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© 2011 IBM Corporation Smarter Commerce Websphere Commerce Strategy

Gregor von Lieven Business Partner Day - Websphere ... · PDF file©2011 IBM Corporation Smarter Commerce can help transform every phase of the commerce cycle 3 Source Drives intelligent,

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© 2011 IBM Corporation

Smarter CommerceWebsphere Commerce Strategy

© 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 Corporation

Websphere CommerceWebshop Strategy

Gregor von Lieven

®

© 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

eMail

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

Websphere Commerce

Vision

®

© 2011 IBM Corporation

Vision: Integrated Marketing and Selling Solution for every touch point

Brand and Customer Experience

Web Contact Center

Email

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

Change Banner $10 Off Next Order

Send $10 Off SMS Coupon

Thank you for your review. Receive

$10 off next order

Change Banner $10 Off Next Order

Send $10 Off SMS Coupon

Thank you for your review. Receive

$10 off next order

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

Customer Writes 5 ReviewsCustomer Writes 5 Reviews

Change Banner $10 Off Next Order

Send $10 Off SMS Coupon

Thank you for your review. Receive

$10 off next order

Change Banner $10 Off Next Order

Send $10 Off SMS Coupon

Thank you for your review. Receive

$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

6

6

®

© 2011 IBM Corporation