Cashing in on IBM Business Partner solutions in retail Attract and retain more profitable customers NOTE to: IBM Business Partner Add Business Partner logo here
IBM Software Group NOTE: Add Business Partner logo here Agenda 1 Retailing in the on demand era 2 Retail challenges and industry dynamics 3 Middleware matters 4 Solution recommendations and customer experiences 5 Next steps 6
IBM Software Group The new on demand era Retail business today “April 29, 2004 AMR reports, retail executives expect: § 9. 1% increase in technology budgets over 2003 § 27. 3% average growth in 2004 retail IT capital expenditures over 2003 § 57% increase in store technology investment” New on demand business “An on demand business is an enterprise whose business processes — integrated end-to-end across the company and with key partners, suppliers and customers — can respond with speed to any customer demand, market opportunity or external threat. ” — AMR Research — Sam Palmisano, October 2003 NOTE: Add Business Partner value proposition 7
IBM Software Group Do these retail challenges sound familiar? If customers cannot shop conveniently and receive personal service in the store, through the catalog, on the Internet or by phone, their loyalty is at risk. Are you under pressure to cut costs, streamline operations and be more efficient? Well-educated customers demand quality, selection and value. Suppliers can’t respond fast enough to changes in your inventory, let alone in the market. Competitors squeeze your margins. 8
IBM Software Group The on demand era meets opportunity Midsize business solutions are here Reliability Changing needs Security is critically important. IBM Express Middleware is the safer choice. IBM middleware solutions are available from thousands of local IBM Business Partners. Open standards Operational costs IBM has solutions specifically for midsize retail businesses — at a price lower than the competition. IBM middleware leverages existing IT investments, no rip and replace. 9
IBM Software Group Want to see how fast competitors are embracing technology? Stand still. Currents of change of last year § Greater customer-centricity § More retailers turning data into insight § Shifting toward a boundary-less business model Wal-Mart enjoys a 22% productivity advantage. More than half of the productivity improvements come from IT-related advantages. 10
IBM Software Group What we’re hearing: Retail industry concerns The top business priorities of retail industry IT executives are: § Take full advantage of alternative sales channels. § Reach the market with accurate, timely advertising and promotion materials without spending a fortune. § Optimize inventory levels and costeffective inventory management. “With continued momentum in the economy, now is the time for businesses to invest in new technology. The retailers who choose to invest today will be rewarded tomorrow. ” — NRF President and CEO Tracy Mullin 11
IBM Software Group Your Title Here Note: Add Business Partner logo here § Add Business Partner local trends § Add facts about the Business Partner § # of local engagements § Quote from BP president? § Facts that qualify the BP as a vendor of choice § Example is next slide “Add Business Partner Customer quote here. ” Add Logo — Source 12
IBM Software Group Do you have room for improvement? Less efficient More efficient Operating Expenses High: 27. 75% Low: 16. 65% Labor Costs (% of total costs) High: 23. 6% Low: 9. 3% Inventory Turnover Low: 6 High: 12 Sales per Sq. Ft. Low: $252 High: $435 (% of revenue) Sources: Operating expense- 2001 financial statements; www. cfo. com, www. fmi. org. Goldman Sachs Global Perspective, Wal-Mart Stores, Inc. 09/25/02. 13
IBM Software Group Five ways retailers can modernize their infrastructure 1 Keep advertising and promotional costs down. Move to a simplified, in-house digital media management solution. 2 Get better inventory turnover. Deploy a wireless inventory management solution. 3 Know what customers want, when and how, using customer analytics and data mining solutions. 4 Expand customers’ access, choice and satisfaction. Integrate e-commerce, inventory, supply chain and customer support systems with B 2 C e-commerce solutions. 5 Improve supply chain expense and customer satisfaction with supply chain integration solutions. NOTE: Merge content above with Business Partner local retail solutions 14
IBM Software Group You have goals. IBM and IBM Business Partners have solutions. Goal Solution Expand consumer access, choice and satisfaction B 2 C E-Commerce Save advertising and promotional costs Digital Media Management Invest in the customers who spend more money Customer Analytics / Data Mining More inventory turns Wireless Inventory Management Shorten the distance between suppliers and stores Supply Chain Integration NOTE: Merge content above with Business Partner 15
