Gerrit BusSales Leader EMM & Commerce:Middle East & Africa
It is not the strongest of the species thatsurvives, nor the most intelligent thatsurvives. It is the one that is the mostadaptable to change.- Leon C. Megginson paraphrasing Darwin’s Origin of Species
Power has shifted to the customer – compressing margins andchanging 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
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
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
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
A winning strategy starts with an integrated approach to commercePuts the customer Anticipates and Applies deep Optimizes Extends coreat deliver across insights to procurement systems tothe center mobile and social take action in based on demand synchronizeof your real time your value chaincommerceprocesses
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
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
Smarter Commerce integrates and enhances the commerce cycleVisibility and order status adapt All customerprocurement interactionsand logistics are a market opportunity Buy Market Service SellInsight from all channels through Promotions, guided sellinganalytics improves loyalty and precision marketing drive sales
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 chain50% 5%-7% $6.1 billion 18%Average percent of product Amount of savings CPOs Market for procurement Growth of procurementvalue derived from suppliers are looking to achieve technologies in 2012 spend analytics market annually
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 onand communications in 2011 next 12 months, 2-3X that of IT influenced by CMOs in marketing analytics in next budgets 2012 three years
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
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 201226% $83B 67% 47 %Of companies have a well- Lost due to poor customer On average those current Of US contact centersdeveloped strategy in place experiences because of customers of yours spend reward their agents basedfor improving customer defections and abandoned 67% more than a new one on customer satisfactionexperience purchases ratings
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
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?
Seamless integration across its entire business forCoca-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.
CSX Transportation (CSX) improves customerrelations 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.
Integration platform on boards new businesspartners 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.
Personalized ads slash cost per order and attractnew 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
Rodale® measures online content performanceto 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
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.
1-800-FLOWERS.COM: Creating an e-commerceplatform 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.
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
Netherlands Railways develops powerful algorithmsthat can adapt scheduling and rolling stock allocationsto 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
Learn more about Smarter Commercewww.ibm.com/smarterplanet/commerce
21 – 23rd of May in Nashville18 – 20th of June in Monaco
Thank you Gerrit BusSales Leader EMM & Commerce: Middle East & Africa firstname.lastname@example.org