February 16th, 2012 Prague. Smarter Commerce. Robert Mahr. Leader Smarter Commerce CEE & RCIS
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1 February 16th, 2012 Prague Smarter Commerce Robert Mahr Leader Smarter Commerce CEE & RCIS
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3 Complex Fuzzy Interlocked Powerful!
4 The Smarter Consumer is more instrumented Instrumented 36% more consumers use 2 or more technologies when shopping than last year. Source: Capitalizing on the smarter consumer ; IBM Institute for Business Value; 2011
5 The Smarter Consumer is more interconnected Instrumented Global mobile subscriptions equal 87% of the world s population. Interconnected Source: The World In 2011: ICT Facts And Figures ; ITU World Telecommunication
6 The Smarter Consumer is more Intelligent Instrumented Worldwide smartphone market is expected to grow 49.2% in Interconnected Intelligent Source: Worldwide Quarterly Phone Tracker ; IDC; March 2011
7 The Smarter Consumer is more engaged than ever before Instrumented Engaged Interconnected 91% of mobile users keep their phone within one meter s reach 24/7. Intelligent Source: China Mobile 50k survey ; Morgan Stanley Research; 2007
8 The Smarter Consumer is more empowered than ever before Instrumented 61% of consumers rely on user reviews for product information before making a purchase decision. Engaged Deals Interconnected Pricing Product Details Reviews Product Comparisons Product Availability Empowered Intelligent Source: Digital Consumer Behavior Study ; Avenue A/Razorfish; 2008 Source: Products with syndicated reviews convert 26% higher ; Bazaarvoice; 1/21/10Noah2020
9 The Smarter Consumer is more influenced and more influencing than ever before Instrumented Engaged Deals Interconnected Pricing Product Details Reviews Product Comparisons Product Availability Empowered Influenced/ Influencing Intelligent
10 The Smarter Consumer is more influenced and more influencing than ever before Instrumented 81% received advice through a social site about an upcoming purchase; 74% of those found it influential in their buying decision. Engaged Deals Interconnected Pricing Product Details Reviews Product Comparisons Product Availability Empowered Influenced/ Influencing Intelligent Source: Does social media sway online shopping? ; Bloomberg BusinessWeekre: myyearbookonline survey of 45,000 users; January 2010
11 The Smarter Consumer is more influenced and more influencing than ever before Instrumented Engaged 81% received advice through a social site about an upcoming purchase; 74% of those found it influential in their buying decision. Interconnected Pricing Reviews Deals Product Details Product Comparisons Whose recommendations do consumers trust? Empowered Intelligent 1 Source: Global Online Consumer Survey ; Nielsen; July Source: IBV Retail 2012 Winning Over the Empowered Consumer Survey; IBM; January 2012 Product Availability Influenced/ Influencing Friends & family 90% 1 Unknown users 70% 1 Retailers 10% 2
12 The balance of power over brand preferenceand buying decisions has shifted from the brand owner to the newly-empowered Smarter Consumer Instrumented Engaged Deals Interconnected Pricing Product Details Reviews Product Comparisons Product Availability Empowered Influenced/ Influencing Intelligent
13 These disruptive forcesripple from the customer through the enterprise and across entire industries Individuals The connected consumer The networked workforce The empowered citizen The consumer is using new channels to perceive value, and associated pricing implications. Consumer Products CEO Enterprises Evolved business models Optimized digital operations Connected enterprise Industries Value migration Value chain redefinition Fragmentation "Profits will shift away from analog distribution to digital distribution; we will see increased margins in digital distribution and increased international distribution. Media and Entertainment CEO Disintermediation of clients by smaller niche players (such as mobile players) is cause for concern. Financial Markets CEO 13 Source: IBV Analysis
