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IBM Software Group

© 2004 IBM Corporation

WebSphere Commerce – Express V5.6Fast, affordable e-commerce solutions for mid-sized companies

Overview for <company name>

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IBM Software Group

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E-Commerce in 2004: Positive Outlook

“It wasn't all hype. For companies as well

as consumers, e-commerce is hotter than ever” Business

Week, 2003

“Networked business-to-business transactions now stand at $2.4 trillion” -

Forrester Research

“…decision makers cited eCommerce investments as having the most upside – 35% of firms will spend more next year on initiatives for

transaction with buyers and suppliers online.” Forrester, 2003

“B2B and B2C e-commerce via the Internet continues to grow, with e-commerce returning as a business priority in 2004.” Giga, 2003

“e-commerce represents a growing investment within Global 2000 enterprises as they begin to move toward

next-gen sell-side environments” Meta Group, 2003

The e-commerce time-out has ended. Aberdeen, 2003

B2B Projects to Surge by More Than 40%,

B2C Projects Increase by 20%, Evans Data Corp,

2004

“34% of manufacturers say that they will increase their eCommerce investment in 2004…making it the highest increase among all categories” Forrester, 2003

Surveys, analyst reports indicate a major resurgence in e-commerce

¼ of mid-market firms are selling online and 30% more plan to do so in the next 12

months – AMI Partners, 2003

IBM Software Group

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IBM WebSphere Commerce:Powering the Value Chain

IBM – leading the industry in e-commerce 7 years proven experience and thousands of customers

Leader year after year in Gartner e-commerce Magic Quadrant

Built on market-leading WebSphere middleware platform

Industry-leading features and ability to support variety of solutions and verticals

WebSphere Commerce solutions allow you to deploy a wide variety of value WebSphere Commerce solutions allow you to deploy a wide variety of value chain initiatives -- from a simple online sales channel, to e-procurement, to a chain initiatives -- from a simple online sales channel, to e-procurement, to a completely integrated multi-tier demand chain -- all on a single platform.completely integrated multi-tier demand chain -- all on a single platform.

Interact with complete context

Automate best processes

Deploy & Adapt rapidly & flexibly

Integrate across & beyond the enterprise

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Just a Few of Our Customers…

IBM Software Group

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IBM WebSphere Commerce: Proud of Our Many Customers

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WebSphere Commerce Solution Architecture

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

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

Built on a scalable platform designed for business integrationBuilt on a scalable platform designed for business integration

Individualized interactions based on unique business relationships

Individualized interactions based on unique business relationships

Self-service business

tools to configure

processes

Self-service business

tools to configure

processes

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

Configurable Business Processes

Business

Administrator

Developer

Business

Administrator

Developer

BUSINESS CONTEXT ENGINE

CONFIGURABLE BUSINESS PROCESSES

IBM BUSINESS INTEGRATION

InteractIntegrate

Relationships & Agreements Personalization Globalization Analytics

Marketing Merchandising & Selling

Catalog &Content Trading Order

ManagementDigitalMedia

TOOLS

Model Transform Manage

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IBM Software Group

Business Context Engine: Contextual Experience Management

Contextual Experience Contextual Experience ManagementManagement

Understanding the customer & where they are in the sales lifecycle

A consistent “total experience” across points of contact

Use everything you know to deliver the right content, capabilities, offers

• Locale

• Profile & preferences

• Behavior & history

• Organizational attributes

• Role & associated workflow

• Policies, agreements, contracts

GlobalizationPersonalizationRoles, Relationships & Agreements

Analytics

Informs (& learns from)…

Informs (& learns from)…

Multi-channel interactions with customers

Targeted offers, promotions, recommendations

Rich content delivery

Interactions & transactions with business customers, suppliers, partners

Multi-channel interactions with customers

Targeted offers, promotions, recommendations

Rich content delivery

Interactions & transactions with business customers, suppliers, partners

For…For…

Tools Business Context Engine

Configurable Business Processes

IBM Middleware Infrastructure

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IBM Software Group

The WebSphere Commerce FamilyPowering the Value Chain for Selling, Buying and Channel Management

Commerce-ExpressAn easily installed, affordable, yet complete solution enabling growing mid-market companies to do business on the Web.

