Smarter commerce overview

IBM Smarter Commerce
Redefining commerce in the age of the ‘chief executive customer’

© 2013 IBM Corporation

Mobile and social are reshaping business

55% 34% 50%
of smartphone of smartphone increase in
users compare users have scanned online sales via
prices in stores a QR Code, 27% mobile devices
have read online over 2011
reviews

63% 92% 84%
of online adults are of US adults who
less likely to buy via of consumers say have conducted a
other channels if they trust earned transaction online or
they experienced a media, such as through a mobile
problem on their word-of-mouth and device report
mobile phones recommendations experiencing a
problem

2 © 2013 IBM Corporation
Sources: IBM, Forrester, Tealeaf and Emphathica Reports

Customer expectations are soaring

They want:
you to know them as an individual
simple, yet feature-rich self-service
capabilities
a seamless and integrated experience
relevant, timely promotions
a flawless post-purchase experience


Every interaction is important

Advocacy Awareness

Engagement

Involvement
Transacting
Interacting
Usage


Leaders are taking an integrated approach to
commerce

Puts the Anticipates Applies deep Optimizes Extends core
customer at and deliver insights to procurement systems to
the center across mobile take action based on synchronize
of your and social in real time demand your value chain
commerce
processes


Delivering superior customer experiences that are
highly informed and orchestrated

A supply chain Marketing targeted to
prepared every customer
for the unpredictable personally

Service that knows Selling that’s there for
what customers want your customers,
before they do wherever they are


Successful companies embracing this strategy

Improved Delivered
procurement and personalized
defined new rules interactions which
with eAuctions led to new business

Fixed customer Leveraged social
experience problems programs to drive
and increased sales and ongoing
conversions engagement


Smarter Commerce delivers exceptional customer
experiences

Buy Market
Adaptive Targeted and
procurement Buy
Buy Market
Market personalized
and optimized marketing
supply chain across all
channels

Service Sell
Anticipate Seamless
behavior and Service
Service Sell
Sell cross-channel
deliver flawless customer
customer experience
service


IBM’s integrated portfolio for Smarter Commerce

Smarter Commerce Services
Core Business Solutions and Processes
BUY MARKET SELL SERVICE
Adaptive Targeted and Seamless Anticipate
procurement and personalized cross-channel behavior and
optimized supply marketing across all customer deliver flawless
chain channels experience customer service

Business Analytics

IBM SmartCloud Solutions, Computing and Infrastructure


Smarter Commerce integrates and enhances the
commerce cycle
Visibility and order status All customer
adapt procurement interactions
and logistics are a market opportunity

Buy Market

Service Sell

Insight from all channels Promotions, guided selling
through analytics and precision marketing
improves loyalty drive sales

Smarter Commerce puts mobile and social
everywhere
Buy Market Sell Service

Empowering Reinventing
employees and partners the way companies
interact with customers

• Social sentiment analysis • Insight driven promotions
• Inventory visibility • Location based services
• Mobile platform analysis • Social sharing
• Clienteling, customer • Endless aisle
personalization • Mobile shopping services
• Purchase decision support


And leverages Cloud and SaaS Solutions to deliver
exceptional customer, partner experiences

14,000 300,000+
pre-connected gl obal trading enti ties
transportati on ca rriers connected

B2B Cloud Servi ces Over
expanding into

6+ million 34 countries 180 million TMS tra nsactions annually
45+
Saa S applica tions
trade deals negotia ted
4.5 million
by 1,500 companies
transa ctions exchanged
through B2B cloud dail y
23,000
brands supported by digi tal

>60,000 users Nea rl y
ma rketing optimi za tion

of digi tal ma rketing opti miza tion sending
60 million emails each month $4 billion
In freight spend managed annuall y

Smarter Commerce delivers results

Places the chief Maximizes
insights Embraces social
executive customer at
and mobile
the center

Synchronizes the
Personalizes entire value chain
marketing

Reduces costs and drives Delivers seamless
efficiencies experiences


Insert customer examples provided in back up pages


Smarter Commerce requires focus on three
dimensions
Customer
Engagement
“Multi-channel” has
evolved to “all
channels, all the time”

