IBM’s distribution sector industry value proposition: IBM collaborates with distributors to help improve customers’ experiences, optimize operations and supply chains, and drive organizational efficiencies.

1. George Mattathil -
5/4/2011
IBM zEnterprise System
business value for the distribution sector
Smarter systems for a smarter planet™
Posting reference 727
© 2010 IBM Corporation

2. IBM helps distribution sector address priority business needs.
DELIGHTED CUSTOMERS – smarter shopping
Superior shopping experiences and personalized interaction enables
shoppers and travelers to engage on their own terms and creates
excitement and motivation for shoppers.
OPERATIONAL EXCELLENCE – smarter operations
Distributors require cost-efficient management of people, processes
and technology, while tightly managing performance.
NEW APPROACH TO TRANSPORTATION – smarter planning and incident prevention
Distributors need to accurately predict demand, optimize capacity, assure safety
and security, and improve operational efficiency while reducing environmental impact.
HIGHLY COMPETITIVE MERCHANDISING – smarter merchandising
Distributors need to secure customer data combined with the need for to-the-
second information about inventories to help promote and drive brand loyalty.
IBM’s distribution sector industry value proposition:
IBM collaborates with distributors to help improve customers’ experiences, optimize
operations and supply chains, and drive organizational efficiencies.
IBM’s value proposition to distribution sector enterprises isenhancedwith the introduction
of the new IBMzEnterprise™ System.
2 © 2010 IBM Corporation

3. Distribution sector business issues can be addressed by new
IBM zEnterprise System advantages.
CUSTOMER issues SUPPLIER issues OPERATIONAL issues
1 2 3
Customer loyalty and satisfaction Reduce costs Leverage insight
EXAMPLE: Independent findings indicate that distribution sector enterprises can realize
significant cost-based efficiencies with zEnterprise, such as:
44% 25%
lower IT cost per credit
card transaction
20% lower IT cost per
retail store
lower IT cost per
airline passenger
“… in the long run the marketplace rewards those that make the optimum use of the right computing resourcesin
the right way as evidenced by business performance”
— Dr. Howard Rubin, CEO and Founder Rubin Worldwide
3 © 2010 IBM Corporation

4. Built on best-in-class systems and software technologies,
IBM zEnterprise helps unify IT for more predictable service delivery that Distribution Sector
Clients demand.
Three new innovations of IBM zEnterprise™ System
IBM zEnterprise 196 (z196) zEnterprise Unified zEnterprise BladeCenter
Resource Manager Extension (zBX)
 Optimized to host large-scale  Unifies management of  Selected IBM POWER7 blades
database, transaction, and resources, extending IBM and IBM System x Blades* for
mission-critical applications System z qualities of service tens of thousands of AIX and
 The most efficient platform end-to-end across workloads Linux applications
for large-scale Linux  Provides platform, hardware  High-performance optimizers
consolidation and workload management and appliances to accelerate
 Capable of massive scale-up time to insight and reduce cost
 New easy-to-use z/OS V1.12  Dedicated high-performance
* All statements regarding IBM future direction and intent are subject to change or withdrawal without notice,
private network
4 and represents goals and objectives only. © 2010 IBM Corporation

5. Extending IBM System z qualities of service can make clouds ready
for distribution sector enterprises.
Security Virtualization
Industry-leading security at the Centralize management of
core of an integrated virtual servers across a
infrastructure heterogeneous pool
Identifies potential fraud in near More than 100,000 virtual servers in
real time a single IBM zEnterprise™ System
Availability Efficiency
Resiliency management and Economies of scale for labor,
fewer points of failure software and environmental costs
Centralized management of Helps reduce labor, energy, and
heterogeneous workloads development costs, by up to 70
aligned to business priorities percent, 90 percent, and 20 percent,
respectively
(IBM Internal Study based on Oracle SW with
Nehalem 4 core running 25% utilization)
Scalability
Ability to meet massive demands
from users and data
Process up to a trillion instructions per
second with a single zEnterprise System
5 © 2010 IBM Corporation

