Mobile and social technologies are reshaping commerce by influencing customer expectations and behaviors. Customers want personalized, seamless experiences across all channels. Leading companies are taking an integrated approach to commerce that places the customer at the center and uses insights to optimize processes across the entire value chain from procurement to marketing to sales to customer service. IBM's Smarter Commerce solutions use analytics and cloud technologies to help companies anticipate customer needs, drive efficiencies, and deliver superior experiences that strengthen engagement and loyalty.

1. IBM Smarter Commerce
Redefining commerce in the age of the ‘chief executive customer’
© 2013 IBM Corporation

2. Mobile and social are reshaping business
55% 34% 50%
of smartphone of smartphone increase in
users compare users have scanned online sales via
prices in stores a QR Code, 27% mobile devices
have read online over 2011
reviews
63% 92% 84%
of online adults are of US adults who
less likely to buy via of consumers say have conducted a
other channels if they trust earned transaction online or
they experienced a media, such as through a mobile
problem on their word-of-mouth and device report
mobile phones recommendations experiencing a
problem
2 © 2013 IBM Corporation
Sources: IBM, Forrester, Tealeaf and Emphathica Reports

3. Customer expectations are soaring
They want:
you to know them as an individual
simple, yet feature-rich self-service
capabilities
a seamless and integrated experience
relevant, timely promotions
a flawless post-purchase experience
3 © 2013 IBM Corporation

4. Every interaction is important
Advocacy Awareness
Engagement
Involvement
Transacting
Interacting
Usage
4 © 2013 IBM Corporation

5. Leaders are taking an integrated approach to
commerce
Puts the Anticipates Applies deep Optimizes Extends core
customer at and deliver insights to procurement systems to
the center across mobile take action based on synchronize
of your and social in real time demand your value chain
commerce
processes
5 © 2013 IBM Corporation

6. Delivering superior customer experiences that are
highly informed and orchestrated
A supply chain Marketing targeted to
prepared every customer
for the unpredictable personally
Service that knows Selling that’s there for
what customers want your customers,
before they do wherever they are
6 © 2013 IBM Corporation

7. Successful companies embracing this strategy
Improved Delivered
procurement and personalized
defined new rules interactions which
with eAuctions led to new business
Fixed customer Leveraged social
experience problems programs to drive
and increased sales and ongoing
conversions engagement
7 © 2013 IBM Corporation

8. Smarter Commerce delivers exceptional customer
experiences
Buy Market
Adaptive Targeted and
procurement Buy
Buy Market
Market personalized
and optimized marketing
supply chain across all
channels
Service Sell
Anticipate Seamless
behavior and Service
Service Sell
Sell cross-channel
deliver flawless customer
customer experience
service
8 © 2013 IBM Corporation

9. IBM’s integrated portfolio for Smarter Commerce
Smarter Commerce Services
Core Business Solutions and Processes
BUY MARKET SELL SERVICE
Adaptive Targeted and Seamless Anticipate
procurement and personalized cross-channel behavior and
optimized supply marketing across all customer deliver flawless
chain channels experience customer service
Business Analytics
IBM SmartCloud Solutions, Computing and Infrastructure
9 © 2013 IBM Corporation

10. Smarter Commerce integrates and enhances the
commerce cycle
Visibility and order status All customer
adapt procurement interactions
and logistics are a market opportunity
Buy Market
Service Sell
Insight from all channels Promotions, guided selling
through analytics and precision marketing
improves loyalty drive sales
10 © 2013 IBM Corporation

11. Smarter Commerce puts mobile and social
everywhere
Buy Market Sell Service
Empowering Reinventing
employees and partners the way companies
interact with customers
• Social sentiment analysis • Insight driven promotions
• Inventory visibility • Location based services
• Mobile platform analysis • Social sharing
• Clienteling, customer • Endless aisle
personalization • Mobile shopping services
• Purchase decision support
11 © 2013 IBM Corporation