IBM Software Group IBM Business Partners applications and services Challenge Solution Brief summary of customer pains here Brief solution summary here 16
IBM Software Group A complete solution Express Portfolio Business Partners What midsize retail firms want — at an affordable price § Reliable, industry specific software solutions that create effective real-time linkages with customers and suppliers § Improved profitability through reduced costs, improved efficiency and customer relationships, and integrated processes Customer-friendly: IBM Express Portfolio provides ease of installation, ease of integration, ease of use, ease of training, and affordability. 17
IBM Software Group Why middleware matters Midsize retail businesses need IBM Express Middleware 1 Builds, manages and secures your IT environment 2 Standardizes key housekeeping functions so that your applications can focus on solving your business problems 3 Provides open standards so clients are not tied to a proprietary vendor and single operating system 4 Provides scalability as your organization grows 5 Serves as the glue that tightly links the elements of your business internally and externally “The IBM solution is making a dramatic change in our IT environment, which will eventually result in better support for our business drivers and objectives. We are in a much better position now from both a technology and integration perspective to approach major integration initiatives in the future. ” NOTE: Business Partner customer quote? — Laurentiu Mandu, Mobi. Fon IT Director 18
IBM Software Group Why IBM Express middleware? § Less risky than other vendors – Open IT environment; no IT lock-in; more than 25 platforms supported; allows customers to take full advantage of future innovations. § Less costly – No rip and replace; lower prices § Helps companies become more responsive, resilient and focused – Simplifies collaboration among employees, partners and customers – Open standards facilitate communication across multiple IT environments worldwide § More secure § Deep industry expertise Keep your options open. Protect your IT investments. “An enterprise that actively manages future risks should favor J 2 EE. ” NOTE: Business Partner customer quote? 19
IBM Software Group IBM Express solution components for retailers IBM Express components Solution NOTE: Modify content below with Business. Tivoli Access Manager for e-business § § Web. Sphere Commerce Express § Web. Sphere Portal Express/Express Plus § Tivoli B 2 C E-Commerce Partner local retail application solutions Website Analyzer § Lotus Domino Utility Server Express § Tivoli Monitoring for Transaction Performance Digital Media Management § DB 2 Content Manager Express § DB 2 Content Manager Video Charger § Web. Sphere Digital Media Enabler Customer Analytics/ Data Mining § DB 2 Data Warehouse Standard Edition § Web. Sphere Portal Express/Express Plus § Web. Sphere Commerce Express Wireless Inventory Management § Web. Sphere Application Server – Express § Web. Sphere Portal Express/Express Plus § DB 2 Everyplace Express § DB 2 UDB Express § Tivoli Access Manager Supply Chain Integration § Web. Sphere Business Integration Express § Web. Sphere Business Integration Connect Express § Web. Sphere Portal Express/Express Plus § Web. Sphere MQ Express § DB 2 Content Manager Express § Tivoli Access Manager for e-business Built with world-class software products and brands 20
IBM Software Group What are the benefits to your business? Uses analytics to identify online shopping trends and enable retailers to dynamically personalize offerings Measures the effectiveness of promotions, marketing; increase market reach Integrates with order management and inventory systems, saving time and cost Links online storefronts to databases to support regulatory compliance Integrates with customer support NOTE: Business Partner solution benefits here 21
IBM Software Group Modernize your infrastructure with NOTE: XXXX Business Partner customize with benefits B 2 C e-commerce benefits § Analytics to identify online shopping trends and enable retailers to dynamically personalize offerings § Ability to measure the effectiveness of promotions, marketing § Capability to link online storefronts to databases to support regulatory compliance § Integration with order management and inventory systems, saving time and cost § Integration with customer support IBM components Web. Sphere Commerce Express, Web. Sphere Portal Express/Express Plus, Lotus Domino Utility Server Express, Tivoli Access Manager for e-business, Tivoli Website Analyzer, Tivoli Monitoring for Transaction Performance 22
