A strategic assessment of the IBM Smarter Commerce solution space. The presentation is created as an academic dissertation based on the study of Smarter Commerce Solutions industry by the author.

1. SMARTER COMMERCE
Integrated Value Chain Solutions
in the Age of the Customer
Madhuranath R

2. OVERVIEW
COMPANY PROFILE STRATEGIC ANALYSIS
About IBM PEST Analysis
5-Forces Analysis
V-M-V of IBM
Strategic Maps
Smarter Commerce Industry Success Factors
Target Market Competency Matrix
Value Proposition Triangle Model
FUTURE GROWTH STAR FRAMEWORK
Potential Market Visual Representation
Strategic Maps Framework Description
Competency Matrix Framework Explained

3. COMPANY
PROFILE

4. About IBM
History Business Rankings
Founded in 1911 as CTR Technology Solutions Forbes Global #31,revenue
Renamed in 1924 as IBM Business Consulting Fortune #1, leadership
Operates in 170 countries IT Services & Others Fortune #5, most admired
Leadership Brand Equity Financials
Virginia Rometty – CEO Market Cap - $227 Billion $107 Billion – Revenue
Sam Palmisano - Chairman Global #2 Best Brand $16.3 Billion – Net Income
14 Board of Directors Global #1 Green Company $18.5 Billion – Returns

5. VISION
Solutions for a small planet
MISSION
At IBM, we strive to lead in the invention, development and manufacture of
the industry's most advanced information technologies, including computer
systems, software, storage systems and microelectronics.
We translate these advanced technologies into value for our customers
through our professional solutions, services & consulting businesses worldwide
VALUES
Dedication to every client’s success
Innovation that matters – for our company and the world
Trust and personal responsibility in all relationships

6. About SMARTER COMMERCE
IBM’s Enterprise Marketing Management division leads Smarter Commerce
Integrated lifecycle approach to Commerce for total customer-centricity
Improves how firms connect with marketers, suppliers, partners, customers,
web sites and even social networks
Delivers value via Customer Insight & Customer-centric Value Chain
Realignment throughout the lifecycle phases of Buy, Market, Sell, Service
Brings together IBM’s core technologies & product portfolio
TECHNOLOGIES PRODUCTS
Integration – Supply Chain Planning & Execution WebSphere, Sterling Commerce
Advanced Analytics Unica, Coremetrics
Cloud Computing Cognos
Social Networking IBM Collaboration Suite
Cross-Channel Commerce Sterling Commerce, iLog

7. TARGET MARKET
Smarter Commerce solutions are applicable to most industries like –
Banking & Insurance Government
Communications Healthcare
Energy Oil & Gas
Education Retail
Food Transportation Systems
But within a given industry Smarter Commerce targets specific businesses
E.g. Primary Target Market of Smarter Commerce for Retail comprises –
• B2B Retailers
• B2C Retailers
• Online Retailers

8. VALUE PROPOSITION

9. STRATEGIC
ANALYSIS

10. PEST ANALYSIS
POLITICAL ECONOMIC
• China is the manufacturing hub • Global Recession is driving
for half of all products in world down margins across industries
• Global political sentiment • Global Retail Supply Chain
against China is a potential risk inefficiencies waste $15 Trillion
SOCIAL TECHNOLOGICAL
• Increased consumers’ access to • Tech provides more ways for
information empowers them consumers to connect to retailer
• Current generation of consumer • Social networks have empowered
shares experiences and info consumers with an increased
quickly and with more people transparency & power of WOM

11. 5-FORCES ANALYSIS
Threat of
New 5-Forces Analysis
Entrant • New entrants cannot create
MEDIUM Smarter Commerce solutions
• Suppliers of solutions are
companies acquired by IBM
• Substitutes are only partial
solutions as of now
Bargaining Bargaining
Power of
Competitive
Power of
• Customers need novel
Customer Rivalry Suppliers solutions to maintain their
LOW competitiveness
LOW LOW
• Rivalry is non-existent as
Smarter Commerce is a new
segment introduced by IBM
Threat of Conclusion
Substitute Smarter Commerce
MEDIUM Industry is ATTRACTIVE

