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					 Internet Update

2nd Quarter Results 2003

     July 30th 2003
                           Faulkner Consulting
                           First Canadian Place
                           Suite 350
                           Toronto, Ontario, M5X 1C1
                           Tel - 416 816 5190

                                                   Page 1

•   Faulkner Consulting and the Data
•   Background to the Research Approach
•   Exposure Ranking Score (“ERS”)
•   2nd Quarter Commentary
•   ERS - Top 50 US Domains
•   Top 50 Ranking
•   ERS - Top 50 Canadian Domains
•   Yahoo!/Overture Acquisition
•   Music Downloading – Kazaa is King
•   CMM Data Categories
•   Automotive Snapshot – Canada
•   Excerpts from “Behind the Firewall” - Executive Summary
•   On-line banking study: “Behind the Firewall” – How Canadian Banks Stacked Up
•   Canada vs. US – On-line Banking Penetration
•   “Behind the Firewall” – Interface Strategy and Segmentation
•   More on Faulkner Consulting

                                                                                   Page 2
                      Faulkner Consulting and the Data

                 Intelligent Implementation

Miles Faulkner the Principal, has been in the    comScore Networks is a global information
Internet business for seven years – with 20      provider and consultancy to which leading
years of Consulting and Technology               companies turn for the insight they need to
experience.                                      craft successful marketing, sales and trading
As a Partner of Ernst & Young and leader of
                                                 This capability is based on a massive cross-
their Canadian Internet Solutions practice he
                                                 section of more than 1.5 million global Internet
was instrumental in building a number of large
                                                 users who have given comScore explicit
Internet channels for major corporate clients
                                                 permission to confidentially capture their Web-
including CIBC, BMO, ePost, Bell Canada,
                                                 wide browsing, buying and other transaction
GlaxoSmithKline, and Canadian Tire.
                                                 behavior, including offline purchasing. Through
                                                 its patent-pending technology, comScore
In addition to his independent consulting and
                                                 measures what matters across the entire
implementation practice – he is President
                                                 spectrum of surfing and buying behavior.
(Elect) of the Internet Advertising Bureau of

                                                                                                    Page 3
             Background to the Research Approach

•   These are top line numbers from comScore Media Metrix (CMM) – they are unique as
    no other research source provides a panel that measures total traffic and its
    composition in both the US and Canada.
•   Results in this report are derived from a unique calculation that Faulkner Consulting
    employs to rank sites based not only on “reach” (ie. total visitors) but time on-line (ie.
    stickiness). This is referred to as the Exposure Ranking Score (ERS) and is
    discussed in more detail on the following page.
•   The research approach uses a panel that captures actual user activity real time via a
    proxy server (in other words every key stroke of a participant is recorded).
•   The result is an unparalleled opportunity to gauge both aggregate on-line activity as
    well as micro transaction specific behavior.
•   Our data is not attitudinal – it’s a sample (over 250,000 Americans and 15,000
    Canadians) extrapolated into a universe calculation to serve as an estimate of actual
    traffic for a site in any given month.
•   comScore does not guarantee that it will capture every site – rather that sites
    measured are categorized appropriately – please feel free to contact us with any
    queries as to how your site is performing overall and that it is correctly within its
    currently designated category.
•   Unless otherwise stated all results are from June 2003.

                                                                                        Page 4
                     Exposure Ranking Score (“ERS”)

