Smarter Solutions for a Smarter PlanetMichelle Unger

Smarter Telecom

Smarter Railroads

Smarter Government

Smarter Public Safety

Smarter Supply Chains

Smarter Cities

Smarter Products

Smarter Money

Smarter Grid

Smarter Healthcare

Smarter Food

Smarter Oil & Gas

Smarter Retail

As the World Gets Smarter, it Creates New Opportunity for IBM

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Representative Industries

Electro n icsCh em icals & Petro leu m

Hig h -T ech M an u factu rin gAu to m o tive

Ban kin gHealth care

Go vern m en tF in an cia l M arkets

In su ran ceM ed ia & En terta in m en t

Representative Industries

Today Future

C ustom (Legacy) Environm ent

In tegrated So lu tions ISV-dom inated Environm ent

Client buying behaviors are shifting

Industry Solutions

IBM Software Technology IBM Solution Products

IBM Industry Solutions Software will deliver “Bigger Puzzle Pieces” to simplify integration of common middleware patterns into solutions that deliver end-customer value

Repeatable and Scalable Offerings, Increased Asset Content

Industry Solutions Software Solutions are unique, integrated Products, addressing industry use

cases and solving specific customer problems

…delivered through Industry Framework go-to-market, industry content and sales tools…

…built on a common Platform of core SWG products for efficient delivery and reuse across industries

...leveraging organic and inorganic investments

Consumable, Repeatable, ScalableOfferings with increased Asset Content

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Smarter Cities

Linking physical world assets, resources and infrastructure with the digital world of event processing, business analytics and optimization. Domains include asset optimization, supply chain, process optimization, physical infrastructure.

Customer Care & Insight

Understanding customer patterns through analytics, identifying target customers and linking the findings with the business processes as actions to provide better customer value or prevent fraud/risks. Domains include Multichannel, Campaign & Promotion, Threat & Fraud Protection

Financial Operations

Enables reporting, analysis, planning and consolidation around key financial processes. Solutions will focus on enabling organizations to optimize core financial functions such as payments, financial reporting, treasury, etc. in as near real-time as possible.

Encompasses activities needed to maintain a productive workforce and supports the business with key insights into how its workforce is performing. Will be based on integrating advanced analytic and collaboration capabilities to achieve a competitive advantage for our customers

workforce.

Workforce Optimization

Solutions that address case style business problems unifying information, processes and people using content & process management, as well as advanced analytics, business rules, collaboration and social software to help drive more successful, optimized case outcomes.

Advanced Case Management

Smarter Commerce

Enable clients to connect, communicate and collaborate with customers, partners and suppliers by focusing on key commerce lifecycle processes in the order to cash flow, from selling of goods and services to order management, inbound supply, inventory management to

multichannel order fulfillment to the destination.

Industry Solutions Software is targeting these initial repeatable patterns…

We have entered the age of the empowered customer7

This is changing the entire way products are sourced, manufactured and distributed—and making business more complex than ever.

Customer expectations of service, price and delivery is soaring.

Customers now have unlimited access to information and can instantly share it with the world.

Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller.

Source: Twitter Global PR, Yankelovich, via Search Engine People, July 2010 , RIS Fifth Annual Store Systems Study 2008

155 millionNumber of tweets sent via Twitter each day

75%Percentage of people who believe companies don’t tell the truth in advertisements

$93 billionAmount in sales missed due to out of stock inventory

These disruptive forces ripple from the customer through the enterprise and across entire industries

Industries Value migration Value chain redefinition Fragmentation

Enterprises Evolved business models Optimized digital operations Connected enterprise

Individuals The connected consumer The networked workforce The empowered citizen

Power has shifted to the customer - compressing margins and changing paradigms

Understand and anticipate

Adapt and optimize

Market, sell and fulfill

Service flawlessly, predict and drive customer loyalty

In this new era, businesses need to:

Drives growth

At IBM we call the path forward: Smarter Commerce Places the customer at the center

Increases margins

Synchronizes your entire value chain

Maximizes insight Capitalizes on social and mobile

Improves collaboration and visibility

Smarter Commerce focuses on three dimensions centered around the customer

Customer & Partner Engagement

Customer Insight Customer Value Strategy

…increasing the value companies generate for their customers and partners in a rapidly changing digital world

Customer

Smarter Commerce can help transform - every phase of the commerce cycle

BuySourcing, controlling and procurement of goods and services

ServiceServicing customer

needs across all interaction channels

Sell Enables selling and

fulfillment of products and services across

all channels

MarketTargeted and personalized

marketing across all customer interactions

MarketBuy

Service Sell

Customer

Insight Strategy

Engagement

From demand to supply, IBM Smarter Commerce turns insights into action

Sentiment analysis

The “science” ofmarketing

Optimized Supply chain

Realizing Smarter Commerce with IBM’s integrated portfolio

Creates personalized and relevant offers with unified

cross-channel marketing

Buy Sell Service

CORE BUSINESS SOLUTIONS

VALUE CHAIN STRATEGYMarket and customer mgmtInnovation and business value

Drives intelligent, adaptive and optimized extended supply chains based on customer

demand

Enables customers and partners to buy what they want, when and

where

Anticipates behavior and delivers flawless customer service across all channels

Operating and organization models

Workload Optimized SystemsSystems, Storage and Software focused on agility, integration and automation to drive relevant business success

Advanced AnalyticsStore analytics | Purchase analytics | Consumer loyalty | Predictive and prescriptive | Social analytics | Web analytics | Master data mgt

Market

CORE BUSINESS SOLUTIONS

Advanced Analytics

Buy Sell ServiceMarket

Workload Optimized Systems

Retail Store Solutions

IBM Case Manager

Investing in Smarter Commerce: Delivering an integrated portfolio

Successful companies are staying competitive by transforming their approach to commerce

193%Amount Boots realized in ROI on targeted marketing programs.

Trading partners connected efficiently and cost effectively.

195%Amount Speedo increased return on pay per click advertising.

376%Amount XO Communications boosted ROI by reducing customer churn.

100%

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INNOVATION

INVESTMENT

EXPERIENCE

$2.5+ billion software investment

Global Business Services Practice

Hundreds of customer engagements

Expertise in over 20 industries

$14B in BAO acquisitions and 8,000+ dedicated consultants

25,000 hardware and 35,000 software developers

3000 IBM researchers

IBM Smarter Commerce:: Making it real

Thank You!