Smart Work in Retail – Customer Stories
Smart Work in Retail – Customer Stories
Smart Work in Retail – Customer Stories




                           Smart Work for a Smarter Planet

The world has beco...
Smart Work in Retail – Customer Stories
Smart Work in Retail – Customer Stories
                                           Table of Contents
I-800-FLOWERS.COM, Un...
Smart Work in Retail – Customer Stories
                                            Table of Contents
Sears Canada, Canada...
Building a Smarter Planet




           1-800-FLOWERS.COM: Creating an
           e-commerce platform for the future



 ...
Making the most of brand synergy through shared technology




                                                      speci...
opposed to spending a lot of time and energy creating our own. Also, by going
                                            ...
Supporting a visionary business strategy                                                   © Copyright IBM Corporation 200...
Case Study QuickView
   Industry: Retail


           Bazaarvoice social commerce solutions boost sales at online
        ...
©   Copyright IBM Corporation 2007
                    Route 100
                    Somers, NY 10589
                    ...
Innovation that matters




           Gewandhaus Gruber increases customer loyalty and sales revenue by
           using ...
© Copyright IBM Corporation 2008

                  IBM Corporation
                  1	New	Orchard	Road
                 ...
Case Study QuickView




           Hardware retailer increases mobile messaging security and flexibility
           while...
© Copyright IBM Corporation 2009

                  IBM Software Group
                  Route 100
                  Somer...
Case Study QuickView




           Hess Corporation maximizes its profitability with real-time pricing
           updates...
© Copyright IBM Corporation 2008

                  IBM Corporation
                  Software Group
                  Rou...
IBM Australia




         Isuzu Australia takes the road to
         collaboration success with IBM®
         WebSphere a...
Selection of a portal                               IAL also elected to expand its             Collaboration pays off
    ...
Morhall explained, “Now our company      Continuing the journey                               Leading Communication for th...
For more information
         Please call 132 426 in Australia or
         0800 801 800 in New Zealand.


                ...
IBM Case Study

                                                                                                          ...
IBM
       Each inventory strategy was evaluated      group together. Also, sensitivity analysis
       with IBM ILOG Inve...
IBM Global Business Services

    Max Bahr Case Study




                                                                ...
Answering the challenge                  Nightly replenishment runs                © Copyright IBM Corporation 2006

     ...
Let’s build a smarter planet




           METRO Group tracks meat products from
           production to point of sale.
...
©	Copyright	IBM	Corporation	2009

                  IBM	Corporation	
                  1	New	Orchard	Road	
               ...
Let’s build a smarter planet




           Moosejaw Mountaineering reaches
           new heights of customer engagement
...
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
IBM Retail | 14 Success Stories in Retail
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IBM Retail | 14 Success Stories in Retail

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IBM presents a collection of 14 retail case studies and success stories from companies such as 1-800-Flowers, Bazaar Voice and Sears. Learn how you can work smarter in retail today

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Transcript of "IBM Retail | 14 Success Stories in Retail"

