This document discusses how mobile technology and social media are reshaping business and consumer expectations. It notes that consumers now expect seamless, personalized experiences across all channels and want more control over how and when they interact with brands. The document advocates that companies take an integrated approach to commerce that focuses on customer experience, value chain optimization, and customer insight in order to deliver exceptional customer experiences.

1. © 2013 IBM Corporation
Redefining Analytics and Commerce in the
age of the empowered consumer
Frank Theisen
Vice President Smarter Analytics & Smarter Commerce
IBM Europe

2. © 2013 IBM Corporation
Mobile and social are reshaping business
34%
of smartphone
users have scanned
a QR Code, 27%
have read online
reviews
84%
of US adults who have
conducted a
transaction online or
through a mobile
device report
experiencing a
problem
50%
increase in
online sales via
mobile devices
over 2011
55%
of smartphone
users compare
prices in stores
63%
of online adults are
less likely to buy via
other channels if
they experienced a
problem on their
mobile phones
92%
of consumers say
they trust earned
media, such as
word-of-mouth and
recommendations
2
Sources: IBM, Forrester, Tealeaf and Emphathica Reports

3. © 2013 IBM Corporation
4 in 10 Smartphone
users search for an
item in a store
70% of online
consumers
trust peer
recommendations
77% of buyers check
with peers before
buying
58% of retail
customers want to
access relevant
product info in-store
42% of consumers want
personalized promotions in-store
based on what they scan
Generation C - the Connected Customer
3

4. © 2013 IBM Corporation
There is a
perception gap
regarding why consumers
interact with Brands via
social sites. Therefore the
digital communication is
not optimally adjusted to
consumer’s requirements
yet.
Generation C - They want control
83% of customers say
they are more likely to
do business with brands
that allow them to
personalize and control
where, when and how
they interact through
their preferred channel
combinations.
4

5. © 2013 IBM Corporation
Customer expectations are soaring
5
you to know them as an individual
a seamless and integrated experience
a flawless post-purchase experience
relevant, timely promotions
simple, yet feature-rich self-service
capabilities
They want:

6. © 2013 IBM Corporation
Every interaction is important
6
Engagement
Interacting
Awareness
Transacting
Involvement
Usage
Advocacy

7. © 2013 IBM Corporation
Leaders are taking an integrated approach to commerce
7
Anticipates
and deliver
across
mobile and
social
Optimizes
procurement
based on
demand
Applies deep
insights to
take action
in real time
Extends core
systems to
synchronize
your value
chain
Puts the
customer at
the center
of your
commerce
processes

8. © 2013 IBM Corporation
Smarter Commerce delivers exceptional customer experiences
8
Buy
Adaptive
procurement
and optimized
supply chain
Market
Targeted and
personalized
marketing across
all channels
Service
Anticipate
behavior and
deliver flawless
customer service
Sell
Seamless cross-
channel customer
experience
MarketBuy
Service Sell
MarketBuy
Service Sell

9. © 2013 IBM Corporation
Reinventing
the way companies
interact with customers
Insight driven promotions
Location based services
Social sharing
Endless aisle
Mobile shopping services
Social sentiment analysis
Inventory visibility
Mobile platform analysis
Clienteling, customer
personalization
Purchase decision support
Empowering
employees and
partners
ServiceSellMarketBuy
9
Smarter Commerce puts mobile and social everywhere

10. © 2013 IBM Corporation
“Multi-channel” has
evolved to “all
channels, all the time”
Customer
Engagement
Smarter Commerce requires focus on three dimensions
Customer Experience
Integration and
synchronization
to meet new value
delivery requirements
Value Chain
Optimization
Advocacy based on
trust is the new
“loyalty”
Customer Insight
and Intelligence
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11. © 2013 IBM Corporation
Begin with these questions for your Smarter Commerce journey
Does your business
model adapt to
capitalize on new
market opportunities?
Are you leveraging
customer insight to
reshape your
business?
Can your operations
anticipate and adjust
dynamically to
market conditions? Do you deliver exceptional
customer experience
across all touch points?
Could your supply
chain interrupt
service to your
customers?
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12. © 2013 IBM Corporation
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13. © 2013 IBM Corporation
13
Disruptive Technology Factors Are Making New Things Possible
Social Media
Cloud Computing
Mobile
Internet of Things

14. © 2013 IBM Corporation
14 IBM Confidential
“Data is the New Oil”
“We have for the first time an economy
based on a key resource (Information)
that is not only renewable, but self-generating.
Running out of it is not a problem, but drowning in it is.”
— John Naisbitt
Big Data is the next Natural Resource
Harvesting any resource requires Mining, Refining and Delivering

15. © 2013 IBM Corporation
Big Data is All Data from Everywhere
Transactional &
Application Data Machine Data Social Data
Enterprise
Content
Volume
Structured
Throughput
Velocity
Structured
Ingestion
Variety
Unstructured
Veracity
Volume
Unstructured
Variety
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16. © 2013 IBM Corporation
Today, nearly all our transactions are
recorded in real time.
Nearly everything is
instrumented.

