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Name
Title:
Smarter Commerce: Redefining Commerce in the Age of the Empowered Customer
Dulles Krishnan | Director, Smarter Commerce, Growth Markets
Sridhar Hari
|Smarter Commerce Leader, IBM India
Deepak Vinchhi
| Program Director, B2B & Commerce Solutions, IBM Labs
Agenda
2
4
3
1
Smarter Commerce Centre of Excellence
Smarter Commerce @ Work
Smarter Commerce from IBM
Q&A
Customers today are more empowered than ever, and are reshaping businesses
Understand and anticipate customer behavior and needs based on customer insights across all channels
4
Adapt
sourcing and procurement based on customer demand and optimize supplier interactions across extended value chains
Market, sell and
fulfill the right
product and service
at the right price,
time and place
Service
customers flawlessly, predict and drive customer loyalty
Power has shifted to the customer — compressing margins and changing paradigms
In this new era, businesses need to:
Successful companies are staying competitive by transforming their approach to commerce
5*Case studies based on Coremetrics, Sterling Commerce and Unica solutions
95%Amount a major transportation company reduced partner integration time*.
14%Reduction in working capital requirements and 10% reduction in logistics costs by a major Indian confectionery company after supply chain network optimization
376%Amount a US-based national communications service provider boosted ROI by reducing customer churn.
36%Percentage uplift in revenues that a leading Indian bank achieved from customers contacted through marketing campaigns. Significantly improved campaign performance, enhanced cross-sell, retention and service quality
Successful companies are staying competitive by transforming their approach to commerce
6*Case studies based on Coremetrics, Sterling Commerce and Unica solutions
95%Amount a major transportation company reduced partner integration time*.
41%Amount a retail pet company increased sales per unique web visitor. Also increased open and click-through rates to five times the industry average*.
50%Amount a leading provider of teaching, learning and research solutions grew direct-to-consumer commerce revenues year over year*.
376%Amount a US-based national communications service provider boosted ROI by reducing customer churn.
Successful companies are staying competitive by transforming their approach to commerce
7*Case studies based on Coremetrics, Sterling Commerce and Unica solutions
14%Reduction in working capital requirements and 10% reduction inn logistics costs by a major Indian confectionary company after supply chain network optimization
36%Percentage uplift in revenues that a leading Indian bank achieved from customers contacted through marketing campaigns. Significantly improved campaign performance, enhanced cross-sell, retention and service quality
14%Reduction in working capital requirements and 10% reduction inn logistics costs by a major Indian confectionary company after supply chain network optimization
376%Amount a US-based national communications service provider boosted ROI by reducing customer churn.
Drives growth
At IBM we call the path forward: Smarter Commerce
8
Places
the customer at the center
Increases margins
Synchronizes your entire value chain
Maximizes insight Capitalizes on social and mobile
improves collaboration and visibility
Customer
Smarter Commerce can help transform every phase of the commerce cycle
9
IBM’s integrated portfolio for Smarter Commerce
Buy Market Sell Service
Core Business Processes
CORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND SERVICES
Advanced AnalyticsStore 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
Operating and Organization ModelsDesigning operations, supply chain and the
organization model to deliver customer value
Workload Optimized Systems(Z-Enterprise, Power, X, Storage and Systems Software)
focused on agility, integration and automation to drive relevant
business outcomes
•
Supplier Integration & Management
•
Supply Chain Optimization•
Logistics Management•
Payments and Settlements
•
Customer Awareness & Analytics•
Social Media Marketing•
Brand Experience•
Cross-channel Campaign Mgmt•
Digital Marketing Optimization•
Marketing Resource Mgmt
•
Cross-channel Selling•
Distributed Order Management•
Customer Integration & Collaboration
•
Fulfillment•
Store Solutions•
Payments & Settlements
•
Delivery, Service, & Support•
Customer Self-Service•
Reverse Logistics•
Case Management
What is unique
about IBM’s Smarter Commerce?