  1. 1. Smart Work in Retail – Customer Stories
  2. 2. Smart Work in Retail – Customer Stories
  3. 3. Smart Work in Retail – Customer Stories Smart Work for a Smarter Planet The world has become highly instrumented, interconnected and intelligent: from our food and water, to our energy, homes and transportation, to our cities and governments and, of course, our businesses and places of work. The workplace may be smarter, but it is also more challenging because of increasingly rapid and unpredictable change. Everything from swings in markets, to increasing global competition to new consumer expectations and more are changing at a furious pace. To keep up, we work harder. But to win, we must work smarter. Smart work embraces, even takes advantage of, change by creating a more agile, collaborative and connected business environment. It can make your business more profitable and productive. While it makes the world a better place to live and work. Some organizations are showing the way. In this book, you’ll see how our customers from around the world, in the retail industry, are connecting people and processes to: Optimize business performance Use technology to meet business needs quickly Maximize people's effectiveness working together To learn more about Smart Work, visit ibm.com/smartwork. Additional case studies are available at ibm.com/smartwork/success. We would love to have your organization as a client reference. To become an IBM client reference, visit ibm.com/ibm/clientreference.
  4. 4. Smart Work in Retail – Customer Stories
  5. 5. Smart Work in Retail – Customer Stories Table of Contents I-800-FLOWERS.COM, United States.....................................................................................7 1-800-FLOWERS.COM, INC needed to replace multiple, diverse, siloed e-commerce systems with a unified technology platform. Bazaar Voice, United States .....................................................................................................11 Bazaarvoice needed a vehicle to help its own software solution to increase online sales and create innovative tools to facilitate online commerce. Gewandhaus Gruber, Germany ..............................................................................................13 Gewandhaus Gruber wanted to better understand and reward its existing customers, while attracting new ones. It sought a cutting-edge loyalty offering that would help it increase revenue and differentiate itself from its competitors. Hartman Rauta Oy, Finland....................................................................................................15 The company wanted to take advantage of a number of new updates and improvements available in the latest version of Lotus Notes software, including new features that would improve mobile data security. In addition, Hartman wanted to implement a virtual group working environment to support improved communication and collaboration. Hess, United States....................................................................................................................17 Hess Corporation needed a new inventory solution that would automate processes and keep data up to date. Isuzu Australia, Limited, Australia.........................................................................................19 Isuzu Australia Limited needed a solution to improve the speed and accuracy of communications between head office and the dealerships as well as facilitate increased collaboration with business partners. Major Retailer, United States ..................................................................................................23 Major Retailer wanted to determine whether its hybrid inventory strategy with some stock keeping units (SKUs) was appropriate for its business. Max Bahr, Germany.................................................................................................................25 Max Bahr wanted to meet its customer demand for any of 40,000 products in over 80 outlets with low replenishment and storage costs. METRO Group, Germany.......................................................................................................27 METRO Group’s retail store meat tracking system was entirely manual, a time-consuming and error-prone process. METRO Group needed to gain a better grasp of the inventory management of its meat products, while working to improve customer food safety. Moosejaw, United States ..........................................................................................................29 To thrive in the highly competitive market for outdoor adventure gear, Moosejaw Mountaineering needed to create a customer experience that would engage a customer community whose appetite for extreme sports is matched by a hunger for communication and collaboration. i
  6. 6. Smart Work in Retail – Customer Stories Table of Contents Sears Canada, Canada..............................................................................................................33 Sears Canada wanted to deliver on business objectives and reduce development cost through code reuse to eliminate coding and recoding of the same integration, and speed the exchange of information with business partners to improve business agility to be competitive in today’s economy. South American Retailer, Brazil .............................................................................................37 South American Retailer needed to enable an enterprise-wide sales information portal with dramatically improving productivity and information access while eliminating millions of printed pages annually. Spotlight Proprietary Group, Australia .................................................................................39 Spotlight Proprietary Group wanted to have a strong and flexible IT Infrastructure with sufficient strategic dimension or vision. Yansha, China ...........................................................................................................................55 Yansha needed to increase its competitiveness against both local retailers and new foreign competitors in an increasingly deregulated Chinese retail industry through the adoption of new business processes, automation and business intelligence. ii
  7. 7. Building a Smarter Planet 1-800-FLOWERS.COM: Creating an e-commerce platform for the future Overview ■ Business Challenge To better enable synergies between its 14 gifting brands, create greater business agility, and reach its goal of becoming one of the Top 10 among Internet Retailer Top 500 com- panies, 1-800-FLOWERS.COM, INC. needed to replace multi- ple, diverse, siloed e-commerce systems with a unified technol- ogy platform. 1-800-FLOWERS.COM, INC. is the “ The platform will ■ Solution world’s largest florist and gift shop, with 1-800-FLOWERS.COM teamed enable the individual revenues approaching US$1 billion. The with IBM to implement company is marked by its large-scale brands to do things IBM WebSphere® Commerce vision and forward thinking, positioning they would never for two of its gift food brands as itself at the leading edge of trends with have been able to an initial proof of concept innovative marketing such as “green” cost-justify before. It’s for the platform. The site, initiatives that reward responsible con- thepopcornfactory.com has going to give us sumer behavior. For example, its seen a consistent rise in conver- BloomNet® brand will, in exchange for unprecedented agility.” sion since its November launch. a customer forgoing a BloomNet Florist — Steve Bozzo, CIO, Using knowledge gained from paper directory, plant trees as part of a 1-800-FLOWERS.COM this first rollout, the company reforestation campaign. It is also intro- will take a greater role in transi- ducing environmental responsibility as a tioning most of its other brands theme across all of its businesses, with to the new platform over the awareness campaigns on social net- coming year. working Web sites. ■ Key Benefits — Enables more rapid creation The company has a thorough under- and deployment of retail standing of the “gifting” market space in Web sites which it operates, and sees great — Facilitates cross-selling potential for synergy by offering multiple between brands Page 7 of 60
