TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
TBR EVENT PERSPECTIVE
Moments, marketing and mass: IBM’s
formula for the ...
TBR
www.tbri.com
customer experiences and, in turn, revenue streams. The company expanded upon its announcements in Januar...
TBR
www.tbri.com
Australia, which TBR expects will enable IBM to work more closely with large enterprise clients on tailor...
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Moments, marketing and mass: IBM’s formula for the IT future

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“Moments matter.” Marketing matters. Mass matters. Nearly every speaker on the main stage at IBM’s Smarter Commerce World Summit used the tagline “Moments matter,” reflecting how persuasive and persistent good marketing can be. Supporting the marketing moments, however, was a mass of IBM channel partners, innovation partners and customers, demonstrating that IBM’s strategic adjustments and realignments come within the massive IBM ecosystem — hardware, software, services, cloud, analytics, everything IT and now everything marketing. Even with disparate points of view (and revenue streams), partners and customers within the ecosystem repeated two core insights during the summit: customers drive business strategy, impacting business models; and innovation backed by R&D separates IBM, especially when leveraged with scale.

This report is a special commentary by TBR Analysts providing insight into IBM's formula for the IT future.

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Transcript of "Moments, marketing and mass: IBM’s formula for the IT future"

  1. 1. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C. TBR EVENT PERSPECTIVE Moments, marketing and mass: IBM’s formula for the IT future IBM Smarter Commerce Global Summit 2014 Tampa, Fla., May 13 to 14, 2014 Authors: Patrick Heffernan (patrick.heffernan@tbri.com), IT Services Practice Manager/Principal Analyst Cassandra Mooshian (cassandra.mooshian@tbri.com), Cloud Analyst Jennifer Hamel (jennifer.hamel@tbri.com), Professional Services Analyst TBR Perspective “Moments matter.” Marketing matters. Mass matters. Nearly every speaker on the main stage at IBM’s Smarter Commerce World Summit used the tagline “Moments matter,” reflecting how persuasive and persistent good marketing can be. Supporting the marketing moments, however, was a mass of IBM channel partners, innovation partners and customers, demonstrating that IBM’s strategic adjustments and realignments come within the massive IBM ecosystem — hardware, software, services, cloud, analytics, everything IT and now everything marketing. Even with disparate points of view (and revenue streams), partners and customers within the ecosystem repeated two core insights during the summit: customers drive business strategy, impacting business models; and innovation backed by R&D separates IBM, especially when leveraged with scale. Overall, TBR believes IBM’s Smarter Commerce strategy integrates the company’s strengths in technology, consulting and client-driven research, differentiating IBM from competitors in the crowded digital transformation market. The summit demonstrated how IBM pulls each of these three levers to enhance its portfolio of marketing solutions. Event Overview TBR attended the IBM Smarter Commerce Global Summit (SCGS) 2014 in Tampa, Florida, on May 13 and 14, 2014. Built around the theme “Moments matter,” the conference highlighted IBM’s ability to optimize clients’ marketing and customer, partner and supplier engagement programs through a combination of the company’s software, services and research capabilities. General sessions included remarks from IBM executives and its customers, providing practical examples of how data insights from analytics solutions enable organizations to improve
  2. 2. TBR www.tbri.com customer experiences and, in turn, revenue streams. The company expanded upon its announcements in January and March regarding the new Interactive Experience unit and unveiled the IBM ExperienceOne portfolio of customer engagement solutions. IBM and its business partners exhibited solutions built on IBM’s offerings such as WebSphere, Sterling and Aspera in the conference’s Solution Center. TBR also attended keynote presentations and one-on-one meetings with several IBM executives. Impact and Opportunities ExperienceOne addresses customer demand for actionable insights into the consumer mindset On the first full day of the summit, IBM publicly announced its ExperienceOne portfolio of integrated on-premises and cloud-based customer engagement solutions to improve the customer experience by aligning its marketing, sales and services capabilities. The ExperienceOne portfolio will consist of a suite of ten pre-defined applications (or engagement solution sets) that are backed by its WebSphere Commerce, Customer Digital Experience and Enterprise Marketing Management (EMM) software and IBM’s consulting, systems integration and digital agency services out of its Interactive Experience practice. TBR believes IBM, as a market maker, is, again, bridging the gap between digital and physical environments to improve the customer experience. With IBM’s standing as a leading technology provider, and its continued success in its core markets, IBM is well positioned, arguably best positioned at the present time, to capitalize on the opportunities generated by global demand for timely, actionable insights into the