6. IBM’s Retail Industry Framework is supported by an ecosystem of key
IBM Business Partners that are optimized on zEnterprise.
“Our retail customers really depend on
information insight. Now with zEnterprise
hybrid capabilities SAP Merchandising
applications become smarter applications that
benefit from the governance and management
of this new system.”
Craig Jonsson
Vice President of IBM Alliance for SAP
Note: Partner shown is illustrative subset of our complete partner ecosystem.
6
6 © 2010 IBM Corporation

7. Why systems matter to distributors—next generation e-commerce
Today IBM System z® next
 Business challenge:  New system design, new possibilities:
– Provide seamless shopping experience – Simplify management of a multi-channel
across all channels solution across a single virtualized
infrastructure
 Operational challenges: – Handle unpredictable spikes in e-
– Integrating across multiple siloed systems commerce traffic with automated
– Avoiding system bottlenecks as provisioning and workload management
transactions spike – Reduce operational costs by up-to xx
– Scale without added complexity and cost percent with less infrastructure and reduced
– Addressing potential security exposures security risk
Single virtual infrastructure
Multiple
Multiple channels
channels
Application Customer Customer Application
server farm database database server
7 © 2010 IBM Corporation

8. Why systems matter to distributors—near real-time fraud detection
Today IBM System z® “next”
 Business challenge:  New system design, new possibilities:
– Identify fraud risks in real time across – Near real-time performance, claims
multiple lines of business and payment processing (OTLP1) and fraud (analytics)
channels queries from same database
– Speed fraud detection query times by up to
 Operational challenges: 10-times with IBM Smart Analytics
– While data warehouse can detect trends, it’s Optimizer
difficult to prevent fraud in real time because – One-third less storage required when
data is copied in bulk or batch mode. claims (OLTP) and fraud (analytics)
– Ability to achieve real-time performance combined on IBM System z ―next‖ can
– Risk, complexity, and cost of multiple copies mean reduced risk
of data
Single virtual infrastructure
Claims Fraud
processing detection Smart
Claims Fraud
Analytics
Data processing detection
Optimizer
extracts
(OLTP) (Analytics)
8 © 2010 IBM Corporation

9. Here is an example of a retail client using SAP Financials and
IBM zEnterprise System.
Challenges and issues:
 Coordination of application across platforms is resource intensive and vulnerable
to several points of impact
 Too many network hops from one platform to another to get data
 Hardware microcode updates cannot be applied without an outage
 Different monitoring software tools per server type with different software process
for site failovers
Business advantage
Helps ensure business controls, such as security
The future with IBM zEnterprise™ System and compliance, can be achieved on a consistent
SAP Data Server on IBM DB2® IBM z/OS® with basis across the applications and platforms
Application Serving on p7 Blades in zBX integrated
in zEnterprise. Future exploration of enabling SAP Organizational advantage
BWA as an application running on x86.  Insulates application development teams
from infrastructure technology
 Consolidates skills through consistent tools
Operational advantage
 Ability to monitor and manage a critical application end to end from a workload view
 Ability to make adjustments in available resources, apply maintenance, manage
server availability and handle business peaks with true application insulation
 Better utilize assets across production and non-production environments
9 © 2010 IBM Corporation

10. Summary: A new dimension in computing for distribution sector
Management Multi-platform
integration integration  The world’s fastest and most
scalable enterprise system with
unrivalled reliability, security
and manageability
 The industry’s most efficient
platform for large-scale data
center simplification
and consolidation
 A ―system of systems,‖ integrating
Stack IBM’s leading technologies to help
integration dramatically improve productivity
of today’s multi-architecture
data centers and tomorrow’s
private clouds
For more details: ibm.com/systems/zenterprise
10 ©Posting reference 727
2010 IBM Corporation