12. And leverages Cloud and SaaS Solutions to deliver
exceptional customer, partner experiences
Buy Market Sell Service
14,000 300,000+
pre-connected gl obal trading enti ties
transportati on ca rriers connected
B2B Cloud Servi ces Over
expanding into
6+ million 34 countries 180 million TMS tra nsactions annually
45+
Saa S applica tions
trade deals negotia ted
4.5 million
by 1,500 companies
transa ctions exchanged
through B2B cloud dail y
23,000
brands supported by digi tal
>60,000 users Nea rl y
ma rketing optimi za tion
of digi tal ma rketing opti miza tion sending
60 million emails each month $4 billion
In freight spend managed annuall y
12 © 2013 IBM Corporation

13. Smarter Commerce delivers results
Places the chief Maximizes
insights Embraces social
executive customer at
and mobile
the center
Synchronizes the
Personalizes entire value chain
marketing
Reduces costs and drives Delivers seamless
efficiencies experiences
13 © 2013 IBM Corporation

14. Insert customer examples provided in back up pages
14 © 2013 IBM Corporation

15. Smarter Commerce requires focus on three
dimensions
Customer
Engagement
“Multi-channel” has
evolved to “all
channels, all the time”
Customer Insight Value Chain
and Intelligence Optimization
Advocacy based on Integration and
synchronization
trust is the new
to meet new value
“loyalty” delivery requirements
Customer Experience
15 © 2013 IBM Corporation

16. The proof: industry analysts named IBM the leader
Ecommerce Seven major analyst Social Analytics and Strategic sourcing and
solutions and reports on Intelligence procurement services
commerce consulting marketing solutions
Market Star Mobile Enterprise social Global Digital
Performer for collaboration software and Marketing Agencies
procurement software horizontal portals
outsourcing
16 © 2013 IBM Corporation

17. The proof: Transform your partner and supplier
relationships
$57 1.4 300,000
entities on the IBM cloud-based
business-to-business (B2B)
network, trading in real time
billion billion
in annual documents
procurement exchanged
spend managed electronically on
on behalf of the IBM cloud-
our clients based B2B network
11
average savings of
total sourced
spending
experienced by
percent companies
17 © 2013 IBM Corporation

18. The proof: Transform your customer experiences
2,500 customers worldwide
that depend on our
$34
marketing solutions
billion $100 14
in sales of the billion million
Internet Retailer Top
500 powered by IBM of commerce combinations of
from our retail products and
WebSphere® clients analyzed in services that are
Commerce software our benchmark configured to order
report for one company
18 © 2013 IBM Corporation

19. Begin with these questions for your Smarter
Commerce journey
Does your Are you
business model leveraging
adapt to capitalize customer insight
on new market to reshape your
opportunities? business?
Can your
operations Could your supply
anticipate and chain interrupt
adjust dynamically service to your
to market Do you deliver customers?
conditions? exceptional customer
experience across all
touch points?
19 © 2013 IBM Corporation

20. Partner with IBM for Smarter Commerce
Industry leading portfolio for Buy, Market, Sell and Service
Flexible, modular, open, integrated, optimized
Real-time social, mobile and analytics capabilities
integrated throughout the solutions
Dedicated commerce consulting and systems integration
practice with over a thousand experts
Innovation through IBM Research and patent leadership
for 20 years
Over 2,000 of the world’s top brands rely on IBM to
improve their business insight and execution
20 © 2013 IBM Corporation

21. Back up
Customer examples demonstrating what leaders are doing today
Sparkler Customer Case Studies – color coded for Buy, Market, Sell and Service
Questions To Ask
Analyst Rankings Details
Smarter Commerce Integrated Portfolio Details
21 © 2013 IBM Corporation

22. The opportunity:
Improve procurement processes and saved more than US$1 billion
Leaders improve
procurement processes and
save more than $1 billion in
2011. The bottom
line…improved procurement
was cited as contributing to
doubling first-half operating
profits.
Anglo American
did.
22 © 2013 IBM Corporation

23. The opportunity:
Improve procurement and define new rules with eAuctions
Leaders execute over
30,000 eAuctions a year
and drive bottom line
efficiencies and results in
procurement for $4.2B in
spend.
ABInBev did.
23 © 2013 IBM Corporation

