a powerful e-commerce solution time, value, and information source: ibm institute for business value...

© Copyright IBM Corporation 2009

A Powerful E-Commerce SolutionJob Lam, IBM

[email protected]

Dec 18 2009

Delivering Smarter Commerce

© 2009 IBM Corporation

Agenda� B2C Market Size in China

� Quick Recap on Commerce Solutions

� Key Trends shaping the market

� Customer Interaction Platform Strategy

� New Platform Highlights� Power next generation interactions with Precision

Marketing� Deliver rich customer centric experiences with

new Web 2.0 Stores and integrated Social Commerce

� Optimize cross channel interactions with Cross Channel Processes and Mobile Commerce

Data

POS

Kiosk

Web

B2B sitesTele, mobile

Customer procurement / systems

Fulfillment

Suppliers

Retailers

Distributors

Resellers / DealersLegacy systems

Back-end

B2B / Partners



China 2008 Q3 - 2009 Q3 B2C Market

• YTY Growth is over 90% in the past five quarters (Yellow line)

• QTQ Growth is above 16-19% (Blue Line)

• B2C transactions reached RMB 65.85B in Q3 2009

• Estimated B2C will be RMB230B in 2009!



Quick Recap on eCommerce Solutions

Merchandising

PaymentsCustomer Support

Enterprise Data Sources

Catalog

Data Warehouse

Business Manager

Customers

Order Management

Approval Capture Settlement

Live Chat Account Mgmt Order Mgmt

Analytics Reporting

Order Consolidation Fulfillment Shipping / Back Order / ReturnsInventory

Business Rules Flexible Pricing Customer Segmentation Campaigns/PromotionsCatalog MgmtTools

Discounts & Coupons Cross/Up-Sell Auctions PersonalizedSearch & Assisted Sellinge-mail campaign

Order Confirmation / Status

Assisted Selling Search Enhanced Buying Packages / Bundles Gift / Wish Lists

Pre & Post Sale Support

Integration



Implementing a eCommerce Project

IT & Marketing Team• Set up general setting for the Online store, for example logistics, payments solutions etc

Marketing Manager• Create and manage activities that support your site's marketing campaigns. • Deliver targeted marketing messages to customers on store pages, or using e-mail and text

messages.

Marketing Manager• Create and manage promotions that support your site's marketing campaigns.

Category Manager and Product Manager• Manage the catalog hierarchy • Manage sales catalogs • Manage product catalogs.

Customer Service Representative (CSR)• Customer service tasks • Order management tasks • Accomplish customer-service tasks in an inbound call-center



� More knowledgeable about products, costs, and price

� More savvy about technology and products/services

� Less loyal to any given retail entity

� Self-sufficient and demands information to make smart decisions

� Active participants openly sharing and seeking consumer driven content

� Proud of being an individual and expects personalization and high customer service in every interaction

� Driven by three new currencies: time, value, and information

Source: IBM Institute for Business Value “Retailing in a World of Extremes”

Today’s demanding customers

Today's change — and even more so, tomorrow's change s — will come from newly empowered consumers, who, by harnessing the tools that Web 2. 0 technology affords them, can wield power and influence over retailers in a way never witness ed before. - Gartner 2008



These customers and segments will continue to

evolve… in 2015…

Millennials: 15 - 35

Boomers: 51 - 69

Gen X: 36 - 50

Traditionals: 70+



The changing face of

technology

New Touch points

New Store Formats

New Interaction Models

Innovation



WebSphere Commerce “Customer Interaction Platform” e nables companies to deliver a consistent, customer-centric experiences across multiple channels & touch points

Tele, mobile

Customer procurement / systems

Suppliers

Data

POS

Kiosk

Web

B2B sitesTele, mobile

Fulfillment

Suppliers

Retailers

Distributors

Resellers / DealersLegacy systems

Back-end

B2B / Partners



Cross Channel Precision Marketing



Power Next Gen Interactions with Precision Marketing

� Management Center Enhancements�Empower marketers to create, manage and deploy personalized marketing campaigns across direct and extended brand touch points

� Cross-Channel Precision Marketing Engine�Web, Mobile, Cross Channel�Social Participation�Integrated with ecosystem�B2B “behavioral marketing”�Behavioral segmentation and personas

