+ All Categories
Home > Business > Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

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

Date post: 20-Jan-2015
Category:
Upload: idea-industry-data-exchange-assc-inc
View: 380 times
Download: 1 times
Share this document with a friend
Description:
 
Popular Tags:
41
© 2011 IBM Corporation September 2011 Smarter Commerce Redefining the value chain in the age of the customer Presenter: Scott Lewis - IBM
Transcript
Page 1: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

September 2011

Smarter Commerce Redefining the value chain in the age of the customer Presenter: Scott Lewis - IBM

Page 2: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

This is changing the entire way products are sourced, manufactured and distributed—and making business more complex than ever.

Customer expectations of service, price and delivery is soaring.

Customers now have unlimited access to information and can instantly share it with the world

Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller.

We have entered the age of the empowered customer

95 million Number of tweets sent via Twitter each day

75% Percentage of people who believe companies don’t tell the truth in advertisements

$93 billion Amount in sales missed due to out of stock inventory

Page 3: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Disruptive forces signal an end to business as usual

Individuals

The connected consumer

The networked workforce

The empowered citizen

Industries

Value migration

Value chain volatility

Customer-insight driven innovation

Enterprises

Evolved business models

Optimized digital operations

Connected enterprise

“Time is ticking for pure product

companies. They need to become

experience providers.”

Consumer Electronics, Europe

"We seem to have more data but our information is worse, as it is more difficult to sift out what information is most important.”

CEO, Electronics Manufacturing Services, North America

Source: IBV Analysis

“We need to do a better job at finding a

way to use this information. The value

chain needs to be connected to bring the

most value to our customers.” Electronics company CEO, Canada

Page 4: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

…with B2C and B2B commerce models converging B2C

Research / Product Reviews

Personalization Social Media

Configure Bundles of Products &

Services

Drop-Ship strategies

Visibility

Market Sell Fulfill

Market Sell Fulfill

B2B

“I get product ratings & reviews for a $20 book – why not for a $1,000

industrial battery assembly?”

“How do I offer product recommendations to my B2B

customers?”

“How can I leverage the power of social networks with my B2B

customers?”

B2B customer (buyer) expectations are set by B2C sites – they want a rich user experience too

B2B sellers are adopting B2C-like marketing techniques to shift from “order-taking” to “order-making”

B2B sellers want to use social networks to promote their brands; buyers want feedback from the community on products and services

Page 5: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Power has shifted to the customer - compressing margins and changing paradigms

In this new era, businesses need to:

Service customers flawlessly, predict and drive customer loyalty

Market, sell and fulfill the right product and service at the right price,

time and place

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

Page 6: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

It drives growth by enhancing, extending, and redefining the value you provide

At IBM we call the path forward: Smarter Commerce

Smarter Commerce is a strategic approach that places the customer at the center of your business operations

It increases margins by boosting efficiency at every stage of the commerce cycle

It synchronizes your entire value chain to deliver consistent and predictable outcomes

It maximizes the insight generated through customer interactions

It capitalizes on social and mobile commerce

It improves collaboration and visibility for your customers & partners

Customer

Page 7: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Smarter Commerce focuses on three dimensions centered around the customer

You need an approach that

allows you to more effectively

connect, collaborate, conduct

commerce and create a

differentiated customer

experience

In today’s world of instant

business, you need deep

insights, in real-time that you

can turn into immediate action

Customer Insight In turn, you must re-think

how your customers define value, and the changes you

must make to your value chain so you can deliver

exactly what your customers want - profitably

Customer Value Strategy

Customer & Partner Engagement Customer

…increasing the value companies generate

for their customers and partners in a rapidly

changing digital world

Page 8: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Smarter Commerce can help transform every phase of the commerce cycle

8

Buy Drives intelligent,

adaptive and optimized

extended supply chains based on

customer demand

Market Creates

personalized and relevant offers

with unified cross-channel

marketing

Service Anticipates

behavior and delivers flawless customer service

across all channels

Sell Enables

customers and partners to

buy what they want, when and

where

Sourcing, controlling and procurement of goods and services

Targeted and personalized marketing across all customer interactions

Selling and fulfillment of products and services across all channels

Servicing

customer needs across all

interaction channels

Market Buy

Service Sell

Customer

Insight Strategy

Engagement

Page 9: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

IBM’s integrated portfolio for Smarter Commerce

Buy Market Sell Service

Core Business Processes

CORE BUSINESS SOLUTIONS

VALUE CHAIN STRATEGY AND ENABLERS

Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management

Market and customer mgmt Aligning sales, marketing and operations

to engage with customers

Innovation and business value Innovating and aligning business models to

drive value to the customer

• Supplier Integration &

Management

• Supply Chain Optimization

• Logistics Management

• Payments and Settlements

• Customer Awareness & Analytics

• Social Media Marketing

• Brand Experience

• Cross-channel Campaign Mgmt

• Digital Marketing Optimization

• Marketing Resource Mgmt

• Cross-channel Selling

• Distributed Order Management

• Customer Integration &

Collaboration

• Fulfillment

• Store Solutions

• Payments & Settlements

• Delivery, Service, & Support

• Customer Self-Service

• Reverse Logistics

• Case Management

Operating and Organization Models Designing operations, supply chain and the

organization model to deliver customer value

Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software)

focused on agility, integration and automation to drive relevant business outcomes

