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Smarter Commerce: Moments matter.

©	
  2013	
  IBM	
  Corpora/on

	
  
Agenda	
  
Overview:	
  
Smarter	
  Commerce	
  intro	
  and	
  overview	
  
What	
  Smarter	
  Commerce	
  can	
  mean	
  to	
  
you	
  and	
  your	
  partners	
  
How	
  and	
  where	
  to	
  start	
  with	
  your	
  
Smarter	
  Commerce	
  journey	
  
The	
  key	
  contacts	
  for	
  Smarter	
  
Commerce	
  
The	
  next	
  steps	
  for	
  you	
  as	
  a	
  partner	
  for	
  
Smarter	
  Commerce	
  	
  

2	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
3

3	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Businesses	
  face	
  new	
  challenges	
  every	
  day	
  	
  

60%	
  

of	
  B2B	
  customer	
  
buying	
  decisions	
  
completed	
  before	
  
engaging	
  your	
  
sales	
  teams	
  

69%	
  

of	
  B2B	
  companies	
  
ignore	
  customers	
  
who	
  provide	
  
feedback	
  via	
  social	
  
media	
  

4	
  

57%	
  

of	
  business	
  buyers	
  
have	
  purchases	
  
goods	
  for	
  their	
  
companies	
  online	
  
and	
  37%	
  expect	
  to	
  
do	
  more	
  in	
  2014	
  

32%	
  

of	
  B2B	
  customers	
  
create	
  social	
  media	
  
content,	
  which	
  
includes	
  raDngs,	
  
reviews,	
  blogs	
  and	
  
tweets	
  

Sources:	
  	
  IBM,	
  	
  Harvard	
  Business	
  Review,	
  Acquity	
  Group,	
  Gartner,	
  Forrester	
  Satmetrix	
  

9out10	
  

CXOs	
  said	
  they	
  
plan	
  to	
  collaborate	
  
much	
  more	
  
extensively	
  with	
  
their	
  customers	
  
over	
  next	
  3-­‐5	
  years	
  

50%	
  

of	
  B2B	
  
collaboraDon	
  will	
  
take	
  place	
  through	
  
Web	
  APIs	
  by	
  2016	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Mobile	
  and	
  social	
  are	
  reshaping	
  business	
  	
  
	
  

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	
  

5	
  

Sources:	
  	
  IBM,	
  	
  Forrester,	
  Tealeaf	
  and	
  Emphathica	
  Reports	
  

34%	
  

of	
  smartphone	
  
users	
  have	
  scanned	
  
a	
  QR	
  Code,	
  27%	
  
have	
  read	
  online	
  
reviews	
  

92%	
  

of	
  consumers	
  say	
  	
  
they	
  trust	
  earned	
  
media,	
  such	
  as	
  	
  
word-­‐of-­‐mouth	
  and	
  
recommendaDons	
  

55%	
  

increase	
  in	
  	
  
online	
  sales	
  via	
  
mobile	
  devices	
  
over	
  2012	
  

84%	
  

of	
  US	
  adults	
  who	
  
have	
  conducted	
  a	
  
transacDon	
  online	
  or	
  
through	
  a	
  mobile	
  
device	
  report	
  
experiencing	
  a	
  
problem	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Delivering	
  superior	
  customer	
  engagement	
  every	
  
/me,	
  in	
  every	
  context
	
  
A	
  supply	
  chain	
  

prepared	
  	
  

for	
  the	
  unpredictable	
  

Service	
  that	
  knows	
  	
  
what	
  customers	
  want	
  
before	
  they	
  do	
  

6	
  

MarkeDng	
  targeted	
  to	
  
every	
  customer	
  

personally	
  

Selling	
  that’s	
  there	
  for	
  
your	
  customers,	
  
wherever	
  they	
  are	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Successful	
  companies	
  embracing	
  this	
  strategy	
  
	
  
Improved
procurement and
defined new rules
with eAuctions

Fixed customer
experience problems
and increased
conversions

7	
  

Delivered
personalized
interactions which
led to new business

Leveraged social
programs to drive
sales and ongoing
engagement

©	
  2013	
  IBM	
  Corpora/on

	
  
Smarter	
  Commerce	
  sa/sfies	
  customers	
  at	
  the	
  
speed	
  of	
  life	
  
Buy	
  
Adap/ve	
  
procurement	
  
and	
  op/mized	
  
supply	
  chain	
  	
  

Targeted	
  and	
  
personalized	
  
marke/ng	
  
across	
  all	
  
channels	
  

Service	
  

Sell	
  

An/cipate	
  
behavior	
  and	
  
deliver	
  flawless	
  
customer	
  service	
  

8	
  

Market

Seamless	
  
cross-­‐channel	
  
customer	
  
experience	
  	
  

	
  

	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Our	
  solu/ons	
  are	
  infused	
  with	
  mobile,	
  social,	
  analy/cs	
  and	
  cloud	
  
capabili/es	
  	
  

9	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
IBM’s	
  integrated	
  por^olio	
  for	
  Smarter	
  Commerce	
  
Smarter	
  Commerce	
  Services	
  
Core	
  Business	
  Solu/ons	
  and	
  Processes	
  
BUY	
  

MARKET	
  

SELL	
  

SERVICE	
  

Adap/ve	
  
procurement	
  and	
  
op/mized	
  supply	
  
chain	
  

Targeted	
  and	
  
personalized	
  
marke/ng	
  across	
  
	
  all	
  channels	
  	
  

Seamless	
  	
  
cross-­‐channel	
  
customer	
  
experience	
  	
  

An/cipate	
  
behavior	
  and	
  
deliver	
  flawless	
  
customer	
  service	
  

	
  

	
  

	
  

	
  

Business	
  AnalyDcs	
  
IBM	
  SmartCloud	
  SoluDons,	
  CompuDng	
  and	
  Infrastructure	
  	
  

