IBM Software Day 2013. Smarter commerce

2. Gerrit Bus
Sales Leader EMM & Commerce:
Middle East & Africa

5. It is not the strongest of the species that
survives, nor the most intelligent that
survives. It is the one that is the most
adaptable to change.
- Leon C. Megginson paraphrasing Darwin’s Origin of Species

6. Power has shifted to the customer – compressing margins and
changing paradigms
In this new era, businesses need to:
Understand and Adapt sourcing and Market, sell and Service customers
anticipate customer procurement based on flawlessly, predict
fulfill the right
and drive customer
behavior and needs customer demand and product and service loyalty
based on customer optimize supplier
at the right price,
insights across all interactions across
channels extended value chains time and place

7. At IBM we call the path forward: Smarter Commerce
It maximizes the insight generated It capitalizes on social and mobile
through customer interactions commerce
Smarter Commerce is a strategic
approach that places the customer at It synchronizes your entire value chain
the center of your business operations to deliver consistent and predictable
outcomes
It drives growth by enhancing, extending, and
redefining the value you provide Customer
It improves collaboration and visibility for
your customers & partners
It increases margins by boosting efficiency at
every stage of the commerce cycle

8. Smarter Commerce requires focus on three dimensions
Customer Engagement
“Multi-channel” has
evolved to “all
channels, all the time”
Customer Insight and Connectivity &
Intelligence Social Integration
Advocacy based on trust Integration and
is the new “loyalty” synchronization
to meet new value delivery
requirements
Customer Experience

9. Customer expectations are soaring
Expects you to know them as an individual
Desires simple, yet feature-rich self-service
capabilities
Expects a seamless and integrated
experience
Wants relevant, timely promotions through
social sites
Demands a flawless post-purchase
experience

10. A winning strategy starts with an integrated approach to commerce
Puts the customer Anticipates and Applies deep Optimizes Extends core
at deliver across insights to procurement systems to
the center mobile and social take action in based on demand synchronize
of your real time your value chain
commerce
processes

11. Leaders are redefining commerce around the customer
A supply chain Marketing targeted to
prepared every customer
for the unpredictable personally
Service that knows Selling that’s there for
what customers want your customers,
before they do wherever they are

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

13. Smarter Commerce integrates and enhances the commerce cycle
Visibility and order status adapt All customer
procurement interactions
and logistics are a market opportunity
Buy Market
Service Sell
Insight from all channels through Promotions, guided selling
analytics improves loyalty and precision marketing
drive sales

14. Procurement & Supply Chain
CPOs have identified their top procurement challenges:
• Global growth and sustainable savings
• Manage risk and compliance
• Identify volatility and maximize predictability
Buy • Deliver a globally integrated supply chain
• Maximize sourcing and fulfillment flexibility
Adaptive •Supply Chain Professionals:
procurement and • Intelligent Supply Chain Optimization
optimized supply • Supplier Optimization
chain
50% 5%-7% $6.1 billion 18%
Average percent of product Amount of savings CPOs Market for procurement Growth of procurement
value derived from suppliers are looking to achieve technologies in 2012 spend analytics market
annually

15. Marketing
CMOs believe marketing will be most impacted by:
• Data Explosion
• Social Media
• Growth of Channel and Device Choices
• Shifting Consumer Demographics
Market Yet, they are least prepared for these same factors.
Targeted and
personalized
marketing across all
channels
Projects that by 2017 the CMO will
spend more on information
technology than the CIO
$1.5 trillion 7-8% $148 billion 60%
Amount spent on marketing Growth of marketing budgets in IT-related spend owned / Growth of spend on
and communications in 2011 next 12 months, 2-3X that of IT influenced by CMOs in marketing analytics in next
budgets 2012 three years

16. B2B and B2C Commerce
SVP eCommerce/Sales/Channels have identified their top
selling challenges:
Sell • Global revenue growth
• Drive seamless and personalized experience
Seamless cross- • Orchestrate the orders for products and services
channel customer through fulfillment seamlessly
experience
To achieve these objectives, a combination of best
practices and the right technology platform is required.
E-Commerce tied for 2nd among CEO’s most
important 5 year technology enabled
Investments
12% $559 B $327 B 50% +
Online retail growth in the Customer-facing front-end B2B US Consumers will spend Of companies plan to re-
US and Europe eCommerce expected to reach online in 2016 up 45% platform in the next 24
in US sales by the end of 2013 from $226 B in 2012 months

