Report

April 1999

• Distribution channel norms are crumbling.

• A new model -- plug & play distribution -- will emerge.
• Plug & play distribution will include channel specialists and distribution assemblers that configure channels to suit buyers.
• Three channel structures -- based on product and purchase complexities -- will define distribution assemblers' roles.

• Resellers must reinvent themselves by transforming into either channel specialists or distribution assemblers.

• Plug & play channels will level the playing field with direct sellers -- forcing many direct sellers to plug in.

• Figure 1.  eCommerce Stresses Traditional Channel Norms
• Figure 2.  Distribution Channels Deconstruct
• Figure 3.  Comparing Plug & Play With Traditional Channels
• Figure 4.  Distribution Assemblers Pull Together Best-Of-Breed Services
• Figure 5.  Distribution Assembler Skill Checklist
• Figure 6.  Three Principles Of Plug & Play Distribution
• Figure 7.  Three Plug & Play Topologies
• Figure 8.  Industry Dynamics Shape Plug & Play Impact

 

• Organizations Interviewed For This Report
• Related Research

• Business processes change for the Net -- adding to the net.
• It's a brave new Internet world!
• Retailers and Cobol programmers face the same fate.
• Are low prices good enough for a virtual intermediary?