11
IntegratedComprehensive• Optimizes the complete
commerce lifecycle• Leading software, services
and infrastructure
• Integrated analytics• Integrated focused
industry solutions
Outcome Driven Flexible and Open• Measureable
business outcomes
• Outcomes tailored to business domains
• Flexible deployment• Modular offerings and
flexible consumption
Suppliers
Influencers
PartnersCustomers IBM Smarter Commerce
IBM is the right partner for Smarter Commerce
12
• Leading industry capabilities and offerings
o Analytics, B2B Integration, Decision Optimization, Enterprise Marketing Management, Order Management, Selling and Fulfillment
o Modular approach to address key challenges today and grow with confidence
• Leader in research and development
• $2.5 billion invested since 2010 to create a truly smarter approach to commerce
• New services practice with more than a thousand dedicated experts
• Expertise in over 20 industries to help create a solution customized for your specific needs
• Leader in Smarter Computing -
Over 50,000 hardware and software developers
optimizing systems to manage needs driven by commerce applications
Recognized leadership for E-Commerce, B2B Integration, MFT, Order Management
13
IBM LeaderThe Forrester Wave™: B2C eCommerce Platforms, Q4 10Sterling Commerce: LeaderForrester Wave™: Order Management Hubs, Q3 10Sterling Commerce: LeaderForrester Wave™: B2B Service Providers, Q4 09
Gartner
IBM: LeaderGartner Magic Quadrant: E-Commerce, Q2 10
Sterling Commerce: LeaderGartner Magic Quadrant: Managed File Transfer, Q3 09
Sterling Commerce: LeaderGartner Magic Quadrant: Integration Service Providers, Q4 09
Recognized leadership in enterprise market management
14
Unica: LeaderThe Forrester Wave™: Enterprise Marketing Platforms, Q108
Coremetrics: Leader
The Forrester Wave™: Web Analytics,
Q309
Unica: Leader
The Forrester Wave™: Cross-Channel Campaign Mgmt, Q409
Unica:
The Leader
Gartner Magic Quadrant: Multi-Channel Campaign Mgmt, Q210
Unica:
Leader
Gartner Magic Quadrant: Marketing Resource Mgmt, Q109
Unica:
Visionary
Gartner Magic Quadrant: Enterprise Marketing Mgmt, Q410
Gartner
Agenda
2
4
3
1
Smarter Commerce Centre of Excellence
Smarter Commerce @ Work
Smarter Commerce from IBM
Q&A
IBM’s integrated portfolio for Smarter Commerce
Buy Market Sell Service
Core Business ProcessesCORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND ENABLERS
Advanced AnalyticsStore 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
•
Supplier Integration & Management
•
Supply Chain Optimization•
Logistics Management•
Payments and Settlements
•
Customer Awareness & Analytics
•
Social Media Marketing•
Brand Experience•
Cross-channel Campaign Mgmt•
Digital Marketing Optimization•
Marketing Resource Mgmt
•
Cross-channel Selling•
Distributed Order Management•
Customer Integration & Collaboration
•
Fulfillment•
Store Solutions•
Payments & Settlements
•
Delivery, Service, & Support•
Customer Self-Service•
Reverse Logistics•
Case Management
Operating and Organization Models
Designing operations, supply chain and the organization model to deliver customer value
Workload Optimized Systems(Z-Enterprise, Power, X, Storage and Systems Software)
focused on agility, integration and automation to drive relevant
business outcomes
How the empowered customer is changing how you “Buy”
Increasing price pressure due to pricing knowledge of competitive products
Expecting instant product availability
Expecting quick new/enhanced product introductions
Demanding customizable product configurations
17
Empowered Customers are: It’s changing the way you “buy”
Deliver the highest quality products with lowest costs and on timeEasily share information across
internal systems and connectivity with suppliers
Collaborative environment to capture, evaluate, process and retain supplier and product information Detect and resolve compliance issues
as they happen, and predict before they happenContinually analyze and refine
the “buying process”
Customer
Companies are in a challenging environment...
18
The average number of
trading partners has
increased 300%
over
the last 10
years
$10+ to process a manual
document and $53 to reconcile
manual errors
Competitive pressures of
today’s economy demand more information and
flexibility
70% of supply chain officers
report the lack of visibility has a
significant impact on their
supply chain and 55%
report cost
containment concerns
64% of organizations don’t know or don’t measure
the average cost to manage a
supplier annually
19
...that require new critical success factors
Analysis of supplier
community and spend for efficient
purchasing processes
Seamless and secure
integration of key business
processes with suppliers
Secure, efficient, and consistent
means of accessing and
exchanging information with
suppliers
End-to-end visibility from
order creation to payment and
tracking supply chain events in
real-time
End-to-end performance management and advanced
analytics to drive continuous
improvements with supplier community
What can YOU do?