12. STRATEGIC MAP
SOLUTION CAPABILITY
4
HIGH
CONSUTING CAPABILITIES
IBM
2 SAP Oracle
Accenture
LOW
0
0 LOW RANGE OF1.5
SOLUTIONS HIGH 3
Conclusion: Offering a broader range of solutions is as important as providing
Smarter Commerce Consulting. BUT only offering both gives maximum market share.

13. STRATEGIC MAP
SOLUTION COMPATIBILITY
4
HIGH
IBM
PROPRIETARY SOLUTIONS
SAP
Oracle
2
Accenture
LOW
0
0 LOW INTEGRATED SOLUTIONS
1.5 HIGH 3
Conclusion: Ability to integrate proprietary with other solutions provides business
value as perceived by customer. Proprietary + Integrated Solutions is the name of game.

14. STRATEGIC MAP
BUSINESS MODEL
4
HIGH
IBM
I N N O VAT I O N
Oracle
2 SAP
Accenture
LOW
0
0 LOW P A R T N 1.5 S H I P S
ER HIGH 3
Conclusion: Building partnerships to serve more customers is as important as
constant innovation. These two factors contribute to strengthening of the business model

15. STRATEGIC MAP
BRAND EQUITY
4
HIGH
IBM
CUSTOMER SERVICE
SAP Oracle
2
Accenture
LOW
0
0 LOW 1.5
MARKETING HIGH 3
Conclusion: A strong customer service and excellent marketing are essential
business drivers in this segment . Having BOTH gives a greater market share.

16. INDUSTRY SUCCESS FACTORS
Smarter Commerce Consulting
Solution Capability
Integrated & Proprietary Solns
CRITICAL Partnerships & Outsourcing
SUCCESS Business Model
Continuous Innovation
FACTORS
Marketing & Advertising
Brand Equity
Customer Service Excellence
Application Development
IT Services
Maintenance Services
THRESHOLD Scalability
Performance
FACTORS Delivered Quality
Cost of Solution Deployment
Price
Cost of Consulting

17. COMPETENCY MATRIX
KEY SUCCESS FACTORS Weight IBM Oracle SAP Accenture Others
Solution Capabilities 50% 9.7 6.2 5.6 4.3
Smarter Commerce Consulting 20% 10 5 5 4
Proprietary Solutions 15% 10 7 8 2
Integration Capabilities 15% 9 7 4 7
Business Model 25% 9.6 7.0 4.2 2.0
Partnerships & Outsourcing 10% 9 7 3 2
Continuous Innovation 15% 10 7 5 2
Brand Equity 25% 10.0 6.0 4.4 4.0
Marketing & Advertising 15% 10 6 4 4
Customer Service Excellence 10% 10 6 5 4
Total Weight 100% 9.8 6.4 5.0 3.7
Market Share 100% 37% 20% 15% 10% 18%
Conclusion: Comprehensive Solution Capabilities, Innovative Business Model and
Brand Equity are the Key Success Factors to compete in Smarter Commerce Industry.

18. KSF MATRIX INTERPRETATION
• Smarter Commerce Consulting capability is the single most
important KSF in Smarter Commerce Solutions Industry
• Solution Capabilities + Marketing = 65% weightage
These two factors contribute to IBM’s market leadership
• Smarter Commerce brings together several technologies/
solutions and thus straddles several strategic groups
• Competitors of IBM Smarter Commerce offer partial solutions &
thus have low market shares corresponding to their segments