10	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
We	
  have	
  invested	
  in	
  leading	
  capabili/es	
  to	
  transform	
  your	
  business	
  
LEADER	
  in	
  File	
  Transfer	
  

	
  
Buy • Sell
	
  

LEADER	
  in	
  Procurement	
  

	
  
Buy	
  

LEADER	
  in	
  B2B	
  and	
  Order	
  
Management	
  

	
  
	
  Buy	
  •	
  Sell	
  

LEADER	
  in	
  Customer	
  

LEADER	
  in	
  Mobile	
  Messaging	
  

	
  
Market	
  •	
  Sell	
  

LEADER	
  in	
  Merchandising	
  

	
  
Market	
  •	
  Sell	
  

LEADER	
  in	
  Campaign	
  Management	
  

	
  
Market	
  

Experience	
  Management	
  

	
  

	
  

Market	
  •	
  Sell	
  •	
  Service	
  	
  
11

LEADER	
  in	
  Digital	
  MarkeDng	
  

Market	
  
©	
  2013	
  IBM	
  Corpora/on

	
  
Agenda	
  
Overview:	
  
Smarter	
  Commerce	
  intro	
  and	
  overview	
  
What	
  Smarter	
  Commerce	
  can	
  mean	
  to	
  
you	
  and	
  your	
  partners	
  
How	
  and	
  where	
  to	
  start	
  with	
  your	
  
Smarter	
  Commerce	
  journey	
  
The	
  key	
  contacts	
  for	
  Smarter	
  
Commerce	
  
The	
  next	
  steps	
  for	
  you	
  as	
  a	
  partner	
  for	
  
Smarter	
  Commerce	
  	
  

12	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
IBM’s	
  Integrated	
  Por^olio	
  for	
  Smarter	
  Commerce	
  
Customer	
  &	
  Digital	
  
Strategy	
  

|	
  

IBM	
  	
  
InteracDve	
  

BUY	
  

AdapDve	
  procurement	
  and	
  
opDmized	
  supply	
  chain	
  
§  Procurement	
  OperaDons	
  &	
  
Accounts	
  Payable	
  **	
  
§  Enterprise	
  and	
  Category	
  
Spend	
  Management**	
  
§  Source	
  to	
  Contract	
  
§  Supplier	
  IntegraDon	
  and	
  
CollaboraDon	
  	
  
§  Supplier	
  Management	
  Risk	
  
and	
  Compliance	
  
§  Supply	
  Chain	
  Management	
  

Smarter	
  Commerce	
  Services	
  
|	
  

Customer	
  
Plaeorms	
  

|	
  

Smarter	
  
AnalyDcs	
  

|	
  

Managed	
  
Services/BPO	
  

	
  
Core	
  Business	
  SoluDons	
  and	
  Processes	
  

Market	
  

Targeted	
  and	
  personalized	
  
markeDng	
  across	
  channels	
  
§  Cross-­‐Channel	
  MarkeDng	
  
OpDmizaDon	
  
§  Customer	
  Experience	
  
Management	
  
§  Digital	
  MarkeDng	
  
OpDmizaDon	
  
§  MarkeDng	
  Performance	
  
OpDmizaDon	
  
§  Pricing,	
  PromoDon	
  and	
  
Product	
  Mix	
  OpDmizaDon	
  	
  

Sell	
  

Seamless	
  cross-­‐channel	
  
customer	
  experience	
  
§  Contract	
  Management**	
  
§  Customer	
  IntegraDon	
  and	
  
CollaboraDon	
  
§  Omni-­‐Channel	
  Commerce	
  
§  Payments	
  and	
  Sealements	
  
	
  

|	
  

ApplicaDon	
  
Management	
  

Service	
  

AnDcipate	
  behavior	
  and	
  
deliver	
  flawless	
  customer	
  
service	
  
§  Case	
  Management	
  
§  Customer	
  Self-­‐Service	
  	
  
§  Delivery,	
  Service,	
  and	
  Support	
  
§  Online	
  Customer	
  Service	
  
OpDmizaDon	
  	
  
§  Watson	
  Engagement	
  Advisor	
  

B2B	
  IntegraDon	
  

Social	
  Business	
  	
  	
  	
  	
  	
  I	
  	
  	
  	
  	
  	
  Mobile	
  Enterprise	
  	
  	
  	
  	
  I	
  	
  	
  	
  Big	
  Data	
  &	
  AnalyDcs	
  	
  	
  	
  	
  	
  	
  I	
  	
  	
  	
  	
  	
  Cloud	
  
Smarter	
  CompuDng	
  Infrastructure	
  
**Currently	
  In	
  Smarter	
  Commerce	
  DefiniDon	
  Process	
  	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
The	
  Market	
  Opportunity	
  –	
  WW	
  
•  The	
  opportunity:	
  $104B	
  in	
  2013,	
  growing	
  at	
  14%,	
  more	
  than	
  three	
  Dmes	
  the	
  IT	
  CAGR.	
  
•  The	
  opportunity	
  for	
  integrated	
  commerce	
  soluDons	
  is	
  growing	
  even	
  faster	
  –	
  30%	
  CAGR	
  
•  $20B	
  Global	
  Sonware	
  opportunity,	
  and	
  3x	
  that	
  in	
  Services	
  and	
  Systems.	
  