Develop global sourcing to optimize supplier relationships
Build a supplier portal to streamline processes
Centralize contract lifecycle management
Automate procure to pay processes
Establish vendor managed inventory to boost availability
Analyze supplier performance and refine buying process
20
Some initiatives that can help
21
Leveraging supply chain intelligence to shift inventory & execute regional promotionsOffer regional product promotions and optimize inventory distribution• Sterling Supply Chain Visibility monitors flow of inventory vs. annual norms• ILOG
is used to optimize the logistics network • Network details are deployed into the Sterling Transportation Management System• WebSphere
Commerce leverages this intelligence to issue custom regional promotions
Sterling Supply Chain
VisibilitylLOG
Logistics Network OptimizationSterling Transportation Management
Regional promotion to sell Denver inventory faster
Trigger an inventory movement of snow blowers from Denver to Boston
WebSphere
Commerce Precision Marketing
Capture results for future supply and inventory
Solution Scenario
Meanwhile, a cold spell in Boston is causing back orders due to lack of inventory
Warm winter in Denver results in excess snow blower inventory…
Challenge
Solution
Results
22
Needed to find a new inventory replenishment and vendor management application to replace their internally supported solution that was being removed from the market.
Supplier Integration and Management• Supplier Collaboration
• IBM Continuous Replenishment Service
Manufactures and markets packaged retail food products under more than 70 brands with more than $1 billion annual sales. Kraft employs about 109,000 people in more than 150 countries.
• Improves retailer relationships and collaboration• Increases customer service levels and responsiveness• Faster inventory turns and lead times• Reduces inventory errors • Optimizes transportation logistics and costs• Improves promotion planning and execution
Customer Profile
Kraft Foods facilitates better collaboration among large number of vendors and retail trading partners
How the empowered customer is changing how you “Market”
Increasingly using new technologies to interact with companies
Vocal is saying what they feel about products and services
Emerging social and mobile channels
Internet has changed the way consumers want to interact with brands
23
Empowered Customers are: It’s changing the way you “market”
Critical to understand what customers are sayingDetermine best response to engage them with clear targeted messagingEffectively manage communications across all channelsManage huge volume and variety of data from various sources
Customer
In response, leading Chief Marketing Officers are driving key investments in Smarter Commerce
Harness the potential of social analytics for customer-centric marketing
Optimize cross-channel marketing spend in real-time
Establish and cultivate advocate relationships
Recast channel relationships via 360 customer insight
Embrace a fully-realized
Social media marketing strategy
Customer
24
What can YOU do?
Centralize cross-channel decisions to improve targeting
Track online behavior to make informed marketing decisions
Capture data from inbound customer interactions for real-time marketing
Automate to tightly align and integrate marketing sand sales
Apply technology to increase marketing relevancy
25
Some initiatives that can help
Planning, coordinating & executing marketing campaigns to stimulate commerce demandManage marketing across multiple interaction channels• Cross-channel marketing strategy is defined and planned using Unica• Coremetrics
is used to track consumer actions, and make relevant recommendations
• The e-commerce web site and order capture is provided by WebSphere
Commerce
• Customer experience with responsive interaction is guaranteed by
workload optimized
systems
Marketing messages and campaigns are defined and planned using Unica
Campaign
Deliver custom landing pages, mobile and retail store programs with targeted messages and promotions via WebSphere
Commerce Precision Marketing
• Optimize display and search results with Coremetrics
AdTarget
and
Coremetrics
Search• Generate demand with Unica
eMessage
(email creation, delivery, tracking)
Insights from social media , websites , and other sources drive relevant messages
Capture responses and refine
Solution Scenario
26
Increasing Customer Loyalty Through Event Based Marketing
About the CompanyAbout the Company
27
Selected Unica
for enterprise marketing management. Main reasons for selection: ease of use, quick implementation as well as its robust modeling, customer analysis, and right-time interaction management capabilities.