17. © 2013 IBM Corporation© 2013 IBM Corporation
And even our individual needs,
wants, opinions and preferences
are captured

18. © 2013 IBM Corporation© 2013 IBM Corporation
Creating a
proliferation of
big data

19. © 2013 IBM Corporation
Real-time event detection
Micro segmentation
Score sentiment &
satisfaction more accurately
Optimize offers & timing
Faster & more accurate predictive
models
New
Capabilities
Outcomes
Pro-active interactions
Improved offer acceptance
Increased customer satisfaction
Geospatial
Where is
the customer
Social
Attitudes,
preferences
Internal
Customer Data
Structured &
unstructured
Contact Center
Notes & chats,
customer interaction
Transactions
All channels
(Web, call-center,
branch)
External
Customer Data
Credit bureaus,
demographic
(purchased data)
Events
Customer
behavior triggers
Correspondence
Emails & chats
Analyze information from all customer interactions & data sources
19

20. © 2013 IBM CorporationSource: IBM CEO Study, 2012.
Percent of CEOs who believe their organization
is good at driving value from information
OutperformersUnderperformers
Outperformers are seizing the
opportunity
26%
54%
Access
to data
Draw insights
from data
Translate insight
into action
108% more
108% more
86% more
31%
57%
26%
54%
20 © 2013 IBM Corporation

21. © 2013 IBM Corporation
New insights and
new possibilities1
New revenue
opportunities3
Process and performance
improvement2
Future relevance requires
integrating traditional data
with new sources and types
of information to power
transformation
Transaction
Social
Documents
Machine
Application
© 2013 IBM Corporation
Big
Data

22. © 2013 IBM Corporation
Ufone reduced churn and kept
subscribers happy, helping ensure that
campaigns are highly effective and timely
Need
To ensure that its marketing campaigns
targeted the right customers, before they left
the network
To keep its higher usage customers happy
with campaigns offering services and plans
that were right for them
Benefits
Predictive analytics is expected to improve the
campaign response rate from about 25% to at
least 50%
CDRs can be analyzed within 30 seconds,
instead of requiring at least a day
Expected to reduce churn
by approximately 15-20%
© 2013 IBM
Corporation22
1

23. © 2013 IBM Corporation
Vestas optimizes capital
investments based on
Petabytes of information.
• Model the weather to optimize
placement of turbines, maximizing
power generation and longevity.
• Reduce time required to identify
placement of turbine from weeks to
hours.
• Incorporate 3 PB of structured and
semi-structured information flows.
• Relies on IBM Big Data platform
2

24. © 2013 IBM Corporation
Constant Contact Transforming
Email Marketing Campaign
Effectiveness with IBM Big Data
Capabilities
InfoSphere BigInsights, IBM PureData for Analytics
powered by Netezza technology, Cognos BI
Need
Analyze 35 billion annual emails to guide
customers on best dates & times to send emails
for maximum response
Benefits
40 times improvement in analysis performance
15-25% performance increase in customer email
campaigns
Analysis time reduced from hours to seconds

25. © 2013 IBM Corporation
Operations Analysis
Analyze a variety of machine
data for improved business results
Data Warehouse Augmentation
Integrate big data and data warehouse capabilities to
increase operational efficiency
Big Data Exploration
Find, visualize, understand all big
data to improve business
knowledge
Enhanced 360o View
of the Customer
Achieve a true unified view, integrating
internal and external sources
Security/Intelligence
Extension
Lower risk, detect fraud and
monitor cyber security in real-time
The 5 most prominent Big Data Use Cases across industries
25

