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®
IBM Software Group
© 2007 IBM Corporation
WebSphere Commerce B2B Business Models
WebSphere Commerce B2B Business Models
2
Market Message
Business Models
WebSphere Commerce B2B solution provides widest range of out-of-the-box Business Models to support all possible way to interact with customers using a
single platformBusiness Processes to reduce total cost of doing business and improve
customer/partner satisfaction by automating LOB processes
Business Processes
Electronics Industrial Equipment Telecom
Industry Plays
WebSphere Commerce Solution Strategy
WebSphere Commerce B2B Business Models
3
WebSphere Commerce B2B solution offers out-of-the-box support for wide range of business models and processes
MarketingCatalog / Product
Information
Partner/Channel
Relationship
Sales & Operations
Service & Support
WebSphere Commerce Platform
Target-to-Engage
Recruit-to-Monitor
Source-to-Merchandise
Quote-to-Cash
Request-to-Resolve
Simple B2B Business Models Complex
LOB Business Processes/Activities
B2B Direct DistributorHosted
PartnersValue Chain
WebSphere Commerce B2B Solution Framework
Electronics Industrial Equipment Telecom
WebSphere Commerce B2B Business Models
4
WebSphere Commerce B2B Business Models
MarketingCatalog / Product
Information
Partner/Channel
Relationship
Sales & Operations
Service & Support
WebSphere Commerce Platform
Target-to-Engage
Recruit-to-Monitor
Source-to-Merchandise
Quote-to-Cash
Request-to-Resolve
Simple B2B Business Models Complex
LOB Business Processes/Activities
B2B Direct DistributorHosted
PartnersValue Chain
Electronics Industrial Equipment Telecom
WebSphere Commerce B2B Solution Framework
WebSphere Commerce B2B Business Models
5
B2B Direct
Scenario Single seller selling directly to customers or
businesses
Manufacturers selling directly to customers by eliminating the channel (e.g. ibm.com)
Manufacturers selling production goods to another business
Retailers selling non-production goods to business organizations (e.g. Staples Link)
Challenges Managing unique contract for each organization
Support for hierarchical roles that govern access and authority
Operating multiple individual sites for multiple buyer organization
Business CustomerManufacturer,
Retailer
Reseller, Dealer
Consumer
B2B Direct Selling
Enterprise Accounts
Direct to customer
Direct to business
WebSphere Commerce B2B Business Models
6
B2B Direct – WebSphere Commerce Capabilities
Catalog Management
Contracts
Member Management
Extended Sites
Key WebSphere Commerce Capabilities
Multiple catalog hierarchies Product assortments Customized and contract-driven catalog view
Contract-based pricing and policies Multiple contracts per customer Contract modeling tools for business managers
Configurable, granular Business Policies Hierarchical roles govern access and authority Integrated workflow
Individual, branded stores for each B2B customer Multiple storefronts on a single instance
Manages over 1 million products
Customer Examples*
Customized, contract-driven catalog and pricing
Buyer sites with roles-based pricing and approval authority
Thousands of buyers sites customized for individual orgs
*May not run this specific biz model
WebSphere Commerce B2B Business Models
7
Staples Supporting Diverse Contractual Relationships
Challenge
Supporting multiple customers buying under multiple contracts
Individual buyers have differing levels of purchase authority
Track site usage and online sales rates
Solution
10,000+ buying organizations each see contract-specific pricing and policies
Built-in approval workflow facilitates purchase authorization across multiple users at different organizational levels
BenefitsOver $1Billion (70%) of total B2B sales