Boosted incremental customer retention by 4%
Reduced acquisition costs by 60% in campaigns
Can now simultaneously access its multiple data systems resulting in a complete view of its customers across channels and products.
Run 2,200 event based campaigns per year, using 400+ different triggers
2 -
5x improvement over regular campaigns
Overachieved pilot objectives by a factor of 25, and reached annual target in 6 months
Challenges & GoalsChallenges & Goals
Leading private sector bank in India growing at 38% CAGR
Nationwide network of 1725 branches & 4232 ATM's in 779 India towns & cities with a customer base touching 19 million
Facing rapid growth, needed an effective way to market products and services by detecting meaningful customer behavior
Customer data resided in multiple systems, making it difficult to run campaigns
Key Goals: Increase share of wallet, acquire profitable customers, and boost customer loyalty, while reducing operating costs and measuring marketing performance across all channels
Unica: The Smart SolutionUnica: The Smart Solution
The empowered customer is changing the way companies “Sell”
Store / Dealership Create Order Check StatusCancel Order
Initiate/Track Return
Schedule DeliveryChange Order PickupResearch
Product
Create Order Check StatusCancel Order
Initiate/Track Return
Schedule Delivery or PickupChange Order
Schedule Store Pickup
Research ProductMobile
Create Order Check StatusCancel Order
Schedule Delivery or PickupChange Order
Schedule Store Pickup
Research ProductWeb
Initiate/Track Return
Call Center Create Order Check StatusCancel Order
Initiate/Track Return
Schedule Delivery or PickupChange Order
Schedule Store Pickup
Research Product
28
How the empowered customer is changing how you “Sell”
Start order process in one channel and continue seamlessly other channels
Enabled by technology share research , opinions and ratings in real-time
Want to configure products and services per their preferences and wishes
Interact across multiple channels and touchpoints
and consumer devices
29
Empowered Customers are: It’s changing the way you “sell”
Provide a platform to engage with customers where they want to buy and make it easier for them to do so.
Extend and strengthen supplier and vendor relationships for better supply chain visibility
Integrate information from social media and other sources to aid customer's decision making process
Customer
What can YOU do?
Provide a common platform for all customer interactions
Implement global inventory visibility to improve order fulfillment commitments
Expand customer's fulfillment and delivery options to improve experience
Enable customer to buy online and pickup/return at a physical location
Automate manual processes to drive down b2b sales costs
30
Some initiatives that can help
31
A unified, cross-channel shopping experience
Take action based on a consistent view of a consumer’s order across multiple channels• Coremetrics
is used to track consumer actions, and make relevant recommendations• The e-commerce web site and order capture is provided by WebSphere
Commerce• Sterling Order Management maintains a consistent view of the consumer’s order• The POS from Retail Store Systems integrates with the entire system to maximize POS sales
Consumer is shown a web ad for a new TV. Ad content selected by Coremetrics.
Consumer completes the purchase using WebSphere
Commerce
Consumer phones the call center or engages online to change the order from delivery to pickup.
Consumer visits the store to pickup the TV, views the order via the IBM RSS POS
Unica
prompts the POS to recommend an offer on new speakers and local installation services …
sold!
Consumer decides to extend the order from a mobile device
Capture responses and refine
Sterling Order Management
Solution Scenario
Challenge
Solution
Results
1-800-flowers.com enables customers to seamlessly interact, shop, and buy multiple brands within the same online experience
•
Increase enterprise share of wallet and overall customer value
•
Seamless and intuitive multi-brand shopping experience (unifying the customer experience)
•
Obtain efficiencies migrating to a common best in class ecommerce platform for stability, time to market & roadmap progression
Needed to replace multiple, diverse, siloede-commerce systems with a unified technology platform supporting call center, web, mobile & social
Implemented WebSphere®
Commerce, Coremetrics, Sterling Call Center, Sterling Order Management, and Sterling Warehouse Management, facilitating individual and cross brand merchandising, marketing, logic, and promotions capabilities. Running on POWER7 systems. Involved GBS and Global Financing.
Customer Profile
World's leading florist and gift shop with gifts for every occasion, including fresh flowers, plants, gift baskets, gourmet foods, confections, candles, balloons and plush stuffed animals.
