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Enron Mail |
It is becoming increasingly clear that the development of eCommerce will ha=
ve=20 a significant and continuing impact on the conduct of business in a broad= =20 array of industries. Through EnronOnLine, Enron has quickly become a major= =20 catalyst for the transition to the web in the gas and electric industries. = =20 EnronOnLine has been an enormous success since its launch. Since launch, w= e=20 have completed 67,043 transactions on line, with a total dollar value of ov= er=20 $25 billion. EnronOnLine is now the largest eCommerce site in the world. We believe that the competitive success of EnronOnLine is due to one very= =20 specific reason. In addition to providing a web-based platform for=20 transactions, Enron acts as principal to provide direct liquidity to the=20 site. We stand ready at all times, in any market conditions, to buy and se= ll=20 at the posted price. This converts a =01&bulletin board=018 (the more typi= cal=20 eCommerce concept) into a true market. There are very few, if any,=20 competitors that can provide this capability. We are increasingly convinced that this competitive advantage can be=20 dramatically expanded to other products and other geographies. If we are= =20 correct, this could provide an enormous new opportunity for growth for Enro= n. Accordingly, we are initiating a major new effort to capture this=20 opportunity. Effective today we are creating a new business, Enron Net=20 Works, to pursue new market development opportunities in eCommerce across a= =20 broad range of industries. It is likely that this business will ultimately= =20 be our fifth business segment, joining transmission & distribution,=20 wholesale, retail and broadband services. Included in this business will be our entire IT and technology group along= =20 with significant talent and resources in market making and finance. =20 Initially, North America will provide primary direct support for staff=20 services and back office, however, over time we will be requesting support= =20 services from virtually all Enron units to ensure continued growth and=20 success. To facilitate the combining of commercial capabilities with these= =20 new eCommerce platforms, Enron Net Works will work closely with the merchan= t=20 functions of North America, Europe, South America, CALME, Asia and Broadban= d. Enron Net Works will be headed by Greg Whalley, Chief Executive Officer; Mi= ke=20 McConnell, Chief Operating Officer; and Jeff McMahon, Chief Commercial=20 Officer. These individuals will comprise the Office of the Chairman for=20 Enron Net Works and remain on the Executive Committee of Enron Corp. =20 Replacing Greg Whalley as President and Chief Operating Officer of Enron=20 North America is Dave Delainey, who will also join Enron=01,s Executive=20 Committee. Global Technology will remain intact but will now be a part of Enron Net=20 Works. It will maintain all of the same businesses and services as it did = as=20 an Enron global function. Philippe Bibi will remain the Chief Technology= =20 Officer for all of Enron Corp. and continues to be responsible for the=20 development of worldwide technology standards and platforms. EnronOnLine, headed by Louise Kitchen, will also remain intact and will now= =20 be a part of Enron Net Works. The success of EnronOnLine enables us to=20 utilize this site as a model as we explore other markets. In addition, the= =20 following individuals are included in Enron Net Works along with their=20 current eCommerce initiatives: Harry Arora, Public Financial Securities; Ja= y=20 Fitzgerald, New Markets Identification; Bruce Garner, Metals; and Greg Pipe= r,=20 Pulp and Paper. Over the next several weeks we will complete staffing and organizational=20 design and will provide full details on this exciting new business=20 opportunity.
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