•   The Internet, in many respects, is a reflection of humanity’s interests and activities. Its not
    just where we visit but also what we do when we get there that counts.
•   Of the available measures – “reach” (total unique visitors – not simply browsers –
    individuals) and time on line at the site in question are considered to be the two most
    valuable indicators. Whilst “reach” has played a significant role in Marketing and Advertising
    thinking – total minutes or “exposure” is a better measure for effectiveness in the on-line
•   Exposure Time = Total Minutes. The Exposure Ranking Score (“ERS”) is then derived via
    ranking 1-N based on total exposure time. It should be noted that CMM measures total
    minutes in millions. Many sites do not reach one million minutes a month – even though they
    have traffic – so this requires calculating total visitors x average time on-line.
•   Incorporating time on-line into a ranking is important because it allows better relative
    comparisons. Consider this in Q1 – the fourth largest domain by visitors had
    an average time per visitor of 3.3 minutes compared to Yahoo! with over 250 minutes
    (March 03).
•   A further benefit of this model is that it more accurately identifies the best performers. There
    are lots of ways to bump up traffic but it is real value and a quality experience that causes a
    user to stay and engage with a site. Based on a number of years of observation there is a lot
    of “poor traffic” that masks true activity – ERS is a superior method of performance

                                                                                               Page 5
                         2nd Quarter Commentary
            This last quarter has seen a healthy improvement in business results and M&A activity in
            the on-line sector. Traffic and activity for the sites show healthy gain in a number of
Healthy     categories – one of interest is Automotive reviewed in this report. Included as a reminder
Growth      is a summary of all the categories that can be reported on.
            Q2 has seen a similar performance as Q1 at 161 million unique visitors in North America
            (17 million Canadians). US growth over 12 months has been 11% with 1% growth in the
            last quarter. Canada is virtually unchanged.

            The Yahoo! acquisition of Overture demonstrates the value of size – whilst many have
Google      looked at the revenue Yahoo! was buying, they also acquired 5% of net new unique
is not      visitors as part of their search property listing – a clever feat that will make them the clear
God!        leader in this segment regardless of Google’s invasion of the English language.

            There have been a number of recent reports on music downloading – the comScore data
Kazaa and   underlines the sheer scale of the activity – Kazaa is far and away the market leader. They
false       had 35 million individuals in the US execute the application and 7.8 million in Canada in
hopes for   June. Given that there are a number of applications “waiting in the wings” and that many
the music   of them are launching updates that prevent user identification, the record business is in
Industry    much more serious trouble than most would imagine. Despite the hype around Apple’s
            on-line model it is dwarfed by the current model which is free and operating system
            neutral. The music Industry needs a radically new strategy – something we discuss later
            in this report.

                                                                                                 Page 6
                              2nd Quarter Commentary

              XMOS (Cross Media Optimization Study) research was reviewed in
              June at events in Toronto and Montreal (for more see
     This research showed that Canada lags                                        Convex Curve of
              behind US internet spending on a relative basis ($8B vs $135M)                                   Diminishing Returns
              even though we have a greater penetration of usage including                                              Internet
              bandwidth and time on-line. It appears that most marketing

                                                                                       Branding effect
Internet      departments have undervalued the role of Internet advertising in
Advertising   their marketing mix - either because of old loyalties to traditional
– Its time!   media, as a result of the dot com crash or misconceptions of the
              role of “click throughs” vs. branding awareness objectives.
              The research strongly showed that companies could be increasing
              the effectiveness of their advertising and marketing spend by
                                                                                                            Marketing spend
              reallocating up to 8-10% of their budget to Internet from the typical
              2% today (but importantly not spending in total more). If you’re an
              advertiser its worth rigorously re-evaluating media allocation in this

              In late May, Faulkner Consulting produced “Behind the Firewall’ an extensive study
              of on-line banking activity in Canada. Included in this report are some excerpts of
              this analysis that have not previously been publicly available. Canadians have taken
 Banking in
              to on-line banking – 6.4M in April logged-in “behind the firewall”. This contradicts the
              notion that there are inherent security fears related to conducting on-line
              transactions – rather it’s the value proposition and brand that matters. The study
              also looked closely at the Banks and why they need to work on driving new
              “browsers” and not just account holders to their sites.