  8. 8. Making the most of brand synergy through shared technology specialty brands. The 1-800-FLOWERS.COM strategy has been to grow three Business Benefits ways: organic growth, internal business development and strategic acquisitions. ● Enables more rapid creation and Today, it has 14 brands that sell everything from popcorn to gift baskets to gour- deployment of retail Web sites, met food and children’s gifts. allowing 1-800-FLOWERS.COM to try out new offerings with very little investment and risk The strategy has given 1-800-FLOWERS.COM a broad and diverse portfolio, but it ● Facilitates cross-selling between also created a business challenge. To fully realize the benefits of its multibrand brands by unifying the underlying strategy, they must be unified behind the scenes, but as is usually the case, each technology new acquisition brought with it a different set of business processes and technol- ● Provides the potential for information ogy, resulting in a large number of siloed operations that were difficult to integrate. sharing across business units, opening up the possibility for more effective To promote brand synergy, the company has undertaken “Fresh Digital™,” an marketing to customers enterprise-wide transformation initiative. “Unifying lines of business is a better ● Ensures a consistent look and feel approach to retail,” says Steve Bozzo, CIO at 1-800-FLOWERS.COM. “By sharing across the company resources, systems and services, we accomplish a number of things. We become ● Provides a rich, differentiated customer a more dynamic and agile enterprise because we’re breaking down internal experience barriers—which will also help us develop new business intelligence. We’ll be able to ● Reduces maintenance and leverage resources and services of all kinds across the brands, from information to development costs IT to shipping to warehousing, which will let us work smarter. And by consolidating, sharing and implementing more efficient technologies as well as implementing measures like sustainable packaging and reducing our reliance on paper catalogs, we’ll be able to reduce our environmental footprint, which puts credibility behind our green marketing efforts.” Build versus buy The first step on the consolidation path was to give the individual brands a com- mon e-commerce platform. The 1-800-FLOWERS.COM brand itself uses a robust e-commerce system that was developed entirely in-house and which continues to “ Tearing the walls serve the company very well, with a demonstrated ability to handle even the heavi- down will enable us to est holiday volumes. It became clear, however, that using this platform to support go to market much all of the other brands was not the best use of the company’s resources. Rolling more effectively. We’ll out the 1-800-FLOWERS.COM platform to its other brands would require replicat- have a lot more shared ing it over and over and it was simply not the most efficient way forward. information, and that “We’re very happy with our core platform. Its performance proves we have the abil- will allow us to cross- ity to create really strong e-commerce solutions, but fundamentally we’re not a sell much better.” software company—we’re a gifting company,” says Steve Bozzo. “It made more — Steve Bozzo sense for us to find a best-of-breed e-commerce platform and work with it as Page 8 of 60
  9. 9. opposed to spending a lot of time and energy creating our own. Also, by going Solution Components with an industry leader, we’re leveraging its research and development dollars instead of using ours to reinvent the wheel as well as reducing the size and envi- Software ronmental impact of our infrastructure.” ● IBM WebSphere Commerce ● IBM WebSphere Message Broker The company chose IBM WebSphere Commerce, in part because of the flexible ● IBM WebSphere MQ and efficient way in which it functions behind the scenes. “With WebSphere Hardware Commerce, basically you’ve got a single Web site that handles all of the transac- tions,” says Bozzo. “This central engine supports as many customer-facing Web ● IBM Power Systems stores as you like, and it’s easy to add new ones or roll out new features across Services brands.” ● IBM Global Business Services ● IBM Global Financing The platform, running on IBM Power Systems™ hardware, also has to integrate seamlessly with the company’s existing systems. The 1-800-FLOWERS.COM platform will remain in place, and most of the other brands will be migrated to the new WebSphere Commerce-based system over the coming year. In the interim, everything needs to continue functioning transparently. To accomplish this, the service-oriented architecture solution includes IBM WebSphere Message Broker and IBM WebSphere MQ, which form an enterprise service bus that ties the legacy Smarter Solutions for Retail systems together. To realize its vision of synergy among its 14 brands and meet ambitious growth The initial rollout supports two of the company’s gift food brands, and took a total goals, 1-800-FLOWERS.COM, INC.—the of only seven months with the help of IBM Global Business Services. “We went world’s largest florist and gift shop—is from Web 0.5 to Web 2.0 in only a few months; we could not have done that with- deploying a single e-commerce platform. out IBM,” Bozzo says. Knowledge transfer and lessons learned during the initial The solution, based on IBM WebSphere Commerce, is designed to replace rollout will help 1-800-FLOWERS.COM to take a greater role in launching the multiple siloed systems. The new remaining gift food brands. In this way, the company will be well prepared to launch platform adds flexibility and agility, future brand storefronts entirely on its own. making it significantly easier to launch new Web commerce brands—allowing the company to try new business IBM was chosen mostly because of the capabilities of WebSphere Commerce and strategies with little risk. In addition, the expertise of IBM Global Business Services, but Bozzo emphasizes another the shared platform facilitates cross- important consideration: IBM Global Financing. “Because of the uncertainty we’re selling and information sharing seeing in the macro economy these days, making it easier to make the investment across the enterprise, which helps 1-800-FLOWERS.COM gain maximum was a key decision driver for us. IBM was able to give us what we needed in that benefit from its many business units. area.” Page 9 of 60
  10. 10. Supporting a visionary business strategy © Copyright IBM Corporation 2009 IBM Corporation The ultimate goal of the company’s overall Fresh Digital™ initiative is to eliminate all 1 New Orchard Rd. of the barriers between business units, enabling the full sharing and leveraging of Armonk, NY 10504 U.S.A. information across the entire enterprise and throughout its back-end systems. Produced in the United States of America “Over the long term, our customers will be able shop any of our brands, and we’ll January 2009 be able to ship from a unified location. That’s a much more streamlined, efficient All Rights Reserved and smarter model,” Bozzo says. IBM, the IBM logo, ibm.com, Power Systems and WebSphere are trademarks or registered trademarks of International Business The implementation of WebSphere Commerce is a critical first step—the benefits of Machines Corporation in the United States, other countries, or both. If these and other shared services that it offers will trickle down throughout the organization over time IBM trademarked terms are marked on their first and enable new ways of going to market. “Tearing the walls down will enable us to occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. go to market more effectively. We’ll have a lot more shared information about buy- registered or common law trademarks owned ing patterns and customer profiles and that will allow us to cross-sell much better,” by IBM at the time this information was published. Such trademarks may also be says Bozzo. “Also, we’ll be able to try new ideas with little risk. With the new registered or common law trademarks in other platform, we can launch an entirely new brand fairly easily, because all of the countries. A