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We can provide a new dimension in computing for retailers.
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© 2010 IBM Corporation
IBM zEnterprise System business value for the retail industry Smarter systems for a smarter planet™
George Mattathil -
5/2/2011
Posting reference 727
© 2010 IBM Corporation 2
IBM’s industry value proposition isenhancedwith the introduction of
the new IBM®zEnterpriseTM System.
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 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
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
IBM is helping retailers address critical imperatives.
© 2010 IBM Corporation 3
IBM zEnterprise System helps IBM deliver against retail industry imperatives.
1 2 3
Deliver a smarter
shopping experience
Develop smarter merchandising
and supply chains
Build smarter operations
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 …
“… 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
44 percent lower cost per credit
card transaction 25 percent
lower cost per retail store
© 2010 IBM Corporation 4
Retail industry business issues are addressed by new IBM zEnterpriseTM System advantages.
Operational advantage
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
Deliver a smarter
shopping experience
Retail
industry
imperatives
Build smarter
operations Develop smarter
merchandising and
supply chains
© 2010 IBM Corporation 5
Key features of the new IBM zEnterpriseTM System enable these advantages.
Operational advantage
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
Achieved by
Consolidation of databases and
access to information helps reduce
redundancy of data and resulting
number of servers
Reductions in servers and data
duplication and reductions in ETL
help reduce software license costs
Fit-for-purpose processors can
reduce cost of acquisition by up to
35 percent
Fit-for-purpose storage can reduce
storage total cost of ownership by
up to 38 percent
IBM System z® in particular, and
IBM servers in general, require less
energy
Overall reduction in system
management resources based on
zEnterprise Unified Resource
Manager
Unified development tools for all
environments helps enable skill
transfer and improves developer
productivity by up to 20 percent
Centralized management of virtual
servers across a heterogeneous
pool with more than 100,000 virtual
servers in a single zEnterprise
System
Processing directed automatically
to best fit-for-purpose system
helps increase performance and
reduce servers
Immediacy of access to data is
enhanced substantially as ETL
across platform is reduced or
eliminated
In-memory capability for both
vector and columnar processing
ETL – Extract, Transform, Load
© 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)
Unifies management of resources, extending IBM System z qualities of service end-to-end across workloads
Provides platform, hardware and workload management
Optimized to host large-scale database, transaction, and mission-critical applications
The most efficient platform for large-scale Linux consolidation
Capable of massive scale-up
New easy-to-use z/OS V1.12
zEnterprise Unified Resource Manager
IBM zEnterprise 196 (z196)
Selected IBM POWER7 blades and IBM System x Blades* for tens of thousands of AIX and Linux applications
High-performance optimizers and appliances to accelerate time to insight and reduce cost
Dedicated high-performance private network
zEnterprise Unified Resource Manager
* All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.
zEnterprise BladeCenter Extension (zBX)
zEnterprise BladeCenter Extension (zBX)
6
© 2010 IBM Corporation 7
Why does the IBM zEnterpriseTM System matters to retailers?
Deliver a smarter
shopping experience
Build smarter operations
Develop smarter
merchandising and supply
chains
Multiple channels
App
ServerCustomer
Database
App
ServerCustomer
Database
Single virtual infrastructure
Single virtual infrastructure
Claims
Processing
Fraud
Detection
Claims
Processing
Fraud
Detection
Smart Analytics Optimizer
Smart Analytics Optimizer
Next generation
e-commerce
with zEnterprise
SAP enterprise
resource planning
(ERP) / business
applications with
zEnterprise
Real-time fraud
detection with
zEnterprise
© 2010 IBM Corporation 8
Why systems matter to retailers: We help provide next-generation e-commerce.
Today IBM zEnterprise™ System
Multiple channels
Customer database
Multiple channels
Application server farm
App
server Customer
database
Single virtual infrastructure
Business challenges:
– Provide seamless shopping experience
across all channels
Operational challenges:
– Integrating across multiple siloed systems
– Avoiding system bottlenecks as transactions
spike
– Scale without added complexity and cost
– Addressing potential security exposures
New system design, new possibilities:
– Helps simplify management of a multi-channel
solution across a single virtualized infrastructure
– Can handle unpredictable spikes in e-commerce
traffic with automated provisioning and workload
management
– Can reduce operational costs by up to 38 percent
by integrating deployment of distributed platforms
through IBM zEnterpriseTM System1
1Based on IBM analysis of a large financial services company
datacenter with 10,000 distributed workloads
© 2010 IBM Corporation 9
Why systems matter to retailers: We help provide near real-time fraud detection.
Today zEnterprise
Business challenges:
– Identify fraud risks in real time across multiple lines
of business and payment channels
Operational challenges:
– While data warehouse can detect trends, difficult to
prevent fraud in real time because data is copied in
bulk or batch mode
– Ability to achieve real-time performance
– Risk, complexity and cost of multiple copies of data
New system design, new possibilities:
– Real-time performance; claims processing
(online transaction processing (OLTP) and fraud
(analytics) queries from same database
– Can speed fraud detection query times by up to
10x with Smart Analytics Optimizer1
– One third less storage required when claims
(OLTP) and fraud (analytics) combined on IBM
zEnterpriseTM System; less risk2
Claims
processing
Fraud
detection
(Analytics)
Data
extracts
Single virtual infrastructure
Claims
processing
Fraud
detection
Smart Analytics Optimizer
(OLTP) 1 Based on internal IBM test results that reflect actual client queries 2 Internal IBM testing and modeling. Savings will vary by country.
© 2010 IBM Corporation 10
Why systems matter to retailers: We help provide enterprise resource planning (ERP) / business applications.
Today IBM zEnterprise™ System
Business challenges:
– Delivery new business services fast
– Maximize application investment
Operational challenges:
– Achieving the best price/performance
possible
– Predictable service delivery
New system design, new possibilities:
– Run your applications where they
perform best
– Investment protection—runs current
applications and independent
software vendor (ISV) software
without change
“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
© 2010 IBM Corporation 11
Here is an example of a retail client using SAP Financials and IBM zEnterpriseTM System.
The future with zEnterprise
SAP Data Server on IBM DB2® IBM
z/OS® with Application Serving on p7
Blades in zEnterprise BladeCenter®
Extension (zBX) integrated in a
zEnterprise system. Future exploration
of enabling SAP Business Warehouse
Accelerator as an application running
on x86.
Business advantage
Ensure business controls, such as security and compliance,
can be achieved on a consistent basis across the
applications and platforms
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
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
Organizational advantage
Insulate application development teams from
infrastructure technology
Consolidation of skills through consistent tools
© 2010 IBM Corporation 12
IBM’s Retail Industry Framework is supported by an ecosystem of
key IBM Business Partners that are optimized on zEnterprise.
Note: Partner shown is illustrative subset of our complete partner
ecosystem.
“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
© 2010 IBM Corporation 13
With IBM zEnterpriseTM System …
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
Retailers can increase the security of
sensitive data by extending the security
capabilities of zEnterprise to the
BladeCenter® Extension
Management
integration Multi-platform
integration
Stack
integration
Summary: We can provide a new dimension in computing for retailers.
For more details:ibm.com/systems/zenterprise
Posting reference 727