14 Power has shifted to the customer compressing margins and changing paradigms In this new era, businesses need to: Understand and anticipate customer behavior and needs based on customer insights across all channels Adaptsourcing and procurement based on customer demand and optimize supplier interactions across extended value chains Market, sell and fulfill the right product and service at the right price, time and place Service customers flawlessly, predict and drive customer loyalty 14
15 At IBM we call the path forward: Smarter Commerce Smarter Commerce is a strategic approach that placesthe customer at the centerof your business operations It drives growthby enhancing, extending, and redefining the value you provide It maximizes the insight generated through customer interactions Customer It capitalizes on social and mobile commerce It synchronizes your entire value chain to deliver consistent and predictable outcomes It increases marginsby boosting efficiency at every stage of the commerce cycle It improves collaboration and visibilityfor your customers & partners 15
16 Smarter Commerce focuses on three dimensions centered around the customer Customer Insight In today s world of instant business, you need deep insights, in real-time that you can turn into immediate action Customer Value Strategy In turn, you must re-think how your customers define value, and the changes you must make to your value chain so you can deliver exactly what your customers want - profitably Customer & Partner Engagement Customer You need an approach that allows you to more effectively connect, collaborate, conduct commerce and create a differentiated customer experience increasing the value companies generate for their customers and partners in a rapidly changing digital world 16
17 17 Smarter Commerce can help transform every phase of the commerce cycle Buy Drives intelligent, adaptive and optimized extended supply chains based on customer demand Insight Buy Sourcing, controlling and procurement of goods and services Market Targeted and personalized marketing across all customer interactions Strategy Market Creates personalized and relevant offers with unified cross-channel marketing Service Anticipates behavior and delivers flawless customer service across all channels Service Servicing customer needs across all interaction channels Customer Sell Selling and fulfillment of products and services across all channels Sell Enables customers and partners to buy what they want, when and where 17 Engagement
18 IBM s integrated portfolio for Smarter Commerce Innovation and business value Innovating and aligning business models to drive value to the customer VALUE CHAIN STRATEGY AND SERVICES Market and customer mgmt Aligning sales, marketing and operations to engage with customers Operating and organization models Designing operations, supply chain and the organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service Sourcing Supplier Life Cycle Management Supplier Integration & Management Supply Chain Optimization Logistics Management Payments and Settlements Customer Awareness & Analytics Social Media Marketing Brand Experience Cross-channel Campaign Mgmt Digital Marketing Optimization Marketing Resource Mgmt Cross-channel Selling Distributed Order Management Customer Integration & Collaboration Fulfillment Store Solutions Payments & Settlements Contract Management 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 Delivery, Service, & Support Customer Self-Service Reverse Logistics Case Management
19 CUSTOMER VALUE STRATEGY CORE BUSINESS SOLUTIONS Buy Market Sell Service Emptoris Spend Analysis Sourcing Contract Management Supplier Lifecycle Management Category Compliance Management Sterling Commerce Transportation Management Supply Chain Visibility B2B Integration Supplier Portal Vendor Compliance Unica Resource Mgmt Campaign Mgmt Marketing execution Performance Analysis Coremetrics Analytics & Reporting Segmentation Search Optimization WebSphere Commerce Cross-Channel Selling Customer-centric Shopping Experience B2C/B2B Storefronts Precision Marketing Emptoris Contract Management Sterling Commerce Order Management Configuration, Pricing, Quoting Multi-vendor catalog Warehouse Management Transportation Management Supply Chain Visibility B2B Integration Sterling Commerce Delivery & service Scheduling Reverse Logistics IBM Case Manager Case Design, Run-time, Analytics Collaboration Rules & Events ILOG Supply Chain Product Optimization Inventory Optimization DemandTec Price, Promotion, Merchandising Marketing Analytics Retail Store Solutions Retail POS Solutions Self-Service Portal/Kiosk POS Applications ILOG Supply Chain Network Optimization Transportation Optimization Unica Service messaging Notifications CUSTOMER INSIGHT SOLUTIONS