                                                                                                                      Page 7
                            ERS - Top 50 US Domains
                                           Q1                                                 Q1
Web Domains: Total   Exposure   Reach   Exposure   Web Domains: Total   Exposure   Reach   Exposure
Audience               Rank     Rank      Rank     Audience               Rank     Rank      Rank
YAHOO.COM                1         1       1       MATCH.COM               26       158
MSN.COM                  2         2       2       AKAMAI.NET              27        11       19
HOTMAIL.COM              3        16       3       CNN.COM                 28        43       15
AOL.COM                  4         3       4       RAPIDBLASTER.COM        29       152
EBAY.COM                 5        10       6       AMAZON.COM              30        18
POGO.COM                 6        64       5       ATT.NET                 31       128
HOTBAR.COM               7        51       8       2O7.NET                 32        13
AIM.COM                  8        23       7       NYTIMES.COM             33       100
CYDOOR.COM               9        17       11      MAPQUEST.COM            34        22
MONEYCENTRAL.COM        10        60       14      GAMEFAQS.COM            35       203
GOOGLE.COM              11         8       13      BLACKPLANET.COM         36       412
NEOPETS.COM             12       364       10      MICROSOFT.COM           37         9
PASSPORT.COM            13         7       16      QUICKEN.COM             38      1046
GO.COM                  14        21       12      WEATHER.COM             39        42
ZONE.COM                15       108               MSNBC.COM               40        36
NETSCAPE.COM            16        44       18      BANKOFAMERICA.COM       41       104
RU4.COM                 17         6               LIVEPERSON.NET          42        25
IWON.COM                18        83               CLIKS.ORG               43        80
QUESTIONMARKET.COM      19         4               SMARTMONEY.COM          44       350
EXCITE.COM              20       199               JUNO.COM                45       187
CLICKSPRING.NET         21       847               EXPEDIA.COM             46        49
LYCOS.COM               22        28               GAMESVILLE.COM          47       316
CARTOONNETWORK.COM      23       169               POPCAP.COM              48       820
EARTHLINK.NET           24        72               REALTOR.COM             49       210
COMPUSERVE.COM          25       217       20      FOXNEWS.COM             50       461

                                                                                           Page 8
                              Top 50 Ranking

•   Not much has changed at the top – only sites ranked from the previous Q1
    analysis have been included ie. 20.
•   For CNN it pays to have a war to report on - they have dropped in terms of
    “reach” and frequency significantly in June vs. March
• is making very steady progress and shows the dominance of
    Microsoft on-line properties
•   This expanded list truly shows the fallacy of “reach” as the primary indicator of
    performance – if brand awareness is your game many of the sites in the top 50
    that have high ERS are worth taking a second look at. Quicken is an amazing
    example of this.
•   Following our Q1 report we received feedback that sites like Akamai should be
    removed from our survey because they provide streaming services. This
    reporting model is neutral. Akamai is still a legitimate service of one sort or
    another if its captured as a domain. its up to the reader to determine how
    relevant it is for their on-line strategy.

                                                                                Page 9
                        ERS Top 50 Canadian Domains
                                          Q1                                                Q1
                    Exposure   Reach   Exposure                       Exposure   Reach   Exposure
Domains               Rank     Rank      Rank     Domains               Rank     Rank      Rank
MSN.COM                 1         1        1      GAY.COM                26       1339
YAHOO.COM               2         3        3      TDCANADATRUST.COM      27        34
HOTMAIL.COM             3         4        2      DESJARDINS.COM         28        35
POGO.COM                4        60        4      MYTELUS.COM            29        97
NEOPETS.COM             5        87        6      ASIANAVENUE.COM        30        451
PASSPORT.COM            6         2        9      BBC.CO.UK              31        106
GOOGLE.CA               7         8       10      CANDYSTAND.COM         32        187
ZONE.COM                8        44               WINDOWSMEDIA.COM       33        12
YAHOO.CA                9        13       14      REAL.COM               34        18
SYMPATICO.CA           10        10       11      MLS.CA                 35        111
ISPYNOW.COM            11       1330              SURFERNETWORK.COM      36        438
MSN.CA                 12         6       16      GEOCITIES.COM          37         9
CLICKSPRING.NET        13        526              MSN.FR                 38        29
EBAY.COM               14        11       15      SHOCKWAVE.COM          39        42
GOOGLE.COM             15         7               WORKOPOLIS.COM         40        73
EBAY.CA                16        23       13      WEBSHOTS.COM           41        58
ROYALBANK.COM          17        24               SHAW.CA                42        61
LAVALIFE.COM           18        39               COMPAGNIE.COM          43        760
LYCOS.FR               19        31       17      NETSCAPE.COM           44        56
GAMEFAQS.COM           20        115              SHOWBIZZ.NET           45        79
PALTALK.COM            21        706              NEWGROUNDS.COM         46        98
RESEAUCONTACT.COM      22        304              CIBC.COM               47        66
MICROSOFT.COM          23         5               EXCITE.COM             48        284
AOL.COM                24        15               FIND-QUICK.COM         49        492
                                                  YAHOO.FR               50        103      20
ICQ.COM                25        53       12