24. The opportunity:
Transform procurement to improve savings, vendor quality
Leaders improve
performance by providing
global visibility into their
contracts, standardize terms
and rationalize vendors to
ensure efficient spend and
improved vendor quality.
ConocoPhillips
did.
© 2013 IBM Corporation

25. The opportunity:
Provide over 7000 ships with complete supply chain visibility
Leaders streamline and
secure information
exchange, reduce time to
onboard partners and
provide visibility into the
supply chain.
Jurong Port did.
25 © 2013 IBM Corporation

26. The opportunity:
Improve delivery performance 15% and drive perfect orders
Leaders drive a superior
customer experience and a
world class supply chain
enabled by shared visibility
with partners and virtual
warehouse capabilities to
‘sell on the water’.
Lenovo did.
26 © 2013 IBM Corporation

27. The opportunity:
Reduce partner integration in 5-8 days from 4-8 weeks
Leaders extend core
processes to their business
partners community to drive
growth and meet service
agreements.
Russell Investment
Group did.
27 © 2013 IBM Corporation

28. The opportunity:
Increase open rates up to 260% and click through rates up to 122%
Leaders analyze, integrate
and score offerings and
engage with their
customers in relevant ways
with new offerings and
campaigns for Face to Face
and TV.
AMA did.
28 © 2013 IBM Corporation

29. The opportunity:
Leverage insights to drive a personalized and relevant experience
Leaders use insights
tracked via loyalty cards
and leverage it to drive
offers to moms and parent
clubs relevant to them. And
for mobile they use insights
deliver exactly what
customers want.
Boots did.
29 © 2013 IBM Corporation

30. The opportunity:
Increase trade promotions results and drive better partnerships
Leaders improve trade
promotion economics
significantly, retailers tell
them “You are changing the
game as a Partner…bringing
growth ideas never heard or
seen.”
ConAgra Foods
did.
*DemandT ec is an IBM company
30 © 2013 IBM Corporation

31. The opportunity:
Deliver real-time offers and increase marketing ROI 600%
Leaders have a 360 degree
view of all customer
information and align it to
marketing to deliver more
relevant offers.
First Tennessee
did.
31 © 2013 IBM Corporation

32. The opportunity:
Increase incremental customer retention by 4%
Leaders boost incremental
customer retention by 4%
and reduce acquisition
costs by 60% in campaigns
through 2,200 event based
campaigns per year, using
400+ different triggers.
HDFC did.
© 2013 IBM Corporation

33. The opportunity:
Increase revenues generated by direct marketing by 30 percent
Leaders grow revenue
through personalized
marketing to 60 million
customers and realize gains
in efficiency and ability to
personalize interactions
with customers.
Telefonica Vivo
did.
© 2013 IBM Corporation

34. The opportunity:
Increase precision marketing with unique promotions up 600%
Leaders use behavioral
intelligence in real time to
drive a unique customer
experience with
personalized promotions.
Li Ning Sports
Goods did.
34 © 2013 IBM Corporation

35. The opportunity:
Have personal marketing that drives conversions to sales up by 1700%
Leaders deliver targeted,
relevant e-mail and
boost revenue by 2500%
and drive conversions to
sales up by 1700%.
L’OCCITANE EN
PROVENCE did.
© 2013 IBM Corporation

36. The opportunity:
Double and triple digit increase in revenue and click through rates
Leaders eliminate generic
messaging in favor of
targeted cross-channel
communications tailored
to the customer interests
and preferences
Motorola
Mobility did.
36 © 2013 IBM Corporation

37. The opportunity:
Deliver a personalized experience and increase sales per visitor 41%
Leaders leverage visitor
behavior to drive a
personal experience to
increase sales per visitor
41% and coupon
redemptions up 200%.
PETCO did.
37 © 2013 IBM Corporation

38. The opportunity:
Improve price image and pricing operations over the entire lifecycle
Leaders grow key
categories by incorporating
shopper-focused pricing
and markdown strategies
that are localized to each
individual store.
Radio Shack did.
38 © 2013 IBM Corporation

39. The opportunity:
Reduce customer churn and boost ROI by 376%
Leaders identify
customers with a high
likelihood to churn and
proactively contact them,
improving customer
retention and profits.
XO Communications
did.
39 © 2013 IBM Corporation