current list of IBM trademarks is available on the Web at “Copyright and e-commerce technology is already there.” trademark information” at ibm.com/legal/ copytrade.shtml Other company, product or service names may The most significant impact of the platform, however, will be in the competitiveness be trademarks or service marks of others. it brings to 1-800-FLOWERS.COM by allowing the company to leverage best prac- This case study illustrates how one tices across the entire business. “The platform will enable the individual brands to IBM customer uses IBM products. There is no guarantee of comparable results. do things they would never have been able to cost-justify before,” Bozzo says. “It’s References in this publication to IBM products going to give us unprecedented agility. We’ll be able to re-merchandise our Web or services do not imply that IBM intends to make them available in all countries in which stores on the fly in response to competitive offers. That will make us much more IBM operates. relevant to the customer, which is critical. Customer expectations continue to ratchet up, and this new platform is positioning us to meet them going forward. We’ll have an immediacy and responsiveness that will give us a real competitive advantage.” For more information To learn more about how IBM can help transform your business, please contact your IBM sales representative or IBM Business Partner. Visit us at: ibm.com/retail ODC03103-USEN-00 Page 10 of 60
  11. 11. Case Study QuickView Industry: Retail Bazaarvoice social commerce solutions boost sales at online retail sites powered by IBM WebSphere Commerce Bazaarvoice is a pioneer in developing technology and services that encourage and harness online word-of-mouth marketing and boost e-commerce. Working with IBM, Bazaarvoice chose IBM WebSphere® Commerce as a superior platform for its social commerce solutions. Challenge In the offline world, word of mouth is a powerful force, and perhaps the most trusted form of advertising. Bazaarvoice, an IBM Advanced Over view Business Partner that participates in IBM PartnerWorld® Industry Networks and is optimized in the retail industry, saw the potential for Bazaarvoice, Inc. word-of-mouth marketing to increase online sales and created Austin, Texas innovative tools to facilitate this capability. www.bazaarvoice.com Products Solution • IBM WebSphere Commerce Bazaarvoice core products -- Ratings & Reviews™, Ask & Answer™, and Bazaarvoice Stories™ -- provide capabilities that are critical to differentiating retailers and driving sales. The tools, respectively, help enable customers to rate products and write reviews, ask questions and get answers directly from other consumers, and share user experiences. “Joining PartnerWorld Industry They can also seamlessly feed data to IBM DB2® databases. Networks and using the Bazaarvoice solutions, which are hosted, managed and monitored, exceptional resources that provide advanced analytics. They work with any e-commerce platform, IBM can bring to a partner including IBM WebSphere Commerce, a next-generation solution for e-commerce needs which is the preferred foundation for the lets us take our business applications for multi-channel retailers. to a whole new level. Our relationship with IBM is making “WebSphere Commerce provides a whole set of possibilities that simply wouldn’t be possible with other e-commerce platforms that Bazaarvoice grow faster and lack WebSphere’s multi-channel capabilities,” said Brant Barton, vice in more robust ways than we president, business development, Bazaarvoice. would have otherwise seen.” Brant Barton, vice president, Benefits business development, Bazaarvoice Bazaarvoice social commerce solutions running on IBM WebSphere Commerce: • Increase online sales and reduce return rates • Improve customer satisfaction and loyalty • Improve search ranking and drive qualified leads • Provide better understanding of customer wants and needs Page 11 of 60
  12. 12. © Copyright IBM Corporation 2007 Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America 12-07 All Rights Reserved International Business Machines Corporation, the IBM logo, DB2, PartnerWorld, and WebSphere are trademarks or registered trademarks of IBM Corporation in the United States, other countries, or both. Windows is a trademark of Microsoft Corporation in the United States, other countries, or both. Other company product or service names may be trademarks or service marks of others. The information contained in this documentation is provided for information purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, expressed or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. Page 12 of 60
  13. 13. Innovation that matters Gewandhaus Gruber increases customer loyalty and sales revenue by using cutting-edge IBM and IBM Business Partner technology. Overview Gewandhaus Gruber is a clothing retailer with a 350-year history of dressmaking and retailing. It currently has eight branch stores, two Gewandhaus Gruber Erding, Germany outlets and a sports shop where it sells both traditional Bavarian clothing www.gewandhaus-gruber.de and formal dresses of other brands. Industry • Retail Challenge Employees Gewandhaus Gruber is a successful mid-level to high-end clothing merchant in • 1,000 Germany. Wanting to better understand and reward its existing customers while attracting new ones, the company decided to implement a customer loyalty Products • IBM Anyplace Kiosk program. But traditional card-based loyalty solutions were predictable and could • IBM DB2® for Linux® be expensive to maintain. Instead, the retailer sought a cutting-edge loyalty offering IBM Business Partner that would help it increase revenue and differentiate itself from its competitors. • it-werke Technology GmbH Solution Using a combination of IBM and IBM Business Partner technology, the retailer launched the first fingerprint identification–based loyalty program and payment method in Germany. The solution allows the client’s loyalty club members to quickly “The system is unusual and and conveniently pay for items via a fingerprint scanner that also tracks purchases distinctive…it has a number and that rewards members through loyalty incentives. Further, it provides Gewandhaus of practical advantages… Gruber with in-depth sales reports that provide decision makers and marketers with particularly in terms of lower valuable insight into the way customers spend their money. operational costs. With no need to print cards, post Benefits them, manage them and • Earned d2.6 million —15 percent — of annual revenue in just six months replace them when lost, the through approximately 4,500 club members savings are considerable.” • Saved d100,000 in operational costs over a comparable card-based — Svenja Wittrowski, project leader, loyalty program Gewandhaus Gruber • Increased revenue by 4% and improved customer satisfaction Page 13 of 60
  14. 14. © Copyright IBM Corporation 2008 IBM Corporation 1 New Orchard Road Armonk, NY 10504 U.S.A. Produced in the United States of America September 2008 All Rights Reserved IBM, the IBM logo, ibm.com and DB2 are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trade- marked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or com- mon law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other company, product and service names may be trademarks or service marks of others. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without war- ranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other docu- mentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. This document illustrates how one organization uses IBM products. Many factors have contributed to the results and benefits described; IBM does not guarantee comparable results elsewhere. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. REC03001-USEN-00 Page 14 of 60
