These disruptive forces are rippling from the customers through to enterprise and across entire industries. IndividualsIts not just about the connected consumer driving the “consumerization” of businessThe networked workforce engages in new ways to collaborate both inside and outside the enterpriseThe empowered citizen is increasingly digitally engaged and networkedEnterprisesBusiness models must evolve to monetize and capture value across channels, products, services, customers Optimized digital operations transform how products and services are created, marketed, sold, delivered and serviced Connected enterprise changes organization and peopleIndustriesValue migration as value shifts along the value chain, often moving closer to the end consumerValue chain redefinition – The roles and relationships of industry players across the value chain are changingFragmentation as new industry entrants change the broader ecosystems, capturing significant value
Power has shifted to the consumer, compressing margins and changing paradigms, compressing margins, calling for a new approach to commerce Businesses need to:Understand and anticipate customer behavior by listening to their customers and turning insight into action. Its not just about predicting, but re-actingAdapt their supply chain based on customer demand and orchestrate seamlessly among their trading partners and suppliers.Market, sell and fulfill the right product and service, at the right price, right time and placeService their customers flawlessly and learn from their behavior to predict and take action.
There are three areas organizations need to focus on - “get rights” – insight, strategy and engagementCompanies need deep insight into customer behavior and needs – and the ability to anticipate and predict behavior to take immediate action. In today’s world of instant business, you need deep insights, in real-time that you can turn into immediate action This insight in turn helps them develop and continue to refine their customer value strategy – how to enhance, extend – and redefine value as viewed by the customer – and key here, do it profitably. This starts by 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 - profitablyThat brings us to the third point –leveraging that strategy to build customer and partner engagement throughout the value chain - to do that effectively today, they need an approach that allows them to connect, collaborate, conduct commerce to create a differentiated experience. If they do these right, they’ll increase value to customers, partners and shareholders.
Smarter Commerce can help transform every phase of the commerce cycleBuy: Smarter Commerce optimizes supplier and partner interactions based on changes in shopping/buying behavior across the supply chain and reconsiders partner roles and relationships to generate new and differentiating customer value. Market: Smarter Commerce uses customer insight - deep insights about customers – gleaned in large part from the global conversations taking place online– to deliver timely and personalized engagement across multiple touch points. Sell: Smarter Commerce enables customers and partners engagement so they can shop, exchange information, and collaborate across all touch points, spanning human, digital, social, and mobile modes of access that are optimized according to their preferences. Service: Smarter commerce enables flawless customer service across all customer interactions and anticipates their behavior and take action to keep them loyal.
This is a build slide: From demand to supply, IBM Smarter Commerce turns insights into actionFrom demand to supply, IBM Smarter Commerce turns insights in to action combining the supply chain optimization based on customer insights to tuning into the social business context to driving sales…. It used to be there was a B2B or B2C commerce site – but you need to know more? For example, a view into your supply chain was needed with visibility to enable optimization of inventory and order management. And, there is a need to understand the customer, and predict behaviors; ultimately to align demand with supply And there is marketing where you need to apply insights to define messages/automate campaigns And, recently there is a need to tap into Social media and “listen” – understand and use that insight to drive marketing, supply chains and optimize your entire value chain.All through these processes, IBM has solutions to help you drive a customer activated organization by taking insights and turning them into action.