Customer Insight Value Chain
and Intelligence Optimization

Advocacy based on Integration and
synchronization
trust is the new
to meet new value
“loyalty” delivery requirements

Customer Experience

The proof: industry analysts named IBM the leader

Ecommerce Seven major analyst Social Analytics and Strategic sourcing and
solutions and reports on Intelligence procurement services
commerce consulting marketing solutions

Market Star Mobile Enterprise social Global Digital
Performer for collaboration software and Marketing Agencies
procurement software horizontal portals
outsourcing


The proof: Transform your partner and supplier
relationships

$57 1.4 300,000
entities on the IBM cloud-based
business-to-business (B2B)
network, trading in real time
billion billion
in annual documents
procurement exchanged
spend managed electronically on
on behalf of the IBM cloud-
our clients based B2B network

11
average savings of
total sourced
spending
experienced by
percent companies


The proof: Transform your customer experiences

2,500 customers worldwide
that depend on our

$34
marketing solutions

billion $100 14
in sales of the billion million
Internet Retailer Top
500 powered by IBM of commerce combinations of
from our retail products and
WebSphere® clients analyzed in services that are
Commerce software our benchmark configured to order
report for one company


Begin with these questions for your Smarter
Commerce journey
Does your Are you
business model leveraging
adapt to capitalize customer insight
on new market to reshape your
opportunities? business?

Can your
operations Could your supply
anticipate and chain interrupt
adjust dynamically service to your
to market Do you deliver customers?
conditions? exceptional customer
experience across all
touch points?

Partner with IBM for Smarter Commerce

Industry leading portfolio for Buy, Market, Sell and Service
Flexible, modular, open, integrated, optimized
Real-time social, mobile and analytics capabilities
integrated throughout the solutions
Dedicated commerce consulting and systems integration
practice with over a thousand experts
Innovation through IBM Research and patent leadership
for 20 years
Over 2,000 of the world’s top brands rely on IBM to
improve their business insight and execution


Back up

Customer examples demonstrating what leaders are doing today
Sparkler Customer Case Studies – color coded for Buy, Market, Sell and Service
Questions To Ask
Analyst Rankings Details
Smarter Commerce Integrated Portfolio Details


The opportunity:
Improve procurement processes and saved more than US$1 billion

Leaders improve
procurement processes and
save more than $1 billion in
2011. The bottom
line…improved procurement
was cited as contributing to
doubling first-half operating
profits.
Anglo American
did.

The opportunity:
Improve procurement and define new rules with eAuctions

Leaders execute over
30,000 eAuctions a year
and drive bottom line
efficiencies and results in
procurement for $4.2B in
spend.

ABInBev did.


The opportunity:
Transform procurement to improve savings, vendor quality

Leaders improve
performance by providing
global visibility into their
contracts, standardize terms
and rationalize vendors to
ensure efficient spend and
improved vendor quality.

ConocoPhillips
did.

The opportunity:
Provide over 7000 ships with complete supply chain visibility

Leaders streamline and
secure information
exchange, reduce time to
onboard partners and
provide visibility into the
supply chain.

Jurong Port did.


The opportunity:
Improve delivery performance 15% and drive perfect orders

Leaders drive a superior
customer experience and a
world class supply chain
enabled by shared visibility
with partners and virtual
warehouse capabilities to
‘sell on the water’.

Lenovo did.


The opportunity:
Reduce partner integration in 5-8 days from 4-8 weeks

Leaders extend core
processes to their business
partners community to drive
growth and meet service
agreements.

Russell Investment
Group did.

The opportunity:
Increase open rates up to 260% and click through rates up to 122%

Leaders analyze, integrate
and score offerings and
engage with their
customers in relevant ways
with new offerings and
campaigns for Face to Face
and TV.

AMA did.


The opportunity:
Leverage insights to drive a personalized and relevant experience

Leaders use insights
tracked via loyalty cards
and leverage it to drive
offers to moms and parent
clubs relevant to them. And
for mobile they use insights
deliver exactly what
customers want.

Boots did.


The opportunity:
Increase trade promotions results and drive better partnerships

Leaders improve trade
promotion economics
significantly, retailers tell
them “You are changing the
game as a Partner…bringing
growth ideas never heard or
seen.”