Client	
  Size	
  
>1000	
  	
  	
  =	
  	
  	
  61%	
  
100	
  –	
  999	
  =	
  19%	
  
1	
  –	
  99	
  	
  =	
  	
  15%	
  
Non	
  Business	
  =	
  	
  4%	
  
Buy	
  

27%	
  

Market	
  

12%	
  

Sell	
  

25%	
  

Service	
  

• 
• 
• 
• 
• 
• 
• 
• 
• 

Banking	
  (20%)	
  
TelecommunicaDons	
  (12%)	
  
Wholesale/CPG	
  (12%)	
  
Insurance	
  (11%)	
  
Retail	
  (7%)	
  
Media	
  &	
  Entertainment	
  (7%)	
  
Healthcare	
  &	
  Life	
  Sciences	
  (7%)	
  
Electronics	
  (5%)	
  	
  
AutomoDve	
  (3%)	
  

84%	
  of	
  total	
  
opportunity	
  

36%	
  

Source:	
  IBM	
  Market	
  Analysis	
  (GMV)	
  
© 2012 IBM Corporation

Internal Use Only

©	
  2013	
  IBM	
  Corpora/on

14

	
  
Smarter	
  Commerce	
  For	
  Partners	
  

Opportunity	
  in	
  the	
  Market	
  

Partner	
  Program	
  Rewards	
  

•  $20B	
  Sonware	
  opportunity,	
  
•  3x	
  that	
  in	
  Services	
  and	
  
Systems	
  

•  Smarter	
  Commerce	
  Capability	
  
•  0%	
  Financing	
  
•  2X	
  SVI	
  for	
  WebSphere	
  
Commerce	
  

Joint	
  Go	
  To	
  Market	
  	
  

•  Sales	
  Account	
  Planning	
  	
  
•  SoluDon	
  Development	
  
IniDaDve	
  

15

15	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Soaware	
  Value	
  Plus	
  Smarter	
  Commerce	
  Authoriza/on	
  

$20B	
  Market	
  
Opportunity1	
  
Requirements	
  

Benefits	
  

Smarter	
  Commerce	
  Skills	
  
SoluDon	
  Spanning	
  across	
  2+	
  Phases	
  

Great	
  SoluDon	
  Visibility	
  

References	
  

16	
  

Financial	
  IncenDve:	
  20%	
  to	
  30%	
  	
  	
  

Smarter	
  Commerce	
  Mark	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Promote repeatable LOB solutions to customers
B2B Business Integration

Scalable Solutions in the
Smarter Commerce Initiative

Enable secure, seamless execution of multienterprise business processes with 100% of
the customer's business community

Offer a smarter shopping experience which
personalizes shoppers' interactions,

ü Focus on Line of Business buyers
ü Sold in a standalone way with limited
customization
ü Entry point for cross-sell and up-sell

Personalized Shopping
Experience

Cross Channel Campaign
Management
Deliver precision-driven coordinated
cross-channel personalized marketing
campaigns

Secure File Transfer &
Compliance
Move critical information both inside and outside
of the client's organization.

Digital Marketing Optimization
Empower marketers to turn site visitors into repeat
customers and loyal advocates

©	
  2013	
  IBM	
  Corpora/on

	
  
Agenda	
  
Overview:	
  
Smarter	
  Commerce	
  intro	
  and	
  overview	
  
What	
  Smarter	
  Commerce	
  can	
  mean	
  to	
  
you	
  and	
  your	
  partners	
  
How	
  and	
  where	
  to	
  start	
  with	
  your	
  
Smarter	
  Commerce	
  journey	
  
The	
  key	
  contacts	
  for	
  Smarter	
  
Commerce	
  
The	
  next	
  steps	
  for	
  you	
  as	
  a	
  partner	
  for	
  
Smarter	
  Commerce	
  	
  

18	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Engaged	
  companies	
  create	
  systems	
  of	
  saDsfacDon	
  
with	
  customers,	
  partners	
  and	
  suppliers	
  
Understand	
  

Engage	
  

Understand	
  your	
  
customers,	
  needs	
  
desires	
  and	
  context	
  

Engage	
  in	
  real-­‐Dme	
  with	
  
your	
  customers	
  partners	
  
and	
  suppliers	
  

Make	
  it	
  personal.	
  

Maximize	
  the	
  moment.	
  

Connect	
  
Connect	
  with	
  your	
  
customers	
  and	
  your	
  
value	
  chain	
  
SaBsfy	
  at	
  the	
  speed	
  of	
  life.	
  
©	
  2013	
  IBM	
  Corpora/on

	
  
Begin	
  with	
  these	
  ques/ons	
  for	
  your	
  Smarter	
  
Commerce	
  journey	
  
Does	
  your	
  
business	
  model	
  
adapt	
  to	
  capitalize	
  
on	
  new	
  market	
  
opportuni/es?	
  	
  

Can	
  your	
  
opera/ons	
  
an/cipate	
  and	
  
adjust	
  dynamically	
  
to	
  market	
  
condi/ons?	
  
20	
  

Are	
  you	
  
leveraging	
  
customer	
  insight	
  
to	
  reshape	
  your	
  
business?	
  

Could	
  your	
  supply	
  
chain	
  interrupt	
  
service	
  to	
  your	
  
customers?	
  

Do	
  you	
  deliver	
  
excep/onal	
  customer	
  
experience	
  across	
  all	
  
touch	
  points?	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Gedng	
  started	
  and	
  accelera/ng	
  your	
  Smarter	
  Commerce	
  journey	
  

Has	
  your	
  
business	
  
model	
  
changed?	
  

Is	
  customer	
  
informaDon	
  
driving	
  your	
  
business?	
  

Are	
  customer	
  
needs	
  aligned	
  
to	
  the	
  business	
  
operaDons?	
  

How	
  
compelling	
  is	
  
your	
  customer	
  
experience?	
  

Can	
  you	
  
respond	
  to	
  
changes	
  in	
  the	
  
market	
  or	
  
demand?	
  