Professional EditionDeliver a consistent, personalized user experience across multiple channels to maximize customer loyalty and walletshare.

Business EditionOptimize both direct and indirect channels by capturing and deploying best practices across the extended demand chain.

Improved Scalability

Advanced Analytics, Data Mining

Collaborative Filtering

Advanced Product Search Aids

Digital Media EnablerSupporting on-line mgmt., sale

and distribution of digital assets.Channel Management

Contract and Policy Management

Reseller Hosting

Clustering Support

Live Help Collaboration

Basic B2C or B2B Storefront, Shopping ExperienceTargeted Marketing

Business AnalyticsOrder Management

Adds:

Buy-Side Support

Supplier Enablement

Advanced Roles and Relationships

Multi-round RFQ

Adds:

Collaborative Workspaces

Entry e-CommerceAdvanced Multichannel

Extended Demand Chain

Merchandising Personalization

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IBM Software Group

WebSphere Commerce – Express V5.6

Quickly and easily installed and deployed Built to install and configure fast and easily SMB-friendly Starter Stores, Catalog Import Utility, “lite” development tools speed store creation

Low total cost of ownership for a complete end-to-end e-commerce solution Packaged offering meets production, staging and

development needs at 34% lower price than MSCS Streamlined design helps keep cost of services low

Easy to use and administer Wizard-based tools for marketing/merchandising Intuitive product management tools to manage catalog

Supports open standards, other platforms Customers not locked into proprietary platform choice Java-based, 100% J2EE-compliant, and supports

Linux, i Series and Windows

Helping Midmarket Firms Jump-start or Expand their e-Business

"We need an infrastructure that is truly extensible so a two-person business can act, look, and feel like the best of big business. With WebSphere Commerce – Express we have an engine that can race with the big boys and win." - Bruce Camber, Director, Small Business School

“There are just so many things I like about WebSphere Commerce - Express. Everything works just the way it should. With it we’ve been able to create an entirely new sales channel for our company. With V5.6, IBM continues to demonstrate that they are committed to smaller customers like us.”– Bob Ernst, IT Mgr., Mike Castrucci Chevrolet

"We need an infrastructure that is truly extensible so a two-person business can act, look, and feel like the best of big business. With WebSphere Commerce – Express we have an engine that can race with the big boys and win." - Bruce Camber, Director, Small Business School

“There are just so many things I like about WebSphere Commerce - Express. Everything works just the way it should. With it we’ve been able to create an entirely new sales channel for our company. With V5.6, IBM continues to demonstrate that they are committed to smaller customers like us.”– Bob Ernst, IT Mgr., Mike Castrucci Chevrolet

NEW! V5.6 GA 4/30

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WebSphere Commerce – Express V5.6: Designed for Medium Businesses

• Quick Install lets you start building your store in a little over an hour

• Starter Stores and Catalog Import Utility get your store online fast

• New “lite” development environment

• Intuitive wizard-based GUI of marketing, site admin tools makes it easy to manage site, create promotions, campaigns

• Competitive feature set delivers capabilities needed to get started plus advanced features to grow into

• All features offered consistently across all platforms

• Everything required for production, staging and site development in one package - a complete end-to-end e-commerce solution for B2C or B2B

Easy to Install

Easy to Manage

Right Function

Complete Solution

Easy to Integrate

Easy to Learn/Use

Extensible, Flexible

Affordably Priced

• 100% Java-based, J2EE-compliant; WAS-consistent for easy integration

• Includes DB2 Express and co-exists with other Express offerings such as WAS Express, Portal Express

• Store Configurator and Change Page editor w/ simple GUI make it easy to update store - no JSP or Java skills required!

• Intuitive Product Mgmt. Tool lets business users easily manage catalog, pricing etc.

• At only $20K per processor you get everything you need for production, staging, development at one affordable price point – 34% less than MSCS!

