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© 2011 IBM Corporation
Smarter CommerceBuilding a customer-centric business
Industry Solutions Sales Marcelo Cabane, Director – Latin America
© 2011 IBM Corporation2
We have entered the age of the new customer
Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller.
Customer expectations of service, price and delivery is soaring.
This is changing the entire way products are sourced, manufactured and distributed—and making business more complex than ever.
“Worldwide economic change now occurs simultaneously and instantly.”CEO, Telecom Industry
“When the business model is innovative, operations and the product will follow automatically.”Ronald de Jong, CEO Philips CL, Germany
Customers now have unlimited access to information and can instantly share it with the world
"Social networking and the Internet will allow us to drive more new ways of interacting with consumers than we have ever had before.“Consumer Products CEO, United States
© 2011 IBM Corporation
These disruptive forces ripple from the customer through the enterprise and across whole industries
Individuals The connected consumer The networked workforce The empowered citizen
Industries Value migration Value chain redefinition Fragmentation
Enterprises New business models Optimized digital operations Connected enterprise
Business Challenges
• Increased customer expectations• Accelerated speed of change• Different ways to engage digitally
• Industry disruption from new competitors
• Value migration creates winners and losers
• New types of collaboration
• Redefined customer value• Managing across digital and physical• Significant risk, security, compliance
and privacy concerns
Source: IBV Analysis
© 2011 IBM Corporation4
Power has shifted to the customer compressing margins, forcing companies to transform their approach to commerce
In this new era, businesses need to:
Understand and anticipate customer behavior based on customer insights across all channels
Adapt sourcing and procuring of goods and services based on customer demand and optimize supplier interactions across extended value chains
Market, sell and fulfill the right product and service, right price, right time and place
Service customers flawlessly, predict and drive customer loyalty
© 2011 IBM Corporation5
It helps you more effectively buy, market, sell and service
At IBM, we call it Smarter Commerce
Smarter Commerce is a strategic approach that places the customer at the center of your business operations
It gives you increased margins, better opportunities and new revenue streams
It boosts efficiency and identifies opportunities at every stage of the commerce cycle
It synchronizes your entire value chain to provide better outcomes
It capitalizes on the insight generated through social and mobile commerce and collaboration to enhance, extend and redefine customer value
© 2011 IBM Corporation6
Smarter Commerce can help transformevery phase of the commerce cycle
BuySourcing, controlling and procuring of goods and materials
MarketTargeted and personalized marketing across all customer interactions
SellSelling and fulfillment of products and services across all channels
ServiceServicing customer needs across all interaction channels
Customer
Integrated Value Chain
An international transportation company reduced partner integration time by more than
95%
A retail pet company increased open and click-through rates to 5x the industry average with more sales per web visitor by
41%
A leading provider of teaching, learning,and research solutions grew direct-to-consumer commerce revenues year over year by70%
A US-based national communications service provider reduced customer churn by delivered a ROI
376 %
Sell I Order I Fulfill
Source I Control I Procure
© 2011 IBM Corporation7
IBM’s integrated portfolio for Smarter Commerce
Buy Market Sell Service
Core business processes
WORKLOAD OPTIMIZED SYSTEMS
CORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND SERVICES
ADVANCED ANALYTICS Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management
Market and customer mgmtAligning sales, marketing and operations to engage with customers
Innovation and business valueInnovating and aligning business models to drive value to the customer
• Trading Partner Mgmt• Supplier Management• Supply Chain Visibility• Logistics Management• Inventory Optimization
• Predictive Analytics/Modeling• Behavioral Segmentation• Cross-channel Campaign Mgmt• Search Optimization, Ad
Targeting• Marketing Resource Mgmt
• B2B / B2C Cross-channel commerce
• Distributed Order Orchestration
• Fulfillment and Supply Chain Optimization
• Mobile Commerce
• Delivery & Service Scheduling
• Customer Self Service Enablement
• Reverse Logistics• Case Management
Operating and Organization ModelsDesigning operations, supply chain and the
organization model to deliver customer value
© 2011 IBM Corporation8