IBM Software Group Business Partner customer references Sub Head: The more local the reference the better! Challenge Note: Customer logo Value Summary of the customer challenge. Less is more. § Briefly illuminate the benefits, from the customer’s point of view. Tell them what’s in it for them. Solution Business Partner application or service summary here. Note to IBM Business Partners: Three IBM SMB references follow, use or cut from the deck. The best reference is the business down the street. 23
IBM Software Group JH Haynes Publishing site deployed in 30 days Challenge § Existing basic B 2 C site unable to support cross-sell and up-sell § Poor visit-to-purchase ratio § No tools to manage marketing activities on site § Limited globalization capabilities on current site § Current site unable to support B 2 B § Have small budget but need site up fast Solution § WS Commerce – Express delivers an affordable end-toend solution that can be rapidly installed and deployed § Quick install time – about an hour § Express store model and Easy Start guide speeds deployment § Select B 2 B features available to meet future needs § Business Context Engine to support globalization needs § Intuitive marketing and product management tools enable targeted promotions Value § Rapid and cost-effective deployment — up and running in 30 days § Expected increase in customer loyalty and satisfaction § Maximized customer wallet share and per order revenue § Fewer abandoned shopping carts § Globalization capabilities, helping Haynes reach WW audience § Efficient training to administer site and drive maximum value from its capabilities § Solid foundation provided for future growth 24
IBM Software Group Modernize your infrastructure with NOTE: Business Partner XXXXX customize with benefits Digital Media Management benefits § Decreased costs related to marketing and other collateral § Ready access to product photos for brochures and advertisements § Ability to reuse marketing assets in order to streamline production § Speedy, lower cost error correction § Reduced costs and ensure consistency of messages to consumers § Lower agency costs for production, storage, delivery, media placement IBM components DB 2 Content Manager Express, DB 2 Content Manager Video. Charger, Web. Sphere Digital Media Enabler 25
IBM Software Group Safilo solution completed in four weeks Streamlining global online operations using Web. Sphere Commerce Express Challenge Value Provision of online catalog and marketing channels that fully integrate with existing information systems § Increased efficiency and productivity with advanced e-business capabilities Solutions The whole solution allows accurate online communication between Safilo and the system’s users — opticians, salespeople and distributors. § Provided customers with accurate, up-to -date information and services § Lowered the total cost of ownership by reducing site maintenance expenses “So, at the end of hosting contract, here in the USA we decided that a port to Oracle 9 i. AS would be the proper move. We were wrong. After a demo and discussion with the local IBM experts in Web. Sphere Commerce, we decided to abandon our port to Oracle and move the site to the USA and upgrade to Web. Sphere Commerce Express V 5. The entire project was completed in 4 weeks and the site is wonderful. ” — Jeff Wolfe, Safilo Group IT Director 26
IBM Software Group Modernize your infrastructure with NOTE: Business Partner XXXXX customize with benefits Customer analytics and data mining benefits § Increase revenue and retention § Increase use of frequent shopper cards for use in customizing offerings and conducting relationship marketing § Improve customer satisfaction § Understand increase customer profitability IBM components DB 2 Data Warehouse Standard Edition, Web. Sphere Portal Express/Express Plus, Web. Sphere Commerce Express 27
IBM Software Group Logic. Library saves thousands in installation costs Using IBM integrated runtime Challenge Value Logic. Library needed to make its enterprise application development tool, Logidex, channel-ready, by simplifying the packaging and deployment into a turnkey installation. § Significantly reduced time and skills required to install Logidex for small and medium business customers § Opened up new markets in geographies outside North America by using channel partnerships that require a channel-ready product § Saved $1800 per installation – which can add up to hundreds of thousands of dollars saved annually § Professional services team is redeployed to higher-margin projects Solution Implemented IBM’s Integrated Runtime components into Logidex, creating a simplified package for the SMB market and for deployment by channel partners 28
IBM Software Group Modernize your infrastructure with NOTE: Business Partner XXXXXX with benefits customize Wireless inventory management benefits § Enable employees in store or on the warehouse floor to access and update inventory levels § Decrease inventory costs § Increase inventory turns IBM components Web. Sphere Application Server – Express , Web. Sphere Portal Express/Express Plus, DB 2 Everyplace Express, DB 2 UDB Express, Tivoli Access Manager 29