• Upgrades to Professional or Business Edition; credit given for WCE purchase

• 100% of customized code migrates as is

• Supports Windows, i Series, Linux/Intel

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IBM Software Group

WebSphere Commerce – Express V5.6: Delivering Improvement Across the Entire Project Timeline

Install and

configure

Create Store

Look/Feel

Create Catalog

Backend Integratio

n

Test and Deploy

Focusing on “time to value” from installation and deployment through site lifetime…

Customize Store

Features

Manage and

Maintain

Store Model Improvements Simpler, easier to understand/customize

Catalog Import Utility Speeds catalog creation Uses Excel spreadsheet as input

Lite Development Environment 85% faster start-up Memory footprint reduced by 2/3

WBI Modeler Process Maps Crisply lays out all WC processes, reducing customization cost Great tool for partners

Faster Install Time WCE portion 50% faster

Better Install ScreensImproved Messages

Improved UI for Business Users

50-75% fewer steps Time on task better by as much as 193% User sat. improved as much as 60%

IBM Software Group

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WebSphere Commerce - Express: Quick Install Saves Time and Effort

• From shrink-wrap to full installation faster and in fewer steps than the competition• Variety of topologies supported

•“Quick Install” for one server implementation•“Custom Install” splits stack out on up to three servers

Installation complete.Pop in a few CDs and go to lunch – you’ll be ready to publish and begin customizing your store site when you get back.

IBM Software Group

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WebSphere Commerce – Express:Express “Starter Store” Streamlines Customization

Delivers all the core capabilities required for a basic B2B or B2C store front – and easily allows more advanced features to be configured if needed

IBM Software Group

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*The production GUI may vary slightly from this layout.

STORESALES

MARKETINGPRODUCTS

LOGISTICS

WebSphere Commerce – Express: Complete Set of Powerful, Easy to Use Tools for LOB Users

IBM Software Group

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Change Store Style

WebSphere Commerce – Express: Store Editing Tools

Change Page Text

Change Store Colors

Add Banner

Giving midmarket business users more control over the look and feel of their e-commerce site

IBM Software Group

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WebSphere Commerce – Express: Marketing, Merchandising and Selling Capabilities

Guided Selling

Discounts & Coupons

Targeted Campaigns & Promotions

Hello Allison – Welcome Back!

Provides a powerful, industry-leading set of features to help you drive customer loyalty and maximize site revenue

E-Mail Campaigns

IBM Software Group

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WebSphere Commerce – Express: Marketing, Merchandising and Selling Capabilities

Cross-Sell, Up-Sell

Packages,BundlesAuctions

IBM Software Group

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WebSphere Commerce – Express: Intuitive Catalog and Content Management Tools

Product Management Tooling

Empowering business users to create, update and manage online catalog data with full control of features and attributes

IBM Software Group

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WebSphere Commerce – Express: Additional B2B Capabilities

Requisition ListMember’s Only Login

Purchase Orders

Purchase Order Number

IBM Software Group

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WebSphere Commerce – Express: Powerful Analytics Data Warehouse Technology

87 source extraction tables Over 200 data expansion tables for easy data access

Extract, Transform and LoadPredefined extractionsCustom and enhanced extractions

Tight Commerce Accelerator Integration throughout

Analytic information accessible from the Business User’s Interface

Reporting Framework for Information Delivery

250 Delivered Reports

Report Integration Kits for 3rd Party ReportsInformation BuildersCognosBrioCrystal

IBM Software Group

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Production and staging serverDatabase (DB2 Express)Developer licenseMaint&upgrade protectionTechnical support

WebSphere Commerce - Express

Basic Commerce Site: Deliver a basic B2B or B2C e-commerce site, one processor license plus pre-production staging environment

Microsoft Commerce Server Standard

$20,000 $28,196

Scenario

Production and staging serverDatabase (SQL)Developer licenseMaint&upgrade protectionNo technical support

WebSphere Commerce - Express

Growing Customer Base: Basic B2B/B2C site but scaled to higher customer needs with two processor licenses plus pre-production staging environment

Microsoft Commerce Server Standard Edition

$40,000 $56,392

Scenario

Production and staging serversDatabase (DB2 Express)Two developer license seatsMaint&upgrade protectionTechnical support

Production and staging serversDatabase (SQL)Two developer license seatsMaint&upgrade protectionNo technical support

WebSphere Commerce–Express Pricing vs. MSCS: 34% Less!The pricing scenario vs. Microsoft you and your customers have been waiting for!

