IBM Commerce Overview

and the Power of Cognitive Commerce February 2016

What if…you could create unbreakable bonds with your customers?

© 2016 IBM2

Create moments…moments of serendipity, seemingly by chance.That make the mundane magical.The everyday memorable.

© 2016 IBM3

Imagine if serendipity could happen by design.

Serendipity can happen by design…billions of times each day. © 2016 IBM4

Perfect TimingThe right experience, delivered at just the right moment.

Predictive CapabilityUnderstanding what individuals really want, before they even know it.Cognitive Power

Ability to see patterns and make unlikely connections, beyond human imagination.

Infinite DataAccess to an endless universe of information and possibilities.

© 2016 IBM5

We help our clients engineer moments of serendipity to build loyalty …to create unbreakable bonds.

For marketers…the ability to create personalized, meaningful customer experiences, infused by analytics.

For e-commerce professionals…the ability to perfect all aspects of the customer’s interaction through customer and experience insights.

For supply chain leaders…the ability to orchestrate complex systems, processes and partners, to deliver flawlessly.

© 2016 IBM6

© 2016 IBM7

Through a holistic approach to engagement

We help our clients engage with customers, not at them

© 2016 IBM8

Customer Analytics

Marketing

eCommerce & Merchandising

Digital Experience

IBM Interactive

Customer engagement solutions from IBM help you understand and adapt instantly to what customers are saying and doing – so you can deliver the kinds of experiences and offerings they want before they even know they want them.

And, we help our clients have value chains that are seamless and strong

© 2016 IBM9

B2B Integration

Procurement

Payments

IBM Managed Services

Partner and supplier engagement solutions from IBM help you establish and manage closely linked value chains enabling seamless and secure collaboration, enhanced transparency and new levels of agility for you and your trading partners.

Specifically for these leaders and professionals

© 2016 IBM10

PROCUREMENT LEADER

Chief Procurement Officer

VP Supply Chain

PAYMENTs and TRANSACTIONS LEADERs

VP Payment Services

VP Transaction Services

eCOMMERCE LEADER

VP EcommerceChief Sales OfficerVP Merchandising

CUSTOMER EXPERIENCELEADER

Chief Experience Officer

VP Customer Experience

MARKETING LEADER

Chief Marketing Officer

VP Digital Marketing

SUPPLY CHAIN LEADER

Supply Chain Officer

CIO/CTO

With a focus on design and roles to bring them value

© 2016 IBM11

PROCUREMENT LEADER

Manage suppliers and contracts to

optimize spend

PAYMENTs and TRANSACTIONS LEADERs

Process commercial

and retail transactions with

greater insight

eCOMMERCE LEADER

Deliver differentiated brand

experiences across all channels

CUSTOMER EXPERIENCELEADER

Really know your customers and how

to serve them better

MARKETING LEADER

Engage customers with relevant and

rewarding experiences

SUPPLY CHAIN LEADER

Drive seamless and secure exchange of

data with trading partners

12 © 2016 IBM

Merchandisers

Identify Trends and Take Action

Experience Designers

Deliver Compelling Digital Experiences

Marketers

React with Real Time Personalization

And now with cognitive capabilities, we are focused on these workflows

To enable better and more informed decisions …

© 2016 IBM13

Sales and Merchandisers with insights about performance

When insights come together, so do opportunities.

Marketers to understand and adapt instantly

Supply Chain and IT with thinking built-in the value chain

For marketers

© 2016 IBM14

Real-timepersonalization React with tools that continuously learn from individual interactions to deliver a personalized experience across all channels.

Engage with real time personalization

© 2016 IBM15

Wherever customers and prospects are on their journey

For experience designers

© 2016 IBM16

Deliver Compelling Digital ExperiencesManage portfolios of digital properties that deliver consistent, compelling, content-driven experiences.

Leveraging cognitive capabilities at design time and at runtime to deliver more effective and personalized digital properties

To build and deliver compelling digital experiences

© 2016 IBM17

For merchandisers

© 2016 IBM18

Identify trends and take actionGain insights in real time from a multitude of data sources about what consumers are discussing, what they are buying and why.

