Stella

1. Stella

2. Agenda • Project Goal/Where is the pain? • What is Stella? • Market Size • Who are the target customers? • Value Proposition - Why should a customer buy this? • Competition • NSCP Differentiation • Early Packaging/Pricing Ideas • Next Steps • Key Issues

3. Project Goal • Stella's purpose is to provide businesses with a world class solution for producing sticky 1:1 marketing relationships over the web with huge volumes of customers at very low costs. The application we deliver will: • Establish Netscape as the market leader in the 1:1 marketing space in terms of revenue for this class of application. • Solidify Netscape as a key provider of a solution for businesses to find new sources of sustainable revenue over the web.

4. Where is the pain? Companies with whom we have spoken: • Baan, Fidelity, Dell, Netcenter, Atyouroffice (SOHO Office Supply Site), FU • Data stored in multiple sources which must be maintained. • No ability to easily analyze website traffic data. (Netcenter collects 8GB per day.) • Business rules, if any, not being executed on real data • Existing 1:1 marketing applications difficult to integrate with existing systems • Cost prohibitive for middle market

5. Baan - Website Development • Access • One Voice • Usability • Security • Evergreen Content • Community • One:One Marketing

6. Fidelity • Stage 1 - make 401K accounts available • Stage 2 - Welcome page states user name • Stage 3 - Track, Analyze, Target • Little Tracking Today • Analysis by hand • No up-sell, cross-sell

7. What is Stella? 1. Track 2. Analyze 3. Target Analyze CreateRules Target RDBMS CreateReport ERP Stella Tracker Results Server Logs

8. 1. Track • Every piece of the page's performance • Going beyond the server logs • 1.Track who the user is based on name or GUID. • 2.Track where the user came from - linking site, portal, search engine and when they arrived • 3.Track how user moved through the site - clickstream • Links, Ads, Site Searches • 4.Track user transactions • 5.Track amount of time spent on each page • 6.Track total amount of time spent for entire visit • 7.Track search criteria RDBMS ERP Server Logs Stella Tracker

9. 2. Analyze Create Rules Analyze CreateReport • Based on the seven types of items being tracked: • Marketing Person should be able to: • Create a report to analyze the success of the website (we can include a default report) • Correlated data analysis (user ID or aggregate) • Statistical Analysis (eg % relative to overall page views, % relative to plan) • In real time - true campaign analysis (see attached) • Consider data from offline sources

10. 2. Analyze (con.) Create/Suggest Rules Analyze CreateReport • Based on the seven types of items being tracked as well as : • Marketing Person should be able to: • Create business rules to take actions based on the data which has been collected and analyzed from online and offline sources. • Stella should also suggest rules dynamically

11. 3. Target Marketer: Based on Business Rule X 1.Send e-mail to users who meet the condition 2.Show targeted advertisement to users who meet the condition 3.Show a particular piece of content to users who meet the condition Must have: Integration with existing content creation and management/workflow process for targeting execution and approval

12. Who is spending money today?

13. Market Size - Lowball Estimate Number of Potential Customers • Assumption: Stella is a packaged application whose price excludes middle and small companies • Financial Services - 250 • Retail - 150 • Manufacturing - 75 • Telco - 50 • Publishing - 75 • Professional Services - 25 • Avg. Expenditure on 1:1 Marketing Software = $9M/30=$300,000 • 625*$300,000 = $187,500,000

14. Stella Customers • Interesting sectors for Netscape to target: • 1. Financial Services • 2. Retail • Netscape expertise/customer base in FS • FS willing to pay $75 for a name • Q4 spending $1B to $2.3B • Both are the most scared - they are moving first • Macy’s and The Gap in last 4 weeks • Perhaps more appealing to our new owners than B to B?

15. Value Proposition • Create customer lifecycle on the web. • The customer lifecycle is the total number of times the customer engages the business searching for information, to make a purchase or to get service. • Find out who is doing what and why • Increase click to buy ratio. • Induce repeat visits • Reduce churn • Increase customer share.

16. Value Proposition "The value of any customer relationship is not based on a one-time sale, but on the number of times that customer returns. Such loyalty can only be achieved online when Web sites consistently provide unique and relevant customer experiences." Danny Rimer, senior analyst at Hambrecht & Quist. "We think personalization is where the whole Internet goes a year or two from now. Personalization is a huge focus for Dell and Dell Online. We have a team of folks dedicated to taking Premier Pages forward." Bill Morris, senior manager at Dell Online.