IBM Software Group

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WebSphere Commerce – Express helps Mike Castrucci Chevrolet Start Selling Fast

Up and selling in just five weeks…

New site is driving thousands of hits each day

“There are just so many things I like about WebSphere Commerce - Express. Everything works just the way it should. With it we’ve been able to create an entirely new sales channel for our company. With V5.6, IBM continues to demonstrate that they are committed to smaller customers like us.”– Bob Ernst, IT Mgr., Mike Castrucci Chevrolet

“There are just so many things I like about WebSphere Commerce - Express. Everything works just the way it should. With it we’ve been able to create an entirely new sales channel for our company. With V5.6, IBM continues to demonstrate that they are committed to smaller customers like us.”– Bob Ernst, IT Mgr., Mike Castrucci Chevrolet

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IBM Software Group

WebSphere Commerce – Express: Summary

Affordable, but Complete - priced 34% less than the leading competitor with “all-in-one” licensing to meet your production, staging, development needs

Quickly and Easily Installed - getting you ready to begin creating and customizing your site in as little as one hour - resulting in lower service costs

Easy to Implement - “Express” store model and fast-path guide gets you to your production site fast

Ready Now, but Built for the Future with the capabilities you need to get started now out-of-the-box and advanced features you can grow into

Jump-start or expand your online presence with a fast, affordable solution tailored to your needs that can generate immediate business value and rapid ROI

Easy to Administer and Manage - with wizard-based tools letting you manage your site effectively without special technical skills

Reliable and Robust - built on WebSphere, a rock-solid e-business infrastructure that can level the playing field with larger companies

Built on Open Standards, WebSphere Commerce-Express frees your company from proprietary platform restrictions

IBM Software Group

© 2003 IBM Corporation

Thank You

Business Partner Name, date, contact

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IBM Software Group

BACKUP

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IBM Software Group

IBM WebSphere Commerce:The Industry Leader in e-Commerce

Software & Information Industry Association Codie Awards (SIIA)

Best eBusiness Solution

Best eCommerce Solution

Gartner eCommerce Magic Quadrant

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IBM Software Group

Faster Time to Value / Lower TCO

Integrated People, Processes, Info

SMBAppeal

B2C MultiChannelEnablement

Single Integrated Platform

Improved Business User Experience

B2B Extended Demand Chains

WebSphere Commerce V5.6 Announcement Summary

Tools Business Context Engine

Configurable Business Processes

IBM Business Integration

WebSphere Commerce

Solution Enhancements

Designed to integrate people, processes, and information

Tied to core offerings

Release Themes

Enhancements reflected in all Solutions / offerings

Map to capabilities

Solution Architecture

Single, Integrated platform powered by the Business Context Engine

Announcement 4/20, GA 4/30

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IBM Software Group

WebSphere Commerce Portfolio Pricing

WebSphere Commerce Business Edition @ $125K / processor

– WebSphere Commerce Developer Business Edition @ $25K / seat

WebSphere Commerce Professional Edition @ $80K / processor – WebSphere Commerce Developer Professional Edition @ $15K / seat

WebSphere Commerce – Express @ $20K / processor (includes maintenance)– includes production, staging, one developer edition seat; limited two processor environment

– additional WebSphere Commerce Developer Express Edition seats available at $3.5K / seat

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IBM Software Group

WS Commerce – Express V5.6: Customer View

• Can’t afford costly deployment

• Need for basic B2B support as well as B2C

• Need for easier to use LOB tools

• Need quick, easy development environment after partner-handoff

• Starter stores improved, catalog import utility speeds time to value

• New B2B starter store with basic PO support

• Improved usability & visual design of LOB tooling

• New, lighter/faster dev environment

Customer Pains Key Features

Implement an end-to-end solution with an affordable up-front investment

Reduce implementation time & effortEasier to use tools for LOB usersCustomize, extend & grow at your own pace