20 Successful companies are staying competitive by transforming their approach to commerce 95% Amount a major transportation company reduced partner integration time*. 41% Amount a retail pet company increased sales per unique web visitor. Also increased open and click-through rates to five times the industry average*. 50% Amount a leading provider of teaching, learning and research solutions grew direct-to-consumer commerce revenues year over year*. 376% Amount a US-based national communications service provider boosted ROI by reducing customer churn. 20 *Case studies based on Coremetrics, Sterling Commerce and Unica solutions
21 What is unique about IBM s Smarter Commerce? Comprehensive Optimizes the complete commerce lifecycle Leading software, services and infrastructure Suppliers Integrated Integrated analytics Integrated focused industry solutions Customers IBM Smarter Commerce Partners Outcome Driven Measureable business outcomes Outcomes tailored to business domains Influencers Flexible and Open Flexible deployment Modular offerings and flexible consumption 21
22 CUSTOMER VALUE STRATEGY CORE BUSINESS SOLUTIONS Buy Market Sell Service Emptoris Spend Analysis Sourcing Contract Management Supplier Lifecycle Management Category Compliance Management Sterling Commerce Transportation Management Supply Chain Visibility B2B Integration Supplier Portal Vendor Compliance Unica Resource Mgmt Campaign Mgmt Marketing execution Performance Analysis Coremetrics Analytics & Reporting Segmentation Search Optimization WebSphere Commerce Cross-Channel Selling Customer-centric Shopping Experience B2C/B2B Storefronts Precision Marketing Emptoris Contract Management Sterling Commerce Order Management Configuration, Pricing, Quoting Multi-vendor catalog Warehouse Management Transportation Management Supply Chain Visibility B2B Integration Sterling Commerce Delivery & service Scheduling Reverse Logistics IBM Case Manager Case Design, Run-time, Analytics Collaboration Rules & Events ILOG Supply Chain Product Optimization Inventory Optimization DemandTec Price, Promotion, Merchandising Marketing Analytics Retail Store Solutions Retail POS Solutions Self-Service Portal/Kiosk POS Applications ILOG Supply Chain Network Optimization Transportation Optimization Unica Service messaging Notifications CUSTOMER INSIGHT SOLUTIONS
23 Recognized leadership in Enterprise Market Management Unica: Leader Gartner Magic Quadrant: Marketing Resource Mgmt, Q1 09QQ109 Gartner Unica: The Leader Gartner Magic Quadrant: Multi-Channel Campaign Mgmt, Q2 09QQ210 Unica: Visionary Gartner Magic Quadrant: Enterprise Marketing Mgmt, Q4 10 Unica: Leader The Forrester Wave : Enterprise Marketing Platforms, Q1 08 Coremetrics: Leader The Forrester Wave : Web Analytics, Q3 09Q309 Unica: Leader The Forrester Wave : Cross-Channel Campaign Mgmt, Q4 09QQ409 23
24 Recognized leadership for E-Commerce, B2B Integration, MFT, Order Management IBM: Leader Gartner Magic Quadrant: E-Commerce, Q2 10 Gartner Sterling Commerce: Leader Gartner Magic Quadrant: Managed File Transfer, Q3 09 Sterling Commerce: Leader Gartner Magic Quadrant: Integration Service Providers, Q4 09 IBM Leader The Forrester Wave : B2C ecommerce Platforms, Q4 10 Sterling Commerce: Leader Forrester Wave : Order Management Hubs, Q3 10 Sterling Commerce: Leader Forrester Wave : B2B Service Providers, Q
25 IBM is the partner for Smarter Commerce Leading industry capabilities and offerings Analytics, B2B Integration, Decision Optimization, Enterprise Marketing Management, Order Management, Selling and Fulfillment Modular approach to address key challenges today and grow with confidence Leader in research and development $2.5 billion invested since 2010 to create a truly smarter approach to commerce New services practice with more than a thousand dedicated experts Expertise in over 20 industriestohelp create a solution customized for your specific needs Leader in Smarter Computing -Over 50,000 hardware and software developers optimizing systems to manage needs driven by commerce applications 25
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