Intel Corp — An example of Business to

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Intel Corp - An example of Business to Business ECommerce in Europe Jeremy Ladds Manager, Internet Marketing & E-Commerce, Direct Accounts Intel Corporation (UK) Ltd ® 1

Agenda l E-Commerce Drivers l Intel’s Business to Business E-Commerce Program l Lessons learned l Summary ® 2

Customers are Business Drivers “. . . the more effectively Intel matches production and delivery of its microprocessors to Dell’s demand, the more Dell’s efficiency improves. . . By optimizing the supply chain, we all win. ” Dell Computer Corporation ® Source: CIO Magazine 8/15/98 3

Intel is a Global Company 1997 Revenue of $25. 1 B 44% from the Americas 27% Europe 19% APAC 10% Japan ® 4

Development Strategies l Alternative programs approaches to e-business – Select isolated, supporting business Intel’s Choice Ö lower risk, lower reward Ö develop, learn & rollout to other businesses ® – Target a mainstream business Ö higher risk, higher reward Ö develop, learn & rollout throughout company 5

Intel E-Business Pilot Private extranet for OEMs and distributors l Personalized delivery of encrypted information l Real-time order management l 24 x 7 l Worldwide l Information & transaction l ® 6

Strategic Business Value Broaden and deepen sales reach – Automate order management & info delivery Ö Connect geographically dispersed customer base, especially those who don’t have EDI Ö Provide 24 x 7 order capabilities Improve customer service – Automate tactical sales tasks – Enable faster/better access to information Make it easier to do business with Intel Focus Resources on More Value-Add ® 7

Methodology Whole Company Involved IS Role Management Buy In ® Planning & Logistics Role Sales & Marketing Role Product Group Input 8

Key Learnings l Connectivity and Internet performance – affected by many factors, must be all correct to work Ö Client desktop/browser and their local network performance Ö ISP connection and the long-haul to international backbone Ö The server environment and application design efficiency – measured by customer experience, avoid theoretical testing – improvements may require industry/country-wide collaboration l Strong encryption – HTTPS very sensitive, particularly to packet loss, apps efficiency & client performance. l Business process re-engineering – using new technology a big job – major efforts to make the way for business sales force l ® Support – require significant training on browser and web itself 9

Key Learnings l Content l Connectivity l Authorization Plan for impact on future growth & Entitlement l Support l Architecture l Focus on customer-centric design l Anticipate iterative design - firmly understand the end point ® 10

E-Commerce Aims Shift with Time • Mission Statement ‘ 97/98 Be a world leader in marketing, selling, and supporting Intel products and the Intel brands on the web. • Mission Statement ‘ 98/99 Use the unique power of the Internet to create significant value for Intel, our Brands and our Customers. ® 11

Know what to measure…. but have faith! “What's my ROI on e-commerce? ARE YOU CRAZY? This is Columbus in the New World. What was his ROI? ” Andrew Grove, Chairman & former CEO of Intel The Economist May, 1997 ® 12

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