40. The opportunity:
Deliver a seamless customer experience across all channels
Leaders embrace a
multichannel strategy and
enable customers to shop,
buy and pickup where they
want and ensure seamless
delivery and integration
from their suppliers to
their customers.
Argos did.
40 © 2013 IBM Corporation

41. The opportunity:
Improve sales by sharing global inventory visibility with customers
Leaders drive a seamless,
flexible supply chain to
meet the needs of their
customer by sharing
inventory visibility to
ensure they can sell or
have what they need.
Husqvarna did.
41 © 2013 IBM Corporation

42. The opportunity:
Engage customers in a collaborative retail experience
Leaders turn a typical
retail business into a
close-knit community
through social networking
capabilities across its
retail channels.
Moosejaw
Mountaineering
did.
42 © 2013 IBM Corporation

43. The opportunity:
Deliver a strong B2B storefront processing 15K orders a month
Leaders offers B2B storefronts
processing over 15K orders a
month for their owned and
operated outlets seamlessly
integrated with their back end
systems for pricing, orders,
catalogues and more.
Office Brands did.
43 © 2013 IBM Corporation

44. The opportunity:
Leverage social programs to drive sales and ongoing engagement
Leaders design social
programs so their
customers earn more as
they shop and as they
share, with up to 2.5% in
cash rewards.
SHOP.CA did.
44 © 2013 IBM Corporation

45. The opportunity:
Offer a personalized shopping experience across all channels
Leaders give customers
access to a portal tailored
just for them, ensuring
they can do business with
you reliably and quickly.
Staples did.
45 © 2013 IBM Corporation

46. The opportunity:
Enhance the customer experience and grow revenue to $1B 2011
Leaders establish a
platform for growth for
eCommerce and enhance
the overall shopping
experience to drive growth.
Xiu.com did.
46 © 2013 IBM Corporation

47. The opportunity:
Provide new services and secure integration with trading partners
Leaders introduce new
customer services like
opening an account at the
ATM or ordering movie
tickets in advance.
Taishin Bank did.
47 © 2013 IBM Corporation

48. The opportunity:
Manage high volume while reducing processing time by 50%
Leaders streamline
processing by automating
the data entry process of
more 8,000+ subscription
orders and marketing
response cards arriving daily.
Dow Jones did.
48 © 2013 IBM Corporation

49. The opportunity:
Improve customer experience and drive $1M profit per month
Leaders truly understand
their customer experience
and find the problem areas
and fix them. Taking out a
single field from checkout,
they were able to realize
$1M in profits a month.
Expedia did.
49 © 2013 IBM Corporation

50. The opportunity:
Automate billing and increase revenues by $870,000 annually
Leaders accurately account
for all customer services and
transactions, and eliminate
manual billing processes to
uncover additional sources
of revenue.
J.B. Hunt did.
50 © 2013 IBM Corporation

51. The opportunity:
Improve conversion rates by 40% and reduced site defects by 82%
Leaders diagnose and fix
problems that cause failed
customer experiences.
The results were improved
conversion rates by 40
percent, and reduced site
defects by 82 percent.
KwikFit did.
Tealeaf is an IBM Comp any.
51 © 2013 IBM Corporation

52. The opportunity:
Increase efficiency and decrease economic resources 52%
Leaders limit risks by
compensating trading
operations in real time,
reducing the liquidity needs
of trading organizations to
complete operations.
S.D.Indeval did.
52 © 2013 IBM Corporation

53. Begin by assessing your ability to use customer insight effectively
Can you measure How personalized
and act upon and consistent is
consumer sentiment the experience
captured through you offer
social media? customers?
Do you have the Are you able to
skills and tools to make adjustments
generate to your business
actionable based on
customer insights? Can you use predictive customer insight?
capabilities to drive
campaigns and micro-
targeting?
53 © 2013 IBM Corporation

54. Make sure customers and partner engagement is a priority
Is your brand Can you deliver a
experience personalized
consistent across experience to your
all channels? customers?
Do you have the
Are your
ability to sell customers moving
complex to new channels
configurable
like social networks
products and Can you deliver the and mobile?
services? perfect order?
54 © 2013 IBM Corporation