17. Customer Service, Loyalty, and Customer Experience
SVP Customer Service/Loyalty and Experience have identified their
top challenges:
Service • Leverage insights to anticipate customer behavior and
deliver next best action
Anticipate behavior and • Enable customer self service
deliver flawless customer • Run the right analytics to generate ideas of when and how to
service 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 67% 47 %
Of companies have a well- Lost due to poor customer On average those current Of US contact centers
developed strategy in place experiences because of customers of yours spend reward their agents based
for improving customer defections and abandoned 67% more than a new one on customer satisfaction
experience purchases ratings

18. Leaders today are delivering exceptional customer experiences by
Placing the chief executive Maximizing
customer at the center insights Embracing social and
mobile
Personalizing marketing
Synchronizing the entire
value chain
Reducing costs and driving
efficiencies Delivering seamless experiences

19. Begin with these questions for your Smarter Commerce journey
Does your business Are you leveraging
model adapt to customer insight to
capitalize on new reshape your
market opportunities? business?
Can your operations
anticipate and adjust
Could your supply
dynamically to market
chain interrupt service
conditions? Do you deliver exceptional to your customers?
customer experience across all
touch points?

20. Seamless integration across its entire business for
Coca-Cola Bottling Co. Consolidated (CCBCC)
Challenge
 Manual searches and information delays were creating operational
bottlenecks and business inefficiencies
Solution
 IBM® Sterling B2B Integrator for end-to-end integration and improved
visibility across service management, spare parts procurement, and
equipment life cycle management
Results
 Integrator to SAP with minimal errors or issues
 Near real-time access to decision-critical information ensures timely
monitoring of performance against key Service Level Agreements
Flexible, secure connectivity, integration, and process automation Customer Profile
capable of spanning CCBCC systems and applications
 Information from over 100 trading partners moves through Sterling CCBCC makes, sells, and delivers carbonated and
noncarbonated beverages, primarily products of The
Coca-Cola Company to 11 states in the southeastern
United States.

21. CSX Transportation (CSX) improves customer
relations while streamlining cost
Challenge
 To establish a cost effective, high-performance platform for
internal and external communications.
Solution
 IBM® Sterling B2B Integrator makes it faster and easier to build,
deploy, and manage B2B solutions across diverse business
partner communities
Results
 Now with a centralized system, the high cost of having to
process orders from their customers via multiple VANs has been Customer Profile
eliminated, resulting in a return on investment within 18 months
CSX Transportation provides a crucial link to the
of implementation
transportation supply chain through its
 Easily extend their automated processes across enterprise approximately 21,000 mile rail network, in 23
boundaries, regardless of their business partners’ differing states east of the Mississippi River, the District of
connectivity technologies, policies, procedures, preferences, and Columbia, and the Canadian provinces of Ontario
priorities and Quebec.

22. Integration platform on boards new business
partners 90% faster for AT&T Mobility LLC
Challenge
 An increasing number of interactions with third-party providers and
large national retailer customers
 Integrate and onboard more customers quickly, despite disparate
systems
Solution
 IBM® Sterling B2B Integrator enables AT&T to maintain
unprecedented agility in its multi-enterprise environment
Results Customer Profile
 Onboard business partners 90% faster
 Reduced customer onboard time from 4 to 6 months to only a few AT&T Mobility LLC operates the largest digital
weeks voice and data network nationwide and served
 Improved reporting capabilities enable customer issues to be more than
addressed proactively before they turn into problems 73 million subscribers in 2008.