  15. 15. Case Study QuickView Hardware retailer increases mobile messaging security and flexibility while improving integration with IBM Lotus Hartman Rauta Oy operates a number of hardware and do-it-yourself Overview (DIY) stores for private consumers and the construction industry. Hartman Rauta Oy The company’s retail stores focus on providing products for leisure Vaasa, Finland activities as well as interior decoration and construction. www.hartman.fi Industry Challenge • Retail Hartman Rauta Oy (Hartman) had been using IBM Lotus Notes V7 software hosted on an IBM System i5 server as it legacy e-mail and messaging platform, Employees and was satisfied with the existing system. However, the company wanted to take • 1,000-5,000 advantage of a number of new updates and improvements available in the latest Products version of Lotus Notes software, including new features that would improve mobile • IBM Lotus Mobile Connect ® ® data security. In addition, Hartman wanted to implement a virtual group working • IBM Lotus Quickr ™ environment to support improved communication and collaboration. • IBM Lotus Notes V8.5 ® Solution • IBM Lotus Notes Traveler V8.5 Hartman worked with IBM to upgrade its e-mail and messaging platform to • IBM System i5® IBM Lotus Notes V8.5 software. The upgrade allowed the company to replace its legacy Intellisync software with IBM Lotus Notes Traveler V8.5 software, offering quick access to e-mail and attachments, calendar, address book, journal and to-do list for Lotus Notes mobile users. Hartman also implemented IBM Lotus Mobile Connect V8.5 software, helping to increase mobile security “IBM Lotus software for the company’s virtual private network connections. Hartman implemented provides the tools we IBM Lotus Quickr V8.5 team collaboration software to create a shared work- need to leverage mobile space that helps groups work together on projects and easily share everyday content such as documents and rich media. productivity—without sacrificing security.” Benefits —Jari Pienkuukka, Director, Logistics • Increased security and flexibility of mobile connections and ICT, Hartman Rauta Oy • Improved integration between the Lotus Notes platform and the company’s mobile Symbian operating system–based handhelds • The Domino Attachment and Object Service built into Lotus Notes V8.5 helps save storage capacity by minimizing duplicate file attachments Page 15 of 60
  16. 16. © Copyright IBM Corporation 2009 IBM Software Group Route 100 Somers, NY 10589 Produced in the United States August 2009 All Rights Reserved IBM, the IBM logo, ibm.com, Lotus, Lotus Notes, Quickr and System i5 are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml. Other company, product or service names may be trademarks or service marks of others. The informa- tion contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agree- ment governing the use of IBM software. LOC14140-USEN-00 Page 16 of 60
  17. 17. Case Study QuickView Hess Corporation maximizes its profitability with real-time pricing updates thanks to an SOA built using IBM software. Overview Hess Corporation engages in the exploration, production and refinement of crude oil and natural gas. Operating more than 1,350 retail gas stations in Hess Corporation Woodbridge, New Jersey, USA 14 eastern U.S. states, the organization also offers energy-related utilities www.hess.com services to commercial and retail customers. Industry • Chemicals & Petroleum Challenge • Retail Locked in stiff competition, Hess Corporation’s retail gas station business relied on Products smooth supply chain operation to minimize costs and maintain high profit margins. • IBM Lotus Expeditor But the organization’s manual product pricing and inventory processes frustrated • IBM WebSphere Process Server these goals by consuming employee resources and leaving the organization open to IBM Business Partner errors. Even worse, these manual processes led to delays that frequently resulted in • Openstream Inc. data that was out of date before it had been entered into the company’s database. Hess Corporation needed a new inventory solution that would automate processes and keep data up to date. Solution IBM delivered an IBM Retail Integration Framework solution (built using IBM Lotus® Expeditor software) that leverages a service-oriented architecture (SOA) to provide Hess Corporation with real-time insight into the inventory levels of its retail gas “With the Openstream and stations. Using personal digital assistants (PDAs) and software from IBM Business IBM solution, it is so much Partner Openstream Inc., the client’s staff can scan station inventory and upload easier to track inventory that data to a local database. This information is then distributed to the client’s across our 870 stores. It headquarters using Lotus Expeditor and IBM WebSphere ® Process Server streamlines our inventory software via the SOA. The solution also enables Hess Corporation to update processes while providing pricing information across its entire enterprise at one time, removing manual steps. us with the peace of mind Benefits of knowing that the data is • Maximizes profitability by supporting real-time price change updates actually correct.” • Reduces inventory-tracking errors and duplicate orders by eliminating — Hess Corporation manual processes • Streamlines order and inventory processes with an SOA, improving employee productivity Page 17 of 60
  18. 18. © Copyright IBM Corporation 2008 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America 04-08 All Rights Reserved IBM, the IBM logo, Lotus and WebSphere are trademarks of International Business Machines Corporation in the United States, other countries, or both. Other company, product and service names may be trademarks or service marks of others. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this docu- mentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this infor- mation is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any dam- ages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warran- ties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. WSC14034-USEN-00 Page 18 of 60
  19. 19. IBM Australia Isuzu Australia takes the road to collaboration success with IBM® WebSphere and Lotus technologies Overview Problem Isuzu Australia Limited (IAL) has a large national dealer network which is the driving force behind the business. The company needed a solution to improve the speed and accuracy of communications between head office and the dealerships as well as facilitate increased collaboration with business partners. Solution IAL chose to implement IBM WebSphere® Portal linked to other collaboration tools including Lotus® Sametime®, Lotus Quickr™, Portal Document Manager (PDM) and About Isuzu Australia Limited expensive and time-consuming, it was Web Content Management. Isuzu Australia Limited is a wholly- also vulnerable to errors. Dealers were Benefits owned subsidiary of Isuzu Motors responsible for the internal distribution Communications both internally and Limited (Japan), and is responsible for of the various materials, resulting in externally with dealers and partners the marketing, distribution and support frequent failure to reach the appropriate have been radically improved. of Isuzu Trucks in Australia. With just dealer recipients. In addition to this any Information is now hosted centrally 65 employees in Australia, IAL depends errors or update to materials meant a on a web-based portal, allowing all largely on its national dealer network repeat of the above process, and again parties to access real time, up to of over 1000 dealership staff to drive there was no immediate confirmation of date information at any time. its business and maintain its market receipt and use by dealers of the up to leading position. date information. Looking towards the latest technology It was evident to IAL that both internal The Isuzu Truck national dealer and external communications could network is the retail end of the be improved through utilisation of new distribution channel for Isuzu technologies. Aninka Morhall, Staff Trucks sold in Australia, hence the Operations Manager at Isuzu Australia’s requirement for access to the latest Head Office, in Port Melbourne, was materials and information from IAL tasked with sourcing an online portal head office. In 2005 the company and content management solution (IAL) was distributing all information to to supercede the existing manual dealers manually in printed format via processes. surface mail. Not only was this system Page 19 of 60