Buy Market Sell Service
Core business processesCORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND SERVICES
Sourcing and procuring goods and materials required to
deliver products and services to meet customer demand
Developing, delivering, and measuring relevant and consistent messages across multiple channels
to drive demand
Selling and fulfillment of products and services across multiple
channels to drive sales
Servicing customer needs across all interaction channels to drive
repeat sales and enhance lifetime value of a customer
• Cross-Channel Order Capture, Cart and Catalog
• Customer-centric Shopping Experience• B2C/B2B Storefronts• Precision Marketing
Coremetrics• Analytics• Segmentation• Reporting• Search Optimization• Mobile
Sterling Commerce• Cross Channel Order
Management • Configuration• Pricing• Multi-vendor catalog• Quoting
Sterling Commerce• Distributed Order Management• Warehouse Management• Transportation Management• Supply Chain Visibility Sterling
Collaboration Network/B2B Services
Unica• Resource Mgmt • Campaign Mgmt• Marketing execution • Performance• Analysis
ILOG Supply Chain• Network Optimization• Transportation Optimization
Sterling Commerce• Warehouse Management• Transportation Management• Supply Chain Visibility• Sterling Collaboration
Network/B2B Services
ILOG Supply Chain• Product Optimization• Inventory Optimization
Retail Store Solutions • Retail POS Solutions• Self-Service Portal/Kiosk• POS Applications
Sterling Commerce• Delivery & service Scheduling• Reverse Logistics
IBM Case Manager• Case Design, Run-time, Analytics• Collaboration• Rules & Events
Unica• Service messaging• Notifications
PureScale Application Systems
Smart Analytics System BPM Suite
Integration across best-of-breed products to deliver industry focused solutions
ADVANCED ANALYTICS Store analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social Analytics | Master data management
WORKLOAD OPTIMIZED SYSTEMS
© 2011 IBM Corporation9
INNOVATION
RESEARCH
INVESTMENT
EDUCATION
Integrated Solutions: $2+ billion investment in best of breed buy-market-sell software and expertise to deliver integrated solutions for our clients
New GBS Practice: Global Business Services expanding its consulting and solutions capabilities for commerce with a new practice
IBM Smarter Commerce: Making it Real
IBM Research Innovation: Comprised of over 3000 researchers, IBM Research includes R&D in the areas of customer insight, financial management, social business and supply chain, working with clients to develop innovative approaches to deliver business value
Enabling our Ecosystem: A IBM Smarter Commerce University dedicated to on-ramping business partners, new hires and consultants
Extension of our Business Analytics & Optimization: Leverage >$14 billion in analytics focused acquisitions. The BAO practice has 8,000+ dedicated business consultants with industry expertise & includes a Customer, Marketing & Sales Analytics focusSmarter Computing: Over 25,000 hardware and 25,000 software developers WW, IBM is investing in Workload Optimized Systems to help companies manage the high transactional & real-time business insights needs driven by commerce applications.
© 2011 IBM Corporation11
What is IBM Smarter Commerce?Smarter Commerce is a new approach that transforms the speed in which clients manage and adapt their buy, market, sell, and service processes putting the customer at the center of decisions and actions. It drives new levels of company differentiation leading to greater customer loyalty, revenue / margin growth, and agility.
IBM’s approach to Smarter Commerce is comprehensive, integrated, outcome driven and flexible. We will help companies:
Understand and anticipate customer behavior based on customer insights across all channels
Adapt sourcing and procuring of goods and services based on customer demand and optimize supplier interactions across extended value chains
Market, sell and fulfill the right product and service, right price, right time and place
Service customers flawlessly, predict and drive customer loyalty
© 2011 IBM Corporation12
For Staples, a $24B retailer, Smarter Commerce means transforming the customer experience across all interaction channels by delivering a personalized buying experience for over 10,000 B2C and B2B customers in 27 countries
For ING Bank, serving over 85M customers, Smarter Commerce means transforming their marketing so personalized product offers can be delivered across multiple channels in real time resulting in €20M increase in corporate earnings, 35% reduction in marketing costs, and shorter cycle times
For Crocs, a $700M manufacturer, Smarter Commerce means transforming their fulfillment operations and supply chain so internet customer orders are filled with 100% accuracy through their network of suppliers at the lowest cost
What does Smarter Commerce mean to these clients?
