September 2011Smarter CommerceRedefining the value chain in the age of the customerPresenter: Scott Lewis - IBM           ...
We have entered the age of the empowered customer Customers now have        Social networking and    Customer             ...
Disruptive forces signal an end to business as usualIndividuals                                       “Time is ticking for...
…with B2C and B2B commerce models convergingB2C               Market                         Sell                        F...
Power has shifted to the customer - compressingmargins and changing paradigms    In this new era, businesses need to:    ...
At IBM we call the path forward: Smarter Commerce Smarter Commerce is a            It maximizes the insight   It capitaliz...
Smarter Commerce focuses on three dimensionscentered around the customer                                                  ...
8Smarter Commerce can help transformevery phase of the commerce cycle      Buy                                            ...
IBM’s integrated portfolio for Smarter Commerce                                        VALUE CHAIN STRATEGY AND ENABLERSIn...
How the empowered customer is changing how you                     “Buy” Empowered Customers are:                         ...
Supplier relationships are changingMore than 85%      $15+ to process      Competitive      70% of supply           64% of...
Companies need new capabilities to capitalize  Analysis of   Seamless and     Secure, efficient,      End-to-end          ...
IBM defines the Supplier Integration & ManagementLifecycle   Supplier Integration and Management enables enterprises to co...
Supplier Integration and Management enables you to:    Drive business growth and cost savings by optimizing your supplier ...
Supplier Integration and Management helps continuouslyimprove every phase of the supplier lifecycleAllows                 ...
Projects to make youmore successful…  Automate Procure-to-Pay Process -  delivers process integration across an agile  sup...
Commerce begins with your supply chain partners: Haveyou automated the process? Do you know the cost of doing business wi...
There is opportunity in automating supplier integration68%                           $15 - $20             $93 billionof e...
The benefits of automating 100% of your                       Buyprocure-to-pay processes are... Reduce operational costs...
IBM Sterling B2B Integration Solutions IBM Sterling B2B Process Applications                IBM Sterling                  ...
Projects to make youmore successful…  Build a Supplier Portal - Streamlines the  way suppliers access and act on informati...
Deliver on customer’s expectations by simplifying suppliercollaboration: Have you optimized the process? Do you know the ...
There is opportunity in supplier collaboration68%                           50%                     $1.2 trillionof execut...
The benefits of establishing a supplier portal                     Buyare... Reduce operational costs   – 10%-30% reducti...
IBM Collaboration Solutions                         from on-boarding to personalized information sharing                  ...
Projects to make youmore successful…  Refine Supplier Compliance Management-  Detect and resolve compliance issues as they...
Supplier Compliance is key to efficient suppliermanagement: What level of visibility can you provide yoursuppliers? How d...
As companies strive to reduce costs, improving supplierperformance is now a best practice          45%   Respondents exper...
The benefits of real-time supplier compliance                      Buymanagement... Improve supplier performance through ...
Enable supplier communication andcollaboration using IBM Sterling Supply ChainVisibility Vendor Compliance                ...
IBM’s integrated portfolio for Smarter Commerce                                        VALUE CHAIN STRATEGY AND ENABLERSIn...
Consumer expectations are driving business changesEmpowered Consumers are:                                   Forcing chang...
B2B customer relationships are changing     Partner              Smaller                Velocity of            Getting clo...
IBM Customer Integration & Collaboration enablesyou to…              Connect                    Automate                Co...
… and leverage social media in B2B customer interactions                                                 © 2011 IBM Corpor...
Projects to make youmore successful…  B2B Customer Engagement optimizes  customer interactions                            ...
Commerce is not just about consumers, Have you engagedyour B2B customers? How are you leveraging mobile and social techno...
There is opportunity in B2B customer engagement43%                        32%                     5.3 Billionof baby boome...
The benefits of better B2B customerengagement are...                                                                  Sell...