Get	
  started	
  on	
  your	
  Smarter	
  Commerce	
  journey	
  
21	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Bringing	
  it	
  all	
  together	
  …	
  
	
  

§  Excess	
  inventory	
  influences	
  markeBng	
  
campaigns	
  and	
  mark-­‐down	
  pricing	
  
§  Campaign	
  results	
  impact	
  inventory	
  plans	
  

Buy	
  

§  Good	
  markeBng	
  is	
  service	
  
§  Service	
  feedback	
  drives	
  beJer	
  
markeBng	
  

§  MarkeBng	
  displays	
  relevant	
  ads	
  
§  eCommerce	
  provides	
  markeBng	
  
with	
  real-­‐Bme	
  shopping	
  behavior	
  

Market	
  

§  Consumer	
  demand	
  shapes	
  decisions	
  on	
  
supplier	
  sourcing,	
  inventory	
  
§  	
  Inventory	
  and	
  logisBcs	
  drive	
  fulfillment	
  

22	
  

Sell	
  

Service	
  

§  Good	
  service	
  drives	
  cross,	
  up-­‐sell	
  and	
  
repeat	
  sales	
  
§  	
  Service	
  opBons	
  offered	
  to	
  customers	
  
during	
  the	
  selling	
  process	
  
©	
  2013	
  IBM	
  Corpora/on

	
  
Agenda	
  
Overview:	
  
Smarter	
  Commerce	
  intro	
  and	
  overview	
  
What	
  Smarter	
  Commerce	
  can	
  mean	
  to	
  
you	
  and	
  your	
  partners	
  
How	
  and	
  where	
  to	
  start	
  with	
  your	
  
Smarter	
  Commerce	
  journey	
  
The	
  key	
  contacts	
  for	
  Smarter	
  
Commerce	
  
The	
  next	
  steps	
  for	
  you	
  as	
  a	
  partner	
  for	
  
Smarter	
  Commerce	
  	
  

23	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Smarter Commerce Reaching New Buyers
New Buyers

Chief Procurement
Officer (CPO)

Chief Marketing
Officer (CMO)

Integrated Solutions

Buy

Service
VP of
Customer
Service

VP of
Commerce,
VP of Sales

Market

Sell

LOB Value Proposition
•  Every Top 10 Global Bank
•  11 of 15 top Internet Retailers
•  4 of the top 5 Global Telecos
•  2K+ of the world’s top brands
•  Power >$27B of Internet
Retailer sales – 2x our nearest
competitor
•  Save companies $245B in
spend annually
•  Manage $57B in annual
procurement spend
•  <2500 clients WW depend on
IBM Marketing solutions

$ 133B Total market opportunity in 2015
12% CAGR through 2015 across all industries and geographies
18% CAGR through 2015 for integrated commerce solutions
©	
  2013	
  IBM	
  Corpora/on

	
  
Reaching	
  new	
  buyers:	
  	
  Chief	
  Procurement	
  Officers	
  
CPOs have identified their top procurement
challenges:
•  Global growth and sustainable savings
•  Manage risk and compliance
•  Identify volatility and maximize
predictability
•  Deliver a globally integrated supply
chain
•  Maximize sourcing and fulfillment
flexibility
To achieve these
objectives, a
combination of best
practices and the
right technology is
required.

CPOs are expected to invest
30% more per year in Supplier
Intelligence through 2015

50%

5%-7%

$6.1 billion

18%

Average percent of product
value derived from
suppliers

Amount of savings CPOs
are looking to achieve
annually

Market for procurement
technologies in 2012

Growth of procurement
spend analytics market
©	
  2013	
  IBM	
  Corpora/on

	
  
Reaching	
  new	
  buyers:	
  	
  Chief	
  Marke/ng	
  Officers	
  
	
  
CMOs believe marketing will be
most impacted by:
•  Data Explosion
•  Social Media
•  Growth of Channel and Device
Choices
•  Shifting Consumer
Demographics
Yet, they are least prepared for
these same factors.

Projects that by 2017 the CMO
will spend more on information
technology than the CIO

$1.5 trillion

7-8%

Amount spent on marketing
and communications in 2011

Growth of marketing budgets in
next 12 months, 2-3X that of IT
budgets

$148 billion
IT-related spend owned /
influenced by CMOs in 2012

60%
Growth of spend on
marketing analytics in next
three years
©	
  2013	
  IBM	
  Corpora/on

	
  
Reaching	
  new	
  buyers:	
  	
  VP	
  of	
  Merchandising	
  
	
  

Key retail trends are creating new challenges
for Merchandising leaders:
•  Mobile commerce and price transparency
•  Rise in localization and personalization
•  New pricing models (e.g. flash sales)
•  New sources of competition and
increased aggressiveness from existing
competition
•  Increased price sensitivity of consumers
•  Increased promotional intensity of
competitors
•  Price consistency across channels
Price, promotion and product mix optimization are key to success
in the face of these challenges

Merchandising	
  OpDmizaDon	
  Drives	
  Significant	
  Value	
  to	
  the	
  Retail	
  Industry	
  
Increase	
  revenue	
  	
  	
  

Increase	
  gross	
  margin	
  $	
  	
  

Base	
  price	
  op/miza/on	
  

1-­‐3%	
  

2-­‐5%	
  

Promo/on	
  op/miza/on	
  

1-­‐12%	
  

5-­‐20%	
  

Markdown	
  op/miza/on	
  

5+%	
  

10+%	
  

Assortment	
  op/miza/on	
  

1-­‐4%	
  

2-­‐4%	
  
©	
  2013	
  IBM	
  Corpora/on

	
  
Reaching	
  new	
  buyers:	
  	
  SVP	
  Sales,	
  eCommerce,	
  Channels	
  	
  
	
  
SVP eCommerce/Sales/Channels have
identified their top selling challenges:
•  Global revenue growth
•  Drive seamless and personalized
experience
•  Orchestrate the orders for products
and services through fulfillment
seamlessly

To achieve these
objectives, a
combination of best
practices and the
right technology
platform is required.

