IBM Software Group Cashing in on IBM middleware
® IBM Software Group Cashing in on IBM middleware technology in the consumer products industry Attract and retain more profitable customers Add Business Partner logo here © 2003 IBM Corporation
IBM Software Group Agenda 1 Consumer products industry in the on demand era 2 Consumer products industry challenges and dynamics 3 Middleware matters 4 Solution recommendations and customer experiences 5 Next steps NOTE: Add Business Partner logo here 6
IBM Software Group The new on demand era The new “sweet spot” “The consumer products business is driven significantly by three basic demographic factors – population growth, household formation and household income growth. These factors have driven developed market growth for decades, and are now driving strong growth in developing markets. ” — Procter & Gamble 2003 Annual Report New on demand business “An on demand business is an enterprise whose business processes — integrated end-to-end across the company and with key partners, suppliers and customers — can respond with speed to any customer demand, market opportunity or external threat. ” — Sam Palmisano, October 2003 NOTE: Add Business Partner value proposition 7
IBM Software Group Do these challenges sound familiar? Can you provide timely and accurate forecasting of product demand to reduce inventory costs and number of stock-outs, and increase inventory turns? Are mega-retailers using their girth to exert greater leverage and demand lower prices from you? How do you internally collaborate on trade strategy and translate that strategy to externally collaborate with retailers? Have retailers requested that you comply with their standards or industry standards? 8
IBM Software Group The on demand era meets opportunity Midsize consumer products business solutions are here Reliability Changing needs Security is critically important. IBM Express Middleware is the safer choice. IBM middleware solutions are available from thousands of local IBM Business Partners. Operational costs Open standards IBM has solutions specifically for midsize consumer products businesses at a price lower than the competition. IBM middleware leverages existing IT investments, no rip and replace. 9
IBM Software Group What we’re hearing Top business priorities of consumer products IT executives § Improve operations by streamlining product item synchronization processes § Forecast product demand for more efficient production and inventory management § Improve customer service quality and efficiency § Better manage tracking of trade funds provided to retailers “ 93% of retailers surveyed will use Internet technology to link with vendors and 74% will increase vendor participation in category management. ” — Bearing Point/Chain Store Age Survey of Trends in Inventory Management, December 2003 10
IBM Software Group Your Title Here Note: Add Business Partner logo he § Add Business Partner local trends § Add facts about the Business Partner § # of local engagements § Quote from BP president? § Facts that qualify the BP as a vendor of choice § Example is next slide “Add Business Partner Customer quote here. ” Add Logo — Source 11
IBM Software Group IT investments are changing the way global consumer products firms compete Currents of change § Timely and accurate forecasting § Increasing sales effectiveness and improving customer service “People seem to think that this is the way we have always done things around here, and why should we change, given we are doing OK on our performance measures. The team needs to stand up, be accountable and take the initiative. ” — Food company CEO 12
IBM Software Group You have challenges. IBM and IBM Business Partners have solutions. Challenge Solution Improve the transaction efficiency with retailers to collaborate with them and third-party data resources (e. g. , Uniform Council Code or UCCnet) Item management and synchronization Increase sales effectiveness and improve customer service by providing critical information Customer management workplace “IBM is speeding forward and turning up the channel heat on competitors in a wide range of markets. What it all means is that IBM competitors who stay put should be prepared to eat more dust. ” — Computer Reseller News NOTE: You may merge content above with Business Partner local consumer products solutions. See next slide. 13
IBM Software Group IBM Business Partners applications and services Challenge Solution Brief summary of customer pains here Brief solution summary here 14
IBM Software Group A complete solution Express Portfolio Local Business Partners What midsize consumer products firms want — at an affordable price § Reliable, industry-specific software solutions that create effective real-time linkages with customers and suppliers § Improved profitability through reduced costs, improved efficiency and customer relationships, and integrated processes 15