IBM Software Group Modernize your infrastructure with NOTE: Business Partner XXXXX customize with benefits Supply chain integration benefits § Improve product availability, maintain optimal inventory, improve sales, and reduce order-related costs § Reduce purchase order errors and accelerate time to market § Collaborate with suppliers more effectively § Reduce stock-outs and excess inventory shrinkage IBM components Web. Sphere Business Integration Express for Item Synchronization, Web. Sphere Business Integration Connect Express, Web. Sphere Portal Express/Express Plus, Web. Sphere MQ Express, DB 2 Content Manager Express, Tivoli Access Manager for e-business 30
IBM Software Group Zip. Lip gets from code to revenue more quickly Challenge Value Selling Zip. Lip solutions to small and midsize businesses and mid-market customers is extremely difficult. Standard software strategy is too complex, expensive to install, and costly to support. Zip. Lip now able to deliver solutions to customers quickly and cost-effectively: Solution § Zip. Lip deployed Integrated Runtime using market leading Web. Sphere Application Server, DB 2 Universal Database Express, and IBM HTTP Server § Multiplatform (extends deployment options) Windows and Linux § Wider range of available bundles § One product, license, contract, upgrade and support structure § 10 x increase in market opportunity § List of channel-ready solutions doubled § Deployment costs reduced by 75% § Installation times shortened by up to 87% § Complexity dropped by 80% § Support and development made easier Zip. Lip customers include: 31
IBM Software Group NOTE: Business Partner to customize IBM Business Partner Staff § Who and what skill sets matter from the customer’s point-of-view. “Business Partner tagline or local customer quote. ” – Mr. Source, IBM Express is affordably priced Experience really counts § Business Partner experience, local background etc…. . 32
IBM Software Group Business Partner application or service NOTE: goes. Business Partner here Business Partner application Expand on the Business Partner local retail solutions or applications Business Partner application § XXXXX IBM and Business Partner components § Placeholder § XXXXXXX 33
IBM Software Group Take action today § Assess your on demand needs § Map out your journey § Calculate your ROI and business value § Get started, start anywhere — small or a total solution § Go to URL or email xxx for next steps The never-before-possible becomes possible. Our Web. Sphere software-based solution has completely transformed our business and allowed us to become more responsive to our patients. The benefits we receive from this new system continue to amaze me. NOTE: — Patty Stibbs, Administrator, Plastic Surgery Center Business Partner customer quote? 34
IBM Software Group © Copyright IBM Corporation 2004. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials 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. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, the e-business logo and other IBM products and services are trademarks or registered trademarks of the International Business Machines Corporation, in the United States, other countries or both. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries or both. Microsoft, Windows NT and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries or both. All other trademarks, company, products or service names may be trademarks, registered trademarks or service marks of others Disclaimer: NOTICE – BUSINESS VALUE INFORMATION IS PROVIDED TO YOU 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. IBM DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IBM DOES NOT WARRANT 35 OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE BUSINESS BENEFITS SHOWN. . IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF IBM'S NEGLIGENCE. WHETHER
IBM Software Group Back up 36
IBM Software Group Blank customer reference template Add customer logo Add key benefit customer Challenge Value Solutions “…. quote goes here. . . l. ” – attribution goes here 37
IBM Software Group IBM "continued its long time lead of this market. “ IDC, June 2003 Why IBM? Market leadership §Application Deployment Platform Software Market Leading industry analysts acknowledge IBM market share dominance 2002 Share* 2001 -02 Growth% Application Integration License Revenue 300 17. 5% BEA Systems 17. 3% 9. 6% 9. 5% 8. 0% Tibco Inc. 4. 9% -19. 4% web. Methods IBM 23. 3% Oracle Corp. Source: Wintergreen Research IBM 4. 3% 6. 3% * Based on license revenue and license-related service fees. The gap widens 200 “IBM Has Top Share in All Application Integration Middleware Markets” Gartner Dataquest, May 2003 Worldwide IBM Market Share Position Based on New License Revenue 2000 100 Web. Methods §Tibco §See. Beyond §Mercator §Vitria 0 1999 2000 2001 2002 2003* Application Servers Integration Broker Suites Portals Message-Oriented Middleware Application Platform Suites Composite Market Transaction Processing Monitors Total Market 2001 2002 2 1 N/A 1 2 1 3 1 2 1 1 1 1 1 §* Estimate based on 1 H 03 actual growth rates. Sources: • IDC, “Application Deployment Platform Software Market, 2000 -2002, with Leading Suppliers” June 2003, Dennis Byron, Vice President, Business Process and Deployment Software Research • Gartner First Take "IBM Has Top Share in All Application Integration, Middleware Markets", J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003. 38