driven through site
Site usage analysis enables Staples to continually enhance search engine performance
Automated support for diverse policies, contracts, buyer roles on a single platform
"This past year alone, 86 percent of the new customers we acquired use StaplesLink for doing business with us” - Lisa Hamblet, VP, B2B e-commerce, Staples
WebSphere Commerce B2B Business Models
8
Distributor (Brokerage model)
Scenario Value-added bridge between suppliers and
customers
Multiple manufacturers selling to hundreds of resellers via single distributor
Challenges Streamline information delivery and transaction
along the value chain
Integrate with suppliers’ and resellers’ existing systems
Selling through Distributor
Manufacturers
Distributor
Resellers
WebSphere Commerce B2B Business Models
9
Distributor model – WebSphere Commerce Capabilities
Guided Selling
RFQ
Order Management
Collaboration &
Workspaces
Key WebSphere Commerce Capabilities
Parametric Search (drill down on attributes) Sales Assistance (Q&A dialog) Side-by-side Comparison
Solicit quotes for goods & services from interest list Create contract or create order Workflow for create, modify, approve, and submit
Single source of order; integration with backend Order Splitting, ATP and Routing Transaction visibility across the channel
Document sharing; Project management Threaded discussions Instant messaging
Assisted Selling and configuration enhances ability
to sell complex solutions
Customer Examples*
Improve response times and interaction costs with automated RFQ support
Integration hub streamlines order processes real-time between
ERP, suppliers, and customers
Real-time collaboration between resellers and suppliers increase sales staff productivity by 37%
*May not run this specific biz model
WebSphere Commerce B2B Business Models
10
Avnet enables Suppliers and Resellers to become On Demand Businesses
Challenge
Provide value-added bridge between suppliers and thousands of resellers
A solution powerful yet flexible enough to integrate with all of suppliers’ and resellers’ existing business processes
Solution
Automate needs of resellers from lead generation, to proposal and quote design, all the way to closure
Guided selling, automated information delivery, collaboration between suppliers & resellers, analytics and sense and respond capabilities
“Technology has enabled us to reach out and provide IT support for our resellers and our
suppliers—to lift them up and make them more competitive”–Bill Chapman, CTO, Avnet Inc.
BenefitsROI of 360% in first year 37% increase in sales staff productivity82% reduction in resellers’ order cycle
time; 85% reduction supplier cycle time 20% reduction in overall IT costs 58% of reseller orders fully automated
from end to end
WebSphere Commerce B2B Business Models
11
Hosted Partners
Scenario An enterprise selling through a network of partners
Enterprise supports smaller partners by providing catalog and IT infrastructure to create a store-front
Challenges Ability to onboard a new partner that does not have
IT infrastructure
Selectively share catalog while allowing partners to sell their own products
Maintain consistent brand image and user experience while offering unique products tailored to specific set of customers
Hosted Partners
Manufacturer
Partner/Reseller Network
Channel Hosting
WebSphere Commerce B2B Business Models
12
National Accounts
Scenario An enterprise selling to major customers through a
network of partners
Supporting dealers by providing catalog, Contract pricing, terms, and IT infrastructure to create a consistent national multi-dealer/distributor experience
Challenges Onboarding National Accounts quickly—with
specific Catalog views, prices and terms.