Triggers

Mobile

Order History

Personalization

Social Commerce

Browsing

Search

Point of Sale

Mobile

Actions

KioskEmail l

Promotions

Cross/Up Sell

Cross-ChannelPrecision Marketing

Engine



Search Engine Optimization and Landing Page Optimizat ion



Cross Channel Dialog: Register and Order

SMS Order Confirmation

Thank you for your purchase. Your order

# is 13721

Places Order

Customer Registers



Cross Channel Dialog: Register No Action

Email Offer

Thank you for your registration. We’re running a special

on ____

Customer Registers

Wait one week



Social Commerce: Reward Active Participation

Customer Writes 5 Reviews

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 Segment



Marketing Planning and Execution



Quick Recap on eCommerce Solutions

Merchandising

PaymentsCustomer Support

Enterprise Data Sources

Catalog

Data Warehouse

Business Manager

Customers

Order Management

Approval Capture Settlement

Live Chat Account Mgmt Order Mgmt

Analytics Reporting

Order Consolidation Fulfillment Shipping / Back Order / ReturnsInventory

Business Rules Flexible Pricing Customer Segmentation Campaigns/PromotionsCatalog MgmtTools

Discounts & Coupons Cross/Up-Sell Auctions PersonalizedSearch & Assisted Sellinge-mail campaign

Order Confirmation / Status

Assisted Selling Search Enhanced Buying Packages / Bundles Gift / Wish Lists

Pre & Post Sale Support

Integration



Buy-On-Mobile-Pickup-In-Store



WebSphere Commerce Solution

Built on a scalable platform designed for cross-cha nnel business integration

Robust, out-of-box business processes enable best practices

Interactions tailored for each customer

Role-based tools for

business users, administrators

and developers

Any or all commerce initiatives built on a single, unified platform

WebSphere Commerce

AnalyticsGlobalizationRelationships &

Agreements

Business Context Engine

Configurable Business ProcessesBusiness Processes

Order Management

Assisted InteractionsSellingMarketingCatalog &

Content

IBM Middleware PlatformDeveloper

Tools

Admin

Business


© 2009 IBM Corporation20

A typical China brand Solution System Structure

Taobao B2C Store Taobao C2C Store Official Website

Taobao Mall API Portal

Commercial Global’s Public Interface Platform

Data Transformation

Order Checking Module

Call Center System

Member Data

Center

Commercial Global’s ERP System

Purchase Module

Statistical Analysis

Warehousing & Logistics

Brand Management

Account Settlement

Supplier Management

Store Management System

Product Management System

Member Information

Promotion Information

Display Information

Product, Price, and Warehouse Information

New Orders/Order Status

Order Status

Order Cancellation,

Customer Service

Order Cancellation

Phone Orders

Order Status (Cancellation)

Orders

Websphere Commerce

Multiple Brand Master Catalog

Brand 1 Store Brand 3 StoreBrand 2 Store Brand 4 Store

Price & Marketing Program

Product information push

Inventory Synchronism Order Capture

Official Web Sites for International or China Market

Call Center or TenCent

QQ CRM

Community TenCent QQ



Some Customer ReferencesRetail Electronics and High Tech

AutomotiveIndustrial and Other B2B

Education

Small Business

Government



Commerce B2B customers



WebSphere Commerce Dominates the top 100 Retailers!

IBM WebSphere Commerce is used by more of the top 1 00 online retailers in the US than any other e-commerce solut ion, according to Internet Retailer’s Top 500 Guide, which ranks the 500 largest online retailers, based on 2009 online revenues. Other dat a points:

� WebSphere Commerce powers retailers’ sites in 12 of the 14 retail categories assessed.

� Eight of the retail sites on the list who experienc ed the biggest growth in dollars are IBM customers.

� Over $9 billion of the top 500 online retailers' re venue comes through WebSphere Commerce powered sites (that's not counti ng ibm.com!).

� According Top 500 Guide data, that is more revenue than was transacted by the next three vendor’s solutions – co mbined!



Some WebSphere Commerce Customers

a powerful e-commerce solution time, value, and information source: ibm institute for business value...

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