  20. 20. Selection of a portal IAL also elected to expand its Collaboration pays off Morhall evaluated solutions from a collaboration capabilities by adding The implementation of the WebSphere number of leading vendors, but settled Lotus Sametime instant messaging, Portal enhanced by Lotus collaboration on IBM WebSphere Portal along with Lotus Quickr for team based project tools has totally transformed the Workplace Web Content Management management and Portal Document communication processes between (WCM). Commenting on IAL’s reasons Manager (PDM) to create a central Isuzu and its dealer network. Today for selecting IBM technology Morhall repository for documents. “These all materials are hosted on the said, “We chose WebSphere Portal additional systems were implemented portal and dealers simply have to and WCM because this solution was to enable teams to collaborate around log on to instantly access the latest more capable of meeting our needs specific projects and documents and to information. The result has meant than the other offerings in the market, cut down on sharing of documents as vastly improved, more accurate and in particular in terms of its scalability. email attachments” Morhall commented. timely communications with IAL’s We were also interested in all of the dealer network enhancing most areas The portal and collaboration tools were extra collaborative components. of their business operations, and even rolled out to staff and 1000+ dealership As a long time Lotus Notes user ® increasing their ability to sell more staff, with access controlled by a we knew these systems would effectively. The dealers can also log onto complex security structure allowing the integrate seamlessly with our existing Sametime instant messaging through right people to see the right content at technology platforms.” a web interface, enabling them to the right time. The systems were quickly communicate with head office contacts adopted by the majority of users and in real time and quickly trouble-shoot today are used companywide. any current queries. Internal communication within IAL has also improved. Staff can now publish information themselves, expediting access to important information. Instant messaging has also meant employees rely less on email and more business decisions can be made in real time. The “We chose WebSphere Portal and WCM discipline of using a central document because this solution was more capable of repository hosted online means fewer meeting our needs than the other offerings documents are shared as attachments and users can be more confident they in the market, in particular in terms of its are accessing the most recent version. scalability. We were also interested in all of the extra collaborative components. As a long time Lotus Notes user we knew these systems would integrate seamlessly with our existing technology platforms.” - Aninka Morhall, Staff Operations Manager, Isuzu Australia Page 20 of 60
  21. 21. Morhall explained, “Now our company Continuing the journey Leading Communication for the Truck announcements are no longer sent The implementation of WebSphere Market leader by email – people know they have to Portal and Lotus collaboration tools As Australian truck market leader for log into the portal if they want to be has given IAL a taste for more 19 consecutive years (20 by the end kept up to date. Anyone can publish technology and the productivity gains of 2008), Isuzu Australia recognises information, it’s simply reviewed for it can deliver. Morhall is currently rolling that maintaining this enviable record appropriateness, and then it is posted out the use of wiki technology which is dependent on providing leading immediately. All our business policies is available in Quickr, “We are going products and services. IAL is also and procedures are hosted on the to start using wiki technology in Lotus committed to demonstrating leadership portal as well.” Quickr to further improve information in all areas of its operations, and by sharing – that’s our latest exciting selecting IBM WebSphere Portal and Since the portal went live in 2006 project here.” Morhall is also looking at Lotus Software technologies to provide Isuzu has realised substantial incorporating IBM’s Workplace learning leading communications between business benefits. The company has management system into the portal IAL and its dealer network its market enjoyed cost reductions since it no to further extend knowledge sharing leadership is more easily maintained. longer has to print materials for the and collaboration based e-learning dealer network and distribute them throughout the organisation. through the mail. Cost aside, Isuzu now distributes information to its dealers instantaneously, confident in the knowledge that dealers are always just a click away from the “Now our company announcements are no latest information. This has reduced longer sent by email – people know they have errors across the entire dealer to log into the portal if they want to be kept network. up to date. Anyone can publish information, it’s Armed with the latest technology simply reviewed for appropriateness, and then it is tools, collaboration and knowledge posted immediately. All our business policies and sharing has increased – for example teams can discuss a particular procedures are hosted on the portal as well.” document over a web meeting, or - Aninka Morhall, Staff Operations Manager, Isuzu Australia individuals can access the real-time status of a project, task or milestone simply by logging into the portal. Page 21 of 60
  22. 22. For more information Please call 132 426 in Australia or 0800 801 800 in New Zealand. © Copyright IBM Australia Limited 2008 ACN 79 000 024 733. © Copyright IBM Corporation 2008. All Rights Reserved IBM Australia Limited IBM Centre Level 13, 601 Pacific Highway St Leonards NSW 2065 08/08 IBM, the IBM logo, Websphere, Lotus, Sametime, Quickr and Lotus Notes are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries or both. Intel, the Intel Inside Logo and Pentium are registered trademarks of Intel Corporation or its subsidiaries in the United States or other countries. Other company, product and service names may be trademarks or service marks of others. Important Privacy Information: If you would like to request access to or correction of your details or if you or your organisation would prefer not to receive further information on IBM products, please advise us on: 132 426 (Australia) or 0800 801 800 (New Zealand). This customer story is based on information provided by AusRegistry and illustrates how one organisation uses IBM products. Many factors have contributed to the results and benefits described. IBM does not guarantee comparable results elsewhere. Designed by the IBM Grafxlab. GL_10081 Page 22 of 60
  23. 23. IBM Case Study IBM Major retailer Evaluating inventory strategies Overview  Objective: A retailer with billions in annual sales had seven distribution centers (DCs) to serve its stores. The retailer was growing rapidly through acquisitions and organic growth. This produced a hybrid inventory strategy with some stock-keeping units (SKUs) stored at all the DCs and others at only a few centralized locations. The assignment of SKUs was largely based on the practices of the acquired companies. The retailer wanted to determine whether its inventory strategy was appropriate for its business. scenarios were developed for each Best of both inventory strategies strategy. The retailer was able to Using the centralized strategy, the  Solution: reallocate nearly 25 percent of its retailer is able to reduce its inventory The decentralized strategy had SKUs between the two strategies, levels through risk-pooling and more suppliers drop products at the DCs, with a projected reduction in accurate forecasts. Furthermore, the while the centralized strategy had transportation and inventory holding larger volume at the central locations products go to central DCs and then costs of more than U.S.$1.5 million. means more frequent shipments to other DCs. The latter system from suppliers, which results in lower resulted in transportation costs of  Benefits: inventory levels. But this strategy incurs nearly U.S.$5 million a year between • Lower transportation costs additional transportation costs be tween the central and store-facing DCs. • More accurate inventory analysis central and store-facing DCs, as well as Using IBM® ILOG Inventory Analyst, • Improved distribution extra handling costs as products have the inventory planning solution from to flow between DCs and then on to the LogicTools (now IBM ILOG), stores. Page 23 of 60
