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© 2011 IBM Corporation
This is changing
the entire way
products are sourced,
manufactured and
distributed—and
making business
more complex
than ever.
Consumer
expectations of
service, price and
delivery are soaring.
Consumers 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 consumer
2
40+ millionNumber of people printing online coupons, up 20% vs. 2008
75%Percentage of people who believe companies don’t tell the truth in advertisements
$100+ billionAmount of sales lost to manufacturers due to out of stock inventory*
*Frost & Sullivan and
http://www.dataventures.com/docs/OOS_fullreport.pdfhttp://www.webpronews.com/internet-increases-consumers-2009-03 Brazaar voice, “Social Commerce Statistics”
© 2011 IBM Corporation
Smarter Commerce can help transform every phase of the commerce cycle
3
SourceDrives intelligent,
adaptive and
optimized
extended supply
chains based on
consumer
demand
MarketCreates
personalized and
relevant offers
with unified
cross-channel
marketing
ServiceDelivers flawless consumer service
across all channels and stretches into
an ongoing dialogue and
relationship with the consumer
Sell Enables consumers
and partners to
buy what they want,
when and where
they want it
Sourcing, controlling
and procurement of
goods and services
Targeted and
personalized
marketing across all
consumer interactions
Selling and fulfillment
of products and
services across
all channels
Servicing
consumer needs
across all
interaction
channels
MarketSource
Service Sell
consumer
Insight Strategy
Engagement
© 2011 IBM Corporation4
IBM’s integrated approach for Consumer Products Smarter Commerce
Source Market Sell Service
“Monitor and adjust to changing
market, competitive, and internal
conditions by using enterprise
dashboards that rely on integrated
data management excellence”
“Collaborate with channel
partners to align execution
and priorities focused on the
right product at the right
time to the consumer..”
CORE BUSINESS PROCESSES
VALUE CHAIN STRATEGY : Acting on InsightMarket and consumer mgmtAligning sales, marketing and operations
to engage with consumers and consumers
Innovation and business valueInnovating and aligning business models to
drive value to the consumer
Operating and organization modelsDesigning supply and organization models to
deliver value to the consumer
Workload Optimized Systems(Z-Enterprise, Power, X, Storage and Systems Software)
• Supply Chain Visibility
• Network Optimization
• Inventory Optimization
• Demand side analytics
• Predictive Analytics
• Segmentation
• Multi-channel Campaign
Mgmt
• Marketing Resource Mgmt
• Consumer Lifecycle analytics
• B2B / B2C Multi-channel
Commerce
• TFM TPO
• Fulfillment & Supply
Optimization ( OSA)
• Mobile Commerce
• Contact Centre
Optimization
Smarter Supply Networks and Manufacturing
Smarter Customer
Collaboration
“Accommodate new data feeds (like
demand signals from shelf), and
utilization of advanced predictive /
optimization based analytics/visibility
to build "smarter" supply chains.”
“Enable Consumer
Products companies to
build and maintain a
relationship with the
consumer”
1:1 Consumer
• Data consolidation
• Data cleansing
• Complex DB management
• Demand Signal RepositoryIntegration
Enterprise Information
Management
© 2011 IBM Corporation
Together we will deliver Smarter Commerce
5
� We collaborate with you to enhance, extend, and re-define
your approach to deliver value through
• Acting on Consumer Insight
• Evolving your Consumer Value Strategy
• Optimizing Customer & Partner Engagement
� We help you address most pressing concerns now and
prepare for future growth
� We can help you leverage and extend your existing
technology and investments
…increasing the value you generate for your consumers,
partners and shareholders in a rapidly changing digital
world.
