IBM Smarter Commerce 2011
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IBM has positioned itself as the leading provider of smarter commerce solutions through strategic acquisitions and investments totaling $2.5 billion since 2010. The acquisitions have expanded IBM's commerce-related consulting services, software, and analytics capabilities. IBM's smarter commerce approach aims to optimize customers' buying, marketing, selling, and service processes by putting the customer at the center. This is designed to increase customer loyalty, revenue/margin growth, and business agility for companies.
IBM Smarter Commerce 2011
- 1. March, 2011 Smarter Commerce Redefining the value chain in the age of the customer © 2011 IBM Corporation
- 2. 2 Today’s News: IBM Smarter Commerce Recent Acquisitions Position IBM as the Only Solutions Provider Integrating All Elements of the Commerce Lifecycle Spanning Buying, Marketing, Selling and Service IBM Expands Global Business Services With New Smarter Commerce Services, Software Adding a new services practice with more than a Smarter Commerce thousand dedicated experts $2.5 billion in commerce-related acquisitions & new Consulting & Services software investments since 2010 Software Integrated & globalized product offerings – New Cloud analytics including an IBM Coremetrics Systems & Technology offering to measure and optimize social presence in such social media properties such as Facebook and Research Twitter. – IBM will also deliver software solutions that allow Smarter Commerce is a unique approach that companies to deliver relevant and consistent messages increases the value companies generate for across all sales and marketing channels - from the web their customers, partners and shareholders in a to email to stores to call centers. rapidly changing digital world. It is designed to A Smarter Commerce University dedicated to on- help companies better integrate and more ramping business partners and new hires effectively manage their value chain, including buy, market, sell, and service processes to put Communicating overall smarter commerce trend the customer at the center of decisions and story and IT solution need in the market actions leading to greater customer loyalty, © 2011 IBM Corporation revenue / margin growth and agility.
- 3. 3 We have entered the age of the empowered customer Customers now have Social networking Customer This is changing the unlimited access to and mobile expectations of entire way products information and can commerce have service, price and are sourced, instantly share it with dramatically changed delivery is soaring. manufactured and the world the dynamic between distributed—and buyer and seller. making business more complex than ever. 95 million 75% $93 billion Number of tweets sent via Percentage of people Amount in sales missed Twitter each day who believe companies due to out of stock don’t tell the truth in inventory advertisements © 2011 IBM Corporation
- 4. 4 These disruptive forces ripple from the customer through the enterprise and across entire industries Individuals “"The consumer is using new channels to The connected consumer perceive value, and associated pricing The networked workforce implications.“ The empowered citizen Consumer Products CEO, United States Enterprises "Profits will shift away from analog Evolved business models distribution to digital distribution; we Optimized digital operations will see increased margins in digital Connected enterprise distribution and increased international distribution.“ Media and Entertainment CEO, United States Industries Value migration “Disintermediation of clients by smaller Value chain redefinition niche players (such as mobile players) is Fragmentation cause for concern.“ Financial Markets CEO, Canada Source: IBV Analysis © 2011 IBM Corporation
- 5. 5 Power has shifted to the customer compressing margins Successful companies are transforming their approach to commerce Understanding and anticipating customer An international behavior and needs based on customer transportation insights across all channels company reduced partner integration time. Adapting sourcing and procurement based 95% on customer demand and optimize supplier A leading provider of interactions across extended value chains teaching, learning and research solutions grew direct- to-consumer Marketing, selling and fulfilling the right commerce revenues. product and service at the right price, time 70% and place A US-based national communications service provider Servicing customers flawlessly, predicting boosted ROI by and driving customer loyalty reducing customer churn. 376% © 2011 IBM Corporation
