eCommerce DAY Guayaquil 2011

1. Industry Solutions Sales
Marcelo Cabane, Director – Latin America
Smarter Commerce
Building a customer-centric business
© 2011 IBM Corporation

2. We have entered the age of the new 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.
"Social networking and the Internet will “Worldwide economic change now “When the business model is
allow us to drive more new ways of occurs simultaneously and innovative, operations and the
interacting with consumers than we instantly.” product will follow automatically.”
have ever had before.“ CEO, Telecom Industry Ronald de Jong, CEO Philips CL,
Consumer Products CEO, United States Germany
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© 2011 IBM Corporation

3. These disruptive forces ripple from the customer through the
enterprise and across whole industries
Business Challenges
Individuals
 The connected consumer • Increased customer expectations
 The networked workforce • Accelerated speed of change
 The empowered citizen • Different ways to engage digitally
Enterprises
 New business models • Redefined customer value
 Optimized digital operations • Managing across digital and physical
• Significant risk, security, compliance
 Connected enterprise
and privacy concerns
Industries • Industry disruption from new
 Value migration competitors
 Value chain redefinition • Value migration creates winners and
 Fragmentation losers
• New types of collaboration
Source: IBV Analysis © 2011 IBM Corporation

4. Power has shifted to the customer compressing margins,
forcing companies to transform their approach to commerce
In this new era, businesses need to:
 Understand and anticipate customer behavior
based on customer insights across all channels
 Adapt sourcing and procuring of goods and
services based on customer demand and optimize
supplier interactions across extended value chains
 Market, sell and fulfill the right product and
service, right price, right time and place
 Service customers flawlessly, predict and drive
customer loyalty
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© 2011 IBM Corporation

5. At IBM, we call it Smarter Commerce
Smarter Commerce is a It capitalizes on the insight
strategic approach that generated through social It gives you increased
places the customer at the and mobile commerce and margins, better
center of your business collaboration to enhance, opportunities and new
operations extend and redefine revenue streams
customer value
It boosts efficiency and
identifies opportunities
at every stage of the
It helps you more
commerce cycle
effectively buy, market,
sell and service
It synchronizes your
entire value chain to
provide better outcomes
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© 2011 IBM Corporation

6. Smarter Commerce can help transform
every phase of the commerce cycle
A retail pet
An international company
transportation increased open
company and click-through
Source I Control I Procure
reduced partner rates to 5x the
integration time Buy Market industry average
by more than with more sales
Sourcing, controlling Targeted and per web visitor by
95% and procuring of goods personalized
41%
and materials marketing across all
customer interactions
Customer Sell I Order I Fulfill
Service Sell
A leading provider
A US-based Servicing customer Selling and fulfillment of
national needs across all of products and teaching, learning,
communications and research
service provider
interaction channels services across solutions grew
reduced customer all channels direct-to-
churn by delivered consumer
a ROI Integrated Value Chain commerce
revenues year over
year by
376 % 70%
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© 2011 IBM Corporation

7. 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 • Customer Self Service
• Logistics Management • Search Optimization, Ad Orchestration Enablement
• Inventory Optimization Targeting • Fulfillment and Supply Chain • Reverse Logistics
• Marketing Resource Mgmt Optimization • Case Management
• Mobile Commerce
ADVANCED ANALYTICS
Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management
WORKLOAD OPTIMIZED SYSTEMS
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© 2011 IBM Corporation

8. 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 Developing, delivering, and Selling and fulfillment of products Servicing customer needs across
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 • Cross-Channel Order Capture, Cart
Sterling Commerce
• Distributed Order Management Sterling Commerce
• Warehouse Management and Catalog
• Warehouse Management • Delivery & service Scheduling
• Transportation Management • Customer-centric Shopping Experience
• Transportation Management • Reverse Logistics
• Supply Chain Visibility • B2C/B2B Storefronts
• Sterling Collaboration • Supply Chain Visibility Sterling
• Precision Marketing IBM Case Manager
Network/B2B Services Collaboration Network/B2B Services
• Case Design, Run-time, Analytics
Coremetrics Retail Store Solutions
• Collaboration
• Retail POS Solutions
• Analytics • Rules & Events
• Self-Service Portal/Kiosk
• Segmentation
• POS Applications ILOG Supply Chain
• Reporting
ILOG Supply Chain • Search Optimization • Network Optimization Unica
• Mobile • Transportation Optimization • Service messaging
• Product Optimization
Sterling Commerce • Notifications
• Inventory Optimization
Unica • Cross Channel Order
• Resource Mgmt Management
• Campaign Mgmt • Configuration
• Marketing execution • Pricing
• Performance • Multi-vendor catalog
• Analysis • Quoting
ADVANCED ANALYTICS
Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management
WORKLOAD OPTIMIZED SYSTEMS
PureScale Application Smart Analytics
Systems BPM Suite
8 System
© 2011 IBM Corporation