17. Competitive Landscape Where Netscape Leads... Stella Vignette Stella + Future Tense IPS Microsoft Site Srv Content Creation & mgmt services Broad Vision Epiphany NetPerceptions 1:1 Marketing services

18. Vignette • Elevator Pitch • the ability to build and manage customer relationships online. • comprehensive set of tools: Production Center, Business Center, and Development Center. • enables business managers, site managers, content authors and site developers to work collaboratively and productively. • provides openness, extensibility and interoperability for integration with your enterprise applications and extending the system with third party Web solutions.

19. Vignette (cont.) • Dozens of deployed referenceable accounts. Hottest private company per Red Herring. • Expected Improvements • Vignette Syndication Server (1Q99), a platform for content syndication, that lets businesses exchange digital products with partners and affiliates. • Weaknesses • Proprietary Architecture - may need to port • Existing Vignette customers are complaining about security. • Failed IPO attempt - cash poor

20. Broadvision • Elevator Pitch - BroadVision One-To-One • an industrial-strength software application system for rapid development and real-time operation of large-scale, personalized Internet, Intranet, and Extranet business applications. • supports large user and content databases, high transaction volumes, intelligent agent matching, and easy integration with existing business systems. • incorporates a suite of management tools that empower non-technical business managers, content editors, and Web masters to dynamically control application behavior from their desktops.

21. Broadvision (cont.) • BroadVision One-To-One 4.0 (Just (Shipped) • Rapid Development • Personalization • Improved Data Access

22. Broadvision (cont.) • Weaknesses • Cisco, E-Trade, Baan, and Internet Shopping Network have decided to rip Broadvision 2.6 pilots out because they describe this architecture as a "black box." • Difficult to deploy - all data must be imported into Broadvision's data store • All programming must be done in C++ • Expense. "The only people who know how to work this thing are Broadvision Consultants, and there are like 30 of them in the entire US and they charge $200 an hour, if they are even available." Munjal Shah, Baan

23. NetPerceptions • Elevator Pitch • Net Perceptions for E-commerce works like your company's best sales representative. It interacts with customers on a one-on-one basis, gets to know their wants and needs, then makes specific individualized recommendations to each customer. • Recommendation Engine interacts with your customers on a one-to-one real-time basis, automatically learning more about their individual wants, needs and interests. • Integration with major platforms.

24. Epiphany • Clarity - Point and click access to data stored in all databases and ERP Systems. (Executive Dashboard) • Relevance - Analysis of the information available through Clarity • Momentum - Who bought/did what? • Sold with Broadvision • NT Only • No shipping software/no reference customers

25. Rubric Software • TBD

26. Microsoft SiteServer • Elevator Pitch • Engage customers and partners through the creation of cost-effective commerce sites and applications, targeted online advertising and marketing, and personalized promotions. • Transact online with secure and scaleable order capture, management, and routing, integrating more easily into existing systems. • Analyze to understand customer and partner purchase and usage data, and factor in the changes to maximize the return on investment in your commerce site or application. (Netper) • Price

27. Stella Features Customizable Domain- Specific Stencils Component Services Extensible Business Components FinancialServices Admin Console Rules Discovery Activity Tracking Retail Advertisement Targeting Marketer Console MembershipData Agents(e.g. LDAP, Oracle) Extranet TBD 3rd Party& custom stencils Netscape Application Server • Scalability • 7x24 availability • Centralized management Failover Load Balancing App Partitioning... Netscape Directory Server

28. NSCP Advantages • Feature set addresses critical analysis piece • Lower business risk than most competitors • With the exception of Microsoft, our competitors are small, and unprofitable and/or private. • NSCP + Sun? Sales Force/Pro Services • Breadth of product offering • The architecture is supported not only by NSCP WWPS, but by many third party SI's. Third party Pro Services • Netscape brand provides credibility in entering this space

29. Packaging In order to maximize revenue, we should consider selling the product components separately or in a complete bundle. • Components might include: • NSCP "Market Researcher" = Deep Activity Tracking • NSCP "Marketing Programs" = Data Analysis, & business rules generator • NSCP "Lead Generator" = Content Targeting based on customer profiles

30. Pricing • Forrester reports that the average e-commerce site currently cost about $250,000 total to deploy including software, hardware and people. • Vignette StoryServer starts at $25,000/CPU and Broadvision 1:1 Version 4 starts at $80,000/CPU. • By breaking the product into components which should appeal to separate LOB managers, we might be able to charge higher license fees for our distinct pieces, particularly the website data analysis & reporting piece.

31. Next Steps • Complete Customer Validation • Consider implications of new ownership • Complete Feature List

32. Key Issues • Implications of new ownership? • Status of Project JumpStart?