IBM Software Group Why middleware matters Midsize consumer products businesses need IBM Express Middleware § Builds, manages and secures your IT environment § Standardizes key housekeeping functions so that your applications can focus on solving your business problems § Provides open standards so clients are not tied to a proprietary vendor and single operating system § Provides scalability as your organization grows § Serves as the glue that tightly links the elements of your business internally and externally “We like the Web. Sphere Business Integration tool very much for the synchronization process. For synchronization scenarios or other business process management systems, it's the best tool I know. ” NOTE: Business Partner customer quote — Siemens ICN 16
IBM Software Group Why IBM Express Middleware? § Less risky than other vendors – Open IT environment; no IT lock-in; more than 25 platforms supported; allows customers to take full advantage of future innovations. § Less costly – No rip and replace; lower prices § Helps companies become more responsive, resilient and focused – Simplifies collaboration among employees, partners and customers – Open standards facilitate communication across multiple IT environments worldwide § More secure § Deep industry expertise Keep your options open. Protect your IT investments. “An enterprise that actively manages future risks should favor J 2 EE. ” 17
IBM Software Group You have challenges. We have solutions. Challenge Solution Key Benefits § Enables supply chain collaboration Improve transaction efficiency with major retail customers and collaborate with them and thirdparty data resources Improve sales effectiveness and enhance customer service by providing information on account profitability, product acceptance, trade promotion and joint forecasts Item Synchronization § Improves global data synchronization, product information mgmt. , data integration § Increases item accuracy, decreases order errors and optimizes inventory tracking Customer Management Workplace § Speeds time to value by reducing manual and administrative tasks, automating them and providing role-based information for sales negotiations § Increases sales effectiveness by providing employees access to critical information such as account profitability, customer status, product acceptance, trade promotion and joint forecasts NOTE: If you wish, modify content with Business Partner local consumer products application solutions 18
IBM Software Group How can you improve transactions with retailers? Item Synchronization § Enables supply chain collaboration through item management § Improves Web-enabled collaborative supply chain processes with retailers (e. g. , item synchronization and integrated RFID or Radio Frequency Identification) § Provides support for: – Global data synchronization via third-party data resources (e. g. , UCCnet and Transora) Item Synchronization IBM Components § Web. Sphere Business Integration Connect Express § Web. Sphere Business Integration Express for Item Synchronization § Web. Sphere MQ Express § Web. Sphere Portal Express/Express Plus § DB 2 Universal Database (UDB) Express § DB 2 Content Manager Express § Tivoli Access Manager for e-business – Product information management § Tivoli Website Analyzer – e. PC data integration § Tivoli Monitoring for Transaction Performance § Helps increase item accuracy, decrease order errors and optimize inventory tracking Capitalize on the opportunity presented by a connected world 19
IBM Software Group Scripto-Tokai: Conforming to Wal-Mart’s UCCnet initiative Challenge Value The company faced a possible loss of nearly 40% in business when two retailers mandated that all of their trading partners comply with AS 2 for Electronic Data Interchange (EDI) and with the UCC’s initiative to standardize product data and streamline item synchronization. § Saving between US$60 and US$80 per item per year, or a total savings of tens of thousands of dollars each year Solution Working with IBM Business Partner Netcom Systems, integrated its J. D. Edwards ERP system with UCCnet using IBM Web. Sphere Business Integration Express for Item Synchronization V 4. 3, that combines all the software and tools suppliers needed to integrate supply chains through UCCnet's GLOBAL registry § Reaching new global markets more quickly and cost-effectively § Positioning the company for future initiatives that encourage broader enterprise collaboration and strategic trading relationships Note to IBM Business Partners: IBM SMB references follow each solution area. You can use these or substitute your own. he best reference is the business down the street. If you choose to use your own, you can use th format. See “Backup” section for a blank template. 20