                                                                                          Page 10
                                      Yahoo!/Overture Acquisition

                                                                 The chart on the left indicates the market share of
                                                                 search engines – it should be noted that total unique
              Ask Jeeves     5%                                  visitors to a search engine site is 122M – thus there is
                 7%               Yahoo! Search                  a significant overlap considering there are 164
             AOL Prop                                            properties in this category. To better understand the
              Search                                             value of the Yahoo! acquisition of Overture – an
                                                                 unduplicated view of both sites’ visitors was
                                                                 undertaken. This shows that Yahoo!’s net gain of
             MSN Search           Google Sites
               23%                   24%                         unique visitors will be some 6.5M giving it a projected
                                                                 market share of 53% an 8% lead over its closest
                                                                 competitor Google. Yahoo! has broken the leadership
                                                                 logjam. In addition Yahoo! gains a significant amount
                                                                 of revenue through the deal as a result of Overture’s
                                                                 search engine placement business.

A further review of a potential acquisition of Ask Jeeves shows it to be a less powerful business move because of
significant duplication – Ask Jeeves and MSN together will still fall short of the new Yahoo!/Overture combination. In
Google’s case the duplication is even greater – in addition to which Google’s branding is more distinctive making a
feasible integration more difficult.

                                                                                                               Page 11
                                                Music Downloading – Kazaa is King
Kazaa is a giant in terms of on-line usage. The way to interpret comScore data for music
downloads is to first understand that these are desktop applications. comScore only
measures whether a user loads the application one or more times a month. At this point                                                In June Kazaa had
the data is not as precise for instance as Instant Messaging – nevertheless it is reasonable                                         7.8M Canadian users
to assume that many of these users are active file downloaders. Based on Ipsos-Reid                                                   or 46% of the entire
numbers we know that in March 03 they claim 40M Americans downloaded a music file.                                                   internet population!
The scale of this is incredible when one considers that there were only 33 million CDs sold
in the whole of 2002 for top ten albums in the US!! The following comment from Ipsos-Reid
is indicative of people’s attitudes to the activity – which is clearly a huge problem for the
music industry.
“The recent TEMPO research also reveals that nearly three-quarters (73%) of U.S. downloaders report their
motivation for doing so is to sample music before making a purchase. Further, U.S. downloaders believe their
actions to be okay, with few agreeing that downloading free music off of the Internet is wrong (9%), and only
one-in-five (21%) agreeing that free downloading and peer-to-peer file-sharing hurts artists”.

                                                                                                The size of the market could be larger than portrayed
       '000 unique user loads

                                30,000                                                          here – when you include other applications including
                                20,000                                                  Kazaa
                                                                                                Grokster, Piolet, Blubster and iMesh. These other
                                15,000                                                          applications are small today but have the potential to
                                10,000                                                          grow should Kazaa fall. Morpheus data is not
                                                                                                captured by comScore and a request is in to have this
                                         Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-           application included in the CMM dictionary.
                                          02 02 02 03 03 03 03               03 03

                                                                                                                                            Page 12
                                                 On-Line Music
                   From a demographic perspective Canada and the US are quite similar – a whole
                   generation will grow up with this mindset:

               •   Just under half of all users are less than 24 years old
               •   90% of all users are less than 50 years old.
               •   There are 10% more men than women users.
               •   In Canada, Quebec and Ontario are “neck and neck” in terms of users – despite the
                   fact that Ontario significantly outnumbers Quebec in population terms

                   What Does All This Mean?