Page 10: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

How the empowered customer is changing how you “Buy”

Increasing price pressure due to pricing knowledge of competitive products

Expecting instant product availability

Expecting quick new/enhanced product introductions

Demanding customizable product configurations

Empowered Customers are: It’s changing the way you “buy”

Deliver the highest quality products with lowest costs and on time

Easily share information across internal systems and connectivity with suppliers

Collaborative environment to capture, 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”

Customer

Page 11: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Supplier relationships are changing

More than 85%

of companies expect the

complexity of their supply

chains to grow significantly by

2012

$15+ to process

a manual document and

$53 to reconcile

manual errors

Competitive pressures of

today’s economy

demand more information and

flexibility

70% of supply

chain officers report the lack of

visibility has a significant impact

on their supply

chain and 55%

report cost containment

concerns

64% of

organizations don’t know or don’t measure

the average cost to manage a

supplier annually

Page 12: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Companies need new capabilities to capitalize

Analysis of supplier

community and spend for efficient

purchasing processes

Seamless and secure

integration of key business

processes with suppliers

Secure, efficient, and consistent

means of accessing and

exchanging information with

suppliers

End-to-end visibility from

order creation to payment and

tracking supply chain events in

real-time

End-to-end performance management and advanced

analytics to drive continuous

improvements with supplier community

Page 13: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

IBM defines the Supplier Integration & Management Lifecycle

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.

Page 14: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Drive business growth and cost savings by optimizing your supplier

community through business analytics, technologies and services

Supplier Integration and Management enables you to:

Improve supplier performance through collaboration, visibility and

business analytics

Synchronize your supplier community and reduce risk through B2B

integration and automation

Page 15: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Supplier Integration and Management helps continuously improve every phase of the supplier lifecycle

Sourcing B2B

Integration

Collaboration

Performance

Analytics

and

Compliance

Allows

companies to

improve and re-

evaluate their

purchasing

activities and

suppliers

Provides seamless

and secure

integration of key

business processes

Enables companies to

better manage their

supplier interactions

and significantly

improve relationships

between vendors and

suppliers

Provides

companies

with end-to-

end supplier

performance

management

and business

analytics

Page 16: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Projects to make you more successful…

© 2011 IBM Corporation

Automate Procure-to-Pay Process - delivers process integration across an agile supply chain

Page 17: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Commerce begins with your supply chain partners: Have you 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

Page 18: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

There is opportunity in automating supplier integration

68% of executives report that integration challenges impede collaborative relationships with partners

$93 billion Amount in sales missed due to out of stock inventory

$15 - $20 Is the cost of manually processing a customer order

Page 19: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

The benefits of automating 100% of your procure-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

Buy

Page 20: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

IBM Sterling B2B Integration Solutions

Carriers

Banks

Partners

Suppliers

Customers

Pre-connected

partners IBM Sterling

B2B Cloud Services

IBM Sterling B2B Gateways

IBM Sterling Transformation Engines

IBM Sterling

B2B Process

Applications

Page 21: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Projects to make you more successful…

© 2011 IBM Corporation

Build a Supplier Portal - Streamlines the

way suppliers access and act on information

and strengthens relationships

Page 22: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Deliver on customer’s expectations by simplifying supplier collaboration: 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

Page 23: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

There is opportunity in supplier collaboration

68% of executives report that integration challenges impede collaborative relationships with partners

$1.2 trillion Value of excess merchandise stockpiled in supply chains configured for long lead times - Goldman Sachs

50% Of businesses plan to adopt more collaborative sourcing models

Page 24: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

The benefits of establishing a supplier portal are...

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

Buy

Page 25: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

supplier

purchasing/ procurement

• 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

contracts trade allowances

product information

forms concept development

trade allowances communications

supplier

contracts product information

orders pricing

ERP PIM/MDM TMS

Supplier Portal

Customized Reports

Real-time information

sharing

Supplier Maintenance

Supplier On-Boarding

- Contracts, finance

- Inventory, logistics

- Sales

- Performance

- Sample forms

- Add new members

- Manage users

IBM Collaboration Solutions from on-boarding to personalized information sharing

Page 26: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Projects to make you more successful…

© 2011 IBM Corporation

Refine Supplier Compliance Management- Detect and resolve compliance issues as they happen, and predict before they happen.