Share customer specific catalog views
Maintain consistent brand, terms and user experience while offering products specific to a set of customers
Hosted Partners
Manufacturer
Partner/Reseller Network
Catalog &
Contract Hosting
Business Customer
WebSphere Commerce B2B Business Models
13
Hosted Partners – WebSphere Commerce Capabilities
Extended Sites
Catalog Filters
Campaigns &
Promotions
Key WebSphere Commerce Capabilities
Deploy multiple partner storefronts on a single instance
Central site administration with controlled access
Share catalog and business assets across sites Deliver consistent brand experience while running
site-specific campaigns and promotions
Selectively share/filter catalog with partners Allow partners to add their own products
Customer segmentation; targeted marketing Web and E-mail promotion, marketing
experimentation
100’s of individually managed sites while sharing a single
checkout process
Customer Examples*
Distributors use filters to re-price manufacturer’s products to
create their own catalog
Use profiles and preferences, personal lists and targeted marketing to differentiate
*May not run this specific biz model
WebSphere Commerce B2B Business Models
14
eFollett hosts hundreds of bookstores, enable shared and autonomous functionality from a single instance
Challenge
Redesign the retail platform to host and integrate with more than 900 campus stores
Centrally manage storefronts while allowing partners to differentiate themselves
Solution
Leverage Extended Sites to share the same infrastructure to collectively serve more than 4 million students across North America
Campaign and marketing tools deliver targeted content, advertising, and enhanced user experience
BenefitsServes more than 4 million students
across North AmericaSingle login and checkout process
across all partner sitesCross-sells and feature products drive
additional revenueStreamlined retail process (order-to-
fulfillment) reduces maintenance costs Increased operational efficiency from
automated back-office integration
WebSphere Commerce B2B Business Models
15
Value Chain
Scenario A chain of enterprises that sell goods or services
Multiple manufacturers selling through multiple distributors to end customers
B2B2B or B2B2C
Order handoff
Marketplace hub
Challenges Integrating various demand chain players on a
single platform
Ability to host distributors that do not have IT infrastructure
Aggregating and filtering catalog from multiple manufacturers to display products tailored to individual customer
Tiered Demand Chain
Manufacturers
Distributors
Customers
WebSphere Commerce B2B Business Models
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Value Chain – WebSphere Commerce Capabilities
Catalog Management
RFQ
Order Management
Channel Management
Key WebSphere Commerce Capabilities
Catalog sharing with downstream partners Sourcing from multiple upstream manufacturers Catalog filtering to support contracts
Solicit quotes from multiple sources Multi-round negotiation Support for custom and made-to-order products
Automate ordering process from quote-to-cash Order handoff (open/closed orders) to partners Transaction visibility across the channel
Rapidly onboard new partners with Extended Sites Manage business relationship through Contracts Collaboration tools to boost productivity
Integrate with multiple manufacturer catalogs and filter
appropriately for end users
Customer Examples*
Reduced RFQ lead times from days to minutes
Integration hub streamlines order processes real-time between
ERP, suppliers, and customers
Provides suppliers and resellers with real-time info to
optimize decision-making
*May not run this specific biz model
WebSphere Commerce B2B Business Models
17
Changing Inc Orchestrating the Demand Chain
Challenge
Provide online commerce capabilities for paper industry extended demand chain
Minimize cost and additional workload to support new channel in demand chain
Solution
Integrated network connects manufacturers, distributors and customers
Manufacturers and distributors can set and manage their own storefronts hosted in Changing Inc environment “Reordering makes up 60 percent of our business
and now members can see all their previous orders and reorder with just a keystroke”
BenefitsCreated consortium of 7 manufacturers
which includes a broad product line needed by demand chain
Implemented using existing business partner
Secured business with new customers even prior to launch
Platform for building relationship, loyalty and improving revenues
WebSphere Commerce B2B Business Models
18
WebSphere Commerce B2B Business Models
B2B Direct DistributorHosted
PartnersValue Chain
Selling directly to businesses or
customers
Catalog mgmt.
Contracts
Req. List
Member mgmt.
Extended Sites
Bridge between suppliers and
customers
RFQ
Guided Selling
Configurator
Order Mgmt.
Workspaces
Selling through a network of partners
Extended Sites
Catalog Filters
Campaigns & Promotions
Collaboration Tools
Selling through a chain of enterprises
Catalog mgmt.
RFQ
Order mgmt.
Channel mgmt.
Extended Sites
Business Models
WebSphere Commerce Capability
Customer Examples
WebSphere Commerce B2B Business Models
19
Other B2B and Industry Plays in XL
Link to Xtreme Leverage (XL): http://w3-103.ibm.com/software/xl/portal/viewkitcontent?srcID=KP01&kitID=V227365O87155H39&contentID=Y957159X83272J32&contentType=component&contentTitle=Presentations
WC B2B Business Models
WC Electronics Sales Play
WC B2B Business Processes (Cross-Industry Sales Play)
WC Telco Sales Play