Portugal online Signs of Growth and Innovation João

Portugal online Signs of Growth and Innovation João Dias da Silva Distribution Manager MBA in Logistics April 2003 Portugal online 1

Agenda Trends e. Business. pt Case-studies Innovation My view Invitation April 2003 Portugal online 2

Trends e. Business. pt Case-studies Innovation My view Invitation Trends IT Market Yearly growth rate is more than 10% Software and Services yearly growth rate is more than 18% Source: IDC April 2003 Portugal online 3

Trends e. Business. pt Case-studies Innovation My view Invitation Trends Internet Access Yearly growth rate may be 32, 6% till 2005 In 2002 access rate was 43% while EU average was 39% In 2002 e-Commerce usage was only 9, 3% Source: IDC April 2003 Portugal online 4

Trends e. Business. pt Case-studies Innovation My view Invitation Trends e-Commerce 100% Portuguese Companies with >10 HR 70% has Internet access 26% has a website M&L companies (>250 HR) • nearly 100% has Internet access • more than 50% has a website • only 6% has e-Commerce applications Source: INE & UCP April 2003 Portugal online 5

Trends e. Business. pt Case-studies Innovation My view Invitation e. Business. pt Business-to-Business-to-Consumer • e-Procurement solutions available • very well accepted in several markets • success limited to comodity markets • penetration is ~25% (¼ of Internet • logistics and fulfilment processes are users has bought online at least once) based on strategical partnerships with • logistics and fulfilment processes are several 3 PLs (including national postal based on dedicated partnerships as well service) and IT consulting companies as optimisation with conventional flows April 2003 Portugal online 6

Trends e. Business. pt Case-studies Innovation My view Invitation e. Business. pt Consumer-to-Consumer e-Government • very well succeeded examples in several markets and formats • horizontal and vertical solutions • consumer electronics, communications, collectionables and computer products are the top segments April 2003 Portugal online 7

Trends e. Business. pt Case-studies Innovation My view Invitation Case-studies • Born in February 2000, as a partnership between PT Prime and Commerce One • In September 2000, promotes first big online auction in Portugal - 600. 000€ • In December 2000, reaches 100. 000 articles in catalog • In 2001, established partnerships with TNT Logistics, Grupo Luis Simões (leading LSP in Iberia) and Postlog-EMS (which belongs to the national postal service) • A leading bank group joined Tradecom and saved 15. 000€ in 3 years • Some important e-Marketplaces: construction (public and private), health (hospitals) • Several other partnerships: SAP, accenture, Dun&Bradstreet, etc. April 2003 Portugal online 8

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Trends e. Business. pt Case-studies Innovation My view Invitation Case-studies • Continente created the first large supermarket in Portugal, in 1985 (Grupo Sonae) • Today it has 14 large supermarkets (132. 000 m 2) + 87 small & medium-sized stores (161. 000 m 2) all over the country, apart from 2 very large distribution centers • In 2001 started online sales and today it is still active (main competitor has aborted) • More than 20. 000 products available on catalog • Service is very well defined (delivery lead-times, return policy, payment, privacy, etc. ) • Distribution is either dedicated or optimised within regular distribution routes • Penetration of online food & beverage segment is still very low in Portugal (~1%) April 2003 Portugal online 10

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Trends e. Business. pt Case-studies Innovation My view Invitation Innovation High-tech services «Made in Portugal» www. tmn. pt www. tvcabo. pt www. viaverde. pt April 2003 • The leading mobile telecom player (belongs to PT) was the first in the world to launch the rechargeable SIM-card system, which has become the most popular format in recent years (penetration of mobile-com is >90%!) • Portugal will be among the first 5 countries in the world to have the Digital Interactive TV Service (Web. TV), following a recent partnership between TVCabo and Microsoft. • Via Verde was the first motorway automatic toll system in the world, based on transponder technology (RFID), with instant connection to the user bank account (invoice is mailed monthly to user’s home address). Portugal online 12

Trends e. Business. pt Case-studies Innovation My view Invitation Innovation High-tech services «Made in Portugal» www. sibs. pt April 2003 • The main portuguese ATM service provider (Multibanco) is one of the most developed and innovative in the world • Apart from the basic operations, the ATM network provides: • “Telemultibanco”, which associates a mobile number to a certain bank account, allowing mobile transactions • “Railway-CP”, which allows to buy train tickets at the ATM machines (operation receipt replaces usual ticket) • “Via Verde” and “Access”, which allow non-stop in traditionally timeconsuming toll operations (motorway, fueling and parking) • “PMB-Electronic Purse”, a rechargeable card • “Show ticket sales”, for concerts or sport events, if the promoting companies provide this service • “MBNet”, special ID service for online shopping Portugal online 13

Trends e. Business. pt Case-studies Innovation My view Invitation My view • Talking about e-fulfillment and e-logistics is talking about service: the product is known or “is supposed” to be known by who orders online… • The service is as good as the supplier is able to adequately fill the gap that lays between the order-click and a successful delivery: the buyer must feel the “presence” of the seller and the product must always seem “visible”… (e-psychology!) • Therefore some important challenges might be: • communication – prompt, effective, objective, interactive (e-mail, SMS…) • gap size – what if the lead-time is longer or shorter than scheduled? (CDPs…) • partnership – product is likely to be in several “hands” before delivery • innovation – service must meet and April 2003 (sometimes…) Portugal online exceed customer’s expectations 14

Trends April 2003 e. Business. pt Case-studies Innovation Portugal online My view Invitation 15