© 2011 IBM Corporation
© 2011 IBM Corporation
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Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

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Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

  1. 1. September 2011Smarter CommerceRedefining the value chain in the age of the customerPresenter: Scott Lewis - IBM © 2011 IBM Corporation
  2. 2. We have entered the age of the empowered customer Customers now have Social networking and Customer This is changing unlimited access to mobile commerce expectations of the entire way information and can have dramatically service, price and products are sourced, instantly share it with changed the dynamic delivery is soaring. manufactured and the world between buyer and distributed—and seller. making business more complex than ever. 95 million 75% $93 billion Number of tweets sent Percentage of people who Amount in sales missed due via Twitter each day believe companies don’t tell to out of stock inventory the truth in advertisements © 2011 IBM Corporation
  3. 3. Disruptive forces signal an end to business as usualIndividuals “Time is ticking for pure product The connected consumer companies. They need to become The networked workforce experience providers.” The empowered citizen Consumer Electronics, EuropeEnterprises "We seem to have more data but our Evolved business models information is worse, as it is more Optimized digital operations difficult to sift out what information is Connected enterprise most important.” CEO, Electronics Manufacturing Services, North AmericaIndustries Value migration “We need to do a better job at finding a Value chain volatility way to use this information. The value Customer-insight driven innovation chain needs to be connected to bring the most value to our customers.” Electronics company CEO, Canada Source: IBV Analysis © 2011 IBM Corporation
  4. 4. …with B2C and B2B commerce models convergingB2C Market Sell Fulfill Configure Research / Bundles of Social Drop-Ship Product Personalization Visibility Media Products & strategies Reviews ServicesB2B Market Sell Fulfill B2B customer (buyer) expectations “I get product ratings & reviews for are set by B2C sites – they want a a $20 book – why not for a $1,000 rich user experience too industrial battery assembly?” B2B sellers are adopting B2C-like “How do I offer product marketing techniques to shift from recommendations to my B2B “order-taking” to “order-making” customers?” B2B sellers want to use social networks to “How can I leverage the power of promote their brands; buyers want feedback social networks with my B2B from the community on products and services customers?” © 2011 IBM Corporation
  5. 5. Power has shifted to the customer - compressingmargins and changing paradigms In this new era, businesses need to:  Understand and anticipate customer behavior and needs based on customer insights across all channels  Adapt sourcing and procurement based on customer demand and optimize supplier interactions across extended value chains  Market, sell and fulfill the right product and service at the right price, time and place  Service customers flawlessly, predict and drive customer loyalty © 2011 IBM Corporation
  6. 6. At IBM we call the path forward: Smarter Commerce Smarter Commerce is a It maximizes the insight It capitalizes on strategic approach that generated through social and mobile places the customer at customer interactions commerce the center of your business operations It synchronizes your entire value chain to It drives growth by enhancing, deliver consistent and extending, and redefining the predictable outcomes value you provide Customer It increases margins by It improves collaboration boosting efficiency at every and visibility for your stage of the commerce cycle customers & partners © 2011 IBM Corporation
  7. 7. Smarter Commerce focuses on three dimensionscentered around the customer Customer Value Strategy Customer Insight In turn, you must re-think In today’s world of instant how your customers define value, and the changes you business, you need deep must make to your value insights, in real-time that you chain so you can deliver can turn into immediate action exactly what your customers want - profitably CustomerCustomer & Partner Engagement You need an approach that allows you to more effectively connect, collaborate, conduct …increasing the value companies generate commerce and create a for their customers and partners in a rapidly differentiated customer changing digital world experience © 2011 IBM Corporation
  8. 8. 8Smarter Commerce can help transformevery phase of the commerce cycle Buy MarketDrives intelligent, Insight Strategy Creates adaptive and personalized and optimized Buy Market relevant offersextended supply with unified Sourcing, controlling Targeted andchains based on personalized cross-channel and procurement of customer goods and services marketing across all marketing demand customer interactions Customer Service Service Sell Sell Anticipates Enables Servicing Selling and fulfillment behavior and customers and customer needs of products and delivers flawless across all services across partners to customer service interaction all channels buy what they across all channels want, when and channels where Engagement © 2011 IBM Corporation