9. IBM Smarter Commerce: Making it Real
INVESTMENT
Integrated Solutions: $2+ billion investment in best of breed buy-market-sell
software and expertise to deliver integrated solutions for our clients
New GBS Practice: Global Business Services expanding its consulting and solutions
capabilities for commerce with a new practice
RESEARCH
IBM Research Innovation: Comprised of over 3000 researchers, IBM Research includes
R&D in the areas of customer insight, financial management, social business and
supply chain, working with clients to develop innovative approaches to deliver
business value
INNOVATION
Extension of our Business Analytics & Optimization: Leverage >$14 billion
in analytics focused acquisitions. The BAO practice has 8,000+ dedicated
business consultants with industry expertise & includes a Customer,
Marketing & Sales Analytics focus
Smarter Computing: Over 25,000 hardware and 25,000 software
developers WW, IBM is investing in Workload Optimized Systems to help
companies manage the high transactional & real-time business insights
needs driven by commerce applications.
EDUCATION
Enabling our Ecosystem: A IBM Smarter Commerce
University dedicated to on-ramping business partners, new
9 hires and consultants
© 2011 IBM Corporation

10. 10
© 2011 IBM Corporation

11. What is IBM Smarter Commerce?
Smarter Commerce is a new approach that transforms the speed in which clients manage and adapt their
buy, market, sell, and service processes putting the customer at the center of decisions and actions. It drives new
levels of company differentiation leading to greater customer loyalty, revenue / margin growth, and agility.
IBM’s approach to Smarter Commerce
is comprehensive, integrated, outcome
driven and flexible. We will help
companies:
 Understand and anticipate customer
behavior based on customer insights across
all channels
 Adapt sourcing and procuring of goods and
services based on customer demand and
optimize supplier interactions across
extended value chains
 Market, sell and fulfill the right product and
service, right price, right time and place
 Service customers flawlessly, predict and
drive customer loyalty
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© 2011 IBM Corporation

12. What does Smarter Commerce mean to these clients?
For Staples, a $24B retailer, Smarter Commerce means transforming
the customer experience across all interaction channels by delivering
a personalized buying experience for over 10,000 B2C and B2B
customers in 27 countries
For ING Bank, serving over 85M customers, Smarter Commerce
means transforming their marketing so personalized product offers
can be delivered across multiple channels in real time resulting in
€20M increase in corporate earnings, 35% reduction in marketing
costs, and shorter cycle times
For Crocs, a $700M manufacturer, Smarter Commerce means
transforming their fulfillment operations and supply chain so
internet customer orders are filled with 100% accuracy through their
network of suppliers at the lowest cost
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© 2011 IBM Corporation

13. IBM Smarter Commerce – Leverage IBM’s Brand Differentiators
Smarter Commerce
marketing IBV Studies
and progression paths
Op
Ads
Realized Belief
value Analysts and thought
leadership whitepapers
Innovation Discovery Charting the
and Classroom to Client Setting the
client’s path to
Workshops shared agenda
deliver that value
Third party and
IBM events & Collaborating with Making the case
Roundtables experts to define with expertise and Digital
future value proven outcomes webcast
series
Participation Evidence
Build a Network Microsite &
Of Influencers Videos / podcasts Press coverage,
CXO site bylined articles, op-
eds and client
references
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© 2011 IBM Corporation

14. What is unique about IBM’s Smarter Commerce?
Comprehensive Integrated
 Spans the complete  Integrated products and
commerce lifecycle capabilities to deliver
across buy and sell-side industry focused solution
commerce offerings
Suppliers  A strong set of integrated
 Packages software,
consultative and analytics to track
integration services and customer behavior across
infrastructure all channels
Integrated Partners
Customers Solution
Outcome Driven Flexible and Open
 Drives measureable  Flexible deployment
business outcomes to models that include on-
industry specific business
Influencers
premises, as-a-service,
owners hosted or hybrid models
 Delivers powerful
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 Modular offerings and
optimization capabilities flexible consumption
around all aspects of the
commerce lifecycle
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© 2011 IBM Corporation

15. 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
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© 2011 IBM Corporation

16. Dal-tile delivers perfect order orchestration
 Challenge
A sales center could only see what they had
available in their individual store
 A sales center could only see what they had available in their
 Existing system was costing them time and
individual store
 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 Management reduced order fulfillment
order fulfillment costs by efficiently
costs by efficiently orchestrating order and service
orchestrating order and service fulfillment
fulfillment

 Flexibility forfor future growth required to meet
Flexibility future growth required to meet 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
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© 2011 IBM Corporation

17. 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
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© 2011 IBM Corporation

18. 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
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© 2011 IBM Corporation