© Copyright IBM Corporation 2009
A Powerful E-Commerce SolutionJob Lam, IBM
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
Delivering Smarter Commerce
© 2009 IBM Corporation
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!
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 2009 IBM Corporation
� 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
Delivering Smarter Commerce
© 2009 IBM Corporation
These customers and segments will continue to
evolve… in 2015…
Millennials: 15 - 35
Boomers: 51 - 69
Gen X: 36 - 50
Traditionals: 70+
Delivering Smarter Commerce
© 2009 IBM Corporation
The changing face of
technology
New Touch points
New Store Formats
New Interaction Models
Innovation
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 2009 IBM Corporation
Search Engine Optimization and Landing Page Optimizat ion
Delivering Smarter Commerce
© 2009 IBM Corporation
Cross Channel Dialog: Register and Order
SMS Order Confirmation
Thank you for your purchase. Your order
# is 13721
Places Order
Customer Registers
Delivering Smarter Commerce
© 2009 IBM Corporation
Cross Channel Dialog: Register No Action
Email Offer
Thank you for your registration. We’re running a special
on ____
Customer Registers
Wait one week
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 2009 IBM Corporation
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
Delivering Smarter Commerce
© 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
Delivering Smarter Commerce
© 2009 IBM Corporation
Some Customer ReferencesRetail Electronics and High Tech
AutomotiveIndustrial and Other B2B
Education
Small Business
Government
Delivering Smarter Commerce
© 2009 IBM Corporation
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!