  9. 9. IBM’s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND ENABLERSInnovation and business value Market and customer mgmt Operating and Organization ModelsInnovating and aligning business models to Aligning sales, marketing and operations Designing operations, supply chain and the drive value to the customer to engage with customers organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service • Supplier Integration & • Customer Awareness & Analytics • Cross-channel Selling • Delivery, Service, & Support Management • Social Media Marketing • Distributed Order Management • Customer Self-Service • Supply Chain Optimization • Brand Experience • Customer Integration & • Reverse Logistics • Logistics Management • Cross-channel Campaign Mgmt Collaboration • Case Management • Payments and Settlements • Digital Marketing Optimization • Fulfillment • Marketing Resource Mgmt • Store Solutions • Payments & Settlements Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) focused on agility, integration and automation to drive relevant business outcomes © 2011 IBM Corporation
  10. 10. How the empowered customer is changing how you “Buy” Empowered Customers are: It’s changing the way you “buy” Customer Increasing price pressure due to pricing  Deliver the highest quality products knowledge of competitive products with lowest costs and on time Expecting instant product availability  Easily share information across internal systems and connectivity with Expecting quick new/enhanced product suppliers introductions Demanding customizable product  Collaborative environment to capture, configurations evaluate, process and retain supplier and product information  Detect and resolve compliance issues as they happen, and predict before they happen  Continually analyze and refine the “buying process” © 2011 IBM Corporation
  11. 11. Supplier relationships are changingMore than 85% $15+ to process Competitive 70% of supply 64% of of companies a manual pressures of chain officers organizations expect the document and today’s economy report the lack of don’t know or complexity of $53 to reconcile demand more visibility has a don’t measure their supply manual errors information and significant impact the average costchains to grow flexibility on their supply to manage asignificantly by chain and 55% supplier annually 2012 report cost containment concerns © 2011 IBM Corporation
  12. 12. Companies need new capabilities to capitalize Analysis of Seamless and Secure, efficient, End-to-end End-to-end supplier secure and consistent visibility from performancecommunity and integration of means of order creation to management spend for key business accessing and payment and and advanced efficient processes with exchanging tracking supply analytics to drive purchasing suppliers information with chain events in continuous processes suppliers real-time improvements with supplier community © 2011 IBM Corporation
  13. 13. IBM defines the Supplier Integration & ManagementLifecycle Supplier Integration and Management enables enterprises to continuously improve supplier relationships with more efficient supplier sourcing, automated and optimized information movement, universal access to that information… and the use of business analytics to monitor, measure, and improve performance and compliance. © 2011 IBM Corporation
  14. 14. Supplier Integration and Management enables you to: Drive business growth and cost savings by optimizing your supplier community through business analytics, technologies and services Synchronize your supplier community and reduce risk through B2B integration and automation Improve supplier performance through collaboration, visibility and business analytics © 2011 IBM Corporation
  15. 15. Supplier Integration and Management helps continuouslyimprove every phase of the supplier lifecycleAllows Provides seamlesscompanies to B2B and secureimprove and re- Sourcing integration of keyevaluate their Integration business processespurchasingactivities andsuppliersProvides Performancecompanies Enables companies towith end-to- Analytics better manage theirend supplier and Collaboration supplier interactionsperformance Compliance and significantlymanagement improve relationshipsand business between vendors andanalytics suppliers © 2011 IBM Corporation
  16. 16. Projects to make youmore successful… Automate Procure-to-Pay Process - delivers process integration across an agile supply chain © 20112011 IBM Corporation © IBM Corporation
  17. 17. Commerce begins with your supply chain partners: Haveyou automated the process? Do you know the cost of doing business with suppliers manually? What is the cost of reconciling errors introduced during manual processing? Do you have the confidence in your supply chain to compete and win new business? Can your suppliers see into your supply chain? Bottom line: A comprehensive approach to supplier integration is critical to customer satisfaction and your margins © 2011 IBM Corporation