Benefits

WebSphere Commerce – Express greatly improves customer time-to-value in v5.6 with faster install, simpler, more streamlined store design, easier to use business tools, catalog import utility, a new “lite” development environment and new B2B features – keeping

store deployment costs under control

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IBM Software Group

WebSphere Commerce-Express vs. Professional Edition

Item WS Commerce - Express WC Professional EditionPricing $20K per license (includes 1st

year maintenance)$80K per license (1st year maint. not included)

Pricing Model/ Terms

Per processor licenseEach license allows installation on one processor for production use and a second for pre-production staging

Per processor license No processor limit but must pay for additional license for staging server

Developer License

Developer tools (inc. WSAD) included for use by one developer; WCE Developer Edition available for $3.5K for added seats

$15K for WC Developer Edition

Platform/OS Support

MS Windows 2000 or 2003, iSeries (V5R2), Linux-Intel

MS Windows 2000 or 2003, iSeries (V5R1), Linux (Intel, PPC), zSeries, pSeries

DB Support DB2 Express (bundled in) DB2 but also OracleFeatures Includes all features found in

Professional Edition except those noted at right

Also includes: Lotus Sametime/Quickplace, Likeminds, DB2 Text Extenders, WAS Edge, WAS ND; DB2 Intelligent Miner

Documentation SMB-specific "Easy Start Guide" helps quickly get production store running

Standard product documentation

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Things Remembered Integrated Solution

Assure trading partners of merchandise availability

Reduce inventory risk by closing the gap between the order acceptance and inventory management processes

A new open standards-based order request solution, delivered as Web services, with the ability to integrate with any standard e-commerce site

Utilized the build-to-integrate capabilities of WebSphere Studio, Commerce, Application Server and MQ product families

Business benefits

Projected 50% annual increase in conversion rate

Anticipated 8-10% rise in average sales transaction value

Significant reduction in inventory risk and overhead expenses for Things Remembered and trading partners

Ability to attract and maintain broad trading base by ensuring inventory availability

“Our Web Services solution will improve our ability to deliver responsive, personalized, high-quality service to our customers and trading partners. IBM has strengthened our ability to succeed.”

Mark Fodor, Cole National

Challenge

Solution

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IBM Software Group

Anaconda Sports Scores With WebSphere Commerce

Technology Benefits: 6-week development and

implementation cycle Scalability to handle 67% increase in

unique visitors

Business Benefits: Projected 100% payback within a

year 20% increase in online sales over a

3-month period Elimination of high fixed costs

Outmoded Web site, not integrated with fulfillment or credit verification, prevented Anaconda from meeting customer demands and caused high maintenance costs.

New hosted e-commerce solution integrated with back-end systems. Based on WebSphere Commerce, WebSphere Application Server and DB2.

"We were busy answering complaints, handling emergencies and performing wasteful manual tasks to get our orders out. We couldn't satisfy our customers, so they were going elsewhere."- Rob Meyer, Director of Internet Services, Anaconda Sports, Inc.

Solution

Challenge

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IBM Software Group

B2B Direct Sales Portals: Solution Snapshot

B2B Direct Sales Portals provide 24/7 visibility and enhanced productivity that builds on traditional direct sales channels for

midmarket WholesalersB2B Sales Portal

Traditional Channels

Face-to-face

Call center Fax

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IBM Software Group

WebSphere Commerce – Express: Delivering Key B2B Direct Sales Portal Capabilities

Business A

Business C

Business B

B2B Direct Sales Portal

Structured Processes Requisition lists

Dynamic Negotiations

Auctions

Purchasing and Productivity tools

Order Management, Customer Support

Targeted marketing to maximize online B2B

purchases

Product Location Aids

Guided Search

Parametric Search

Automated cross-sell, up-sell

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IBM Software Group

So…just what is keeping you up at night?

Unable to quickly react to market changes

Can’t integrate with and leverage key backend systems

Current site hard to maintain & can’t meet emerging needs

Margins – thin and eroding

Unsettled economy (picking up again?)

Customer expectations increasing

Increasing competitive pressures

Limited IT, business staff

Distributors and resellers find us hard to do business with

Complex, heterogeneous IT environment