                   A recent Jupiter report has re-forecast the size of the “legitimate” on-line music
                   space in terms primarily of $ sales. The forecast suggests that the market will      Two Tiered File Sharing Model
                   grow from $1B today to $3.3B in 2007. This is is just simply too small to pose
                   any threat to the free download services. Putting aside concert and other
                                                                                                        Tier 1
                   revenues what is interesting is that record sales were actually relatively small
                   compared to the scale of the file sharing activity taking place. In other words               Paid – no ads –
If you can’t                                                                                                     quality guaranteed
                   there was massive latent demand unfulfilled by the music industry.
beat them –
                                                                                                                          Up sell
join them!!                                                                                             Tier 2
                   A smart strategy then would be to harness this demand and offer a two tier
                   service – “free” (without quality guarantees) and “paid” (with quality                        Free – Advertising
                                                                                                                 quality at risk
                   guarantees) attempting to woo one tier to the other. The industry could sell
                   concert tickets and advertising to general downloaders, still sell CD’s and sell
                   guaranteed quality music on-line. If the industry can’t beat this phenomenon –
                   why not capture it for all its worth – buy out Kazaa and play in a much larger
                   market opportunity.

                                                                                                                      Page 13
                                CMM Data Categories
                                                         y     y
Corporate Presence     Directories/Resources      Goods/Accessories                 XXX Adult
Services                 Directories              Community                         Technology
  Downloads                                        Women                              News
  e-mail                 Maps                      Family                           Education
  Instant Messengers     Classifieds               Teens                            Government
  Free Web Hosting       Shipping                  Religion                         Travel
  Discussion/Chat      Retail                      Gay/Lesbian                        Information
                         Computer Software
  e-cards                                         Business/Finance                    Transactions
  Incentives                                       Banking                            Hotels/Resorts
                        Computer Hardware
  Coupons                                          Personal Finance                   Car Rental
                        Comparison Shopping
Portals                                            News/Research                    Regional/Local
                        Consumer Electronics
Promotional Servers                                Financial Information/Advice     Personals
Search/Navigation                                  Online Trading                   Auctions
Entertainment                                      Taxes                            Business to Business
  Multimedia                                      Games
  Music                                            Gaming Information
  TV                                               Online Gambling
                        Department Stores
                                                                                Here is a snapshot of all CMM
                        Tickets                                                     categories – traffic is a
  Humor                                           News/Information
                        Sports/Outdoor                                             reflection of interest and
  Movies                                           General News
                        Movies                                                  interest in many cases drives
  Kids                                             Weather
                        Health Care                                                both on-line and off-line
  Radio                                            Politics
                        Consumer Goods                                                 transactions . So
                        Home Furnishings                                      understanding traffic trends is a
                        Food                                                   fast way to understand what is
                                                                                   happening in any sector.