  18. 18. There is opportunity in automating supplier integration68% $15 - $20 $93 billionof executives report that Is the cost of Amount in sales missed dueintegration challenges manually processing to out of stock inventoryimpede collaborative a customer orderrelationships with partners © 2011 IBM Corporation
  19. 19. The benefits of automating 100% of your Buyprocure-to-pay processes are... Reduce operational costs Improve service level agreements with customers and partners Compete and win new business through an agile supply chain Make it easier to do business with your company © 2011 IBM Corporation
  20. 20. IBM Sterling B2B Integration Solutions IBM Sterling B2B Process Applications IBM Sterling Pre-connected partners B2B Cloud Services Customers Suppliers IBM Sterling B2B Gateways IBM Sterling Transformation Engines Partners Carriers Banks © 2011 IBM Corporation
  21. 21. Projects to make youmore successful… Build a Supplier Portal - Streamlines the way suppliers access and act on information and strengthens relationships © 20112011 IBM Corporation © IBM Corporation
  22. 22. Deliver on customer’s expectations by simplifying suppliercollaboration: Have you optimized the process? Do you know the cost of doing business with suppliers manually? Can you exchange sales and inventory information with suppliers to ensure and predict appropriate inventory replenishment levels? Can you quickly publish accurate, current product information across channels? How long does it take you to onboard new suppliers? What is the impact on your business? Do you have a way to personalize content for your top suppliers? Are your suppliers able to quickly and easily manage their own users on your site? Bottom line: A robust supplier portal can allow you to better manage supplier interactions and significantly improve supplier relationships © 2011 IBM Corporation
  23. 23. There is opportunity in supplier collaboration68% 50% $1.2 trillionof executives report that Of businesses plan to Value of excess merchandiseintegration challenges adopt more stockpiled in supply chainsimpede collaborative collaborative configured for long leadrelationships with partners times - Goldman Sachs sourcing models © 2011 IBM Corporation
  24. 24. The benefits of establishing a supplier portal Buyare... Reduce operational costs – 10%-30% reduction in operational costs Make it easier to do business with your company – Reduce erroneous payments by up to 75% Onboard new suppliers quickly and easily – Up to 50% reduction in contract negotiation cycle time Improve service level agreements with suppliers Compete and win new business through an agile supply chain © 2011 IBM Corporation
  25. 25. IBM Collaboration Solutions from on-boarding to personalized information sharing forms Real-time information concept development sharing supplier trade allowances - Contracts, finance communications - Inventory, logistics contracts Supplier Maintenance product information Supplier Portal orders - Add new members supplier pricing - Manage users contracts Customized Reports trade allowances product information - Sales - Performance purchasing/ Supplier On-Boarding procurement ERP TMS PIM/MDM - Sample forms• Pre-built, customizable collaborative solution speeds supplier portal deployment• Self-service for suppliers including supplier maintenance, access to standard documents and customized reports• Quickly publish accurate, current product information across channels• Streamline content publishing by putting into the hands of the SMEs• Outsource procurement operations via on-shore, near-shore or off-shore resources and IT solutions © 2011 IBM Corporation
  26. 26. Projects to make youmore successful… Refine Supplier Compliance Management- Detect and resolve compliance issues as they happen, and predict before they happen. © 20112011 IBM Corporation © IBM Corporation
  27. 27. Supplier Compliance is key to efficient suppliermanagement: What level of visibility can you provide yoursuppliers? How do you identify suppliers worldwide who are not compliant? How do your suppliers rate on performance? How do you measure their performance? How do you notify and resolve chargebacks or SLA penalties with your suppliers? Can your accounts receivable team quickly resolve supplier disputes? How much of your PO, SO and shipment information resides in different systems? Can you provide intelligible and actionable business data to your suppliers? Bottom line: Establishing a single point of access for all supplier content and communications can reduce risk, improve cycle times, reduce costs, support growth and facilitate efficient supplier management © 2011 IBM Corporation
  28. 28. As companies strive to reduce costs, improving supplierperformance is now a best practice 45% Respondents experienced 50% 41% Respondents that Respondents have a supply chain disruption experienced supplier experienced a disruption within the past 12 months failure also lost an estimate of over $1 Million © 2011 IBM Corporation