12%

$559 B

Online retail growth in the
US and Europe

Customer-facing front-end B2B
eCommerce expected to reach
in US sales by the end of 2013

E-Commerce tied for 2nd among CEO’s
most important 5 year technology
enabled Investments

$327 B
US Consumers will spend
online in 2016 up 45%
from $226 B in 2012

50% +
Of companies plan to replatform in the next 24
months
©	
  2013	
  IBM	
  Corpora/on

	
  
Reaching	
  new	
  buyers:	
  	
  SVP	
  Customer	
  Service,	
  Loyalty,	
  and	
  
Customer	
  Experience	
  
SVP Customer Service/Loyalty and Experience
have identified their top challenges:
•  Leverage insights to anticipate customer
behavior and deliver next best action
•  Enable customer self service
•  Run the right analytics to generate ideas
of when and how to best serve the
customer
To achieve these objectives, a combination
of best practices and the right technology
platform is required.

Social software to exceed $1B
by 2013, encompassing ~8% of
all CRM spending in 2012

26%

$83B

Of companies have a welldeveloped strategy in place
for improving customer
experience

Lost due to poor customer
experiences because of
defections and abandoned
purchases

67%
On average those current
customers of yours spend
67% more than a new one

47%
Of US contact centers reward
their agents based on
customer satisfaction ratings
©	
  2013	
  IBM	
  Corpora/on

	
  
Agenda	
  
Overview:	
  
Smarter	
  Commerce	
  intro	
  and	
  overview	
  
What	
  Smarter	
  Commerce	
  can	
  mean	
  to	
  
you	
  and	
  your	
  partners	
  
How	
  and	
  where	
  to	
  start	
  with	
  your	
  
Smarter	
  Commerce	
  journey	
  
The	
  key	
  contacts	
  for	
  Smarter	
  
Commerce	
  
The	
  next	
  steps	
  for	
  you	
  as	
  a	
  partner	
  for	
  
Smarter	
  Commerce	
  	
  

30	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Call	
  to	
  AcDon	
  
OpDmize	
  the	
  Sales	
  Opportunity	
  	
  	
  
§ Build	
  Industry	
  Skills	
  	
  	
  	
  

–  Leverage	
  IBMs	
  Industry	
  Frameworks	
  and	
  educaDon	
  
–  Extend	
  network	
  to	
  Line	
  of	
  Business	
  leaders	
  	
  

§ Team	
  with	
  Eco	
  D	
  Smarter	
  Commerce	
  &	
  IBM	
  Sales	
  Teams	
  

–  Joint	
  Account	
  Planning	
  to	
  determine	
  the	
  starDng	
  point	
  
–  Align	
  complimentary	
  value	
  props	
  of	
  your	
  SME	
  and	
  IBM’s	
  SME	
  
–  Create	
  business	
  plan,	
  and	
  sales	
  opportuniDes	
  for	
  your	
  soluDons	
  along	
  with	
  IBM	
  

§ Extending	
  your	
  sales	
  opportuniDes	
  with	
  products	
  and	
  
soluDons	
  	
  
–  Combining	
  soluDons	
  and	
  sonware	
  
–  Bring	
  in	
  Hardware	
  and	
  services	
  
–  Flexible	
  structure,	
  pricing	
  (on	
  premise,	
  Saas	
  etc)	
  

31	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Thank You for Listening
IBM Mentor ME Virtual Mentoring Event – sign up and benefit
from a 30 minute Personal Mentoring Session with Ben
Heyerdahl!
Register your slot here: http://bit.ly/benmentor

32	
  

©	
  2013	
  IBM	
  Corpora/on

	
  
Partner	
  with	
  IBM	
  for	
  Smarter	
  Commerce	
  
§  Industry	
  leading	
  por^olio	
  for	
  Buy,	
  Market,	
  Sell	
  and	
  Service	
  	
  
§  Flexible,	
  modular,	
  open,	
  integrated,	
  op/mized	
  
§  Real-­‐/me	
  social,	
  mobile	
  and	
  analy/cs	
  capabili/es	
  
integrated	
  throughout	
  the	
  solu/ons	
  	
  
§  Dedicated	
  commerce	
  consul/ng	
  and	
  systems	
  integra/on	
  
prac/ce	
  with	
  over	
  a	
  thousand	
  experts	
  
§  Innova/on	
  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	
  execu/on	
  

33	
  

©	
  2013	
  IBM	
  Corpora/on

	
  

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Smarter commerce partner presentation final