customer psyche. IBM customers at SCGS alluded to a fundamental shift in business strategy — more CEOs are recognizing that consumers are critical players in their companies’ success — and as a result, IBM has taken strides to evolve with new business models and the convergence of the IT and digital landscapes. ExperienceOne ties together recent IBM acquisitions, most notably of Tealeaf (June 2012), Xtify (October 2013) and Silverpop (closed May 12, 2014) with IBM’s Interactive Experience practice, utilizing a total of over $3 billion in investments to create the portfolio. As part of ExperienceOne, IBM offers ten pre-built solutions, three of which the firm highlighted at the summit:  Understand Your Customers (with customer analytics)  Deliver Empowering Digital Experiences (with customer digital experience)  Maximize Sales, Profit and Shopper Loyalty (with omnichannel merchandise optimization)  Ignite and Grow Customer Relationships (with omnichannel marketing)  Curate Meaningful Customer Interactions (with real-time personalization)  Convert Digital Prospects to Loyal Customers (with digital marketing)  Serve and Delight Your Customers (with customer experience for service)  Reinvent and Automate Complex B2B Sales Processes (with B2B commerce)  Deliver Exceptional Experiences Across All Channels (with omnichannel customer engagement)  Personalize the Store Experience (with store of the future) Further utilizing acquired platforms and technologies, IBM is leveraging SoftLayer’s cloud infrastructure alongside its ExperienceOne software and consulting services to offer three cloud business solutions that aid in the purchase and deployment stages of ExperienceOne. Customer Data as a Service (CDaaS) enables the combination of internally- and externally-sourced customer data, Customer Analytics as a Service (CAaaS) better enables clients to identify customer buying trends and Digital Commerce as a Service (DCaaS) improves the digital customer experience and speeds up time to market for IBM customers. IBM prioritizes research investments in Interactive Experience, establishing a global network of labs to facilitate solution co-development with clients and attracting top talent In March, IBM committed $100 million to expand its consulting capabilities in customer experience and design, including establishing 10 new Interactive Experience labs worldwide to add to the four existing facilities in the U.S. and Canada. The labs will be located in the U.S., Mexico, Brazil, the U.K., the Netherlands, India, China, Japan and
  3. 3. TBR www.tbri.com Australia, which TBR expects will enable IBM to work more closely with large enterprise clients on tailored customer experience solutions. In March 2013, the company transitioned 100 IBM Research personnel to the Interactive Experience unit, which are now embedded across the labs. IBM plans to co-locate resources from other units, including GBS, Software, Mobile, Design and Watson, in varying combinations at these labs to provide clients with a full range of strategy, analytics and digital marketing solutions. IBM announced six new offerings earlier this year — Influence Analysis, Life Event Detection, Psycholinguistics Analytics, Behavioral Pricing, Intelligent Customer Profiles and Customer Identity Resolution — each of which resulted from client-driven research efforts. In addition to solutions development, IBM intends to recruit experienced professionals and talented graduates to fill 1,000 new roles for the Interactive Experience unit. During the summit, IBM executives emphasized the structural differences between the traditional IBM organization and the Interactive Experience division. For example, where IBM would normally separate sales and delivery functions in the Interactive Experience unit, the Client General Manager will remain involved throughout a client engagement. In light of this cultural shift, IBM seeks to attract individuals with marketing strategy experience, design expertise and technical capabilities to implement digital solutions with rapid prototyping support from the labs. TBR believes IBM’s unrivaled research resources will set the Interactive Experience unit apart from strategy firms such as McKinsey, Bain and BCG, and digital solutions vendors such as Accenture and Deloitte, by combining marketing advisory services and IP-driven technology capabilities, most notably Watson. These assets not only differentiate IBM in the eyes of clients, but also with prospective employees, as the company has hired from traditional consulting and system integrators such as Accenture and Capgemini, as well as digital agencies such as Ogilvy to build the Interactive Experience unit. We believe the planned global network of Interactive Experience labs enhances IBM’s image as an innovative and collaborative workplace, which will continue to attract top talent from diverse backgrounds. Though the company reserves solution co-development resources for top accounts to protect its IP, we expect IBM will continue to incorporate feedback from those engagements into repeatable customer analytics offerings for the Interactive Experience portfolio that it will deliver to smaller clients on the SaaS model through the IBM Cloud Marketplace. Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com. ©2014 Technology Business Research Inc. This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.

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