23. Personalized ads slash cost per order and attract
new customers at PETCO
Challenge
 Shoppers ignore the barrage of ads they’re hit with every time
they surf the Web
 Banner ads used in the past, but halted the program due to
concerns about under performance
Solution
 Coremetrics AdTarget™ is a sophisticated advertising solution
that will enable intelligent targeting based on customer
segment, and, as a result, drive up the effectiveness of the
ads served
Results
Customer Profile
 Coupon redemption rate in stores doubled the highest rate
achieved in previous campaigns PETCO is a privately held specialty retailer that
 Personalized ads generated 2/3 of all bird accessories orders provides products, services, and advice that make it
easier for customers to be great pet parents.
 Bird accessories cost per order was 64% lower than the
average cost

24. Rodale® measures online content performance
to grow revenues and audience size
Challenge
 Improving conversions and optimizing promotions for free
downloads
 Understanding the value of syndication and newsletters in
driving traffic to Rodale sites
Solution
 Coremetrics Analytics™ is providing rich insight into online
content performance, thereby enabling informed decisions that
drive revenue growth
Results
 By redesigning the newsletters, testing the new designs, and Customer Profile
fine-tuning the placement of links, dramatic gains have been Rodale is a global media company with a heritage,
achieved that include: mission, and authority dedicated to the health and
• 45% improvement in click-through rates wellness of the individual, community, and planet.
• 50% improvement in clicks
• 92% increase in page views
• 72% improvement in user sessions

25. Best Buy triggers loyalty
Challenge
 Existing system of hard-coding processes was not adequate to
meet desired campaign volume.
 Needed a scalable solution that would grow with the
organization.
Solution
 Unica® Campaign to define, create, test, execute, and
analyze all marketing programs via email, direct mail, call
centers, and the web
Results
Customer Profile
 Increased speed to market enables Best Buy to increase its
campaign volumes Best Buy Co., Inc., is North America’s leading
specialty retailer of consumer electronics, personal
 Reallocation of resources from support of marketing computers, entertainment software, and appliances.
campaigns to building enhanced predictive models needed for
future activities.

26. 1-800-FLOWERS.COM: Creating an e-commerce
platform for the future
Challenge
 Working with multiple, diverse, siloed e-commerce systems
without a unified technology platform
 To better enable synergies between its 14 gifting brands
 Create greater business agility
Solution
 IBM® WebSphere® Commerce to become a more dynamic
and agile enterprise by breaking down internal barriers
Results
Customer Profile
 Developed new business intelligence to leverage resources and
services across the brands
1-800-FLOWERS.COM, INC. is the world’s largest
 Enabled rapid creation and deployment of retail Web sites; florist and gift shop, positioning itself at the leading
allowing 1-800-FLOWERS.COM to tryout new offerings with very edge of trends with innovative marketing such as
little investment and risk “green” initiatives.

27. Crocs, Inc. improves it’s operational efficiency and customer experience
Challenge
 In order to remain successful in a down market, they needed an
order management solution to improve the customer experience
and drive order efficiencies throughout the company
Solution
 IBM® Sterling Order Management offers best of breed strategy
with the promise of expertise and guidance throughout the
process
Results
Customer Profile
 All inventory is planned and reserved by channel
 Internet order fill rate is nearly 100%, an improvement of up Crocs, Inc. designs, develops, and manufactures
footwear for men, women and children from
to13%
specialty resins with manufacturing and distribution
 Crocs, Inc. provides robust sourcing and scheduling ability, centers worldwide.
extensive use of inventory reservations, and unconstrained
Internet Forecast Reservations

28. Netherlands Railways develops powerful algorithms
that can adapt scheduling and rolling stock allocations
to short-term fluctuations in ridership
Challenge
 Ability to manage more trains and passengers within existing
infrastructure footprint
Solution
 IBM ILOG® CPLEX® to develop powerful algorithms that can
adapt scheduling and rolling stock allocations to short-term
fluctuations in ridership
Results
 e20million (US$27.1 million) in annual cost reduction through
the optimization of rolling stock allocation Customer Profile
 Incremental revenue gain of e40mil-lion (US$54.2 million) Netherland Railways is the largest passenger train
operator with over a million passengers transported
through new approach to timetabling each
 Two percent increase in on-time performance day in the Netherlands, the most densely populated
 Ability to accommodate additional ridership growth with country in Europe.
minimal new infrastructure investments

29. Learn more about Smarter Commerce
www.ibm.com/smarterplanet/commerce

30. 21 – 23rd of May in Nashville
18 – 20th of June in Monaco

31. Thank you
Gerrit Bus
Sales Leader EMM & Commerce: Middle East & Africa
gerrit@ae.ibm.com