  24. 24. IBM Each inventory strategy was evaluated group together. Also, sensitivity analysis with IBM ILOG Inventory Analyst. The was conducted to determine how the ® factors modelled included product strategy would change if inventory costs, inventory holding costs, demand, holding costs were changed. forecast error, service levels, supplier lead times and reliability, receiving Benefits © Copyright IBM Corporation 2009 frequency, and transportation times and By comparing IBM ILOG Inventory IBM Corporation costs. A total cost for each SKU was Analyst’s recommendations with the Software Group Route 100 determined for each strategy, and the current distribution system, the retailer Somers, New York 10589 resulting costs compared. This helped was able to identify SKUs as candidates U.S.A. determine which SKUs to assign to each for transition between the centralized Produced in the United States of America inventory strategy, and the projected and decentralized inventory strategies. December 2009 savings from doing so. Nearly 25 percent of the SKUs fell All Rights Reserved into this category. By making these IBM, the IBM logo, and ibm.com are trademarks For operational reasons, some product changes, the retailer projected savings or registered trademarks of International categories could not use a hybrid of over U.S.$1.5 million per year, mainly Business Machines Corporation in the United States, other countries, or both. If these and other strategy, and an aggregated decision from reductions in transportation and IBM trademarked terms are marked on their first was made for these categories by inventory holding costs. occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. considering all the products in the registered or common law trademarks owned by Based on extensive analysis of the IBM at the time this information was published. Such trademarks may also be regis-tered or results from the IBM ILOG Inventory common law trademarks in other countries. A Analyst model, the customer was able current list of IBM trademarks is available on the Web at “Copyright and trademark information” at to save millions of dollars annually ibm.com/legal/copytrade.shtml in distribution costs, as well as Other product, company or service names may significantly reduce inventory. This be trademarks or service marks of others. gave the customer more visibility into This case study is an example of how one the downstream supply chain, thereby customer uses IBM products. There is no increasing manufacturing flexibility guarantee of comparable results. and further reducing raw material References in this publication to IBM products inventories. In addition, the length of and services do not imply that IBM intends to make them available in all countries in which IBM the cash-flow cycle was reduced by operates. 50 percent through direct shipping to customers. Products and services used Software IBM® ILOG Inventory Analyst Recyclable, please recycle. WSC14123-USEN-01 Page 24 of 60
  25. 25. IBM Global Business Services Max Bahr Case Study Supply Chain Management “Do-it-yourself” retailer uses IBM solution to automate replenishment and help ensure high shelf availability A change in business focus in the stores; 70 percent arrive directly Overview Max Bahr Holzhandlung GmbH, a from suppliers. A second warehouse is pioneer since 1879 in Germany’s scheduled to begin operations this year. Challenge highly competitive do-it-yourself (DIY) Meet customer demand for any of market, was at a crossroads. After Max Bahr employs approximately 4,500 40,000 products in over 80 outlets with going through a busy period of opening employees, all of whom are dedicated low replenishment and storage costs up new stores during the 1990s, the to one objective: providing superior DIY retailer wanted to refocus its on-floor consultation and service to Why become an On Demand business energy on driving up sales per square every customer, whether layperson or To help drive up sales per square meter of existing floor space. That professional. The company strives to meter of existing floor space, Max meant ensuring high shelf availability offer premium goods and services at Bahr needed an approach that would for every item Max Bahr carries. DIY the lowest possible prices. provide the highest product availability stores typically carry few substitutable levels for customers, while optimizing products, and customers have a high To help implement its revised business inventory and storage costs propensity to buy when they are in the plan, Max Bahr needed an automated, store. centralized replenishment system that Solution could provide the highest customer IBM Dynamic Inventory Optimization With revenues of 816 million euros in service levels, while optimizing Solution, a comprehensive offering 2005, Max Bahr operates more than inventory and storage costs. “We were that helps companies determine 80 home and garden centers around making replenishment decisions locally optimal inventory levels based on cost the Federal Republic of Germany, at each store,” says Anja Schöning, constraints, forecasts, demand patterns as well as an e-commerce Web site. project manager at Max Bahr. “Planners and service level requirements Its inventory of some 40,000 items, would look at the store’s point-of- some of which carry the Max Bahr sale (POS) data and manually place Key Benefits brand, are sourced globally and cover replenishment orders.” Each store has - Customer service levels of 99 percent everything the “do-it-yourselfer” needs a POS system that runs on an IBM or higher for the home and garden, including eServerTM iSeries™ server. However, - Over 90 percent of replenishment wallpaper, carpets, wood, electrical not all stores had very good and proposals turn into orders without equipment, tools, DIY manuals, garden experienced planners — often resulting any review furniture and a huge assortment of in poor availability and high opportunity - Improved demand forecasting, fewer plants and flowers. A central warehouse costs. Moreover, it was expensive planners and lower replenishment replenishes 30 percent of the products employing so many planners. costs Page 25 of 60
  26. 26. Answering the challenge Nightly replenishment runs © Copyright IBM Corporation 2006 In 2003, after considering a number Today, the Dynamic Inventory IBM Global Services Route 100 of alternatives, Max Bahr turned to Optimization Solution performs Somers, NY 10589 IBM, which proposed the IBM Dynamic eighty to ninety percent of Max Bahr’s U.S.A. Inventory Optimization Solution. After inventory replenishment. There is no Printed in the United States of America a one-month requirements study, the ERP system involved. 