IBM Software Group What can you do to increase sales effectiveness? Customer Management Workplace § Speeds time to value by reducing manual and administrative tasks through integration and automation of core business processes § Reduces risk by helping sales force collaborate in planning and execution § Integrates core employee work processes § Increases sales effectiveness and improves customer service by providing employees access to critical information: – Account profitability Customer Management Workplace IBM Components § DB 2 Content Manager Express § Tivoli Access Manager for e-business § Tivoli Storage Manager § Lotus Workplace Web Content Management § Lotus Instant Messaging and Web Conferencing (Sametime) § Lotus Team Workplace (Quickplace) § Lotus Domino Collaboration Express § Lotus Domino Utility Server Express – Customer status – Product acceptance – Trade promotion and joint forecasts – Role-based information for negotiations Capitalize on the opportunity presented by a connected world 21
IBM Software Group Embotelladora Andina: Extending proprietary environment to Web Challenge Value The company needed to extend its proprietary application to a Web-based environment for faster ordering, invoice review and payment schedules. § Improved time to market in the deployment of the solution Solution Web. Sphere Application Server - Advanced Edition Version 3. 5, Web. Sphere Host Integration Version 3. 5, Web. Sphere Personalization Version 3. 5, Visual. Age For Java Version 3. 5 and Web. Sphere Studio Version 3. 5 “The most important benefit was the development time and cost savings. The company believed that it would take almost two years to develop a new application from scratch, but with IBM Web. Sphere software it only took three months. ” 22
IBM Software Group IBM Express Middleware can modernize your infrastructure IBM Express Middleware can help you: § Improve transaction efficiency with major retail customers to collaborate with them and third-party data resources (e. g. , UCCnet) § Increase sales effectiveness and improve customer service by providing information on account profitability, product acceptance, trade promotion and joint forecasts The benefits of IBM Express Middleware: § Increased item accuracy § Decreased order and billing errors § Improved forecasting and inventory tracking § Increased sales effectiveness and improved customer service by providing staff with account profitability information, customer status, product acceptance, trade promotion and joint forecasts NOTE: If you wish, merge content above with Business Partner local consumer products solutions 23
IBM Software Group Take action today §Assess your on demand needs §Map out your journey §Calculate your ROI and business value §Get started, start anywhere — small or a total solution §Go to URL or email xxx for next steps The never before possible becomes possible 24
IBM Software Group © Copyright IBM Corporation 2004. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, the e-business logo and other IBM products and services are trademarks or registered trademarks of the International Business Machines Corporation, in the United States, other countries or both. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries or both. Microsoft, Windows NT and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries or both. All other trademarks, company, products or service names may be trademarks, registered trademarks or service marks of others Disclaimer: NOTICE – BUSINESS VALUE INFORMATION IS PROVIDED TO YOU 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. IBM DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IBM DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE BUSINESS BENEFITS SHOWN. . 25 IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF IBM'S NEGLIGENCE. WHETHER
IBM Software Group Backup 26
IBM Software Group Why IBM? Experience counts for midsize consumer products firms Nobody invests more § $1 billion annual investment in engineering § $5 billion annual investment in technology acquisition “Express is proof that IBM is serious about the SMB market. ” – Modeling – Process Integration – Software Development – Wayne Scarano, SGA Business Systems IBM Express is affordably priced. § More than 7, 000 developers Experience really counts § § § § 10, 000 customer sites rely on Web. Sphere MQ. 2, 000 customers rely on Web. Sphere Business Integration. 2, 000+ customers reply on Web. Sphere Portal since its introduction in 2000. Web. Sphere Commerce powers 6 of top 10 pharmaceuticals. IBM offers 48 industry-tailored business integration solutions that span 11 industries. IBM Web. Sphere customers included 91 of the top 100 global companies in 2003. 450 K+ companies rely on IBM DB 2 Information Management solutions. 27