                                                                                                       Page 14
                                 Automotive Snapshot - Canada
                                                                          • 5.8M in the category or 34% of all Internet
                                                   Rate of                • Ebay leads the category with 29M Minutes
                          Property    Reach rank Growth Last                or 35 minutes per user and 824K visitors
                                                  12 months               • Largest site by Visitors is MSN Autos but
   1       eBay Motors                    3          36%                    they have only 13% of the minutes of
   2       CANADATRADER.COM               2          26%                    eBay
                                                                          • 99 sites in the category – top 10 sites
   3       AUTOTRADER.CA                  6          12%
                                                                            account of 70% of all minutes/exposure
   4       Toyota                        12
   5       DEALERCONNECTION.COM          37         197%
   6       General Motors                 4          30%       This snapshot of the Canadian on-line automarket gives
   7       CarDomain Network             14          81%       a quick sense of the key players. The largest site in
   8       Daimler Chrysler              11          12%       terms of “reach” - MSN Autos - has approximately 1M
   9       Honda                         10          24%       visitors but does not compare well based on its ERS.
   10      MSN Autos                      1          29%       Growth in traffic for all properties is excellent and shows
   11      MSN Autos - Canada             7          41%       that users are more than ever turning to the web to
   12      HEBDO.NET                      8          45%       search for a vehicle.
   13      Hyundai Motors Inc.           20          57% is a clever and simple portal from
   14      Ford Motor Company             9          11%       Ford that acts as a gateway to all their dealer sites
   15      AUTO123.COM                   18         124%       across all their vehicle families (ie Volvo – Aston Martin
   16      Canoe English AutoNet         16          33%       and the others). Toyota had not been tracked until the
   17      BMW                           17          62%       last two months so there is little history – but has an
   18      Nissan                        21          -5%       impressive “ERS” considering its lower reach ranking.
   19      Yahoo! Autos                  13          97%       The only pure French Canadian site has
   20      Volkswagen                    26          19%       taken a significant loss in total traffic recently – which
   21      OCCASION.CA                   28         -50%
                                                               should be cause for concern for that entity.

                                                                                                                Page 15
                      Excerpts from “Behind the Firewall”
                            On-line banking Study       This report is for sale! Please
    The total number of Canadian internet banking transactions is approaching and will probably exceed the total
    volume of ABM transactions well within two years. This will make internet banking arguably the preeminent
    banking channel for overall usage. Banks failing to appreciate the scale of this trend and invest
    commensurately in the on-line channel will therefore fall behind. For 6.4 Million Canadians – “Behind the
    Firewall” is the Branch.

     Banks fall equally into two categories of on-line interface strategy – “complex portal” vs. “clean and simple”.
     There is no winning formula although many banks in a number of cases have very basic “Behind the Firewall”
     content. The smaller faster growing Banks on-line have opted for “clean and simple” partly in their own minds
     as a point of differentiation.

     Banks have succeeded in converting account holders to bank on-line but not in attracting significant net new
     browsers. Banking customers do not spend very long Behind the Firewall according to these results and so
     banks have not yet succeeded in driving the majority of their content to a majority of their visitors. The
     challenge for managers is that the internet channel is like the Swiss Army knife of Business* – operating in so
     many different ways. Different strategies are needed for each major facet of a Bank’s on-line presence.

      To improve “Behind the Firewall” performance, applications like bill presentment are a huge opportunity to
      provide meaningful content and functionality whilst providing billers with a large messaging/advertising
      opportunity. It is not clear how consistently all the banks as well as billers are “pushing” this or making their
      account holders/customers aware of the benefits.

                                                                                                                Page 16
                     “Behind the Firewall” – How Canadian Banks
                                  Stacked Up
The total number of individuals who are
                                                                                 % Share
considered to be on-line bankers in Canada is
estimated at 6.39M Canadians. This number
includes an estimates for Desjardins, NBC and PC         35%
Financial– these Banks are not yet included in the       30%
actual detailed research of on-line activity.            25%
On-line banking numbers grew by 13.2% in the six                                                             % Share
month period of this study. Given the relatively
high % of penetration of banking on-line this            10%
number is expected to flatten out.                        5%
As can be seen based on log-ins – there are three

distinct segments – the upper two RBC Financial



                                                                       es otia

                                                                      Fi NC





                                                                    PC B
and TD – the mid tier on-line Banks and the




smallest grouping with less than 1M visitors             Fi


NBC/PC Financial and ING.

