1. Global B2B eCommerce Adoption: The Business Perspective Presentation to The Information Technologies Group at the Center for International Development Harvard University by Jeff Conklin Founder and CEO May 2, 2001

4. Complexity of Contract eCommerce Logistics Sell-side Requirements Sales Legal Engineering Manufacturing Management Finance Info Services Buy-side Requirements Procurement Finance Logistics Manufacturing Engineering Management Legal Info Services Business Rules Inter-enterprise Data Valid Commerce and Non-Repudiation International Trade Practices and System Requirements Inter-enterprise Requirements Banking Contract negotiations and transactions Financing Escrow Factoring Schedule, Delivery Terms, Returns Form, Fit, Function, Quality Credit, Payment Terms Ts & Cs Warranties, Schedule, Quality Service Level Agreements Contract Document Contract Document

5. Complexity of Procurement Cycle Key Activities Forecasting Operations/ production planning New product design Supplier identification RFI, RFP, RFQ Vendor short list Vendor selection Terms negotiation (e.g., BOM, payment, delivery, T&Cs) Vendor selection Agreement renewal Respond to changes Journaling / archiving Purchasing / ordering Order management Physical delivery / Materials management Payment processing Financial settlement Reconciliation Fulfillment Negotiation Sourcing (RFx) Operations Planning Vendor Evaluation and Feedback

6. Market Magnitude Total - $20 Trillion Contract-Based B2B - $13 Trillion Contract-based goods commerce represents approximately $13 trillion of business in the US, and $52 trillion globally - US Goods Commerce ($ Trillions) - Consumer B2B Spot Market ($3) B2B Under Contract ($13) Indirect Goods ($2) Direct Goods ($11) Sources: CAPS Procurement Survey Ratios, U.S. Department of Commerce data and Morgan Stanley analysis

7. Company Spend Analysis Sources: CAPS Procurement Survey Ratios, Accenture and Ozro Analysis Communications & Hi Tech Industry Spending Benchmarks 0% 25% 50% 75% 100% Procurement Spend Contract-Based Procurement Percent of Company Revenues 67% Contract- Based 18% Spot Buying 85% 59% Direct 67% 8% Indirect

11. Significant Savings

13. International Timing, by Region

14. Worldwide eCommerce Growth $ Billions Sources: Forrester Research, Inc.