Over 2,000 of the
world’s top brands
rely on IBM to improve
their business insight
and execution
®
© 2011 IBM Corporation7
The Planet is Getting Smarter…
Smarter Planet
� instrumented
� interconnected
� intelligent
� people
� companies, institutions, industries
� man-made systems
� nature’s systems
®
© 2011 IBM Corporation8
The Need for Progress is Clear
� Channel defection
� 92% reduction in consumer spend
� Year-to-Year same stores sales
are down
� Low conversion rates
®
© 2011 IBM Corporation9
The Opportunity for Progress is Clear
Internet is now over 1 billion people strong
By 2011, 1/3 of the world’s
population will be on the Web
There are currently nearly 4 billion
mobile subscribers WW
77% of online shoppers use peer reviews & ratings when
making purchases
More than half of U.S. households
regularly shop online
By 2010, 30 billion RFID tags will be embedded
into our daily life
43% of consumers say they would use mobile phones to make purchases
®
© 2011 IBM Corporation10
Delivering Smarter Commerce
Customer-centric Experience
Cross Channel Optimization
Foundational Leadership
IBM WebSphere Commerce
®
© 2011 IBM Corporation11
Delivering Smarter Commerce
Cross Channel Optimization
Foundational Leadership
IBM WebSphere Commerce
Customer-centric Experience
®
© 2011 IBM Corporation12
Seamless Experience :�Synchronized and consistent
service regardless of
channel
Increased Convenience:� Ordering� Returns� Refunds
Customers are Changing
Service & Support :�Call center�Shopping
�Customer service
®
© 2011 IBM Corporation13
Customer experiences evolving across phases of shopping experience
By focusing on the customer’s view, sellers can bui ld a more compelling and satisfying shopping experience
Rich Experiences Encourage Customers to Become ‘Advocates’
Order ServeMarket Sell
®
© 2011 IBM Corporation14
Selling to Today’s Demanding Customers
• Accommodate different buying styles, motivations, and criteria
• Target information and recommendations at key decision points throughout the purchase process
• Build consistent brand experience beyond online
®
© 2011 IBM Corporation15
According to a study of 20,000 shoppers, experience is one of the top three attributes that drives satisfaction and advocacy
IBM Institute for Business Value
Innovate Your Customer ExperienceCustomer Experience has Become a Key Differentiator
Search andShopping Engine
Widgets
Extended
Community
Partner Relationship Management
Direct
Brand Experience
MobileContact Center
KiosksWeb
POS
EmailIBMOwns
IBMIntegrates
®
© 2011 IBM Corporation16
Extend the Experience� Extend the experience beyond retailers website
� Enhanced RSS feeds for affiliate marketing
Search and Comparison
Shopping Engine Optimization
Affiliate Sites Aggregators Social Sites Widgets Viral Marketing
Brand 2 Brand 3Brand 1 Brand 4
®
© 2011 IBM Corporation17
• A recent consumer survey ranked consumer content as the #1 aid to a buying decision, cited by 91% of respondents
• 89% of shoppers trust “Other Consumers” somewhat or completely
• 77% of online shoppers use ratings and reviews when purchasing
Today’s Consumers Actively Participate
®
© 2011 IBM Corporation18
• Features offered as part of an integrated shopping experience� Communities � Ratings & Reviews� Blogs� Profiles � Forums
• Incorporate social interaction, community, and consumer driven content into the shopping experience
Embrace Active Participation
®
© 2011 IBM Corporation19
Reach Your Audience� Create multi-dimensional segmentation
and personalization
� Targeted content and offers
� Deliver dynamic offers through Collaborative filtering technologies
� Extend your reach with by leveragingaffiliate marketing relationships with other companies
� Entice customers to visit with advanced offers and promotional tools