ConAgra Foods
did.
*DemandT ec is an IBM company

The opportunity:
Deliver real-time offers and increase marketing ROI 600%

Leaders have a 360 degree
view of all customer
information and align it to
marketing to deliver more
relevant offers.

First Tennessee
did.

The opportunity:
Increase incremental customer retention by 4%

Leaders boost incremental
customer retention by 4%
and reduce acquisition
costs by 60% in campaigns
through 2,200 event based
campaigns per year, using
400+ different triggers.

HDFC did.


The opportunity:
Increase revenues generated by direct marketing by 30 percent

Leaders grow revenue
through personalized
marketing to 60 million
customers and realize gains
in efficiency and ability to
personalize interactions
with customers.

Telefonica Vivo
did.

The opportunity:
Increase precision marketing with unique promotions up 600%

Leaders use behavioral
intelligence in real time to
drive a unique customer
experience with
personalized promotions.

Li Ning Sports
Goods did.

The opportunity:
Have personal marketing that drives conversions to sales up by 1700%

Leaders deliver targeted,
relevant e-mail and
boost revenue by 2500%
and drive conversions to
sales up by 1700%.

L’OCCITANE EN
PROVENCE did.

The opportunity:
Double and triple digit increase in revenue and click through rates

Leaders eliminate generic
messaging in favor of
targeted cross-channel
communications tailored
to the customer interests
and preferences

Motorola
Mobility did.

The opportunity:
Deliver a personalized experience and increase sales per visitor 41%

Leaders leverage visitor
behavior to drive a
personal experience to
increase sales per visitor
41% and coupon
redemptions up 200%.

PETCO did.


The opportunity:
Improve price image and pricing operations over the entire lifecycle

Leaders grow key
categories by incorporating
shopper-focused pricing
and markdown strategies
that are localized to each
individual store.

Radio Shack did.


The opportunity:
Reduce customer churn and boost ROI by 376%

Leaders identify
customers with a high
likelihood to churn and
proactively contact them,
improving customer
retention and profits.

XO Communications
did.

The opportunity:
Deliver a seamless customer experience across all channels

Leaders embrace a
multichannel strategy and
enable customers to shop,
buy and pickup where they
want and ensure seamless
delivery and integration
from their suppliers to
their customers.

Argos did.


The opportunity:
Improve sales by sharing global inventory visibility with customers

Leaders drive a seamless,
flexible supply chain to
meet the needs of their
customer by sharing
inventory visibility to
ensure they can sell or
have what they need.

Husqvarna did.


The opportunity:
Engage customers in a collaborative retail experience

Leaders turn a typical
retail business into a
close-knit community
through social networking
capabilities across its
retail channels.

Moosejaw
Mountaineering
did.

The opportunity:
Deliver a strong B2B storefront processing 15K orders a month

Leaders offers B2B storefronts
processing over 15K orders a
month for their owned and
operated outlets seamlessly
integrated with their back end
systems for pricing, orders,
catalogues and more.

Office Brands did.


The opportunity:
Leverage social programs to drive sales and ongoing engagement

Leaders design social
programs so their
customers earn more as
they shop and as they
share, with up to 2.5% in
cash rewards.

SHOP.CA did.


The opportunity:
Offer a personalized shopping experience across all channels

Leaders give customers
access to a portal tailored
just for them, ensuring
they can do business with
you reliably and quickly.

Staples did.


The opportunity:
Enhance the customer experience and grow revenue to $1B 2011

Leaders establish a
platform for growth for
eCommerce and enhance
the overall shopping
experience to drive growth.

Xiu.com did.


The opportunity:
Provide new services and secure integration with trading partners

Leaders introduce new
customer services like
opening an account at the
ATM or ordering movie
tickets in advance.

Taishin Bank did.


The opportunity:
Manage high volume while reducing processing time by 50%

Leaders streamline
processing by automating
the data entry process of
more 8,000+ subscription
orders and marketing
response cards arriving daily.

Dow Jones did.


The opportunity:
Improve customer experience and drive $1M profit per month

Leaders truly understand
their customer experience
and find the problem areas
and fix them. Taking out a
single field from checkout,
they were able to realize
$1M in profits a month.

Expedia did.