Companies who embrace Smarter Commerce are seeing some pretty impressive results. • Irish Dairy Board, a global supplier of products, is able to integration and seamless and securely connect with 100% of their trading partners and customers to ensure that timely delivery of their ‘dairy’ products are delivered • Boots (Sterling, WebSphere Commerce) is a leading pharmacy chain in the UK ◦ Tapped into social media to get insight and build constituency. ◦ Web experience: users share with their peers. ◦ Delivered personalized and regionalized web content; loyalty program delivers coordinated and optimized offers ◦ They've seen 193% ROI. Speedo was able to sell more by increasing their knowledge of what customers were doing online and with a 195 return on their ad spend for pay per click advertisingAnd, XO Communications (SPSS) is a US-based national communications service provider. ◦ One of the biggest business challenges for telecommunications companies is managing customer churn. ◦ Used predictive analysis to proactively contact customers with high likelihood of churn ◦ Improved customer retention and measurably increased profits -- achieving an ROI of 376%.More Details if needed.Speedo - increases return on pay-per-click (PPC) advertising Return on ad spend in 30-day first-click data for the term Speedo swimming increased by 195%.Using knowledge from how customers search online to transform the way budgets are handled resulting in improved return on investmentsCoremetrics Digital Agency ServicesSM Boots Example: massive loyalty program delivers coordinated and optimized offers through statements, store kiosks and online campaigns with program ROI as high as 193%Harness the power of social media to gain insight, build constituency.Create capabilities for seamless, engaging multi-channel interactionDETAIL on solutionsThis all leads to the part that customers actually see: the brand and customer experience. This is about a compelling, user-friendly, intuitive web experience, the means to share their experience with their peers to influence further prospects through social media, and great selling and fulfillment e-commerce experiences to top it all off. IBM Customer Experience Suite (Products WP Portal Server 7. WS Portlet Factory, Lotus WCM, etc) supporting web content management, Rich social and real-time communication, Site search, Analytics integration support, easy delivery of personalized offers, Rich media management, Mobile device supporteCommerce: Sterling Commerce & WebSphere Commerce providing end-to-end B2C e-commerce Platform. Easily deliver personalized or regionalized web content presentment on personalized web landing pages. Includes cross-channel order capture, cart and catalog, Customer-centric shopping experience for bothB2C/B2B storefronts.Services and Strategy - Multi-Channel Customer Experience Assessment (GBS) and Digital Channel Transformation (GBS)This integrated marketing solution is about achieving a uniquely personalized, highly-relevant experience that will grow with your clients and evolve with your brand dynamically, keeping one step ahead in delighting your audience.Irish Dairy Board - Business partner integration drives supply chain success and cost efficiencies at Irish Dairy Board A reliable and Secure communication foundation for enhanced global collaboration. Tightly integrated business relationships with customers, and efficient up-stream supply chain with suppliers. Optimized and transformed customer satisfaction Eased integration for faster on boarding of partners—current and future.IBM® Gentran Integration SolutionTMIBM® Sterling Commerce NetworkSMXO Communications is a US-based national communications service provider of VoIP, voice, network, carrier, wholesale, and hosted services to businesses, government, domestic and international telecommunications carriers, cable companies, content providers, and mobile wireless companies.The need: XO communications needed a better way to manage customer churn among its thousands of midsized business customers. It could handle its larger customers with individual client services managers, but needed a more cost-effective way to target midsized customers that needed attention.The solution: XO Communications used IBM Business Analytics to analyze its customer data and identify customers that had characteristics suggesting a likelihood to churn. It used that information to prioritize efforts of its client services team, and implemented new programs to incent at-risk customers to stay, reducing churn.
Smarter solutions for at Smarter Planet
Smarter Solutions for a Smarter PlanetMichelle Unger
As the World Gets Smarter, it Creates New Opportunity for IBM Smarter Smarter Oil & Smarter Smarter Smarter Smarter Money Gas Food Healthcare Grid Retail Smarter Smarter Smarter Smarter Smarter Smarter Smarter Telecom Supply Chains Public Safety Government Railroads Cities Products
Industry Solutions IBM Software Technology IBM Solution ProductsIBM Industry Solutions Software will deliver “Bigger Puzzle Pieces” to simplify integration of common middleware patterns into solutions that deliver end-customer value
Industry Solutions Software Solutions are unique, integrated Products, addressing industry use cases and solving specific customer problems …delivered through Industry Framework go-to-market, industry content and sales tools… …built on a common Platform of core SWG products for efficient delivery and reuse across industries ...leveraging organic and inorganic investments Consumable, Repeatable, Scalable Repeatable and Scalable Offerings, Offerings with increased Asset Content Increased Asset Content