26. © 2013 IBM Corporation
Customer insight is limited to a sub-set of available data
which limits cross-sell success & provides a poor customer experience
From “I have an offer – let me find a customer to sell to”
CustomerNeedsandSegment
Strategies
MassMarket|MassAffluent|SmallBusiness
Offer
Offer
Offer
Offer
Offer
Offer
Deposits
Offer
Offer
Offer
Offer
Offer
Offer
Card
Offer
Offer
Offer
Offer
Offer
Offer
Mortgage
Offer
Offer
Offer
Offer
Offer
Offer
Investments
Direct mail
BC
Agent, IVR
Online, email
ATM
Mobile, SMS
Chat
Relevance?
Awareness?
Value?
Understanding?
Clarity?
You do not know me or
understand my needs
You ask me multiple
times about the same
thing
Most of your suggestions
seem irrelevant to me
I am not offered
solutions based on my
multiple relationships
When you recognize that I
have a need, you send me
multiple offers – it’s
confusing.
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27. © 2013 IBM Corporation
CustomerNeedsandSegment
Strategies
MassMarket|MassAffluent|SmallBusiness
Deposits
Card
Mortgage
Investments
Customer Experience
& Treatment
Strategies
Direct mail
BC
Agent, IVR
Online, email
ATM
Mobile, SMS
Chat
Brilliant!
Service
Offer
Inform
R
etain
Governance,
Prioritization &
Optimization
Integrated Customer
Analytics
“The bank knows me &
values my
relationship.”
“They seem to know
what I need & when I
need it.”
“The bank isn’t always
selling something.”
“They always get me to
the right place & never
fail to follow up.”
“There is real value to
me in getting all my
needs met by one
bank.”
The customer feels that the bank understands & responds to their changing needs
The bank’s KPI’s improve: Customer Profitability / Satisfaction & Advocacy / Retention
to “I have a customer – what do they need most?”
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28. © 2013 IBM Corporation
New Architecture to Leverage All Data and Analytics
Data in
Motion
Data at
Rest
Data in
Many Forms
Information
Ingestion and
Operational
Information
Decision
Management
BI and Predictive
Analytics
Navigation
and Discovery
Intelligence
Analysis
Landing Area,
Analytics Zone
and Archive
Raw Data
Structured Data
Text Analytics
Data Mining
Entity Analytics
Machine Learning
Real-time
Analytics
Video/Audio
Network/Sensor
Entity Analytics
Predictive
Exploration,
Integrated
Warehouse,
and Mart Zones
Discovery
Deep Reflection
Operational
Predictive
Stream Processing
Data Integration
Master Data
Streams
Information Governance, Security and Business Continuity
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29. © 2013 IBM Corporation
Every Industry can Leverage Big Data and Analytics
Insurance
• 360˚ View of Domain
or Subject
• Catastrophe Modeling
• Fraud & Abuse
Banking
• Optimizing Offers and
Cross-sell
• Customer Service and Call
Center Efficiency
Telco
• Pro-active Call Center
• Network Analytics
• Location Based Services
Energy &
Utilities
• Smart Meter Analytics
• Distribution Load
Forecasting/Scheduling
• Condition Based
Maintenance
Media &
Entertainment
• Business process
transformation
• Audience & Marketing
Optimization
Retail
• Actionable Customer
Insight
• Merchandise Optimization
• Dynamic Pricing
Travel &
Transport
• Customer Analytics &
Loyalty Marketing
• Predictive Maintenance
Analytics
Consumer
Products
• Shelf Availability
• Promotional Spend
Optimization
• Merchandising Compliance
Government
• Civilian Services
• Defense & Intelligence
• Tax & Treasury Services
Healthcare
• Measure & Act on
Population Health
Outcomes
• Engage Consumers in their
Healthcare
Automotive
• Advanced Condition
Monitoring
• Data Warehouse
Optimization
Life Sciences
• Increase visibility into drug
safety and effectiveness
Chemical &
Petroleum
• Operational Surveillance,
Analysis & Optimization
• Data Warehouse
Consolidation, Integration &
Augmentation
Aerospace &
Defense
• Uniform Information
Access Platform
• Data Warehouse
Optimization
Electronics
• Customer/ Channel
Analytics
• Advanced Condition
Monitoring
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30. © 2013 IBM Corporation
Performance
Management
Content
Analytics
Decision
Management
Risk
Analytics
Business Intelligence and Predictive Analytics
Content
Management
Data
Warehouse
Stream
Computing
Hadoop
System
Information Integration and Governance
BIG DATA PLATFORM
SYSTEMS, STORAGE AND CLOUD
Sales | Marketing | Finance | Operations | IT | Risk | HR
ANALYTICS
SOLUTIONS
Industry
CONSULTING and IMPLEMENTATION SERVICES
Innovations and expertise to put analytics and big data
to work for you achieving your Smarter Commerce goals
IBM’s integrated Portfolio for
Smarter Commerce
MarketBuy
Service Sell

31. © 2013 IBM Corporation
IBM Capabilities
Align Anticipate Act
Big Data Platform
Data Warehousing
Information Integration and
Governance
Data Management
Enterprise Content Management
Defensible Disposal
Business Analytics and Optimization Consulting Services
BAO Strategy | Customer Analytics | Regulatory and Risk | Fraud Analytics | Financial Performance Management
Information Management Foundation | IBM Research First-of-a-kind Projects | Application Management Services
IBM Smarter Analytics Signature Solutions
Customer | Finance | Anti-Fraud, Waste & Abuse
IBM Solution Accelerators
Portfolio aligned to Industry Imperatives
Smarter Computing - Systems that are tuned to the task, designed for data, managed with cloud technologies
BI & Performance Management
Predictive and Advanced Analytics
Risk Analytics
Sentiment Analytics
Big Data Analytics
Content Analytics
Web and Digital Analytics
Online Benchmark
Spend Analytics
Decision Management
Advanced Case Management
Digital Marketing Optimization
Cross-channel Selling and Marketing
Pricing, Promotion, and Assortment
Optimization
Marketing Performance Optimization
Supply Chain Optimization
Organization and Workforce
Transformation
Systems that learn and reason
Watson l Watson for Healthcare l Watson for Financial Services l Ready for Watson
Learn
Transform

32. © 2013 IBM Corporation
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