  • 1. Smarter Commerce: Moments matter. ©  2013  IBM  Corpora/on  
  • 2. Agenda   Overview:   Smarter  Commerce  intro  and  overview   What  Smarter  Commerce  can  mean  to   you  and  your  partners   How  and  where  to  start  with  your   Smarter  Commerce  journey   The  key  contacts  for  Smarter   Commerce   The  next  steps  for  you  as  a  partner  for   Smarter  Commerce     2   ©  2013  IBM  Corpora/on  
  • 3. 3 3   ©  2013  IBM  Corpora/on  
  • 4. Businesses  face  new  challenges  every  day     60%   of  B2B  customer   buying  decisions   completed  before   engaging  your   sales  teams   69%   of  B2B  companies   ignore  customers   who  provide   feedback  via  social   media   4   57%   of  business  buyers   have  purchases   goods  for  their   companies  online   and  37%  expect  to   do  more  in  2014   32%   of  B2B  customers   create  social  media   content,  which   includes  raDngs,   reviews,  blogs  and   tweets   Sources:    IBM,    Harvard  Business  Review,  Acquity  Group,  Gartner,  Forrester  Satmetrix   9out10   CXOs  said  they   plan  to  collaborate   much  more   extensively  with   their  customers   over  next  3-­‐5  years   50%   of  B2B   collaboraDon  will   take  place  through   Web  APIs  by  2016   ©  2013  IBM  Corpora/on  
  • 5. Mobile  and  social  are  reshaping  business       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   5   Sources:    IBM,    Forrester,  Tealeaf  and  Emphathica  Reports   34%   of  smartphone   users  have  scanned   a  QR  Code,  27%   have  read  online   reviews   92%   of  consumers  say     they  trust  earned   media,  such  as     word-­‐of-­‐mouth  and   recommendaDons   55%   increase  in     online  sales  via   mobile  devices   over  2012   84%   of  US  adults  who   have  conducted  a   transacDon  online  or   through  a  mobile   device  report   experiencing  a   problem   ©  2013  IBM  Corpora/on  
  • 6. Delivering  superior  customer  engagement  every   /me,  in  every  context   A  supply  chain   prepared     for  the  unpredictable   Service  that  knows     what  customers  want   before  they  do   6   MarkeDng  targeted  to   every  customer   personally   Selling  that’s  there  for   your  customers,   wherever  they  are   ©  2013  IBM  Corpora/on  
  • 7. Successful  companies  embracing  this  strategy     Improved procurement and defined new rules with eAuctions Fixed customer experience problems and increased conversions 7   Delivered personalized interactions which led to new business Leveraged social programs to drive sales and ongoing engagement ©  2013  IBM  Corpora/on  
  • 8. Smarter  Commerce  sa/sfies  customers  at  the   speed  of  life   Buy   Adap/ve   procurement   and  op/mized   supply  chain     Targeted  and   personalized   marke/ng   across  all   channels   Service   Sell   An/cipate   behavior  and   deliver  flawless   customer  service   8   Market Seamless   cross-­‐channel   customer   experience         ©  2013  IBM  Corpora/on  
  • 9. Our  solu/ons  are  infused  with  mobile,  social,  analy/cs  and  cloud   capabili/es     9   ©  2013  IBM  Corpora/on  
  • 10. IBM’s  integrated  por^olio  for  Smarter  Commerce   Smarter  Commerce  Services   Core  Business  Solu/ons  and  Processes   BUY   MARKET   SELL   SERVICE   Adap/ve   procurement  and   op/mized  supply   chain   Targeted  and   personalized   marke/ng  across    all  channels     Seamless     cross-­‐channel   customer   experience     An/cipate   behavior  and   deliver  flawless   customer  service           Business  AnalyDcs   IBM  SmartCloud  SoluDons,  CompuDng  and  Infrastructure     10   ©  2013  IBM  Corpora/on  
  • 11. We  have  invested  in  leading  capabili/es  to  transform  your  business   LEADER  in  File  Transfer     Buy • Sell   LEADER  in  Procurement     Buy   LEADER  in  B2B  and  Order   Management      Buy  •  Sell   LEADER  in  Customer   LEADER  in  Mobile  Messaging     Market  •  Sell   LEADER  in  Merchandising     Market  •  Sell   LEADER  in  Campaign  Management     Market   Experience  Management       Market  •  Sell  •  Service     11 LEADER  in  Digital  MarkeDng   Market   ©  2013  IBM  Corpora/on  
  • 12. Agenda   Overview:   Smarter  Commerce  intro  and  overview   What  Smarter  Commerce  can  mean  to   you  and  your  partners   How  and  where  to  start  with  your   Smarter  Commerce  journey   The  key  contacts  for  Smarter   Commerce   The  next  steps  for  you  as  a  partner  for   Smarter  Commerce     12   ©  2013  IBM  Corpora/on  
  • 13. IBM’s  Integrated  Por^olio  for  Smarter  Commerce   Customer  &  Digital   Strategy   |   IBM     InteracDve   BUY   AdapDve  procurement  and   opDmized  supply  chain   §  Procurement  OperaDons  &   Accounts  Payable  **   §  Enterprise  and  Category   Spend  Management**   §  Source  to  Contract   §  Supplier  IntegraDon  and   CollaboraDon     §  Supplier  Management  Risk   and  Compliance   §  Supply  Chain  Management   Smarter  Commerce  Services   |   Customer   Plaeorms   |   Smarter   AnalyDcs   |   Managed   Services/BPO     Core  Business  SoluDons  and  Processes   Market   Targeted  and  personalized   markeDng  across  channels   §  Cross-­‐Channel  MarkeDng   OpDmizaDon   §  Customer  Experience   Management   §  Digital  MarkeDng   OpDmizaDon   §  MarkeDng  Performance   OpDmizaDon   §  Pricing,  PromoDon  and   Product  Mix  OpDmizaDon     Sell   Seamless  cross-­‐channel   customer  experience   §  Contract  Management**   §  Customer  IntegraDon  and   CollaboraDon   §  Omni-­‐Channel  Commerce   §  Payments  and  Sealements     |   ApplicaDon   Management   Service   AnDcipate  behavior  and   deliver  flawless  customer   service   §  Case  Management   §  Customer  Self-­‐Service     §  Delivery,  Service,  and  Support   §  Online  Customer  Service   OpDmizaDon     §  Watson  Engagement  Advisor   B2B  IntegraDon   Social  Business            I            Mobile  Enterprise          I        Big  Data  &  AnalyDcs              I            Cloud   Smarter  CompuDng  Infrastructure   **Currently  In  Smarter  Commerce  DefiniDon  Process     ©  2013  IBM  Corpora/on  
