We can provide a new dimension in computing for retailers.

1. George Mattathil -
5/2/2011
IBM zEnterprise System
business value for the retail industry
Smarter systems for a smarter planet™
Posting reference 727
© 2010 IBM Corporation

2. IBM is helping retailers address critical imperatives.
IBM’s retail industry value proposition
 IBM collaborates with retailers to help improve customers’ shopping experiences,
optimize merchandising and supply chains, and drive operational efficiencies.
 We offer integrated hardware, software and service solutions that are proven to
provide the fastest time to value with the least risk for retailers.
SMARTER SHOPPING EXPERIENCE—Personalizes the shopper interaction,
enables shoppers to engage on their own terms, and creates excitement and
motivation for those shoppers
SMARTER MERCHANDISING AND SUPPLY CHAIN—Delivers value to targeted
customers by predicting their needs and wants, to develop and deliver desired
products and services while optimizing sales, profits, inventory and asset utilization
for the retailer
SMARTER OPERATIONS—Drives operational excellence through cost-efficient
management of people, processes and technology, while tightly managing
performance and maintaining the ability to rapidly modify processes and
infrastructure to capture opportunities
IBM’s industry value proposition isenhancedwith the introduction of
the new IBM®zEnterpriseTM System.
2 © 2010 IBM Corporation

3. IBM zEnterprise System helps IBM deliver against retail industry
imperatives.
Deliver a smarter Build smarter operations Develop smarter merchandising
shopping experience and supply chains
1 2 3
Example: IBM zEnterprise™ System can help advance retailers’ Build Smarter Operations
imperative by helping to reduce IT costs.
Independent findings indicate that retailers can realize significant economic efficiencies with
mainframe based infrastructure …
44 percent
lower cost per credit
card transaction
25 percent
lower cost per retail store
“… in the long run the marketplace rewards those that make the
optimum use of the right computing resourcesin the right way
as evidenced by business performance”
— Dr. Howard Rubin, CEO and Founder Rubin Worldwide
3 © 2010 IBM Corporation

4. Retail industry business issues are addressed by new IBM
zEnterpriseTM System advantages.
Build smarter
Retail Deliver a smarter operations
Develop smarter
industry shopping experience
merchandising and
imperatives Operational advantage supply chains
 Large scale consolidation to reduce cost of energy, facilities
and software licenses by up to 90 percent
 Deliver 35 to 65 percent performance
improvement over IBM System z10TM
Business advantage
 Turn information into insightwith up to10-times
improvement in performance for complex queries
 Create a business aligned infrastructure capable of
processingbillions of instructions per second
Organizational advantage
 Integrate and centralize management to reduce
laboroverhead by up to40 percent
 Up to 100 percent resource increase available to
deliver new innovation
4 © 2010 IBM Corporation

5. Key features of the new IBM zEnterpriseTM System enable
these advantages.
Operational advantage Business advantage Organizational advantage
 Large scale consolidation to  Turn information into insightwith up  Integrate and centralize
reduce cost of energy, facilities to10-times improvement in management to reduce
and software licenses by up to performance for complex queries laboroverhead by up to40 percent
90 percent  Create a business-aligned  Up to 100 percent resource
 Deliver 35 to 65 percent infrastructure capable of increase available to deliver new
performance improvement over processingbillions of instructions innovation
IBM System z10TM per second
Achieved by
 Consolidation of databases and  Overall reduction in system
access to information helps reduce  Processing directed automatically management resources based on
redundancy of data and resulting to best fit-for-purpose system zEnterprise Unified Resource
number of servers helps increase performance and Manager
reduce servers
 Reductions in servers and data  Unified development tools for all
duplication and reductions in ETL  Immediacy of access to data is environments helps enable skill
help reduce software license costs enhanced substantially as ETL transfer and improves developer
across platform is reduced or
 Fit-for-purpose processors can productivity by up to 20 percent
eliminated
reduce cost of acquisition by up to  Centralized management of virtual
35 percent  In-memory capability for both servers across a heterogeneous
vector and columnar processing
 Fit-for-purpose storage can reduce pool with more than 100,000 virtual
storage total cost of ownership by servers in a single zEnterprise
up to 38 percent System
 IBM System z® in particular, and
IBM servers in general, require less
energy
ETL – Extract, Transform, Load
5 © 2010 IBM Corporation

6. The system of systems: built on best-in-class systems and
software technologies
Unifies IT for predictable outcomes demanded by retailers
Three new innovations of IBM zEnterprise™ System
IBM zEnterprise 196 (z196) zEnterprise Unified zEnterprise BladeCenter
Resource Manager Extension (zBX)
 Optimized to host large-scale  Unifies management of  Selected IBM POWER7 blades
database, transaction, and resources, extending IBM and IBM System x Blades* for
mission-critical applications System z qualities of service tens of thousands of AIX and
 The most efficient platform end-to-end across workloads Linux applications
for large-scale Linux  Provides platform, hardware  High-performance optimizers
consolidation and workload management and appliances to accelerate
 Capable of massive scale-up time to insight and reduce cost
 New easy-to-use z/OS V1.12  Dedicated high-performance
* All statements regarding IBM future direction and intent are subject to change or withdrawal without notice,
private network
6 and represents goals and objectives only. © 2010 IBM Corporation