- 6. 6 At IBM, we call the path forward: Smarter Commerce Smarter Commerce is a strategic approach that It maximizes the insight It capitalizes on social and places the customer at the generated through customer mobile commerce. center of your business interactions. operations It synchronizes your entire value chain to deliver consistent and It drives growth by enhancing, predictable outcomes . extending, and redefining the value you provide. Customer It improves collaboration It increases margins by and visibility for your boosting efficiency at every customers & partners. stage of the commerce cycle © 2011 IBM Corporation
- 7. 7 Smarter Commerce focuses on three dimensions centered around the customer Customer Insight Customer Value Strategy In today’s world of In turn, you must re- instant business, you think how your need deep insights, in customers define real-time that you can value, and the turn into immediate changes you must action make to your value chain so you can Customer & Partner deliver exactly what Engagement your customers Customer want - profitably You need an approach that allows you to more effectively Connect, Collaborate, Conduct … increasing the value companies generate Commerce and Create a for their customers and partners in a rapidly differentiated customer changing digital world experience. © 2011 IBM Corporation
- 8. 8 Smarter Commerce can help transform every phase of the commerce cycle Buy Market Drive intelligent, Create adaptive and Strategy Insight personalized and optimized relevant offers extended supply with unified cross- chains based on Buy Market channel marketing customer demand Sourcing, controlling Targeted and and procurement of personalized goods and services marketing across all customer interactions Customer Service Sell Servicing Selling and fulfillment Sell Service customer needs of products and Enable Anticipate across all services across interaction all channels customers and behavior and channels partners to deliver flawless buy any offer customer service from any supplier across all across any channels channel Engagement © 2011 IBM Corporation
- 9. 9 IBM’s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND SERVICES Innovation and business value Market and customer mgmt Operating and Organization Models Innovating and aligning business models to Aligning sales, marketing and operations Designing operations, supply chain and the drive value to the customer to engage with customers organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service • Trading Partner Mgmt • Predictive Analytics/Modeling • B2B / B2C Cross-channel • Delivery & Service • Supplier Management • Behavioral Segmentation commerce Scheduling • Supply Chain Visibility • Cross-channel Campaign Mgmt • Distributed Order Orchestration • Customer Self Service • Logistics Management • Search Optimization, Ad • Fulfillment and Supply Chain Enablement • Inventory Optimization Targeting Optimization • Reverse Logistics • Marketing Resource Mgmt • Mobile Commerce • Case Management • Retail Store Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) focused on agility, integration and automation to drive relevant business outcomes © 2011 IBM Corporation
- 10. 10 Solution Scenario Planning, coordinating & executing marketing campaigns to stimulate commerce demand Manage Marketing across Multiple Interaction Channels – Cross-channel marketing strategy is defined and planned using Unica – Coremetrics is used to track consumer actions, and make relevant recommendations – The e-commerce web site and order capture is provided by WebSphere Commerce – Customer experience with responsive interaction is guaranteed by workload optimized systems Optimize display and search results with Coremetrics AdTarget and Coremetrics Search Marketing messages and campaigns are defined and planned using Unica Campaign Web Mobile Retail Insights from Store social media, Systems third party Store websites, purchase Deliver custom landing pages with targeted history ,etc messages and promotions via WebSphere Generate demand with Unica eMessage Commerce Precision Marketing (email creation, delivery, tracking Capture responses and refine 10 © 2011 IBM Corporation
- 11. 11 Solution Scenario Leveraging supply chain intelligence to shift inventory & execute regional promotions Offer regional product promotions and optimize inventory location – ILOG is used to optimize the logistics network – Network details are deployed into the Sterling Transportation Management System – Sterling Supply Chain Visibility monitors flow of inventory vs. annual norms – WebSphere Commerce leverages this intelligence to issue custom regional promotions Sterling OR Regional promotion to Warm winter in sell Denver inventory faster Denver results is delivered via WebSphere in excess snow Supply Chain Commerce Precision Visibility Marketing blower inventory… …meanwhile, a cold spell in Boston is causing back orders due to lack of Trigger an inventory movement of snow inventory blowers from Denver to Boston lLOG Logistics Network Optimization Capture results for future supply and inventory © 2011 IBM Corporation