IBM Software Group IBM Business Partner staff § Who and what skill sets matter from the customer’s point-of-view. “Business Partner tagline or local customer quote. ” – Source IBM Express is affordably priced. Experience really counts § Business Partner experience, local background, etc… NOTE: Business Partner information 28
IBM Software Group Business Partner application or service goes here Business Partner application Expand on the Business Partner local consumer products solutions or applications Business Partner application § XXXXX IBM and Business Partner components § Placeholder § XXXXXXX NOTE: Add Business Partner application information 29
IBM Software Group IBM "continued its long time lead of this market, “ IDC, June 2003 Why IBM? Market leadership §Application Deployment Platform Software Market Leading industry analysts acknowledge IBM market share dominance Source: Wintergreen Research Application Integration License Revenue 300 IBM 2002 Share* 2001 -02 Growth% IBM 23. 3% 17. 5% BEA Systems 17. 3% 9. 6% Oracle Corp. 9. 5% 8. 0% Tibco Inc. 4. 9% -19. 4% web. Methods 4. 3% 6. 3% * Based on license revenue and license-related service fees. The gap widens 200 “IBM Has Top Share in All Application Integration Middleware Markets” Gartner Dataquest, May 2003 Worldwide IBM Market Share Position Based on New License Revenue 100 Web. Methods §Tibco §See. Beyond §Mercator §Vitria 0 1999 2000 2001 2002 2003* Application Servers Integration Broker Suites Portals Message-Oriented Middleware Application Platform Suites Composite Market Transaction Processing Monitors Total Market 2000 2001 2002 2 1 N/A 1 2 1 3 1 2 1 1 1 1 1 §* Estimate based on 1 H 03 actual growth rates. Sources: • IDC, “Application Deployment Platform Software Market, 2000 -2002, with Leading Suppliers” June 2003, Dennis Byron, Vice President, Business Process and Deployment Software Research • Gartner First Take "IBM Has Top Share in All Application Integration, Middleware Markets", J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003. 30
IBM Software Group Why IBM? Industry standards leadership 1998 / 1999 2000 2001 2002 2003 Java, XML and eb. XML Web Services and UDDI Web Services and Tools Web Services and Security § Co-author of SOAP 1. 1 and submission to W 3 C § Cofounder of UDDI. org and author of original UDDI specification § Co-author of WSDL § IBM contributes SOAP 4 J to Apache § Led submission of WSDL to the W 3 C § Co-chaired W 3 Web Services Workshop § Founder of Eclipse. org § Co-author of W 3 C XML Schema standard § Chair of Web Services Interactive Applications TC § Founder and chair, Web Services Interoperability Organization § Co-author of Web services bus process specification (BPEL, WS-TX, WS-TC) § Co-author for Web Services Security roadmap and specification § Co-founder and lead architect for Rosetta. Net § Author of XML 4 J § Chair OMG XML Metadata Interch. Format § Co-author W 3 C Document Object Model § Founder XML. org § Elected to Board of Directors in OASIS § Submission of BPEL to OASIS § Co-chair WSBPELTC in OASIS § Submission of Common Base Events to WSDM TC in OASIS § Submission of WS-Manageability to WSDM TC in OASIS § Co-authored and published EPAL specification to WC 3 § Co-chair WSDM TC in OASIS § More than 1, 000 developers devoted to XML and more than 1, 500 focused on Linux; over 200 software products running on Linux § Led workgroup responsible for finalization of SOAP 1. 2 31
IBM Software Group Why IBM? Award-winning software brands Technology leadership “Best in Enterprise Integration” — Intelligent Enterprise Readers Choice award 2002 IBM is the leader in application integration. — Gartner, October 2002 IBM has widened lead as the leading and most question-free vendor in commerce servers. IBM is the leader in portal software in 2002. — Gartner, 2003 — Giga, August 2003 IBM is the leader in business automation. — Aberdeen, September 2002 32
IBM Software Group Award-winning Business Partner applications The more local the award the better Any local civic clubs or organization? NOTE: Add Business Partner product awards 33
IBM Software Group Why IBM? Committed to the midsize marketplace Happy Together: IBM, Linux and Small Businesses May 30, 2003 IBM Gets Serious About Express January 21, 2004 IBM escalates SMB war with Microsoft February 25, 2004 SMB Partners Eyeing Web. Sphere Express June 6, 2003 Software giants think small: IBM, Microsoft move into niche markets December 11, 2004 IBM Expects SMB to rev up IT spending in 2004 NOTE: January 2, 2004 Add any local press headlines, articles about the Business Partner 34
IBM Software Group Blank customer reference template Add customer logo Add key benefit customer Challenge Value Solutions “…. quote goes here. . . l. ” – attribution goes here (Name, title, company) 35
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