IBM Software Group Why IBM? Industry standards leadership 1998 / 1999 2000 2001 2002 2003 Java, XML and eb. XML Web Services and UDDI Web Services and Tools Web Services and Security § Co-author of SOAP 1. 1 and submission to W 3 C § Cofounder of UDDI. org and author of original UDDI specification § Co-author of WSDL § IBM contributes SOAP 4 J to Apache § Led submission of WSDL to the W 3 C § Co-chaired W 3 Web Services Workshop § Founder of Eclipse. org § Co-author of W 3 C XML Schema standard § Chair of Web Services Interactive Applications TC § Founder and chair, Web Services Interoperability Organization § Co-author of Web services bus process specification (BPEL, WS-TX, WS-TC) § Co-author for Web Services Security roadmap and specification § Co-founder and lead architect for Rosetta. Net § Author of XML 4 J § Chair OMG XML Metadata Interch. Format § Co-author W 3 C Document Object Model § Founder XML. org § Elected to Board of Directors in OASIS § Submission of BPEL to OASIS § Co-chair WSBPELTC in OASIS § Submission of Common Base Events to WSDM TC in OASIS § Submission of WS-Manageability to WSDM TC in OASIS § Co-authored and published EPAL specification to WC 3 § Co-chair WSDM TC in OASIS § More than 1, 000 developers devoted to XML and more than 1, 500 focused on Linux; over 200 software products running on Linux § Led workgroup responsible for finalization of SOAP 1. 2 39
IBM Software Group Why IBM? Award-winning software brands Technology leadership “Best in Enterprise Integration” — Intelligent Enterprise Readers Choice award 2002 IBM is the leader in application integration. — Gartner, October 2002 IBM has widened lead as the leading and most question-free vendor in commerce servers. IBM is the leader in portal software in 2002. — Gartner, 2003 — Giga, August 2003 IBM is the leader in business automation. — Aberdeen, September 2002 40
IBM Software Group Award-winning Business Partner NOTE: Business Partner Applications here awards The more local the award the better Any local civic clubs or organization? 41
IBM Software Group IBM is committed to midsize businesses Nobody invests more § $1 billion annual investment in engineering § $5 billion annual investment in technology acquisition – Modeling – Process Integration – Software Development “Express is proof that IBM is serious about the SMB market. ” § More than 7, 000 developers – Wayne Scarano, SGA Business Systems IBM Express is affordably priced. Experience really counts § § § § 10, 000 customer sites rely on Web. Sphere MQ. 2, 000 customers rely on Web. Sphere Business Integration. 2, 000+ customers reply on Web. Sphere Portal since introduction in 2000. Web. Sphere Commerce powers 6 of top 10 pharmaceuticals. IBM offers 48 industry-tailored business integration solutions that span 11 industries. IBM Web. Sphere customers included 91 of the top 100 global companies in 2003. 450 K+ companies rely on IBM DB 2 Information Management solutions. 42
IBM Software Group Businesses like yours need options and choices IBM delivers. Others don’t. “While we expected some apprehension about over-dependence on Microsoft, we were surprised at the extent of this concern throughout the SMB market. Whether a five-person pizza shop or a 400 -employee manufacturing facility, SMBs reported similar anxiety about Microsoft. ” — Helen Chan, senior analyst, Small And Medium Business Strategies, The Yankee Group Express demonstrates commitment to midsize businesses “Express has allowed us to open up to those markets that in the past really weren't interested in IBM from a cost and support standpoint. ” —Sam Fatigato, CEO of Ascendant Technology, January 21, 2004 43
IBM Software Group Committed to the midsize NOTE: Any local press headlines? Articles about the BP? marketplace Happy Together: IBM, Linux and Small Businesses May 30, 2003 IBM Gets Serious About Express January 21, 2004 IBM escalates SMB war with Microsoft February 25, 2004 SMB Partners Eyeing Web. Sphere Express June 6, 2003 Software giants think small: IBM, Microsoft move into niche markets December 11, 2004 IBM Expects SMB to rev up IT spending in 2004 January 2, 2004 44
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