Industry Solutions Software is targeting these initial repeatable patterns… Smarter Cities Linking physical world assets, resources and infrastructure with the digital world of event processing, business analytics and optimization. Domains include asset optimization, supply chain, process optimization, physical infrastructure. Financial Operations Enables reporting, analysis, planning and consolidation around key financial processes. Solutions will focus on enabling organizations to optimize core financial functions such as payments, financial reporting, treasury, etc. in as near real-time as possible. Smarter Commerce Enable clients to connect, communicate and collaborate with customers, partners and suppliers by focusing on key commerce lifecycle processes in the order to cash flow, from selling of goods and services to order management, inbound supply, inventory management to multichannel order fulfillment to the destination. Customer Care & Insight Understanding customer patterns through analytics, identifying target customers and linking the findings with the business processes as actions to provide better customer value or prevent fraud/risks. Domains include Multichannel, Campaign & Promotion, Threat & Fraud Protection Workforce Optimization Encompasses activities needed to maintain a productive workforce and supports the business with key insights into how its workforce is performing. Will be based on integrating advanced analytic and collaboration capabilities to achieve a competitive advantage for our customers workforce. Advanced Case Management Solutions that address case style business problems unifying information, processes and people using content & process management, as well as advanced analytics, business rules, collaboration and social software to help drive more successful, optimized case outcomes. 6
7We have entered the age of the empowered customerCustomers now have Social networking and mobile Customer expectations of This is changingunlimited access to commerce have dramatically service, price and delivery is the entire wayinformation and can instantly changed the dynamic between soaring. products are sourced,share it with the world. buyer and seller. manufactured and distributed—and making business more complex than ever. 155 million 75% $93 billion Number of tweets sent via Twitter Percentage of people who believe Amount in sales missed due to out of each day companies don’t tell the truth in stock inventory advertisements Source: Twitter Global PR, Yankelovich, via Search Engine People, July 2010 , RIS Fifth Annual Store Systems Study 2008
These disruptive forces ripple from the customer through theenterprise and across entire industries Individuals The connected consumer The networked workforce The empowered citizen Enterprises Evolved business models Optimized digital operations Connected enterprise Industries Value migration Value chain redefinition Fragmentation
Power has shifted to the customer - compressing margins andchanging paradigmsIn this new era, businesses need to: Understand and Adapt and Market, sell Service flawlessly, anticipate optimize and fulfill predict and drive customer loyalty
At IBM we call the path forward: Smarter Commerce Places the customer at the Maximizes insight Capitalizes on social center and mobile Synchronizes your entire value chain Drives growth Increases margins Improves collaboration and visibility
Smarter Commerce focuses on three dimensions centered aroundthe customer Customer Insight Customer Value Strategy Customer Customer & Partner Engagement …increasing the value companies generate for their customers and partners in a rapidly changing digital world
Smarter Commerce can help transform - every phase of thecommerce cycle Buy Insight Strategy Market Sourcing, controlling Targeted and and procurement of personalized goods and services Buy Market marketing across all customer interactions Customer Service Sell Servicing customer Service Sell Enables selling and needs across all fulfillment of products interaction channels and services across all channels Engagement
From demand to supply, IBM Smarter Commerce turns insightsinto action Optimized Supply The “science” of chain marketing Sentiment analysis
Realizing Smarter Commerce with IBM’s integrated portfolio VALUE CHAIN STRATEGY Innovation and business value Market and customer mgmt Operating and organization models CORE BUSINESS SOLUTIONS Buy Market Sell Service Drives intelligent, adaptive and Creates personalized and Enables customers and partners to Anticipates behavior and optimized extended supply relevant offers with unified buy what they want, when and delivers flawless customer chains based on customer cross-channel marketing where service across all channels demand Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social analytics | Web analytics | Master data mgt Workload Optimized Systems Systems, Storage and Software focused on agility, integration and automation to drive relevant business success
Investing in Smarter Commerce: Delivering an integrated portfolio CORE BUSINESS SOLUTIONS Buy Market Sell Service IBM Case Manager Retail Store Solutions Advanced Analytics Workload Optimized Systems
Successful companies are staying competitive by transformingtheir approach to commerce 100% 193% 195% 376% Trading partners Amount Boots realized Amount Speedo Amount XO connected efficiently in ROI on targeted increased return on Communications and cost effectively. marketing programs. pay per click boosted ROI by reducing advertising. customer churn.
17IBM Smarter Commerce:: Making it real INVESTMENT $2.5+ billion software investment Global Business Services Practice INNOVATION $14B in BAO acquisitions and 8,000+ dedicated consultants 25,000 hardware and 35,000 software developers 3000 IBM researchers EXPERIENCE Hundreds of customer engagements Expertise in over 20 industries