®
© 2011 IBM Corporation20
Customer-centric Experience
Foundational Leadership
Delivering Smarter CommerceIBM WebSphere Commerce
Cross Channel Optimization
®
© 2011 IBM Corporation21
Today‘s Shoppers Seamlessly Cross ChannelsDuring a Single Buying Process
Order ServeMarket Sell
Demand Generation Browse Research Configure
& Select Transact Service & Support
®
© 2011 IBM Corporation22
• The majority of online consumers are cross-channel shoppers� 53 % used the Internet to
compare product features and prices
� 25 % did so from a mobile device while in a store
� 1 in 10 sent text messages to friends and family during shopping trips
• Connectivity will be a part of life� Consumers will expect to connect
to anyone, at any time, about anything, from anywhere
• Superior operational model, especially in challenging economic times
Sources: IBM “2007 Was the Year of the ‘Omni Consumer’”; 2008 IBM Retail Multi-channel Study; Chart 1: n=2900 all U.S. respondents
Percentage of respondents who switched retailers by during cross channel shopping
experiences
46% of respondents switched retailers when they moved between channels
Cross-Channel Retailing is More Important than Ever
31%
38% 39%
49% 51% 52%56%
0%
30%
60%
App/A
cc/F
ootw
ear
Groce
ries
Home d
ecor
Home Im
p/DIY
/App
lianc
es
Consu
mer
elec
tronic
sSpo
rting
Goods
Pharm
a/OTC/H
BA
% o
f Res
pons
es
®
© 2011 IBM Corporation23
Online
Cross-Channel Optimization
Mobile KioskPhonePoint of SaleIn Store
Integrated Cross Channel
®
© 2011 IBM Corporation24
Customer-centric Experience
Cross Channel Optimization
Delivering Smarter Commerce
IBM WebSphere Commerce
Foundational Leadership
®
© 2011 IBM Corporation25
Foundational Leadership
• Expand into new markets and channels
• Innovate your business model with support for the wide st range of business models and processes
• Deliver new business functionality with SOA Multi-Ch annel Composite Applications
• Improve business flexibility by externalizing embedde d business processes
®
© 2011 IBM Corporation26
Global Expansion
• Empower your teams without losing brand integrity & consistency
• Control costs of maintaining multiple presences across the globe
� Support the rules, regulations, policies & procedur es where you do business
� Expand cost-effectively into international markets
� Conduct business in the appropriate languages, curr encies & buying behaviors
®
© 2011 IBM Corporation27
• Leverage Business User Tooling for Marketing, Promotions, Catalog Management and Merchandising
• Create, Manage and Deploy Personalized Marketing and Promotions Campaigns
Powerful Business User Tooling
®
© 2011 IBM Corporation28
• Meet the rigorous performance, scalability, and flexibility requirements
• Increase stickiness and eliminate channel defection with cross channel integrated shopping
• Open integration to support complex cross-channel scenarios and complete life of an order
Smarter Operations
®
© 2011 IBM Corporation29
Customer-centric Experience
Cross Channel Optimization
Innovate & Adapt
Delivering Smarter CommerceIBM WebSphere Commerce
®
© 2011 IBM Corporation30
Delivering Smarter CommerceEnables companies to deliver a consistent, customer -centric experiences
across multiple channels and touch points
Contracts & Relationships
Foundation
BusinessUser Tooling
Search
Web
Widgets
POS
Kiosk
Extended Sites
Order Management
Globalization
Community
Catalog & Contents
Merchandising
DeveloperTooling
Precision Marketing
Personalization
Assisted Sites
Partner RelationshipManagement
Mobile
Contact Center
®
© 2011 IBM Corporation31
CapabilitiesInteraction Management
Configurable Business Processes
Infrastructure
Contracts & Relationships� Roles & Member Mgt � Business Policies
� Contracts & Entitlements