19. TRIANGLE FRAMEWORK
KSF Competencies
 Smarter Commerce  Analytics solutions like
Consulting Coremetrics & Unica
 Proprietary Solutions  WebSphere middleware
is an integration platform
 Integration Capabilities  Value Chain Integration
 Continuous Innovation Solutions with iLog &
Sterling Commerce
IBM Smarter Commerce provides analytics powered integrated solutions for
improving efficiencies and margins by delivering business outcomes
throughout the lifecycle phases of the commerce Value Chain
Smarter Commerce Consulting leverages analytics to help derive customer
insight to identify new revenue streams for customers
Value Proposition

20. FUTURE GROWTH
SMARTER COMMERCE – 2020

21. MARKET PROJECTIONS
• Smarter Commerce Solutions market will be worth $70 billion as
per the projections of IBM Enterprise Marketing Management
• IBM will be the leader with more than 50% market share
• Smarter Commerce spans business consulting, technology
solutions and IT services to give IBM 360° earnings potential
• IBM leverages partnerships with ISV or IBM Service Vendors to
service customers in the SME segment as well which increases
the brand equity and dominance of IBM in Smarter Commerce

22. STRATEGIC MAP
FIRST-MOVER ADVANTAGE
4
HIGH
IBM
CUSTOMIZED SOLUTIONS
2
Oracle
SAP
Accenture
LOW
0
0 LOW 1.5
IMPLEMENTATION EXPERIENCE HIGH 3
Conclusion: As a first-mover IBM gains unmatched implementation experience and
builds customized solutions which raises the entry barrier for potential competition.

23. STRATEGIC MAP
BUSINESS MODEL
4
HIGH
IBM
I N N O VAT I O N
2 Oracle
SAP
Accenture
LOW
0
0 LOW P A R T N 1.5 S H I P S
ER HIGH 3
Conclusion: Building partnerships to serve more customers is as important as
constant innovation. These two factors contribute to strengthening of the business model

24. STRATEGIC MAP
BRAND EQUITY
4
HIGH
IBM
CUSTOMER SERVICE
SAP Oracle
2
Accenture
LOW
0
0 LOW 1.5
MARKETING HIGH 3
Conclusion: A strong customer service is critical to succeed in this market along with
sound marketing. Having BOTH gives a greater market dominance.

25. INDUSTRY SUCCESS FACTORS
Implementation Implementation Experience
Experience Customized Solutions
CRITICAL Partnerships & Outsourcing
Business Model
SUCCESS Continuous Innovation
FACTORS
Brand Equity Marketing & Advertising
Customer Service Excellence
IT Services Application Development
Maintenance Services
THRESHOLD Performance Scalability
FACTORS Delivered Quality
Price Cost of Solution Deployment
Cost of Consulting

26. COMPETENCY MATRIX
KEY SUCCESS FACTORS Weight IBM Oracle SAP Accenture Others
Solution Capabilities 45% 9.7 2.9 2.6 2.3
Implementation Experience 25% 10 2 2 2
Customized Solutions 10% 10 4 3 2
Integration Capabilities 10% 9 3 3 3
Business Model 25% 9.6 4.0 3.6 2.0
Partnerships & Outsourcing 10% 9 4 3 2
Continuous Innovation 15% 10 4 4 2
Brand Equity 30% 10.0 5.6 4.4 4.0
Marketing & Advertising 20% 10 6 4 4
Customer Service Excellence 10% 10 5 5 4
Total Weight 100% 9.8 3.9 3.3 2.7
Market Share 100% 59% 15% 11% 7% 8%
Conclusion: Comprehensive Solution Capabilities, Implementation Experience
and Brand are the Key Success Factors to compete in Smarter Commerce Industry.

27. KSF MATRIX INTERPRETATION
• Proven Implementation Experience will be the most important
KSF in Smarter Commerce Solutions Industry by year 2020
• Solution Capabilities + Marketing = 75% weightage
These two factors contribute to IBM’s continued dominance
• Smarter Commerce will become an independent industry and
solution in its own right and new competitors will try to copy it
• Competitors from current partial solution segments will no
longer be relevant and will be left out of the market game

28. THANK
Y U