To explore data and gain insights

© 2016 IBM19

powered by Watson Analytics

Turn awareness of trends into profitable action

© 2016 IBM20

Driven by the power of Watson

To optimize fulfillment based on demand

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Analyze peak periods and item velocity

Plan depth and breath of peaks

Optimize inventory allocation, fulfillment locations

Streamline inventory movement

© 2016 IBM22

When your business thinks,

you can outthink. To outthink challenges, competitors and limits, you must conceive of new opportunities you couldn’t imagine before.

HomebaseHomebase uses IBM eCommerce solutions to provide highly personalized shopping experiences that are designed to meet the needs of today's consumer.

Customers now shopping online

Increase in online traffic driving double digit sales growth40% 30%

© 2015 IBM23

24 © 2015 IBM

FreshDirectFreshDirect is using IBM Customer Analytics and IBM Marketing solutions to drive campaigns that are personalized with the best offers based on customer insights.

40%Lift in order rates with new customers 10X

Increase in transaction rates from cart abandonment communications

JCC Payment SystemsJCC Payment Systems is using IBM Payments solutions to deliver SEPA transaction processing as a service to creditors and banks across Cyprus.

SEPA 250 K

Transaction processing to creditors and banks – enriching its service offering and driving growth

SEPA Direct Debits processed daily at peak times

© 2015 IBM25

26 © 2015 IBM

Bonnie PlantsBonnie Plants is using IBM B2B Integration solutions to collaborate and engage with partners and suppliers with real-time visibility into inventory, enabling them to anticipate needs of an individual store.

Of their business occurs in 3 monthsfrom March to May

USD realized growth by reducing costs and increasing reliability of their B2B operations10-20M 70%

© 2016 IBM27

The North FaceIBM eCommerce and Expert Personal Shopper from Fluid (IBM Business Partner) helps consumers discover products based on recommendations in a natural language dialog leading to higher conversions, driven by the power of Cognitive Commerce.

Looking ahead … leveraging external forces

28 # WeatherMeansBiz

Store orders are ‘right-sized’ to match forecasted consumption by location

Looking ahead .. hyper personalized offers

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Jack Thomas1 hour ago iOS

Midterms in 2 days. Crunch time #timetostudy

#StudySmart

Studying for exams?10% off for all students after 8 PM

Looking ahead … leveraging personality insights

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Leveraging personality insights

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© 2016 IBM32

Driven by the power of Watson

When commerce gets cognitive,

amazing things happen.

Join the conversationBlog, YouTube, Twitter, LinkedIn and Facebook

Looking ahead to hyper personalized offers

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Lily Smith @lmsmithStudying for SATs #SATSmart

Jack Thomas1 month ago iOS

Midterms in 2 days. Crunch time #timetostudy

Needs

Personality Values

Network

Time

Weather

Trend for students studying = opporutnity

#StudySmart

Deliver ‘situation aware’ personalized offers and experiences

Lily Smith 3 months iOS

Eek! Crunch time for AP Calculus #getsmartfast

Understand individual behaviors, patterns, and sensitivity to external influences

Offers correlated with learning and studying activities

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PersonalityPortrait

Looking ahead leveraging personality insights

These personality types respond to coupons (Orderliness, Self-Discipline, and Cautiousness …)

Needs

Personality

Values

Network

Time

Content determined by intrinsic preferences: “dress for success”

(self-enhancements), “high-quality” (ideals)

“10% off when you bring your friends (social ties)”

When you bring your friends!

10%

OFF

Multi-Dimensional Customer Insight

Looking ahead leveraging external forces such as weather

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Delayed fall means warmer weather trend – consumers will need X longer

Appropriate raw materials are secured and increased manufacturing capacity is scheduled

Store orders are ‘right-sized’ to match forecasted consumption by location

Anticipates surge in warmer seasonal products and services

Ensures accurate inventory

available in impacted

regions

# WeatherMeansBiz

Which products are impacted? Who is likely to buy and where is the demand predicted?