Globalization� Language Support
� Regulations � Multi-national Sites
Personalization� Segmentation � Promotions � Targeting
Catalog & Content� Content Aggregation
� e-Spots� Sales Catalogs
� Product Info Mgmt
Precision Marketing� Promotions, Discounts,
Coupons� A/B Testing
� Affiliate Marketing� E-mail campaigns
Merchandising� Search\& Guided Search� Up-sell, cross-sell, bundles
� Awards & Points� Gift Center � Auctions
Assisted Interactions� Sales Center
� RFQ & Price Negotiation� Collaboration
Order Management� Order Capture
� Order & Inv. Processing� Approval Workflow
� Cross-Channel Order Mgmt� Flexible Pricing
� Payments
Extended Sites� Multiple Sites
Business User Tooling� Management Center
� Workflow & Workspaces
Developer ToolingFoundation� WAS v7� DB2� Tivoli
� Rational� Lotus
®
© 2011 IBM Corporation
Why IBM WebSphere Commerce
WebSphere Commerce Presentation Videos
• IBM WebSphere Commerce - v7 Demo
• IBM WebSphere Commerce - Marketing
• IBM WebSphere Commerce - Social Commerce and Remote Widgets
• IBM WebSphere Commerce - Extended Sites
• IBM WebSphere Commerce - Merchandising
• IBM WebSphere Commerce - Promotions
• IBM WebSphere Commerce - eSpots and Precision Market ing
®
© 2011 IBM Corporation
Vision: Integrated Marketing and Selling Solution for every touch point
Brand and Customer Experience
Web Contact Center
B2B/ PRM
POS
Remote Brand
Experience
Mobile
Kiosks in-Store
Ad Serving & Targeting
SEOSEM
Social & Active
Participation
Digital Direct Marketing
Extended Digital Marketing
Direct Marketing
Mass Marketing
TV Radio Print Retail
Direct Mail Coupons Receipts Loyalty
Enterprise Campaign
s
Enterprise Campaign
s
Enterprise Campaign
s
Enterprise Campaign
s
Personalized Offers
Personalized Offers
Personalized Offers
Commerce: Marketing and Selling
� Knows shopping context to optimize Commerce specific offers but does not
have 360°°°° view of customer
� Controls merchandising associations, bundles, and pricing promotions
� Offer arbitration between commerce and enterprise campaigns to be handled real
time through Unica Interact
� Commerce session context and triggering conditions to be handed off between enterprise and commerce channels
� Real-time exchange of customer info and microsegments
Enterprise Marketing
� Has end to end context and real-time 360°°°° view of customer
� Algorithmic offer arbitration to ensure that the most effective & profitable offers are
delivered
� Consistent, orchestrated messaging and brand experience
� Visibility and learning across all channels
Integration Strategy
Data
POS
Kiosk
Web
B2B sitesTe le , mobile
Customer procurement / sys tems
Fulfillment
Suppliers
Retailers
D is tributors
Rese llers / Dea lersLegacy sys tems
Back-end
B2B / Partners
Offline M
arketingO
nline & D
igital Marketing
34
®
© 2011 IBM Corporation
Key Recent Capability Deliveries: WC V7 Feature Pack 4
35
� Social CommerceOut-of-the-box support in the starter stores for Facebook “Like” and “Send” , plus an “Activity Feed” . Marketing Managers can plan responses to shoppers “Liking” a particular product such as adding them to a particular customer segment.
� Location-Based ServicesIn the new/updated mobile stores, shoppers can “check-in” via GPS when they arrive at a physical store and be presented with location-specific advertising such a s ane-flyer . Marketing Managers can plan responses to the mobile “check-in” such as issuing a coupon or sendin g an SMS message.
� Mobile CommerceA newly updated smartphone browser store plus a new tablet browser store, android native application, and android hybrid application demonstrate best-practic e cross-channel shopping. The Android native applicat ion connects to WebSphere Commerce via a new set of REST APIs .
GA11/11
Available Now!