  • 14. The  Market  Opportunity  –  WW   •  The  opportunity:  $104B  in  2013,  growing  at  14%,  more  than  three  Dmes  the  IT  CAGR.   •  The  opportunity  for  integrated  commerce  soluDons  is  growing  even  faster  –  30%  CAGR   •  $20B  Global  Sonware  opportunity,  and  3x  that  in  Services  and  Systems.   Client  Size   >1000      =      61%   100  –  999  =  19%   1  –  99    =    15%   Non  Business  =    4%   Buy   27%   Market   12%   Sell   25%   Service   •  •  •  •  •  •  •  •  •  Banking  (20%)   TelecommunicaDons  (12%)   Wholesale/CPG  (12%)   Insurance  (11%)   Retail  (7%)   Media  &  Entertainment  (7%)   Healthcare  &  Life  Sciences  (7%)   Electronics  (5%)     AutomoDve  (3%)   84%  of  total   opportunity   36%   Source:  IBM  Market  Analysis  (GMV)   © 2012 IBM Corporation Internal Use Only ©  2013  IBM  Corpora/on 14  
  • 15. Smarter  Commerce  For  Partners   Opportunity  in  the  Market   Partner  Program  Rewards   •  $20B  Sonware  opportunity,   •  3x  that  in  Services  and   Systems   •  Smarter  Commerce  Capability   •  0%  Financing   •  2X  SVI  for  WebSphere   Commerce   Joint  Go  To  Market     •  Sales  Account  Planning     •  SoluDon  Development   IniDaDve   15 15   ©  2013  IBM  Corpora/on  
  • 16. Soaware  Value  Plus  Smarter  Commerce  Authoriza/on   $20B  Market   Opportunity1   Requirements   Benefits   Smarter  Commerce  Skills   SoluDon  Spanning  across  2+  Phases   Great  SoluDon  Visibility   References   16   Financial  IncenDve:  20%  to  30%       Smarter  Commerce  Mark   ©  2013  IBM  Corpora/on  
  • 17. Promote repeatable LOB solutions to customers B2B Business Integration Scalable Solutions in the Smarter Commerce Initiative Enable secure, seamless execution of multienterprise business processes with 100% of the customer's business community Offer a smarter shopping experience which personalizes shoppers' interactions, ü Focus on Line of Business buyers ü Sold in a standalone way with limited customization ü Entry point for cross-sell and up-sell Personalized Shopping Experience Cross Channel Campaign Management Deliver precision-driven coordinated cross-channel personalized marketing campaigns Secure File Transfer & Compliance Move critical information both inside and outside of the client's organization. Digital Marketing Optimization Empower marketers to turn site visitors into repeat customers and loyal advocates ©  2013  IBM  Corpora/on  
  • 18. Agenda   Overview:   Smarter  Commerce  intro  and  overview   What  Smarter  Commerce  can  mean  to   you  and  your  partners   How  and  where  to  start  with  your   Smarter  Commerce  journey   The  key  contacts  for  Smarter   Commerce   The  next  steps  for  you  as  a  partner  for   Smarter  Commerce     18   ©  2013  IBM  Corpora/on  
  • 19. Engaged  companies  create  systems  of  saDsfacDon   with  customers,  partners  and  suppliers   Understand   Engage   Understand  your   customers,  needs   desires  and  context   Engage  in  real-­‐Dme  with   your  customers  partners   and  suppliers   Make  it  personal.   Maximize  the  moment.   Connect   Connect  with  your   customers  and  your   value  chain   SaBsfy  at  the  speed  of  life.   ©  2013  IBM  Corpora/on  
  • 20. Begin  with  these  ques/ons  for  your  Smarter   Commerce  journey   Does  your   business  model   adapt  to  capitalize   on  new  market   opportuni/es?     Can  your   opera/ons   an/cipate  and   adjust  dynamically   to  market   condi/ons?   20   Are  you   leveraging   customer  insight   to  reshape  your   business?   Could  your  supply   chain  interrupt   service  to  your   customers?   Do  you  deliver   excep/onal  customer   experience  across  all   touch  points?   ©  2013  IBM  Corpora/on  
  • 21. Gedng  started  and  accelera/ng  your  Smarter  Commerce  journey   Has  your   business   model   changed?   Is  customer   informaDon   driving  your   business?   Are  customer   needs  aligned   to  the  business   operaDons?   How   compelling  is   your  customer   experience?   Can  you   respond  to   changes  in  the   market  or   demand?   Get  started  on  your  Smarter  Commerce  journey   21   ©  2013  IBM  Corpora/on  
  • 22. Bringing  it  all  together  …     §  Excess  inventory  influences  markeBng   campaigns  and  mark-­‐down  pricing   §  Campaign  results  impact  inventory  plans   Buy   §  Good  markeBng  is  service   §  Service  feedback  drives  beJer   markeBng   §  MarkeBng  displays  relevant  ads   §  eCommerce  provides  markeBng   with  real-­‐Bme  shopping  behavior   Market   §  Consumer  demand  shapes  decisions  on   supplier  sourcing,  inventory   §   Inventory  and  logisBcs  drive  fulfillment   22   Sell   Service   §  Good  service  drives  cross,  up-­‐sell  and   repeat  sales   §   Service  opBons  offered  to  customers   during  the  selling  process   ©  2013  IBM  Corpora/on  
  • 23. Agenda   Overview:   Smarter  Commerce  intro  and  overview   What  Smarter  Commerce  can  mean  to   you  and  your  partners   How  and  where  to  start  with  your   Smarter  Commerce  journey   The  key  contacts  for  Smarter   Commerce   The  next  steps  for  you  as  a  partner  for   Smarter  Commerce     23   ©  2013  IBM  Corpora/on  
  • 24. Smarter Commerce Reaching New Buyers New Buyers Chief Procurement Officer (CPO) Chief Marketing Officer (CMO) Integrated Solutions Buy Service VP of Customer Service VP of Commerce, VP of Sales Market Sell LOB Value Proposition •  Every Top 10 Global Bank •  11 of 15 top Internet Retailers •  4 of the top 5 Global Telecos •  2K+ of the world’s top brands •  Power >$27B of Internet Retailer sales – 2x our nearest competitor •  Save companies $245B in spend annually •  Manage $57B in annual procurement spend •  <2500 clients WW depend on IBM Marketing solutions $ 133B Total market opportunity in 2015 12% CAGR through 2015 across all industries and geographies 18% CAGR through 2015 for integrated commerce solutions ©  2013  IBM  Corpora/on  