Blogs
32
How the empowered customer is changing how you “Service”
33
Empowered Customers are: It’s changing the way you “sell”Customer
•Customers are much more likely to jump to a different brand than ever before if they feel they are not getting the proper service
•Providing the right tools to support the multiple ways your customer wants to interact with you is critical:
•According to Gartner, by 2012 consumers will be willing to perform all possible customer service functions themselves.•Social Media is becoming more mainstream and companies need to pay attention to what consumers are saying about their company•Customers get frustrated with irrelevant data when looking for answers
• The ability to provide accurate promised dates based on type of item being sold and service requested
• The ability to empower customers with conversations and information sharing capabilities such as wikis, blogs, forums, communities, ratings, commenting, tagging, and shared bookmarks & files.
• Providing real-time information to call center representatives to improve customer interaction and to optimize cross-sell / up-sell opportunities
• Improve online customer experience by providing access to information 24x7 via a self service website
What can YOU do?
Grant personnel mobile access to information for timely services
Assess performance metrics against desired SLAs
Sell premium delivery services to increase revenue
Provide customers a self-service portal to get information and perform many customer service functions themselves
Make it a practice to offer targeted services at the time of sale
Use data analysis and appropriate metrics to improve customer satisfaction
34
Some initiatives that can help
Addressing Self Service and Support Requirements for Multiple Channels
35
Challenge
Results Customer Profile
#1 specialty retailer in US for consumer electronics, personal computers, appliances, and more -
$20B+ annual revenue
Solution
Multiple legacy systems prevented: Unified cross-channel customer experience and redundant and inaccurate inventory data across channels
i
Single
instance, multi-channel enterprise order managementEnables coordination and fulfillment of complex customer ordersSourcing and allocation of product and services across multiple fulfillment sources
Real-time inventory visibility across internal and external fulfillment partnersHome delivery, vendor special order, in-home installations and other services
Increased Annual Sales & MarginVendor Special order, expanding service business (in-home and in-store services)Increased Customer Loyalty due to ease of fulfillment and capturing the orderReduced retail store order admin costs & call centre expenses
Seamless Customer Experience across multiple Interaction Channels• Web (WebSphere
Commerce & Portal)• Mobile (WebSphere
Commerce Mobile Store)• In Store POS & Kiosks (Retail Store Solutions)• Call center (Sterling Order Management –
Call Center)• Social Media
WebSphere
Commerce & Portal
Retail Store SystemsSterling Order Management –
Call Center
Customer
“Call Center”
“Social Networks”
“Web”
“Mobile”
“Store POS & Kiosks”
Delivering Unparallel Customer Experience via Human, Digital, Mobile & Social Interactions
36
Solution Scenario
Agenda
2
4
3
1
Smarter Commerce Centre of Excellence
Smarter Commerce @ Work
Smarter Commerce from IBM
Q&A
Launching…
Smarter Commerce
Centre of Excellence
Bringing the Software Labs to you…
Objectives of Smarter Commerce CoE
• Help our customers in selecting & deploying the best Smarter Commerce solution
• Provide expert help from product development teams, architects, & domain experts
• Help with solutioning
and proof of concepts
IBM Smarter Commerce CoE
will help you to tap cutting edge expertise from the Lab
• Close to 800 developers & architects
• Working on global product development, implementation, customization & product support
• Working with marquee customers all over the world
• Deep expertise in deployment, technologies, domains and in solving customer problems
Smarter Commerce Centre of Excellence Capabilities
• More than 5000 person years of experience
• ‘Solutioning’
capability and deep knowledge of products across the entire Smarter Commerce portfolio to ensure best possible deployment, scalability, maintainability, performance and security
• Deep domain knowledge in key verticals like Retail, Distribution & Logistics, Banking, Manufacturing
• Knowledge of global best practices and ability to leverage cutting edge expertise from across worldwide –
helps in
leapfrogging to the next level of Commerce expertise
• Performance engineering, sizing & tuning capabilities
Agenda
2
4
3
1
Smarter Commerce Centre of Excellence
Smarter Commerce @ Work
Smarter Commerce from IBM
Q&A