The opportunity:
Automate billing and increase revenues by $870,000 annually

Leaders accurately account
for all customer services and
transactions, and eliminate
manual billing processes to
uncover additional sources
of revenue.

J.B. Hunt did.


The opportunity:
Improve conversion rates by 40% and reduced site defects by 82%

Leaders diagnose and fix
problems that cause failed
customer experiences.
The results were improved
conversion rates by 40
percent, and reduced site
defects by 82 percent.

KwikFit did.

Tealeaf is an IBM Comp any.

The opportunity:
Increase efficiency and decrease economic resources 52%

Leaders limit risks by
compensating trading
operations in real time,
reducing the liquidity needs
of trading organizations to
complete operations.

S.D.Indeval did.


Begin by assessing your ability to use customer insight effectively

Can you measure How personalized
and act upon and consistent is
consumer sentiment the experience
captured through you offer
social media? customers?

Do you have the Are you able to
skills and tools to make adjustments
generate to your business
actionable based on
customer insights? Can you use predictive customer insight?
capabilities to drive
campaigns and micro-
targeting?

Make sure customers and partner engagement is a priority

Is your brand Can you deliver a
experience personalized
consistent across experience to your
all channels? customers?

Do you have the
Are your
ability to sell customers moving
complex to new channels
configurable
like social networks
products and Can you deliver the and mobile?
services? perfect order?


Ensure collaboration is seamless with partners and suppliers

Do you know the Can your
cost of doing customer and
business with suppliers see into
trading partners your supply
manually? chain?

Do you have too Can you reduce
much risk and stock-outs, improve
exposure with your customer satisfaction
supply base and and still make your
Can you expand your
your contracts? margins?
merchandise offerings
without expanding
inventory?

Market validation and leadership
IBM Emptoris: Leader IBM Unica: Leader
Gartner Magic Quadrant: Telecom Gartner Magic Quadrant: Integrated
Expense Management, Q2 2012 Marketing Mgmt, Q4 2012
Gartner Magic Quadrant: Strategic Gartner Magic Quadrant: Multi-Channel
Sourcing, Q1 2010 Campaign Mgmt, Q1 2012
Forrester Wave™: Services Gartner Magic Quadrant: Marketing Resource
Procurement, Q3 2010 Mgmt, Q1 2012
Forrester Wave™: eSourcing, Q1 2009 Buy Market The Forrester Wave: Cross-Channel Campaign
IBM Emptoris: Leader Mgmt, Q1 2012
Forrester Wave™: Contract Life-Cycle IBM: Leader
Management, Q2 2011 The Forrester Wave: Web Analytics, Q4 2011
IBM: Leader
Digital Marketing Agencies, Gartner Magic
Quadrant, Q4 2012
Service Sell

IBM: Leader IBM: Leader
Gartner Magic Quadrant: Worldwide Gartner Magic Quadrant: E-Commerce, Q4
Customer Management Contact 2011
Center BPO, Q4 2011 IBM: Leader
IBM: Leader The Forrester Wave™: B2C eCommerce
Forrester Wave: Dynamic Case Suites, Q3 2012
Management, Q1 2011 IBM: Leader IBM: Leader
IBM: Leader Magic Quadrant: Business Intelligence Forrester Wave™: Global Commerce Service
Forrester Wave: Enterprise Feedback Platforms, Q1 2012 Providers, Q1 2012
Management, Q3 2011 IBM: Market Strength Leader
IBM Leader: Gartner Magic Quadrant: Hurwitz Predictive Analytics Victory Index,
Electronic Content Management, Q3 2011
Q4 2012 IBM SPSS: Leader
Hypatia's Gal axy for Social Analytics and
Intelligence, 2012

The proof: Analyst perspective in 2011 and 2012

IBM named a IBM named a IBM named a IBM named a leader
leader in leader in Business leader in Global in Customer
Horizontal Portals Consulting Services Commerce Management
Consulting Contract Center BPO



BUY MARKET SELL SERVICE
Adaptive Targeted and Seamless Anticipate
procurement and personalized cross-channel behavior and
optimized supply marketing across customer deliver flawless
chain all channels experience customer service