  • 25. Reaching  new  buyers:    Chief  Procurement  Officers   CPOs have identified their top procurement challenges: •  Global growth and sustainable savings •  Manage risk and compliance •  Identify volatility and maximize predictability •  Deliver a globally integrated supply chain •  Maximize sourcing and fulfillment flexibility To achieve these objectives, a combination of best practices and the right technology is required. CPOs are expected to invest 30% more per year in Supplier Intelligence through 2015 50% 5%-7% $6.1 billion 18% Average percent of product value derived from suppliers Amount of savings CPOs are looking to achieve annually Market for procurement technologies in 2012 Growth of procurement spend analytics market ©  2013  IBM  Corpora/on  
  • 26. Reaching  new  buyers:    Chief  Marke/ng  Officers     CMOs believe marketing will be most impacted by: •  Data Explosion •  Social Media •  Growth of Channel and Device Choices •  Shifting Consumer Demographics Yet, they are least prepared for these same factors. Projects that by 2017 the CMO will spend more on information technology than the CIO $1.5 trillion 7-8% Amount spent on marketing and communications in 2011 Growth of marketing budgets in next 12 months, 2-3X that of IT budgets $148 billion IT-related spend owned / influenced by CMOs in 2012 60% Growth of spend on marketing analytics in next three years ©  2013  IBM  Corpora/on  
  • 27. Reaching  new  buyers:    VP  of  Merchandising     Key retail trends are creating new challenges for Merchandising leaders: •  Mobile commerce and price transparency •  Rise in localization and personalization •  New pricing models (e.g. flash sales) •  New sources of competition and increased aggressiveness from existing competition •  Increased price sensitivity of consumers •  Increased promotional intensity of competitors •  Price consistency across channels Price, promotion and product mix optimization are key to success in the face of these challenges Merchandising  OpDmizaDon  Drives  Significant  Value  to  the  Retail  Industry   Increase  revenue       Increase  gross  margin  $     Base  price  op/miza/on   1-­‐3%   2-­‐5%   Promo/on  op/miza/on   1-­‐12%   5-­‐20%   Markdown  op/miza/on   5+%   10+%   Assortment  op/miza/on   1-­‐4%   2-­‐4%   ©  2013  IBM  Corpora/on  
  • 28. Reaching  new  buyers:    SVP  Sales,  eCommerce,  Channels       SVP eCommerce/Sales/Channels have identified their top selling challenges: •  Global revenue growth •  Drive seamless and personalized experience •  Orchestrate the orders for products and services through fulfillment seamlessly To achieve these objectives, a combination of best practices and the right technology platform is required. 12% $559 B Online retail growth in the US and Europe Customer-facing front-end B2B eCommerce expected to reach in US sales by the end of 2013 E-Commerce tied for 2nd among CEO’s most important 5 year technology enabled Investments $327 B US Consumers will spend online in 2016 up 45% from $226 B in 2012 50% + Of companies plan to replatform in the next 24 months ©  2013  IBM  Corpora/on  
  • 29. Reaching  new  buyers:    SVP  Customer  Service,  Loyalty,  and   Customer  Experience   SVP Customer Service/Loyalty and Experience have identified their top challenges: •  Leverage insights to anticipate customer behavior and deliver next best action •  Enable customer self service •  Run the right analytics to generate ideas of when and how to best serve the customer To achieve these objectives, a combination of best practices and the right technology platform is required. Social software to exceed $1B by 2013, encompassing ~8% of all CRM spending in 2012 26% $83B Of companies have a welldeveloped strategy in place for improving customer experience Lost due to poor customer experiences because of defections and abandoned purchases 67% On average those current customers of yours spend 67% more than a new one 47% Of US contact centers reward their agents based on customer satisfaction ratings ©  2013  IBM  Corpora/on  
  • 30. Agenda   Overview:   Smarter  Commerce  intro  and  overview   What  Smarter  Commerce  can  mean  to   you  and  your  partners   How  and  where  to  start  with  your   Smarter  Commerce  journey   The  key  contacts  for  Smarter   Commerce   The  next  steps  for  you  as  a  partner  for   Smarter  Commerce     30   ©  2013  IBM  Corpora/on  
  • 31. Call  to  AcDon   OpDmize  the  Sales  Opportunity       § Build  Industry  Skills         –  Leverage  IBMs  Industry  Frameworks  and  educaDon   –  Extend  network  to  Line  of  Business  leaders     § Team  with  Eco  D  Smarter  Commerce  &  IBM  Sales  Teams   –  Joint  Account  Planning  to  determine  the  starDng  point   –  Align  complimentary  value  props  of  your  SME  and  IBM’s  SME   –  Create  business  plan,  and  sales  opportuniDes  for  your  soluDons  along  with  IBM   § Extending  your  sales  opportuniDes  with  products  and   soluDons     –  Combining  soluDons  and  sonware   –  Bring  in  Hardware  and  services   –  Flexible  structure,  pricing  (on  premise,  Saas  etc)   31   ©  2013  IBM  Corpora/on  
  • 32. Thank You for Listening IBM Mentor ME Virtual Mentoring Event – sign up and benefit from a 30 minute Personal Mentoring Session with Ben Heyerdahl! Register your slot here: http://bit.ly/benmentor 32   ©  2013  IBM  Corpora/on  
  • 33. Partner  with  IBM  for  Smarter  Commerce   §  Industry  leading  por^olio  for  Buy,  Market,  Sell  and  Service     §  Flexible,  modular,  open,  integrated,  op/mized   §  Real-­‐/me  social,  mobile  and  analy/cs  capabili/es   integrated  throughout  the  solu/ons     §  Dedicated  commerce  consul/ng  and  systems  integra/on   prac/ce  with  over  a  thousand  experts   §  Innova/on  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  execu/on   33   ©  2013  IBM  Corpora/on