS

ERP

SUPPLY

LEGACY

E- BRIDGE INTEGRATION

Order

Proposal

Finance

Pricingand

Quotation

Configuration

PresentationCustomer

Information

Electronic Catalog

and Marketing Encyclopedia

CustomerDatabase

Order Fulfillment

System

Business Objects and Workflow

Documents

Steve Waters Vice President of Worldwide Marketing