55. Ensure collaboration is seamless with partners and suppliers
Do you know the Can your
cost of doing customer and
business with suppliers see into
trading partners your supply
manually? chain?
Do you have too Can you reduce
much risk and stock-outs, improve
exposure with your customer satisfaction
supply base and and still make your
Can you expand your
your contracts? margins?
merchandise offerings
without expanding
inventory?
55 © 2013 IBM Corporation

56. Market validation and leadership
IBM Emptoris: Leader IBM Unica: Leader
Gartner Magic Quadrant: Telecom Gartner Magic Quadrant: Integrated
Expense Management, Q2 2012 Marketing Mgmt, Q4 2012
IBM Emptoris: Leader IBM Unica: Leader
Gartner Magic Quadrant: Strategic Gartner Magic Quadrant: Multi-Channel
Sourcing, Q1 2010 Campaign Mgmt, Q1 2012
IBM Emptoris: Leader IBM Unica: Leader
Forrester Wave™: Services Gartner Magic Quadrant: Marketing Resource
Procurement, Q3 2010 Mgmt, Q1 2012
IBM Emptoris: Leader IBM Unica: Leader
Forrester Wave™: eSourcing, Q1 2009 Buy Market The Forrester Wave: Cross-Channel Campaign
IBM Emptoris: Leader Mgmt, Q1 2012
Forrester Wave™: Contract Life-Cycle IBM: Leader
Management, Q2 2011 The Forrester Wave: Web Analytics, Q4 2011
IBM: Leader
Digital Marketing Agencies, Gartner Magic
Quadrant, Q4 2012
Service Sell
IBM: Leader IBM: Leader
Gartner Magic Quadrant: Worldwide Gartner Magic Quadrant: E-Commerce, Q4
Customer Management Contact 2011
Center BPO, Q4 2011 IBM: Leader
IBM: Leader The Forrester Wave™: B2C eCommerce
Forrester Wave: Dynamic Case Suites, Q3 2012
Management, Q1 2011 IBM: Leader IBM: Leader
IBM: Leader Magic Quadrant: Business Intelligence Forrester Wave™: Global Commerce Service
Forrester Wave: Enterprise Feedback Platforms, Q1 2012 Providers, Q1 2012
Management, Q3 2011 IBM: Market Strength Leader
IBM Leader: Gartner Magic Quadrant: Hurwitz Predictive Analytics Victory Index,
Electronic Content Management, Q3 2011
Q4 2012 IBM SPSS: Leader
Hypatia's Gal axy for Social Analytics and
Intelligence, 2012
56 © 2013 IBM Corporation

57. The proof: Analyst perspective in 2011 and 2012
IBM named a IBM named a IBM named a IBM named a leader
leader in leader in Business leader in Global in Customer
Horizontal Portals Consulting Services Commerce Management
Consulting Contract Center BPO
57 © 2013 IBM Corporation

58. IBM’s integrated portfolio for Smarter Commerce
Smarter Commerce Services
Core Business Solutions and Processes
BUY MARKET SELL SERVICE
Adaptive Targeted and Seamless Anticipate
procurement and personalized cross-channel behavior and
optimized supply marketing across customer deliver flawless
chain all channels experience customer service
Business Analytics
IBM SmartCloud Solutions, Computing and Infrastructure
58 © 2013 IBM Corporation

59. We have invested in leading capabilities to transform your business
LEADER in procurement LEADER in merchandising
Buy Market • Sell
LEADER in B2B and Order Buy Market LEADER in campaign
Management Buy Market management
Service Sell
Buy • Sell Service Sell Market
LEADER in customer
experience management LEADER in digital marketing
Market • Sell • Service Market
59 © 2013 IBM Corporation