  29. 29. The benefits of real-time supplier compliance Buymanagement... Improve supplier performance through real-time non- compliance detection, notification, and chargeback calculation Reduce costs by enabling non-EDI suppliers to comply with buyer configured compliance guidelines Improve efficiency in supply chain operations by automating the inbound receiving and compliance resolution process © 2011 IBM Corporation
  30. 30. Enable supplier communication andcollaboration using IBM Sterling Supply ChainVisibility Vendor Compliance IBM® Sterling Supply Chain IBM® Sterling Supply Visibility Vendor Compliance Chain Visibility Buyer Enterprise Supply Chain Finance IBM® Sterling Supplier Portal WarehouseNon-EDI Carrier Procurement Logistics Non-EDI Suppliers IBM® Sterling B2B Collaboration Network Another VAN EDI Suppliers EDI Carrier / Outsourced Logistics Provider © 2011 IBM Corporation
  31. 31. IBM’s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND ENABLERSInnovation and business value Market and customer mgmt Operating and Organization ModelsInnovating and aligning business models to Aligning sales, marketing and operations Designing operations, supply chain and the drive value to the customer to engage with customers organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service • Supplier Integration & • Customer Awareness & Analytics • Cross-channel Selling • Delivery, Service, & Support Management • Social Media Marketing • Distributed Order Management • Customer Self-Service • Supply Chain Optimization • Brand Experience • Customer Integration & • Reverse Logistics • Logistics Management • Cross-channel Campaign Mgmt Collaboration • Case Management • Payments and Settlements • Digital Marketing Optimization • Fulfillment • Marketing Resource Mgmt • Store Solutions • Payments & Settlements Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) focused on agility, integration and automation to drive relevant business outcomes © 2011 IBM Corporation
  32. 32. Consumer expectations are driving business changesEmpowered Consumers are: Forcing change to: Customer  Expecting instant product  Automation of manual processes to availability increase product availability  Using social network tools for  Monitoring and responding to social recommendations and validation channels for end consumers for product selection  Support upstream channels with  Demanding access to detail more content product information and reviews via multiple channels  Build socially-infused web experiences  Partners are carrying consumer for partners expectations into the B2B experiences © 2011 IBM Corporation
  33. 33. B2B customer relationships are changing Partner Smaller Velocity of Getting closer mandates partners rely on business to their require your costly manual processes are customers is a compliance business increasing high priority (Tech, SLA, processes Business rules) Big Box retailers Lack of technical Drive to lower dictate protocols, expertise is costing inventory is causing Quickly changing response times and order size to demand is driving money, $10+ to penalties decreasing, while the need for better process a manual order frequency is feedback loops. document increasing © 2011 IBM Corporation
  34. 34. IBM Customer Integration & Collaboration enablesyou to… Connect Automate Collaborate Become easier to Drive cost and Connect people do business inefficiency out of together to drive manual B2B innovation and processes revenue • Any standard, any • Business process • Mobile-enabled web protocol, any format management experiences • Full range of integration • Automated exception • Personalized portals patterns and handling • B2B process visibility technologies • Small partner and SLA • Community recruitment, automation management provisioning and onboarding • Security, governance and compliance © 2011 IBM Corporation
  35. 35. … and leverage social media in B2B customer interactions © 2011 IBM Corporation
  36. 36. Projects to make youmore successful… B2B Customer Engagement optimizes customer interactions © 20112011 IBM Corporation © IBM Corporation
  37. 37. Commerce is not just about consumers, Have you engagedyour B2B customers? How are you leveraging mobile and social technology for your dealers/distributors? Can your partners help each other, instead of just depending on you? What other paths to market could you enable to sell more products and services? Bottom line: Connect people together to drive innovation and revenue © 2011 IBM Corporation
  38. 38. There is opportunity in B2B customer engagement43% 32% 5.3 Billionof baby boomers (55-64) of instant messages Mobile subscriptions by theuse social media in Dec. were in enterprises end of 2010 (almost 80% of2010, up from 9% in Dec. versus public in 2009 the world population)2008 © 2011 IBM Corporation
  39. 39. The benefits of better B2B customerengagement are... Sell Reduce operational costs (one customer reduced call center support calls by 30%) Collaboration that can drive innovation and new revenue streams (a customer has 31,000 dealer users who share ideas and support each other) Make it easier to do business with your company (customer enables web experience to mobile devices) © 2011 IBM Corporation
  40. 40. © 2011 IBM Corporation
  41. 41. © 2011 IBM Corporation

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