© 2011 IBM Corporation13
IBM Smarter Commerce – Leverage IBM’s Brand Differentiators
Setting the shared agenda
Making the case with expertise and proven outcomes
Charting the client’s path to
deliver that value
Collaborating with experts to define
future value
Belief
Participation Evidence
Realized value
Build a NetworkOf Influencers
IBV Studies
Analysts and thought leadership whitepapers
Press coverage, bylined articles, op-
eds and client references
Digital webcast
series
Op Ads
Microsite & CXO site
Third party and IBM events &Roundtables
Videos / podcasts
Innovation Discovery and Classroom to Client
Workshops
Smarter Commercemarketing
and progression paths
© 2011 IBM Corporation14
IntegratedComprehensive
Outcome Driven Flexible and Open
What is unique about IBM’s Smarter Commerce?
Spans the complete commerce lifecycle across buy and sell-side commerce
Packages software, consultative and integration services and infrastructure
Integrated products and capabilities to deliver industry focused solution offerings
A strong set of integrated analytics to track customer behavior across all channels
Drives measureable business outcomes to industry specific business owners
Delivers powerful optimization capabilities around all aspects of the commerce lifecycle
Flexible deployment models that include on-premises, as-a-service, hosted or hybrid models
Modular offerings and flexible consumption
14
Integrated Solution
Suppliers
Influencers
PartnersCustomers
© 2011 IBM Corporation15
ING Bank coordinating marketing outreach to consumers
€20 million increase in corporate earnings attributed to increased marketing effectiveness Annual direct mail costs reduced by 35% Campaign cycle time reduced to maximum of 4 weeks
Multiple bank brands, driving 60 million pieces of direct mail each year, were merged into one
Campaign management process was disconnected, costly and involved too many stakeholders
Marketing costs were increasing while response rates were declining
Unified cross-channel solution controls marketing via direct mail, email, web, call center and branches
No marketing silos: a centralized customer intelligence team has the tools to plan and execute multichannel marketing campaigns
Challenge
Solution
Results
Customer Profile
ING offers banking, investments, life insurance and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries.
© 2011 IBM Corporation16
Dal-tile delivers perfect order orchestration
A sales center could only see what they had available in their individual store Existing system was costing them time and
money due to its inflexibility Manage all of the customer needs through a
single sales center
IBM® Sterling Order Management reduced order fulfillment costs by efficiently orchestrating order and service fulfillment Flexibility for future growth required to meet
changing customer demands
Challenge
Solution
Results
Stores can capture and modify orders through a single system for all delivery methods — including home delivery, in-store pickup, and plant delivery
Enables Dal-Tile to keep inventory at a minimum and reduce their inventory costs
A sales center could only see what they had available in their individual store
Existing system was costing them time and money due to its inflexibility
Manage all of the customer needs through a single sales center
IBM® Sterling Order Management reduced order fulfillment costs by efficiently orchestrating order and service fulfillment
Flexibility for future growth required to meet changing customer demands Customer Profile
Dal-tile designs, manufacturers, and distributes ceramic, porcelain, glass, metal, and natural stone tile products to the construction and development, architecture, and do-it-yourself markets.
© 2011 IBM Corporation17
Challenge
Solution
Results
Customer Profile
Staples enables customers to shop seamlessly across all channels
Automated support for diverse policies, contracts, buyer roles on a single platform
Over $1Billion (70%) of total B2B sales driven through site
Support a personalized, customer-centric experience for B2C customers Support multiple B2B customers buying under
multiple contracts, with buyers that have differing levels of purchase authority
Single IBM commerce platform handles both B2B and B2C 10,000+ buying organizations each see contract-
specific pricing and policies
Staples sells office supplies, technology, furniture and business services to consumers and businesses in 27 countries around the world.
© 2011 IBM Corporation18
Challenge
Solution
Results
SXC health solutions enables secure information exchange
Comprehensive integration serving as their hub for inbound and outbound data
Secure and reliable exchange of data
Due to the amount of information being sent to all aspects of the pharmaceutical supply chain, SXC must have a secure and reliable system for data exchange
IBM® Sterling Business Integration Suite Process provides visibility allowing SXC to check all attributes of their files and exchange data securely
Customer Profile
SXC is a key player in the pharmacy supply chain, providing eligibility, enrollment, payment, claims and reporting data.