60. IBM’s integrated portfolio for Smarter Commerce
Smarter Commerce Services
Strategy | IBM Interactive | Systems Integration | Smarter Analytics | Managed Services | Application Management
Core Business Solutions and Processes
Buy Market Sell Service
Supplier Integration & Customer Experience Cross-channel Selling Delivery, Service, &
Collaboration Management Order Management & Support
Supply Chain Management Cross-channel Marketing Fulfillment Customer Self-Service
Accounts Payable Optimization Customer Integration & Case Management
Source to Contract Price, Promotion & Product Collaboration
Supplier Management Risk Mix Optimization Store Solutions
and Compliance Marketing Performance Payments & Settlements
Optimization
Digital Marketing
Optimization
Customer Analytics
Marketing Performance
Analytics
Business Analytics
IBM SmartCloud Solutions, Computing and Infrastructure
60 © 2013 IBM Corporation

61. “BUY” processes and capabilities
Strategic supply chain management
Supplier B2B integration
Buy Supplier collaboration
Supplier Integration and Supplier performance analytics and compliance
Management
Supply Chain Management Supply chain visibility
Accounts Payable
Source to Contract Inventory management and optimization
Supplier Management Risk and
Compliance
Automated accounts payable
Warehouse management
Transportation management
61 © 2013 IBM Corporation

62. Smarter Commerce Market
Personalized and targeted marketing across channels
IBM core process capabilities:
Smarter Commerce Market Cross-channel Marketing Optimization
enables you to have deep Customer Experience Management
awareness with a 360- Digital Marketing Optimization
degree insight about your Marketing Performance Optimization
customers, and drive Price, Promotion and Product Mix Optimization
targeted marketing Customer Analytics
Marketing Performance Analytics
programs that improve
conversions and ROI.
62 © 2013 IBM Corporation

63. “Market” processes and capabilities
Identify opportunities and predict marketing
outcomes
Decide on the best message or offer to extend,
Market in any channel
Cross-Channel Ma rketing
Opti miza tion Deliver messages and retain a memory of
Cus tomer Experience Management
Di gi tal Ma rketing Optimi za tion
interactions
Ma rketing Performance Determine optimum pricing, facilitate cross
Opti miza tion
Pri ce, Promotion and Product Mi x channel planning, design, execution and
Opti miza tion measurement
Cus tomer Analyti cs
Ma rketing Performance Anal yti cs Advanced analytics to continually improve
marketing
63 © 2013 IBM Corporation

64. Smarter Commerce Sell
Seamless cross-channel customer experience
IBM core process capabilities:
Smarter Commerce Sell
delivers seamless cross-
Cross-Channel Selling
channel customer
Order Management and Fulfillment
experience and ensures Customer Integration and Collaboration
flexibility to enable secure, Store Solutions
reliable delivery and real- Payments and Settlements
time insight for next
generation commerce.
64 © 2013 IBM Corporation

65. “SELL” processes and capabilities
Provide customers and partners with a
seamless end-to-end cross-channel multi-tier
Sell and highly personalized buying experience
Cross-channel Selling
Order Management and Support any level of complexity and sales
Fulfillment model
Customer Integration and
Collaboration Orchestrate orders across extended value
Store Solutions
chains
Payments and Settlements
Advanced analytics to continually improve sales
operations
65 © 2013 IBM Corporation

66. Smarter Commerce Service
Anticipate behavior and deliver flawless customer service
IBM core process capabilities:
Smarter Commerce Service
provides relevant, value- Delivery, Service and Support
Customer Self Service
added services that nurture
Case Management
customer relationships to
improve revenue and
customer loyalty while
reducing care costs.
66 © 2013 IBM Corporation

67. “Service” processes and capabilities
Deliver product or services via preferred channel
Offering carefully targeted, value added services
Service during support interactions
Provide support/service personnel and
Delivery, Service, & Support customers with current, accurate and complete
Customer Self-Service information regarding products, services,
Case Management promotions, policies and procedures
Facilitate first call resolution
Advanced analytics to continually improve
delivery, service and support efficiently
67 © 2013 IBM Corporation

68. Business Analytics
Improve customer experiences by embedding actionable insights
into operational processes
IBM core analytics capabilities:
IBM Business Analytics help Customer Analytics
you understand the key Operational Analytics
“moments of truth” that Threat and Fraud Analytics
can have dramatic impact Spend Analytics
on your business and Web Analytics
Social Media Analytics
customer experience.
Marketing Performance Analytics
68 © 2013 IBM Corporation