®
© 2011 IBM Corporation
Deliver Rich Customer Engagements across every touch point
Partners and Affiliates
Content Aggregators
Social Networks
Shopping experience, Marketing campaigns and
promotions
Web and Mobile POS
Kiosk
Call Center
Mobile
Web
Presence
Digital Coupons
Store Associates
Widgets for products and promotions
IBM “Customer Interaction Platform”
Mobile Web BrowsersMobile Native ApplicationsMobile Interaction
®
© 2011 IBM Corporation
Triggers
Mobile
Order History
Personalization
Social Commerce
Browsing
Search
Point of Sale
Mobile
Actions
KioskEmail l
Promotions
Cross/Up Sell
Precision Marketing
Engine
Evolving shopping behaviors require new marketing approa ches
� Multi Channel Precision marketing
� Behavioral segmentation and personas
� Dynamic recommendations� Multi Variant Testing� Integrated with social
commerce� Analytics driven and
integrated with Cross-Channel Campaign management
Smarter Interactions with Cross Channel Precision Marketing
Customer Writes 5 ReviewsCustomer Writes 5 Reviews
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Add to Active Participant SegmentAdd to Active Participant Segment
IBM Management Center
for WebSphere Commerce
Coremetrics
for WebSphere Commerce
Integrated Analytics optimizes marketing execution
®
© 2011 IBM Corporation
Marketing execution with Precision Marketing
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$10 off next order
Add to Active Participant SegmentAdd to Active Participant Segment
• Web Activity– Personalize what is displayed on your digital
sites: web, mobile, social.– Synchronized with Enterprise Marketing:
Campaigns, segments, eligibility
• Marketing Dialog– Build deep relationships and support rich
customer dialogs based on customer behavior over time.
• Personalized, Dynamic Recommendations– Deliver highly relevant product
recommendations based on current and historical shopping interests, wisdom of the crowd, and business rules
Display Intelligent Offer RecommendationDisplay Intelligent Offer Recommendation
®
© 2011 IBM Corporation
Optimized Mobile applications and capabilities
1D & 2D Barcodes
Camera
Address BookContacts
Storage
Mobile Carrier Contract
Bluetooth Wi-Fi, NFCGPS / Cell Tower
Triangulation Messages
Calendar
Location Services. Store locator. Promotion
. Product finder
Product information
In-store checkout
Billing address,Email wishlist,
Social Commerce
Store Events
Offline storagefor shopping lists
Mobile Payment
Order ConfirmationMarketing/Promotion
Product InformationMarketing
ProductSearch
Voice
Video Player
Mobile Web Browsers
Mobile Native Applications
®
© 2011 IBM Corporation40 Feature pack overview
Mobile store for smart phones and tablets
Location based
services
Action buttons
Swipe eSpotSwipe eSpot
Search
Frequently used f
Frequently used features
Multiple wish lists
Cross channel inventor
y
Two new mobile stores leveraging distinctive smart phone and tablet features and experiences
•Touch screen•Gestures
•Geo-location
Action buttonsAction buttons
Location based
services
®
© 2011 IBM Corporation41 Feature pack overview
Location-based services
• Check-in– Shoppers indicate their location and receive
location-specific information or rewards– Smart phone web store, hybrid and native
applications
• eFlyer– Display region or location-specific advertising– Smart phone web and tablet stores, hybrid
application
Location Type
Example: Summer-Toronto-
Flyer.jpg
®
© 2011 IBM Corporation
Partners and Affiliates
Content and Aggregators
Social Networks
Direct Touch Points
Centrally manage and extend the brand experience to so cial networks, partners, and content aggregators
®
© 2011 IBM Corporation
WebSphere Commerce V7 Next Feature Pack Highlights
� Page Composer FoundationFoundational support to allow business users to cre ate and edit store HTML page layout without requiring IT help
� Portfolio IntegrationProvides tighter integration from WebSphere Commerc e to Sterlingpricing, promotions, inventory and orders to furthe r reduce cost of “side-by-side” implementation
� Management Center Enhancements Advanced promotions (e.g. multiple items), support for partial approval in Workspaces, context-sensitive links to Coremetrics reports
Planned for 2Q12Intention is to deliver the following:
� Faceted Search Management Provides tooling to manage search facets based on c atalog product attributes
IBM Confidential
Notice: This information is intended to outline our general product direction and it should not be relied on i n making a purchasing decision. The information is for informational purposes only and may not be incorporated into any contract. The inf ormation is not a commitment, promise, or legal
obligation to deliver any material, code or functio nality. The development, release, and timing of an y features or functionality described for our products remains at our sole discretion
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