7. Why does the IBM zEnterpriseTM System matters to retailers?
Single virtual infrastructure
 Next generation Multiple
channels
Deliver a smarter
e-commerce Customer App
shopping experience Database Server
with zEnterprise
 SAP enterprise
Develop smarter resource planning
merchandising and supply (ERP) / business
chains
applications with
zEnterprise
Single virtual infrastructure
 Real-time fraud
Build smarter operations detection with Claims Fraud Smart
Analytics
zEnterprise Processing Detection
Optimizer
7 © 2010 IBM Corporation

8. Why systems matter to retailers: We help provide next-generation e-
commerce.
Today IBM zEnterprise™ System
 New system design, new possibilities:
 Business challenges: – Helps simplify management of a multi-channel
– Provide seamless shopping experience solution across a single virtualized infrastructure
across all channels – Can handle unpredictable spikes in e-commerce
traffic with automated provisioning and workload
 Operational challenges: management
– Integrating across multiple siloed systems – Can reduce operational costs by up to 38 percent
– Avoiding system bottlenecks as transactions by integrating deployment of distributed platforms
spike through IBM zEnterpriseTM System1
– Scale without added complexity and cost 1Basedon IBM analysis of a large financial services company
datacenter with 10,000 distributed workloads
– Addressing potential security exposures
Single virtual infrastructure
Multiple
Multiple channels
channels
Application Customer Customer App
server farm database database server
8 © 2010 IBM Corporation

9. Why systems matter to retailers: We help provide near real-time
fraud detection.
Today zEnterprise
 Business challenges:  New system design, new possibilities:
– Identify fraud risks in real time across multiple lines – Real-time performance; claims processing
of business and payment channels (online transaction processing (OLTP) and fraud
(analytics) queries from same database
 Operational challenges: – Can speed fraud detection query times by up to
10x with Smart Analytics Optimizer1
– While data warehouse can detect trends, difficult to
prevent fraud in real time because data is copied in – One third less storage required when claims
bulk or batch mode (OLTP) and fraud (analytics) combined on IBM
zEnterpriseTM System; less risk2
– Ability to achieve real-time performance
– Risk, complexity and cost of multiple copies of data
Single virtual infrastructure
Claims Fraud Smart
Claims Fraud
processing detection processing detection Analytics
Optimizer
Data
extracts
(OLTP) (Analytics)
1 Based on internal IBM test results that reflect actual client queries
2 Internal IBM testing and modeling. Savings will vary by country.
9 © 2010 IBM Corporation

10. Why systems matter to retailers: We help provide enterprise
resource planning (ERP) / business applications.
Today IBM zEnterprise™ System
 Business challenges:  New system design, new possibilities:
– Delivery new business services fast – Run your applications where they
– Maximize application investment perform best
– Investment protection—runs current
 Operational challenges: applications and independent
software vendor (ISV) software
– Achieving the best price/performance
without change
possible
– Predictable service delivery
“Our retail customers really depend on information insight. Now with zEnterprise hybrid
capabilities SAP Merchandising applications become smarter applications that benefit from
the governance and management of this new system.”
— Craig Jonsson. Vice President of IBM Alliance for SAP
10 © 2010 IBM Corporation

11. Here is an example of a retail client using SAP Financials and IBM
zEnterpriseTM System.
Challenges and issues
 Coordination of application across platforms is resource intensive and vulnerable
to several points of impact.
 Too many network hops from one platform to another to get data
 Hardware microcode updates cannot be applied without an outage
 Different monitoring software tools per server type with different software process
for site failovers
The future with zEnterprise Business advantage
SAP Data Server on IBM DB2® IBM Ensure business controls, such as security and compliance,
z/OS® with Application Serving on p7 can be achieved on a consistent basis across the
Blades in zEnterprise BladeCenter® applications and platforms
Extension (zBX) integrated in a
zEnterprise system. Future exploration Organizational advantage
of enabling SAP Business Warehouse  Insulate application development teams from
Accelerator as an application running infrastructure technology
on x86.  Consolidation of skills through consistent tools
Operational advantage
 Ability to monitor and manage a critical application end to end from a workload view
 Ability to make adjustments in available resources, apply maintenance, manage
server availability and handle business peaks with true application insulation
 Better utilize assets across production and non-production environments
11 © 2010 IBM Corporation

12. IBM’s Retail Industry Framework is supported by an ecosystem of
key IBM Business Partners that are optimized on zEnterprise.
“With the launch of IBM zEnterpriseTM System, the
new management structure for heterogeneous
platforms can provide SAP customers with tight
integration of the infrastructure for their SAP business
solutions. Using this new environment, SAP
customers will have access to even more capacity
and considerably higher performance to meet their
growth requirements and deliver superior service to
their business.”
— Dr. Torsten Wittkugel, Vice President SAP DB/OS
Platform Development
Note: Partner shown is illustrative subset of our complete partner
ecosystem.
12 © 2010 IBM Corporation

13. Summary: We can provide a new
dimension in computing for retailers.
With IBM zEnterpriseTM System …
Management Multi-platform
integration integration  Retailers can reduce integration costs across
multiple platforms and across mission critical
multi-tier applications with the zEnterprise
hybrid capabilities and the new IBM
zEnterprise Unified Resource Manager
 Retailers can improve time to market and
turn customer information into insight with
IBM Smart Analytics Optimizer that delivers
up to 10-times improvement in performance
for complex queries
Stack
 Retailers can increase the security of
integration
sensitive data by extending the security
capabilities of zEnterprise to the
For more details:ibm.com/systems/zenterprise BladeCenter® Extension
Posting reference 727
13 © 2010 IBM Corporation