Business Analytics


We have invested in leading capabilities to transform your business

LEADER in procurement LEADER in merchandising

Buy Market • Sell

LEADER in B2B and Order Buy Market LEADER in campaign
Management Buy Market management

Service Sell
Buy • Sell Service Sell Market

LEADER in customer
experience management LEADER in digital marketing

Market • Sell • Service Market


Strategy | IBM Interactive | Systems Integration | Smarter Analytics | Managed Services | Application Management

Supplier Integration & Customer Experience Cross-channel Selling Delivery, Service, &
Collaboration Management Order Management & Support
Supply Chain Management Cross-channel Marketing Fulfillment Customer Self-Service
Accounts Payable Optimization Customer Integration & Case Management
Source to Contract Price, Promotion & Product Collaboration
Supplier Management Risk Mix Optimization Store Solutions
and Compliance Marketing Performance Payments & Settlements
Optimization
Digital Marketing
Optimization
Customer Analytics
Marketing Performance
Analytics

Business Analytics

“BUY” processes and capabilities

Strategic supply chain management
Supplier B2B integration

Buy Supplier collaboration
Supplier Integration and Supplier performance analytics and compliance
Management
Supply Chain Management Supply chain visibility
Accounts Payable
Source to Contract Inventory management and optimization
Supplier Management Risk and
Compliance
Automated accounts payable
Warehouse management
Transportation management


Smarter Commerce Market

Personalized and targeted marketing across channels

IBM core process capabilities:
Smarter Commerce Market Cross-channel Marketing Optimization
enables you to have deep Customer Experience Management
awareness with a 360- Digital Marketing Optimization
degree insight about your Marketing Performance Optimization
customers, and drive Price, Promotion and Product Mix Optimization
targeted marketing Customer Analytics
Marketing Performance Analytics
programs that improve
conversions and ROI.


“Market” processes and capabilities

Identify opportunities and predict marketing
outcomes
Decide on the best message or offer to extend,
Market in any channel
Cross-Channel Ma rketing
Opti miza tion Deliver messages and retain a memory of
Cus tomer Experience Management
Di gi tal Ma rketing Optimi za tion
interactions
Ma rketing Performance Determine optimum pricing, facilitate cross
Opti miza tion
Pri ce, Promotion and Product Mi x channel planning, design, execution and
Opti miza tion measurement
Cus tomer Analyti cs
Ma rketing Performance Anal yti cs Advanced analytics to continually improve
marketing


Smarter Commerce Sell

Seamless cross-channel customer experience

Smarter Commerce Sell
delivers seamless cross-
Cross-Channel Selling
channel customer
Order Management and Fulfillment
experience and ensures Customer Integration and Collaboration
flexibility to enable secure, Store Solutions
reliable delivery and real- Payments and Settlements
time insight for next
generation commerce.


“SELL” processes and capabilities

Provide customers and partners with a
seamless end-to-end cross-channel multi-tier
Sell and highly personalized buying experience
Cross-channel Selling
Order Management and Support any level of complexity and sales
Fulfillment model
Customer Integration and
Collaboration Orchestrate orders across extended value
Store Solutions
chains
Payments and Settlements
Advanced analytics to continually improve sales
operations


Smarter Commerce Service

Anticipate behavior and deliver flawless customer service

Smarter Commerce Service
provides relevant, value- Delivery, Service and Support
Customer Self Service
added services that nurture
Case Management
customer relationships to
improve revenue and
customer loyalty while
reducing care costs.


“Service” processes and capabilities

Deliver product or services via preferred channel
Offering carefully targeted, value added services
Service during support interactions
Provide support/service personnel and
Delivery, Service, & Support customers with current, accurate and complete
Customer Self-Service information regarding products, services,
Case Management promotions, policies and procedures
Facilitate first call resolution
Advanced analytics to continually improve
delivery, service and support efficiently


Business Analytics

Improve customer experiences by embedding actionable insights
into operational processes

IBM core analytics capabilities:

IBM Business Analytics help Customer Analytics
you understand the key Operational Analytics
“moments of truth” that Threat and Fraud Analytics
can have dramatic impact Spend Analytics
on your business and Web Analytics
Social Media Analytics
customer experience.
Marketing Performance Analytics


Smarter commerce overview

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