Page 27: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Supplier Compliance is key to efficient supplier management: What level of visibility can you provide your suppliers?

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

Page 28: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

As companies strive to reduce costs, improving supplier performance is now a best practice

45% Respondents experienced a supply chain disruption

within the past 12 months

41% Respondents have

experienced supplier failure

50% Respondents that

experienced a disruption also lost an estimate of

over $1 Million

Page 29: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

The benefits of real-time supplier compliance management...

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

Buy

Page 30: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Enable supplier communication and collaboration using IBM Sterling Supply Chain Visibility Vendor Compliance

Another

VAN

IBM® Sterling B2B

Collaboration Network

EDI Suppliers

EDI Carrier / Outsourced

Logistics Provider

Non-EDI Suppliers

Buyer Enterprise

Logistics

Procurement

Supply

Chain

Warehouse

Finance

IBM® Sterling Supply Chain Visibility Vendor Compliance

IBM® Sterling Supply Chain Visibility

Non-EDI Carrier

IBM® Sterling Supplier Portal

Page 31: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

IBM’s integrated portfolio for Smarter Commerce

Buy Market Sell Service

Core Business Processes

CORE BUSINESS SOLUTIONS

VALUE CHAIN STRATEGY AND ENABLERS

Advanced Analytics Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management

Market and customer mgmt Aligning sales, marketing and operations

to engage with customers

Innovation and business value Innovating and aligning business models to

drive value to the customer

• Supplier Integration &

Management

• Supply Chain Optimization

• Logistics Management

• Payments and Settlements

• Customer Awareness & Analytics

• Social Media Marketing

• Brand Experience

• Cross-channel Campaign Mgmt

• Digital Marketing Optimization

• Marketing Resource Mgmt

• Cross-channel Selling

• Distributed Order Management

• Customer Integration &

Collaboration

• Fulfillment

• Store Solutions

• Payments & Settlements

• Delivery, Service, & Support

• Customer Self-Service

• Reverse Logistics

• Case Management

Operating and Organization Models Designing operations, supply chain and the

organization model to deliver customer value

Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software)

focused on agility, integration and automation to drive relevant business outcomes

Page 32: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Consumer expectations are driving business changes

Empowered Consumers are:

Expecting instant product availability

Using social network tools for recommendations and validation for product selection

Demanding access to detail product information and reviews via multiple channels

Partners are carrying consumer expectations into the B2B experiences

Forcing change to:

Automation of manual processes to increase product availability

Monitoring and responding to social channels for end consumers

Support upstream channels with more content

Build socially-infused web experiences for partners

Customer

Page 33: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

B2B customer relationships are changing

Partner

mandates

require your

compliance

(Tech, SLA,

Business rules)

Big Box retailers

dictate protocols,

response times and

penalties

Velocity of

business

processes are

increasing

Drive to lower

inventory is causing

order size to

decreasing, while

order frequency is

increasing

Smaller

partners rely on

costly manual

business

processes

Lack of technical

expertise is costing

money, $10+ to

process a manual

document

Getting closer

to their

customers is a

high priority

Quickly changing

demand is driving

the need for better

feedback loops.

Page 34: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Become easier to

do business

Drive cost and

inefficiency out of

manual B2B

processes

Connect people

together to drive

innovation and

revenue

Connect Automate Collaborate

IBM Customer Integration & Collaboration enables you to…

• Any standard, any

protocol, any format

• Full range of integration

patterns and

technologies

• Community recruitment,

provisioning and

onboarding

• Security, governance

and compliance

• Business process

management

• Automated exception

handling

• Small partner

automation

• Mobile-enabled web

experiences

• Personalized portals

• B2B process visibility

and SLA

management

Page 35: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

… and leverage social media in B2B customer interactions

Page 36: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Projects to make you more successful…

© 2011 IBM Corporation

B2B Customer Engagement optimizes customer interactions

Page 37: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Commerce is not just about consumers, Have you engaged your 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

Page 38: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

There is opportunity in B2B customer engagement

43% of baby boomers (55-64) use social media in Dec. 2010, up from 9% in Dec. 2008

5.3 Billion Mobile subscriptions by the end of 2010 (almost 80% of the world population)

32% of instant messages were in enterprises versus public in 2009

Page 39: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

The benefits of better B2B customer engagement are...

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)

Sell

Page 40: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation

Page 41: Achieving Smarter Commerce Through Optimized Buy and Sell Processes - Scott Lewis, IBM

© 2011 IBM Corporation


Recommended