Joe FirmageChairman & CEO
Introduction to USWeb
Creative DesignMultimedia Production
Brand Development
Creative
Strategic Technology andCommunications Consulting
Strategy
USWeb Expertise
Technology
Client/ServerLegacy & MainframeNetworking & TCP/IP
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
US Web’s ClientsUSWeb Clients
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
Hypergrowth Strategy
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
The Strategy Consulting Practice
Increasing Commoditization
Eff
ica
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of
IT A
rch
ite
ctu
re
LeadingLeading CompetingCompeting
FailingFailingRiskingRisking
Critical IT Efficacy
Market Context
The E-Commerce Practice
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
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
Case Study - Ingram Micro
Solution: Auction Block• Real-time inventory auction system to existing channel
customers
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
Challenges
• Two dimensions of growth: organic & aggregation
• Integration
• Maturing marketplace growing rapidly
• Recruiting
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
USWeb Knowledge Management System
USWeb Central Demo
Future Trends
• Transition to public networks
• Network outsourcing– VPN’s (IP networks)
– network operations
– directory and security services
• Internet (lightweight) based ERP
• Reintermediation
• Supersites