12-06 IBM team began incorporating the All Rights Reserved business rules needed by the solution Shortly after midnight, the stores IBM, the IBM logo, eServer and iSeries are to forecast demand, calculate safety transfer POS data — approximately trademarks or registered trademarks of Inter- stock, batch sizes and reorder points, 15–20 million transactions — to a national Business Machines Corporation in the and compute replenishment order central database and add them to a United States, other countries or both. proposals for the entire inventory. rolling repository that contains a two- Other company, product and service names year history of every product in every may be trademarks or service marks of others. “We wanted IBM to build in as much store. Using this transaction dataset, References in this publication to IBM products business logic as possible, so that the Dynamic Inventory Optimization or services do not imply that IBM intends to replenishment orders could be sent to Solution performs a two-echelon make them available in all countries in which the warehouse and to suppliers without analysis, looking first at the outlets IBM operates. ever being reviewed by a planner,” and then at the central warehouse This document is based on information pro- explains Schöning. That required to generate forecasts and order vided by Max Bahr and illustrates how one writing client-specific modules that proposals. Each of the approximate 85 organization uses IBM products. Many factors have contributed to the results and benefits considered variables such as maximum runs of the solution takes around one described; IBM does not guarantee compa- shelf or bin space for an item, minute, constituting up to four million rable results elsewhere. upcoming promotions, supplier lead replenishment decisions. The entire times, free shipping on orders above a process is completed by seven o’clock certain amount, product assortments in the morning, before the planners and odd lots. arrive at work. Any replenishment issues found by the solution go on For more information an exception report to be manually The IBM Dynamic Inventory Optimization “The [solution] has become one of resolved. Solution is part of the IBM Center for the most important business tools we The results from the Max Bahr-IBM Business Optimization’s solution portfolio, which includes solutions in the areas of have for positively impacting sales collaboration are impressive. Customer risk management, marketing investment, service levels at the stores have and keeping us competitive.” reached an average of 99 percent or pricing and supply chain management. The center brings together IBM’s industry more. What’s more, over 90 percent of and process expertise, hardware and — Anja Schöning, project manager, the order proposals are automatically business performance software, and the Max Bahr turned into actual orders to suppliers company’s deep computing and advanced without any review by, what is now, analytics capabilities to tackle the most only a handful of planners in the difficult challenges facing business and “The capabilities and flexibility of company. government. the Dynamic Inventory Optimization Solution allowed us to respond quickly “The Dynamic Inventory Optimization To learn more about IBM Global Business and effectively to Max Bahr,” says Solution has become one of the most Services, contact your IBM sales Richard Boedi, an IBM researcher on important business tools we have for representative, or visit: the team. “Within months of starting positively impacting sales and keeping the project, we were managing us competitive,” concludes Schöning. ibm.com/bcs inventory at four outlets and with one major supplier.” To learn more about the IBM Dynamic Inventory Optimization Solution and the IBM Center for Business Optimization, contact your IBM representative or visit: ibm.com/services/cbo BCC00102-USEN-01 Page 26 of 60
  27. 27. Let’s build a smarter planet METRO Group tracks meat products from production to point of sale. Overview In Germany, there have been several incidences of moldy meat being sold by different meat wholesalers. Although this had not been a problem METRO Group Düsseldorf, Germany for METRO Group, customers were aware of fresh meat problems at www.metrogroup.de other retailers. Industry • Retail Challenge Products METRO Group’s retail store meat tracking system was entirely manual. Expiration • IBM Global Business Services date monitoring was done visually, a time-consuming and error-prone process. • IBM InfoSphere™ With 800 to 1,000 meat trays inside the self-service counter of a single store at Traceability Server any given time, METRO Group needed to gain a better grasp of the inventory management of its meat products, while working to improve customer food safety. Solution Working with IBM Global Business Services in a first-of-a-kind project, METRO Group used IBM InfoSphere™ Traceability Server software as the backbone of its new meat-tracking solution. Meat trays are tagged with radio frequency “METRO Group now has identification tags. Each meat tray is visible during its complete in-store life- cycle, from packaging to point of sale. unprecedented transparency in its in-store meat processes Readers throughout the lifecycle of the meat tray continuously update the inventory of the real,- Future Store management system. Data is stored by the IBM InfoSphere Traceability Server in Tönisvorst.” software, enabling improved inventory management and helping ensure product — Dr. Gerd Wolfram, Head of CIO-Office, and consumer safety. IBM Global Business Services provided process consulting, METRO AG dashboards and the architecture for the solution, as well as customization. Benefits • Improves inventory management with demand-driven forecasting, reducing overstocks and write-offs • Increases consumer safety by sending system alerts for expired or nearly expired products, which can then be removed from inventory • Is easily scalable and reusable, thanks to standardized interfaces, enabling METRO Group to deploy track-and-trace solutions in other sales lines as well Page 27 of 60
  28. 28. © Copyright IBM Corporation 2009 IBM Corporation 1 New Orchard Road Armonk, NY 10504 U.S.A. Produced in the United States of America November 2009 All Rights Reserved IBM, the IBM logo, ibm.com, and Smarter Planet are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this docu- mentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this infor- mation is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any dam- ages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warran- ties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. This document illustrates how one organization uses IBM products and services. Many factors have contributed to the results and benefits described; IBM does not guarantee comparable results elsewhere. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. GBC03030-USEN-00 Page 28 of 60
  29. 29. Let’s build a smarter planet Moosejaw Mountaineering reaches new heights of customer engagement through social commerce. Overview n The Need To thrive in the highly competitive market for outdoor adventure gear, Moosejaw Mountaineering needed to create a customer experience that would engage a customer community whose appetite for extreme sports is matched by a hunger for commu- nication and collaboration. n The Solution Based in Madison Heights, Michigan, Moosejaw Mountaineering, Inc. is one of the nation’s leading outdoor-adventure retailers. With seven retail locations employing 250 in Michigan and Chicago, the Moosejaw sought to make its site company’s online retail, Moosejaw.com, was rated a top 50 Web site according to Internet Retailer. the go-to destination for young, hip high school and college students n Key Benefits Online commerce has changed a and for hard-core outdoor enthusi- • Increased revenue from an lot in the decade since it entered asts by embedding rich community expected increase in conversion into the cultural mainstream. Driven features into its online commerce rate (based on an initial increase by relentlessly rising customer experience, thus becoming one of to 50 percent) expectations, sites have become the first outdoor-adventure retail- • Expected increase in customer loy- easier to use, merchandising has ers to make multichannel “social alty and word-of-mouth expansion improved and, to put it simply, com- commerce” the cornerstone of its through a more engaging and col- panies have gotten better at online growth strategy. laborative online retail experience commerce because they’ve come • Ability to deliver seamless to understand its many nuances. messaging, programs and In spite of these changes, however, customer experience across the essential character of online all channels retail – namely, the extension of tradi- • Expected increase in customer tional retail practices to the Internet satisfaction through richer, more channel – has remained largely informative pre-purchase support unchanged. So, too, have some basic (e.g., customer ratings) and long-held assumptions about the way consumers buy and what they are looking for from an online retailer. Page 29 of 60

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