- 12. 12 What is unique about IBM’s Smarter Commerce? Comprehensive Integrated Optimizes the Integrated analytics complete commerce Integrated focused lifecycle Suppliers industry solutions Leading software, services and infrastructure Customers IBM Smarter Partners Commerce Outcome Driven Flexible and Open Measureable business Flexible deployment outcomes Influencers Modular offerings and Outcomes tailored to 12 flexible consumption business domains © 2011 IBM Corporation
- 13. 13 IBM Smarter Commerce: Making it Real INVESTMENT Software: $2.5+ billion investment in best of breed buy-market-sell software since 2010 Services: Global Business Services expanding its consulting and solutions capabilities for commerce with a new practice RESEARCH IBM Research Innovation: 3000 researchers , including in the areas of customer insight, financial management, social business and supply chain INNOVATION Business Analytics & Optimization: 14 billion in analytics focused acquisitions. The BAO practice has 8,000+ dedicated business consultants with industry expertise Smarter Computing: Over 25,000 hardware and 25,000 software developers. IBM is investing in Workload Optimized Systems to help companies manage the needs driven by commerce applications EDUCATION Enabling our Ecosystem: An IBM Smarter Commerce University dedicated to on-ramping business partners, new hires and consultants © 2011 IBM Corporation
- 14. 14 What does Smarter Commerce mean to these clients? Staples ING Bank Crocs For Staples, a $24B retailer, For ING Bank, serving over 85M For Crocs, a $700M Smarter Commerce means customers, Smarter Commerce manufacturer, Smarter transforming the customer means transforming their Commerce means transforming experience across all marketing so personalized their fulfillment operations and interaction channels by product offers can be delivered supply chain so internet delivering a personalized across multiple channels in real customer orders are filled with buying experience for over time resulting in €20M increase 100% accuracy through their 10,000 B2C and B2B customers in corporate earnings, 35% network of suppliers at the in 27 countries reduction in marketing costs, lowest cost and shorter cycle times © 2011 IBM Corporation
- 15. 15 © 2011 IBM Corporation
- 16. 16 Integration across best-of-breed products to deliver industry focused solutions VALUE CHAIN STRATEGY AND SERVICES CORE BUSINESS SOLUTIONS Core business processes Buy Market Sell Service Sourcing and procuring goods Selling and fulfillment of products Servicing customer needs across Developing, delivering, and and materials required to measuring relevant and consistent and services across multiple all interaction channels to drive deliver products and services to messages across multiple channels channels to drive sales repeat sales and enhance lifetime meet customer demand to drive demand value of a customer Sterling Commerce Sterling Commerce Sterling Commerce • Cross-Channel Order Capture, Cart • Warehouse Management • Distributed Order Management • Delivery & service Scheduling and Catalog • Transportation Management • Warehouse Management • Reverse Logistics • Customer-centric Shopping Experience • Supply Chain Visibility • B2C/B2B Storefronts • Transportation Management • Sterling Collaboration Coremetrics • Supply Chain Visibility Sterling IBM Case Manager Network/B2B Services • Digital Analytics Collaboration Network/B2B Services • Case Design, Run-time, Analytics Retail Store Solutions • Behavioral Segmentation • Collaboration • Retail POS Solutions • Search Optimization, Ad • Rules & Events • Self-Service Portal/Kiosk Targeting, and Real-time • POS Applications ILOG Supply Chain Website Recommendations • Network Optimization ILOG Supply Chain • Transportation Optimization • Product Optimization Unica • Inventory Optimization Sterling Commerce • Cross-channel • Cross Channel Order Campaign Mgmt Management • Real-time Decisioning, • Configuration Event Detection, and • Pricing Contact Optimization • Multi-vendor catalog • Operations Mgmt • Quoting Advanced analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) PureScale Application Smart Analytics Systems System focused on agility, integration and automation to drive relevant business outcomes BPM Suite © 2011 IBM Corporation