Canadians that bank overseas or in the US have
                                                              Desjardins, BNC and PC Financial are estimates based on
not been counted in this analysis and would be
                                                              their total traffic numbers during the period.
considered likely to be duplicated here in any

                                                                                                        Page 17
         Canada vs US – On-line Banking Penetration
           US       (281M total population in
                    US or 51%)



                                 Canada has 16% of US Banking                17,000
                                 visitors – but close to 50% of all
                                 Canadian Internet visitors – compared
                                 to the US with 33% of all US visitors.

47,800                33%
                                                                     8,000            48%

          ‘000                            Primarily                           ‘000

                                                                                        Page 18
    “Behind the Firewall” – Interface Strategy and
Based on observation and traffic patterns it is apparent that broadly banks have either opted for complex
looking portal home pages (similar to larger portal models) or cleaner simpler interfaces. This strategy
should be looked at in the context of traffic results and also the effect of the transition between secure and
non-secure sections of the site – some sites have a highly rich starting point that tapers to minimal content
Behind the Firewall.

  Large               RBC Financial              TD Canada Trust                There is a remarkably even split
                                                                                between the Banks as to how they
                                                                                choose to greet visitors…the
                                                                                similarity in total traffic makes the
  Mid Tier           CIBC       Desjardins         BMO         Scotia           winners in this respect a tough call.
                                                                                The smaller faster growing banks
                                                                                have opted for the clean and simple
                                                                                strategy. Faulkner Consulting’s
  Small                     BNC                                                 own perspective is that rather than
                                                   ING      PC Financial
                                                                                corporate home pages being
                                                                                content rich – consumer vs.
                                                                                business specific sections should
                                                                                be rich in content.
                      Content Rich &                Clean and Simple

                            A                              B

                                                                                                      Page 19
More on Faulkner Consulting

                              Page 20
                            Consulting Client List

•   Aimfunds                          •   Maple Leaf Foods
•   Alberta Healthcare Network        •   Morguard Reit
•   AT&T (US)                         •   Norweb (UK)
•   Bell Canada                       •   Prudential Assurance (UK)
•   Biotech Ontario                   •   Purolator
•   Canadian Tire                     •   SAS
•   CIBC                              •   Short Brothers International (N.Ireland)
•   Cinergy (US)                      •   SITA (France)
•   Citibank (US)                     •   Sun Microsystems
•   ePost                             •   Sunoco
•   Exxon (Belgium - Europe)          •
•   GlaxoSmithKline                   •   Toronto Hydro
•   IAB Canada                        •   Toronto Star
•   Lombard Business Finance (UK)     •   Walsh International and Walsh Canada (UK –
                                          Japan) [now part of IMS – D&B]

                                                                         Page 21
Faulkner Consulting – Philosophy & Value Proposition

In the building business its common practice to engage an architect and
even a trusted general contractor to make sure that the structure is well
specified – is what the client wants and that the right materials and work
is performed. Have you ever seen a company decide to commission a
building and talk to the people who lay the foundations or the dry wall
In general many I.T. and Internet solutions suffer from a lack of
independence between the suppliers of resources and tools and what are
really the right answers – in some respects this is a “solution gap”. Why
let the builder tell you what they want to sell you to build? This is like
letting the fox in the henhouse!
To bridge this divide a new type of consulting model is required where
there is no “bench” or software or technology, rather a mandate to use
whatever technologies and resources are required whether it’s the
client’s own people, a software vendor’s or contract programmers. This
yields a better solution but also can reduce the cost of solution
development and implementation by up to 70%.

                                                                             Page 22
                                         Solution Architecture

                                • Fees should be based
                                on value and complexity

Opportunity/                               Solution Architect                   Best of Breed
         •Situation analysis
         •Solution Identification, analysis – business case assistance (as
         •Scope Definition/Requirements
         •Solution specification and end state architectures
                                                                             A Market Full of
         (business/process/technical                                         Talent – including
         •Team selection                                                     your own
         •Program/Project Plan validation and agreement
         •QA – Milestone monitoring
         •Performance Review

                                                                                                  Page 23

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