- 17. 17 Solution Scenario A unified, cross-channel shopping experience Provide a consistent view of a consumer’s order across multiple interaction channels – Coremetrics is used to track consumer actions, and make relevant recommendations – The e-commerce web site and order capture is provided by WebSphere Commerce – Sterling Order Management maintains a consistent view of the consumer’s order – The POS from Retail Store Systems integrates with the entire system Phones the call center or Consumer is shown a engages online to change Visits the store to pickup web ad for a new TV. the order from delivery to the TV, views the order Ad content selected by pickup. Process powered by via the IBM RSS POS Coremetrics. Sterling Order Management Consumer completes the purchase using WebSphere Commerce Unica prompts the POS to recommend an offer on new speakers Decides to extend and local installation the order, from a services … sold! mobile device Capture responses and refine © 2011 IBM Corporation
- 18. 18 Staples enables customers to shop seamlessly across all channels Challenge Support a personalized, customer-centric experience for B2C customers Support multiple B2B customers buying under multiple contracts, with buyers that have differing levels of purchase authority Solution Single IBM commerce platform handles both B2B and B2C 10,000+ buying organizations each see contract- specific pricing and policies Customer Profile Results Staples sells office supplies, technology, furniture and business Automated support for diverse policies, contracts, services to consumers and buyer roles on a single platform businesses in 27 countries around the Over $1Billion (70%) of total B2B sales world. driven through site © 2011 IBM Corporation
- 19. 19 ING Bank coordinating marketing outreach to consumers Challenge Multiple bank brands, driving 60 million pieces of direct mail each year, were merged into one Campaign management process was disconnected, costly and involved too many stakeholders Marketing costs were increasing while response rates were declining Solution Unified cross-channel solution controls marketing via direct mail, email, web, call center and branches No marketing silos: a centralized customer intelligence team has the tools to plan and execute multichannel marketing Customer Profile campaigns Results ING offers banking, investments, life insurance and retirement services to over €20 million increase in corporate earnings attributed to 85 million private, corporate and increased marketing effectiveness institutional clients in more than 40 Annual direct mail costs reduced by 35% countries. Campaign cycle time reduced to maximum of 4 weeks © 2011 IBM Corporation
- 20. 20 Dal-tile delivers perfect order orchestration A sales center could only see what they had Challenge available in could only see what they had available in their A sales center their individual store Existing store individual system was costing them time and money system was costing them time and money due to its Existing due to its inflexibility inflexibility Manage all of the customer needs through a single salesthe customer needs through a single sales Manage all of center center Solution IBM® Sterling Order Management reduced IBM® Sterling Order costs by efficientlyorder fulfillment order fulfillment Management reduced costs by efficiently orchestrating order and service orchestrating order and service fulfillment fulfillment Flexibility for future growth required to meetto meet Flexibility for future growth required changing changing customer demands customer demands Customer Profile Results Dal-tile designs, manufacturers, and Stores can capture and modify orders through a single distributes ceramic, porcelain, glass, metal, system for all delivery methods — including home delivery, and natural stone tile products to the in-store pickup, and plant delivery construction and development, architecture, and do-it-yourself markets. Enables Dal-Tile to keep inventory at a minimum and reduce their inventory costs © 2011 IBM Corporation
- 21. 21 SXC health solutions enables secure information exchange Challenge Due to the amount of information being sent to all aspects of the pharmaceutical supply chain, SXC must have a secure and reliable system for data exchange Solution IBM® Sterling Business Integration Suite Process provides visibility allowing SXC to check all attributes of their files and exchange data securely Customer Profile Results SXC is a key player in the pharmacy Comprehensive integration serving as their supply chain, providing eligibility, hub for inbound and outbound data enrollment, payment, claims and reporting data. Secure and reliable exchange of data © 2011 IBM Corporation